IHM and Ship Supply - Still A Problem....

Tim Prins, a Member of the Sustainability Working Group OCEAN, explains why, years after the IMH was enacted, it still causes headaches for ship suppliers. Let's explore. 

The Inventory of Hazardous Materials (IHM) regulation, introduced by the International Maritime Organization (IMO), requires ship suppliers to track and report hazardous materials in their goods to ensure environmental protection. While initially burdensome, the integration of IHM compliance into ERP systems has streamlined the process, reducing administrative challenges and making adherence more manageable.

The Impact of IHM on Ship Suppliers: An Overview

The maritime industry is continuously evolving, and with the growing focus on sustainability and environmental protection, new rules and regulations have been introduced to minimise the impact of shipping on the environment. One of the key initiatives in this context is the Inventory of Hazardous Materials (IHM), a regulation that has significant implications for ship suppliers.

What is IHM?

IHM stands for "Inventory of Hazardous Materials" and is a requirement from the International Maritime Organization (IMO) regulations. It specifically aims to minimise the risks posed by hazardous substances on board ships. The goal of IHM is to maintain a complete inventory of all hazardous materials present on a vessel throughout its lifecycle, from construction to scrapping.

For ship suppliers, every delivery of goods containing hazardous materials must be registered and reported to recognised organisations. These organisations assist in keeping track of and managing the inventory of hazardous materials on board the ship.

Administrative Burden for Ship Suppliers

When the IHM regulations were first introduced, they brought a significant administrative burden for ship suppliers, especially for ship chandlers. Initially, managing the documentation and reporting requirements was a challenging task. Ship suppliers had to adapt to new processes, and implementing these regulations often required manual tracking, additional paperwork, and a steep learning curve.

However, over time, this challenge has been largely overcome. Most ship chandlers have now integrated IHM compliance into their ERP systems, streamlining the process significantly. As a result, what once seemed like a significant administrative hurdle is now much more manageable, and many suppliers have found it easier to comply with the regulations.

An excellent example of this progress is the termination of the IHM working group within the Dutch Ship Suppliers Association). This working group played a crucial role in helping our members navigate the complexities of IHM compliance during the early stages. However, by 2022, it was decided to dissolve the group, as most companies had successfully integrated IHM into their operations, and there needed to be more collective guidance.

Consequences of Non-Compliance

Failing to comply with IHM regulations can have severe consequences for ship suppliers. Penalties for violations can be substantial, depending on the nature of the violation and the jurisdiction in which it occurs. Additionally, suppliers who do not comply with the regulations may face reputational damage and loss of customers, especially in an industry where adherence to environmental standards is becoming increasingly important.

Conclusion

For ship suppliers, complying with IHM regulations is not optional but mandatory. While the administrative burden was initially significant, the industry has adapted, and compliance is now easier thanks to integrating IHM processes into ERP systems. The maritime industry is moving towards a more sustainable future, and adhering to IHM regulations is a step toward achieving this goal.