Tutor Marked Assignment
Student Name
Hamilton Ramirez
Email Address
H4mram.gi@usa.com
Course
Diploma in Oil, Gas and Petrochemical
Course Code
FLR2864
TMA
Case of Study
Total Number of Words
3000
Date
01/06/2018
Lloyd's and the Lloyd's Crest are the registered trademarks of the Society incorporated by the Lloyd's Act 1871 by the name of Lloyd's.
OIL/CHEMICAL TANKER VETTING The Global Economics1 has increased every day by delivering goods overseas; rising transportation, encouraging international trade. The result is ship owners 2 , charterers and third party 3 companies are signing contracts for transporting many types of bulk cargo worldwide. Taking into account that most refiners and petrochemical plants 5 are adjacent to each other, it is desirable for the chartered company to be able to handle many types of cargos4 . However, tankers must hold an International Oil Pollution Prevention certificate with form B, with the following criteria; Segregate Ballast Tanks (SBTs) 7 , and Protective Location (PL) 8 on the Double Hull 9 , Clean Ballast Tanks (CBTs) 1 0 and the Crude Oil Washing (COW) 1 1 system certified by the IMO, combine with the Certificate of Fitness for the Carriage of Dangerous Chemicals 1 2 in Bulk certified by the IGB code. The oil/chemical tankers loading and discharging variety of oil cargoes from heavy fuels 1 3 ; crude oil, asphalts, Intermediate fuel oil (IFOs) to light fuels 1 4 ; Diesel, kerosene, gasoline, naphtha and gas. Equally important the petrochemical is markedly huge with products like; olefins, aromatics 1 5 , primary, intermediates and derivate petrochemicals to major end chemicals products, based with the previous certifications mentioned above. Therefore, the chemical transportation is certainly different from oil transportation; cargoes with severe environmental and safety hazards 1 6 which require notably preventive measures. According to the ship particulars, the tanks material are descripted as mild still or the stainless steel 1 7 construction and based coating paints 1 8 . Taking into consideration there are about 20 products listed in the Chapter 17 of the IBC 1 9 code and their cargoes self-reactive conditions by using the chemical data guide from USCG 2 0 . Chemical handling cargoes stored in many different tanks being completely segregated from those highly toxicity and reactive, in order to prevent pollution contamination, people injures and the worst scenario fire or explosion. Must be remembered that the max loading capacity is 3000 m3 allowed to be carried in a single tanks in type 2 2 1 ship, and should NOT exceed in any one tank due large range of cargoes from noxious or hazardous chemicals. Besides, the planning process and loading requires an extremely consideration during the cargo is being transported, due temperature sensitivity, need to be inhibited, water sensitivity, semi-gases and potential reaction with other chemicals. However, to determinate how cargoes are moved and delivered it is quite important to get an extreme vetting in the vessel seaworthiness 2 2 circumstance conditions. Due to the large quantities of merchandise in cargoes transported being involved in issues like; accident, cargo contamination, vetting 2 3 restrictions and limitations or any other. For this reason, it is fundamental to understand the legal implications of a maritime environmental business generating serious and big consequences for the different parties that intervene in the trading. As a result, the transport of goods overseas must be developed with highly levels of responsibility, from the top to the lowest ranks in any organization. This seemingly clear and simple scenario, in reality it becomes a complex situation to
identify the manner in which it should be addressed and the applicable regulations. In the case if the vessel is found in any violation or malfunctio ned, causing any losses or which the contractual liability of the maritime transporter of goods must be covered by someone specifically the ship-owner itself. Indeed, every time oil dangerous cargoes involved in accidents by sea are affecting the environment, and putting endanger the lives of animals and even humans, so the international organizations are moving forward developing international conventions and legislation in the maritime industry like the International Marine Organization (IMO) 2 4 , Safety of Life at Sea (SOLAS) 2 5 , Prevention of Pollution from Ships (MARPOL) 2 6 , International Safety Guide for Oil Tankers and Terminals (ISGOTT) 27 as well the Oil Companies International Marine Forum (OCIMF) 2 8 formed as the main response to the oil industrys increasing public awareness of marine pollution. As a point reference, big catastrophes in the maritime Industry have happened by human errors/ mistakes. Hence, companies involved in the business must develop a tanker safety management. The Tanker Management Self-Assessment (TMSA) 2 9 is a program important program for checking possible technical issues and fix them before an inspection, which are required from all major oil companies throughout the OCIMF program and the Chemical distribution (CDI) 3 0 institute. Taking into account their mission statement “Our mission is to be the foremost authority on the safe and environmentally responsible operation of oil tankers, terminal and offshore support vessel, promoting continuous improvement in the standards of design and operation.� As shown above, ship-owners are willing to participate in the vetting process from Ship Inspection and Reporting Program (SIRE) 3 1 by OCIMF. This happens by the master of the tanker on behalf of the ship-owner receives an appointed inspector in charge of conducting, recording and disseminating the surveying process, written according to its chapters in the Vessel Inspection Questionnaire (VIQ) 3 2 . The inspector 3 3 starts his survey from general information about the ship and specific areas covered in the ship management: Certification and Documentation, Navigation and Bridge management, crewing, safety, Mooring, communications, Structure, cargo operations, Environmental and Pollution control, Machinery Spaces and Maintenance, general appearance and by tanker classification Petroleum, Chemical, Liquefied Petroleum Gas (LPG) or Liquefied Natural Gas (NLG). Additionally, the Office Matrix is the most compelling evidence to generate the report that will be submitted to the OCIMF. It is important to realize the CDI used its own VIQ that is marginally different to the OCIMF form. Nevertheless both parties agreed to create a unique form called Harmonized Vessel Particulars Questionnaire (HVPQ) 3 2 to be used in Chemical as well Oil Tankers. In a broader perspective in the arrangement for a SIRE or CDI inspections, the following parts should be considered; the tanker, the owner or designated operator, the OCIMF submitting member, the inspector and the SIRE database.
Furthermore, the information flow begins when the vetting is requested by the operator to the Oil Major Members, who looks for an available inspector to come to the Vessel with the HVPQ and approve the officer matrix. Then documents are submitted to the SIRE database by both parties, consequently a booking code is endorsed and the vessel is ready to go ahead with operations. In total the inspection process takes about 8 to10 hours, the stages are:
The opening meeting with the master, important certificates and documentation
ESP documentation, Officers’ licenses, hours of rest records, wheelhouse and navigation communications
external areas, main deck, and oil spill protection, Cargo and crude oil washing piping
Fire lines and other piping, manifold area, gangways, IG distributio n system, deck water seal
Non-return valve, PV breaker, IG branch piping, cargo tank venting and secondary venting systems
Assessment of tank condition, ballast water sampling, mooring systems, pump room
Cargo operations and cargo control room, engine room, PPE, documentation, engine control room,
Oily water separator, steering gear, accommodation –
Closing meeting, de-briefing with the master and finally dealing with SIRE inspectors and inspection reports.
The previous points overlooked are in accordance to the inspector’s observation on the vetting inspection of the case of study. Based on his reference sources using the VIQ 6 from the SIRE program. Analysis and explanation for each single answer and proper justification as shown below. 1. Has the vessel been enrolled in a Classification Society Condition Assessment program 3 4 (CAP)? VIQ Ref 2.12 Page #22;
The vessel did not have a CAP certificate.
The vessel had completed third special survey.
The condition Assessment Program is a special survey, which is done by classification society to those tanker reaching 15 years + of construction. Although, this is a voluntary program to be carried by ship-owners. It becomes a strong useful tool to be used by them, in order to keep the tanker in operational conditions with high standard quality for the market and potential customers. The CAP survey requires a surveyor team, which spent several days on board the vessel doing a detailed inspection from; hull structure, cargo operational system, ballast and fuel tanks as well machinery spaces. After the final analysis the certificate is provided with detailed rating, which is from 1 to 4. Being CAP-1 the highest score and CAP-4 the lowest score given. However, rating CAP-1 and CAP-2 looking attractive for the industry, but rating CAP-3 and CAP-4, the ship-owner must do extra work on board to reach the CAP-1. Certainly, holding a CAP certificate is more accurate for doing an estimate quotation on a vessel that arrives at dry dock and ship-owners can handle their budgets. 2. Does the officers’ matrix posted for the vessel on the SIRE website accurately reflect the information relating to the officers on board at the time of the inspection? VIQ Ref 3.9 Page #27; The third mate did not hold a flag state certificate of endorsement. He did have a receipt from the flag administration attesting that he had applied for an endorsement. The receipt was issued 4 months prior to this inspection. The officers’ Matrix is used to keep track of the officer’s licenses and their proper endorsement on his Merchant Mariner Credential allowing him to work on board according to the ship specification, requirements and flag state. Besides, if the officer has different nationality from the flag estate endorsement, he must have a valid one or renewed endorsement. The flag administration issues the Certificate of Receipt of Application (CRA) 3 5 , which is valid with a maximum period of three months and permitted by STCW 3 6 convention, to be shown to the inspector as required. For this reason it is quite important to realize, if there has been a crew change seven days before any inspection. It must be update in advance to SIRE program database. As a result, the answer failure is because the ship-owner did not address the situation under the tanker’s management system, which belongs to the crew department tracking the crewmembers’ licenses, passports any other document with expiration dates. As a matter of fact, prior several circumstances like long voyage, inspection and surveys, the formality documents must be notify or crew changes must be done in advance. In order to comply with International regulation and let inspection flow without any negative point in the final decision by the inspector
3. Are firemen's outfits and breathing apparatus in good order, fitted with fully pressurized air Cylinders and ready for immediate use? VIQ Ref 5.62 Page # 59; The batteries of the safety lamp for the fireman’s outfit in the steering room were almost flat and the light was very dim. This was corrected during the inspection by replacing the batteries. (SOLAS 1974 II-2/17
37
, SOLAS 2004 II-2/10.10
38
and FSS code 3/2.1.1 3 9 )
It looks like it was just simple a pair of batteries. However, it could be worse if this happened in a real fire scenario endangering the life of any crew member. Taking into account, Tankers shall carry four firemen’s outfits. In the meantime, the safety management system must be provided with specific procedure covering all aspects in the ship’s operations from the company. As an illustration; Checking list and instruction pre-written for all operational routines and emergency drill to ensure that nothing is forgotten in the heat of the moment. The most compelling evidence, safety belongs to the whole crew and any one has the STOP authority onboard for safety reasons. In the first place, the master as a commander, which is in charge of the vessel, tracking the general aspect ensuring that all the crew members perform their duties as the rank commanded. In this particular case, the third mate holding a Vessel Personnel Designated Safety Duties (VPDSD) 4 0 performing the daily maintenance of the ship’s safety and lifesaving equipment, like as firefighting outfits and lifeboats, keeping them in perfect working conditions. After every single drill, the third mate must check the equipment condition and its working capacities as it has been made for. In case, any spare part must be replace, batteries changed or breathing apparatus air bottle refilled. Then he or she must inform the Captain on any faulty equipment that needs to be sent ashore. Although, is not advisable to hold the full responsibility to a single person falling in stress fatigue, relief conditions must be done by master. 4. Is the Oxygen content of the inert gas delivery at or below 5%? VIQ Ref 8.42, Page #80; The oxygen content showing on the fixed oxygen analyzer on the Inert gas generator in the engine room was reading 7% oxygen. The inert gas system on board is quite important in any loading or discharging operation, because keeping the Lowest Explosive levels of oxygen below 8%, neutralizing the triangle formula; oxygen, fuel and heat. Replacing the oxygen with Inert gases; like pure nitrogen or CO2, preventing any cargo catching fire.
In order to maintain the atmosphere inside any cargo tank with the lowest explosive levels at 8% of oxygen by volume and at a positive pressure. The Inert gas system including instrumentation, alarms, trips, pressure and oxygen recorders must be in good condition delivering the inert gases at 5% from the gas generator with efficiency to keep cargoes in safety possible conditions. Although, the lowest content of oxygen in cargo is 8%, due the temperature in cargos changing dramatically their atmosphere. (FSS code 15.2.1.3.2 and FSS code 15.2.2.1.3) 3 9 Another key point, the master, the chief officer and the duty officer must be knowledgeable in the operation, in order to be able to report and inform any inconstancy in the inert gas system such as non-delivering the atmosphere levels expectancies. The oxygen analyzer must be calibrated in a period maximum of 24 hours prior to starting of the inert gas system, and guarantee a safe operation during the cargo transfer. If any fail is found, cargo must be stopped until fixed. 5. 11.37 Are machinery spaces and steering compartments clean and free from obvious leaks and is the overall standard of housekeeping and fabric maintenance satisfactory? VIQ Ref 11.37, Page #151; In the steering gear room there was a pool of hydraulic oil under the steering gear rams. Apparently about one liter was visible on the deck. Regarding the engine room it is usual to handle with leakage, spills every single day, due the different types of liquids, which are used in the machinery spaces and the extra jobs to be done, in order to keep the engine in perfect conditions. However, best cleaning and preventive practices must be done in the engine room, as well in the electrician’s store/workshop once jobs are finished. The compressor rooms maintenances, chemical properly stored, spare gear stores, Inert Gas rooms, and boiler rooms checked. Visible safety notices and signs written in English should be posted. Likewise, in the particular observation the second engineer is the person in charge to arrange with oilers and fitters to perform those activities, for sure the Chief Engineer does not accept nor tolerate any meshwork in the engine room 6. Is the steering gear emergency reserve tank fully charged? VIQ Ref 11.37, Page #153; Fixed storage tank shall be provided having sufficient capacity to recharge at least one power actuating system including the reservoir. (SOLAS II-1/29.12.3) According to the statement based SOLAS, the minimum level are accepted to comply with regulations. Nevertheless, a fixed storage tank with full spare oil amount must be store in drums for the emergency tank, as part of the safety job analysis program.
The following analysis and criteria, based observations given about management of the ship. Under these circumstances, quite poor quality standard management and deficiencies in problem solves. As a general, management is quite important in every single business in order to fulfill with the company’s mission/vision reaching the core values itself and make it as profitable as possible. First of all, there doesn’t seem to be good communication or connections with the management departments. It looks like no one is in the same page, based in the simple observations, which could solve any issues prior to survey and not after been noticed, because emergencies happened at any time. Ultimately, the ship owner has to work as a team with all the management departments, the technical department with the superintendent, recording any ship’s inquiry and arranging spare parts to be delivered in advance, with suppliers and keep them tracking with the protective agent. At the same time, the Designated Person Ashore (DPA) 4 1 in the office with 24/7 availability for all vessel crews for consultation or any confidential matter of concern regarding health safety and pollution prevention, ensuring communications by vessels crew to highest level of managements when warranted. Besides, providing periodic reports to senior management and ensure appropriate management attention is given to these issues. In order to provide a proper and accurate report in response sent to the SIRE programm, due the observations raised.
VIQ Ref 2.12. For the next special survey a CAP certification will be considered.
VIQ Ref 3.9. The crew department will be tracking the seamen formalities paper works as well as their endorsement, in order to comply with regulations.
VIQ Ref 5.62. Third mate will be checking safety equipment conditions after drill performed
VIQ Ref 8.42. Chief engineer keeps in working conditions IG generator prior any discharging operation.
VIQ Ref 11.37. Second Engineer performs best cleaning practices with his engine crew people.
VIQ Ref 11.51. Oil record book information checked and tracked by engine personnel to keep the machinery in working conditions and the superintend delivering the enough quantities required.
Ship-owner and charterer parties entered into a two-year time charter party, on the SHELLTIME 4 (2003) 4 2 form,
In this case in particular it is not easy situation; the vessel was inspected by inspector on behalf the terminal and rejected as unacceptable for arrival, the Charterer sent to the ship-owner a cancelations notice based on charter party contract Clause 48 Clause 48, entitled “Approvals,” 4 3 stated: The vessel must be in seaworthiness conditions and get the letter approval from the Oil major companies, in order to precede operations. The COA 4 4 charterer holds a 6 months timecharter with oil trading company As a consequence, the ship-owner is responsible to obtain vetting approval, they shall take important improvement steps on issues given by the inspector, in order to maintain acceptance and the approval by the oil company listed above. Nevertheless, Charterers also knowledgeable that oil major company approvals are subject to the vessel’s trading pattern, Henceforth, nowadays many tanker charter parties incorporate vetting clauses, like: vessel shall be accepted at all times by major oil companies and chemical companies under their vetting programs. The ship-owners arranging for inspections as being required at their time and expense in the timecharter party contract signed. The tanker will be kept in customary adequate conditions by ship-owners to all major oil/chemical producers/companies warrant for the duration under chartering the vessel. Dispute 1. The ship-owner shall get the letter approval from the oil terminal. 2. Due those arbitration awards, the lack of vetting the ship-owner lost day’s off-hire payment. 3. The vessel will be redelivered, after vessel approvals 4. The vessel continued under the timecharter party contract by charterer 5. Lack of approval can stop the charter according to clause 48 6. Based on the third parties damages, Ship-owners shall cover damages and the financial consequences. The above citation came into arbitration awards. The awards also explain that the lack of vetting can stop the charter and highly priced after effects. Then again, ship-owner must handle the acceptance under the judgement verdict and capable to cover the damages facing the legal problems related to the contractual liability of maritime transport of goods and civil liability taking into account its depth and magnitude. The supply chain of the gasoline will be affected by Bullwhip Effect 4 5 . The supply and inventories shock waves is the predisposition to exaggerated fluctuation of inventories and received orders at the supply chains by Lack of deliveries. The market needs is permanent, representing new challenges in different parts. In order to mitigate the risk in the supply chain, propel logistics must be developed, reaching on time to the potential customers.
The following International Conventions and regulations listed are involved in the case above.
the International Labour Organization 4 6 The Maritime Labor Convention (MLC) 4 7 International Convention for the Safety of Life at Sea (SOLAS), 1974, it’s Protocol of 1978, as amended, and the Protocol of 1988, (SOLAS 74/78/88). International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978, as amended (MARPOL 73/78). International Convention on Standards of Training, Certification and Watch keeping for Seafarers 1978, as amended (STCW 78). Convention on the International Regulations for Preventing Collisions at Sea 1972, as amended (COLREG 72). Merchant Shipping (Minimum Standards) Convention,
As Conclusion, negligence and improper management decisions bring huge negatives setbacks like big financial pay outs, losing the charterer contracts or worse, owners’ reputations in commercial environment. Websites, online videos, advisories from Captains, Officers and crew members in the M/Ts berthed in Houston TX, Terminals.
1.
https://en.wikipedia.org/wiki/International_trade
2. http://wakemarine.co.uk/what-are-charterers-and-what-are-ship-owners/ 3.
http://www.ccohs.ca/oshanswers/occup_workplace/shipping_receiving.html
4. http://www.chemicaltankerguide.com/cargo-loading.html 5. https://en.wikipedia.org/wiki/Downstream_(petroleum_industry) 6. https://www.wartsila.com/encyclopedia/term/international-oil-pollution-prevention-certificate(iopp-certificate) 7. https://www.wartsila.com/encyclopedia/term/segregated-ballast-tanks 8. http://www.marpoltraining.com/MMSKOREAN/MARPOL/Annex_I/r18.htm 9. https://www.marineinsight.com/naval-architecture/single-hull-vs-double-hull-tankers/ 10. http://oils.gpa.unep.org/facts/operational.htm 11. https://en.wikipedia.org/wiki/Crude_oil_washing 12. https://www.classnk.or.jp/hp/pdf/download/appli_form/DGI-APP.pdf 13. https://en.wikipedia.org/wiki/Fuel_oil 14. https://en.wikipedia.org/wiki/LFO 15. https://en.wikipedia.org/wiki/Petrochemical 16. http://www.chemicaltankerguide.com/safety.html 17. http://www.chemicaltankerguide.com/shipbuilding-stainless-steel.html 18. https://www.paintsquare.com/library/articles/Choosing_the_Correct_Coatings_for_Cargo_Tanks.p df 19. http://www.spillresponse.nl/index.php/The_International_Bulk_Chemical_Code_(IBC -code) 20. http://www.marnav.dk/media/pdfs/USCG/Chemical%20data%20guide%20USCG.pdf 21. https://en.wikipedia.org/wiki/Chemical_tanker 22. http://www.888-go-longy.com/legal-definition-of-seaworthiness.php 23. https://www.lr.org/en/training/tanker-vetting-and-inspection/ 24. http://www.imo.org/en/Pages/Default.aspx 25. http://www.imo.org/en/About/Conventions/ListOfConventions/Pages/International-Convention-forthe-Safety-of-Life-at-Sea-(SOLAS),-1974.aspx
26. http://www.imo.org/en/About/Conventions/ListOfConventions/Pages/International-Convention-forthe-Prevention-of-Pollution-from-Ships-(MARPOL).aspx 27. http://www.witherbyseamanship.com/isgott-1.html 28. https://www.ocimf.org/ 29. https://www.ocimf.org/sire/about-tmsa.aspx 30. http://cdi.org.uk/ 31. https://www.ocimf.org/sire.aspx 32. https://www.ocimf.org/sire/news/viq-desktop-editor-7045-available.aspx 33. https://www.ocimf.org/sire/sire-inspector-accreditation.aspx 34. http://www.classnk.or.jp/hp/en/activities/techservices/tech_cap.html 35. http://abregistry.ag/wp-content/uploads/2013/01/STCW -Circ-2004-001-Applications-for-SeafarerDocs.pdf 36. https://www.dco.uscg.mil/Our-Organization/Assistant-Commandant-for-Prevention-Policy-CG5P/National-Maritime-Center-NMC/stcw/ 37. http://www.sjofartsverket.se/upload/5483/8-11.pdf 38. http://www.sjofartsverket.se/upload/5483/8-11.pdf 39. https://puc.overheid.nl/nsi/doc/PUC_2394_14/ 40. http://www.mptusa.com/course/567-Vessel-Personnel-with-Designated-Security-Duties-(VPDSD)(VSPSD)-(PDSD) 41. https://www.bluewateryachting.com/blog/what-is-a-designated-person-ashore-dpa-156 42. https://www.sec.gov/Archives/edgar/data/1507571/000119312512143649/d307623dex1012.htm 43. https://www.lawinsider.com/contracts/4IXqkMirMrzeV32yy1y532/arlington -tankers-ltd/0/2006-0111 44. http://www.shipinspection.eu/index.php/chartering-terms/65-c/4484-coa-contract-ofaffreightment 45. https://en.wikipedia.org/wiki/Bullwhip_effect 46. http://www.ilo.org/global/lang--en/index.htm 47. http://www.ilo.org/global/standards/maritime -labour-convention/lang--en/index.htm https://www.ocimf.org/http://www.imo.org/en/About/Conventions/ListOfConventions/Pages/Inter national-Convention-for-the-Prevention-of-Pollution-from-Ships-(MARPOL).aspx https://greenwoods.org/non-delivery-of-cargo/ https://www.marinetraffic.com/en/ais/details/ships/shipid:754476/vessel:FPMC%2023 http://www.tankers hipping.com/news/view,the-trouble-withobservations_49667.htm https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/fil e/414259/Part_A_Chapter_14.pdf https://www.intertanko.com/upload/SnaithHaguePart2Vetting.pdf https://www.marineinsight.com/marine -safety/protection-against-explosion-the-i-g-system/