Ship to Ship Operations

Liabilities – Risk Assessment – Case Study

The onlineSTS.net Concept
INTERTANKO European Panel Meeting 9/10/2014

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1. VESSEL NOMINATION
2. VESSEL ACCEPTANCE
3. QUALITY ASSURANCE OF SERVICE PROVIDER
4. RISK ASSESSMENT
5. COMMENCEMENT OF STS OPERATION
A. APPROACHING
B. MOORING
C. CARGO TRANSFER
D. PAPER WORK – BOL-FACT SHEET
E. UNMOORING
6. POST EVALUATION (POST ASSESSMENT)

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 Who has a contract with whom ??

A Service Provider
A Discharging Ship A Receiving Ship

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 Where is the Contract ???
Charterer/ Cargo Owner

A Service Provider
A Discharging Ship A Receiving Ship

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 So, how safe STS Operations be ensured ?

A Service Provider
A Discharging Ship A Receiving Ship

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 So, how safe STS Operations be ensured ?

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

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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 Latest OCIMF
CONCEPT Guidelines

IMO MARPOL
Chapter 8 of Annex I

ISM & TMSA

Charter Party
STS Clauses

P&I and H&M

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What is the 1. Limited expertise in STS due diligence
problem ?? practices;
2. Limited risk estimation data
3. Time constrain for decision making
4. Excessive administration burden

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 1. Adopt SCREENING POLICIES
And what is 2. Screen the SERVICE PROVIDER and POAC
your proposed 3. Assess the STS RECORDS
4. Share your Experience
solution ?? 5. Use your STS KNOWLEDGE during the
CLEARANCE Phase

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 Examination of
Clearance Clearance Reply
available records.
Request VESSEL SUITABILITY COMMITMENT WITH THE STS

Charterer Tanker Operator

Screening Policies
1. Standard & justified
procedure
2. Access to information
resources
3. Access to available past
STS records

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 ASSESSMENT PHASE

Proper and Risk Hazards

Detailed STS Location
Risk Mitigating Measures
Planning Joint Plan of the STS

Service Provider

Tanker Operator

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Proper and Detailed Planning
Tanker Operator’s task

ASSESSMENT PHASE

Risk Hazards
STS Location
Joint Plan of the STS

Service Provider

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Proper and Detailed Planning
Tanker Operator’s task

ASSESSMENT PHASE

Risk Hazards • The risk assessment should encounter all

identified hazards.
STS Location
• Consolidated past performance data should be
Joint Plan of the STS
taken into account.
Service Provider

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Proper and Detailed Planning
Tanker Operator’s task

ASSESSMENT PHASE

Risk Hazards • The STS location assessment should consider:

STS Location
Joint Plan of the STS
Service Provider
• 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

ASSESSMENT PHASE

Risk Hazards
STS Location
Joint Plan of the STS
• The Joint Plan prepared by the Service
Provider should be assessed by the Master for
Service Provider
compliance according to latest OCIMF
guidelines and STS PLAN.

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Proper and Detailed Planning
Tanker Operator’s task

ASSESSMENT PHASE

Risk Hazards
STS Location
Joint Plan of the STS
• The Service provider should be assessed with
Service Provider
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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Tanker Operator Service Provider

STS OPERATION

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 Tanker Operator

KPI’s
Assessment of STS Experience
Records Records
Statistics becomes an asset to
the Operator
Lessons Learned

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 Examination of
Clearance Clearance Reply
available records.
Request VESSEL SUITABILITY COMMITMENT WITH THE STS

ASSESSMENT PHASE

Proper and Risk Hazards

Detailed STS Location
Risk Mitigating Measures
Planning Joint Plan of the STS

Service Provider

STS OPERATION
KPI’s
Assessment of STS Experience
Records Records
Statistics becomes an asset to
the Operator
Lessons Learned

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 Tanker Operator 1

Clearance Phase

Proper & Detailed Planning

STS Operation • Due Diligence Procedures

Assessment of Records

STS Experience

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 Tanker Operator 1 Tanker Operator 2 Tanker Operator 3

Clearance Phase Clearance Phase Clearance Phase

Proper & Detailed Planning Proper & Detailed Planning Proper & Detailed Planning

STS Operation STS Operation STS Operation

Assessment of Records Assessment of Records Assessment of Records

STS Experience STS Experience STS Experience

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 Tanker Operator 1 Tanker Operator 2 Tanker Operator 3

SHARE OF INFORMATION - DUE DILIGENCE

STS Equipment Location

Performance of Vessels POAC Assessment
Assessment Assessment

Assessment of Records Assessment of Records Assessment of Records

STS Experience STS Experience STS Experience

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SHARE OF INFORMATION - DUE DILIGENCE

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SHARE OF INFORMATION - DUE DILIGENCE

Assessments

1. 464Individual POAC
2. 98 Different Locations
3. 62 Service Providers
4. 421Individual Tanker
Operators
5. 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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 Tanker Operator Becomes a member

Clearance Phase Screening Report – PART - A

Proper & Detailed Planning Assessment of STS Elements – PART - B

STS Operation 24 x 7 support to the Master

Assessment of Records OSIS – Record Keeping

STS Experience OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

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Assessment of STS Elements – PART - B
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24 x 7 support to the Master
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OSIS – Record Keeping 1
OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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Becomes a member

Screening Report – PART - A

Assessment of STS Elements – PART - B

24 x 7 support to the Master

OSIS – Record Keeping

OSIS – Consolidated Knowledge

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COMPANY LOCATION
ALMI TANKERS SA GREECE
ANDRIAKI SHIPPING CO LTD GREECE
AMPTC CO EGYPT-KUWAIT
ARCADIA SHIP MANAGEMENT CO LTD GREECE
ATHENIAN SEA CARRIERS LTD GREECE
BERNHARD SCHULTE SHIPMANAGEMENT (DE) GMBH GERMANY
BERNHARD SCHULTE SHIPMANAGEMENT CY CYPRUS
BERNHARD SCHULTE SHIPMANAGEMENT UK UK
ENESEL SA GREECE
EURONAV SHIP MANAGEMENT (HELLAS) LTD GREECE
EURONAV SHIP MANAGEMENT SAS BELGIUM
GRACE MANAGEMENT SA GREECE
IONIA MANAGEMENT SA GREECE
MARAN TANKERS MANAGEMENT INC GREECE
MARE MARITIME CO SA GREECE
MEDCARE SHIPPING SA GREECE
NAVIOS TANKER MANAGEMENT INC GREECE
RHL HAMBURGER LLOYD TANKER GMBH CO KG GERMANY
THENAMARIS (SHIPS MANAGEMENT) INC GREECE
TMS TANKERS GREECE
TSAKOS COLUMBIA SHIP MANAGEMENT SA GREECE
WESTERN SHIPPING PTE LTD SINGAPORE

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Constant
Heading Maneuvering
Vessel Vessel

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Constant
Heading Maneuvering
Vessel Vessel

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Constant
Heading Maneuvering
Vessel Vessel

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 Constant
Heading Maneuvering
Vessel Vessel

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 Maneuvering
Vessel Vessel

WHAT WENT WRONG

The 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 Maneuvering
Vessel Vessel

WHAT WENT WRONG

The 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 Maneuvering
Vessel Vessel

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 OCIMF
3. 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 Maneuvering
Vessel Vessel

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 OCIMF
3. 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

www.onlinests.net,

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