The Marine Insurer. June 2021. Issue 6

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MARINE | Pollution risk In association with The American Club

A stitch in time From bulk carriers to small inland and coastal transports every vessel has the potential to be involved in a marine hydrocarbon or oil pollution event. These incidents are preventable with proper policy, procedures, and training. One of the most common sources of hydrocarbon releases or oil pollution is bunkering; not considering shore installations such as refinery or drill ships, oil wells and the like. It is estimated that over 70% of spills occur during bunkering operations with the most common cause being inadequate procedures, such as checklists, lack of communication between various entities involved, improper watchkeeping, or product being

pumped at an excessive rate. A spill or environmental release may occur less frequently because of a collision or allision. However, when they do occur, they tend to be more serious. This type of event can cause massive damage over a wide area. Investigations into these incidents typically show a root cause attributed to navigational error of the pilot or master. During loading operations, it is exceptionally important for all parties be well versed in the procedures and maintain constant communication. Unexpected vessel shifting, or inattention to detail and improper securing of loading lines, is another common cause of oil spills.

WELL-CRAFTED POLICY A well-crafted environmental policy begins with a strong position statement signed by senior management. It should outline an organization’s overarching aims and principles for managing environmental impact, as well as management’s commitment to adhering to those principles. The Marine Insurer Americas Edition | June 2021

Properly planned and thought out risk management and loss prevention policy, procedures, and training are critical to mitigate an event such as oil pollution. Jack Jowers, Assistant Vice President & Claims Counsel at Shipowners Claims Bureau Inc., Managers, The American Club, explains

Unfortunately, even the strongest policy, without proper implementation, may simply be words on paper. It is the duty of senior managers to ensure that the goals set forth for the organization are understood by all team members and that each team member has the education, resources, and training to ensure the success of the policy. Each vessel should have a spill response plan tailored specifically for that vessel. A well-crafted plan must address the overarching subjects of: education, safety, and containment. The plan also should include the technical aspects relative to the vessel such as layout, capacities, and response locker(s)

location(s). Prevention is always the best course of action. A prevention plan is known as the ship oil pollution emergency plan, or SOPEP, and is carried on board most large vessels or as dictated by vessel classification societies. Its purpose is to avoid a marine pollution incident with attendant damages to marine species, monetary resources, and also preserve the company’s reputation.

SAFE TRANSFER The corner stone of any good response plan and SOPEP are checklists. These will set forth the steps necessary for a safe transfer of fuel, oil, or other dangerous product, which may cause environmental damage. Special attention should be given to the methods of communication between the parties involved, an agreed upon flow rate between the vessel and facility, or vessel to vessel, and most importantly, all recommended safety equipment is on hand and functional. In the event of a release, first notification should go to the


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A market in flux

5min
pages 60-62

Data and safety

5min
pages 58-59

Digital transformation

4min
pages 56-57

Surveying

5min
pages 54-55

Arbitration

6min
pages 52-53

Digital technology

7min
pages 44-47

Data-driven underwriting

5min
pages 50-51

Firefighting at sea

4min
pages 42-43

Ever Given lessons

4min
pages 48-49

Latin America

5min
pages 36-39

Cargo data

5min
pages 40-41

Risk modelling

3min
pages 34-35

Personal injury

8min
pages 30-33

P&I

5min
pages 14-17

Offshore wind

7min
pages 26-29

Piracy in the Amazon

5min
pages 18-19

California oil spills

5min
pages 8-9

Crew safety

6min
pages 20-21

The US LNG boom

9min
pages 10-13

Latin American economy

6min
pages 6-7

Pollution risk

5min
pages 4-5
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