Reimagining Maritime Classification Societies: Six Essential Steps for Societies to Evolve and Succeed

In an era marked by rapid technological advancements and shifting workforce expectations, classification societies stand at a pivotal crossroads. The industry is under pressure to recruit, train, and retain a new generation of surveyors who prioritize organizations dedicated to innovation and continuous improvement. While industries like e-commerce and artificial intelligence are setting new benchmarks for efficiency and customer satisfaction, many classification societies remain tethered to outdated practices that hinder their potential for growth and relevance. This article delves into six critical areas requiring immediate reform to help classification societies not only navigate the challenges of today but also thrive in the competitive landscape of the future.

1. Optimizing Survey Duration: Are Your Practices Costing You?

How much time does your organization allot to conduct an annual survey? Is this time communicated effectively to surveyors and clients? Do your scheduling, service quotes, billing practices, and manpower requirements align with these minimum time standards? The unfortunate truth is that many organizations fall short in these areas, which is costing classification societies millions of dollars each year.

Depending on the vessel’s type, size, flag, and area of operation, a surveyor (or surveyors) may need to verify between 300 and 1,000 items during an annual survey. These items are derived from class rule books, internal process instructions, flag regulations, guides, memorandums, and checklists.? Where are the minimum time requirements necessary to fulfill all survey requirements posted?? They’re not.?

To complete a single checklist item, such as the annual examination of an inert gas generator, classification societies may have additional confirmation points or subcategories that consist of 15 to 20 specific items requiring visual inspection and testing.?

On a RO-RO vessel, one annual confirmation task involves the general examination of mushroom vents, which could include over 50 individual vents. The surveyor must verify that both pneumatic and manual closing mechanisms are fully operational. This often requires the surveyor to get on hands and knees to peer through mesh grating, ensuring the gasket is intact, the coaming is in good condition, and a proper seal is formed when the vent is closed. Coordination with the engine department may also be necessary to avoid mechanical issues. So, how much time does your organization allocate for this single task? Is it one hour? Four hours?

On a chemical tanker, a surveyor dons a rain suit to ensure that the sprinkler and nozzle heads of the deck spray fire suppression system are fully operational. This process requires careful coordination with the crew, cargo surveyors, and obtaining permission from the terminal, all of which adds to the time needed for completion.

In fact, many classification societies engage in practices that can be quite frustrating and contribute to their financial losses. Often, they add survey tasks that serve only the interests of the society rather than benefiting the client. For example, I know of a specific case where a surveyor spent eight hours on the bridge filling out forms intended solely to limit the society's liability. This information provided no real value to the client, yet it was reported on the timesheet as productive work.

Another area of frustration is the disconnect between the survey department and billing. Does the billing department, along with the account managers, also sign off when? additional tasks are added to the surveyor’s scope of work?

I urge every classification society to take a hard look at the time spent conducting annual surveys on ocean-going commercial vessels. By meticulously tracking the time required to complete each task in accordance with all relevant Class Rules, MoUs, and internal procedures, organizations can gain invaluable insights into their operational efficiency. This exercise not only highlights potential inefficiencies but also facilitates a crucial evaluation of whether billing practices align with the actual work performed. Implementing these adjustments can lead to significant financial savings and ultimately enhance the value delivered to clients. The path to greater efficiency and sustainability in the maritime industry begins with transparency and accountability.

2. Rethinking Block Fees: Are They Sustainable?

Countless millions are lost each year due to block fees. As mentioned above, the minimum time required for annual surveys is not published—so how are block fees determined? For instance, how can a block fee be set at 16 working hours when a survey requires 40? This becomes an ethical issue when management pressures staff to complete surveys within unrealistic billing constraints. In my 11 years as a surveyor, I’ve found block fees to be one of the leading cause of anxiety, toxicity, and financial loss in classification societies. It's time to eliminate them.

I’ve repeatedly seen classification societies underbid competitors to gain market share for specific vessel types, signing block fee agreements to secure the business. But how often does this strategy actually work out financially? The answer: it doesn’t.? In the long run, to avoid losing tonnage, class societies often end up providing additional discounts, further eroding their financial stability.

3. Elevating Surveyor Training: Are We Doing Enough?

How effective are the current training methods used by classification societies? When I started my career 11 years ago, I was told it would take years to acquire the qualifications needed to independently inspect ocean-going commercial vessels—and it did. Yet as of 2024, surveyors are being qualified in six months or less.

So why has the surveyor qualification process shortened from years to just months? The answer lies in increased employee turnover, which has pressured classification societies to produce billable surveyors as quickly as possible. However, this short-term approach is likely to lead to significant challenges for classification societies in the future.

In recent years, I've heard of entire offices resigning.? I witnessed one office with over 75% turnover, where roughly 130 years of combined survey experience were lost within 18 months. These departures have led to rushed training programs, but the result is far from quality training.

Today, most survey training is conducted online. However, this approach is ineffective for surveyors who learn best through hands-on experience. Additionally, the current industry standard of only two vessel attendances to qualify surveyors for a specific task is insufficient for thorough skill development.

For instance, consider weld inspections. The American Welding Society (AWS) mandates years of experience to become a certified weld inspector, and the final examination is notoriously rigorous. In contrast, a surveyor can qualify to inspect weld repairs on ships in less than a month, whether for a cruise ship carrying 3,000 passengers or a chemical tanker.

In the context of welding, classification societies require surveyors to witness structural fit-ups, final inspections, and non-destructive testing. Remarkably, within just one month, a surveyor can be qualified to interpret welding procedures, understand group numbers, and possess the authority to issue a 'stop work' order if they observe insufficient shielding gas. Is this truly feasible? I believe that hull inspections are as critical as bridge inspections. ?

It is imperative for classification societies to reassess and elevate their training methods for surveyors. The shift toward rapid qualification processes, driven by high turnover rates, is compromising the quality and effectiveness of training. To ensure that surveyors are equipped with the necessary skills and knowledge for the complexities of their roles, organizations must implement a more comprehensive training framework that combines online education with hands-on experience and mentorship from seasoned professionals. Additionally, incorporating third-party evaluations can provide an unbiased assessment of training efficacy. By prioritizing the development of well-rounded surveyors, classification societies can not only improve the quality of inspections but also safeguard the future of the industry against potential risks associated with undertrained personnel. The time to invest in robust training solutions is now, for the benefit of both surveyors and the maritime community at large.

Interestingly, surveyors have shared with me that they left classification societies to avoid becoming potential liabilities, citing insufficient training and escalating responsibilities.

4. Unlocking Business Growth: Why Surveyors Should Drive Sales

Classification societies often expect surveyors to build and maintain relationships with customers, yet they do not incentivize them to bring in new business. If you want to witness the largest migration of tonnage from one classification society to another, consider offering incentives to your surveyors for generating new business.

Let me explain. In 2019, while watching Peaky Blinders in my pajamas, I received a call from a former classmate and friend from Maine Maritime Academy. He was now in charge of all class and statutory activities for a Greek shipping company and asked if I would receive any incentive for acquiring 11 vessels, each between 5 and 15 years old. I immediately contacted the business development department, and their response was swift: surveyors are not incentivized. As a result, the vessels never transferred classification.

Fast forward to 2024: a surveyor at another classification society approached his supervisor with a list of eight yacht captains interested in transferring their classification. Having recently transferred himself and with a strong reputation, the surveyor was seen as a trusted resource. However, when he inquired about any cash incentive for acquiring new business, his supervisor replied that there was none; instead, he would be 'considered' for a bonus during his next performance evaluation. As a result, none of the eight yachts transferred their classification, representing a potential annual billing of $120,000 to $240,000.

Classification societies must recognize the critical role surveyors play in driving business growth and incentivize them accordingly. By establishing reward systems for surveyors who successfully attract new clients, organizations can create a culture that values proactive engagement with customers and fosters stronger relationships. The missed opportunities illustrated by the experiences of surveyors seeking to transfer vessels highlight the potential financial benefits that could be realized through a more strategic approach. Incentivizing surveyors not only encourages them to leverage their networks but also positions classification societies to compete more effectively in the market. Investing in these incentives could lead to significant gains in both revenue and client loyalty, ultimately benefiting the entire organization.

5. Streamlining Survey Reporting: Is Your System User-Friendly?

All classification societies rely on a survey reporting platform to generate vessel certificates, write reports, and upload documentation related to surveys. However, a critical question remains: who within your organization is responsible for measuring the effectiveness of this reporting process? Who ensures a smooth user experience and evaluates the reporting practices of surveyors for quality and efficiency?

Let me share a personal experience to illustrate the issue: during a recent attempt to issue a single certificate, I became so frustrated with the number of clicks required that I lost track after 800. This begs the question: who is monitoring the number of mouse clicks and the pages a surveyor must navigate to complete a task? Furthermore, if a surveyor is working at anchorage with limited or no internet connectivity, can they effectively complete a transfer of class survey?

If you want an eye-opening experience, observe firsthand the survey process for a transfer of class survey. Watch as a surveyor navigates your system's reporting process, and count every click, page visited, and system error encountered. Note how often they seek assistance or submit tickets for issues. How long does the entire process take? Is it 24 working hours? 48 working hours? Personally, I have spent even more time.

To enhance efficiency, the survey reporting process must be subject to ongoing evaluation, focusing on minimizing the time surveyors spend onboard. Ideally, surveyors should complete all reporting requirements before disembarking, ensuring that no further actions are needed at home or in the office. Additionally, any changes to the survey reporting process must receive approval from billing and client managers, to include any item added to a checklist. By prioritizing these improvements, classification societies can streamline workflows, reduce frustration, and ultimately provide better service to clients.

6. Harnessing Technology: The Future of Remote Surveys

During COVID-19, I briefly believed that remote surveying would take off. The pandemic demonstrated that, with available technology, we could conduct surveys without the need for physical attendance. Remote surveying now has the potential to expand the reach and capabilities of classification societies, reducing the global surveyor headcount by 60% and physical vessel attendances by 90%.

Implementing remote surveying on a large scale will guarantee 100% vessel compliance during annual surveys. As I will demonstrate, this approach would eliminate the risk of port state detentions attributed to classification societies.?

So, what would a remote survey program entail? Vessel operators would receive a tablet, such as an Apple iPad or a Samsung Galaxy Tab, equipped with an intrinsically safe cover. Officers who complete an online training course on how to operate the software application would be responsible for conducting the survey within the traditional survey window.

The software would require crew members to capture both photographs and videos of specific tests mandated by rules and regulations. These tests, which are already integrated into preventative maintenance systems and performed weekly or monthly, could also help meet the requirements of the annual survey. As a result, crews would not need to duplicate their activities for a class survey.

Documents, photos, and videos would be time-stamped. The software would provide detailed instructions on how to take each photo, including considerations for lighting, angles, and other requirements (similar to applications used by banks and rental car companies). Most importantly, by adhering to the software guidelines, vessel operators and crew would understand exactly how to comply with regulations and the reasons for doing so.

The software would function offline until the vessel reaches port, at which point the vessel’s qualified individual would submit the report to a surveyor operating remotely. The surveyor would then review the photos and videos to confirm compliance. For example, when inspecting a mushroom vent on a Ro-Ro vessel, the surveyor would examine the structural components of the mushroom vent from all angles, assess the condition of the vent screen, and verify through video evidence that the closing mechanism operates correctly.

After reviewing the data submitted from the vessel, the surveyor—located anywhere in the world—could approve the report, issue a condition of class, or request additional evidence. Upon completion of the survey, the report would be accessible to both flag and port state authorities via a shared link. This approach eliminates disputes over issues like 'oil in the bilge' or 'fire door not closing' being attributed to the classification society, as there would be photos and videos documenting compliance.

For the industry, safety is significantly enhanced through remote surveying. The results are clear-cut: a vessel either complies with the regulations or it does not.

Remote surveying would enable offices to streamline their workforce. A surveyor in London could efficiently review data from a vessel making a port call in Singapore, reserving physical surveys for new construction, modifications, damage assessments, vendor evaluations, or unusual circumstances. Additionally, if a surveyor concludes their day without finishing a survey, another surveyor in a different part of the world could step in to continue evaluating the vessel’s condition, thereby enhancing overall deliverables. These savings would significantly elevate the potential of classification societies, allowing for reinvestment in innovative engineering projects.

The bottom line is that implementing remote surveying would enable classification societies to provide superior service without the need for physical vessel attendance, particularly for those operating under strict time constraints, in remote locations, or during unconventional hours. Once developed, seeking acceptance from the IMO, flag states, and port authorities would be a straightforward objective. With the appropriate software, directory programs, and equipment, such a system could be fully operational within 36 months.

Final Thoughts

The future of classification societies depends on their willingness to evolve and embrace innovation in every facet of their operations. By addressing inefficiencies in survey practices, eliminating outdated fee structures, investing in comprehensive training programs, incentivizing surveyors to drive business growth, streamlining reporting systems, and harnessing remote technology, classification societies can transform themselves into forward-thinking organizations ready to meet the demands of the modern maritime industry.