Increased liabilities under OSRO contracts
- Date: 01/09/2011
Last week the Club published circular 10/11 in respect of the increased liabilities that Members may potentially incur under the amended contract terms of one of the US based oil spill response organisations (OSRO). We strongly recommend all Members who might be affected to refer to this circular and check their vessel response plan arrangements.
Under new US Coast Guard requirements, tank vessel response plans (VRPs) must cite an oil spill response organisation (OSRO) with capability for applying dispersants by air. The deadline for compliance is the 30th September 2011 when operators of tank vessels will need to incorporate such dispersant capability in their response plans.
Marine Spill Response Corporation (MSRC), one of the two largest US based OSROs, has amended its service agreement for tank vessels by addition of a 'dispersant addendum'. This addendum to their contract terms contains indemnities that do not conform to the International Group's US VRP guidelines ( published in Club Circular 6/09 –June 2009).
Clean Islands Council, the provider of compliant response services for ships calling at Hawaii, also offers a contract that does not conform with the US VRP guidelines.
For both of these organisations it will be necessary to purchase additional insurance in order to ensure full P&I coverage. Details can be obtained through the Club via your usual underwriting contact.
There is no similar requirement for non tank vessels and most VRPs for non tank vessels are therefore unlikely to refer to dispersant capability in their citation of MSRC, in which case no action is required. Members should, however, confirm this by directly checking their VRPs or consulting their plan writers.
We strongly recommend all Members who might be affected to refer to this circular 10/11 and check their vessel response plan arrangements.
Legal, navigational and environmental resources, news and updates on the development of polar shipping. Read more
US VRP Compliance
With effect from 30th January 2014 non-tank as well as tankships calling at US ports will be required to submit VRPs. For Club and other resources to assist in compliance click here
International Environmental compliance
Environmental Compliance resource page collates material in respect of International environmental compliance issues affecting our Members. Information from the Club, Loss Prevention and external resources has been collated in one place for ease of reference.
The Maritime Labour Convention enters into force in August 2013 - resources, news & advice on implementation can be found in this dedicated section. READ MORE
Essential precautions and preparation against piracy, as well as additional information and resources, loss prevention advisories and useful external web links