4 common cost traps when buying life saving equipment

You may think that finding the lowest price for life saving equipment is the best way to optimize costs. In reality, the listed price is only “the tip of the iceberg”. Beneath it lie hidden expenses that can quietly drain your budget and delay vessel operations.

This article highlights four hidden cost factors that many shipowners and agents have faced when procuring life saving equipment.

Costs from substandard life saving equipment

Many shipowners opt for cheaper life saving equipment to reduce initial expenditure. However, experience shows that products priced suspiciously low often lack clear provenance and have not undergone inspection or testing in accordance with international standards.

After only a short period of use, such safety equipment may suffer mechanical failure, loss of buoyancy, or complete inoperability during an emergency. Repairs or replacement become inevitable, leading to unforeseen expenses.

The International Maritime Organization (IMO) has warned of the widespread presence of counterfeit and substandard life saving appliances on the market. These products may be inexpensive, but they pose serious safety risks as they have not passed stringent testing.

Even more concerning, there have been cases where used or expired equipment from ships – such as lifejackets, lifejacket lights, smoke signals, and lifebuoy lights – were stripped of original labels, cleaned, and re-labeled with false manufacturing and expiry dates.

(Reference: Awareness of Counterfeit and Substandard Life-Saving Appliances)

Detecting and replacing substandard life saving equipment results in a range of costly consequences:

• Emergency replacement and transport costs to deliver compliant equipment to the port.
• Losses from vessel detention or delays: lost revenue, contract penalties, and increased port charges.
• Legal fees and administrative fines (depending on national regulations).
• Higher insurance premiums or difficulty claiming insurance if genuine equipment cannot be proven.
• Re-purchasing compliant equipment and disposal costs for confiscated items.
• Safety and human life risks — immeasurable in monetary terms but the most significant loss.
• Reputational damage, causing loss of client and partner trust, and jeopardizing long-term contracts.

In the United States, maritime safety laws and regulations allow for civil penalties that can reach tens of thousands of dollars, depending on the violation and statutory authority. In certain cases, violations of a Captain of the Port (COTP) order can result in particularly high penalties.

For example, under the Notice of Violation (NOV) guidelines, failure to equip a life float with the equipment specified in 33 CFR 144.01-10 may incur penalties starting at USD 500 (first offense), USD 3,000 (subsequent offenses), and up to a maximum of USD 30,000.

Compared to the initial investment in certified equipment, the cost of rectifying such issues is often several times higher. Beyond financial loss, the greatest risk remains the safety of the crew when equipment fails during an emergency.

Solution: Partner with a reputable supplier who can provide verifiable documentation of origin, valid certification, and clear warranty policies. A reasonable investment upfront ensures safe and stable vessel operation and helps avoid severe future losses.

Costs arising from missing documentation or certification of life saving equipment

When purchasing life saving equipment, many shipowners focus solely on product quality while overlooking the accompanying legal documentation. The absence of valid certificates does not necessarily mean the product is counterfeit or substandard, but it can still lead to costly consequences.

External factors:

• Delays from manufacturer or classification society: Some equipment may meet required standards, but approval documents or certificate copies are not yet finalized, especially for imported products.
• Differences in regulatory requirements: Equipment certified under the EU MED standard may require additional USCG approval (see USCG CG-ENG-4, Marine Equipment Approvals) or CCS certification before being accepted on vessels flying other flags.
• Sudden changes in technical standards: Regulatory updates can render existing certificates invalid just before an inspection.

Internal factors:

• Procurement teams fail to verify documentation upon receipt, leading to installation of equipment without complete paperwork.
• Certificates lost during transportation, storage, or handover.
• Delays by the shipowner in completing registration procedures, especially for equipment requiring classification society endorsement before use.

Hidden costs that may follow:

• Urgent re-issuance of certificates or manufacturer/classification society verification, often involving high service fees and expedited international shipping costs.
• Vessel detention or departure delays during Port State Control (PSC) inspections requiring immediate documentation, resulting in revenue loss, contract penalties, and increased berth charges.
• Legal fees and administrative fines: Some jurisdictions (e.g., Japan and South Korea under the Tokyo MOU framework) impose specific penalties for failing to present valid certification.
• Costs of hiring surveyors or technical experts to verify compliance in the absence of original documentation.
• Increased insurance risk: Insurers may deny claims or raise premiums if compliance at the time of incident cannot be proven.
• Reputational damage: Loss of trust from partners and clients when the vessel is repeatedly flagged for deficiencies in PSC reports.

Improper installation of Life saving equipment

Many shipowners and agents assume that the risk of improper installation of life saving equipment only arises during the physical installation process. In reality, the root cause can often be traced back to procurement decisions:

• Purchasing non-compatible equipment: For example, buying a lifeboat and a launching appliance from two different suppliers without verifying compatibility. This can lead to modifications or “on-site adjustments” during installation, causing misalignment, imbalance, or incorrect release forces.
• Missing required equipment and accessories: Lifejackets, lifebuoys, liferafts, and lifejacket lights are mandatory under the SOLAS Convention for seagoing vessels. If any are missing, the installation cannot be approved, forcing urgent and costly additions that may delay vessel delivery.
• Lack of original technical documentation: Some low-cost or refurbished units are delivered without proper manuals, drawings, or wiring diagrams. Installers may have to rely on guesswork or prior experience, leading to incorrect configuration.
• Use of non-compliant spare parts: When sourced from non-authorized suppliers, certain components may be replaced with “equivalent” parts that do not meet the original design, resulting in dimensional mismatches or incorrect specifications.

Hidden costs that may follow:

• Emergency repair or replacement: Hiring manufacturer-certified technicians to travel to the port for urgent corrections, plus related transportation and logistics expenses.
• Vessel detention: Discovery of improper installation during Port State Control (PSC) inspections or statutory surveys can lead to detention, voyage delays, lost revenue, and contract penalties.
• Reputational and contractual impact: Clients and charterers may perceive the operator as lacking operational competence, affecting future business opportunities.

Inadequate training and poor after-sales support

Even when purchasing life saving equipment that meets international standards, hidden costs can still arise if the crew is not properly trained or if initial technical support is lacking. Common underlying causes include:

• Equipment delivered without complete technical documentation (manuals, drawings, checklists).
• No requirement for commissioning or crew training certificates.
• Supplier provides no remote technical assistance during installation.
• Omission of operational demonstrations or post-installation inspections.

These gaps can lead to improper operation, damage to the equipment during drills, or failure to meet the requirements of routine statutory inspections.

Hidden costs that may follow:

• Additional expenses for urgent crew training or manufacturer commissioning after issues are detected.
• Voyage delays or detentions during Port State Control (PSC) inspections if crew competence cannot be demonstrated.
• Replacement or repair costs when equipment is damaged due to incorrect operation.
• Long-term reputational impact if clients and charterers consider the vessel poorly managed or unsafe.

If you want to avoid these hidden costs and ensure your vessel is always PSC-ready, don’t hesitate to contact MARICO for tailored advice on selecting life saving equipment in Vietnam that matches your operational reality.

We guarantee product quality, valid certification, and full supporting documentation.