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Safety management system
1. Safety Management System (SMS) Policy
Haifeng International is committed to creating and maintaining a safe and efficient working environment. We commit to complying with applicable national or international SMS standards and regulations, and pay particular attention to meeting the International Safety Management (ISM) rules of the International Maritime Organization (IMO) during maritime transportation. To this end, we have established a comprehensive safety management system (SMS), aiming to identify, assess, monitor and control risks during the transportation process.
The safety management system of this company has been regularly verified in accordance with Article IIX /6.1 of the Convention and Article 13.4 of the International Safety Management Regulations, and complies with the requirements of the International Ship and Port Facility Security Regulations (ISM Regulations) and the International Safety Management Regulations. The qualification documents are issued by China Classification Society under the authorization of the Republic of Panama and the Hong Kong Special Administrative Region of the People's Republic of China.
The board of directors of this company recognizes the implementation strategy of the occupational safety management system policy, and commits to guiding and monitoring the effective implementation of the safety management system, and emphasizes the importance of safety in the company culture. In line with our occupational health and safety policy, we adhere to the principles of "zero accidents" and "zero injuries" to ensure that every worker can return home safely. We also commit to being responsible for the communities and environment involved in maritime transportation and protect the well-being of workers and communities through safety management.
Responsible Committee: The Safety Committee under the Risk Management Committee is responsible for supervising and guiding the implementation of the safety management system.
Department Safety Manager: Clearly define the responsibilities of each department in safety management to ensure that each business department has specific personnel in charge of daily safety management work, including risk assessment, training, accident reporting, etc., and be responsible for the safety management of ships, storage yards, and onshore logistics processes.
For different business lines such as shipping and storage yards, we have formulated specific management norms. Based on the company's principle documents, "General Provisions of the Safety Management Manual" and "Safety and Environmental Protection Policy", we have developed management systems such as "Occupational Health and Safety Operation Control Procedure", "Oil Pollution Emergency Plan", and "Ship Hazardous Substances Control Procedure", clearly defining safety operation procedures such as emergency response and accident handling. Ensure safety effectively.
The company has formulated the "Ship Safety and Maintenance Checklist" in terms of ship management, and based on this checklist, conducts a series of safety inspections on its own ships, including navigation safety, cargo safety, engine room and equipment safety, personnel safety, fire safety, and pollution prevention. At the same time, maintenance, upkeep and inspection are also carried out on the deck, cargo hold, engine room and equipment, life-saving equipment, fire protection system, environmental protection equipment, etc.
The company has formulated the "Yard Safety Inspection Project List" for yard management and, based on this list, conducts inspections on a series of safety aspects of all operating yards under the group, including access control, personnel safety and training, equipment safety, on-site operation safety, fire safety, environmental protection, emergency management, basic qualifications, and document systems. The first level is the weekly self-inspection of each operational storage yard and the preparation and submission of self-inspection reports. The second level is that the group headquarters organizes the responsible persons of each storage yard to conduct a comprehensive cross-safety inspection. Each operating storage yard conducts at least one such inspection every year.
The company has SMS manual, SSP manual and DMLC PART-II manual in terms of the fleet, all in accordance with the requirements of the classification society/flag state/convention spirit. It has specifically formulated the "Occupational Health and Safety Operation Control Procedure", "Precautions for Crew Members' Personal Safety", "Crew Member Duty and Shift Handover System", "Regulations on Ship Hygiene and Drug Management", and "Regulations on Ship Anti-Drug Work".
In addition to managing processes, we place greater emphasis on cultivating employees' safety awareness, ensuring that everyone understands the significance of safety and practices it in their daily work. And promote the culture of open reporting, encourage employees to report potential safety hazards and accidents, not be punished for reporting, and ensure that problems can be solved in a timely manner.
During the development, implementation and evaluation of the safety management system, our company widely solicits the opinions of workers and incorporates them into the system. Our company is committed to conducting internal occupational health and safety performance evaluations on a continuous and regular basis. While implementing the safety management system, we attempt to identify existing problems in the system and make improvements. We adopt best practices and new technologies to enhance the performance of the safety management system. And formulate priorities and action plans, and combine them with quantitative goals for improving the performance indicators of the safety management system to address these risks and integrate preparedness and response actions for emergencies. And regularly evaluate the progress in reducing/preventing security issues/target risks.
We are committed to achieving the highest level of safety and quality throughout the company's value chain. We aim to achieve net zero internal safety incidents while helping upstream suppliers and downstream partners enhance their safety standards. We also require our suppliers to comply with our net zero safety incident goals and safety policies. The company will evaluate the occupational safety management of suppliers and partners. And cooperate with them, provide the training they need, and work together to improve safety performance. Meanwhile, the company encourages suppliers and partners to formulate and implement their own safety management systems to ensure the security of the global supply chain.
2. Safety-related training
The company promises to provide workers with adequate training on the safety management system to enhance awareness and reduce operational health and safety incidents.
New employee training: Provide comprehensive safety training for new employees to ensure they understand the company's safety policies and procedures.
Continuous training: Regularly provide safety training to all employees, including the latest safety information, technological and regulatory changes.
Professional Development: Support employees' professional development in the field of safety management, including participating in seminars and obtaining certifications, etc.
Maritime business Safety Management training: The proportion of maritime employees in our company exceeds 30%. Our company strictly adheres to the "International Labour Convention" and our "Occupational Health and Safety Operation Control Procedure" to safeguard the rights and interests of crew members. We emphasize that we attach great importance to the physical and mental health of seafarers during their work and are committed to continuously improving the safety of their working environment and providing mental health counseling. Our company ensures that safety production training and safety management system training are included in the training scope of our employees. Enhance employees' safety awareness through regular training to eliminate accidents on board and occupational accidents.
In 2024, the total investment in crew training of our company reached as long as 45,103 hours. The company takes advantage of the time when crew members disembark from the ship to organize various types of training for them, ensuring that it includes training on safety management system documents, various maritime and mechanical operation instructions, accident safety analysis, mental health and other aspects. Every month on board, the captain organizes training in accordance with the requirements of this round of the annual training plan, including but not limited to the ship training manual, the latest information and instructions provided by the shore-based system, analysis and prevention of ship safety accidents, awareness of pollution prevention, and response capabilities, etc. After new crew members board the ship, they should complete the familiarization training on the operation of life-saving, fire-fighting equipment and emergency systems within two weeks.
Onshore business safety management training. In 2024, the number of onshore employees trained in our company reached 2,219, and the cumulative training hours reached 60,357. Our company regularly conducts fire drills and invites personnel from the Professional Fire Protection Center to the site for guidance. We provide training on the response capabilities of employees in the workplace such as stations when encountering initial fires, as well as on the types and correct usage methods of fire extinguishers. Our company attaches great importance to the safety of vehicle usage. The "Driver's Job Responsibilities" compiled by the fleet clearly stipulates safety regulations, and regular safety training is provided to all drivers. The logistics group under our company has formulated the "Safety System for Vehicles Entering and Leaving the Site" and the "Safety Management System for Separating Pedestrians and Vehicles" to standardize the safety measures for vehicles and personnel. In 2024, our company carried out various occupational safety and health training activities to familiarize employees with the company's safety system and work processes, enhance their mastery of the latest safety measures and technologies, and send staff in some areas to participate in the IMDG Code (International Maritime Dangerous Goods Code) training course study, enriching the professional knowledge of employees, improving their working ability and working quality. Enhance personal competitiveness, raise employees' awareness of work health and safety, and promote the construction of safety and health concepts. Safety production training is also an important part of our onshore staff training. We attach great importance to cultivating employees' safety awareness and ensure that the staff training for important operation businesses such as storage yards includes training on safety management system documents, various mechanical operation instructions, accident safety analysis, etc., to ensure that everyone understands the importance of safety and practices it in daily work.
3. Risk Identification
3.1 Risk identification and management procedures
Our company has incorporated the identification of safety management-related risks into the science-based risk identification of the entire company process. We have adopted analysis processes and methods that are basically consistent with our overall risk management and climate risk management, including case studies, scenario analysis, stakeholder consultation, technical tools, simulation exercises, etc. We have established a cross-departmental risk identification team, collected historical data of the company as well as industry and external data, identified potential security risks in the company's business processes, including but not limited to physical and information risks, and mapped out a risk matrix.
For the identified risks, we assess their priority, the degree of risk impact, the probability of occurrence, etc., and record the identified risks in the risk register for communication and reporting to the board of directors. And establish a risk monitoring mechanism, regularly check the changes in risks and the effectiveness of control measures, and formulate and implement risk mitigation measures, including preventive measures, reduction measures and emergency measures, to strengthen risk management in this part and employee training. In addition, we also attach great importance to risk communication, ensure the smoothness of the reporting process, and guarantee that risk information is effectively communicated among relevant parties within the organization and outside.
3.2 Risk Matrix and Risk Response Policy
Our company has identified the main risks in the main business (navigation) for safety management, analyzed the possibility of their occurrence and potential impacts, and formulated corresponding risk response policies and measures.
Risk items | Risk identification and description | Possibility | Evaluation of influence | Risk preventive measures | Related system (system name, chapter) | Person in charge of risk prevention and control |
1. Risk of ship and container operation: bad weather, berthing and departing operation; | In huge stormy waves, containers fall off, get injected with water, get drowned and polluted; hitting wharf and damaging unloading facilities in berthing and unberthing operation. | low | very high | Hull insurance is implemented by related stipulations of system documents | SMS document 080101,080102,080103,080104,070114,070108,080109 | DPA / Marine director |
2. Risk of violence and terrorism; | Crew suffer interior violence or exterior attack of terrorists and pirate | very low | very high | P&I protection and indemnity insurance implemented by related stipulations of system documents | SMS document 060108,SSP | CSO |
3. Out of control or power failure of main engine | For unknown reason, faulty operation or emergency events, the main engine lose control of the vessel. | low | high | Strengthen safety check, eliminate hidden dangers, and keep the equipment in good condition. Take measures according to system files when in danger. Vessel insurance. | SMS document 080200, 080107, 080105 | DPA / Maintenance Supervisor |
4. Serious injuries and illnesses of crew | Crew members are injured due to illegal operation and fighting, and their lives are threatened due to emergencies and serious diseases. | low | high | Adherence to operation norms, personal insurance for crew member, shore-base medical assistance organization. | SMS document 080105 | DPA / Crew Supervisor |
Fire in engine room | Triggered by hot work, over-temperature of machinery and equipment, electrical equipment and personnel negligence | very low | high | Control the combustible materials, fire source, and maintenance for machine and equipment, as well as strictly follow the operating procedures | SMS070135、070136、080103、080113 | DPA / Maintenance Supervisor |
Fire in cargo hold | Flammable and explosive goods, over-temperature of cargo hold, cargo shifting and personnel negligence | very low | high | Formulate preventive measures against the flammable and explosive goods based on their characteristics, supervise the cargo lashing, and strictly carry out the rules and regulations; turn on the blower fans (if any) in case of over 30 oC; without fans, open the small windows for natural ventilation | SMS070105、070106、080104、080113 | DPA / Marine director |
3.3 Employee Management Measures for Navigation Risks
Our company pays great attention to the navigation safety that may be affected by the physical and mental health of employees, and has targeted regulations in the safety management system and institutional documents.
3.3.1 Fatigue Risk Management
Article 6 of DMLC PART-II (Certification and Approval by Classification Societies on behalf of the competent authorities of flag States)
The Company shall provide no less than the rest time listed below for on-duty seafarers and seafarers whose duties involve the designated safety, pollution prevention and security duties:
(a) It shall be no less than 10 hours at the shortest within any 24-hour period; and
(b) No less than 77 hours within any 7-day period.
The rest time can be divided into at most two segments, with each segment lasting at least 6 hours, and the interval between two consecutive rest periods must not exceed 14 hours.
To ensure the continuous safe operation of the vessel under exceptional circumstances, some exceptions to the above rest time requirements are allowed, provided that the rest time is no less than 70 hours within any 7-day period, namely:
(a) Such exceptional arrangements shall not last for more than two consecutive weeks;
(b) The interval between two exceptional circumstances shall not be less than twice the duration of the exceptional circumstances;
(c) The rest time can be divided into at most three segments. One of the segments should be at least 6 hours, and either of the other two segments should be no less than 1 hour.
(d) The interval between consecutive rest periods shall not exceed 14 hours;
(e) And within any 7-day period, exceptional circumstances shall not exceed two 24-hour periods.
Exceptional circumstances should take into account, as far as possible, the guidelines on fatigue prevention in Section B-VIII/1 of the revised STCW 1978 Convention Rules.
Everyone on the ship has a daily rest time record. The shore-based supervisor's on-board inspection requires checking the crew's rest time record and guiding the correction. The system documents have formulated remedial measures when relevant problems arise.
3.3.2 Psychological Assistance Program for Ship Staff
The system document "Occupational Health and Safety Operation Control Procedure" (No.020200) aims to focus on the operation control process and methods of occupational health and safety risks for crew members.
In addition to team-building activities, our company also provides professional mental health training for employees. For instance, Jiyun Japan Company organized a special and meaningful training session - How to relieve Stress at Work: analyzing the causes of common negative emotions from a psychological perspective and the specific types of emotions they manifest, thereby helping employees correctly understand and face the stress brought by work. During the training process, everyone listened attentively, took notes carefully, and after it ended, shared their experiences of stress relief with each other.
3.3.3 Systematic alcohol and drug screening
1) "Personal Safety Precautions for Crew Members" (No.060106)
The dining time on ships must not exceed two hours. When having meals on the ship, it is best to drink beverages. Under no circumstances should the meal affect your normal work and duty. (Alcohol content of medium to strong liquor such as Baijiu and whisky with an alcohol content of over 20 degrees is prohibited. Drinking alcohol in personal rooms without permission is also forbidden. During meals on ships, alcohol consumption should be strictly controlled, with a maximum of 500ML of beer or 150ML of red wine per person.)" Drinking alcohol is strictly prohibited within 4 hours before the start of duty or work. The ship is equipped with an alcohol tester, which regularly tests and records the crew members.
2) "Crew Duty and Shift Handover System" (No.070103)
All crew members are strictly prohibited from excessive drinking. Crew members on duty and those performing security duties must abide by the relevant provisions of the STCW Convention when drinking alcohol.
3) "Regulations on Ship Hygiene and Drug Administration" (No.060102)
No crew member is allowed to drink alcohol excessively. The blood alcohol concentration (BAC) of captains, senior crew members and other seafarers performing duties related to safety, security and the Marine environment shall not exceed 0.05% or the alcohol concentration in their breath shall not exceed 0.25mg/L. And there are clear regulations on the management of narcotic drugs
4) "Regulations on Anti-Drug Work on Ships" (No.060105)
Regulations on the management of drug smuggling strictly prohibit crew members from taking or injecting drugs to protect their physical and mental health.
5) In accordance with the spirit and requirements of the flag state/convention.
For crew members with a tendency towards alcohol abuse or the possibility of drug addiction, in accordance with the requirements of the flag state and the spirit of the park, our SMS cannot carry punitive measures. Our usual practice is to remove them from the vessel and take remedial measures.
4. Safety inspection results and accident tracking
To ensure compliance and maintain employees' safety awareness, our company conducts regular compliance checks to ensure that all safety policies and procedures comply with relevant laws, regulations and industry standards. We also establish a document management system to ensure the accessibility, update and archiving of safety-related documents. Conduct regular internal safety audits to assess the effectiveness of the safety management system. Based on the monitoring and evaluation results, continuously improve the safety management system.
Key Performance Indicators (KPIs) : 1. Number of incidents; 2. Problem detection rate
In 2024, the weekly self-inspections of each operational storage yard will be completed a total of 676 times. The group headquarters organized the responsible persons of each storage yard to conduct 13 comprehensive cross-safety inspections. A total of 2,210 items were inspected, including 1,820 items related to safety and 390 items related to service. A total of 51 items of shortcomings and hidden dangers were identified, accounting for 2.3%.
In 2024, the safety production management of the storage yard achieved zero major safety production accidents for all personnel, machinery and the site throughout the year.
In 2024, the first-level ship managers of the company conducted self-inspections and self-evaluations of the ships, completing a total of 327 times. The quarterly inspection of the second-level shore Shanghai maintenance and mechanical services identified 853 issues, and the annual system inspection found 1,071 problems with the on-board SMS or ISPS. The third-level safety and technical personnel of the company have completed approximately 280,000 inspections of ship safety and maintenance, among which there were approximately 108,800 safety inspections. In 2024, the number of on-board inspections was 285, and a total of 4,502 safety and maintenance deficiencies were identified, all of which were immediately rectified.
Our company publicly discloses navigation safety accidents, including casualties, property losses during navigation, and ship collision accidents.
According to the safety accident ledger for 2024, there were 2 navigation safety accidents for us that year, both of which were collision safety accidents resulting in casualties. All were major navigation safety accidents.
“5 Zero” Target | Occurrences in 2023 | Occurrences in 2024 |
Serious accidents at sea | 1 | 2 |
Marine pollution accidents caused by oil and gas leaks | 0 | 0 |
Serious cargo accidents | 0 | 0 |
Industrial accident-related fatal accidents | 0 | 2 |
Cargo worker overwork accidents | 0 | 0 |
SMS compliance Certificate HK DOC 2024.pdf
SMS compliance Certificate PANAMA DOC 2024.pdf