Pollution risk

A stitch in time

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

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. 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

“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.”

Jack Jowers,The American Club

Qualified Individual (QI) via phone, using their 24-hour number(s). The QI will then coordinate follow-up notifications to the USCG National Response Center (NRC), Oil Spill Removal Organization (OSRO), State authorities, and the Salvage and Marine Firefighting (SMFF) provider, if required.

These notifications can trigger enquiries from media in the event of a mass pollution incident. Remember, the public perception may be biased against an organization regardless of true liability or factual circumstances.

Under this scenario, a company is better served not giving

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Source: DHL, McKinsey

statements to the media until more concrete facts become known. Your insurers can recommend a media firm which can coordinate with counsel to put forth information in a protective and thoughtful manner.

KEEP PLANS CURRENT

Every year, new methods, and technology are developed to assist with mitigation of environmental spills. Be sure to keep plans and employees current with the changing methods. Educational material and updates can be found through class societies, industry associations such as AWO or OMSA, or environmental response firms.

Drills are not only required by class societies or governmental regulatory agencies, but they are also an organization’s opportunity to become better prepared.

Depending on the type of vessel, best practices dictate the conducting drill of the plan at least every quarter. To add value to the drill, consider incorporating local emergency response agencies and spill response consultants. They are typically eager to work with organizations to ensure that their plans are up-to-date, accurate and realistic.

Through years of experience and service, the American Club, as well as the other P&I Clubs, has developed relationships with skilled experts, consultants, and counsel, all of whom assist in coordination of communications between Members, brokers, experts, counsel, correspondents, contractors, and/or governmental agencies.

Should a response programme need attention or perhaps there is a need to formulate a program, your Club can certainly point you in the right direction. Contact the loss prevention department

or your individual claims handler with specific questions.

Those with more advanced response plans may name an emergency or environmental response firm. While not necessary, this can unquestionably cut down on the confusion at the onset of an event. It is always a best practice to have these relationships in place as part of the safety management system.

INSURER RELATIONSHIP KEY

One of the more important relationships for a company in the event of an oil spill is the one with its insurer.

At the American Club, we partner with Members to help them develop, assess, and execute their response plan. We are there to aid them through every step to ensure a successful cleanup operation. Our network of expert professionals is trained to act quickly to mitigate environmental damage, damage to property, and help to lessen overall liability. It is our goal to ensure that our Members do not just react to an event, but, through the proper implementation of policy, procedures, and training, are prepared for such an event and can mitigate their exposure.