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MEMBER ALERT

Shipowners Claims Bureau, Inc., Manager


st
One Battery Park Plaza 31 Fl., New York, NY 10004 USA
Tel: +1 212 847 4500
Fax: +1 212 847 4599

www.american-club.com

APRIL 3, 2017

LOSS PREVENTION: 2016 CONDITION SURVEY REPORT

Your Managers are pleased to release the attached summary of findings from condition
surveys conducted during the 2016 calendar year with a particular focus upon
machinery-related concerns.

Members are recommended to refer to the Club’s section on machinery damage at:

http://www.american-club.com/page/machinery-damages

As a result of particular findings, further loss prevention guidance will be forthcoming


soon and posted at this site above.

American Club Member Alert – April 3, 2017

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MACHINERY-RELATED DEFICIENCIES—2016 CONDITION SURVEYS RESULTS

The Managers of the American Club conducted 106 condition surveys during the 2016 calendar year. Forty-
six per cent (46%) of those surveys were conducted on dry cargo vessels, tankers accounting for thirty-five
per cent (35%).

The statistical breakdown of deficiencies as identified during those surveys is set out in Figure 1 below. As
will be seen, deficiencies concerning cargo systems and machinery are among the two largest categories.

American Club Loss Prevention: Machinery Failures


Figure 1: Deficiencies by type and frequency for all condition surveys

Taking all of the machinery-related deficiencies into account, those concerning machinery integrity were
found to be the most frequent, as set forth in Figure 2. Specifically, areas of concern included:
• engine integrity-related deficiencies including the condition of main & auxiliary engines, engine
monitoring systems and the insufficiency of spare parts; and

• the cleanliness of engine compartments (i.e. basic housekeeping) including bilges being clean, tidy
and free of combustible materials.

Furthermore, fire system-related deficiencies were also significant. These deficiencies related to the
condition of fixed fire & extinguishing systems, main & emergency fire pumps and fixed gas detention &
monitoring systems.

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Figure 2: Machinery-related deficiencies

Summary
Your Managers will be releasing further loss prevention guidance in the near future, including information
on engine room and fire safety related subjects, based on this recent research and the findings contained in
this report.

American Club Loss Prevention: Machinery Failures

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Machinery deficiencies—2016 condition surveys

The Managers of the American Club conducted 106 condition surveys during the 2016 CY. Ninety-one (91)
of the surveys resulted in deficiencies while fifteen (15) surveys resulted in no deficiencies noted. Forty-six
per cent (46%) of the surveys were conducted on dry cargo vessels and tankers accounted for thirty-five per
cent (35%) of total surveys.

Tankers were found to have the most deficiencies per survey with just under 10 deficiencies per survey
while dry cargo vessels (excl. container ships) were found to have just over 7 deficiencies per survey as seen
in the Table. A total of 873 deficiencies were noted whereby the most frequent individual category of
deficiency found was related to the condition of machinery spaces. The most frequent deficiencies overall
were related to the conditions and functions of cargo systems (as set forth in the Appendix to this
document), particularly related to bulk carriers.

Machinery related deficiencies were found to be the second most frequent deficiency (120) accounting for
14.3% of all deficiencies observed during these surveys as see in Figure 1 below.

Cargo systems
Machinery
Hull (ex. Cargo)
Management
Safe access
Fire safety
Pollution prevention
Navigation
LSAs
Accommodations/ILO
Safety equipment
No LP materials
Emergency response

American Club Loss Prevention: Machinery Failures


0 20 40 60 80 100 120 140 160

Figure 1: Deficiencies by type and frequency for all condition surveys

Furthermore, there are machinery systems associated with cargo systems, fire safety and pollution
prevention representing another 49 deficiencies observed. When combined with the other machinery
deficiencies, this accounts for 19.2% of the sum total of all deficiencies found.

Taking all of the machinery related deficiencies into account, machinery integrity deficiencies were found to
be most frequent as set forth in Figure 2. The two most frequent machinery related deficiencies were:
• cleanliness of engine compartments including bilges being clean, tidy and free of combustible
materials; and
• engine integrity related deficiencies that include the conditions of main & auxiliary engines, engine
monitoring systems and insufficient spare parts.

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American Club Loss Prevention: Machinery Failures

Figure 2: Deficiencies by type and frequency for all condition surveys

Furthermore, fire system related deficiencies were also significant in number. These deficiencies include
poor conditions in fixed fire & extinguishing systems, main & emergency fire pumps and fixed gas detention
& monitoring systems. The detailed summary of all machinery related deficiencies.

Summary
As a result of these findings, your Managers will be releasing further loss prevention guidance in the near
future to Members associated on engine room and fire safety related topics as per the findings of this
report.

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Disclaimer

The information presented here is for general guidance information purposes only. While the American Club makes every
effort to ensure that the information contained in the document is accurate, neither the American Club nor its Managers
warrant that the information is correct or timely and no reliance is to be placed on the information.

Neither the American Club nor its Managers shall be liable for any damages arising out of an injury, loss, expense, claim,
or damage, including but not limited to any indirect, special, incidental or consequential damages of any kind, whether
based in contract, tort, strict liability, at law or otherwise, arising out of or relating in any way to the use of, or inability to
use, this guidance.

Moreover, the information in this guidance should not be construed as evidence of any contract of insurance and should
not be regarded as evidence of any undertaking, financial or otherwise, on the part of the American Club or its Managers
to any other party. Furthermore, nothing in this guidance should be construed as an indication that the American Club or
its Managers hereby consent either to act as a guarantor or to be sued directly in any jurisdiction whatsoever. The
guidance should not be construed as a legal advice and Members are strongly encouraged to consult with their lawyers
or contact the Managers for such recommendations.

American Club Loss Prevention: Machinery Failures