Vetting - Intertanko€¦ · · 2015-12-11NIGERIA TANKER BAN Letter from NNPC dated 15 July ......

Leading the way; making a difference

Vetting

Vetting and liaison with OCIMF12 December 2015

Ajay GourINTERTANKO


- Vetting -“Marine Assurance

and Quality shipping”


- Vetting -“Ticket to Trade”

China, 1, 3%Cyprus, 2, 7%

Denmark, 2, 7%

Greece, 5, 17%

Hong Kong, 1, 3%

Italy, 2, 7%

Monaco, 1, 3%Netherlands, 1, 3%Norway, 2, 7%

Singapore, 2, 7%

USA, 1, 3%

Germany, 2, 7%

UK, 2, 7%

Belgium, 1, 3%

UAE, 1, 3%

Chile, 1, 3%India, 1, 3% Russia, 1, 3%

Percentage Representation of Vetting Committee by location of member

China

Cyprus

Denmark

Greece

Hong Kong

Italy

Monaco

NetherlandsNorway

Singapore

USA

Germany

UK

Belgium

UAE

Chile

India


Inspections• Numbers/Costs• Inspector Stds• VIQ - Guidance• Inspector

Availability

Policies• Transparency• Off. Matrix• Terminal Insp’ns• Maiden Voyages• Incident Reports

The challenges…


- Examples of difficult vetting clauses which are biased towards the charterer and not balanced:

1. “Owners warrant that for the duration of this charter the vessel will be kept in a standard acceptable to all major oil producers and all major chemical companies”

2. “Owner warrants that the vessel is approved by the following companies and will remain so throughout the duration of this charter party”

3. ”Owner will endeavour to maintain all necessary oil company approvalsduring the course of this charter”

4. “Owners warrant that within 2 months from delivery vessel to obtain at least 2 oil major approvals from oil majors listed below…”

50% discount for members - order your copy through www.witherbyseamanship.com

* Members Only

50% Discount*50% Discount*


Thank You!Thank You!

Leading the way; Making a difference

NNPC Visit to INTERTANKOLondon

11th December 2015

Michele WhiteGeneral Counsel,

INTERTANKO


Overview

1. INTERTANKO Legal and Documentary Committee

1. NNPC Nigeria Tanker Ban

2. Commercial Issues - Sustainability and INTERTANKO Payment Performance System


Legal and Documentary Services to Members

• INTERTANKO Documentary Committee – 42 years• 50 INTERTANKO model clauses • INTERTANKO publications• Freight and Demurrage Information Pool• www.intertanko.com – Legal and Documentary:

• Charterparty issues• Case law summaries• Charterparty forms• General advice and assistance• INTERTANKO clauses and guidance on their use

• Chartering Seminars• Charterparty Advisory Service• Weekly News – Legal Issues


INTERTANKO Recent Model Clauses

50 Clauses

• Ebola Clause

• Bunker Adjustment Clauses for ECA areas

• Nigeria Trade Clause and Nigeria Trade Letter of Comfort

Open access early 2016

LEADING THE WAY, MAKING A DIFFERENCE

NIGERIA TANKER BANLetter from NNPC dated 15 July stating that ‘113’ vessels have been “prohibited from engagingin Crude Oil/Gas loading activities”

LEADING THE WAY, MAKING A DIFFERENCE

Excerpt from table of ‘113’ banned tankers


INTERTANKO Nigeria Trade Clause

NIGERIA TANKER BAN – Chronology and INTERTANKO Response• 15th July – NNPC informs terminal operators that President Buhari has issued ban on

113 tankers entering Nigerian Waters. Crackdown on corruption.• INTERTANKO publishes the tanker ban and full list; investigates Nigeria calls for

INTERTANKO Member ships.

• 22nd July –and responds with INTERTANKO letters of protest to NNPC/Nigerian Authorities.

• Charterers begin to ask for clauses in c/ps including warranties from tanker owners that they are able to trade Nigeria. Work begins on INTERTANKO Nigeria Trade Clause

• Rumours Nigerian authorities will seek information on Nigeria calls and will henceforth increase documentary requirements – worked into clause.

• 29th July – INTERTANKO Documentary Committee issues INTERTANKO Nigeria Trade Clause with advice for vessels that are blacklisted; vessels not blacklisted and future fixtures. Practical advice for calling Nigeria issued to address rumours ban relates to cargo theft.

• 10th September – further INTERTANKO letter to NNPC; INTERTANKO Press release


INTERTANKO Nigeria Letter of Comfort

Freight rates rise….

• 8th September – NNPC retreats – ‘lifts’ ban but requires a ‘Letter of Comfort’ that no illegal activity will take place.

• 16th September – NNPC issues LOC ‘Template’ including wording that results in damages payable without proof of loss.

• Charterers endeavour to pass this requirement on to Owners to give to NNPC.• INTERTANKO Documentary Committee draft INTERTANKO Letter of Comfort for

Nigeria Trade

• 1st October - Further INTERTANKO letter to NNPC• 5th October – NNPC issues revised LOC requirement

Answers? INTERTANKO remains unaware of:1. Grounds for the ban2. What an owner/operator needs to do to remove his ship from the list


Commercial Issues - Sustainability Project

Why a Sustainability Project?

• Charter/freight rates not covering basic vessel operating costs

• Earnings not supporting forward investment

• Charter party terms which are not balanced and at times ignored


Sustainability Project

AIM

Needs to work in good and bad marketTo help bring about changes in behaviour which make the tanker

business function better for all involvedTo change ingrained bad habits

2 concepts:1. Code of Conduct2. Payment Performance Database


INTERTANKO Code of Conduct

In order to support the fundamental objective of the industry, namely the safe and efficient seaborne transportation and delivery of the world's oil and

petrochemical resources, we as signatories of the Code of Conduct undertake to:

1. Conduct ourselves at all times in accordance with the concept of 'good faith'.2. Uphold the principles of fair and legal dealing with all stakeholders.3. Comply with the high standards of integrity and respect for others.4. Conduct business as responsible corporate members of society.5. Understand the needs of stakeholders.6. Listen and respond to all business partners in a prompt, professional and

respectful manner.7. Behave in ways that earn the trust of others.8. Uphold these principles regardless of how we are treated by others.


Payment Performance System

• Focus: late payment of freight and demurrage• Need for database of specific payment information from members• Why? To be able to prove trends which back up our arguments on late

payments

Pilot Study - Contractual Obligations NOT MET2010-2014 7000 data points

Freight - c/p says payable on completion of dischargePilot study: Typical 5-10 days Demurrage - c/p says payable on receipt owner’s invoicePilot study: Typical > 90 days

• Database satisfies anti-trust criteria


PPS: Output and Deliverables

ü Comparison of owner’s own data with INTERTANKO average

ü Comparison between charterers (in compliance with anti trust/competition rules)

ü Comparison between different tanker typesü Cost of late paymentsü Comparison of payment performance over timeü Top 20 best payment performers


PPSThis data enablesINTERTANKO to raise its head above the parapeton behalf of its Membersandchallenge charterers withtheir poor performance


Payment Performance System – Video Demo


PPS –findings so far…ØAverage freight payment 9-10 days (6-7 for

chems)ØAverage demurrage settlement 80-90 days (no

demurrage data yet for chems)ØCost to members of late freight & demurrage

payments$2.37mØBest 3 freight payers 1,2 and 3 daysØBest 3 demurrage payers 24, 29 and 35 days


Thank you

[email protected]


INTERTANKO

Introduction: Technical Issues11 December 2015

Ian HarrisonSenior Technical Manager

INTERTANKO


Technical Issues


• Classification Societies set standards for Ships’ Hulls and Essential Machinery

• Also act as Recognised Organisations on behalf of Flag States

• INTERTANKO works with IACS and its individual member's on technical issues at all levels:

• IACS Council• General Policy Group• Working Groups

• Contribute to (and initiate):• Rules• Survey Regulations (ESP)• Interpretations to Rules and Statutory Instruments

International Association of Classification Societies (IACS)


• INTERTANKO Position Paper on IACS and Classification Societies (April 2000)

• Intensive meetings between OCIMF/INTERTANKO and some leading Class Societies certifying tankers

• 2001 - LAN takes initiative for CSR on Oil Tankers

• 2001 – IACS agrees to develop CRS for Oil Tankers and Bulk Carriers

• July 2006 CSR enter into force

• Significantly raises standards for tankers (and bulk carriers)

Common Structural Rules (CSR)


Air Emissions: Emission Control Areas (ECAs)

• European Union DirectiveFollows IMO except:– After Jan 1, 2020 – 0.50% in EU waters

• California– After Jan 1, 2014 – 0.10% (24 miles)


• INTERTANKO/OCIMFRecommendations on Fuel Change Over Procedures

• API Technical Considerations for Fuel Switching

• CIMAC Guideline for Operation of Marine Engines on Low Sulphur Diesel

HAZID to avoid mechanical failure & power loss


Norway and INTERTANKO collected data from two fuel testing laboratories which together had more that 50% of all bunker deliveries worldwide

• Out of over 100,000 bunker samples, the receiving vessels have reported that on 1,468 occasions they have had machinery problems as a result of using the fuels as supplied.

• These were events resulting in machinery damage and black out events

2010: Bunker Quality


MEPC 68 Correspondence Group (2015):

• develop draft guidance for assuring the quality of fuel oil delivered for use on board ships

• consider the adequacy of the current legal framework in MARPOL Annex VI

• Round one complete:– Following “best practice” approach– Includes guidance for supplier, users and Member States– For fuel delivered to ships

Bunker Quality


• More novel fuel solutions (Hybrids)– Compatibility – Handling and storage– Safety

• Back to blending problems (as with 1% S limit)?

• More efficient, cleaner engines - technical solutions needing cleaner fuel…

2020 (2025?) and Bunker Quality (0.5% S)


THANKYOU!

WWW.INTERTANKO.COM


INTERTANKO Overview

Dr Phillip BelcherMarine Director

International Association of Independent Tanker Owners

Non-governmental orgest. 1970 in Oslo

Strict membership criteria

440 Members in 42 countries

Champion - Advisor - Forum

Observer Status at IMO, IOPC, UNFCCC, OECD, UNCTAD

Oslo - London - Washington Singapore - Brussels

INTERTANKO


2015 MembershipN

umbe

r of

Tan

kers N

umber of m

embers

1217 18

38

54

63

0

14

28

42

56

70

0

220

440

660

880

1,100

50 and above 25-49 15-24 10-14 5-9 Below 5

No tankers

No members


Membership criteria

Not all can joinBroad range of criteriaBarriers to membershipQuality entry requirementsRepresent 2/3 of independent tankers


Governance


Our committees


Our Goal

Zero fatalities

Zero pollution

Zero detentions


Strategic Plan

SafetySeafarersEnvironmentOperationsCommercial sustainability


2016 ANNUAL TANKER EVENT

Venue – Sentosa, Singapore

Dates – May 24 – 27, 2016

Events: Executive Committee MeetingCouncil Dinner and MeetingAnnual General MeetingGala DinnerTanker SeminarWorkshop


Security Issues

Dr Phillip BelcherMarine Director


Structure of talk

GoAGoGSOMSCyber security


2015


2010


Somalian Piracy

Effective combating

Naval ForcesDevelopment ashoreBest Management Practices

(Self-Protection measures)


Costs- Oceans Beyond Piracy


2015


2014


Guards

Somalia, well established routineArmed guards widely available

GoG, Only unarmed PMSCsArmed guards only from coastal State

Somalia, international naval involvementGoG, reliance on local navies


Avoiding the problem

Tender NoR earlyConsider waiting 200’ off or use another coastal states’ watersUtilise the best self protection measuresWork only with known contactsKeep flag informed of movementsConsider additional hidden tracking devicesUse security if needed


Next steps

Industry guidelines issuedContinue to work with regional partnersRegional cooperationYaoundé processGet MTISC in that processGlobal BMP


SE Asia


SOMS


Singapore Strait


Piracy global comparison


Cyber security


Cyber security incidents

Ballast on FPSOSoftware shut down on anotherVirus from tanker back to shore officeAIS tracking by pirates Cyber safety – integrated systems

Concern- nav system shutdown in SOMS


Industry guidelines

To be published end 2015Feeds into IMODemonstrate that industry is taking action

BIMCO, ICS, INTERCARGO, CLIA


Risk based approach

• Identify• Protect• Detect• Respond• Recover


Physical barriers

Stop the virus/malware getting through

Disconnect the networkStand alone non-networked computersClose USB ports and CD DrivesMinimum connectivity between ship systems and the World


Virtual barriers

Stop or contain the virus/malware

Anti virus softwareUSB and CD virus checkers


Human barriers

Educating the user

Training ship staffGetting them to think before opening/installingUnderstand the vulnerabilitiesMonitor


Thank you

Vetting - Intertanko€¦ · · 2015-12-11NIGERIA TANKER BAN Letter from NNPC dated 15 July ......

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Transcript of Vetting - Intertanko€¦ · · 2015-12-11NIGERIA TANKER BAN Letter from NNPC dated 15 July ......