When the Ship Stops from a Safety Failure, the Costs Don't

In logistics, every minute counts, and you use digital platforms such as SeaRates technologies to evaluate freight prices. However, your most significant risk to timely delivery might not be at sea, it could be at the dock.

Safety failure during ship maintenance results in an instant halt to work or an investigation. When that happens, every delivery associated with that ship is postponed. The time and money you conserved via optimization can disappear instantly.


Cost of a Delay  

When a ship is immobilized, expenses increase rapidly. Fuel, crew, and port charges continue to accumulate regardless of the vessel's movement. Depending on dimensions and fuel costs, daily operating expenses for large vessels can frequently total tens of thousands of dollars, or even exceed that amount.


Why It Happens

The majority of shipyard accidents are not coincidental. They arise from avoidable failures in fundamental safety procedures. U.S. regulations specified by OSHA 29 CFR 1915 emphasize two prevalent issues:


Confined Spaces (1915.12)

Crews must test the air in closed spaces, like fuel tanks, with a meter prior to allowing anyone to enter since the air can be dangerous. Should this rule be violated and a worker injured, authorities will immediately halt all operations on the ship for a full investigation, delaying your shipment for days.


Control of Hazardous Energy, Lockout-Tagout (1915.89)

One fundamental safety procedure is lockout-tagout, where a machine is physically locked and power is removed from all sources before repairs are started in an effort not to start the machine accidentally. Severe damage may result from violating this process, and any serious infraction will lead to immediate halt of all ship operations until there has been a proper investigation.


Who Should Care

The financial consequences of a port delay extend beyond the shipowner. 

  • Although shipowners and carriers initially incur losses directly from downtime and repair expenses, that issue rapidly escalates. 
  • Logistics companies and freight forwarders will be affected next, tasked with handling the turmoil of delayed schedules and addressing dissatisfied customers. 
  • Later on, shippers and manufacturers encounter the real impacts of halted production and vacant store shelves. 

This fallout primarily affects procurement and risk teams, who require clear visibility to choose dependable partners from the outset. 


Therefore, even in the absence of direct control over shipyard activities, it is essential to request evidence of compliance, examine safety audits, and mandate certifications from any carrier you select.


What is the Solution?

Working with partners whose dedication to safety can be verified is the answer. These expensive operational mistakes can be avoided before they occur with the help of appropriate safety training. A carrier's safety record is a key determinant of their operational discipline and general dependability. it is not merely a compliance formality. A partner aggressively manages the risks that cause disastrous delays by maintaining recorded training programs and a low incidence rate. Think of this as the most realistic insurance for the integrity of your supply chain. 

Don't limit yourself to asking basic inquiries while screening maritime partners. Make it a requirement to evaluate their safety performance as part of your procedure. Request their official safety records, including their OSHA history. To see what a certified OSHA Maritime training courses that prevents these issues look like, you can find more information here. In logistics, operational reliability is the ultimate metric of value, and a safe partner is a dependable partner.


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Sam Davis is an international trade specialist. He has worked for customs brokers, shipping companies, and international traders for the past 20 years. He conducts training and webinars for various clients. He also writes blogs. When not talking or writing about shipping, Sam treks to the mountains during his free time.