Subchapter M ushered in a new era for safety on US inland waters. It outlined requirement for towing vessels to improve the overall safety of marine transportation on inland water. Subchapter M compliance began with the publishing of the rule in July 2016 with a phased implementation approach and a requirement for all vessels to hold a valid Certificate of Inspection (COI) by July 2022.
These United States Coast Guard, USCG towing vessel regulations outlined requirements for crew competence, better office oversight of vessel management, equipment standards and requirements for emergency preparedness. Subchapter M requirements 2026 have not changed since inception, however, there has been much additional guidance on interpretation of requirements published by the USCG.
In the 90s and 2000’s, there was an increase in major incidents on inland waterways including collision of towboats & barges with other boats and allisions with shore infrastructure such as bridges resulting in fatalities and impact to the local economy. Studies cite 60–80%+ of incidents owe to human-system interface failure.
With the requirement in force the grace period is now over. These towing vessel safety regulations are now law via US Code and US CFR as outlined in 46 CFR Subchapter M.
TSMS vs. Coast Guard Inspection: Choosing Your Compliance Path
Vessel owners have two options to ensure compliance with the regulations. The two options include a TSMS option and Inspections by the USCG. There are pros to each and below is outlined the TSMS vs Coast Guard inspection options:
Option 1 (Coast Guard inspection): This consists of an annual inspection by the USCG within 3 months of COI anniversary. These are scheduled directly with the USCG and incur a fixed fee as outlined by the USCG. In this option each boat must get inspected each year. For owners with large fleets this cost can be high. These Coast Guard annual inspections are also dependent on USCG personnel availability.
Option 2 (TSMS): Using this option the vessel owner contracts with a USCG approved third-party organization (TPO) who must assess office and vessel operations and issue a TSMS certificate of conformity six months before the COI date. Under this option all vessels under the TSMS must be audited at least once in a 5-year period. Under TSMS costs can be lower and there is more predictable scheduling, but it requires the building of internal systems.
Penalties and Operational Risk of Non-Compliance
With the subchapter M rule in force, towing vessels cannot legally operate without a valid COI. Without a COI or a TSMS Certificate of conformity (on the basis on which a COI is effective), vessel owners can take a direct hit to their revenue because of Subchapter M penalties and downtime.
There is also the potential for marine insurance coverage and liability protection costs to be impacted because of the towing vessel compliance risk. More importantly though non-compliance bears an underlying risk of a vessel not operating to standards. This can lead to major onetime costs for an owner as a result of a major incident/accident on the waterway.
A system approach allows the owners to be aware of potential risks before they impact business and to proactively address them. There are also the intangible risks associated with impact to company reputation.
Lastly substandard vessels not complying with the 46 CFR subchapter M requirements can be detained by the USCG and prevented from operating until all issues have been resolved.
Building a Towing Safety Management System (TSMS)
A compliant TSMS does not start with the TPO showing up to audit, it starts with a gap analysis. TSMS development begins with comparing an operator’s existing procedures against what Subchapter M actually requires, which shows the office and vessels where they stand and what policy and procedure development still needs to happen before an auditor is ever involved.
From there owners build out the actual safety management system for towing vessels — policies covering navigation, mechanical and electrical systems, and towing operations, plus procedures for reporting near misses and hazardous conditions. Crew training has to follow, and it needs to be real familiarization on these procedures rather than a manual handed out and never opened, since Subchapter M puts a lot of weight on crew competence as part of the TSMS certification process.
Documentation and recordkeeping is really the backbone of a defensible TSMS. Auditors and the USCG want objective evidence — training records, maintenance logs, drill records, internal audit findings — that shows the system is being followed day to day, not just written down and filed away.
Once policies, training and documentation are in place, the operator runs its own internal audit before the TPO conducts the external certification audit. That relationship with the TPO does not end at certification — TSMS audit requirements call for periodic external audits going forward, with a full vessel audit at least once every five years and a management audit twice in that same five-year period.
Building a Towing Safety Management System from a blank page can take months, which is why most operators lean on ready-made templates over using a consultant to reduce costs. However, a poorly built foundation can kill a system over time. It results in too much documentation, additional burden for the crew and a system that only lives on paper.
This is where a partner like QMII fits in to help build a strong foundation with a system documented to fit the operational need, to reduce the compliance burden on the crew/office, and to provide valuable insights with their extensive maritime expertise. QMII helps to shorten the runway from initial gap analysis to a certified, audit-ready TSMS.
Designated Person Ashore: Roles and Certification Requirements
One of the key factors for success of a safety management system is the role the company management play in it. This includes the provision of resources needed for the system to be implemented well by the vessel crew. To enable this support the TSMS requires a Designated Person Ashore (DPA). This person is to be nominated by the company and must have a access to the highest level of management ashore.
The DPA has their own TSMS management responsibilities, acting as a shoreside link between vessel operations and management. They are responsible for monitoring safety and compliance of vessel operations across the fleet. The DPA is the person a captain or crew member can approach to escalate a safety concern, knowing it will not just get overridden by production pressure.
This is a role companies often underestimate until an audit finds gaps in how it actually functions day to day. DPA certification and TSMS management responsibilities training give the person in this seat a working knowledge of what the USCG and TPO expect to see documented, not just a title on an org chart.
For owners setting up a TSMS for the first time, or replacing a DPA who has moved on, QMII’s Designated Person training for this role is a natural next step. It helps provide those without prior DPA experience with the knowledge needed to execute in the role.
Auditor Training for Internal TSMS Oversight
Audits play a crucial role in assessing the state of conformity and the effectiveness of the system. Internal auditors conduct audits to provide insight to the leadership on potential risks that may catch them blindsided. While inspections and maintenance checks are regular occurrences, they do not assess the interaction of the processes and the interaction of the shore and the vessel TSMS.
Subchapter M outlines requirements for internal audits to be conducted once annually at a minimum and also identifies the criteria for internal auditors. TSMS auditor training for internal auditors includes them completing an ISO 9001 lead auditor course or equivalent. This maritime compliance auditor course helps auditors prepare for planning, conducting and reporting of audit results. Auditors must objectively assess the evidence they are given and draw conclusions based on factual evidence and not on opinions.
With over 40 years of experience in teaching auditor courses this is key distinction of QMII’s auditor training. QMII’s ISO 9001 auditor training meets the requirements of Subchapter M and teaching auditors to go beyond merely seeking conformity. Trained internal auditors can through internal audit towing vessel better assess the system effectiveness.
Maintaining Certification Through Ongoing Audits and Renewals
Getting the TSMS certificate is not the finish line, it’s the starting point for an ongoing compliance cycle. Once certified, operators must conduct annual internal audits plus the undergo the external audit cycle run by the TPO. A full vessel audit at least once in five years for each vessel and a management audit twice within that five-year window. Missing either side of that cadence puts the certificate, and by extension the COI, at risk.
Most compliance failures at this stage are not drastic, they’re just neglect. Documentation lapses, an internal audit that gets pushed back a quarter and then forgotten, a missed audit window because nobody was tracking the anniversary date. Crew turnover is another common one; a new captain or engineer who was never properly familiarized with the TSMS procedures.
The operators who stay ahead of this treat certification maintenance as a standing responsibility, not a once-a-year scramble before the TPO shows up. That usually means someone managing the audit calendar, keeping training records current as crew changes, and catching small gaps before they become findings. The Master should ensure this on behalf of the company.
This is also where ongoing training and consulting support earns its keep. Rather than relearning TSMS renewal requirements every time an audit window approaches, operators working with a partner like QMII can keep certification active on a predictable schedule instead of managing it as a recurring emergency.
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About the Author
Julius DeSilva is CEO of QMII (Quality Management International, Inc.), with more than 25 years of experience in quality management systems, maritime safety and security, and information security. A former seagoing officer and Exemplar Global Certified Lead Auditor (ISO 9001, ISO 27001, ISO 50001, RC14001), he has trained over 1,500 professionals as lead auditors and led consulting and auditing engagements across manufacturing, government, maritime, and aerospace sectors. He holds an MBA from the Darden School of Business, University of Virginia, and is an Associate Fellow of the Nautical Institute.
