And speaking of shipping...Courtesy of csy2k--
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Elsewhere in this newsgroup you will find a troll by Howard Belasco to the
effect that the world's maritime industry is home free from the Y2K
problem....not so according to the U.S. Coast Guard. The following is from the
Coast Guard's Y2K Information Page--it is just one of 184 documents on the
problem from the Coast Guard perspective.
uscg.mil
Y2K question: Will the bug bite shipping?
The nightmare for carriers begins Jan. 1, 2000, unless they make fixes now
BY KEVIN G. HALL
JOURNAL OF COMMERCE STAFF
MIAMI -- It's New Year's Eve 1999, but all is not well. Tankers and container
vessels on busy trade lanes have suddenly lost their steering and
engine-monitoring systems. Hours earlier, gantry cranes have mysteriously
malfunctioned, creating havoc at some of world's busiest waterfronts.
Elsewhere, a freight forwarder in Brazil is desperately trying to communicate
with its European offices. The European offices are not only out of reach, they
are unaware that refrigerated cargo moving from New Zealand to Europe may soon
start spoiling because temperature controls on the vessel have suddenly
malfunctioned. Is this a transport industry nightmare that will disappear with
daylight, or a very real possibility for the international trade community?
For a broad section of industry players gathered in Miami last week, the Year
2000 issue is not the stuff of bad dreams but a real problem that threatens
global shipping by sea and air. When New Year's Eve rolls over into Jan. 1,
2000, many computer hardware and software applications that have not been
modified, upgraded or scrapped will simply begin recognizing the year 2000 as
1900 -- creating havoc in all kinds of programs. Also at risk for malfunction
are embedded computer chips governing all kinds of applications from maintaining
cargo hold temperatures to monitoring steering and computerized navigational
mapping.
On land, the problem would affect the operation of security gates at terminals,
crane operations and all sorts of record keeping. Simply put, on Jan. 1, 2000,
any software, hardware or chip application that involves data sequencing or data
calculations -- or that receives data from outside sources that is calculated or
sequenced -- is potentially at risk and in need of prior inspection, experts
say. Loose industry estimates are that 80% of the world's larger vessels will
have been inspected for potential Year 2000 malfunctions before the turn of the
century.
Some 20% of larger ships, some estimate, will not have been properly examined
for the computer bugs and will create enormous risk. "As our lawyer puts it,
he'd like to see every ship in the world at anchor," said Capt. Philip Davies,
who is overseeing Year 2000 efforts for oil giant Chevron Shipping Co. LLC.
Chevron is inspecting its 35 tankers and putting procedures in place for dealing
with the 400 other vessels it charters, said Mr. Davies. The company has already
changed over 38,000 personal computers and servers in its offices and has had to
remove numerous on-board computers. Additionally, the company must meticulously
look at every automated or semi-automated function on a vessel -- more than
1,000 per vessel -- and determine if there is an operational risk involved. In
other words, there is no easy fix to the so-called "Y2K" problem.
You can't catch everything "It's highly unlikely you're going to fix
everything. It is highly unlikely you're going to find everything," said Mr.
Davies. He called on shipping lines and tanker operators to be proactive in
developing contingency plans. Chevron will keep its vessels out of restricted
waterways and either at dock or at sea when 1999 gives way to the new
millennium. A major area of difficulty in preparing for the Y2K problem is all
the things beyond a company's control. While a company can control its own
operations, it generally has suppliers who are integrated into its operations
through Electronic Data Interchange or other systems. Chevron has more than
12,000 suppliers for its shipping division alone.
Mr. Davies said Chevron has already spent $1.3 million on replacing functions
that are known to create problems with the Year 2000 switch. As an example of
the scope of inspections needed, on the first vessel Chevron audited -- the
Samuel H. Armacost, built in Japan in 1982 -- it examined 1,800 individual
subassemblies, of which six had active date displays that would have to be
changed and 122 had suspect sub-assemblies. Those findings are expected to be
repeated on 34 other vessels.
Chevron's case is just one example of the magnitude of risks for the transport
industry.
In deep trouble
"If you don't have your Year 2000 solution, you are in deep trouble," said
Andreas Hunziker, who heads solution efforts for Swiss global freight forwarder
Danzas -- with operations in more than 50 countries. Danzas began its Year 2000
efforts in 1996, and argues that it started none too soon.
"I think the year 2000 for a lot of us is already here," Mr. Hunziker told
participants at a Year 2000 conference in Miami put on by Britain's IBC UK
Conferences Ltd. and sponsored by The International Group of P&I Groups, the TT
Club, ITIC and the BIMCO International Chamber of Shipping. Citing an example,
the Danzas executive said some of its automated warehouses began rejecting food
products that had expiration dates ending in 00. Among Danzas' chief concerns is
seeing that its refrigerated warehouses the world over do not lose their
temperature controls due to the millennium bug. "This is very crucial for us,"
he said. The private sector is not alone in its risks. Among those moving
aggressively to address potential problems is the Virginia Ports Authority.
Because almost all aspects of running a modern port involve automation aided by
embedded computer chips, there is potential for problems in everything from
security gates and sensitive information stored in computers, to malfunctioning
of multimillion-dollar sophisticated cranes.
In hardware, everywhere "We found it in the computer hardware, we found it in
the computer software and we've found only one embedded chip (that needed
replacing) on a crane," said Ed Capps, the chief information technology
specialist for the Virginia Ports Authority.
The port has replaced 200 computer work stations and is working with carriers
to ensure there are no problems with electronic data interchange. Port officials
do not expect major risks to operations, but they worry about an equally
important function -- collecting money from carriers. "We think delayed payments
is probably going to be the biggest thing," said Mr. Capps. Detaining ships is
not an attractive option, he said. Even before the millennium arrives, lawyers
are chomping at the bit to litigate. The Y2K issue opens up a number of avenues
for costly litigation, and raises legal threats in almost all aspects of
business.
For example, most software applications are licensed and cannot be modified.
However, failing to modify an application to prevent potential Year 2000
problems could leave a company liable for a lawsuit for failing to prepare for a
potential operational disaster. "No industry is going to be immune from this
one," predicted Chris Gooding, an attorney with the firm of Leboeuf, Lamb,
Greene & MacRae. "In liability terms, the dynamics are already in place."
Companies are spending upwards of $250 million to $400 million to correct the
Y2K problem, but face a tough decision in whether to cooperate with suppliers.
If they cooperate, they run the risk of losing legal advantage should problems
result and the matter end up in court.
Urging cooperation, Mr. Gooding said that companies of all sizes should put in
place procedures for assessing their own Year 2000 risks and document them
fully.
Get the paperwork
"Make sure that every aspect of that plan is properly documented, because (if
not) that is what will kill you in court," he said. Even after implementing
their Year 2000 plans, many companies are expected to litigate to recover costs,
going after suppliers, vendors, software companies and a host of others involved
in the information-technology chain.
"That's going to be one of the most hard fought issues around the world," the
attorney predicted. Ending a speech by quoting Clint Eastwood, Mr. Gooding
warned companies to be proactive or expect lawsuits.
"Do nothing. Make my day."
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