There are numerous benefits in running a safety excellence project. One challenge in safety work is that few, if any know the real costs related to safety. While the direct costs related to insurance claims are well documented, the sum of costs related to unnecessary repairs, repeating failures, offhire, lost time and focus are hidden and unknown to most companies. In addition the annual costs of the more infrequent but expensive accidents are normally not included in the overall safety cost picture.

Our experience, working close both with shipping companies and insurance is that the hidden costs are significant around the same magnitude as the direct costs. Hence if the annual direct costs of H&M and P&I insurance sum up to 1,5 million dollars, your estimated total costs are 3 million dollars. This is a significant share of your direct operating expenses – with great opportunities for savings. Our experience is that it is possible to reduce these total safety costs by 50% over a period of two years.

In addition to cost saving there is a range of other benefits that should be important for you. These are:

Secure revenues: Poor safety may result in loss of existing contracts and for reduce possibilities for new opportunities.

Acknowledge responsibility for safety: Top level management has a moral responsibility to do what is reasonable possible to do to prevent losses.

Improved organisational cooperation and efficiency: Improved communication and cooperation between ship and shore and between departments.

Ventilate frustration: Organisational changes, uncertaintees or poor communication may over time result in a build-up of frustration both onboard and ashore. The involvement of the whole organisation opens up for this frustration in a structured way.

Improve general leadership: The safety excellence program can be used as a tool for introducing improved leadership styles in general.

Improve trust in top level management: Without trust in top level management it is difficult to obtain loyalty to company values, procedures and operational changes.

Improved safety awareness and safety training: Compliance with rules and regulations: ISM-code objectives and TMSA stage 3.