TO THE MEMBERS

Dear Sirs,

PRACTICAL GUIDELINES FOR YEAR 2000 CONTINGENCY PLANNING

We are pleased to attach your copy of a new publication designed to help shipowners prepare their own Year 2000 contingency planning. This document is published by Lloyd's Register of Shipping and has been supported by all the Clubs in the International Group.

Towards the end of 1997 the Association commenced a process designed to assist all Members to combat the threat posed by the Year 2000 millennium bug. During 1998 this process produced three major initiatives; the Ship2000 website; a series of Year 2000 conferences - held in Singapore, London, Miami and Athens - and finally, the Ship2000 Toolkit.

The Ship2000 Toolkit suggested a seven-step approach - supported by a generic ship and an inventory template - to help Members tackle the Year 2000 problem. One of these steps highlighted the need for contingency planning as, even then, it was recognised that it would be important to prepare for the possibility of equipment failures.

Since that time much vital work has been done to fix or replace suspect systems and equipment. However, it is now generally accepted that even the most thorough and conscientious remediation programme cannot guarantee that critical IT systems and electronic micro-processors will function correctly. Furthermore, even those who are successful and whose systems function perfectly may be at risk from others - customers, suppliers, business partners or third parties - who have not been so conscientious and there is no sure way of knowing who those others are.

In the maritime transport industry the consequences of errors or failures in electronic systems and equipment could be extremely serious and involve loss of life and damage to the environment. It is therefore recognised that it is essential for each party to make contingency plans to establish in advance what he will do if either his or others' equipment malfunctions. This realisation is reflected in the Year 2000 Code of Practice published by IMO in circular no. 2121 of 5th March 1999. The Code of Good Practice and the parallel initiative to develop the Year 2000 'Safety Protocol' was referred to in the Association's circular of

The attached booklet and CD-ROM, which is based on work originally begun by this Association, is designed to help shipowners prepare the contingency plans envisaged in the IMO 'Code of Good Practice'.

The advice contained in these guidelines is not meant to be prescriptive. The thrust of the publication is advisory and is designed to assist Members to tackle their own unique requirements. It is recognised that the diverse nature of every shipping company means that Year 2000 contingency plans will vary considerably. Members are therefore invited to use these guidelines as a rough template to get their own Year 2000 contingency planning procedures underway and to refine and amend them as required.

Finally, the Association would like to thank all those companies listed in the acknowledgement section of the booklet for their invaluable assistance in the preparation of the Guidelines.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.

Note:

The booklet Practical Guidelines for Y2000 Contingency Planning may be downloaded below in Adobe Acrobat format (980K bytes)., February 1999 (Ref. 6/99) and a follow-up report on those initiatives will be circulated very shortly.