LP News Issue 9 - May 1998

Focusing on tanker cargo

For ease of use, this new 40-minute production, which covers crude oil, petroleum products and chemical operations, is divided into modules focusing on: the ship's suitability for the cargo; the cargo plan; preparing cargo systems; the key meeting and lining up; loading; the loaded voyage and discharging.

Planning and teamwork are the themes of Prevention Points, a durable, 52-page pocket guide accompanying the video, which gets to grips with the prevention of shortage and contamination claims. Quantity measurement and sampling are treated in practical detail. The guide, like the video, stresses the importance of actively monitoring the cargo inspector's work.

If you have not seen the video, please contact your ship operator and ask for copies to be made available to you. The operator need only contact Thomas Miller P&I Ltd, London, who will be glad to supply the copies as requested. Copies are available to non-members at a nominal charge of £25 (subject to availability).

Interactive CD on tanker incidents

The package, containing nearly double the amount of information of earlier analysis publications, concentrates purely on tanker incidents and will enable a tanker operator to assess where the Club's main tanker risk areas lie. By using this as a benchmark he should also be able to see how his own experience compares. Detailed risk profile statements - by categories such as age, size, cause, pollutant, area of incident, time, type of cargo etc in each rule group, and overall summaries by rule groups themselves - simplify this.

In addition to these risk profile statements and summaries an attempt has been made to prioritise risk in "Probability/Consequence" tables. Whilst these should be used with caution, it is hoped that they will provide a first step for Members in identifying those areas most at risk by using the combined criteria of frequency and cost.

The package has been designed to run at its best on multimedia machines. Should you not have access to a CD ROM drive, a more basic package can be obtained on disc by contacting:

Karl Lumbers,
Loss Prevention Services
Tel: +44 (0) 171 204 2307
Fax: +44 (0) 171 204 2167
E-mail: karl.lumbers@thomasmiller.com

Copies are available to non-members at a charge of £50 (subject to availability)

The Master should ensure that any bills of lading which are issued accurately describe the cargo on board, including the ports and dates of loading of the cargo. Where bills of lading have already been issued for part of a cargo on board then the Master should ensure that these are surrendered and cancelled before any new bills which cover the same cargo are issued.

A recent example was a cargo of crude oil from Mexico which was to have a `spike' of diesel oil added directly to the crude in the ship's tanks, to improve the viscosity of the crude. The two grades of oil were supplied by different parties and each shipper requested bills of lading, to which they were entitled. The Club recommended to the Master that both sets of bills of lading should be claused to clearly show that the cargoes had been commingled on board the ship. If this had not been done and a bill of lading had been issued for the diesel oil, then any subsequent holders of that bill would have been entitled to demand that the ship deliver the diesel oil, which obviously would not be possible.

Before signing any bill of lading a Master should ask himself if he can deliver the cargo exactly as described on that bill of lading at the discharge port. If not, or if the Master is in any doubt, then we recommend he contacts the P&I Club or the local correspondent before signing such a bill.

In the pink

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Chemical contamination

After the ship sailed, receivers advised that cargo in two of the storage tanks was contaminated with styrene monomer. All cargo had tested within specification on board the ship, and cargo discharged into the four other storage tanks was within specifications. At first sight it seemed that contamination must have occurred ashore, however the receivers succeeded in arresting the ship and demanding security of more than $1million.

Further investigation at the tank farm did not reveal any source of contamination. At this point the receivers' surveyor produced evidence that the ship had suffered a valve failure during the discharge operation. Following a short delay, discharge was resumed using a different line to bypass the failed valve. The surveyor produced manifold samples, taken immediately after discharge resumed, which were subsequently analysed and found to be contaminated with styrene monomer.

The ship's crew were obviously concerned to avoid down time. They probably saved a few thousand dollars in off hire by resuming discharge of the cargo so quickly. However the cost of getting the job done quickly, but not getting it done properly, was a claim which was eventually settled for over $500,000.

More valve problems

• A parcel tanker was discharging a high value food grade vegetable oil product into a shore tank. The crew took the opportunity to strip down and repair another of the ships pumps, which had last been used to discharge coal tar. When testing this pump, they failed to ensure that it was properly segregated from the lines and pumps being used to discharge the cargo. A quantity of sea water mixed with coal tar entered the ship's lines being used for cargo, and was pumped into the shore tank, leading to all of the cargo in that tank being condemned. The receivers claim for loss of the cargo and cleaning the tank cost more than $350,000.
• On a product tanker, following the completion of loading in one tank the crew failed to check that the tank valves were all closed, and when loading the last portion of cargo this tank overflowed. This cargo went into the dock and the owners were faced with a claim for clean up expenses, as well as the value of the cargo calculated to have been lost.

Valves require regular internal checking and maintainence to ensure they will operate properly.

There is considerable pressure from shippers/charterers to produce clean bills of lading for this steel to ensure that it can be sold overseas.

The Club always recommends that a pre-loading survey be carried out on any steel cargo to be shipped on board, so that the Master can be advised of proper clausing and remarks for insertion on the bills of lading for the cargo. However we recommend especially the use of a competent and trustworthy surveyor to examine steel to be loaded in former Soviet Union and Eastern European ports.

Steel coils stored in the open at a loading port in the former Soviet Union - steel is rusting and bands have already broken, the loss outer coils will become deformed when the coil is placed in a stow.

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Rain letters

Some charterers issue a `rain letter', which supposedly provides an indemnity against the consequences of carrying out loading operations in the rain. There are several problems associated with this. Firstly, the cargo being loaded and the cargo already in the cargo space may be directly wetted by the rain and suffer damage. Secondly, the rain will raise the moisture levels in the hold, leading to a substantially increased risk of condensation and damage to the cargo.

There is a prospect that if a rain letter is issued and accepted, and cargo damage occurs as a result of loading in rain, Club cover could be prejudiced as a result of the Member deliberately carrying out cargo operations in circumstances where they know cargo damage may occur. In that case the owner may have to rely on the rain letter instead of his normal Club cover. Where there is evidence that condensation may have caused the problems some charterers try to argue that any resulting cargo claim is the owners fault, arising out of failure to properly ventilate the cargo, forgetting the part they may have played in creating the conditions that led to the condensation.

The use of rain letters should be avoided.

In all cases the scrap metal cargo was found to contain significant proportions of swarf. While scrap metal is not considered a dangerous cargo under IMO definitions, ferrous metal, borings, shavings, turnings or cuttings or swarf are dangerous cargoes, classed in the IMDG code as IMO 4.2, which are liable to self heating. This self heating is particularly likely when the swarf is cut into small particles, is wet, or is contaminated with material such as oily rags, cutting oil etc.

The IMDG Code recommends that prior to loading the temperature of such materials should not exceed 55°C. If a surface temperature exceeds 90°C during loading then loading should be stopped, and the ship should not depart from port unless the temperature is below 65°C and has shown a steady downward trend in temperature. The Code also recommends that if the cargo temperature should rise to 80°C on sea passage a potential fire situation is developing and the ship should make for the nearest port.

It should be noted that both scrap and swarf cargoes absorb oxygen. Before entering any cargo holds or adjoining spaces crew should follow procedures for entry into enclosed spaces (see next article).

Owners might also wish to examine the position under any charterparty in case a ship is fixed for non-dangerous cargoes and shippers seek to load what is clearly a dangerous cargo onboard. Owners should also examine the terms of their insurances and classification society documents to ensure that they are not in breach by loading a dangerous cargo.

LOADING 'SCRAP'

WHILE THE CHARTERPARTY DESCRIBED THE CARGO AS SCRAP AND INDICATED THAT IT WAS NOT DANGEROUS, INSPECTION REVEALED THAT THE CARGO CONTAINED QUANTITIES OF PLASTICS, RUBBER AND RAGS, AND THAT MANY OF THE SMALLER PIECES WERE COATED WITH OIL AND GREASE. THE CARGO OUGHT TO HAVE BEEN DESCRIBED AS AN I.M.O. CLASS 4.2 DANGEROUS CARGO.

The second officer had been requested to take photographs of the stowage. The hatch covers had been opened and after 45 minutes he descended into the hold.

After a matter of minutes the second officer collapsed. The scrap steel had absorbed oxygen from the atmosphere in the hold. A seaman, assisting him from the weather deck, saw him collapse. He advised a colleague and together they proceeded into the hold to rescue him. On entering the hold the two seamen reportedly became faint but luckily were able to climb out of the hatch unaided.

The unconscious second officer was later recovered by men in breathing apparatus. He was rushed to hospital where he was later reported to have lost the use of his arms and legs. It is likely that he will remain in this condition for the rest of his life. This is a tragic case which could have been made even worse by the misguided bravery of the second officer's colleagues.

These tragic accidents are still occurring. All ships staff should be made aware of the dangers of entering enclosed spaces.

Pig iron imported into Calcutta

Correspondents in Calcutta have advised us of problems with the delivery of pig iron in bulk. This type of cargo is presently being imported into Calcutta, loose, in bulk and in varying sizes - 2kg to 9kg. Where there is only one receiver, problems do not seem to arise. Where there is more than one receiver, several bills of lading and the cargo is commingled, shortages are common.

It is felt the problem lies with some receivers who are taking advantage of the difficulty of apportioning the cargo. Some receivers appear to `get in first' and take the bigger bits leaving the last in line to take what is left. The inevitable shortages then being blamed on the ship.

Owners should discuss the method of delivery with shippers before loading if problems are to be avoided.

In case Members are shipping soya bean meal from Indian ports in the next few months, then we recommend that they contact us or the local correspondent at the load port for advice. The following basic steps should also be taken by owners:

1. Carefully check the cargo before it is loaded on board. Owners should be aware that in India, once the cargo is loaded, it is difficult to clause the mates receipts and bills of lading without written consent/approval from the shipper. Therefore, all testing should be carried out prior to the cargo being loaded.

2. Check temperature. Any reading more than 5°C above the ambient temperature indicates a possible problem. We recommend that the Club's correspondent be contacted if such temperatures are found.

3. Check colour. There are normally two types of soya bean meals exported. `Soya bean bright yellow flake' in which no dark shades are permitted and the more common `normal soya bean meal' in which brown flakes are permitted. If areas of cargo are found to be brick red to dark brown, we recommend that you contact the Club's correspondent immediately.

4. Check moisture. Soya bean meal is generally brought into the ports in second hand gunny bags on lorries or railway wagons. They are generally not covered with tarpaulins. The bags are discharged onto unprotected floors, not always under cover. It is recommended that if owners are suspicious of the moisture content then random samples should be taken jointly with charterers/shippers to ascertain oil, water and protein content. Again the correspondent can help here.

5. No cargo should be loaded without first seeing the certificate of analysis.

The above are very rudimentary steps, the local correspondent Pandi Correspondents Pvt Ltd

Tel: +91 22 204 3273
Fax: +91 22 284 2356
e-mail: pandi@bom3.vsnl.net.in

will be able to give more precise advice should any problems be suspected.

The cause of the problem is not yet fully understood, but it is likely that it is a combination of factors, probably exacerbated by cargoes coming out of Vietnam with a higher than normal moisture content. We understand that drying facilities in Vietnam are scarce, with only one shipper having access to proper equipment. (We have not heard of claims eminating from this shipper).

In case your ship is fixed to load rice from Vietnamese ports, we strongly recommend that you contact the Club, or the correspondent in Ho Chi Minh City, Spica Services for further advice -

Tel: +84 8 823 2527
e-mail: spica@saigon.teltic.com.vn

A surveyor recently reported that some plantations have "extreme security precautions" and refuse to allow surveyors in to carry out investigations into the pre-loading history of the fruit. It has been reported that importers of bananas in some countries may be connected to the drugs trade and other organised criminal activities. Some of them are reputedly using the proceeds from their criminal activities to buy legitimate banana cargoes, to effectively `launder' the money. The drugs and bananas they trade in may even come from the same plantations.

New traders have entered the market to supply Eastern Europe and other developing markets, but they do not have access to the major plantations, and tend to buy fruit from smaller less well run plantations. One result of this is that the fruit may not be at the optimum condition for shipment when picked, and/or be diseased and so be at greater risk of deterioration during the voyage, despite proper care of the cargo by the ship.

On the demand side, the market has not yet fully stabilised itself. There is still a tendency for these new traders to buy large quantities of fruit, which all arrive at the destination port at about the same time, causing a temporary over-supply. This can sometimes depress the local market price. Where there is a sudden surplus of bananas in a local market, and a fall in the market price, a trader may seek to reject cargo on the grounds that it has been damaged in transit.

Owners and Masters in this trade are strongly recommended to liaise with the Club to ensure that cargo is properly inspected at both ends of the voyage. Additionally the crew should ensure that proper log book and cargo records are preserved on board ship, to show that the cargo has not been damaged in transit.

(from Captain Peter Roberts, London Offshore Consultants Ltd )

It is common in the offshore industry to use I-Beams welded to the deck or hatch cover as a means to prevent loads from slipping in a seaway. Many ships are now provided with a welding machine for on board repairs, and several crew members are trained in its use. It is surprising how often ships will spend a great deal of time securing cargo with timber toms when a simple weld would do the job in a fraction of the time, and with a saving in costs too. The same technique should be used to provide additional securing points in positions more convenient to the load under consideration, rather than struggle to use less appropriate points already in place.

Another very frequent problem when lashing cargo is the incorrect use of bulldog grips. This subject has been highlighted on many occasions, but many ships' crews and shore contractors still continue to apply bulldog grips in the wrong manner. Correctly made up lashings, using grips, will withstand loads of 2/3 breaking strain of the wire used, incorrect application of grips can reduce this by 50% and more.

A short reminder:

• The wire should be whipped before it is cut, to prevent it unwinding and weakening the joint.
• The bulldog grip should be the correct size for the wire used.
• The loop of `U' bolt should be applied over the loose, tail or dead end of the wire.
• The saddle grip should be close to the eye with others spaced apart at six times the diameter of the wire grip.
• Three grips should be used for normal lashing wire (15/18 mm), four for wire 20-30 mm. Crew should check and retighten grips on a regular basis during the voyage.

Deck Cargo secured in place by welded I-beam sections, and lashed with wire.

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SHIPBOARD OPERATIONS

Repaired?

A tanker underwent extensive work at a shipyard in order to re-coat cargo tanks and cargo pipelines. She loaded her next cargo without incident, however when bunkering at the discharge port the ship suffered an oil spill. It was subsequently discovered that when pipelines were re-installed onboard ship a dresser coupling covering the gap between two sections of the bunker pipe had been placed in position such that it covered one pipe adequately, but was very close to the edge of the other pipe section. When the pipeline was put under pressure this pipe was able to spring out of the dresser coupling allowing the oil to leak onto the ship's deck. Prompt action by the ship's crew stopped the bunkering operation and avoided a spill into the river.

If a defective repair carried out by a shipyard leads to loss or damage to cargo, a carrier cannot avoid liability for this loss or damage on the grounds he entrusted the work to a competent shipyard: the duty to ensure that a repair is properly carried out rests with the owner.

In another case a ship underwent engine repairs while in dry-dock, and the main engine fuel governor was taken ashore for servicing. The governor was incorrectly set on return to the ship. When the ship sailed out of the dry-dock and the pilot ordered a slow astern movement the ship's engine went to full astern causing the ship to strike two other ships berthed nearby.

After repair work is completed onboard a ship, ship's staff should check carefully to ensure that equipment is properly restored to working condition. However, it might not always be possible to visually observe and confirm this. Therefore, for some time after such work, ship's staff should be especially alert to the possibility of a failure arising out of the repairs, and be especially prepared for any consequences thereof.

Port State Control inspectors are checking the Oil Record Book to see that all oil taken on board has been used or properly disposed of. They wish to be able to see clearly that the total oil previously taken on board, less the engine consumption for that voyage, equals the total oil remaining on board (ROB) plus the sludge ROB. It is simple arithmetic to add up the amount that should be on board compared with the amount consumed. If the figures do not tally then the Inspector will want to know where the `missing' oil has gone.

Another point is that Class Societies may not properly annotate the IOPP certificate and Supplement `B' to include the incinerator and/or the capacity of the oily water separator. Thus the ship may be incinerating the oil but according to the IOPP certificate there is no incinerator on board, and although you may protest your innocence, the Inspecting Authority assumes you have pumped overboard.

Oil record book - what to do

Study the front cover or the instructions that come with the Oil Record Book or alternatively read the MARPOL Regulations - a copy should be on board.

• Keep receipts

• Keep it neat - keep it clean
  Provided the ORBs are neat and properly record the information there is generally no problem, but if the records have not been clearly entered the result could easily be a fine. Use plenty of space for the entries. Do not try to cram every entry into one line and always leave space between entries.
• Read before you sign!
  Masters must be aware that as they sign the bottom of each page they are attesting to the accuracy and correctness of the entries. Always read carefully before you sign.

Sludge retention

Entries under C 11.1 sludge retention and the entries required at the end of a voyage (or weekly if the vessel is on short sea trade) are frequently overlooked and do not include the total ROB sludge. On arrival at any port, if the vessel has been on passage for more than seven days, then a detailed entry of all sludge ROB on a tank by tank basis is required. Vessels on short sea trade or coasting vessel make a weekly entry.

This is for two reasons:

1. It is required by MARPOL and the Oil Record Book - Section C11.

2. If any pollution was to occur during the vessel's stay in that particular port then you have written proof of what the ship had on board in terms of sludge - tank by tank. A quick sounding of these tanks by the Authorities will prove that you are not the culprit. If the entries are not made then again you might find yourself considered guilty until you can prove your innocence!

Disposal of water

Entries under D 15.2 disposal overboard of water in sludge frequently do not contain the time of stopping or the two entries required - i.e. starting and stopping of the oily water separator, or contain an inaccurate estimate of the amount disposed of overboard. Careful attention to entries and knowledge of the pumps and capacities will avoid this.

Bunkering

Entries under H 27.3 (Fuel and DO) and 27.4 (Lub oil) frequently do not give the information required by the Oil Record Book, i.e. total shipped, total shipped into each tank and total ROB after completion. Read the instructions !

Fuel oil

Many shipwrecks and strandings are caused by main engine failure. Some of these failures have been traced to poor procedures in handling the ship's fuel oil. The following is a brief reminder (provided by Mr Ron Vince of consulting engineers Edon Liddiard Vince) of factors which should be considered by watchkeeping or duty engineers to ensure that the ship's fuel system is operating correctly.

• During engine operation, the drain/sludge valves on the settling and service tanks should be regularly opened to remove water and sediments.
• Settling and service tanks should be maintained at temperatures which are sufficiently high to assist in settling of water and sediments.
• The correct gravity disc for the fuel density should be utilised in the purifier.
• The maximum purification capacity on board the vessel should be used. If two purifiers are provided they should be operated continuously, whether in series or in parallel and at a rate which just maintains the service tank continuously in full condition.
• The temperature of the fuel oil at the purifier should be maintained as recommended by the manufacturers for the type of fuel in use.
• The de-sludging of purifiers (if automatic) should be set sufficiently frequently to enable the purifiers to operate efficiently. The maximum period between de-sludging operations should not exceed four hours. If there is evidence of abnormal sludge formation the periods between de-sludging should be reduced.
• The temperature of the fuel at the viscotherm should be maintained at the correct temperature to provide fuel with a viscosity suitable for combustion. A viscosity temperature chart and recommended temperatures are normally included in the engine instruction manual.
• If difficulty is experienced attaining the correct temperature at the viscotherm, the heater or heaters should be dismantled and cleaned as soon as possible.
• Fuel oil filters should be regularly cleaned and inspected to ensure that they are in a thoroughly efficient condition, with no possibility of unfiltered fuel passing to the engine. Particular care should be taken in correctly replacing filters after removal.

NEW REGULATIONS

Garbage management

Authorities in the United States and other countries are now inspecting ships to ensure that they are complying with IMO requirements on Garbage Management. Under adopted amendments to Annex V of MARPOL 73/78 new ships over 400 gt, or certified to carry more than 15 persons are required to have Garbage Management Plans and Garbage Record Books. With effect from 1st July 1998, these requirements will apply not just to new buildings but to ships already in service.

The Garbage Management Plan must include written procedures for the collection, storage, processing, and disposal of garbage, and must identify the person onboard responsible for garbage. The Garbage Record Book must record details of all garbage that is discharged from the ship.

New UK Health and Safety regulations

From March 31st 1998, all UK registered ships and all foreign-flag ships in UK waters will be subject to the Merchant Shipping and Fishing Vessels (Health and Safety at Work) Regulations 1997. These regulations demand that an assessment is undertaken on the risks to the health and safety of workers on board ship occuring during the performance of their duties. Control of any such risks is the responsibility of the company, and the appointment of a safety officer and a safety committee is required. The ISM Code requires that similar measures are taken in the identification and control of safety on board, however for ships calling at UK ports compliance with both the Regulations and the Code is necessary. Please contact the Club if you require any further information concerning the new UK regulations.

Herry Lawford

Since the UK Club's Directors determined in the early 1990s that an increasing emphasis should be applied to loss prevention, Peter Donnellan and Nigel Carden have successively led the Loss Prevention team, which has consisted of Manager Karl Lumbers, Roger Nixon and their assistants, Janice Reed and Pam Costello. This team has produced an increasing amount of high quality material including the recent videos - Cargo Matters, Bulk Matters and now Tanker Matters - as well as regular issues of Loss Prevention News, the ISM Template and many other important publications. Karl Lumbers also produces the new Loss Prevention Bulletins, which are sent to Members (and posted to the Club's website) as soon as the problems they deal with arise. As Nigel Carden has taken responsibility for the Club's environmental and pollution work, the team has now acquired a new leader - Herry Lawford - who, like Peter and Nigel, will combine this responsibility with his other duties as the Club's Service Director. In addition, the team has been strengthened with the addition of Hugh Townson, an highly experienced member of Syndicate E5. The emphasis of Hugh's role will be on risk management and the Club's planned risk management seminars - of which more in the future.