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Ship to Ship OperationsLiabilities – Risk Assessment – Case Study

The onlineSTS.net ConceptINTERTANKO European Panel Meeting 9/10/2014

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1.VESSEL NOMINATION2.VESSEL ACCEPTANCE3.QUALITY ASSURANCE OF SERVICE PROVIDER4.RISK ASSESSMENT5.COMMENCEMENT OF STS OPERATION

A. APPROACHINGB. MOORINGC. CARGO TRANSFERD. PAPER WORK – BOL-FACT SHEETE. UNMOORING

6.POST EVALUATION (POST ASSESSMENT)

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Who has a contract with whom ??

A Discharging Ship A Receiving ShipA Service Provider

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Where is the Contract ???

A Discharging Ship A Receiving ShipA Service Provider

Charterer/ Cargo Owner

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So, how safe STS Operations be ensured ?

A Discharging Ship A Receiving ShipA Service Provider

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A safe STS Operation does not rely on a contract, but on DUE DILIGENCE

……………DUE DILIGENCE requires:

• Expertise-Experience• Information resources• Past STS Record Assessments• Understanding of Liabilities, Exposures• Supporting Reputation and Risk Mitigating issues

So, how safe STS Operations be ensured ?

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1. Right to review the details....2. Decision on suitability...3. Proper and detailed planning...

1. DUE DILIGENCE from the TANKER OPERATOR

2. Provision of tools and information to the Master

3. Assessment of Safety issues

Due Diligence in STS Operations is:• easy to be described, • difficult to be recorded and • challenging to provide proof that is being followed.

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DESIGNING THE CONCEPT

Latest OCIMF Guidelines

IMO MARPOLChapter 8 of Annex I

ISM & TMSA

Charter PartySTS Clauses

P&I and H&M

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What is the problem ??

1. Limited expertise in STS due diligence practices;

2. Limited risk estimation data3. Time constrain for decision making4. Excessive administration burden

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And what is your proposed

solution ??

1. Adopt SCREENING POLICIES2. Screen the SERVICE PROVIDER and POAC3. Assess the STS RECORDS4. Share your Experience5. Use your STS KNOWLEDGE during the

CLEARANCE Phase

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Clearance Request

Examination of available records.

VESSEL SUITABILITY

Clearance Reply

COMMITMENT WITH THE STS

Charterer Tanker Operator

Examination of available records.

VESSEL SUITABILITY

Screening Policies

1. Standard & justified procedure

2. Access to information resources

3. Access to available past STS records

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Proper and Detailed Planning

Risk Mitigating Measures

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location

Tanker Operator

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location Risk Mitigating Measures

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Proper and Detailed Planning

Tanker Operator’s task

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location

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Proper and Detailed Planning

Tanker Operator’s task

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location

• The risk assessment should encounter all identified hazards.

• Consolidated past performance data should be taken into account.

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Proper and Detailed Planning

Tanker Operator’s task

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location• The STS location assessment should consider:

• Weather data;• Past Service Provider performance;• Reported Incidents;• Performance of STBL or Receiving

vessels.• Other restrictions

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Proper and Detailed Planning

Tanker Operator’s task

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location• The Joint Plan prepared by the Service

Provider should be assessed by the Master for compliance according to latest OCIMF guidelines and STS PLAN.

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Proper and Detailed Planning

Tanker Operator’s task

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location

• The Service provider should be assessed with respect to Safety, reliability and efficiency.

• STS Equipment (Fenders – Hoses) Characteristics and Maintenance Certificates should be requested from the provider and be assessed.

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STS OPERATION

Service ProviderTanker Operator

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Records Assessment of Records

KPI’s

Statistics

Lessons Learned

STS Experience becomes an asset to

the Operator

Tanker Operator

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Clearance Request

Examination of available records.

VESSEL SUITABILITY

Clearance Reply

COMMITMENT WITH THE STS

Proper and Detailed Planning

Risk Mitigating Measures

STS OPERATION

Records Assessment of Records

KPI’s

Statistics

Lessons Learned

STS Experience becomes an asset to

the Operator

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location

Examination of available records.

VESSEL SUITABILITY

Service Provider

ASSESSMENT PHASE

Joint Plan of the STS

Risk Hazards

STS Location Risk Mitigating Measures

Assessment of Records

STS Experience becomes an asset to

the Operator

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Clearance Phase

Proper & Detailed Planning

STS Operation

Assessment of Records

STS Experience

Tanker Operator 1

Clearance Phase

Proper & Detailed Planning

• Due Diligence Procedures

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Clearance Phase

Proper & Detailed Planning

STS Operation

Assessment of Records

STS Experience

Tanker Operator 1

Clearance Phase

Proper & Detailed Planning

Clearance Phase

Proper & Detailed Planning

STS Operation

Assessment of Records

STS Experience

Tanker Operator 2

Clearance Phase

Proper & Detailed Planning

Clearance Phase

Proper & Detailed Planning

STS Operation

Assessment of Records

STS Experience

Tanker Operator 3

Clearance Phase

Proper & Detailed Planning

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Assessment of Records

STS Experience

Tanker Operator 1

Assessment of Records

STS Experience

Tanker Operator 2

Assessment of Records

STS Experience

Tanker Operator 3

Performance of Vessels POAC Assessment STS EquipmentAssessment

Location Assessment

SHARE OF INFORMATION - DUE DILIGENCE

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SHARE OF INFORMATION - DUE DILIGENCE

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SHARE OF INFORMATION - DUE DILIGENCE

Assessments

1. 464 Individual POAC2. 98 Different Locations3. 62 Service Providers4. 421 Individual Tanker

Operators5. 1556 Individual Vessel

Performance

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SHARE OF INFORMATION - DUE DILIGENCE

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Safeguards and barriers in place, are in line with anti-trust and anti-corruption requirements in order

to ensure that sensitive information is not compromised.

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Clearance Phase

Proper & Detailed Planning

STS Operation

Assessment of Records

STS Experience

Tanker Operator

Clearance Phase

Proper & Detailed Planning

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

Becomes a member

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COMPANY LOCATIONALMI TANKERS SA GREECEANDRIAKI SHIPPING CO LTD GREECEAMPTC CO EGYPT-KUWAITARCADIA SHIP MANAGEMENT CO LTD GREECEATHENIAN SEA CARRIERS LTD GREECEBERNHARD SCHULTE SHIPMANAGEMENT (DE) GMBH GERMANYBERNHARD SCHULTE SHIPMANAGEMENT CY CYPRUSBERNHARD SCHULTE SHIPMANAGEMENT UK UKENESEL SA GREECEEURONAV SHIP MANAGEMENT (HELLAS) LTD GREECEEURONAV SHIP MANAGEMENT SAS BELGIUMGRACE MANAGEMENT SA GREECEIONIA MANAGEMENT SA GREECEMARAN TANKERS MANAGEMENT INC GREECEMARE MARITIME CO SA GREECEMEDCARE SHIPPING SA GREECENAVIOS TANKER MANAGEMENT INC GREECERHL HAMBURGER LLOYD TANKER GMBH CO KG GERMANYTHENAMARIS (SHIPS MANAGEMENT) INC GREECETMS TANKERS GREECETSAKOS COLUMBIA SHIP MANAGEMENT SA GREECEWESTERN SHIPPING PTE LTD SINGAPORE

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Constant Heading Vessel

ManeuveringVessel

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Constant Heading Vessel

ManeuveringVessel

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Constant Heading Vessel

ManeuveringVessel

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Constant Heading Vessel

ManeuveringVessel

An obvious observation is that the responsibility lays with the maneuvering vessel rather the constant heading vessel. Although the case was considered to end in favor of the constant heading vessel, a close examination of both Masters’ responsibilities as per OCIMF guidelines altered the course from the initial case settlement, probably ending as a knock-for-knock.

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Constant Heading Vessel

ManeuveringVessel

WHAT WENT WRONGThe primary pennant fender rope broke during the initial contact (Figure 1) ending in dislocation for fenders. No backup pennant fender rope existed. The condition and type of the forward pennant fender rope was not according to manufacturer requirements, thus not as per ISO 17357:2002.Although secondary fenders were fitted those did not prevent the collision.

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Constant Heading Vessel

ManeuveringVessel

WHAT WENT WRONGThe primary pennant fender rope broke during the initial contact (Figure 1) ending in dislocation for fenders. No backup pennant fender rope existed. The condition and type of the forward pennant fender rope was not according to manufacturer requirements, thus not as per ISO 17357:2002.Although secondary fenders were fitted those did not prevent the collision.

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Constant Heading Vessel

ManeuveringVessel

FAILURE TO MEET OCIMF GUIDELINES

According to OCIMF guidelines the following should have taken place:1. A joint plan should have taken place prior the STS operation as per paragraph 5.2 of OCIMF

guidelines.2. Both Masters should have requested certificates of fenders, hoses and also the qualification of the

POAC according to paragraph 2.5 and 9.1.3 of OCIMF3. In case the rigging of the fenders was not as per OCIMF guidelines, then the operation should not

started.

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Constant Heading Vessel

ManeuveringVessel

WHAT (IF) ??

According to OCIMF guidelines the following would have taken place:1. A joint plan would have taken place prior the STS operation as per paragraph 5.2 of OCIMF

guidelines.2. Our Master would have requested certificates of fenders, hoses and also the qualification of the

POAC according to paragraph 2.5 and 9.1.3 of OCIMF3. In case the rigging of the fenders was not as per OCIMF guidelines, then the operation would not

have started.4. Most likely past performance data for vessel and service provider would provide an indication.

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JUSTIFY YOUR DECISIONS,

FOCUS ON THE STS OPERATION,

SUPPORT YOUR REPUTATION

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