Drawing on our Human Capital
The health, safety and behaviour of our employees underlies every aspect of how we operate. They
are driven by policies, procedures, a team culture and efforts to continually improve how we conduct
ourselves in our business at sea and onshore. Providing healthy work conditions, a safe and supportive
environment and opportunities to advance and develop within the Company are key to the well-being
and fulfilment of our staff and the success of Pacific Basin.
We strive to be the employer of choice for our existing staff and for talented
potential employees in our industry. We are passionate about our people
and do what we can to provide our multi-national colleagues with a safe,
supportive, enjoyable and fulfilling working environment.
In-house Ship Management Expertise Ensures
Safety & Quality at Sea
As ship owners, our service reliability is enhanced by an
innovative and comprehensive in-house technical ship
management capability that assures the quality of our large
fleet of owned ships and growing number of seafarers, while
also driving our sector-leading safety and environmental
Our experienced team of ship managers provide dependable
shore-based support to our fleet so that our seafarers can
manage our ships with a strong safety culture and meet the
specific needs of our customers.
Our shore-based and ship-board teams work together to
ensure operational readiness and service reliability of our
ships at all times, as well as compliance with classification
society and flag state rules, environmental regulations and
all other local and international laws and regulations. Their
combined efforts are key drivers of stakeholder satisfaction
and our Pacific Basin brand value.
Our comprehensive technical ship management function
- Newbuilding ship design input and contracting support
- Newbuilding supervision
- Technical support for ship sale and purchase activities
- Technical and crew management of ships
- Marine & safety quality management and superintendence
- Regulatory compliance
- Dry docking supervision
- Safety & security assessments and training
- Internal/external audit corrective action implementation
We operate our own Pacific Basin crewing and training
centres in Dalian and Manila where our crew recruiting,
training and management activities are based. Our pool of
3,000 seafarers are mainly from China and the Philippines,
and some of our officers are from Russia and Ukraine (FSU)
and Hong Kong.
We believe that the right investment in our employees – both at sea and ashore – does much to increase safety, knowledge,
productivity and contribution, and promote a deeper sense of belonging across our organisation. That investment in our
employees and their engagement broadly addresses the following areas:
- Health & Safety
- Training & Development
- Labour Standards & Workplace Conditions
- Diversity & Equal Opportunity
- Responsible Business Practices
- Responsible Procurement
Health & Safety
We put safety first at all times. Our Pacific Basin Management System provides clear policies and procedures for our ship
and shore staff to follow and mechanisms for us to analyse our performance and facilitate improvement, with one main
Promoting and ensuring safety at sea and prevention of human injury or loss of life
Our HSEQ policy and our Pacific Basin Management System embody a number of broad actions designed to achieve this
- We employ and train qualified seafarers in accordance
with requirements of flag state and STCW (Standards of
Training, Certification & Watchkeeping) Convention
- We have implemented risk assessment systems to
review all identified risks to our ships, personnel and the
environment, and to identify and establish appropriate
safeguards and practices
- We seek to continuously improve quality, health & safety
and environmental performance and management skills of
personnel ashore and at sea, through a system of audits,
analysis and feedback
- We keep personnel appropriately informed of HSEQ
matters by circulating pertinent information and providing
- We provide a safe and healthy work environment and
ensure the welfare of the staff
- We enforce a drug and alcohol policy on board our ships
and ensure all watch-keeping personnel undergo drug
and alcohol tests before embarking on any of our vessels
- We conduct anti-piracy training, follow best practices and
adhere to Internationally Recommended Transit Corridor
mandates covering areas threatened by piracy attacks
People-focused Safety Innovation
We constantly strive to enhance our safety culture with commitments from senior management ashore driving this safety
mind-set across our organisation and fleet.
Our commitment to safety is manifested not only through our proactive Pacific Basin Management System, but also through
innovative proprietary initiatives and significant investment in seafarer training at sea and ashore to standards exceeding
mandatory requirements, resulting in safety performance metrics (KPIs) that are among the best in the industry.
Some of our established home-grown concepts and programmes that seek to maximise our crews’ engagement and risk
mitigation and safety performance include:
- Our “22 Crew, 22 OwnersTM” concept to empower our teams at sea
to manage our vessels – and think like owner/managers – with a
proactive safety culture
- Five focus areas to “Make Complacency History” (see side bar)
- “5 levels and 5 rules of leadership” to influence and develop staff on
board to lead by example and inspire colleagues to follow
- “Zero defects in external checks through good self-checks” using our
paperless “3W” risk assessment prior to each task
- Crew rest periods after tiring operations (even if delaying a ship’s
departure) to reduce the risk of fatigue and stress-related accidents
- Our “Zero Lost Time Injuries” programme including enhanced prejoining
and on-board training, and monthly alerts to the fleet with
reminders of earlier injuries sustained on our ships
- Analysis of industry and internal incidents and near-misses to learn
from one’s own and other people’s mistakes (OPM)
- Near-miss reporting generating valuable advice to help our seafarers
avoid similar occurrences in the future
- Providing our teams at sea with the best and most understanding
shore-based support with a ratio of one former Master or Chief
Engineer ashore for every two ships in our owned and finance-leased
“Make Complacency History”
We highlight five focus areas in our campaign
to eradicate complacency across our fleet,
- Safety of Crew
= Zero Lost Time Injuries
- Safety of Environment
= Zero MARPOL violations
- Safety of Navigation
= Zero navigational accidents
- Safety of Machinery
= Zero issues from improper overhaul
- PB Brand & Business
= Zero issues from neglect of care and
This campaign has been expanded to engage
with our seafarers’ families through family
newsletters and informal participation during
our regular safety seminar dinners and through
our family welfare officer in our recruitment
centres for a more holistic and effective
Health & Safety Performance in 2016
We have steadily reduced our Total Recordable Case Frequency by an
average of 6% per year since 2004.
In 2016, we recorded near record low total injuries and
injury frequency on our ships, most arising from relatively
minor slips, trips and falls.
Our total recordable case frequency (TRCF) reduced
18% to 1.32 in 2016, and we have steadily reduced our
TRCF by an average of 6% per year since 2004.
Our lost time injuries frequency (LTIF) improved
marginally year on year, having registered 15 such
injuries in 2016.
Our aim is to substantially eliminate our personal injury
incidents and to improve on our best ever LTIF result of
Our safety performance is driven by effective policies and
procedures in our Pacific Basin Management System and
a comprehensive programme of seafarer training and
development at sea and ashore.
We have responded by reinforcing our established safety
programme with a campaign to target “Zero Lost Time
Injuries” which includes enhanced pre-joining and on-board training, and monthly alerts to the fleet with reminders of injuries
sustained on our ships. Our “Make Complacency History” campaign now reaches out to our seafarers’ families for a more
holistic and effective approach.
Very sadly, one of our deck cadets died in February 2016 from a fall overboard while assisting with the lashing of deck cargo
in the port of Tauranga. The main lesson learned from this fatal accident was that crew must attach their safety harness
to a fall arrestor while working close to the edge of the cargo stack in accordance with our company requirement to do so.
The lessons were well noted and steps were taken to mitigate the risk of a repeat of such accident and to ensure that the
Company’s Safety Management System and our safe working procedures are strictly adhered to on all our vessels. In its
report on the accident, the Transport Accident Investigation Commission of New Zealand (TAIC) endorsed our follow-up
safety actions which they said negated their need to make any recommendations. We sincerely regret and were deeply
saddened by the accident, and our thoughts continue to be with the family of the deceased cadet.
We aim to achieve an inspection deficiency rate of less than 1.0 by maintaining our ships
to a high standard, as assessed by external Port State Control (PSC) inspections.
In 2016, our average deficiencies per inspection improved by 19% to 0.74.
72% of our Port State Control inspections found zero regulatory deficiencies (2015:70%).
These results are among the best in the industry, especially considering the scale of our
activity in the Far East where defects are typically raised in larger numbers.
We sustained no navigational accidents in 2016. Our navigational performance has benefitted from an extensive
engagement exercise which collected wide-ranging feedback from our ships’ officers and managers as well as companyspecific
Bridge Team Management training for all our navigating officers, which we introduced in 2013.
We encourage near-miss reporting which in 2016 accounted for 783 reports (2015: 539) through which officers and crew
described safety incidents and near-misses, however minor, which serves as a valuable tool for the prevention of injury and
Staff wellbeing ashore
We believe that exercising and staying fit is very important for all of us. In 2017, we will implement a global health, well being
and fitness initiative to encourage our staff to be more physically active and spend more time outdoors.
Award-winning Safety Culture & Performance
We frequently receive industry recognition
for our commitment to and performance in
safety and related areas.
In June, we won the Hong Kong Marine Department’s “Best Performing Ship
Management” award for outstanding performance in global port state control
inspections – for the eighth time in nine years.
In September, we won the Safety Award at the Lloyd’s Global Awards 2016.
Operating in a highly regulated industry
Our workplace safety, health and engagement metrics follow best practices as defined by the industry and our peers.
Shipping is a highly regulated industry and Pacific Basin meets all minimum requirements and in some cases exceeds
requirements determined by local, regional and industry mandates and customer expectations.
Our commitment to Safety is manifested through (a) a proactive Pacific Basin Management System, (b) innovative homegrown
initiatives and significant investment in seafarer training at sea and ashore to standards exceeding mandatory
requirements, and (c) KPIs that are among the best in the industry.
Our Pacific Basin Management System ashore and at sea conforms to the mandatory International
Safety Management (ISM) Code. It is also certified by Lloyd’s Register Quality Assurance (LRQA) to
voluntary standards, including:
- ISO 9001:2008 for our quality management system
- ISO 14001:2004 for our environmental management system
- OHSAS 18001:2007 for our occupational health & safety management system
Training & Development
We believe that our investment in the development and training of our staff at sea and ashore drives engagement, motivation
and retention of our staff and is key to maximising their safety and productivity.
High-performance teamwork at Pacific Basin is vital to our success. We
foster high crew standards and teamwork at sea, and our shore-based
technical and operations managers are experienced former ship captains
and chief engineers. This encourages a culture where problems are shared
openly and officers can rely on the very best, consistent support from
Employees at Sea
We train our seafarers to standards equal to or exceeding those required by the International Maritime Organization’s
International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (or STCW).
This significant investment we make in seafarer training at sea and ashore drives our safety and external inspection
performance indicators which are consistently among the best in the industry.
Here are a number of training and development investments we make to ensure a class-leading safety culture, service
delivery and workplace fulfilment:
- We host at least four officer training seminars annually
at our crewing centres in Manila and Dalian. Through
these two-day events, we engage with our “on-board
managers” to reinforce our company policies, practices
and values, review regulatory changes and industry
developments, share safety and navigation-related
experiences, and analyse industry incidents and develop
preventive measures with the involvement of our crew and
- We conduct enhanced pre-joining briefings for all our sea
- Our experienced Masters and Chief Engineers voluntarily
run training seminars for our ratings whilst both teachers
and students are on shore-leave.
- Our senior crewing managers review all staff’s training
needs during appraisals to ensure skill gaps are identified
and plugged and further development training is on offer.
- We have run officer cadet recruitment and training
schemes in our crewing centres in China since 2005, the
Philippines since 2010 and in Hong Kong since 2013.
- We train between one and four officer cadets on each of our ships.
- We employ Marine & Safety Managers and Training
Managers ashore who conduct fleet safety inspections,
navigation audits and pre-joining briefings and provide
shore-based support on marine and safety issues to our
- In addition to our Marine & Safety Managers ashore, we
deploy 8 Fleet Training Managers to sail periodically on
our owned vessels and offer our crew on-the-job training.
- Our in-house technical department communicates shorebased
advice and support to our ships’ staff to enhance
the safety of our operations at sea and the consistency of
our service quality.
- We review incidents and near-misses, analyse root
causes and develop and implement preventive measures,
all of which we communicate back to our ships.
- We promptly notify our ships of relevant regulatory
changes and industry developments.
- We circulate monthly alerts to our fleet with reminders
of lessons learned from past accidents and injuries
sustained on our ships.
- Some of the investments we make in non-STCW training
on-board, in classrooms and via computer include regular
simulator-based training in Bridge Team Management and
the types of ECDIS (Electronic Chart Display Information
System) fitted on our ships, and Maritime Resource
Management, in partnership with the Swedish Club. We
cultivate leadership qualities through MRM training for
both our shore-based and on-board managers, because
we believe the success of our safety management system
depends on the trained skills of our managers and how
these leaders approach our safety management system’s
implementation at sea, on shore and at the ship-shore
- Our crew conferences, training seminars and cadet
programmes offer a clear path of career advancement
within the ranks of our crew.
Ashore, we make a concerted investment in staff training
and leadership development at all levels of the organisation,
which has resulted in enhanced productivity, engagement,
loyalty and retention and a strong foundation for our
succession planning. That investment ashore broadly takes
the following forms:
- Independently-run classroom and seminar-based training
- On-the-job training, site visits and company visits
- Understudy programmes for young executives
- Social and team-building exercises promoting highperformance
teamwork and a culture of high standards
- Leadership and management training for high-potential
employees identified as future leaders
- Training in specialised management tools
- Group-wide intranet connectivity, instant messaging and
web-based video supporting real time information sharing
The Company has a healthy budget for training and
development of shore-based staff, of which typically more
than half receive some form of external training each year
provided by local trainers or leading business schools
Our recruitment and training of international graduate and
other young recruits in recent years has armed our teams
with keen, talented executives who are now demonstrating
their value in our offices around the world. In 2016, 12
young staff members attended our structured three-month
trainee programme in which trainees cycle through our
various departments, travel on ships, visit dry-docks, spend
time with our shipping agents, shipbrokers and customers,
and receive an in-depth experience in all facets of dry bulk
Labour Standards & Workplace Conditions
Through the commitment we make to our crews’ training, safety, motivation
and overall job fulfilment, we benefit in return with increased retention of
high-quality, loyal seafarers and safe operations.
Our labour standards, human rights practices and workplace
conditions adhere to all conventions where our ships trade
and our offices are located.
Our labour policies and minimum standards are determined
with reference to the conventions of the International Labour
Organization (ILO) – the United Nations agency that shapes
policies to promote decent working conditions for seafarers
and other workers.
These ILO conventions relating to seafarers have been
consolidated into a single, coherent instrument – the
Maritime Labour Convention 2006 (“MLC”) – which has
been ratified by China and Hong Kong and has been
incorporated in Hong Kong flag state legislation under Hong
Kong CAP478 Merchant Shipping (Seafarers) and other
ordinances. As such, the conventions are mandatory for us
to follow in respect of our Hong Kong-flagged dry bulk ships.
Where ILO conventions have not been ratified by our flag
state, we voluntarily comply with or exceed the requirements
of such conventions by way of a Collective Bargaining
Agreement (“CBA”) with the International Transport
Federation (“ITF”)-affiliated seafarer unions. Pacific Basin
was actively involved in drafting the current Hong Kong flag
state CBA which applies to all Hong Kong employers of
seafarers under the ITF.
We modernised our ship communications in 2016 with KVH’s
mini-VSAT broadband service with enhanced data transfer
to facilitate ship-to-shore crew training and support, and to
enable our seafarers to stay in touch with family and friends.
Seafarers’ Bill of Rights
The Maritime Labour Convention 2006 (MLC) is an
international agreement of the International Labour
Organisation (ILO) which sets out seafarers’ rights to
decent conditions of work.
More than 100 pages long, the MLC 2006 sets minimum
requirements for nearly every aspect of working and living
conditions for seafarers such as:
- freedom from forced labour
- minimum age
- prevention of child labour
- conditions of employment
- hours of work and rest
- occupational safety & health
- health protection & medical care
- payment of wages
- annual leave & repatriation
- accommodation, food & catering
- social protection
- right to collective bargaining
Our compliance with ILO conventions and CBA terms is
audited by Port State Control inspections
Ashore, our offices adhere to all relevant local workplace health and safety and related codes, offering our employees
a safe, comfortable and productive work environment. This includes good lighting and air conditions, and ergonomic
We encourage a healthy balance between family life and work.
We keep our employees engaged through newsletters,
information circulars, town hall meetings, an open-door
policy, and multiple means of staying connected through
a group-wide intranet, instant messaging and video
Diversity & Equal Opportunity
We take pride in the diversity of our staff – including the
diversity of cultures and age that exists among our shorebased
staff comprising executives of 27 nationalities.
The gender and age distribution of our shore-based
workforce is well-balanced.
31% of our shore-based staff have worked for Pacific Basin
for over 10 years, which is testament to the job fulfilment at
Pacific Basin over a period of significant growth.
Our high officer and crew retention rate speaks volumes
about the job fulfilment we offer our seafarers.
We are caring, good humoured and
fair, and treat everybody with dignity
and respect, encouraging diversity
of opinions and cultures.
Responsible Business Practices
In the pursuit of our vision, mission and objectives, we always seek to apply sound and internationally accepted business
ethics and principles.
Our business principles cover a range of tenets and traits designed to maximise the trust, respect and friendship between
the Company and its stakeholders, highlighting the fairness and responsibility with which we approach our business.
Our Vision, Mission & Business Principles
is to be a leading ship owner/operator in the dry bulk shipping space, and the first choice partner for customers
and other stakeholders.
is to be the best in our field by continuously refining our business model, our service and our conduct in
everything we do.
that dictate our behaviours and actions:
- We are passionate about our customers, our people, our
business and our brand
- We honour our commitments and value long-term
- relationships over short-term gain
- We offer a personalised, flexible, responsive and reliable
service, and we look for ways to make it easier to do
business with us
- We target excellence and success through dedication
and teamwork, and we see everyone in Pacific Basin as a
- We take a sustainable business approach and promote
high standards of safety and environmental stewardship
- We are caring, good humoured and fair, and treat
everybody with dignity and respect, encouraging diversity
of opinions and cultures
Our Code of Conduct prohibits our staff from offering or accepting bribes or engaging in fraud, forgery, collusion, anticompetitive
behaviour or other forms of corruption.
We require our staff to abide fully by local anti-corruption laws such as the Prevention of Bribery Ordinance under Hong
Kong law for staff in our Hong Kong headquarters. Similar anti-corruption laws (such as the UK Bribery Act 2010) and
expectations apply to all our staff around the world.
We provide anti-corruption seminars run by external trainers for our Hong Kong staff on a rotational basis.
We were not in 2016, are not currently and have never been involved in any legal cases regarding corrupt practices.
We are committed to providing a
workplace free of dishonest, illegal
or discriminatory activities. As part
of our efforts in this area, we have
whistle-blowing procedures in place
for seafarers, shore-based staff and
external stakeholders to raise serious
and genuine concerns, in confidence,
following procedures that are published
on our intranet (for our shore-based
staff) and on our website (for external
We operate in highly competitive and
fragmented markets and we do not
collude with competitors or otherwise
cooperate in a covert manner to gain
unfair pricing advantage. The size and
market share of our dry bulk fleet and
the nature of our dry bulk freight activity
are deemed not to breach competition
regulations in any markets in which we
Our ships operate globally and
we engage in trades that comply
with international laws and do not
contravene international trade
sanctions or relevant local or national
Our customers are required not to ship
illegal goods on our vessels, and our
global chartering organisation follows
the key rule of “knowing your customer
and their business” which enhances
our understanding of their cargo.
Our customers are mainly reputable,
blue-chip organisations who we know
well. For newer potential customers, we
may seek advice on their background,
verbal and written references, formal
counterparty risk appraisals, and we
check if they appear on US, UK, EU
and UN sanction lists.
We also consider where voyages are
from and to, and monitor the layers of
sanctions prevailing around the world
so as not to risk exposure to criminal
There are also safety nets that give
us additional comfort that trades we
engage in do not violate relevant laws.
Importantly, banks do not provide
letters of credit or finance to, or
otherwise transact with, customers if
the cargo or trade breach sanctions,
thus preventing the customer from
executing a freight contract with us. A
second check arises when the cargo
and/or freight invoice is payable,
at which point banking systems
automatically vet the countries
and counterparts involved in the
We know our customers
and their business
and adhere to trading
practices that follow the
letter of local, regional
Our Pacific Basin Management System manual requires
that, in all but some exceptional circumstances, stores and
spares for our fleet are purchased from approved suppliers
who are vetted before approval and reviewed at regular
Our selection and continued support of suppliers is heavily
influenced by the outcome of our reviews of their and their
products’ performance affecting occupational health, safety,
quality and the environment.
Examples of vetting criteria we require of our suppliers and
subcontractors include, as appropriate:
- Certification to a recognised international standard
- Approval by regulatory authorities
- Authorised agents or original equipment manufacturers,
Membership of a reputable organisation such as
International Ship Suppliers Association (ISSA) or the
International Marine Purchasing Association (IMPA)
In 2016, our procurement department’s list of vetted
suppliers numbered approximately 240, of which over 160
suppliers were evaluated or re-evaluated in 2016.
Similarly, we purchase bunker fuel only from reputable
and reliable suppliers, most of whom we have long term
relationships with. We vet our bunker suppliers at least
annually checking their financial position through website
searches and through our network of contacts and other
resources in the bunker and shipping industry.
We source no more than 30% of our annual fuel needs from
any single supplier. We sourced over 80% of our fuel from 11
major bunker suppliers in 2016. The remainder was sourced
from about 15 smaller suppliers for spot bunkering in remote
Award-winning Safety & Quality at Sea
The history of our technical team stretches back well beyond the founding of Pacific Basin, as many of our technical
management colleagues served at the venerable Jardine Ship Management which we acquired in 2000. Drawing on our
technical team’s combined experience, a safety-first ethos and the prudent rules and guidelines enshrined in our Pacific
Basin Management System, we are proud to be the stewards of best practices in technical, safety, quality and CSR
management. We frequently receive industry recognition for our commitment to and performance in these areas, as well as
other areas such as corporate governance and investor relations.
In 2016, we won three top global and regional industry awards for safety and best dry bulk ship operator including:
Lloyd’s List Global Awards 2016
Seatrade Maritime Awards Asia 2016
Lloyd’s List Asia Awards 2016
- Dry Bulk Operator of the Year
Hong Kong Marine Department Award
- Outstanding performance in Port State Control Inspections
Some notable other awards in recent years include:
- Best CSR Award at Asian Excellence Recognition Awards 2015
- Safety Award at Lloyd’s List Global Awards 2014 and IBJ Awards 2013
- Shipmanager of the Year and Environment Award at Lloyd’s List Asia Awards 2011
- Environment Award at Lloyd’s List Global Awards 2011 and IBJ Awards 2012
- Seafarer of the Year at Lloyd’s List Global Awards 2011 (Captain Zhu Qianchun)
- Hong Kong Marine Department award for Outstanding Performance in Port State Control Inspections
(eight times in the past nine years)
- Shipping Company of the Year at BIMCO Awards 2014
- Ship Operator Award at Lloyd’s List Awards Asia 2015 and Global Awards 2013