FR 2021-01058

The document from the Federal Register presents a proposal by the Coast Guard, part of the Department of Homeland Security, to improve safety measures on U.S.-flagged passenger vessels through the implementation of Safety Management Systems (SMS). The Coast Guard is soliciting public input to determine the feasibility and potential requirements of such systems. They aim to utilize the information gathered to create a rule that enhances maritime safety.

Overview

At its core, the document outlines the Coast Guard’s intentions to explore how implementing SMS on passenger vessels might reduce marine casualties and improve overall safety. The Coast Guard's interest in Safety Management Systems stems from their potential to streamline operations and enhance information sharing, thereby mitigating risks and potentially eliminating some outdated regulations.

Significant Issues and Concerns

One of the significant issues in the document is the use of technical terminology and references to statutes and codes that might be challenging for individuals without a legal or maritime background to understand. Abbreviations like CFR (Code of Federal Regulations) and DHS (Department of Homeland Security) are used without clear explanations, posing comprehension difficulties for laypersons.

Moreover, the cost implications of implementing SMS are mentioned but not explored in-depth. Instead, the document seeks public comment on these aspects without offering a framework for how such costs will be assessed or how they might impact different entities, particularly small businesses. This lack of clarity may make it difficult for small business owners to provide informed feedback.

There is a reference to past incidents and safety failures, including specific accidents that underscore the need for improved safety measures. However, these references lack a comprehensive summary of the incidents’ details and their outcomes, which would have aided in better understanding why SMS legislation might be necessary.

Broad Public Impact

For the general public, particularly those who use passenger vessel services, the potential implementation of SMS could significantly enhance safety measures and operational procedures. This initiative could lead to a more robust safety culture within the maritime industry, potentially reducing the frequency and severity of marine casualties and giving passengers greater confidence in their safety while aboard.

Specific Stakeholder Impacts

Different stakeholders will experience varied impacts from this initiative. For passenger vessel operators, particularly those with small businesses, the potential regulation could present financial and operational challenges. The document indicates that smaller businesses may face disproportionate costs when implementing SMS, but it does not detail how they might be assisted or what measures would be taken to alleviate this burden.

Conversely, the move could positively impact vessel operators with larger fleets by offering a standardized framework that enhances safety operations across similar vessels. By preventing the siloing of safety information, an SMS could foster better communication and governance practices within and between companies, potentially avoiding future casualties.

Conclusion

Though the document seeks to pave the way for improved safety on passenger vessels, its language and presentation might obscure its intentions and importance for some stakeholders. Providing more accessible explanations of technical terms and legal references would benefit public understanding and participation in this proposed rulemaking process. Furthermore, articulating potential impacts on small businesses with greater clarity would support more meaningful engagement from that sector. The document signifies the beginning of a potentially transformative safety enhancement effort, but its ultimate success will hinge on effectively engaging all stakeholders in the discussion.

The document discusses the potential use of Safety Management Systems (SMS) for passenger vessels and makes several financial references mainly related to property damage costs from past maritime incidents. These cost references are crucial for understanding the potential financial impacts of implementing SMS regulations aimed at preventing similar accidents in the future.

Summary of Financial References

The document mentions three specific cases of property damage resulting from maritime accidents:

1. Property damage from the Staten Island Ferry incident in 2003 was in excess of $8 million dollars.
2. The fire incident involving the U.S. small passenger vessel Port Imperial Manhattan in 2000 resulted in property damage estimated at $1.2 million dollars.
3. The Island Lady vessel, involved in a fire incident in 2018, was valued at $450,000 and declared a total constructive loss.

These figures highlight the significant financial impacts that maritime accidents can have, which is a key consideration for implementing more structured safety measures like SMS.

Relation to Identified Issues

The financial references in the document underscore the substantial costs associated with accidents that SMS aims to mitigate. By referencing these amounts, the document implicitly argues for the cost effectiveness of SMS in potentially reducing expensive damages. However, there are identified issues concerning the cost implications of SMS implementation that are not directly addressed in the document.

1. Cost Evaluation of SMS Implementation: The document seeks public comment on the costs of implementing SMS but lacks details on how these costs would be assessed. This omission is significant given the substantial property damage costs cited, as it leaves stakeholders without clear cost-benefit analysis information.

2. Impact on Small Businesses: The document does not assess how SMS implementation might financially impact small businesses differently compared to larger ones. Given the need for these businesses to allocate resources towards developing and maintaining SMS, the absence of specific guidance could lead to financial stress for smaller operators.

3. Alternatives to SMS: There is an ambiguity in how the Coast Guard will balance the financial benefits of SMS against expanding existing regulations. While the document provides examples of costly incidents, it does not clarify how SMS costs might compare to alternative measures in terms of financial allocations.

In conclusion, the document references significant financial damages from past incidents to support SMS’s preventative potential. However, it leaves several questions about the financial implications of implementing such systems open for public discussion and comment, especially concerning cost evaluation and the economic impact on small businesses.