With the rapid growth and development of the Korean Shipping Industry both in external quantum and internal complexity, the marine insurance industry has accordingly expanded with it. This empirical study analyzes the quality factors of the Insurance and P&I Services using 5 factors of quality measures with 22 questions regarding the effect on customer satisfaction by the services offered by the P&I Clubs. The Study is expected to provide P&I Clubs with management tactics for customer satisfaction and the subsequent continued patronage supported by their members through the enhancement of the service quality. This study also provides direction for ship-owners and the members of the P&I Clubs in finding the most efficient service provider as well as in proposing competitive prices of the P&I insurance premium as their management tactic.
In the marine industry although there has been significant growth towards safety, security and risk assessments or risk-based strategies such as marine insurance and regulations to avoid the risks of damage to properties and the environment or the prospect of premature death caused by accidents etc, the moves toward managing the risks which are linked directly to the business functions and decision making processes have been very slow. Furthermore in the marine industry most perceptions, methodologies and frameworks of dealing with hazards, risks, safety and security issues are for their assessment rather than their management. This trend reveals the fact that in different marine industry sectors such as logistics and shipping there is a lack of coherent risk management framework or methodology from which to understand the risk-based decisions especially for the purpose of design, construction, operation, management and even decommissioning of the marine related applications. On the other hand risk management is not yet viewed holistically in the marine industry in order to, for example, assign a right person, i.e. risk manager, who can act as a coordinator and advisor with responsibilities that are only specific to risk management. As a result this paper, by examining the present physical borders and risk-based activities in the marine industry, aims to propose an appropriate risk management methodology in addition to the emergent role of risk managers which will enable the industry users initially to become familiar with the concept of risk management at its holistic level. In the later stages this eventually can lead to development of risk management capabilities at an exclusive level and its integration into the marine industry functions in future.
Journal of the Korean Society of Marine Environment & Safety
/
v.28
no.4
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pp.567-576
/
2022
Seafarers are exposed to various unpredictable maritime risks due to the spatial specificity of the working environment of the sea; thus, sufficient compensation for injured crewmembers is needed. However, Korea does not provide such compensation. Therefore, this study attempted to examine the Maritime Labor Act and the Industrial Accident Insurance Act of Germany, an advanced European social insurance country, and derive implications compared to Korea. First, we investigated how compensations are managed by a public institution in Germany and by shipowners in Korea. Second, regarding the contents of accident compensation, Germany does not only provide continuous treatment and care through various support systems, but also operates various programs to enable a return to ship work. In contrast, Korea has a temporary compensation system that allows shipowners to avoid liability for accident compensation, which is disadvantageous to shipwrecked seafarers. Finally, in Germany, workers' compensation insurance is public, judged considering the origin of work, whereas in Korea, it is determined by shipowners or insurance companies. Therefore, it is necessary to establish a public institution in charge of crew accident compensation to ensure proper compensation for crewmembers in Korea and to improve the Seafarers Act or system to provide compensation for additional medical care, disability pension, and rehabilitation benefits.
Journal of the Korean Society of Fisheries and Ocean Technology
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v.55
no.1
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pp.82-93
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2019
The International Labor Organization (ILO) selected fishing as the most dangerous group of jobs in the world, and it is well known in Korea as a 4D industry. Offshore large purse seine accounts for the largest portion of the fishing industry in the coastal region with high death rate and the accident rate. The repeated disaster rate survey by the Korea Maritime Institute (KMI) shows offshore large purse seiner is the highest at 22.3 percent and coastal gill nets and offshore stow net are following at 12.4 percent and 11.9 percent in order. Therefore, risk factors occurring in offshore large purse seiners were analyzed based on data from the National Federation of Fisheries Cooperatives (NFFC) for three years from 2015 to 2017 and 4M (Man, Machine, Media, Management) 3E (Engineering, Education, Enforcement) techniques were used to provide a safe fishing environment. The number of accidents on offshore large purse seiners each year was more than 150, and the number of accidents on every fishing boats was as high as 17 percent in 2015. If the accident rate and the risk level were divided by insurance, the accident resulting from contact with machinery was the highest, and the risk of a contact with gear was low but frequently occurring. This was caused by collisions and contact with gear in situations where death and disappearance risk are not high, and accident types in situations where death and loss risk are considered to be contact with machinery, falls or other accidents. Through these analysis techniques, the frequency and risk of each type of accident on a offshore large purse seiners can be demonstrated, and it is expected to raise awareness of a safer fishing environment and contribute to the reduction of accidents.
This project sought to conduct an economic feasibility study regarding the commercial production of bio-hydrogen by the marine hyperthermophilic archaeon, Thermococcus onnurineus NA1 using carbon monoxide-containing industrial off-gas. We carried out the economic evaluation of the bio-hydrogen production process using the raw material of steel mill by-product gas. The process parameter was as follows: $H_2$ production rate was 5.6 L/L/h; the conversion of carbon monoxide was 60.7%. This project established an evaluation criterion for about 10,000 tonne/year. Inflation factors were considered as 3%. The operating costs were recalculated based on prices in 2014. The total investment required for development was covered 30% by capital and 70% by a loan. The operation cost for the 0.5-year test and integration, and the cost for the first three months in the 50% production period were considered as the working capital in the cost estimation. The costs required for the rental of office space, facilities, and other related costs from the construction through to full-scale production periods were considered as continuing expenses. Materials, energy, waste disposal and other charges were considered as the operating cost of the development system. Depreciation, tax, maintenance and repair, insurance, labor, interest rate charges, general and administrative costs, lubrication and miscellaneous expenses were also calculated. The hydrogen price was set at US$ 4.15/kg for the economic evaluation. As a result, the process was considered to be economical with the payback period of 6.3 years, NPV of 18 billion Won and IRR of 26.7%.
Journal of the Korean Society of Fisheries and Ocean Technology
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v.58
no.2
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pp.185-192
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2022
Fisheries is known as a high-risk industry in Korea, and various efforts have been made to reduce occupational accidents. Trap fisheries represent crustacean production, accounting for 4.7% of total fisheries production and 10.7% of its production value, which is classified as a relatively high-risk industry. With the disaster insurance payment data of the National Federation of Fisheries Cooperatives (NFFC) from 2016 to 2020, the accident rate of the entire fishery, the accident rate of trap fisheries, and the type of disasters in the past five years were analyzed. As a result, the average fishery accident rate for the past five years was 5.31%, but it was high at 6.15% for coastal trap fisheries and 5.59% for offshore trap fisheries. Slips and trips, struck by objects and contact with machinery were the most common types of the accident according to the characteristics of the work, and hand injuries were analyzed the most. Additional efforts, including education for accident prevention, development of personal protective equipment and improvement of the working environment, are needed to prevent accidents caused by repeated types of disasters.
Nowadays in offshore industry there are emerging hazards with vague property such as act of terrorism, act of war, unforeseen natural disasters such as tsunami, etc. Therefore industry professionals such as offshore energy insurers, safety engineers and risk managers in order to determine the failure rates and frequencies for the potential hazards where there is no data available, they need to use an appropriate method to overcome this difficulty. Furthermore in conventional risk based analysis models such as when using a fault tree analysis, hazards with vague properties are normally waived and ignored. In other word in previous situations only a traditional probability based fault tree analysis could be implemented. To overcome this shortcoming fuzzy set theory is applied to fault tree analysis to combine the known and unknown data in which the pre-combined result will be determined under a fuzzy environment. This has been fulfilled by integration of a generic bow-tie based risk analysis model into the risk assessment phase of the Risk Management (RM) cycles as a backbone of the phase. For this reason Fault Tree Analysis (FTA) and Event Tree Analysis (ETA) are used to analyse one of the significant risk factors associated in offshore terminals. This process will eventually help the insurers and risk managers in marine and offshore industries to investigate the potential hazards more in detail if there is vagueness. For this purpose a case study of offshore terminal while coinciding with the nature of the Caspian Sea was decided to be examined.
Journal of the Korean Society for Marine Environment & Energy
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v.14
no.1
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pp.51-64
/
2011
Carbon dioxide Capture and Storage (CCS) is one of the key players in greenhouse gas (GHG) reduction portfolio for mitigating climate change. CCS makes simultaneously it possible not only to reduce a huge amount of carbon dioxide directly from the emission sources (e.g., coal power plant) but also to maintain the carbon concentrated-energy and/or industry infrastructure. Internationally, the United Nations Framework Convention on Climate Change (UNFCCC) is dealing the agenda for considering the possibility of including CCS project as one of Clean Development Mechanism (CDM) projects. Despite its usefulness, however, there are the controversies in including CCS as the CDM project, whose issues include i) non-permanence, including long-term permanence, ii) measuring, reporting and verification (MRV), iii) environmental impacts, iv) project activity boundaries, v) international law, vi) liability, vii) the potential for perverse outcomes, viii) safety, and ix) insurance coverage and compensation for damages caused due to seepage or leakage. In this paper, those issues in considering CCS as CDM are summarized and analyzed in order to suggest some considerations to policy makers in realizing the CCS project in Korea in the future.
Journal of the Korean Society of Marine Environment & Safety
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v.11
no.2
s.23
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pp.41-49
/
2005
In general, the criminal responsibility of seaman should always be directly assumed by the seamen, according to the principle of self-incrimination. Therefore, the only possible countermeasures for the criminal responsibility of seamen may be to reduce the responsibility by using criminal procedures (ex. the warrant substance examination system, the review system of legality for confinement as much as possible. Another possibility is to reduce the penalty through the revision of the law. In detail, concerning the problem of fine, the maximum fine for oil spill accidents by criminal negligence is KRW 30,000,000 under the current Ocean Pollution Prevention Act, and when an oil spill occurs, the maximum fine tends to be levied regardless of the amount of the spilled oil; thus, it is judged that grading the fine according to the amount of spilled oil may be worth considering. Regarding P & I's payment of fine, contrary to general belief, it is only possible to make up the loss when P & I takes up the legal responsibility or acknowledges its payment. In order to solve the problem, it is possible to consider the option of introducing new collective insurance program or mutual aid system. Also, as seamen are not specialists in legal issues, the ship owners' association or the marine afficers' association need to develop some program through which they can receive systematic assistance from legal specialists including lawyers when they encounter any legal problems (ex. free legal aid programs for farmers and fishermen). Finally, it may be possible to establish enact new laws or revise the existing Act on Special cases Concerning the Settlement of Traffic Accidents to insert a new section on marine accidents.
Journal of the Korean Society of Marine Environment & Safety
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v.26
no.1
/
pp.57-64
/
2020
The IOPC Fund general assembly reported that the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (known as the HNS Convention) will meet the requirement for the convention to take ef ect between 2021 and 2022. When the convention comes into effect, the liability-limit insurance of the HNS transport ship will be enforced and the shipper receiving the HNS will pay the share of the contribution from the International Fund for damages exceeding the limit of the ship's liability insurance. Korea is one of the major shipping and shipper countries in the world; thus, this study aimed to the need to analyze the effect of the convention on the related industries. The survey of ships and contribution targets analyzed the research data of the Ministry of Oceans and Fisheries. The P&I premium estimation was reviewed by the Korea Shipping Association and the K P&I as insured ships. In addition, the contribution of the HNS cargo volume was analyzed in an annual report by a representative international association for each cargo. About 1,500 ocean-going and domestic vessels have been identified as ships subject to the convention. The effect of changes in premiums under the convention was minimal for most ships. The effect of the shipping industry is expected, with about 150 domestic tankers expected to increase insurance premiums. In the case of shipper industries, 52 freight terminals were found to be eligible for the payment of the share of the international fund, as the proportion of freight volume in Korea was ranked second to fourth in the world by individual HNS accounts. This implies the obligation to pay contributions according to the convention. Considering the status of HNS transport ships entering and leaving ports and the quantity of HNS cargo, it can be concluded that the validity of Korea's convention is sufficient and that, it is necessary to coordinate with global major shipper countries.
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