1. INTRODUCTION
Recently, the Tokyo-MOU issued a press release announcing revisions to the performance calculation methods for Flag States and Recognized Organizations (ROs). These performance results will be used in the Tokyo-MOU's annual report and will serve as a core basis for the new National Inspection (NIR) mechanism to determine vessel risk profiles and conduct vessel selection inspections. This will have a significant impact on port state control vessel selection and the performance ratings of Flag States and classification societies in the Asia-Pacific region. Shipping companies, ship management companies, and classification societies need to pay close attention to these changes in the rules' timelines.
2. NEW FLAG STATE AND RO PERFORMANCE RATING CALCULATION METHOD.
PART 1
The new rules adopt a model that compares the detention rate with the regional average detention rate, and divide the flag state/RO performance into three levels: high, medium, and low.
Standardized grading criteria for routine samples (sufficient testing volume)
- Retention rate < regional average retention rate: performance level is high;
- Regional average retention rate ≤ retention rate < 2 times regional average retention rate: Performance level is medium;
- A retention rate ≥ 2 times the regional average retention rate: performance level is low.
Data statistics period
Generally, inspection retention data from the most recent three complete calendar years are used. There are special arrangements for the transition period in RO performance calculation: in the two years prior to the implementation of 2027 and 2027-2028 data, a complete three-year statistical cycle will not be performed.
Explanation of statistical definitions
For the same vessel, regardless of the number of detainable defects found during a single inspection, only one detention will be counted for the corresponding flag state or RO.
Small fleets/flag states with low inspection volumes, RO special handling rules
If the total number of inspections by the flag state or RO within the statistical period is lower than the critical inspection number (critical value = 100 ÷ regional average detention rate), a simplified judgment applies:
- No records of any delays during the statistical period → High performance;
- One instance of delay within the statistical period → Performance evaluation in progress;
- Two or more instances of being stranded within a statistical period → low performance.
3. KEY CONCEPT CHANGE: "RELATEDRO" REPLACES "RESPONSIBLERO".
PART 2
In calculating RO performance, the Tokyo memorandum will use Related RO instead of the original "Responsible RO" as the rating basis.
What is "Relevant RO"?
When an inspection reveals deficiencies that can be retained, and the most recent issuance or endorsement of that certificate was completed by a RO (Responsible Authorities), that RO is identified as the relevant RO for the deficiencies. Specific certificate matching relationships are based on the "Backgroundtable" published on the Tokyo Memorandum website.
Additional notes: Existing "Responsible RO" data will continue to be collected, but will only be used for internal business analysis within the Tokyo Memorandum and will no longer be used externally for RO performance calculation and rating.
4. IMPLEMENTATION TIMELINE (KEY MILESTONES)
PART 3
New rule data collection started: 2027-01-01
From January 1, 2027, for all initial PSC inspections, once a detainable defect is identified, the Port State Control Inspector (PSCO) will need to refer to the Background Table, select the statutory certificate associated with the defect, and complete the data entry and collection for the "Relevant RO".
The data collection process for flag states will remain unchanged.
Performance release and NIR ship selection activation schedule
Around May 1 each year, the Tokyo Memorandum releases updated flag state and RO performance results in its annual report; starting July 1 of the same year, this set of performance results is officially applied to the calculation of the NIR vessel risk profile under the new inspection mechanism, guiding member states in selecting vessels for inspection by their PSCs.
Initial Implementation Transition Arrangements (2027 Performance)
Flag State Performance Statistics: 2025-01-01 to 2027-12-31 (three-year cycle).
RO performance statistics: January 1, 2027 to December 31, 2027 (only single-year data is used during the first year of the transition period).
Performance to be publicly announced: Tokyo Memorandum Annual Report around May 2028.
Officially put into use for NIR vessel selection: 2028-07-01 and thereafter.
Note: For international vessels arriving at port after July 1, 2028, the risk will be calculated according to this new flag and RO performance algorithm, which will directly affect the probability of being selected for inspection by the PSC.
5. TIPS AND SUGGESTIONS FOR SHIPPING STAKEHOLDERS
PART 4
Ship management companies and ship owners:
Pay attention to changes in the ship's flag state and class RO performance rating, as the performance rating directly alters the ship's NIR risk attribute and affects the probability of PSC inspections at Asia-Pacific ports.
Classification societies (ROs):
Starting in 2027, certificate issuance/endorsement records will be directly linked to performance statistics to strengthen quality control in the issuance, renewal, and endorsement of statutory certificates and reduce delays caused by certificate-related defects.
International vessels arriving at port:
Conduct thorough pre-departure self-inspections, focusing on verifying the validity of legal certificates and preventing potential defects that could lead to delays.
PSC professionals:
Be familiar with the concept of "RelatedRO" and the requirements for using "Backgroundtable", and strictly follow the new requirements to complete the on-site inspection data entry starting in 2027.
Find the Press Release below.
For any questions or further assistance, please do not hesitate to contact us at regulatory@phrs.co.com