Standard Safety: Tankers, May 2016

News & Insights 26 May 2016


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Despite higher safety standards on board tankers, the number of tanker cargo-related claims The Standard Club deals with is rising, particularly on chemical and product tankers. With this analysis in mind, we have put together a wide variety of articles in this special edition, ranging from cargo-specific topics to the controversial issue of blending, plus various legal articles.

Despite higher safety standards on board tankers, the number of tanker cargo-related claims The Standard Club deals with is rising, particularly on chemical and product tankers. With this in mind, we have put together a wide variety of articles in this special edition, ranging from cargo-specific topics to the controversial issue of blending, plus various legal articles.

We hope you will enjoy reading this special edition and, as always, we welcome your comments on these articles.

Fuel oil articles  
Ship-to-ship (STS) transfers are increasingly being carried out while underway. This operation poses a greater risk than while at anchor and guidelines should be followed.

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Since the beginning of 2014, increasing numbers of oil tankers are being used as storage tankers. This raises a number of concerns, highlighted in this article.

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Taking proper samples can mean the difference between winning or losing a contamination claim. This article explains in detail the value of taking proper samples, how to ensure the equipment is in good condition and how to retain the samples on board.

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Chemical cargo articles
The carriage of sensitive chemical cargoes often results in a contamination claim. This article gives detailed handling requirements for several sensitive chemicals.

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A number of bulk liquid cargoes require the use of nitrogen blankets/inert gas during ocean-going carriage to ensure safety when carrying chemical cargoes that react in the presence of oxygen or moisture. We explain these requirements in more detail.

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This article explains the risks involved with heating cargoes during a voyage.

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FAME cargoes
An explanation of FAME cargoes, exploring the types of biofuel that are shipped and how it affects an owner’s compliance with MARPOL Annex I or Annex II regulations. 

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Cargo shortage
29% of tanker cargo shortage claims originate in Pakistan. This article explains the legal position a shipowner has in defending these claims and how charterparty terms can be amended.

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Cargo operations
One of the major causes of contamination of a chemical or product cargo is the (lack of) cleanliness of the cargo tanks prior to loading. There are specific risks to look out for while preparing the cargo tanks for loading. These include the wall wash test, cargo tank coating compatibility, and cleaning times and temperatures.

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Special operations
The new SOLAS Chapter VI regulations on blending and commingling remain controversial, and shipowners regularly ask the club if a certain cargo operation is considered blending or commingling, and whether they should comply with the charterer’s requests. This article explains the club cover with regards to blending and commingling, as well as bills of lading and letters of indemnity.

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What can an owner do if the cargo is rejected by the receivers? There are various ways in which an owner can salvage the cargo and mitigate losses.

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Legal articles
The Port Russel ruling in 2013 demonstrated the necessity to issue the NOR as specified in the charterparty. This article explores the information required and how it should be delivered.

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This article discusses when laytime commences in cases when the ship has arrived and tendered its NOR but free pratique has not yet been granted.

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One of the functions of a bill of lading is to act as a receipt for the cargo shipped. The bill must therefore contain an accurate record of the quantity of cargo carried. This is
often more complicated than it may at first appear and this article looks at two of the key issues that can arise.

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In certain cases, the master will need to issue a letter of indemnity (LOI) and there are numerous considerations to take into account. This article includes a draft LOI which can be tailored for cases when ship/shore figures differ.

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Voyage charters often include additional rider clauses requiring an owner to submit any claim they may have for demurrage within a prescribed period following completion of loading/discharge operations. This article explains why, where a charterparty makes clear provision as to how demurrage claims are to be submitted by an owner, it is essential that such provisions are strictly complied with.

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Our last article examines the court’s ruling in the Falkonera case in 2010, where the owner withheld consent for a proposed ship to receive cargo, leading to demurrage claims.

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