Oral Guide for Mariners

MARINERS GUIDE TO ORAL EXAMINATION CAPT. S.PANDA

MARINERS GUIDE TO ORAL EXAMINATION CHAPTER 1: PASSAGE PLANNING

06 – 10

1.

How will you plan a passage? Give all relevant publications/ documents etc., which are to be used in such planning 2. Which regulation relates to Safety of Navigation and Avoidance of Dangerous Situations? 3. Who checks and approves the passage planning? 4. Describe a typical checklist for passage planning. 5. How is ECDIS used in planning a passage? 6. What care must be taken when we use a combination of paper and electronic charts? 7. What are the salient differences in the planning of a passage in Open Oceans and Coastal or Restricted waters? 8. How is the monitoring of passage plan conducted? 9. Does the passage planning include pilotage waters? If so describe briefly pre-arrival, pilot on board and the outward-bound pilotage plan. 10. In a passage planning what are the elements used in the routing scheme? 11. What do you understand by Ship Reporting System and how is it used to plan a passage? 12. What role does a Vessel Traffic Service play in planning a passage?

CHAPTER 2: WATCH KEEPING 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

CHAPTER 3: BRIDGE EQUIPMENT 1. 2. 3. 4.

11 – 16

What are the duties of an Officer on Watch (OOW) on the bridge? What do understand by maintaining a lookout? What do you understand by a sole lookout? How does the OOW comply with the provisions of the COLREGS? What special precautions are to be taken by the OOW? What records must be maintained on the bridge by the OOW? What kinds of checks are required to be carried out on the navigational equipment on board? How does the OOW hand over watch? When does the OOW call the Master? What constitutes a bridge team and what are the assigned duties of a bridge team? How are new personnel familiarised with the watchkeeping? Which are the danger messages the OOW is obliged under SOLAS to broadcast to ships and near coast stations? While navigating in pilotage waters with a pilot on board describe the duties of the OOW. What basic principles the ship for communication by radio must follow? What precautions are required while anchoring and at anchor watch? What special precautions must be taken while navigating in coastal waters?

17 – 18

What are the general precautions the OOW should take in the operation and maintenance of bridge equipment? What do you understand by good Radar Practice? What aspects of the radar need to be checked while using the same for position fixing and monitoring ship's progress? What is parallel indexing when monitoring the ship's progress in a passage planning?

CHAPTER 4: STEERING GEAR ETC., 1. 2. 3. 4.

19 – 23

How is a steering gear tested? What is the difference between a track-keeping and course-keeping autopilot? How does an off-course alarm work in an autopilot? What precautions are required to be taken while using a transmitting magnetic compass (TMC) or a gyro compass for navigating a ship? 5. What types of speed measurement instruments are used on the ship? 6. What precautions are required to be taken while using an echo sounder? 7. What are the electronic position-fixing systems used on the ship and what care should be taken while using the same? 8. What is Integrated Bridge Systems (IBS)? 9. What is ECDIS and how is it used for navigation on ships? 10. What is the difference between the electronic chart format of Vector and Raster charts?

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CHAPTER 5: P&I CLUB 1. 2. 3. 4. 5. 6. 7. 8.

24 – 26

What are P and I clubs? What are the covers provided by the P and I club? What is “call money” and how is decided by the P and I Club? Who are P & I club correspondents and what are their functions? How are claims of P & I clubs paid? How does a ship owner register his claim? What are the P & I covers for pollution? Which liabilities are normally not covered by the P & I clubs?

CHAPTER 6: MARINE INSURANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

CHAPTER 7: ISM CODE 1. 2.

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

32 – 38

What are the basic principles of the ISM code? Define the following: 1. ISM code, 2. Company, 3. Administration, 4. Safety Management System, 5. Document of Compliance, 6. Safety Management Certificate, 7. Objective Evidence, 8. Observation, 9. Nonconformity, 10. Major Non-conformity, 11. Anniversary Date, 12. Convention. What are the objectives of SMS? What are the functional requirements for a SMS? What is the Safety and Environmental Protection Policy? What are the responsibilities and the authorities of the company? Who is a DPA and what are his responsibilities? What are Master's responsibilities and authorities? How does the company ensure proper resources and personnel are provided on the ship? How is the ISM code implemented on the ship? How is the certification and verification done for ISM? Under the ISM Code define a Safety Officer and a Safety representative and their duties. What is a safety committee and what is its function? What are the duties of the Company and Master under the Code of Safe Working Procedures on board?

CHAPTER 8: ISPS CODE 1. 2. 3. 4.

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

27 – 31

What types of marine insurance covers are required by ship owners and ship managers? What kind of insurance covers are there for Time and Voyage Charterers? What are the basic principles of marine insurance? Differentiate between a) Actual Total Loss and b) Constructive Total Loss. What is particular average loss in marine insurance? What is general average loss under marine insurance? What constitutes common maritime adventure? What are the essential elements of a general average act? What are the sacrifices or expenditures normally allowed in a general average act? What do you understand by sacrifices extraordinarily, intentionally and reasonably made? How is the general average adjustment made? What documents and information are required to make a claim?

39 – 47

What is ISPS code? What are the objectives of the ISPS code? In order to achieve the objectives what functional requirements are embodied in the code? Define 1. Convention, 2. Ship Security Plan (SSP), 3. Port Facility Security Plan (PFSP), 4. Ship Security Officer (SSO), 5. Company Security Officer (CSO), 6. Port Facility Security Officer (PFSO), 7. Security Level 1 (SL1), 8. Security Level 2 (SL2) and 9. Security Level 3 (SL3). Which ships' are covered under ISPS code? What are the responsibilities of the CG under this code? What is DoS and when is it required to be completed? What is the obligation of the company under the ISPS code? What activities are allowed under different Security Levels, SL1, SL2 and SL3 on ships? How is a Ship Security Assessment (SSA) done? How is a Ship Security Plan (SSP) made? What records are required to be kept on board for the SSP? What are the duties and responsibilities of a CSO? What are duties and responsibilities of a SSO? What activities are allowed under different Security Levels, SL1, SL2 and SL3 in a port? How is the Port Facility Security Assessment (PFSA) done? How is the Port Facility Security Plan (PFSP) made? What are the duties and responsibilities of a PFSO

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19. 20. 21.

What is the certificate issued to a port under the ISPS code? For the purpose of ISPS code which amendments were brought about in the SOLAS 1974? What are the functional requirements of a Ship Security Alert System (SSAS)? In the Indian context, what happens when the SSAS is alerted on board? 22. What do you understand by protocol of communication under the ISPS code?

CHAPTER 9: PORT STATE CONTROL 1. 2. 3. 4. 5. 6.

CHAPTER 10: PORT OF REFUGE 1. 2.

6. 7. 8. 9.

55 – 61

What is STCW 95 and how is different from STCW 78? What is a "White List"? What are the certificates required for a seafarer under the STCW code? What are the mandatory requirements for certification of deck and engineer officers? What are the functions for deck examination as defined by STCW 95 and what are the levels of responsibilities? What are the general provisions of sea service requirements as per STCW code? What are the training and certification requirements for 1. Tankers, 2. Gas and Chemical Carriers, 3. Ro-Ro Passenger Ships, and 4. Passenger ships other than Ro-Ro Ships. What are the requirements for revalidation of certificate of competency as per STCW Code? What are the safe manning regulations as per STCW 95 and the Code?

CHAPTER 12: MASTER AND HIS RESPONSIBILITY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

52 – 54

What constitutes a port of refuge? What are the typical procedures followed by a port for a ship calling a port of refuge?

CHAPTER 11: STCW 95 1. 2. 3. 4. 5.

48 – 51

What is Port State Control? What are its primary responsibilities? Which are the eight PSC regimes in operation worldwide? What the general criteria are as laid down by the PSC MOUs? Which certificates and documents are to be inspected for the PSC? What is 'Equasis' and what are its main principles? When can a ship be detained under the PSC code?

62 – 67

How is the command of a ship taken or handed over? How does a successor take over command of a ship in case of an emergency? What are the chief responsibilities of a master? What is a crew agreement and what are the master's responsibilities regarding it? What is a breach of crew agreement and how is it dealt with? What are the guidelines for drug and alcohol abuse on board? Which conditions may constitute a criminal liability for a seafarer? What are master's actions in response to complaints from seamen? What are the actions of a master if the crew goes on strike? What procedures are required to be followed in case of a death on board?

CHAPTER 13: CHARTER PARTY 1. 2. 3. 4.

68 – 81

What is a liner trade and how is it different from a tramp trade? How are ships in the dry bulk and tanker market categorised? Which parties are involved in transportation of goods by sea? Outline the meaning of following International Trade Terms (INCOTERMS): EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU & DDP. 5. Explain the terms FOB and CIF in detail and their advantages. 6. What is a Documentary Credit System (DCS) between a buyer and seller of goods? 7. What are the different charters? Name salient features of a) Time, b) Voyage and c) Bareboat charter parties. 8. What is a sub-charter? 9. What is a contract of affreightment (COA)? 10. What are the duties and responsibilities of a shipbroker? 11. Given below are some of the chartering terms in abbreviations used by shipbrokers: 12. What are the salient clauses of a voyage charter party? 13. What is “ World Scale “ and how is it used for reference to fix a tanker on charter? 14. What are the salient features of a time charter party?

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CHAPTER 14: BILLS OF LADING

82 – 88

1. 2. 3. 4. 5. 6.

What is a Bill of Lading and describe its functions? How will you describe B/L as a receipt for goods? How will you describe B/L as evidence of contract? How will you describe B/L as a document of title? Describe different types of B/L. Differentiate between a Clean and Dirty B/L. What is a letter of indemnity (LOI) and what precaution must be used before accepting the same? 7. What is a Mate’s Receipt? 8. What precautions must be taken while signing a B/L? 9. How does the master give delivery of cargo on presentation of the original B/L? 10. What is a seaway bill? 11. What are the typical problems related to B/L? 12. What are the rules governing carrier’s obligations and liability?

CHAPTER 15: COGSA 1971-1992 1. 2. 3. 4. 5. 6. 7. 8. 9.

CHAPTER 16: INTERNATIONAL MARITIME LAW 1. 2. 3. 4. 5. 6. 7.

95 – 99

What are International law, Customary law and Treaties? What is UNCLOS and what are the provisions incorporated in it? What is the nature and purpose of IMO? What are the main organs of the IMO? Describe the IMO instruments e.g. Conventions, Protocols, Amendments, Recommendations, Codes and Guidelines and Resolutions Give brief descriptions of various chapters of SOLAS 1974. How is a Convention developed, entered into force and amended in the IMO?

CHAPTER 17: SHIP REGISTRATION 1. 2. 3. 4.

89 – 94

What are the salient features of the Carriage of Goods by Sea Act 1971 (COGSA 71)? What are the salient features of the Carriage of Goods by Sea Act 1992 (COGSA 92)? What are the provisions for carriage of deck cargo How is the rule of General Average (GA) act applicable in case of a deck cargo? What is IMDG Code? What are the classes of Dangerous Goods? How will you accept any bulk cargo other than grain for loading on board? What are the International Grain Code requirements? What are the hazardous bulk cargo documents needed?

100 - 103

What are the provisions for ship registration? What are the purposes and benefits of ship registration? What is the IMO identification number? What is a classification society? Is it mandatory? What are the advantages of having a ship under class?

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INDEX CHAPTER 1 PASSAGE PLANNING Q.1. How will you plan a passage? Give all relevant publications/ documents etc., which are to be used in such planning. Ans. Passage planning is done from departure Berth to Berth on arrival. We come to know of the berth at destination port through the owner, the Master or the destination agent. Passage planning is through (a) Planning, (b) Execution and (c) Appraisal. It is a dynamical process and needs constant monitoring and reviewing as per the situation on hand e.g. in TRS weather conditions courses laid down need to be changed and evasive actions taken depending on the circumstances of the case. Following publications are referred for a passage planning: • Chart Catalogue, • Admiralty List of Radio Signal, • Admiralty Tide Tables, • Guide to Port Entry, • Notices to Mariners (latest), • Marine Observer's Hand Book. Chart Catalogue gives the names and the numbers of charts, which will be required for the particular passage. If any charts are not available on the ship or any chart not corrected for the latest Notices to Mariners, the new charts are to be ordered or corrected as the case may be, before laying down the courses and distances on them. Great care must be taken to ensure the largest scale charts available are used. While transferring the courses from one chart to another, ensure that positions, course and distances are accurate. Recheck all courses and distances as laid down. It is a good idea to have a small notebook with us to write down the courses and distances from point to point along with their latitudes and longitudes for our record. These may be useful in future or in case of a court of enquiry. Q.2. Which regulation relates to Safety of Navigation and Avoidance of Dangerous Situations? Ans. SOLAS regulation V/34 relates to Safety of Navigation and Avoidance of Dangerous Situations. It is applicable to all ships, which proceed to sea. SOLAS V/34.2 provides that the voyage plan must identify a route which: • takes into account any relevant ship's routing systems; • ensures sufficient sea room for the safe passage of the ship throughout the voyage; • anticipates all known navigational hazards and adverse weather conditions and expected current, tide, wind, swell and visibility; • takes into account the marine environmental protection measures that apply, and avoids as far as possible , actions and activities which would cause damage to the environment. 6 of 101

INDEX • • • • • • •

imposes routing constraints by draft or cargo on board; identifies areas of high traffic density; anticipates on shore sets due strong currents or tide; requires additional sea room for tank cleaning or pilot embarkation etc.; regulates ship routing or ship reporting systems; alters course at positions indicated on the chart taking the speed and turning circle of the ship into account; checks the reliability of propulsion and steering systems.

Q.3. Who checks and approves the passage planning? Ans. The master should check that the tracks so laid for planning a passage are safe and the chief engineer should verify that the ship has sufficient fuel, water and lubricants for the intended voyage. The responsibility of passage planning is normally entrusted to the 2nd officer on board. Q.4. Describe a typical checklist for passage planning. Ans. Every Company has a typical voyage plan checklist, which may be in the following format: • Charts used : Large scale for coastal waters Small scale for ocean passages Planning chart Routing, climatic, load line zone charts • Publications used: Sailing directions/ pilot book Guide to port entry List of lights Radio signals Tide table tidal stream atlas • All Charts and publications are corrected? By ordering new charts Notices to mariners Local area warning NAVAREA warning • Points considered? Drafts on departure and arrival Ship's cargo imposing any passage restrictions Ship's special operation requirements • Points checked? Ship Routing System, Ship Reporting System and Vessel Traffic Services (VTS) Weather charts of the area • Is the vessel under weather routing for the passage? • For arrival port: Large scale charts studied? 7 of 101

INDEX Ship/ Shore, Master/ Pilot exchange form ready? Pilot card updated? Port guide studied for arrival/ berthing restrictions? • Other checks: Q.5. How is ECDIS used in planning a passage? Ans. Passage planning with electronic navigating systems is no different, except that over reliance on the systems could take away the basic seamanship aspects of the mariner and non performance of any of the instruments may lead to confusion. Electronic Display and Information System (ECDIS) can be of Raster Chart Display Systems (RCDS) displaying Raster navigational charts (RNC), which can be used in conjunction, with paper charts. When passage planning uses ECDIS, it is prudent for the navigator to draw a Safety Contour around the ship. Crossing the safety contour e.g. shallow water, prohibited zone or a traffic separation scheme will be automatically indicated by the ECDIS. Q.6. What care must be taken when we use a combination of paper and electronic charts? Ans. When we use a combination of paper and electronic charts, care should be taken that all paper or all electronic charts are used at critical points of landfall, port arrival and pilotage etc. When transferring the details from a paper chart to an electronic chart display system or vice-versa the navigator should ensure that: • positions are transferred to and are verified on, electronic charts of an equivalent scale to that of the paper on which the position was originally plotted; • any differences in chart datum is applied to the transferred position; • the plan is rechecked for accuracy before being used. Q.7. What are the salient differences in the planning of a passage in Open Oceans and Coastal or Restricted waters? Ans. Open Oceans use small-scale charts, gnomonic projection ocean charts for plotting great circle routes. Load line zone charts are used to ensure Load Line rules are complied with. Ocean current charts are used to take advantage of the favourable currents. Ice movements are noted to keep clear of them. Frontal depressions and poor visibility can restrict the northerly or southerly latitudes for navigation. Seasonal Tropical Revolving Storms (TRS) where encountered are to be avoided and enough searoom provided to steer clear of the same. Weather routing services are to be followed. Landfall targets are identified with their likely radar/ visual ranges. In respects of lights, their rising and dipping ranges and arc/ colours along with their sectors are identified. Coastal or restricted waters have limited time available in taking corrective measures. Manoeuvring characteristics of the ship and its limitations, if any, particularly with reference to the propulsion and the steering systems must be taken into consideration before planning these passages. Ship squat can reduce underkeel clearance at speed and must be considered very carefully.

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INDEX Ship routing schemes and reporting systems along with route and vessel traffic services should be strictly followed. Coastal weather bulletins including gale warnings may require changes in the passage plan. Q.8.How is the monitoring of passage plan conducted? Ans. In the oceans, monitoring of a passage plan is easier as it involves restructuring a course based on information received on weather, ice, fog, frontal depression or tropical storms with ample searoom. In the coastal or restricted waters the monitoring is highly critical especially the time to place the wheel over at the end of a track and ensuring that the ship is on the new track after the alteration of course. Distinctive features e.g. transit bearings, bearing line of conspicuous object etc., can be effectively used. Visual, Radar and Echo sounder information become an integral part of a passage plan. Radar clearing ranges and bearings are effectively used. Parallel indexing can be used to check that the ship is maintaining the course and not drifting to port or starboard. Q.9. Does the passage planning include pilotage waters? If so describe briefly pre-arrival, pilot on board and the outward-bound pilotage plan. Ans. Passage planning includes pilotage waters. Pre-arrival plan should be for anchoring or aborting port entry. The plan should also include contingency measures such as equipment failure, poor visibility etc. The Pilot Card should be updated. The card contains information on ship's draft, speed, turning circle and a checklist of all equipment available and working. The ship initiates a pre-arrival information exchange about 24 hours before her ETA pilot point. The Ship to Shore Master/ Pilot Exchange and Shore to Ship Pilot/ Master Exchange forms can be used. These information exchanges can be by facsimile transmission and will vary from ship to ship, port to port. It is better to keep them to the basics and have them the minimum possible to avoid confusion. Where passage can last for many hours situations may change, which will need changing of the plan. When pilot comes on board, he will have ample time to discuss the berthing with the master of the ship. The pilot should be handed over the Pilot Card and shown the wheelhouse poster, which provides the summary of the manoeuvring information of the ship. The outward-bound passage plan can be discussed with the inward pilot and made accordingly. Q.10. In a passage planning what are the elements used in the routing scheme? Ans. Elements used in routing scheme include: • traffic separation scheme aimed at separating opposing traffics; • traffic lane, which defines limits of one-way traffic flow; • separation zone besides which ships are proceeding in opposite or near opposite direction; • roundabout within a defining limit having a separation point or circular zone;

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INDEX • • • • • •

inshore traffic zone of a designated sea area between the adjacent coast and the boundary of the traffic separation scheme; recommended route often marked by buoys at the centre with undefined width; deep water routes accurately surveyed for clearance of sea bottom and submerged obstacles if any; archipelagic sea lane for expeditious navigation in archipelagic waters; precautionary areas where ships must navigate with great caution; areas to be avoided by certain classes of ships and where navigation is very hazardous.

Q.11. What do you understand by Ship Reporting System and how is it used to plan a passage? Ans. Ship Reporting System has been introduced by several countries in the world to keep a track of any ship in and around their coasts by radio, radar or transponder. Uses of Ship Reporting System form a part of passage planning. Ship Reporting System is used to get or exchange information about ships, such as their position, course, speed and cargo in addition to monitoring passing traffic. These information are useful for search and rescue and prevention of pollution. Ship Reporting Systems can be adopted internationally by IMO. All ships or certain category of ships or ships carrying certain cargoes will use such systems. It is the obligation of the ship and the master to comply with the requirements of a Ship Reporting System and report to the appropriate authorities all information that is required. The master will also give additional reports upon leaving or entering a Ship Reporting System. List of radio signals provides all details of Ship Reporting System. Details of IMO adopted Ship Reporting Systems are contained in Part G of the IMO publication Ships' Routing updated by the 1996 Amendments to Ships' Routing. Q.12. What role does a Vessel Traffic Service play in planning a passage? Ans. Vessel Traffic Service (VTS) is basically introduced in ports and their approaches to monitor the compliance of a ship with the local regulations. It also plays an important role in optimising traffic management. Vessel Traffic Service may be mandatory within the territorial seas of a coastal state. On board a ship Vessel Traffic Service should form a part of the passage planning. Specific radio frequencies are to be given for the ship to monitor navigational or other warnings and seek advice on when to proceed to areas where traffic flow is regulated. Vessel Traffic Service requirements are marked on the relevant charts. For more specific information sailing directions and list of radio signals should be used.

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INDEX CHAPTER 2 WATCHKEEPING Q.1. What are the duties of an Officer on Watch (OOW) on the bridge? Ans. The primary duties of an Officer on Watch are (i) Watchkeeping, (ii) Navigation and (iii) GMDSS radio watchkeeping. Officer on Watch is a representative of the master and is primarily responsible at all times for the safe navigation of the ship and for complying with COLREGS. As Officer on Watch, he is in charge of the bridge team for that watch, until properly relieved of his duty. The Officer on Watch shall ensure that master's standing orders are fully complied with and bridge watch manning levels are safe at all times under prevailing circumstances and conditions. Watchkeeping duties include but are not limited to the following: • maintaining a proper look out and general surveillance of the ship; • collision avoidance in accordance with COLREGS; • recording bridge activities and making periodic checks on all navigational equipment in use; • follow procedures for handing over watch as per shipboard operation procedures; • calling for support on the bridge as and when required; • execute the passage plan safely and monitor the progress; • maintain continuous GMDSS radio watch including distress signals if any; • be conversant thoroughly with the speed, handling characteristics, stopping distances and turning circle of the ship; • must not hesitate to use helm, engines or sound signalling apparatus at any time; • must be fully conversant with all safety equipment on board and their usage particularly with reference to prevention of pollution and emergency situations; • should not leave the bridge unattended at any time. There are additional duties for the Officer on Watch that will be entrusted to him depending on his rank. He must be fully familiar with them e.g. cargo monitoring, general communications, control of machinery, supervision and control of safety systems etc. These additional duties must not interfere with the primary duties of the Officer on Watch. Q.2. What do understand by maintaining a lookout? Ans. COLREG places a mandatory provision for keeping a proper lookout on ship at all times. It must serve the following purpose: • maintaining a continuous state of vigilance by sight and hearing as well as by all other available means in order to assess any significant change in the operating environment; • appraising at all times the risk of collision, stranding and other dangers to navigation; • detecting ships or aircraft in distress, shipwrecked persons, wrecks, debris or other hazards to safe navigation.

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INDEX Lookout duties cannot be shared with other works e.g. a helmsman on duty, while steering should not be considered a lookout man unless the ship is small and he has the unobstructed all round view from the steering position. Ships with fully enclosed bridges should have such provisions that sound reception from all audible sounds on the open deck is clear at all times inside the bridge. Q.3. What do you understand by a sole lookout? Ans. Under the STCW code, the OOW may be the sole lookout in the daytime under the following conditions: • careful assessment has been made and established without doubt that it is safe to operate with a sole lookout; • full account has been taken of all relevant factors, including, but not limited to state of weather, visibility, traffic density, dangers to navigation in the proximity, navigating in or near traffic separation schemes etc.; • assistance is immediately available to be summoned to the bridge when any change in situation so requires; • clear guidelines are incorporated in the shipboard operational procedures manual. Q.4. What special precautions are to be taken by the OOW? Ans. The OOW must maintain a very high level of general awareness of day-to-day operation of the ship. It will include general watch over the ship's decks to monitor, where possible people working on deck, and any cargo or cargo handling equipment. Special care and additional watches are to be kept in places where there is risk of piracy or armed attack. Whenever people are working aloft or in the vicinity of radar antennae, radio aerials and sound signalling apparatus, the OOW should be particularly observant. Warning notices are to be posted at appropriate places and all concerned should be informed to take adequate precautions and inform the OOW once the assigned work is completed. Q.5. How does the OOW comply with the provisions of the COLREGS? Ans. Compliance of the provisions of the COLREGS means not only the conduct of the vessels under steering and sailing rules, but displaying the correct lights, shapes and making the correct sound and light signals. Vessels may not be displaying their correct lights/ shapes or the lights/ shapes may not be visible due certain restrictions of the ship's structure when approached from a certain direction. It is therefore always prudent to allow extra searoom as long as it is safe to do so. In all cases early and positive action should be taken when close quarter situation exists and to avoid collision. Once an action is taken the OOW must ensure that the action so taken has the desired effect. Valuable time should not be wasted in trying to contact the other vessel seeking collision avoidance action from the other party. It is not possible to have confirmed and positive identification of the other party and even so misunderstanding in communication could arise leading to disastrous results.

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INDEX Risk of collision in a clear weather can be detected by taking frequent compass bearings of the other approaching vessel/s. If the bearings are study risk of collision exist. However risk of collision may still be there when approaching very large ships, ships under tow or ships at close range even when there is an appreciable bearing change. In restricted visibility radar and radar plotting can be effectively used to assess risk of collision. However over reliance on electronic gadgets can be dangerous and the OOW should take every opportunity in clear weather to practice radar plotting and check and improve on his efficiency. Q.6. What records must be maintained on the bridge by the OOW? Ans. The OOW must maintain a proper and formal record of all-navigational activities and incidents, which are of importance to safety of navigation. OOW is provided with appropriate logbooks. Besides notations in the logbook, paper records from the course recorders, echo sounders, NAVTEX receivers etc. should be retained at least for the duration of the voyage marked with date and time. All information on position, course and speed should be recorded in the bridge logbook or in an approved electronic means in such a manner that the ship's actual track can be reconstructed at any time later. Q.7. What kinds of checks are required to be carried out on the navigational equipment on board? Ans. The OOW must carry out the operational checks on navigation equipment when preparing for sea and prior to port entry. It is important for the OOW to know that full engine power and the manoeuvrability of the ship is available especially before entering restricted coastal waters after a long ocean passage. Routine checks include: • daily manual steering at least once a watch when the automatic pilot is in use; • magnetic and gyro compass errors once a watch if possible and after every major change of course; • synchronisation of gyro repeaters including engine room control and emergency steering position; • electronic equipment for accurate functioning and proper synchronisation with the bridge to which it is connected; • proper configuration of the electronic equipment as set is not changed; • in built check systems of the electronic equipment to have a periodic review of the health of the system; • comparison with other equipment or independent sources to ensure good and adequate performance at all times; • helm and engine room RPM indicators to ensure that helm and engine orders are followed.

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INDEX Q.8. How does the OOW hand over watch? Ans. The OOW should not hand over the watch if he has reasons to believe the relieving officer is unfit due to illness, inebriated due to alcohol/drug or unable due to fatigue to take over the watch. He must inform the master of the ship immediately. The relieving OOW must come at least 10/15 minutes before his watch to familiarise himself with the night vision and get satisfied with the ship's position, its course and speed, engine controls, visibility and that of any dangers to navigation he may encounter in his watch. The relieving OOW must also ensure that his bridge team for the new watch is properly familiar with the night vision and fit for duty. If any avoiding action is being taken at the time of relieving of duty, hand over should be deferred till such time such action is completed. Q.9. When does the OOW call the Master? Ans. Guidance on specific circumstances for calling the master is given in the shipboard operational procedures. Standing and bridge orders by the master support it. All companies have a checklist giving circumstances and situations where the master should be called. A typical checklist could be in the following format: • restricted visibility is encountered or expected; • traffic conditions or movement of other ships are causing concern; • difficulties are encountered in maintaining course; • failure to sight land or a navigation mark or change of sounding at the appropriate time; • conversely if sighted land or a navigation mark or change of sounding at an inappropriate time; • breakdown of machinery, propulsion, steering gear or any essential navigational equipment failure; • alarm, indicator of any malfunction especially radio equipment; • heavy weather and suspicion of any damage due to it; • navigational hazards encountered, e.g. ice or derelict; • any other emergencies or if in doubt. Once on the bridge, the master must take over the total control of the ship and inform the OOW in clear and unambiguous terms. The fact that the master has taken command on the bridge should be recorded in the logbook. Q.10.What constitutes a bridge team and what are the assigned duties of a bridge team? Ans. A bridge team is assigned specified duties, which can be performed effectively by the individuals in the team. Duties are prioritised and each member must understand his tasks and duties so assigned. A continuous and positive reporting system of events must be part of the assignment of the bridge team to monitor the performance. The team should be able to take actions appropriate to the circumstances and conditions if any deterioration of the performance takes place. The team should be able to co-ordinate and communicate with other effectively at all times and especially so during emergency situations. It should be able to support each 14 of 101

INDEX other and anticipate dangerous situations arising at any time. The bridge team must have a plan, which must be well understood by all members of the team having good situational awareness. The development of an error chain should be avoided and actions taken to break such error sequence. Q.11. How are new personnel familiarised with the watchkeeping? Ans. Under the ISM Code and the STCW Convention, every personnel joining the ship must familiarise himself with the ship specific equipment and associated ship procedures as laid down in the shipboard operational procedure manual. He must observe, practice and understand the limitations of the navigational aids and systems being used and continually monitor their performance. He must use the dead reckoning position to check the position fixes obtained from GPS and /or sextant observations. Over reliance on automated electronic navigational equipment should be avoided at all times. Visual navigational aids like bearing of lighthouses etc. should always be used to support electronic position fixing. Q.12. What special precautions must be taken while navigating in coastal waters? Ans. Following steps should be followed along with any special instructions from the master: • most suitable large scale chart should be used; • position of the ship should be fixed at frequent intervals; • all relevant navigational aids must be positively identified before they are used; • ship's routing scheme and ship reporting system must be followed scrupulously; • OOW must be aware of the draft of the ship with relation to the depth of water for squat, which may have very critical effect on the safe navigation of the ship; • he must be fully aware of the stability conditions of the ship and its manoeuvring characteristics; • parallel indexing while alteration of course in restricted waters. Q.13. While navigating in pilotage waters with a pilot on board describe the duties of the OOW. (Refer to Q.9 of Chapter 1) Ans. Pilot is a part of the bridge team once he embarks and arrives on the bridge. Pilot has specialised knowledge of navigation in local waters. Depending on the local pilotage laws, the master may delegate the conduct of the ship to the pilot, who will navigate the ship in close co-ordination with the master. It is important that responsibilities of the master and the pilot are clearly agreed and mutually understood. There should be no ambiguity. The presence of the pilot does not relieve the master or the OOW of their duties and obligations for the safety of the ship. Passage plan made on board for pilotage waters must be discussed with the pilot and agreed or amended as the case may be in a safe place with sufficient time and sea room. Safe passage must be monitored at all times by regularly fixing the position of the ship particularly after each alteration of course and observing the squat and keel clearance

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INDEX carefully. Verbal orders from the pilot must be repeated and executed correctly. These will include the helm and engine orders and the OOW must ensure that rudder angle and the RPM indicator confirm to the order so given. If a master leaves the bridge, the OOW should not hesitate to clarify any doubt with the pilot and if not satisfied with the situation call the master urgently. In high traffic density or restricted visibility, there should be a helmsman steering the vessel to assist the OOW. Q.14. What basic principles the ship for communication by radio must follow? Ans. The ship for radio communication must follow the following basic principles: • top priority is given to distress, urgency and safety communication; • interference with other radio users should be avoided; • proper frequencies should be used for the correct purpose. Q.15. What precautions are required while anchoring and at anchor watch? Ans. Anchoring position is predetermined with careful consideration to the swinging circle based upon the length of cable used. Landmarks and transit bearings should be selected for easier monitoring of the position of the ship. Appropriate lights and shapes must be displayed according to the COLREGS and the local regulations. OOW must check the anchorage position to ensure that the ship does not drag its anchor or move too close to another anchored vessel. A proper lookout must be maintained at all times and inspections round the ship carried out especially in waters where there is a risk of piracy or armed robbery. The master should immediately be notified in case any of the above incident or bad weather, bad visibility or the ship is suspected to be dragging her anchor. Q.16. Which are the danger messages the OOW is obliged under SOLAS to broadcast to ships and near coast stations? Ans. Under the SOLAS, the OOW is obliged to broadcast the following danger messages: • dangerous ice; • a dangerous derelict or any other direct danger to navigation; • a tropical storm; • sub-freezing air temperatures associated with gale force winds causing severe ice accretion or superstructures; • winds of force 10 or above on the Beaufort scale for which no storm warning has been received. The safety signal should be used when announcing danger messages.

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INDEX CHAPTER 3 BRIDGE EQUIPMENTS Q.1.What are the general precautions the OOW should take in the operation and maintenance of bridge equipment? Ans. OOW must be completely familiar with all the navigational and communications equipment, charts and publication on board. He must be fully acquainted with the operating manual of each equipment, particularly with regard to setting up the controls and procedures to be followed in case of equipment failure. Periodic checks must be conducted on the equipment and defects, if any must be brought to the notice of the master and entered in the logbook. Preventive maintenance must be carried out as per the instruction manual. All charts and publications for the intended voyage should be kept on board and corrected up to date. Q.2. What do you understand by good Radar Practice? Ans. The radar should be kept running at all times and when using the same, the OOW should keep the following points in mind: • quality of performance should be continuously monitored through a performance monitor, if fitted; • heading marker should be correctly aligned checking it with the fore and aft of the ship and the compass heading; • small vessels, ice and objects like containers may not be detected by the radar; • video processing techniques should be used with care; • careful use of clutter control to avoid obscuring of objects by sea or rain clutter; • shadow and blind sectors should be known to the OOW and adequate precautions taken while navigating by radar; • practising in clear weather for radar collision avoidance can be greatly helpful in restricted visibility, radar observations and target vectors can be visually checked; • range scales depend on the traffic density, speed of the ship and how often the radar is being observed; • detection of small targets is better at short range; • plotting of targets is better at longer range; • use of long range is advisable to give advance warning of approaching vessels and land; • safe speed of a ship is dependant on the above factors; • closest point of approach (CPA) of a target is determined by the course, speed and aspect of the target to indicate whether or not there is a risk of collision; • accuracy of the CPA plot is dependant on the accurate input of own ship's course and speed, yawing ship or inaccurate speed can make a head-on target look like passing clear; • multiple plotting must be done to have greater accuracy; • change in course or speed of either ship or target may loose accuracy of plotting;

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INDEX •

change of relative bearing of the target can not be assumed as no risk of collision.

Q.3.What aspects of the radar need to be checked while using the same for position fixing and monitoring ship's progress? Ans. When using radar for position fixing and monitoring ship's progress, the OOW must check: • the overall performance of the radar; • the identity of the fixed object being observed; • gyro error and accuracy of the heading line alignment; • accuracy of the variable range marker (VRM), electronic bearing lines (EBL) and fixed range rings; • the parallel index lines are set correctly. Q.4. What is parallel indexing when monitoring the ship's progress in a passage planning? Ans. Parallel indexing provides a method on the radar of verifying that the ship is maintaining a safe course to pass a fixed object, such as a head landmark at the desired distance. Parallel indexing does not substitute position fixing of a ship at regular intervals. The technique requires an index line to be drawn to pass through the radar echo of a fixed object at a tangent to a fixed VRM decided as the safe distance. The index line will line up parallel to the ground track that the ship will need to follow to maintain a safe distance while passing. Parallel indexing can be used in both true motion and relative motion screen of the radar. In case of true motion display the echo remains stationary and the edge of VRM should move along the index line. In case of relative motion display, the echo of a fixed object moves in a direction and speed reciprocal of own ship's speed on the ground and the echo should move along the index line.

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INDEX CHAPTER 4 STEERING GEAR AND ELECTRONIC POSITION-FIXING SYSTEMS Q.1. How is a steering gear tested? Ans. After prolonged use of autopilot and before entering coastal waters the steering gear must be tested at all the manual steering positions on the bridge. In coastal waters more than one steering gear power unit, when such units are capable of simultaneous operation should be used. Within 12 hours before departure from a port, check and test the steering gear along with the operation of the following: • the main steering gear; • the auxiliary steering gear; • the remote steering gear control systems; • the main steering position on the bridge; • the emergency power supply; • the rudder angle indicator in relation to actual rudder position; • the remote steering gear control system power failure alarms; • the steering gear power unit failure alarms; and • automatic isolating arrangements and other automatic equipment. The checks and test should include the full rudder movement, the timing of such movement from hard-over to hard-over and the operation of the means of communication between the bridge and the steering gear compartment. All OOW must ensure they are familiar with the operation or maintenance of the steering gear along with the change over procedures. Emergency steering drills should take place at least in every three months. It should include direct control from within the steering gear compartment, the communication procedure with the bridge and, where applicable the operation of alternative power supplies. The dates/ time of testing including details of emergency steering drills carried out are to be recorded in the logbook. Q.2. What is the difference between a track-keeping and course-keeping autopilot? Ans. Track-keeping autopilot allows the ship to follow the track laid for a passage, whereas course-keeping autopilot ensures that the ship points to the right direction. Wind and current for example can move the ship sideways and off its track, while the ship's heading remains same. In a track-keeping mode the autopilot should perform turns automatically between track legs, using either pre-set turn radius or rate of turn values. If there is a malfunction in track-keeping mode, an alarm should come and the system should automatically revert to course-keeping mode.

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INDEX Q.3. How does an off-course alarm work in an autopilot? Ans. Off-course alarm is fitted in every autopilot to warn the OOW when the ship deviates from the course set by a pre-set amount. Non-activation of the off-course alarm will not always mean that the ship is maintaining its planned track. The ship may have moved off the track by wind or current even though the heading remains same. Q.4. What precautions are required to be taken while using a transmitting magnetic compass (TMC) or a gyro compass for navigating a ship? Ans. A transmitting magnetic compass (TMC), if used to provide heading outputs to other bridge systems should be corrected for compass error through transit bearings, azimuth or amplitude observations. The TMC should be tested once a week in clear weather. If TMC is not used the magnetic compass is generally fitted above the bridge on the centreline of the ship with a periscope so that the compass is readable from the helmsman's position. Magnetic compass uses the magnetic properties of the earth for its direction finding. There are corrections like variation, which is the difference between the true north and the magnetic north and deviation, which is the difference between the magnetic north and the compass north of a ship. Both these corrections vary from place to place and with different ship's head. They must be recorded and applied correctly to the compass course to find the true course. Every ship is provided with a deviation chart posted on the bridge. Large or unusual deviation found for a ship's head should be investigated thoroughly. It could be because of major steel conversion of the ship, magnetic anomaly in a certain place or carriage of magnetic cargoes like iron ore or steel. It is also possible that magnets inside the binnacle of the compass were tempered with. Magnetism of all electrical bridge equipment can affect the magnetic compass and the minimum distances from them are specified and should be strictly followed. Gyrocompass uses the directional properties of a gyroscope, which is the rigidity in space and precession. Gyrocompass should be run continuously. Should a gyrocompass stop for any reasons, it should be restarted and checked for errors after it is 'settled'. Speed and latitude corrections must be applied to the gyrocompass. Where the gyro has no speed log or position input, manual corrections would have to be made. Gyrocompass has a number of repeaters connected to it. They must all be checked for alignment with the master gyro including the repeater in the emergency steering gear compartment. Gyro repeaters on the bridge wings must be checked against the master gyro at least once a watch and after excessive manoeuvring. Gyro compass error must be checked and recorded every watch if possible. Care must be taken the error is applied correctly for all bearings etc. Gyrocompass gives the output of direction to several bridge equipment and care should be taken that in case of failure of the gyro, the OOW is aware of contingency plans and actions required.

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INDEX Q.5. What types of speed measurement instruments are used on the ship? Ans. Generally speed through the water is used for collision avoidance and speed over the ground is used for navigation. Speed made good can be measured on ships and represents the speed the ship has achieved over a period of time. Speed made good can also be measured from the charts between two position fixes and calculated and transmitted by electronic position-fixing systems. Doppler-type logs can be single-axis or dual-axis. In case of single-axis, the speed is measured in the fore and aft direction and in dual-axis measured fore and aft and athwartships. If coupled with a rate of turn measurement, dual-axis logs can calculate the speed and direction of movement of the bow and the stern. It is good navigation practice to set the log at zero at the start of every voyage. Q.6. What precautions are required to be taken while using an echo sounder? Ans. A navigational echo sounder is expected to work up to a depth of 200m (approximately 110 fathoms). Care should be taken as follows: • units of sounding of the echo sounder is the same as those used in the chart; • when comparing the echo and chart soundings, allowance must be made for the draft of the ship or any tidal effects; • errors caused due to aeration, double reflection of echo are taken into consideration; • echo sounder is always used in coastal waters and when making a landfall; • shallow water alarm system if fitted should be set to an appropriate depth to warn of approaching shallow waters. Q.7. What are the electronic position-fixing systems used on the ship and what care should be taken while using the same? Ans. Except Loran C, other electronic position-fixing systems like Decca and Omega is being phased out. Loran C has a basic range of 1200 miles and corrections need to be applied for the variations of the conductivity of the earth's surface. A global navigation satellite system (GNSS) today provides continuous worldwide position, time and speed information. The USA operates global Positioning System (GPS) and the Russian Federation operates Global Navigation Satellite System (GLONASS). GPS provides an accuracy of 100 metres. Differential GPS (DGPS) is corrected by terrestrial monitoring systems and can be as accurate as 10 metres. Following care should be taken when using electronic position-fixing systems: • OOW must understand the capabilities and the limitations of all electronic positionfixing systems; • the integrity and the quality of the data transmitted must be safe guarded by pre-set quality limits to monitor the quality of the fix; • comparing all positions to identify and reject any false position; • comparing electronic position-fixing with estimated position calculated by taking observation with input from log, gyro etc.; • checking the status of the data and ensuring only the valid data is used. 21 of 101

INDEX Q.8. What is Integrated Bridge Systems (IBS)? Ans. Integrated Bridge Systems (IBS) are designed to combine systems, which are interconnected to allow centralised monitoring of sensor information and control of a number of operations such as passage execution, communications, machinery control, safety and security. IBS is not mandatory. Various designs are offered by classification societies and factors taken into account are the design of the bridge, type of equipment fitted and the layout of that equipment on the bridge. Design of the IBS should be such that failure of one sub-system does not cause the failure of another and the OOW knows about the failure immediately. In a navigation management system, the link is provided between charts, position-fixing system, the log, the gyrocompass and the autopilot. The IBS has an alarm system provided to warn the OOW if a potential dangerous situation arises. The alarm system is connected to radar, gyro, autopilot, position-fixing systems, ECDIS, the steering gear and the power distribution system. There should be watch safety or fitness alarm to transfer the alarm to cabins within 30 seconds, if the OOW fails to acknowledge the alarm. An interval timer for setting alarm intervals of up to 12 minutes should be part of the system. A number of alarm acknowledge points, each with a pre-warning alarm to give the OOW notice that the alarm is about to be activated should be available around the bridge. If the fitness time interval expires, an alarm should sound away from the bridge. Clear guidelines are to be written in the shipboard operation procedure manual with advice as to when to commence and when to suspend the use of IBS. Over-reliance on automatic systems with OOW not paying proper attention to visual navigational watchkeeping techniques can be very dangerous. Q.9. What is ECDIS and how is it used for navigation on ships? Ans. Electronic Chart Display and Information System (ECDIS) include the display of electronic vector and/or raster charts overlaid with the position of the ship and its track. It has facilities to route plan and automatically update chart corrections using digital notices to mariners. Sensors from GPS, log and gyro are connected to ECDIS to provide position of the ship. Autopilot may be connected to provide an integrated bridge system. Some ECDIS has radar-input display overlaid on the chart. This can be either selected targets or a full radar picture. Care should be taken in differentiating target vectors based on ship's speed through the water when OOW tries to overlay the same in a chart that is displaying speed over the ground. Electronic chart display systems can be categorised as ECDIS, RCDS (Raster Chart Display System) or ECS (Electronic Chart System). ECS must have a complete set of paper charts to supplement it on board.

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INDEX Q.10. What is the difference between the electronic chart format of Vector and Raster charts? Ans. Vector chart has its features stored in a layered digital format and each feature has a set of typical values. Storage in the database allows the chart to be displayed as a seamless chart. The layers can be added or removed enabling fields of data required or not required respectively. Chart features can be expanded to get any additional information on any charted object. Vector charts are inherently "intelligent" and thus allows three-dimensional monitoring while sailing. Chart depth contours and air draught clearances around the ship can be automatically monitored both at the planning stage and while the ship is on passage. Alarms will be automatically triggered if a safety zone around the ship is breached at any time. Raster charts are exact copies of a paper chart and are produced by digital scanning techniques. Information on raster charts cannot be layered and the move from one chart to another cannot be seamless. Raster charts have to be individually selected and displayed. Raster charts have no inherent "intelligence" and the chart data itself cannot generate automatic alarm systems, unless fed manually by the user during the route planning. Datum and projections will be different in case of raster charts and care must be taken to take account of such differences.

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INDEX CHAPTER 5 P AND I CLUB Q.1. What are P and I clubs? Ans. P and I club means Protection and Indemnity club. The roots of the club were found in 18th century England. Those were the days of sailing ships and extremely slow and inefficient communication system. Ship owners and the underwriters had limited contact and the hull insurance did not cover all aspects of loss on board. A group of ship owners formed an association to provide each other insurance cover. This association was a nonprofit making body controlled by a group of close-knit ship owners. These associations were named as Mutual Hull Insurance Clubs. The basic principle of the club was that each member of the group of ship owners would share with other members the cost of any hull claim, which an individual member suffered. It was paid rateably according to the value of the vessel or vessels owned by that member of the club. This spread the risk over a number of owners and provided the cover, which was otherwise lacking in the insurance market. Pooling of risks made the cover cheaper than what was available in the market. In addition the club was able to have greater control over the handling of claims when compared to the insurance cover provided by underwriters. The increase in the volume and the complexities of world trade expanded the risks covered. In due course the mutual insurance organisations joined forces to form the present date Protection and Indemnity Club. Most of the P and I clubs were established by beginning of 20th century. They were administered by a group of members, the committee, which met periodically to decide on the payment of claims and the levying of calls (premium). Q.2. What are the covers provided by the P and I club? Ans. Following are the typical covers provided by a P and I club: • personal injury claims covering third party liabilities covering death or injury to crew, passenger and stevedores etc.; • crew claims covering repatriation; th • collision liabilities e.g. 1/4 collision, excess collision, carriage of cargo after th collision, risks excluded under 3/4 collision liability clause; • fixed and floating objects claims; • cargo claims; • environmental pollution claims; • miscellaneous claims e.g. wreck removal, custom fines etc.; • freight, demurrage and defence for disputes under charter parties. Claims other than above can also be considered under the so-called 'Omnibus Rule', in which the club committee has the discretion to consider deserving claims from any members at any time. 24 of 101

INDEX Q.3. What is “call money” and how is decided by the P and I Club? Ans. The premium rates to be paid to the club by a ship owner are called the “call money”. The amount is decided by the committee based on the fleet’s ship types, ages, gross tonnage, trades, flags, crew nationality, exposure to risks, and other factors including the member’s claims record and the likelihood of large claims in the coming year. The member is advised of the total estimated call for the next 12 months; this comprises of an advance call and a supplementary call. Advance calls are levied on all members at the start of the P & I year, which is February 20th (on this date sailing vessels would depart for the Baltic from ports in the north-east coast of England following their winter lay-up and by tradition and still is the date from which insurance was required). Later in the year, if claims have been heavier than expected, the managers will ask the members for a supplementary call to “balance the books”. Clubs aim to be accurate in their predictions of future claims so as not to burden owners with supplementary calls. Refunds are made when income (calls + investments) exceeds outgoing (claims + expenses). Q.4. Who are P & I club correspondents and what are their functions? Ans. P & I clubs retain correspondents at numerous ports worldwide. In the USA a correspondent is normally a law firm with maritime lawyers. The correspondents: • Are for legal reasons, representatives and not agents of the club; • Will attend members’ vessels when so requested by the master or agent in order to protect a member’s interests; • Are generally well acquainted with the club’s rules and policy, etc.; • Will report any occurrence likely to result in claim on the club; • May, pending instructions, appoint surveyors to inspect damages; • May be instructed by the club to offer letter of undertaking in case of possible liability. In most cases of bunkering oil pollution or damage to jetty etc., a bond is to be posted to avoid arrest. Most clubs provide the ships with a list of correspondents. Q.5. How are claims of P & I clubs paid? Ans. When a member of a P & I club has a claim, the first $5 million will be met by the club’s own fund. In excess of $5 million and up to $30 million the claim is divided among the member clubs in the International Group Pool (including the club making the claim), with the pooling contribution of each club being calculated taking into account its entered tonnage, premium income and claims record in the Pool. For claims in excess of the Pool limit, the International Group arranges an ‘Excess of Loss reinsurance contract’ in the market; this currently provides cover for $2000 million ($2 billion) in excess of $30 million in relation to all types of claim except oil pollution, where the limit is $1000 million ($1 billion).

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INDEX Should the claim ever exceed the upper limit of the Excess of Loss Contract, it should fall back on the Pool and be borne by each club pro rata according to its entered tonnage. Such a claim is called an “overspill claim” and would be funded either from the club reserves or by making a special “overspill call” on the membership. For most of the history of the P & I clubs there are no upper limit to cover, but there is an upper limit of $4.25 billion on overspill claims. Some clubs extensive reinsurance for overspill claims. Q.6. How does a ship owner register his claim? Ans. A ship owner, who is a member of the club, must give immediate notification of any incident, which could result in a claim or liability within the scope of the club’s cover. Once a claim or a potential claim has been notified the club takes over the investigation and handling of the claim. It takes the help of the correspondents, surveyors and lawyers appointed by the club. In liaison with the member, the club will handle the claim to its logical conclusion. If there is a third party claim where the member has to pay, the club will ask the member to pay for the liability. Once the member pays the amount, an indemnity (i.e. reimbursement) is asked for from the club in accordance with the club rules and the member’s terms of entry. The amount recoverable is subject to a deductible i.e. an amount agreed by the member to bear himself before he can claim from the club. Q.7. Which liabilities are normally not covered by the P & I clubs? Ans. Clubs will not normally cover: • Ad valorem bill of lading; • Deviation; • Delivery of cargo in a port other than the port specified in the bill of lading; • Failure to arrive or late arrival at a port of loading; • Delivery of cargo without production of bill of lading; • Ante-dated or post-dated bill of lading; • Clean bills of lading in case of damaged cargo; • Deck cargo carried on terms of an under-deck bill of lading; • Arrest or detention of an entered ship. Q.8. What are the P & I covers for pollution? Ans. P & I cover for pollution liabilities is generally to the extent that the pollution is as a result of an escape or discharge or threatened escape or discharge of oil or any other substance. Clubs have traditionally covered: • Liabilities for damages or compensation; • Costs of reasonably-taken measures for preventing, minimizing or cleaning up pollution; • Costs or liabilities incurred as a result of compliance during government directions during a pollution incident; • Special compensation payable to salvers; Fines for pollution. 26 of 101

INDEX CHAPTER 6 MARINE INSURANCE Q.1.What types of marine insurance covers are required by ship owners and ship managers? Ans. A ship owner or a ship manager acting on behalf of a ship owner may require the following insurance covers against: • actual or total loss of his ship's hull, machinery and equipment (H & M cover); • accidental (particular average) damage to his ship's hull, machinery and equipment (H & M cover); • liability to owners of other vessels (and their cargoes) with which the ship collides (collision liability); • liabilities for general average charges; • liabilities for damage done by his ship to a third party's properties; • liabilities for other third party risks, e.g. cargo claims, personal injuries, pollution, wreck removal costs, etc. (called P & I risks); • liabilities for oil pollution claims; • loss of earnings due to strikes; • loss of earnings due to operation of war risks; • loss of freight; • loss of charter hire (e.g. When vessel goes “off hire” after sustaining damage); • increased value, disbursements and excess liabilities (an additional source of recovery over and above the hull and machinery insured value in case of a total loss); and • employer's liabilities to workers. Ship owners may need additional special insurance when the vessel is deviated from the intended course e.g. “ ship owners' liability insurance (SOL)”, if he looses his defences to liabilities under The Hague or Hague-Visby Rules. There are no statutory requirements for ships or cargo to be insured, but if they are not insured they need to be self-insured. IMO guide lines on Shipowners' Responsibilities in Respect of Maritime Claims recommends Shipowners to place on board the certificate of entry of the P & I Club. Q.2. What kind of insurance covers are there for Time and Voyage Charterers? Ans. The normal insurance covers for Time and Voyage Charterers are: • legal costs and expenses arising out of disputes related to hire, freight, dead freight and passage money, general and particular average, demurrage or despatch, detention, breach of charter party, bill of lading etc., the proper loading etc. of cargo, quality of bunkers supplied; • loss of or damage to vessel; • loss of or damage to cargo; • oil pollution other than that arising from a tanker in US territorial waters;

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INDEX • • • • • • • • • • •

loss of or damage to third party property; death or personal injury claims; fines; damage to fixed property (e.g. wharf or dock); wreck clearance costs; proportion of general average or salvage charges not covered by any other insurance; liability arising out of breach of or deviation under a bill of lading (e.g. cargo carried on deck against underdeck bill of lading); physical loss of charterers bunkers; loss of freight at risk; oil pollution arising from a tanker in US territorial waters; and stowaway costs.

Q.3. What are the basic principles of marine insurance? Ans. The basic principles of marine insurance are: • indemnity, subrogation; • insurable interest i.e. ownership; • utmost good faith; and • doctrine of proximate cause. Q.4. Differentiate between a) Actual Total Loss and b) Constructive Total Loss. Ans. Actual Total Loss means when the subject matter is destroyed or so damaged as to cease to be the thing of the kind insured or the assured is irretrievably deprived of the subject matter insured. When a ship concerned is missing and after a lapse of a reasonable time, no news of her has been received, an actual total loss can be presumed. An actual total loss can occur in four ways: • where property insured is actually destroyed e.g. a ship is wrecked or burnt out or where the goods are totally crushed in the collapse of a stow of cargo; • where goods change their characteristic in such a manner that they are no more the thing of the kind that was insured; • where the assured is irretrievably deprived of his property i.e. the ship is sunk in deep waters; • where the insured property is reported as missing in the Lloyd's e.g. where a ship has not reported for several weeks. A constructive total loss is where the subject matter insured is reasonably abandoned on account of: • its actual total loss appearing to be unavoidable; or • because it could not be prevented from actual total loss without an expenditure which will exceed its insured value. Where an assured is deprived of possession of his ship or goods by a peril insured against and it is unlikely he can recover them or the cost of recovering exceeds the insured value.

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INDEX In case of goods the cost of repairing the damage and despatches to destination exceed their value. Constructive total loss is where a ship is in danger of breaking or under war risk, she is entrapped by war wrecked vessel. Constructive total loss is also where the ship is grounded and so damaged that the retrieval and repairing cost will exceed the insured value. When an owner claims a constructive total loss, he must abandon the property to the insurer. Q.5. What is particular average loss in marine insurance? Ans. Marine insurance act defines particular average loss as "partial loss, proximately caused by a peril insured against and which is not a general average loss". The perils insured are a set of clauses called the Perils Clause attached to the policy. Under such clauses structural damage proximately caused by collision, grounding, heavy weather etc. (perils of the sea) would normally be classed as a particular average loss. Many owners prefer to pay an additional premium and cover the ship for any accidental damages under the Institute Additional Perils Clauses – Hull (APCs). Q.6. What is general average loss under marine insurance? Ans. The principle of general average can be said as " that which has been sacrificed for the benefit of all shall be made good by the contribution of all ". The objective of general average is to ensure that the owner of the ship or cargo who has incurred an expenditure or suffered a sacrifice of his property in order to save the vessel or the cargo from a perilous position receives a contribution to his loss from all those who have benefited from the action. General average loss is a partial loss incurred through a deliberate act performed with the intention of preserving all the property involved in a voyage from a danger which threatens them all. General average losses are equitably shared by all the parties to the " common maritime adventure ", each party contributing in proportion to his share of the total values involved. In theory therefore any expense, no matter how small, by a shipowner resulting in saving the ship or cargo on board can be a general average act. However in practice general average is not declared every time since it involves lots of calculations, contributions, collection and huge amount of time, effort and expense. Q.7. What constitutes common maritime adventure? Ans. A common maritime adventure is a voyage where several parties have some financial interest, as opposed to ballast voyage of a non-chartered liner vessel, where the only party involved is the shipowner. The parties to the common maritime adventure could include: • the shipowner; • each consignee of cargo; • if ship on time charter, owner of bunkers on board; • the recipient of freight (shipowner or time charterers); • the owner of any equipment on hire e.g. welding machine or diving equipment etc.

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INDEX Q.8. What are the essential elements of a general average act? Ans. The essential elements of a general average act are: • there must be a sacrifice or expenditure; • the sacrifice or expenditure must be extraordinary; • the sacrifice or expenditure must be intentionally made or incurred; • the sacrifice or expenditure must be reasonably made or incurred; • the sacrifice or expenditure must be made for the common safety; • the sacrifice or expenditure must be made for the purpose of preserving the property from peril. Q.9. What are the sacrifices or expenditures normally allowed in a general average act? Ans. Examples of sacrifices that may be allowed in a general average are: • cargo jettisoned to refloat a grounded vessel or to prevent the capsizing of a dangerously listed vessel; • machinery damage sustained during refloating operations. Examples of expenditures that may be allowed in a general average are: • costs of salvage expenditure including salver's reward; • costs of entering port, staying in and leaving a port of refuge; • costs of cargo discharge or any other operations including dry docking etc. Q.10. What do you understand by sacrifices extraordinarily, intentionally and reasonably made? Ans. Extraordinary nature of sacrifice and expenditure is not an ordinary or every-day loss or expense incurred in running a ship and carrying cargoes. Loss of anchor to prevent grounding is not extraordinary, where as loosing an anchor laid out as ground tackle during a refloating operation may be allowed. Similarly damage to engine due overworking in trying to prevent grounding is not extraordinary, where as damage to engine during a refloating operation may be allowed. A wide variety of costs, however small including extra taxi fares for superintendents can be recovered in general average expenditure. Intentionally made expenditure are those of CO2 cylinders discharged to put off a fire on board or wetting damage done due to flooding of a hold. The cost of damage done by the fire itself is not covered under the general average act. Beaching a leaking ship to prevent sinking is intentional and covered by general average. Cost of refloating an accidentally grounded ship is intentional and allowed. Reasonable expenditure can be that of amount of cargo required to be jettisoned. Excess cargo jettisoned is not reasonable and may not be allowed under general average. Similarly expenditure in a port of refuge over and above reasonable costs may not be allowed.

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INDEX Q.11. How is the general average adjustment made? Ans. Each item of property at risk in the common maritime adventure at the time of incident giving rise to the general average act and saved by that act must contribute to the general average according to its value to its owner (i.e. its sound market value) at the termination of adventure (i.e. the end of the voyage, at the final destination). These are “contributory values”. Calculations of contributory values and assessment of general average losses are very complex especially in a container ship. The value of the ship after the general average act and the CIF value of sound and undamaged cargo remaining after the general average act are calculated for general average purposes. There must be equality of contribution between the owner of properties sacrificed and the owner of properties saved, so that no one profits by the sacrifice. Properties sacrificed by a general average act must, therefore, always contribute to its own loss. Q.12. What documents and information are required to make a claim? Ans. The documents and information include: • deck and engine room log books covering the casualty and repair period; • master's and/or chief engineer's detailed report as appropriate; • relevant letter of protest; • underwriter's surveyor's report; • class surveyor's report; • owner's superintendent's report; • receipted accounts for repair and/or any spare parts supplied by owners, in connection with repairs duly endorsed by underwriter's surveyor as being fair and reasonable; • accounts covering any dry-docking and general expenses relating to the repairs endorsed as above; • port disbursements; • fuel and engine room spares consumed together with cost of replacements; • accounts for owners' repairs effected concurrently with damage repairs; • copies of faxes, email and telexes sent and details of long-distance calls made in connection with the casualty together with their costs; • any accounts rendered by surveyors etc., with dates of payment where made There are similar documents and information required for repairs and after a collision. In case of collision, steps taken to establish liabilities for the collision and eventual settlement in apportionment of blame including copy of claim for attempted recovery. Efforts to limit liabilities and costs thereof are taken into consideration.

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INDEX CHAPTER 7 ISM CODE Q.1. What are the basic principles of the ISM code? Ans. The three basic principles of ISM code are: 1. Safety of people on board, 2. Safety of the ship and cargo, 3. Safety of environment. They are in the order as above. In other words pumping out of oil to save the ship or both oil and cargo to save the people on board can be accepted. Chapter IX of SOLAS 1974 was amended by resolution MSC.99 (73) to bring in the ISM Code. It was accepted on 1st January 2002 and entered into force with effect from 1st July 2002. It was realised that safety culture must be inculcated in the ship and must percolate from the top management to all the operational persons on board. There was also a need to connect the umbilical chord between the ship and the shipowner. Responsibilities of safety could not be left entirely to the master of the ship alone. The corner stone of good safety management is commitment from the top. In matters of safety and pollution prevention, it is the commitment, competence, attitude and motivation of individuals at all levels that determines the end result. Q.2. Define the following: 1. ISM code, 2. Company, 3. Administration, 4. Safety Management System, 5. Document of Compliance, 6. Safety Management Certificate, 7. Objective Evidence, 8. Observation, 9. Non-conformity, 10. Major Non-conformity, 11. Anniversary Date, 12. Convention. Ans. 1. ISM code is International Safety Management code for the safe operation of ships and for pollution prevention, as adopted by IMO assembly. 2. Company is the owner of the ship or any other organisation or person such as a manager or bareboat charterer, who has responsibility for operation of the ship from owner, and who on assuming responsibility has agreed to take over all duties and responsibilities imposed by the code. 3. Administration is the Government of the State whose flag the ship in entitled to fly. 4. Safety Management System is a structured and documented system enabling the company and its personnel to implement effectively the safety and environmental protection policy. 5. Document of Compliance is a document issued to a company complying with Code's requirements. 6. Safety Management Certificate is a document issued to a ship signifying that company and its shipboard management operate in accordance with the approved SMS. 7. Objective Evidence is qualitative or quantitative information, records or statements of fact pertaining to safety or the existence and implementation of a safety management

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INDEX system element, which is based on observation, measurement or test and which can be verified. 8. Observation is a statement of fact made during a safety management audit and substantiated by objective evidence. 9. Non-conformity is an observed situation where objective evidence indicates the nonfulfilment of a specified requirement. 10. Major non-conformity is an identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action and includes the lack of effective and systematic implementation of a requirement of this code. 11. Anniversary date is the day and month of each year corresponding to expiry date of relevant document or certification. 12. Convention is SOLAS 1974 as amended. Q.3. What are the objectives of SMS? Ans. SMS should ensure: • compliance with mandatory rules and regulations; and • that applicable codes, guidelines and standards recommended by IMO, administrations, classification societies and maritime industry organisations are taken into account. Q.4. What are the functional requirements for a SMS? Ans. Every company should develop, implement and maintain a SMS which includes following functional requirements: • a safety and environmental protection policy; • instructions and procedures to ensure safe operation of ships and protection of environment in compliance with relevant international and flag State legislation; • defined level of authority and lines of communication between , and amongst, shore and shipboard personnel; • procedures for reporting accidents and non-conformities with the provisions of this Code; • procedures to prepare for and respond to emergency situations; • procedures for internal audits and management reviews. Q.5. What is the Safety and Environmental Protection Policy? Ans. The Safety and Environmental Protection Policy describes how the objectives of the ISM code be achieved. Company should ensure that the policy is implemented and maintained at all levels of the organisation both ship-based and shore-based.

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INDEX Q.6. What are the responsibilities and the authorities of the company? Ans. If the owner is not responsible for the implementation of the code, he must inform the Flag State Administration (FSA) the name and details of the entity. Company should define and document responsibilities, authorities, and interrelation of all personnel who manage, perform and verify work related to and affecting safety and pollution prevention. Company is responsible to ensure that adequate resources and shore-based support are provided to enable DPA to carry out their functions. Q.7. Who is a DPA and what are his responsibilities? Ans. DPA is the Designated Authority Ashore. The person responsible is to ensure safe operation of each ship and provide a link between company and the crew. The DPA should have direct access to the highest level of management. Responsibility and authority of the DPA should include monitoring safety and pollution prevention aspects of operation of each ship and ensuring adequate resources and shore based support are applied, as required. Q.8. What are Master's responsibilities and authorities? Ans. Master's responsibilities and authorities are: • implementation of the safety and environmental protection policy of the company; • motivating the crew in the observation of the policy; • issuing appropriate orders and inspections in a clear and simple manner; • verifying that specified requirements are observed; • reviewing the SMS and reporting its deficiencies to shore based management. The company should ensure that SMS operating on ship contains a clear statement emphasising the master's authority. The company should establish in SMS that the master has overriding authority and responsibility to make decisions with respect to safety and pollution prevention and to request company's assistance as may be necessary. Q.9. How does the company ensure proper resources and personnel are provided on the ship? Ans. Company should ensure that the master is properly qualified for command, fully conversant with the company's SMS and given the necessary support for the safe performance of the master's duties. Company should: • ensure that the ship is manned with qualified, certificated and medically fit seafarers in accordance with national an international requirements; • establish procedures to ensure new personnel and personnel transferred to new assignments related to safety and environment protection are given proper familiarisation with their duties; • identify essential pre-sailing instructions and have it documented and be given to all concerned;

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INDEX • • • •

ensure all personnel are familiar with the SMS and have adequate understanding of all relevant rules, regulations, codes and guidelines; establish and maintain procedures for identifying any training required in support of SMS and ensure such training is provided for personnel concerned; establish procedures by which the ship's personnel receive relevant information on the SMS in a working language or languages understood by them; ensure that the ship's personnel are able to communicate effectively in the execution of their duties related to the SMS.

Q.10. How is the ISM code implemented on the ship? Ans. The ISM code is implemented on the ship by: 1. Development of plans for shipboard operations, instructions and checklists for key shipboard operations concerning the safety of the ship and pollution prevention. Tasks involved should be defined and assigned to qualified. 2. Emergency preparedness to respond to on board emergencies. The company should establish programmes for drills and exercises to prepare for emergency actions. 3. Reports and analysis of non-conformities, accidents and hazardous occurrences. SMS should include procedures to report and analyse above. All incidents are to be investigated with the objective of improving the safety and pollution prevention record. Procedures are established for implementation of corrective action. 4. Maintenance of the ship and equipment. This will include: • inspections are held at appropriate intervals; • any non-conformity is reported with its cause if possible; • appropriate corrective action is taken; and • records of these activities are maintained; • all equipment and systems are tested regularly; • inspections and measures as above must be integrated into ship's operational maintenance routine. 5.Documentation should ensure that valid documents are available at all times, changes in documentation are reviewed and approved by authorised personnel and obsolete documents are promptly removed. Documents are incorporated in the SMS manual. 6.Company verification, review and evaluation should ensure audits are conducted at regular intervals. Corrective actions should be carried out. Auditors should be independent. Q.11. How is the certification and verification done for ISM? Ans. Ship can only be operational with a valid DOC (Document of Compliance) issued to a company. DOC is valid for ship types it lists e.g. tanker, gas carrier, container ship etc. DOC is issued by the FSA and valid for 5 years, with annual verification by FSA with in 3 months before or after the anniversary date. Copy of the DOC must be kept on board and need not be authenticated or certified. DOC can be withdrawn if the annual verification is not requested or there is a reported major non-conformity. If a DOC is withdrawn, all associated SMC (Safety Management Certificate) or ISMC (Interim Safety Management Certificate) will be withdrawn. 35 of 101

INDEX SMC is issued to ship by the FSA. The period of validity for SMC is 5 years with annual verification within 3 months before or after the anniversary date. Interim verification is done between 2nd and 3rd anniversary dates. SMC can be withdrawn if the annual verification is not requested or there is a reported major non-conformity. IDOC is issued to a company newly established or a new type of ship is added to an existing DOC. Interim Document of Compliance (IDOC) is issued by the FSA and valid for not more than 12 months. ISMC is issued to a new ship on delivery or when a company takes on responsibility for the operation of a ship which is new to the company or when a ship changes flag. ISMC is issued by the FSA and valid for not more than 6 months but can be extended as a special case by the FSA. IMSC is issued after verification that: • DOC or IDOC is relevant to the ship; • SMS provided by the company for the ship includes key elements of ISM code and has been assessed during the audit for issuance of DOC or IDOC; • company has planned a ship audit within 3 months; • master and officers are familiar with SMS and planned arrangements for its implementation; • essential pre-sailing inspections are provided; and • relevant information on SMS has been given in • working language (s) understood by ship's personnel. Q.12. Under the ISM Code define a Safety Officer and a Safety representative and their duties. Ans. Every ship must appoint a competent person as a safety officer. He is defined as a person who has sufficient training and experience or knowledge and other qualities to enable him properly to undertake the duty imposed under the relevant provision in these regulations. He has in addition a minimum of two years' consecutive sea service since attaining the age of 18. In case of a tanker the safety officer shall minimum six months service in a tanker included in the 2 years' sea service. Appointment of a safety officer must be recorded in writing in the OLB. The duties of a safety officer are: • improve the standard of safety consciousness among the crew and ensure that the provisions of the code of Safe Working Practices and safety instructions, rules and guidance for the ship relating to health and safety are complied with; • investigate so far as possible every accident involving death, major or serious injury and every dangerous occurrences; • investigate all potential hazards to health and safety; • investigate all reasonable complaints by workers about health and safety and make recommendations to the master to prevent their recurrence or to remove any hazard, provided that the duty to investigate will not extend to accidents arising from a casualty to the ship; • ensure that health and safety inspections of the ship is carried out at least every 3 months and more frequently if there are substantial changes in the conditions of work; 36 of 101

INDEX •

make representation and where appropriate recommendations to the master about any deficiencies in respect of health, security, safety and following of the code; • maintain a record of all accidents involving death, major or serious injury and every dangerous occurrence and make it available to any elected Safety Representative, to the master and to any official of the FSA; • stop any work in progress, which he believes with reasonable certainty may cause accident and report the matter immediately to the master or his deputy. The safety officer is not to carry out above duties in case when emergency action to safe guard life or the ship is being taken. The safety officer should not be in charge of medical treatment. The company must make rules for the election and appointment of safety representatives. The safety representatives must be voted with the maximum votes. He must have a minimum 2 years' consecutive sea service since attaining the age of 18 years, which in case of tankers must include 6 months' tanker service. The appointment of a safety representative will terminate on that person signing off or resigning from the company. If the ship has crew number from 6 to 15, the officers and crew should elect one safety representative. If there are more than 16, one safety representative each should be elected from the officers and the crew respectively. If there are more than 30 ratings one safety representative from the officers and three safety representatives from the rating i.e. one from the deck, one from the engine and one from the catering department. Appointment of a safety representative must be recorded in writing in the OLB. The safety representative has the following powers: • to participate subject to concurrence of the safety officer in any investigation or inspection; • to make similar investigation or inspection on his own; • to make representation to the employee on potential hazards and dangerous occurrences at the work place; • to make representations to the master and the employer on general matters affecting the health and safety of workers on the ship; • to request the safety officer to carry out any occupational health and safety inspection they consider necessary and report the findings to them. The safety representative must have good relationship with safety officer and should work with him to raise the safety standard on board. Q.13. What is a safety committee and what is its function? Ans. Every ship having an elected safety representative must have a safety committee. The master is the chairman of that committee. The safety officer and the safety representatives are the members including any competent person chosen. The appointment of any competent person must be recorded in the OLB. The safety committee has the same powers under the regulations as the safety representatives. The secretary of the committee should not preferably be the safety officer, as he has to concentrate on the discussions. The committee should be compact and well knit to ensure its proper functioning. The meetings should be held every 4 to 6 weeks and as required by the circumstances.

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INDEX Duties of a safety committee are: • to use its best endeavour to ensure that the Code of Safe Working Procedures as laid down are followed; • to improve the standards of safety consciousness among the crew; • to make representations and recommendations on the crew's behalf on occupational health and safety matters; • to inspect the safety officers records; • to ensure the observance of the employer's occupational health and safety policies and make recommendations for their improvement; • to consider and take appropriate action concerning any occupational health and safety matters, accident reports, MS Notices, publications etc.; • to keep a record of the meetings and any representations, replies or action resulting therefrom. Q.14. What are the duties of the Company and Master under the Code of Safe Working Procedures on board? Ans. Under the Health and Safety at work regulations, the Company and the Master must co-ordinate with the employer and facilitate the work of any person appointed to provide protective and preventive services. Any safety officer or safety representative appointed in carrying out their health and safety functions must also co-ordinate and work closely with the company and the master. The company and the master are to: • provide a copy of the Code of Safe Working Practices for the Merchant Seamen; • provide them with relevant information about risks and measures for protection under the regulations; • factors known or suspected to affect the health and safety of the workers on the ship; • arrangements for fire-fighting, first aid and emergency procedures; • ensure that persons have necessary resources and means to carry out their functions and duties; • allow persons to undertake necessary training in health and safety; • receive representations and discuss and implement any agreed measures for health and safety; • maintain a record of every accident and make it available on request to any worker, inspector or surveyor.

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INDEX CHAPTER 8 ISPS CODE Q.1. What is ISPS code? Ans. ISPS code is the International Ship and Port facility Security code. SOLAS chapter XI-2 part A and part B relates to special measures to enhance maritime security. In this context the principles behind ISPS code is similar to the ISM code on board. ISPS code emphasises the security of the persons on board, security of the ship and security of environment, in that order. ISPS code uses the word facility for the port, which means the port perse need not be under the ISPS umbrella. The port must define the facilities, which need protection and chart out a security plan accordingly. For the first time ships and ports come under the FSA for the implementation of the ISPS code. Companies must comply with the relevant requirements of SOLAS chapter XI-2 part A, taking into account the guidance given in part B of the code. Q.2. What are the objectives of the ISPS code? Ans. The objectives of the code are: • to establish an international framework involving co-operation between Contracting Governments (CG) and shipping and port industries to detect security threats and take preventive measures; • to establish respective roles and responsibilities of the CG and shipping and port industries for ensuring maritime security; • to ensure early and efficient collection and exchange of security-related information; • to provide methodology for security assessments so as to have plans in place to react to changed security levels; and • to ensure confidence that adequate and proportionate maritime security measures are in place. Q.3. In order to achieve the objectives what functional requirements are embodied in the code? Ans. The functional requirements are: • gathering and assessment of information regarding security threats and exchanging such information with appropriate CGs; • requiring the maintenance of communication protocols for ships and port facilities; • preventing unauthorised access to ships, port facilities and their restricted areas; • preventing the introduction of unauthorised weapons, incendiary devices or explosives to ships or port facilities; • providing means of raising the alarm in reaction to security threats or security incidents; • requiring the ship and port facility security plans based upon security incidents;

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requiring training, drills and exercises to ensure familiarisation with security plans and procedures.

Q.4. Define 1. Convention, 2. Ship Security Plan (SSP), 3. Port Facility Security Plan (PFSP), 4. Ship Security Officer (SSO), 5. Company Security Officer (CSO), 6. Port Facility Security Officer (PFSO), 7. Security Level 1 (SL1), 8. Security Level 2 (SL2) and 9. Security Level 3 (SL3). Ans. 1. Convention means SOLAS 1974 as amended. 2. SSP means a plan developed to ensure the application of measures on board the ship designed to protect persons on board, cargo, cargo transport units, ship's stores or the ship from the risks of a security incident. 3. PFSP means a plan developed to ensure the application of measures designed to protect the port facility and ships, persons, cargo, cargo transport units, ship's stores within the port facility from the risks of a security incident. 4. SSO means the person on board the ship, accountable to the master, designated by the company as responsible for the security of the ship, including implementation and maintenance of the ship security plan, and for liaison with the CSO and PFSO. 5. CSO means the person designated by the company for ensuring that a ship security assessment is carried out; that a ship security plan is developed, submitted for approval and there after implemented and maintained, and for liaison with the SSO and PFSO. 6. PFSO means an officer designated as responsible for the development for the development, implementation, revision and maintenance of the port facility security plan and for liaison with the SSO and CSO. 7. SL1 means the level for which minimum appropriate protective measures shall be maintained at all times. 8. SL2 means the level for which appropriate additional protective security measures shall be maintained for a period of time as a result of heightened risk of a security incident. 9. SL3 means the level for which further specific protective security measures shall be maintained for a limited period of time when a security incident is probable or imminent, although it may not be possible to identify the specific target. Q.5. Which ships' are covered under ISPS code? Ans. Following types of ships engaged on international voyages are covered under the ISPS: • passenger ships including high-speed passenger craft; • cargo ships including high-speed craft, of 500 GRT and upwards; • mobile offshore drilling units; and • port facilities serving such ships engaged in international voyages. This code does not apply to warships, naval auxiliaries or other ships owned or operated by a CG and used only on Government non-commercial service.

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INDEX Q.6. What are the responsibilities of the CG under this code? Ans. CG will assimilate credible, corroborated, specific threat information and their potential consequences. It shall issue appropriate instructions and provide security-related information to ships and ports, which may be affected. CG will also: • set the applicable security levels; • approve a PFSA and its amendments; • decide on the requirements of PFSO in a port; • exercise control and compliance of the code; • exercising the requirement of DoS (Declaration of Security); • test the effectiveness of the SSP and PFSP and amend them as required. Q.7. What is DoS and when is it required to be completed? Ans. Whenever there is an interface with ship/ship, ship/port, the ship can ask for a DoS. A ship can request the completion of a DoS when: • the ship operates at a higher security level than the port or another ship it is interfacing with; • there is an agreement on DoS between the CGs covering certain international voyages or specific ships on those voyages (e.g. Malacca Straits); • there has been a security threat or security incident involving the ship or the port; • the ship is in a port not covered by ISPS code; • the interfacing is with another ship without ISPS code. PFSO/ master or SSO of interfacing ships should acknowledge the DoS. DoS should address the security requirements to be shared between ship and port. CGs should specify the minimum period of the DoS for the port and the ship. Q.8. What is the obligation of the company under the ISPS code? Ans. The company shall ensure the Ship Security Plan (SSP) clearly emphasises the overriding authority of the master and his responsibilities in taking decisions with respect to the safety and security of the ship. The company shall ensure that the CSO, the master and the SSO are given the necessary support to fulfil their duties and responsibilities in accordance with ISPS code. Q.9. What activities are allowed under different Security Levels, SL1, SL2 and SL3 on ships? Ans. At SL1, the following activities shall be carried out: • ensuring the performance of all ship security duties; • controlling ship access; • controlling embarkation of persons and their effects; • monitoring restricted areas to ensure that only authorised persons have access;

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INDEX • monitoring deck areas and areas surrounding the ship; • supervising the handling of cargo and ship's stores; and • ensuring that security communication is readily available. At SL2, additional protective measures, specified in the SSP shall be implemented. At SL3, further specific protective measure specified in the SSP shall be implemented. The ship shall acknowledge the security levels set by the CGs. Any ship or port having a SL higher than a port or ship respectively must liaison with the PFSO or SSO as the case may be to co-ordinate appropriate actions. Q.10. How is a Ship Security Assessment (SSA) done? Ans. The SSA is an essential and integral part of developing and updating the Ship Security Plan (SSP). The CSO will ensure that persons of appropriate skills taking the guidelines provided in part B of ISPS code carry out the SSA. SSA will include on-scene security survey with the following elements taken into consideration: • identification of existing security measures, procedures and operations; • identification and evaluation of key shipboard operations that it is important to protect; • identification of possible threats and likelihood of their occurrence; and • identification of weakness, including human factors, in the infrastructure, policies and procedures. SSA shall be documented, reviewed, accepted and retained by the company. Q.11. How is a Ship Security Plan (SSP) made? Ans. The SSP has to be approved by the FSA and must cover the three security levels. A Recognised Security Organisation (RSO) may prepare, review and approve the SSP on behalf of the FSA. However if the RSO is to review and approve, it cannot prepare the plan. SSP shall be developed as per guidelines given in part B of the code and shall be written in a working language of the ship. The language used should be in English, Spanish or French along with the working language of the ship. The plan should address the following: • measures to prevent weapons, dangerous devices and substances; • identification of restricted areas and measures to prevent unauthorised access; • measures for prevention of unauthorised access to ship; • procedures for responding to security threats or breaches, responsibilities, instructions, evacuation, auditing, training, drills, exercises; • procedures for interfacing with port, periodic review and updating, reporting security incident; • identification of the CSO and his 24hours contact details; • procedures to ensure inspections, testing, calibration and maintenance of security equipment and their frequencies; • identification of the location of Ship Security Alert System (SSAS) and the procedure for its usage, testing, activation, deactivation and resetting. 42 of 101

INDEX Internal audits are to be conducted by independent auditors. Changes in SSP are to be approved by the FSA. SSP can be in an electronic format and must be protected from unauthorised access. SSP is not subject to inspections by CGs unless the inspectors have adequate reasons to believe that the vessel is not ISPS compliant e.g. no gangway check of entry. Q.12. What records are required to be kept on board for the SSP? Ans. Following records are required to be kept on board with reference to the SSP: • training, drills and exercises; • security threats and security incidents; • breaches of security; • changes in security levels; • communications between ship to ship or ship to port on security such as specific security threats; • internal audits and review of security activities; • periodic review of SSA and SSP; • implementation of any changes to SSA and SSP; • maintenance, calibration, testing of security equipment and testing of SSAS. The records are to be kept in English, Spanish or French along with the working language of the ship. The records may be kept in an electronic format, which cannot be deleted, destroyed or amended by unauthorised personnel. Q.13. What are the duties and responsibilities of a CSO? Ans. The company designates a CSO, who can act for more than one ship. The duties and responsibilities of a CSO are: • advising ships of the security levels to be encountered; • ensuring that the SSA is carried out; • ensuring the development, submission for approval, implementation and maintenance of the SSP; • ensuring that the SSP is modified as appropriate to correct deficiencies; • arranging internal audits and reviews security activities; • arranging initial and subsequent inspections by FSA; • ensuring that deficiencies and NCs are identified and promptly addressed; • enhancing security awareness and vigilance; • ensuring adequate training for personnel on board responsible for security; • ensuring effective communication and co-operation between the SSO and PFSO; • ensuring consistency between security and safety requirements; • ensuring that all SSA and SSP are ship specific; and • ensuring that alternative or equivalent arrangements are implemented and maintained.

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INDEX Q.14. What are duties and responsibilities of a SSO? Ans. Every ship must have a designated SSO. The duties and responsibilities are: • undertaking regular security inspections of ship to ensure adequate security measures are taken; • maintaining the SSP and its amendments if any; • co-ordinating security aspects of handling of cargo, ship's stores etc. with shipboard personals and port authorities; • proposing modifications to the SSP; • reporting any deficiencies to CSO during audits or inspections; • enhancing security awareness and vigilance on board; • ensuring adequate training provided to shipboard personals; • reporting all security incidents; • co-ordinating implementation of the SSP with CSO and PFSO; and • ensuring that security equipment is properly operated, tested, calibrated and maintained. Q.15. What activities are allowed under different Security Levels, SL1, SL2 and SL3 in a port? Ans. Port facilities are required to act upon the security levels set up by the CG. These security measures in a port shall be such that they cause the minimum interference with the port working and passenger embarkation or disembarkation. At SL1, the following activities shall be carried out: • ensuring the performance of all PFS activities; • controlling access to the port facilities; • monitoring of port facility, including anchoring and berthing areas; • monitoring restricted areas to ensure that only authorised persons have access; • supervising the handling of cargo and ship's stores; and • ensuring that security communication is readily available. At SL2, additional security measures and at SL3 further specific protective measures as specified in the PFSP. The PFSO and the SSO will co-operate to ensure all security measures are well understood and implemented. Q.16. How is the Port Facility Security Assessment (PFSA) done? Ans. PFSA is an essential and integral part of developing and updating Port Facility Security Plan (PFSP). The CG or the RSO, who must have appropriate skills, carries out PFSA. It must be periodically reviewed and updated taking into account any fresh security threats or changes in the port facilities. The PFSA shall include the following: • identification and evaluation of important assets and infrastructures which need protection;

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identification of possible threats and the frequency of occurrence; identification of procedural changes in reducing vulnerability; and identification of weaknesses including human factors in the infrastructures, policies and procedures. PFSA can be applicable to more than one port if accepted by the CG. The methodology used to make the PFSA should be recorded. Q.17. How is the Port Facility Security Plan (PFSP) made? Ans. PFSP is developed and maintained based on the PFSA for each port facility. The plan provides for SL1, SL2 and SL3. A RSO may be asked to prepare the PFSP, which needs to be approved by the FSA. The PFSP will address the following: • measures designed to prevent weapons, dangerous substances and devices into the port; • measures designed to prevent unauthorised access to port facilities, ships and restricted areas; • procedures to respond to various security levels and maintaining critical port operations; • procedures to implement security instructions from CG on SL3; • procedures for evacuation, interfacing, periodical review of plans and updating, reporting security incidents and breaches; • assignment of a PFSO, his duties and his 24 hours contact details; • ensure security of the PFSP, effective cargo security and port facilities; and • procedures for auditing of the PFSP, responding to security alert of a ship in port, facilitate shore leave of ship's personals and visitors. The auditors must be independent. The PFSP may be combined with other ports. Changes in the plan must be approved by the CG. The plan may be kept in an electronic format and must be protected from deletion, destruction or amendments. The plan must be protected from unauthorised access or disclosure. Q.18. What are the duties and responsibilities of a PFSO? Ans. PFSO is a designated officer for the port facilities. His duties and responsibilities include: • conducting an initial comprehensive port security survey of all port facilities; • developing and maintenance of PFSP; • implementation and exercise the PFSP; • undertaking regular security inspections to continue with appropriate security measures; • recommending and modifying PFSP to correct deficiencies and incorporate changes; • ensuring security awareness among port personals, training them, reporting to relevant authorities and maintaining records of security occurrences; • co-ordinating implementation of PFSP with CSO, SSO, security services; • ensuring standards of security are met;

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INDEX • ensuring the security equipment are operated, tested, calibrated and maintained; and • assisting the SSO in confirming the identity of those seeking to board the ship. The PFSO must be given the necessary support to fulfil his duties as per the ISPS code. Q.19. What is the certificate issued to a port under the ISPS code? Ans. The certificate issued to a port facility under the ISPS code is a " Statement of Compliance of a Port Facility ". Q.20. For the purpose of ISPS code which amendments were brought about in the SOLAS 1974? Ans. Under the SOLAS conference in December 2002, chapters V and XI were amended. Chapter V makes it mandatory for all ships of 300 GRT and upwards but less than 50,000 GRT to have AIS fitted not later than the first safety equipment survey after 1st July 2004 or by 31st December 2004, whichever is earlier. AIS shall be in operation at all times except where international agreements provides otherwise. Chapter XI is divided into two parts XI-1 and XI-2. Chapter XI-1 deals with Ship Identification Number (SIN), which must be permanently marked in a visible place either on the stern of the ship or on the port and starboard side along with the end transverse bulkhead of machinery space or the hold main beam, which are easily accessible. The permanent markings should be plainly visible clear of any other markings on the hull and shall be painted in a contrasting colour. The height of the markings should be not less than 100mm and of proportionate length. These must be raised or centre-punching method. SIN is a seven digit number unique number for the ship painted after the letters IMO. It must be with the ship till it is scrapped. Chapter XI-1 also deals with each vessel having a Continuous Synopsis Record (CSR). CSR is issued by the FSA in the format developed by IMO and contains the following information: • name of the State flag the ship flies; • date of registry, identification number, name of the ship, port of registry, name and full style address of the registered owner, bareboat charterer(s), company which carries out the safety management services; • name of all classification societies, the ship is classed; • name of the FSA and CG, who issued the DOC; • name of the RSO, who audited the ship for ISM; • name of the FSA, CG or the RSO, who issued the International Ship Security Certificate (ISSC); • the date on which the ship ceases to be registered with that state. CSR should incorporate any changes in the above information. CSR must be in English, French or Spanish along with a translation in the working language of the ship and to be kept on board available for inspections at all times. CGs will co-operate in passing all the information in case of change of CG or FSA.

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INDEX Q.21. What are the functional requirements of a Ship Security Alert System (SSAS)? In the Indian context, what happens when the SSAS is alerted on board? Ans. All ships are to be provided with SSAS by 1st July 2004, cargo ships of 500 GRT or more and MODU constructed before 1st July 2004 to install it not later than 1st July 2006. SSAS, when activated, shall: • initiate and transmit a ship-to-shore security alert to a competent authority as designated by the FSA (in the Indian context it alerts the DGS in a 24 x 7 operation room, having the state of art communication systems like satellite telephone, land line, mobile and e-mail facilities). It also alerts the CSO. SSAS gives the identity of the ship and her exact location indicating that the security of the ship is under threat or compromised; • not send security alert to other ships or raise audio or visual alarm on board; and • continue the ship security alert until deactivated or reset. SSAS should be activated from the bridge and one more location on the ship. It should be so designed to prevent inadvertent activation. Whenever a FSA receives SSAS signal, it must activate the CG close to the ship to seek help on breach of security on a ship. Q.22. What do you understand by protocol of communication under the ISPS code? Ans. Protocol of communication under the ISPS code means that communications must follow a certain order i.e. SSO – Master – CSO – FSA – CG and viceversa and similarly PFSO – FSA – CG and viceversa.

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INDEX CHAPTER 9 PORT STATE CONTROL Q.1. What is Port State Control? What are its primary responsibilities? Ans. Port State Control (PSC) is the inspection of foreign ships present in a nation's port for the purpose of verifying that the condition of the ships and their equipment comply with the provisions of international conventions and codes, and that the ships are manned and operated in compliance with those provisions. The primary responsibility for maintaining ships' standard rests with the flag states, as well as their owners and masters. However, many flag states do not, for various reasons, fulfil their obligations under international maritime conventions, and PSC provides a useful “safety net” to catch substandard ships. PSC effectively does what the Flag State control should, but in many cases fails, to do. In the website: www.parismou.org, a detailed explanation of the working of the PSC is given. In the Indian context PSC is conducted by the FSA, who may also inspect Indian flag vessels in Indian ports. Q.2. Which are the eight PSC regimes in operation worldwide? Ans. The eight PSC agreements currently in force are: • Paris MOU (website: http://www.parismou.org); • Latin-American Agreement (website: http://www.acuerdolatino.int.ar); • Tokyo MOU (website: http://www.tokyo-mou.org); • Caribbean MOU; • Mediterranean MOU (website: http://www.medmou.org) ; • Indian Ocean MOU; • Abuja MOU; • Black Sea MOU; The US Coast Guard operates a national wide Port State Control Initiative. Countries in the Persian Gulf region have agreed informally on the need to establish a PSC regime. Q.3. What are the general criteria as laid down by the PSC MOUs? Ans. The general criteria for PSC MOUs are: • ships visiting a port of a state for the first time or after an absence of 12 months or more; • ships which have been permitted to leave the port of a state with deficiencies to be rectified; • ships which have been reported by pilots or port authorities as being deficient; • ships whose certificates are not in order;

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ships carrying dangerous or polluting goods which have failed to report relevant information; • ships which have been suspended from class in the preceding 6 months; • ships which have been subject of a report or notification by another authority; • ships which have been involved in a collision, grounding or stranding on their way to port; • ships accused of an alleged violation of the provisions of IMO as to pose a threat persons, property or environment. Ships are permitted to leave the port of a member state on conditions such as deficiencies are to be rectified before departure or at the next port or within 14days. If there are other conditions, it must be specified. Ships above 13 years are to be in the overall targeting factor of PSC. Q.4. Which certificates and documents are to be inspected for the PSC? Ans. The certificates and documents are to be inspected for PSC: 1. International Tonnage Certificate (1969); 2. Passenger Ship Safety Certificate; 3. Cargo Ship Safety Construction Certificate; 4. Cargo Ship Safety Equipment Certificate; 5. Cargo Ship Safety Radiotelegraphy Certificate; 6. Cargo Ship Safety Radiotelephony Certificate; 7. Cargo Ship Safety Radio Certificate; 8. Cargo Ship Safety Certificate; 9. Exemption Certificate including where appropriate the list of cargoes; 10. International Certificate of Fitness for Carriage of Liquefied Gases in Bulk; 11. International Certificate of fitness for the carriage of Dangerous Chemical in Bulk; 12. International Oil Pollution Prevention Certificate; 13. International Pollution Prevention Certificate for the Carriage of Noxious Liquid Substance in Bulk; 14. International Load Line Certificate; 15. International Load Line Exemption Certificate; 16. Oil Record Book, part I and II; 17. Cargo Record Book; 18. Minimum Safe Manning Document; 19. Certificate of Competency including Dangerous Goods Endorsement; 20. Medical Fitness Certificate; 21. Stability information including grain loading information and Document of Authorisation; 22. Document of Compliance and Safety Management Certificate issued in accordance with the ISM Code; 23. Certificates as to ship's hull strength and machinery installations issued by the classification society in question; 24. Document of Compliance with the special requirements for Ships Carrying Dangerous Goods;

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INDEX 25. High Speed Craft Safety Certificate and Permit To Operate High Speed Craft; 26. Dangerous goods special list or manifest, or detailed stowage plan; 27. Ship's log book (OLB) with respect to the records of tests and drills and the log for records of inspection and maintenance of lifesaving appliance and arrangements; 28. Special Purpose Ship Safety Certificate; 29. Mobile Offshore Drilling Unit (MODU) Safety Certificate; 30. For oil tankers, the record of oil discharge monitoring and control system for the last ballast voyage; 31. Muster list, fire control plan, and for passenger ships , a damage control plan; 32. Shipboard Oil Pollution Emergency Plan (SOPEP); 33. Survey report files (in case of bulk carriers and oil tankers); 34. Reports of previous port state control inspections; 35. For RO-RO passenger ships, information on the A/A maximum ration (A/Amax Certificate); 36. Document of authorisation for the carriage of grain; 37. Cargo Securing Manual; 38. Garbage Management Plan and Garbage Record Book; 39. Decision Support System for masters of passenger ships; 40. SAR Co-operation Plan for passenger ships trading on fixed routes; 41. List of operational limitations for passenger ships; 42. Bulk carrier booklet; and 43. Loading and unloading plan for bulk carriers. Q.5. When can a ship be detained under the PSC code? Ans. Where a ship in port appears to be dangerously unsafe or in case of deficiencies which are clearly hazardous to safety, health or the environment, she can be detained. When a ship is in clear contravention with the IMO codes or the health and the well being of the people on board is in danger, she can be detained. Pollution offences would also detain the ship. Q.6. What is 'Equasis' and what are its main principles? Ans. Equasis is a database holding safety-related details of more than 66.000 ships (as of June 2001), including a record of port state control inspections. It is on Internet and may be viewed by any member of the public. The main principles behind the Equasis information system are that: • it be a tool aiming at reducing substandard ships, limited to safety related information on ships; • it has no commercial purpose and basically addresses public concern; • it aims to be an international database covering the whole world fleet; • it has active and constructive co-operation with the world maritime industry; • it is a tool for better selection of ships and has no legal pressure to it, being done on a voluntary basis;

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it will promote the exchange of unbiased information, transparency in maritime transport and allow persons involved in maritime transport to be better informed about the performance of ships and maritime organisations with which they are dealing. The EU launched Equasis in 1997 to form apart of the Quality Shipping compaign. It is formally supported by signatories of marine Administrations, classification societies, P & I clubs and the ITF. Website: www.equasis.org.

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INDEX CHAPTER 10 PORT OF REFUGE Q.1. What constitutes a port of refuge? Ans. A port of refuge is a port or place that the vessel diverts to when her master considers it unsafe to continue the voyage due to a peril that threatens the “ common safety ”, e.g. when there is a dangerous ingress of water into a vessel, a dangerous shift of cargo, the vessel adopts an angle of loll, there is a serious fire on board etc. Where such a deviation is for the preservation from peril of property involved in a common maritime adventure, it will usually constitute a general average act and the costs of the deviation to stay at the port of refuge will be allowed in general average. Q.2. What are the typical procedures followed by a port for a ship calling a port of refuge? Ans. Procedures at any port of refuge will obviously vary with the circumstances surrounding the event necessitating the ship's arrival, but in general, the following basic steps should be followed: • As soon as the port of refuge decision is taken inform owners and charterers; • Record ship's position. Keep accurate records of all events and expenditure; • Appoint an agent, who must inform the port authority, pilot, local P & I club surveyor, immigration, customs, port health; • Salvor to be given the salvor's security; • Obtain health clearances; • Enter the vessel “ under average”; • After safe arrival in port inform owner and charterer, who will declare general average; • Note protest as soon as possible; • Notify insurance agent if there is hull and machinery damage; • Notify classification society; • If cargo damage is suspected inform P & I club; • If the voyage is terminated GA Bond and GA Guarantee are to be provided; • Arrange cargo discharge, trans-shipment or warehousing of cargo; • On receipt of class surveyor's report, tenders are called to do the final repairs in consultation with Salvage Association Surveyor and Insurance Agent; • Carry out repairs under class and salvage association guidelines; • On completion of repairs carry out another survey by class, and if found seaworthy will issue an interim certificate of class to await the final certificate; • Reload cargo under survey if voyage being continued; • Extend Protest to include all details of the damage and repairs. Keep copies of all letters; • Port agent will pay all repair bills;

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Send all relevant documents to the owners for onward transmission to average adjuster; Enter vessel outwards with customs outward clearance; Continue the voyage.

Examples of letters of protest: For discrepancy between ship and shore figures:LETTER OF PROTEST M.V. Voyage No.: Cargo: Berth/Terminal: Port: Time: Date: To: (recipient name and/or position) Please be advised that there is a discrepancy between ship and shore figure covering (description of cargo) loaded at your terminal (date). Shore figure --------Ship figure ----------Difference -----------The undersigned hereby declares that the Bill of Lading was signed under protest because of the unreasonable difference between the ship and shore figures. Protest lodged by ---------------- Master (Signature and vessel's stamp) Signed for receipt-------------------------------------------------------Company For slow discharging:LETTER OF PROTEST M.V. Voyage No.: Cargo: Berth/Terminal: Port: Time: Date: To: (recipient name and/or position) Please be advised that the average discharge rate has been ------------- mtph. The vessel can discharge ------------ mpth against psi.... kg/cm2. We have consequently not been allowed to use the vessel's full capacity.

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INDEX I hereby lodge protest accordingly, and we, including my desponent owners, hold you and/or Charterers responsible for all delays and consequences.

Protest lodged by ---------------- Master (Signature and vessel's stamp) Signed for receipt-------------------------------------------------------Company

General purpose letter of protest: LETTER OF PROTEST M.V. Voyage No.: Cargo: Berth/Terminal: Port: Time: Date: To: (recipient name and/or position) Please be advised that ...................................................... I hereby lodge protest accordingly, and we, including my desponent owners, hold you and/or Charterers responsible for all delays and consequences.

Protest lodged by ---------------- Master (Signature and vessel's stamp) Signed for receipt-------------------------------------------------------Company

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INDEX CHAPTER 11 STCW 95 AND THE STCW CODE Q.1. What is STCW 95 and how is different from STCW 78? Ans. The International Convention on Standard of Training, Certification and Watchkeeping for Seafarers, 1978 (STCW 78) was extensively revised in July 1995. The revised version is known as STCW 95 and entered into force on 1st February 1997 under IMO's " tacit acceptance" procedures. Important amendments to chapter 1 (General Provisions) in STCW 95 include: • enhanced procedures concerning exercise of PSC; • requirement to establish procedures for investigating acts by persons to whom they have issued certificates that endanger safety or environment; • recognition of technical innovation and use of simulators for training duly supported by quality assurance; • inclusion of medical standards including levels of fitness particularly with reference to eyesight and hearing; • requirement of every master, officer and radio officer to meet the fitness standards every 5 years including up-gradation as per section A I/11 of the STCW Code; • a reference to ISM Code in regulation 14 giving details of company's responsibilities for manning and certification, etc.; • chapter II deals with master and deck department and chapter III deals with engine department; • chapter V deals with special requirements concerning training and qualification of personnel on board Ro-Ro passenger ships, where crew must undergo training for crowd management and human behaviour; • chapter VII deals with functional approach to training; • seafarers with training and seagoing services before 1st August 1998 can be recognised up to 1st February 2002; • STCW 95 incorporates STCW Code to which many technical regulation of the convention is transferred, the revised convention contains general, basic requirements that are enlarged and explained in the STCW Code; • the major benefit of the STCW Code is that future amendments will not need a full IMO conference to update the same; • part A of the STCW Code is mandatory and contains for example tables for minimum standards required for seafarers; • part B of the STCW Code is recommended and contains guidance and advice intended to help with the implementation of the revised convention; • for each STCW convention regulation there is related mandatory section in part A and a related guidance in part B e.g. regulation I/11 is revalidation of certificates, corresponding to section A-I/3 and guidelines in section B-I/3; • STCW 95 is implemented in India by the MS act under the guidance of the Directorate General of Shipping.

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INDEX An important change in STCW 95 as compared with STCW 78 is that seafarers are required to attend FSA recognised maritime institutions after completion of their sea time and before appearing for their Certificate of Competency (CoC) examinations. The course, study plan etc. are given in the META manual duly approved by the DGS. Q.2. What is a "White List"? Ans. Countries, which have accepted the STCW 95 and implemented the education and training courses, certification procedures and other factors relevant to implementation are required to provide detailed information to the IMO concerning administrative procedure taken to ensure compliance with the Convention. The Maritime Safety Committee uses this information for other parties to accept certificates issued by these parties. Countries assessed by the IMO to be properly implementing the STCW 95 are placed on a so-called "White List" (properly called the list of confirmed parties) and published by the IMO on its website: www.imo.org. To gain a place in the White List, countries must report details of to the IMO Secretary General of national laws, training requirements, standards and systems in place, and ensure that all of those elements meet the revised STCW 95 requirements and can pass the scrutiny of persons with a detailed knowledge of those requirements. A position in the White List indicates that the issuance of certificates is in accordance with the STCW Convention. A country may not accept a non White List certificate unless the same is endorsed since 1st February 2002 by the FSA of the issuing country. As of 31st December 2002 there are 109 IMO members in the White List. Q.3. What are the certificates required for a seafarer under the STCW code? Ans. All seamen (word seaman is not defined in the regulation, but assumed to include all seafarers including masters) must receive familiarisation and basic safety training or instruction in accordance with STCW Code section A-VI/1, and must meet the appropriate standards of competence specified therein. Section A-VI/1 provides that all seafarers must be trained in: • personal survival techniques; • fire prevention and fire fighting; • elementary first aid; and • personal safety and social responsibilities. The seafarers must be provided with the necessary certificates for the above and should be able to undertake the tasks, duties and responsibilities as listed in the STCW Code. Every person designated to launch or take charge of survival craft or rescue boats other than fast rescue boats must have a certificate of proficiency of such craft. Every person designated to launch or take charge of a fast rescue boat must have a certificate of proficiency in such boats. Fast rescue boat means a rescue boat which is not less than 6 metres but not more than 8.5 metres long, and is capable of manoeuvring for at least 4 hours at a speed of at least 20 knots in calm weather with suitably qualified crew of at least 3 persons and at least 8 knots with a full complement of persons and equipment.

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INDEX " Survival Craft " and " Rescue Boat " has the same meaning under the LSA Regulations. Q.4. What are the mandatory requirements for certification of deck and engineer officers? Ans. STCW 95 prescribes mandatory minimum requirements for certification of deck and engine officers including requirements relating to age, medical fitness, seagoing service and standards of competence. To satisfy these requirements, candidates for certificate of competency must: • meet certain medical standards (including eyesight); • satisfactorily complete the minimum period of seagoing service; • reach the required vocational and academic standard; • undertake ancillary technical training; and • in case of officer candidates, on completion of programmes of education and training approved by the DGS, pass an oral examination conducted by the DGS. DGS also formulates courses and training for near coastal vessel. Certificates are also issued for " unlimited trading " or " limited trading ". Limited trading specifies the ship's types, engine types or trades. Dual certification allows for officers to be issued with a single certificate of competency combining deck, engineering and radio competencies subsequent to approved education, training and assessment. Q.5. What are the functions for deck examination as defined by STCW 95 and what are the levels of responsibilities? Ans. STCW defines seven functions as follows: • Navigation; • Cargo handling and Stowage; • Control and operation of the ship and care of persons on board; • Marine Engineering; • Electrical, electronic and control engineering; • Maintenance and repair; and • Radio communications. - at the following levels of responsibility: 1. Management (master, chief mate, chief engineer, second engineer); 2. Operational (watchkeeping officers); and 3. Support (watch rating and other ratings with safety and pollution responsibilities). • Management level means the level or responsibility associated with: serving as master, chief mate, chief engineer or second engineer on board a sea going ship, and ensuring all functions within the designated area of responsibility are properly performed under STCW code Section A-I/1.1.2; • Operational level means the level or responsibility associated with: serving as officer in charge of a navigational watch or engineering watch or as designated duty engineer for periodically unmanned machinery spaces or as a radio officer on board seagoing ship, and maintaining direct control over the performance of all functions within the 57 of 101

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designated area of responsibility in accordance with proper procedures and under the direction of an individual serving in the management level for that area of responsibility under STCW Code, Section A-I/1.1.3; Support level means the level of responsibility associated with performing assigned tasks, duties and responsibilities on board a seagoing ship under the direction of an individual serving in the operational or management level under STCW Code, Section A-I/1.1.4.

Q.6. What are the general provisions of sea service requirements as per STCW code? Ans. The minimum amount of sea-service acceptable for each grade of certificate of competency is given in Training and Certification guidance Part 2 for deck officers and part 3 for engineer officers. No certificates can be issued with out the requisite seaservice. At least 6 months of qualifying sea-service must be completed within the last 5 years. Certificate of watchkeeping services must be duly signed by the Master or Chief Engineer of the ship in which the service was performed. In case of service of Master or Chief Engineer, the responsible officer of the company must sign the certificate. The certificates incorporate testimonials as laid sown in the STCW code annexes. Where there is an approved Vocational Training (VQ) programme for on-board training, the trainee must produce a Training Record Book or a Training Portfolio completed in accordance with the recommendations of the Merchant Navy Training Board (MNTB). The applicant for his first examination must also produce as a minimum, evidence of participation in shipboard drills, exercises and training. Applicants not having Vocational Training programme must produce an approved Personal Training and Service Record Book duly certified by the relevant officer on board. Q.7. What are the training and certification requirements for 1. Tankers, 2. Gas and Chemical Carriers, 3. Ro-Ro Passenger Ships, and 4. Passenger ships other than Ro-Ro Ships. Ans. 1.Tankers: Ratings assigned specific duties and responsibilities related to cargo equipment (e.g. pumpman) and all officers on tankers must complete the following; • at least three months' seagoing service on tankers in order to acquire adequate knowledge of safe operational practices; or • a FSA approved tanker-familiarisation training programme covering the syllabus in STCW Code section A-V/1, paragraphs 2 to 7; or • at least 30 days service under the supervision of qualified officers of tanker of less than 3000grt engaged on voyages not exceeding 72 hours. In addition to the above the rating must undertake the advanced fire fighting training programme specified in STCW Code section A-VI/3. The master, chief engineer, chief mate, second engineer of the tanker must complete an oil tanker training programme covering the syllabus in STCW Code section A-V/1 paragraphs 8 to 14 and must have at least 3 months' sea service on an oil tanker.

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INDEX 2. Gas and Chemical Carriers: In addition to the certificates required for a tanker as mentioned above, the master, chief engineer, chief mate, second engineer of a chemical tanker or gas carrier must complete a chemical tanker training programme covering the syllabus in STCW Code section A-V/1 paragraphs 15 to 21 and section A-V/1 paragraphs 22 to 34 respectively and must have at least 3 months' sea service on a chemical tanker or gas carrier as the case may be. The requirements for Tanker Familiarisation Training and Specialised Tanker Training must be completed within the 5-year period prior to the date of application for an endorsement or Tanker Familiarisation certificate. 3.Ro-Ro Passenger Ships: All personnel providing a direct service to passengers, including those working in shops, bars and restaurants, must be able to communicate effectively between themselves and with the passengers during an emergency, as detailed in STCW Code section A-V/2, paragraph 3, and be able to demonstrate the correct donning of lifejackets. All personnel designated on muster lists to assist passengers in an emergency, must complete crowd management training as described in STCW Code section A-V/2, paragraph 1. This requires a refresher training every 5 years. All personnel with responsibilities related to loading ro-ro cargo and securing must be sufficiently familiar with the design and operational limitations affecting ro-ro passenger ships and the tasks detailed in STCW Code section A-V/2 paragraph 2. Masters, chief engineer officers, chief mates, second engineer officers and persons having immediate responsibility on ro-ro passenger ships for embarking/ disembarking passengers, loading/ discharging or securing of cargo and closing of hull openings must successfully complete FSA approved training in passenger safety, cargo safety and hull integrity specified in STCW Code section A-V/2, paragraph 4 and training in crisis management and human behaviour as specified in STCW Code section A-V/2 paragraphs 1 and 3. This training can be given also in-house or in conjunction with external training providers. 4. Passenger Ships other than Ro-Ro Ships: All personnel providing a direct service to passengers, including those working in shops, bars and restaurants, must be able to communicate effectively between themselves and with the passengers during an emergency, as detailed in STCW Code section A-V/3, paragraph 3, and be able to demonstrate the correct donning of lifejackets. All personnel designated on muster lists to assist passengers in an emergency, must complete crowd management training as described in STCW Code section A-V/3, paragraph 1. This requires a refresher training every 5 years. All personnel assigned specific duties and responsibilities on board related to design and operational limitations of ships must be sufficiently familiar with the special nature of passenger ships and operational limitation as detailed in STCW Code section A-V/3 paragraph 2.

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INDEX Q.8. What are the requirements for revalidation of certificate of competency as per STCW Code? Ans. Every master, officer and radio operator holding a certificate of competency under STCW 78 or STCW 95, who wish to serve at sea must revalidate the certificate at intervals not exceeding 5 years. Revalidation of watch keeping certificate is not required. All candidates for revalidation must: • meet the medical fitness requirements and produce that certificate; • for service in the deck department, have served as a master or deck officer in seagoing ships of any flag (other than fishing vessels) of more than 80grt or 24 metres in length for at least 12 months (which need not be continuous) during the preceding 5 years; • for service in the engine department, have served as an engineer officer in seagoing ships of any flag (other than fishing vessels) of at least 350kW registered power for at least 12 months (which need not be continuous) during the preceding 5 years; • for service as a radio operator have served as a radio operator or an officer in seagoing ships of any flag for at least 12 months (which need not be continuous) during the preceding 5 years. Q.9. What are the safe manning regulations as per STCW 95 and the Code? Ans. Safe manning, Hours of work and Watchkeeping are the principal regulations of the STCW 95 and its associated STCW Code. Safe Manning Document is kept on board the ship at all times and the does not proceed to sea without a valid document and properly qualified persons manning the ship at all times. The ship will be considered safely manned when the persons sailing on board will maintain safe navigational, engineering and radio watches, moor and unmoor ship safely, manage safety functions, perform operations for the prevention of damage to environment, provide medical care on board, ensure safe carriage of cargo and maintain the structural integrity of the ship. They must also be capable of closing watertight arrangements on board along with damage control, operate fire fighting, emergency and life-saving equipment on board. They should be able to muster and disembark all persons in case of an emergency. They must be capable of operating main propulsion and auxiliary machinery and maintain them in safe condition to enable the ship to overcome the foreseeable perils of the voyage. Under the hours of work, the important aspect is the minimum hours of rest, which must be not less than 10 hours in any 24-hour period and 77 hours in any 7-day period. Subject to regulation 6, hours of rest may be divided into no more than two periods, one of which shall be at least 6 hours in length, and the interval between consecutive shall not exceed 14 hours. Musters, fire fighting drills and lifeboat drills must be conducted in a manner, which minimises the disturbance of rest periods and does not induce fatigue. A seafarer shall have adequate compensatory rest period if his normal period of rest is disturbed by callouts to work. The master of a ship may require a seafarer to work any hours of work necessary for the immediate safety of the ship, persons on board ship or cargo or for the purpose of giving

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INDEX assistance to another ship or to a person in distress at sea. Rest period may be suspended till such time normalcy is restored. After the emergencies, the master must ensure that the seafarer gets his adequate rest period. A record of seafarers daily hours of rest must be maintained by the master or a person authorised by the master and must be duly endorsed by the master.

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INDEX CHAPTER 12 MASTER AND HIS RESPONSIBILITY Q.1. How is the command of a ship taken or handed over? Ans. On taking over command, a prudent master, on arriving at his ship, should: • have a check list ready of ' things to do on joining'; • note the condition of the visible exterior of the vessel, including draft marks, load line, etc.; • note the standard of rigging and maintenance of the accommodation ladder or gangway, and its accessories; • note the standard of maintenance of LSA and FFA; • take delivery of the all official documents from the off-going master; • make official log book entry and sign it jointly with the off-going master; • enter his name, certificate of competency type and number in the boxes on the front cover of the OLB; • add his reference number and his particulars in the OLB; • obtain the combination number of the ship's safe and associated keys from the offgoing master; • count all monies and sight all accounts and related documents in the master's custody; • sight all owners'. managers', classification and P & I documentation in the master's custody; And before sailing the new master should: • receive familiarisation training in accordance with STCW 95; • sight his personal life jacket and ensure that he knows how to don it in case of an emergency; • inspect the muster list and ensure it is updated; • read the relevant clauses of the charter party or bill of lading; • note any owner's or charterer's voyage instructions and /or side letters or addenda to the charter party; • consult the chief engineer on the condition of machinery and bunker fuel and lubricating oil situation, ensuring that any "safety surplus" of fuel required by the charter party to be carried is on board in addition to normal passage requirements; • consult the chief officer on the situation with cargo, stability, ballast, fresh water, stores, maintenance of the ship etc.; • examine the passage plan, if already made, for the next leg of the voyage, and consult appropriate officer; • check that all required charts and nautical publications are on board; • check that all crew are on board as per the Safe Manning Document; • check the ISM documentation for outstanding non-conformities; • read and if necessary write standing orders; • satisfy himself that he has personally exercised due diligence in ensuring that the vessel is seaworthy at the start of the voyage;

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make full inspection of the ship as soon as practicable and, if possible before taking the ship to sea. On handing over command to a successor and before leaving the ship, the master should: • ensure that he has signed each completed page of the Oil Record Book; • bring his accounts with owners or managers up to date; • count all ship's money in the master's custody; • write hand-over notes for the succeeding master; • have all documents relating to the ship, crew, cargo etc., in order for handing over to the succeeding master; • make the hand-over in person to the succeeding master; • make the relevant entry in the OLB that he has handed over command and record that he has delivered to his successor the documents relating to the ship and crew, which are in his custody, and sign this entry jointly with the succeeding master. Q.2. How does a successor take over command of a ship in case of an emergency? Ans. The master's proper successor to command in emergency is the senior surviving deck officer. Should the appointed master be incapacitated or die while the ship is at sea, the next-in-command is legally entitled to take the ship to her next port of call. He does not have to make the nearest port in order for another master to join unless so instructed by the owner or manager. The temporary master may legally command the vessel if he has STCW 95 master's qualification required for the size and operating area of the vessel. He must ensure that the Safe Manning Provisions of the regulation are complied with as per the Safe Manning Document. The employer may confirm the temporary master in his position. Q.3. What are the chief responsibilities of a master? Ans. Chief among master's numerous responsibilities are: • preservation of safety of crew, any passengers and the ship; • safeguarding of the marine environment; • to act as if the ship cargo were his own uninsured property; • the prosecution of the voyage with the minimum of delay and expense; • to always act in the best interest of the ship owner; • to carry out all that is usual and necessary for the employment of the vessel; • to obey the owner's instructions (except when they would mean breaching the law); and • to exercise care of the goods entrusted to him and see that everything is done to preserve them from harm during the voyage (e.g. ensuring proper ventilation, bilges are pumped, temperatures monitored and controlled, etc.).

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INDEX Q.4. What is a crew agreement and what are the master's responsibilities regarding it? Ans. A crew agreement is a contract between the employer (not the master) and each seaman whose name appears on a list of crew incorporated in the Crew Agreement document. It must be in writing and duly approved by the FSA. Both parties must sign it although the master or an agent may sign it on behalf of the employer. The agreement must be carried on the ship to which it is related when at sea. Contractual provisions must be contained in all approved crew agreement to cover: • the person between whom the agreement is made; • the description of the voyage or voyages to which the agreement relates, and their geographical limits and/or the duration of the employment; • the capacity in which each seafarer is to be employed; • the seafarer's pay, hours of work, leave and subsistence, which may be wholly or in part by incorporation of provisions of industrial agreement between the employer and the relevant trade unions; • other rights and duties of the parties to the agreement; and • the circumstances in which, not withstanding the notice provisions, the agreement may be terminated by either party. Q.5. What is a breach of crew agreement and how is it dealt with? Ans. Each crew agreement contains a Notice Clause listing breaches for which the master may terminate the agreement with the seaman. Typical clauses may be: • if a seaman is absent without leave at a time fixed for sailing; or • if in the opinion of the master, the continued employment of the seaman would be likely to endanger the vessel or any person on board. If a code of conduct is expressly incorporated in the crew agreement, the procedure in that code must be strictly followed by the master in dealing with any breach of the crew agreement. Breach of the crew agreement is a matter of contract law i.e. civil law, and may result in dismissal and /or a civil action for damages brought by the employer. The act constituting the breach of the crew agreement (e.g. assault, or possession of drugs) may, at the same time, be a criminal offence and may be dealt with accordingly; this may necessitate the master requesting police assistance from the port state or the coastal state authorities. Q.6. What are the guidelines for drug and alcohol abuse on board? Ans. Every shipping company has its own guidelines for drug and alcohol abuse on board. It broadly follows the " Guidelines for the Control of Drugs and Alcohol Onboard Ships" published by OCIMF in 1990. A drug and alcohol policy statement is made by the company and must be effective all through the working of the ship and master must ensure that the same is adhered. Drug and Alcohol (D&A) testing is now a common condition of service in all shipping companies and crew members including the master must agree and sign a company policy requirement for D&A testing. Testing is normally carried out by analysis of urine samples, taken in accordance with the written instructions from the company. The

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INDEX samples are usually forwarded to the company's designated laboratory via a rigorously monitored chain of custody. The Master's Own Test is usually supervised by the chief engineer. A company may reserve the right to search personal belongings of crew members who have signed the D&A undertaking, where reasonable cause exists to believe that the manufacture, distribution, use or possession of drug or drug paraphernalia is occurring contrary to its D&A policy. Possession or distribution of drugs by any person, including a passenger as well as a seafarer or other category of person on board an Indian ship is a breach of Indian criminal law. It is also a breach of Crew Agreement and the Merchant Shipping Act. Q.7. Which conditions may constitute a criminal liability for a seafarer? Ans. Following acts will constitute a criminal liability: • causing the loss or destruction of or serious damage to his ship or its machinery, navigational equipment or safety equipment; or • causing the loss or destruction of or serious damage to any other ship or any structure; or • causing the death of or serious injury to any person; or • omits to do anything required to preserve his ship or its machinery, navigational equipment or safety equipment from being lost, destroyed or seriously damaged; or • omits to do anything required to preserve any person on board his ship from death or serious injury; or • omits to do anything required to prevent his ship from causing loss or destruction of or serious damage to any other ship or any structure or the death or serious injury to any person not on board his ship. The conditions referred to above are acts of omission, which were deliberate and amounted to a breach or neglect of duty with the master or the seaman under the influence of drug or alcohol. The defence in these cases could be that the accused took all possible and reasonable steps to discharge his duties and he was under the influence of a drug taken by him for medical purposes and under medical advice. Q.8. What are master's actions in response to complaints from seamen? Ans. When three or more seamen complain about provisions or water, the master should, as soon as possible make an entry in the Official Log Book (narrative section) of the names of the seamen making the complaint, and the nature of and reason(s) of their complaint. Master should investigate the complaint and take appropriate action to remedy the same as soon as possible. A further entry should be made in the OLB detailing the master's response to the complaint. If the seamen are dissatisfied with the master's action in response to their complaint, a further entry should be made in the OLB and arrangements made for them to complain to the FSA.

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INDEX When a complaint is made of some other matter, consideration should be given as to whether to record the same in the OLB. It may be prudent to record any complaints related to safety of the ship or the safety or social well being of any person on board. Q.9. What are the actions of a master if the crew goes on strike? Ans. The master should make the following entry in the OLB - " This day the normal working of the ship was disrupted by reason of members of the crew being on strike in furtherance of a trade dispute". There should be no attempt by the master to sail the ship without a full crew of properly trained and qualified persons. There should be no attempt to break the strike by sailing the ships with gaps in the crew compliment or with any unsafe condition. Safety of any person should at no time be jeopardised. It is in the interest of all concerned that the master of the ship does not participate in any strike and he must maintain his statutory and contractual position. In that case the master of the ship will have an honourable position to be a part of the negotiated settlement during and after the strike. The master should seek advice from the company DPA and work in close co-ordination with all concerned including members from ITF and/or union to ensure that there is no violence or bitterness in a negotiated settlement. Q.10. What procedures are required to be followed in case of a death on board? Ans. Consult the Ship Captain's Medical Guide, Chapter 12 (The Dying and the Dead) for guidance. This chapter contains sections on Cause of Death, Procedure after Death and Disposal of Body. Establish the cause of death, if possible. If a doctor is available, have the cause of the death certified by the doctor. Obtain witness statements from relevant personnel as soon as possible after the occurrence of the death. The FSA investigation or other officers, who may come on board in connection with the death, will require these statements. Inform the owner or manager as soon as possible. Check the Safe Manning Document to ascertain whether a replacement for the deceased seafarer needs to be obtained before the vessel proceeds to sea. If the replacement is necessary inform the owner or the manager. If the vessel is near or in a port inform the agent requesting him to inform the relevant authorities of the port state (i.e. port health authority, police and customs). Inform the next of kin as soon as possible and in any case with in 3 days. The owner or the managers will probably do this, but it is the master's statutory obligation to do so. Inform the P&I club correspondent and seek his advice on local formalities and procedure for repatriation of the body, if this were required. If the death was accidental, have the safety officer make his statutory investigation, report and accident log entry. Make appropriate entries in the OLB. Preserve the body as per guidelines given in the Ship Captain's Medical Guide. The usual and preferred procedure to preserve a body is by chilling. Where the body cannot be preserved, any burial at sea should be in conformity with the procedures laid out in the Ship Captain's Medical Guide and only with the express permission of the deceased person's next-of-kin.

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INDEX The Birth and Death form should be obtained and dully filled with all relevant details as per the OLB and despatched to the appropriate authority. List of crew as per articles of agreement must be dully entered and witnessed. Amend the crew list for the future ports. The Discharge Book should record " DECEASED " in the date of discharge space. Accounts of the deceased should be completed with advances if paid, overtime payable etc. and forwarded to the owner or manager. Have two officers tally and pack the deceased person's personal property. Pack one copy of the tally sheet with the property and attach a copy to the OLB as an annex. Record the same in the narrative section of the OLB. If the ship is outside the Flag State and the body of the deceased is to be repatriated or buried locally, consult the P&I Club correspondent and take actions as per their advice. It is imperative that the next-of-kin are consulted and kept fully informed.

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INDEX CHAPTER 13 CHARTER PARTY Q.1. What is a liner trade and how is it different from a tramp trade? Ans. Liner trade is a trade where a ship is operated on one or more fixed routes with advertised and scheduled sailing. True passenger liners operating on ocean services were mostly displaced in the 1960s by jet airliners. Today, very few long-haul passenger liners remain and most passenger ships now operate as cruise ships. A liner cargo vessel will accept any suitable cargo, if space permits. Most liners are container ships, ro/ros or multi-purpose (ro-ro/lo-lo) vessels. The ship's operator may be the owners or bareboat charterers or time charterers, in which case they will be referred as disponent owners or time-chartered owner. The liner vessel's operator is normally the performing carrier or the ocean carrier. The carrier's customers are shippers, who may include freight forwarders and non-vessel-operating-carriers (NVOCs) or non-vessel-operating-common-carriers (NVOCCs) sometimes called non-vessel-owning-common-carriers. A carrier may issue a booking note when a cargo booking is made, and will usually issue a bill of lading or a sea waybill, depending on the shipper's requirements, as a form of receipt to the shipper of each consignment of goods, as evidence of the contract of carriage. The carrier will usually employ liner agents and/or loading brokers in order to canvass for and book his cargoes. The carrier may be a member of a liner conference, consortium, alliance or similar arrangement, or may be a nonconference operator. When a ship is employed in the charter market, some times called a tramp trade, the owner generally intends that she will be fixed by shipbrokers on a succession of charters. The ship may be fixed on a voyage charter market called the spot market or in the time charter market. In both the cases of voyage or time charter, the ship may be sub-chartered by the head charterer to another charterer. The ship may simultaneously be employed under a contract of affreightment. A tramp vessel will not operate on a fixed route to an advertised schedule, except when time-chartered to a liner operator. Ship owners normally employ the services of shipbrokers to fix any vessel on time or voyage charter. The master on behalf of the charterers issues the bill of lading. Q.2. How are ships in the dry bulk and tanker market categorised? Ans. In the dry bulk shipping market the categories are as under: • Handysize 10,000 - 29,999 dwt; • Handymax 30,000 - 49,999 dwt; • Panamax 50, 000 - 79.999 dwt; • Capesize 80,000 dwt and above Tanker market categories are: • Handysize 27,000 - 36,999 dwt; • Handymax 37,000 - 49,999 dwt;

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Panamax 50,000 - 74,999 dwt; Aframax 80,000 - 119,000 dwt; Suezmax 150,000 - 200,000 dwt and she can sail through the Suez Canal when fully loaded.

Q.3.Which parties are involved in transportation of goods by sea? Ans. The seller and the buyer are the parties contracting with each other for the delivery of the goods. Both parties agree on trade terms, which will influence the type, and terms of shipping documents (e.g. bill of lading or seaway bill). The seller may employ the services of a freight forwarder, who may the legal shipper. NVOCC operator may also be contracting for the transportation of the goods. The carrier will issue the document evidencing receipt of the goods by the carrier (e.g. bill of lading or seaway bill) whoever the shipper is in law, to that party. In the U.S.A. the shipper is called the consignor. A freight forwarder is a transport intermediary, who arranges the export of another party's goods by land, sea or air and "forwards" the goods into the care of the sea carrier. Freight forwarders advise on routeing, booking space, paying freight, preparing customs documents, make customs entry, arrange packaging and warehousing etc. They also arrange goods transit insurance, and in many cases do the groupage or consolidation i.e. converting LCL (Less than Container Load) into FCL (Full Container Load). It will have a cost-effective shipment in one transport unit of several small parcels sent by different shippers, where they are destined for the same port or place of delivery. A carrier is a party who contracts with a shipper for the transportation of goods by sea. In the liner trade, where NVOCC operators are offering shipping services, the carrier with whom the seller makes his contract is not necessarily the carrier actually performing the sea carriage. The consignee is the party to whom the goods are consigned or sent by the shipper. He may the buyer of the goods or acting as an import agent for the buyer. The receiver is the party who takes receipt of the goods from the sea carrier at the port or place of delivery. Some consignees will take direct delivery of the cargo, but in most cases they will employ a freight forwarder as a clearing agent in the customs and other formalities of importing the goods, and for transportation of goods to their ultimate destination. When loss or damage to goods is discovered on discharge, it is often the receiver who notifies the carrier. The notify party (a term found in the bill of lading or seaway bill) is the party who must be informed by the carrier of the ship's arrival, so that the collection of the goods can be arranged. The notify party can be a consignee or a receiver. Banks will form links in the transport document chain when payment for the goods is being made by means of a letter of credit. Depending on the trade terms, either the buyer or the seller will take out goods transit insurance with a cargo insurer.

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INDEX Q.4. Outline the meaning of following International Trade Terms (INCOTERMS): EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU & DDP. Ans. EXW : Ex Works (named place). FCA : Free Carrier (named place) FAS : Free Alongside Ship (named port of shipment) FOB : Free On Board (named port of shipment) CFR : Cost and Freight (named port of destination) CIF : Cost Insurance and Freight (named port of destination) CPT : Carriage Paid To (named port of destination) CIP : Carriage and Insurance Paid To (named port of destination) DAF : Delivered At Frontier (named place) DES : Delivered Ex Ship (named port of destination) DEQ : Delivered Ex Quay (named port of destination) DDU : Delivered Duty Paid (named port of destination) DDP : Delivered Duty Paid (named port of destination) It can be seen from the above that from EXW to DDP, the seller gathers more responsibility and the right of ownership in the transport chain moves from the seller's premises towards the buyer's premises. Q.5. Explain the terms FOB and CIF in detail and their advantages. Ans. FOB means Free On Board (named port of shipment) e.g. FOB Paradip. The seller must supply the goods and documents as stated in the contract of sale. He must load the goods on board the vessel named by the buyer at the named port of shipment on the date or within the period stipulated. He must bear all costs and risks of the goods until they have passed the ship's rail at the named port of shipment, including export charges and taxes. Risk passes when the goods pass the ship's rail. The seller must notify the buyer when the goods have been loaded. The seller must give sufficient information to the buyer to arrange insurance: if the seller fails to give enough information, the risk stays with him. The buyer must charter the ship or reserve space on a ship and notify the seller of the name of the ship, load port/berth and loading rate. The buyer bears all costs including insurance from the time the goods cross the rails of the ship at the load port. He must also pay the freight collectable by the carrier from the buyer at the discharge port. Seller will provide the buyer the bills of lading, certificate of origin etc. FOB is advantageous when the cargo is of a type or size (i.e. oil), where the buyer arranges the charter of the ship. FOB is also popular in countries with foreign exchange restrictions or where the governments want the importers to use the national flag vessels. It is used mainly for bulk sale contracts. The title of the goods does not pass to the buyer in the bill of lading until shipment is completed. FOB contract is based on the load port and the buyer after the shipment and release of the bill of lading is free to sell the goods even while they are on the vessel. FOB invoice price is

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INDEX lower than the CIF price. We can find FOB ST, which means free on board stowed and trimmed. CIF means Cost, Insurance and Freight. It is a contract based on a discharge port. The seller must pay all costs including the marine insurance and freight to carry the goods to the named destination, but risk passes from the seller to the buyer when the goods cross the rails of the ship at the load port. The seller must supply the goods and pays for the carriage of the goods to the agreed port of destination, paying the freight and loading/unloading charges. He must arrange at his own expense the marine insurance policy covering the goods against the risks of carriage for the CIF price plus 10%. Any war risks insurance required by the buyer must be arranged by the seller but charged to the buyer. The seller provides the buyer with clean, negotiable bill of lading for the agreed date of loading, an invoice, an insurance policy or certificate of insurance and a copy of the charter party if required. The seller must tender all documents to the buyer, his agent or his bank. The buyer must accept the documents when tendered by the seller and must pay the agreed contract price. Property passes on transfer to the buyer of the documents. The buyer bears all costs and charges excluding freight, marine insurance and unloading costs unless included in the freight when collected from the carrier. The buyer must pay for the war risk insurance if he requires it. He must effectively bear all costs of the goods from passing the ship's rail at the port of shipment. He is protected by the insurance arranged by the seller. As the seller pays the freight the bill of lading is marked " Freight Prepaid ". The master must ensure that the freight is actually paid before signing the bill of lading. The buyer bears the risk during the voyage, but the title of the goods only passes, when the buyer takes up the documents. The buyer must pay when documents are received. CIF contract is more of a sale of document than a sale of goods so as to enable the negotiability of the bill of lading. The advantage of the CIF contract to the buyer is making the seller wholly responsible for the arranging the shipment. The seller is protected against loss or damage before payment by the insurance policy. The seller can also retain title in the goods beyond the time of shipment and as security against payment by the buyer, so it is easy for the seller to obtain credit at his bank. Goods cost more under CIF terms than FOB. In view of the advantages of the CIF terms in which the banker's documentary credit system requires the transfer of title through the passing of the documents, a vast majority of the sea borne cargo shipments is CIF. Q.6. What is a Documentary Credit System (DCS) between a buyer and seller of goods? Ans. DCS is a money transfer system commonly used in overseas trade to enable sellers to obtain early payment; i.e. soon after shipment of the goods. Banks check the documents carefully before they make the payments. As an example if we assume a seller in India and a buyer in New Zealand: 1. Seller and Buyer conclude their sales contract, specifying payment by documentary credit.

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INDEX 2. Buyer instructs his bank in NZ to open a credit in favour of Seller. 3. Buyer's NZ bank verifies Buyer's Credit-Worthiness and issues a Letter of Credit (LoC) containing terms of the credit i.e. documents, times of loading etc. Buyer's bank sends the LoC to Seller's bank. 4. Seller's bank checks LoC requirements, then sends LoC to Seller. 5. Seller despatches goods, assembles documents required by LoC, usually invoice, insurance certificate, full set of 'clean on board' bill of lading made 'to order', which are obtained once the goods are shipped. Seller presents all shipping documents to his bank and asks for payment. 6. Seller's bank checks documents against LoC requirement. If they comply including the clean bill of lading, the Seller's bank pays Seller and sends documents to Buyer's bank. 7. Buyer's bank checks documents against LoC. If they comply, Buyer's bank releases documents to Buyer against payment, then reimburses Seller's bank. 8. Buyer receives documents, enabling him to obtain release of goods from ship. In case the bill of lading is claused, there could be no payments made as payment is made only against clean bill of lading. Q.7. What are the different charters? Name salient features of a) Time, b) Voyage and c) Bareboat charter parties. Ans. In the maritime context charters include: • contracts of carriage of specified quantities of cargo in specified vessels between specified ports (Voyage Charter); • contracts for hire of specified vessels, including: time charters; and 9 bareboat charters (also known as demise charters). (a) A voyage charter is a contract for the carriage by a named vessel of a specified quantity of cargo between named ports or places. It can be compared to hiring of a taxi for a single journey or several consecutive journeys like a consecutive voyage charters. The ship owner agrees to present his ship (given name) for loading at a the agreed place within an agreed period of time and following loading will carry the cargo to the agreed place, where he will deliver the cargo. The charterer, who may be the cargo owner or may be chartering for the account of another party such as a shipper or the receiver, agrees to provide for loading, within the agreed period of time, the agreed quantity of the agreed commodity. He also agrees to pay the agreed amount of freight, and to take delivery of the cargo at the destination place. In effect, the charterer hires the cargo capacity of the vessel e.g. a chemical carrier carries several parcels fixed with different charterers. Control of the ship stays with the ship owner. The ship owner pays for the wages of the crew and master, all the running and voyage costs. (b) A time charter is a contract for the hire of a named vessel for a specified period of time, may be equivalent to a chauffeur-driven car (ship's crew being "the chauffeur"). The charterer agree to hire from the ship owner a named vessel, of a specified technical characteristics, for an agreed period of time for the charterer's purpose subject to agreed restrictions. The hire period may be the duration of one voyage (a

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INDEX "trip charter") or anything up to several years ("period charter"). The ship owner is responsible for vessel's running expense i.e. manning, repairs and maintenance, stores, master's and crew's wages, hull and machinery insurance etc. The ship owner operates the vessel technically, but not commercially. The owner bears no cargohandling expenses and does not normally appoint stevedores. The charterers are responsible for the commercial employment of the vessel, bunker fuel purchase and insurance, port and canal dues (including pilotage, towage etc.) and all loading/ stowing/ trimming/ discharging arrangements and costs. They direct the ship's commercial operations, but not her daily running and maintenance. The charterers normally appoint stevedores and nominate agents. Charterer to provide the master full instructions for sailing and the master and chief engineer must keep full correct logs for inspection by the charterers. Clauses may provide for charterers to make an extra payment for hatch cleaning etc. Time charterers are normally allowed to fly their own house flag and paint the funnel and shipside their colours at their expenses. (c) A bareboat charter (some times called charter by demise or demise charter)9 is a contract of hire of vessel for an agreed period during which the charterers acquire most of the rights of the owner; 9 is like a long-term vehicle lease contract; 9 is mostly on the BARECON 89 charter party form; 9 is used by bankers or finance houses who are not prepared to operate or manage the ship themselves; 9 is often hinged to a management agreement where the owner will manage the ship for the period of charter, especially in the tanker trade; 9 may be hinged to a purchase option after expiry of the charter or before (hire payment being made in instalments and transfer of ownership following the payment of final instalment). The owner places the vessel without any crew at the disposal of the charterer and pays the capital cost and usually no other costs. The charterer pays for the technical and commercial management of the ship. Under BARECON A form, the owner usually pays for the insurance premium. Under BARECON B form, the charterers pay for the insurance premium. BARECON B is for long term bareboat charter and mainly for newly built ships but can be used for second hand ships. BARECON 89 is an amalgamation of BARECON A and B forms. It is designed to cater to the modern demand of bareboat charterers and shipowners. A lease agreement is a means of financing the acquisition of ship. It utilises the bareboat charter as a vehicle for loan repayment agreement. The tax benefit can be shared by agreements made besides the bareboat charter party. Normally the lessee owns a ship and on contracting for a new built ship has a lease agreement in which he transfers the ship to a lessor. The lessor in turn gives the ship on bareboat charter back to the lessee. This allows tax benefits, which are passed on to the lessee on his payment of installations.

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INDEX Q.8. What is a sub-charter? Ans. It is common in a time or voyage charter to allow for sub-charter a ship in whole or in part, on condition that the head charterer remains responsible to the shipowner for the performance of the original charter party. It is possible therefore to have a vessel: owned by a bank or finance house; 1. leased or bareboat chartered to company A; 2. time-chartered from company A by company B; 3. voyage chartered from company B by company C; 4. employed by company C in its own liner service or even sub-chartered from company C to company D. Any reference to a disponent owner refers to a sub-charterer, who assumes the responsibilities of a real owner. Q.9. What is a contract of affreightment (COA)? Ans. Contract of affreightment (COA) is essentially a contract to fulfil a long-term need for transport of especially bulk cargoes like iron ore or coal. It is an agreement between the shipowner, disponent owner or carrier for the carriage of a specified large quantity of cargo between specified ports over a specified period of time. The type and size of the ships to be used are to be stipulated by the charterers and nominated by the owners. The total period of charter is defined in the initial stage, but the shipment dates are kept flexible giving it an even spread of time e.g. every three months etc. The minimum quantity to be loaded every voyage is stipulated giving an option e.g. 20000 tons 5% MOLO (more or less owner’s option) or MOLCO (more or less charterer’s option). COA may be based on a standard charter party with additional rider clauses, supplemented by separate voyage charter party for each voyage. Q.10. What are the duties and responsibilities of a shipbroker? Ans. A shipbroker is the normally the negotiator for “ fixing “ a ship between a shipowner and a charterer. But the term includes the following: 1. Owner’s brokers, who find and arrange employment of their principle’s ship; 2. Charterer’s brokers, who find ships for their principal’s requirements; 3. Tanker brokers, who arrange oil cargo fixtures for the specialised oil trade; 4. Coasting brokers, who work for short sea trade; 5. Ship’s agent, who are employed by the shipowners or charterers to service the ship in a port; 6. Sale and purchase brokers who buy and sell ships and if required arrange new buildings for a shipowner. There are several steps in a ship fixing process: 1. Cargo orders from charterers or shippers looking for a ship; 2. Circulation by owners’ broker of position list or tonnage list detailing expected open dates and positions of ships;

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INDEX 3. Study of market report by brokers; 4. Negotiations of main terms with offers and counter offers; 5. Negotiations “on subjects” e.g. subject stem or subject receiver’s approval etc., where the main terms have been agreed but the final agreement is subject to various secondary agreed terms; 6. Fixture, where the final terms and conditions are fully agreed and all subjects lifted. Follow up of a fixture is called post fixture and a good shipbroker ensures the close post fixture working of the ship not only for his future relationship with the parties concerned but also for the brokerage amount he has to receive from the shipowner or the charterer. Q.11. Given below are some of the chartering terms in abbreviations used by shipbrokers: AA: always afloat ABT: about AG: Arabian Gulf APS: arrival pilot station B: ballast B/Ls or Bs/L: bills of lading BB: ballast bonus, below bridge BBB: before breaking bulk BENDS: both ends (load and discharge ports) BWAD: brackish water arrival draft C/P: charter party CD: customary despatch CFR: cost and freight CHOPT: charters’ option CIF: cost insurance and freight COA: contract of affreightment COMBO: combination port CONT: continent COP: custom of port CQD: customary quick despatch CVS: consecutive voyages DLY: delivery DFD: demurrage/ free despatch DHD: demurrage half despatch DLRS: US dollars DOP: dropping outward pilot DWAT: dead-weight all told DWCC: dead-weight cargo capacity ECSA: East Coast South America EIU: even if used ETA: estimated (expected) time of arrival ETC: estimated (expected) time of commencement (completion)

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INDEX ETD: estimated (expected) time of departure ETS: estimated (expected) time of sailing FAC: fast as can FAS: free alongside ship FCL: full container load FDESP: free of despatch FEAST: Far East FHEX: Friday and holidays excepted FHINC: Friday and holidays included FILO: free in liner out FIO: free in and out FIOS(T): free in and out stowed FIT: free in and trimmed FLT: full liner terms FOB: free on board FOQ: free on quay FOW: free on wharf FP: free pratique FWAD: fresh water arrival draft Gross terms: carrier arranges/ pays for cargo handling but laytime will probably apply. GSB: good and safe berth GSP: good and safe port HAT: highest astronomical tide HSS: heavy grain, sorghums, soyabeans HWOST: high water ordinary spring tides IWL: institute warranty limits K: knots L: laden L/C: letter of credit LAT: lowest astronomical tide LCL: less than container load Liner Terms: carrier arranges/ pays for cargo handling at load and discharge ports as well as carriage LO/LO: lift on/ lift off LT: long ton (1LT = 1.016 MT = 2240 lbs.) MHWN: mean high water neaps MHWS: mean high water springs Min/max (minimax): minimum/ maximum (exact quantity) MLWN: mean low water neaps MLWS: mean low water springs MOL: more or less MOLCO: more or less charters’ option MOLOO: more or less owners’ option MT: metric tonne (1MT = 1000kg = 0.9842 LT) NAABSA: not always afloat but safe aground

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INDEX Nett Terms: cargo handling is arranged/ paid for by charters or shipper NOR: Notice of Readiness NVOC(C): non-vessel-owning (common) carrier PCT: percent PPT: prompt (cargo or ship available promptly) RO/RO: roll on /roll off ROB: remaining on board SA: safe anchorage SATPMSHEX: Saturday afternoon, Sundays and Holidays excluded SB: safe berth SC: scale SCALELOAD: load rate according to C/P scale SHEX: Sundays and holidays excluded SHINC: Sundays and holidays included Sous palan: under hook (i.e. barge cargo) SP: safe port Spot: cargo or ship available immediately Stem: readiness of cargo SWAD: salt water arrival draft SWL: safe working load T/C: time charter TIP: taking inward pilot USNH: US East Coast north of Cape Hatteras W/M: weight or measure WCCON: whether custom cleared or not WIBON: whether in berth or not WIFPON: whether in free pratique or not WIPON: whether in port or not WP: weather permitting WW: weather working WWReady: when and where ready Q.12. What are the salient clauses of a voyage charter party? Ans. The basic provisions of a typical voyage charter party are: 1. Preamble - which identifies the parties to the C/P, name of the vessel, her present position and ETA load port (named) with the obligation to proceed to the load port, amount and nature of cargo to be loaded, obligation to proceed to discharge port (named) and deliver the cargo. 2. Owner’s responsibility - which states owner’s liabilities or exclusion thereof in case of loss, damage or delay in delivery of cargo. 3. Deviation - gives the liberty to the ship to call any port in any order and to save life or property. 4. Freight - gives the rate per W/M, amount and payment of freight. 5. Loading/ discharging costs - states who is responsible for the loading/ discharging costs of the cargo.

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INDEX 6. Laytime - gives the duration of the laytime allowed, exception to the laytime, commencement of laytime and time and manner in which to tender a NOR. 7. Demurrage - states the duration of the demurrage period allowed and whether it is allowed in the load and/ or discharge port. 8. Lien - whether the owner can have a lien on the cargo for freight, dead freight, demurrage and/ or detention and whether the charterers are to be responsible for the freight and demurrage etc. incurred at the discharge port. 9. Bills of lading - gives the master’s obligation to sign the bills of lading. 10. Laydays and cancelling - states the conditions under which the charters have the option to cancel the charter. 11. General Average - gives the rules under which GA can be settled. 12. Agency – owner’s or charterer’s obligation to appoint agent at loading and discharge ports. 13. Brokerage – amount of brokerage payable and parties thereof. 14. Strikes – in case of strike or lockout fulfilling the obligation as per CP, the responsibilities for the consequences. 15. War Risks – liberty of owner to cancel charter in case of outbreak of war, liberty of master to sail from load port before completion of loading in the event of outbreak of war. 16. Ice – liberties of master in case of inaccessibility to a load or discharge port due to ice. 17. Clause Paramount – identity of liabilities applying to bills of lading issued. 18. New Jason Clause – protection of owner against U.S. lawsuits where General Average is to be adjusted in accordance with U.S. laws. 19. Both To Blame Collision Clause – protection of owner against U.S. law in case of collision. 20. Law and Arbitration – jurisdiction to which any dispute to be referred i.e. place of arbitration and appointment of arbitrators. Q.13. What is “ World Scale “ and how is it used for reference to fix a tanker on charter? Ans. World Scale is the code name for the “ New Worldwide Tanker Nominal Freight Scale “, published by Worldscale Association (London) Limited and the Worldscale Association (NYC) Inc., which are controlled by panels of leading tanker brokers in London and New York City respectively. Oil cargo may be bought and sold many times while being carried at sea. The cargo owner therefore will need great flexibility in his discharge options. Unlike a dry cargo fixture, where the sea passage and other expenses are recalculated for a different route/ port, tanker fixtures are based on a standard and deviation from that standard in percentage terms. This avoids the problems on recalculation every time the ship has to change its route or port of discharge. Worldscale provides a set of nominal rates designed to provide roughly the same daily income irrespective of the port of discharge. Worldscale is a schedule of nominal tanker freight rates used as a standard of reference by means of which rates for all voyages and market levels in the crude and

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INDEX oil products tanker trades can be readily compared and judged. This makes the business of tankers on charter easier, quicker and more flexible. Worldscale is based on an average vessel with average costs earning an average rate. It works on the basis that, using the realistic costs of operating an imaginary standard tanker of ‘average’ size on an ‘average’ 15,000 miles round voyage, the break-even freight rate on that route for that ship can be worked out. This Worldscale Flat rate is calculated in USD per metric ton of cargo carried on a standard loaded voyage between a loading port and a discharge port with a ballasted return voyage. The standard vessel is of 75,000 dead weight with an average service speed of 14.5 knots and consumption 55 m.t. of 380 CSt fuel per day while steaming, plus 100 m.t. per round voyage for other purposes and an additional 5 m.t. in each port in the voyage. Port time allowed is 4 days for the voyage. On an assumption of the vessel is on time charter, the fixed hire is taken as USD 12,000 per day. Bunker prices are assessed annually by the Worldscale associations and are based as well for the port charges on the previous year’s average. Average exchange rates for the previous September is used. The total voyage costs divided by the cargo tonnage will give the Worldscale Flat rate or “W100” for that voyage. From the Worldscale Flat rate, the Associations calculate the different rates for about 60,000 other key tanker routes and list them daily in a schedule made available to those who subscribe for it. Steaming distances, Suez and Panama Canal transit dues, port charges, bunker price differences between ports and various other factors mean that, in order for the ship to break even, some routes will require a higher freight rate than others. A voyage from Rotterdam to Wilhemshaven from Mina al Fahal (via Suez) will be listed as 12002 miles and may on a given date have a Worldscale Flat rate of USD11.08, while the same voyage via Cape of Good Hope (21642 miles) will be listed as USD17.37. These published Worldscale Flat rates are used for tanker charter negotiations. It is customary in the tanker chartering market to express freight levels as percentage of the published Worldscale rates, a method known as “ points of scale”. Thus “Worldscale 100” or “W100” means 100 points of 100% of the published rate or the published rate itself. W250 means 250% of the published rate. Economic of scale dictates that a large tanker carrying large quantity of oil will have less freight rate per ton to break even in a similar voyage to a small tanker carrying less oil. A VLCC may therefore be quoted as W41, whereas a 50,000-tonner will have W150 or more. In a fixture the negotiated freight rate will depend on the market fluctuations, but the basis for the negotiation will be the “Worldscale Freight Rate”. Examples of tanker fixture can be: Persian Gulf to Singapore M.T. Nilachal Express 255,000t, W42.5 January 5 (Lanark Oil).

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INDEX Q.14. What are the salient features of a time charter party? Ans. The salient features of a typical charter party are: 1. Preamble – identifies the parties charterer/ shipowner and gives full details of the ship, her present position etc. 2. Period/ port of delivery/ time of delivery – period of hire, port and time of delivery to charterer. 3. Trade – legalities of trade, legalities of cargoes carried, safety of ports used and prohibition of cargoes injurious to ship. 4. Owners to provide – owners’ obligation to pay for specified items. 5. Charterers to provide – charterers’ obligation to pay for specified items. 6. Bunkers – charterers’ obligation to buy bunkers R.O.B. at delivery port, provide specified bunkers to vessel, owners’ obligation to buy bunkers R.O.B. at redelivery port, minimum quantity of bunkers to be on board on redelivery. 7. Hire – charterers’ obligation to pay hire at the specified rate, at specified intervals until redelivery; giving owner the right to withdraw vessel for default in hire payment. 8. Redelivery – charterers’ obligation to redeliver vessel in same condition as when on delivery (fair wear and tear accepted), redelivery place/date/time, notices required to be given. 9. Cargo Space – agreement on giving the entire cargo space of ship at charterers’ disposal. 10. Master – to execute the voyage speedily, master and crew to assist the charterer, master’s compliance with charterers orders relating to vessel’s employment, agency etc., charterers indemnifying owners and his servants on signing B/L or any other documents or complying with charterer’s orders, exclusion of owner’s liability for cargo claims, owner’s agreement to investigate charterer’s complaints about crew. 11. Direction and Log – charterers’ obligation to provide master with voyage instructions and information, obligation of master and engineers to make voyage logs available to charterers and their agents. 12. Suspension of Hire – suspension of hire payment for any duration of “downtime” of the vessel in specified circumstances, charterers responsibility for loss of time in specified circumstances. 13. Cleaning Boilers – owners’ responsibility to clean boilers with vessel in service, if possible, charterers’ obligation to allow boiler-cleaning time where necessary, suspension of hire when boiler-cleaning time extends beyond a specified time. 14. Responsibilities and Exemptions – conditions under which the owners will be responsible for delay in delivery, delay during the charter, or loss or damage to cargo, owners’ exclusion of responsibility in all other circumstances, charterers’ responsibility for loss or damage to vessel or owners caused by improper loading, bunkering or other acts by them or their servants. 15. Advances – charterers’ obligation to advance necessary funds to master for ordinary disbursements at any port, deduction of advances from hire.

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INDEX 16. Excluded ports – prohibition on charterers from ordering vessel to a place where disease is prevalent or which could be beyond the agreed limits of the crew agreement, or to any ice-bound place. 17. Loss of vessel – cessation of charter hire from the date of loss of vessel. 18. Overtime – owners’ obligation to place the vessel 24 hours in a day to charterers’ disposal and charterers’ obligation to pay overtime for crew working. 19. Lien – owners’ lien for claims under the charter on cargoes, sub-freights and bill of lading freight. 20. Salvage – equal sharing of salvage money after deductions of master and crew’s proportions and other expenses. 21. Sublet – charterers’ option to sublet vessel, original charterers responsibility to fulfil the C/P obligations. 22. War – prohibition on charterer from using the vessel in war zones or for carriage of goods which will expose her to risks of capture etc.; charterers’ responsibility to pay any war risks premiums, hire for time lost due to war like operations and increased costs due to war zone operations, liberty of vessel to comply with flag state orders during war, cancellation of charter by either party and redelivery of vessel if flag state becomes involved in war. 23. Cancelling – charters’ option of cancelling charter if the vessel is not delivered by agreed date, charterers’ obligation to declare intention to cancel. 24. Arbitration – reference of dispute to arbitration in Mumbai or at any agreed place, nomination of arbitrators by parties, umpire’s decision where arbitrators disagree. 25. General Average – rules under which GA is to be settled; non-contribution of hire to GA. 26. Commission – amount of (brokerage) commission to be paid by owners, and party to whom payable.

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INDEX CHAPTER 14 BILLS OF LADING Q.1. What is a Bill of Lading and describe its functions? Ans. A Bill of Lading 1. Is a receipt for goods either received (before shipment) or shipped on board; 2. Is good evidence of the existence of a contract between the shipper and carrier. It is not a true contract, since only one party signs it. 3. Is a document of title, signifying that the holder has the legal right to possession of the goods it describes. Right to possession is different from right to ownership, which is determined by the terms of sale contract. 4. May, depending on how it is made out, be negotiable i.e. transferable to a third party so as to effect transfer of title to the goods it describes. Q.2. How will you describe B/L as a receipt for goods? Ans. The B/L’s prime function is as a receipt issued for: 1. Goods received for shipment either by a carrier or a freight forwarder pending shipment on a vessel: or 2. Goods shipped on board the carrying vessel. B/L states the quantity and apparent order and condition of the goods shipped and normally declares “received in good order and condition unless otherwise stated” or “shipped in good order and condition unless otherwise stated”. If there is a shortage or damage to the cargo, appropriate remarks are made on the face of the B/L. If there is no clausing of the B/L showing a defective condition or quantity of the goods on receipt by the carrier, the consignee may reasonably expect to receive the goods in good order and condition. Any loss or damage to the goods will then be presumably due to carrier’s negligence unless it can be proved due to acts of God, inherent vice of the goods etc. When a mate’s receipt is given the description on the B/L of the quantity/ condition of the goods is copied from the mate’s receipt. It is important that the mate’s receipt states the actual quantity and condition of the goods, where there is other remarks than “good order and condition”. Q.3. How will you describe B/L as evidence of contract? Ans. The conditions on which goods are accepted for shipment constitute the terms of the contract of carriage between the shipper and the carrier, except when the shipper is also a charterer; in which case, there could be no charter party, or there is a charter party and the charterer is also the shipper, or there is a charter party but the charterer is not the shipper. Where there is no charter party e.g. where containerized cargo is loaded on a container vessel in the shipowner’s own B/L, the shipowner is the legal carrier and issues its own B/L containing the company’s terms and conditions of carriage. Some liner operators issue a booking note signed by both the parties, which is a contract of carriage.

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INDEX Where the charterer is also the shipper, the charterer is in effect issuing himself a B/L. B/L here serves only as a receipt of goods. B/L is a short form and will contain only relevant clauses such as Clause Paramount, Both-to-Blame etc. However the terms of the B/L must be consistent with the C/P. Where the charterer is not the shipper e.g. a carrier is time-chartering a vessel and operating her in his own liner service, the contract of hire is contained in the time charter party. The contract of hire between the carrier and the shipowner is contained in the time charter party. A B/L issued to the shipper evidences the contract of carriage between the carrier and the shipper. If the B/L contains no reference to the existence of a C/P, the shipper’s contract of carriage will be with the shipowner. But if the B/L contains a reference to a C/P, the shipper’s contract will be with the time charter. Q.4. How will you describe B/L as a document of title? Ans. Title in the context of carriage of goods means the right to possession as against the right to ownership. A document of title is a document, which gives a person (bailee) the authority to hold the cargo and deliver it to any person in exchange of that document. Possession of an original B/L is equivalent to the right to possession of the goods as per the B/L. In other words any holder of the original B/L can obtain delivery of the goods at the discharge port by producing the original B/L. Title of the goods can be transferred after shipment to a third party by negotiation. A B/L made out so as to enable its negotiation is a negotiable document of title and B/L not made out in a way that permits negotiation is termed as “non negotiable” and clearly endorsed to indicate that. A negotiable B/L is made out “to order” in the space allotted for consignee’s name, or “to NILACHAL CONSIGNEE LTD. or his order” in the same space. This will allow the original consignee to transfer title to a third party if required. Transfer of title from the shipper is made under three methods: 1. Blank endorsement, whereby the shipper stamps the back of each original B/L with his company’s stamp and signature without inserting any transferee’s name, before passing the set of B/L to the transferee. A blank endorsed B/L is like a bearer cheque made out to be encashed by any one presenting the same. It is a dangerous document as any one presenting the original B/L can take delivery of the cargo. It is commonly used as required by the bankers of the day. 2. Specific endorsement on the back of the B/L e.g. “deliver to NILACHAL Receivers Ltd.” with the stamp and signature of the shipper. The person to whom the title is transferred may be termed as the “endorsee”. 3. Attaching authorized delivery instructions on the shipper’s stationery e.g. a Delivery Order from the shipper to the consignee. Once the B/L is negotiated the endorsee or transferee become subject to the same liabilities and has the same rights against the carrier as if the contract of carriage had originally been made with the endorsee. This means if freight or demurrage is payable, the endorsee must pay before taking delivery.

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INDEX The reason for having three original B/L is that in case the 1st original is lost or misplaced the consignee can take delivery of the cargo with the 2nd or 3rd original. Nowadays with electronic B/L generation, the need of three original B/Ls is generally not required. Several “non-negotiable” B/Ls are given to the shipper for various purposes including the one marked “Captain’s Copy”. Q.5. Describe different types of B/L. Ans. B/Ls are produced in many styles by shipping companies, shippers, charterers, freight forwarders and organizations like BIMCO. Several types are used for different purposes. 1. “Long-form” B/L has spaces or boxes on its front for typed details and the numerous printed conditions of carriage at the back. Most liner shipping companies have their own long-term B/L. 2. “Short-form” B/L has only a few standard terms printed on it. It usually mentions that the B/L issued is under terms and conditions of a relevant C/P. 3. “Direct” B/L is for carriage of goods from one place to another and does not anticipate any transshipment. It has clauses on the reverse and is used for liner services. 4. “Combined transport” B/L covers carriage of goods from door-to-door by several modes of transport. It is common in liner container trade. 5. “Through” B/L is issued when the carriage will involve both sea and other transport modes, but different carriers will only be held responsible for that stage of transport only, e.g. railway, sea or road. 6. “Received for shipment” B/L is issued when the cargo is received at the freight depot after being cleared through customs and other authorities and ready for shipment on board. When the goods are eventually shipped on board, the above B/L is returned and a fresh on board B/L is issued. 7. “Shipped” B/L is issued when the goods are loaded on to the carrying ship. 8. “Straight” B/L is an American term for no-negotiable B/L. Q.6. Differentiate between a Clean and Dirty B/L. What is a letter of indemnity (LOI) and what precaution must be used before accepting the same? Ans. A clean B/L has no superimposed clauses stating a defective condition or shortage of the goods. It states that the goods are received in apparent good order and condition without any remarks as to their condition. A dirty B/L is also known as a ‘claused’ or ‘foul’ B/L. it is claused with remarks such as ‘torn bags’, ‘rusty drums’ or ‘three more cases in dispute – if found on board will be delivered’ etc. A banker normally demands a full set of clean B/L as per the terms of the Letter of Credit (LoC). Pressure will be exerted on the master to release a clean B/L even when the actual conditions do not justify doing so. Letter of Indemnity (LoI) or a back letter as it is sometimes called is often offered by the shipper promising to indemnify the master or the carrier against any loss or liabilities as a consequence of signing a clean B/L. However acceptance of a LoI for a clean B/L makes

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INDEX the master party to an act of deception or fraud on banks, consignee/buyer, and insurer, since it is an attempt to obtain payment for goods knowing them to be unsound. This type of LoI has no legal standing in the courts of law and cannot be sued on if the shipper goes back on his promise of indemnity. A master must consult his owners and the P & I club if he is in doubt. He must never accept a LoI without the written orders from his owners. Q.7. What is a Mate’s Receipt? Ans. A Mate’s receipt (MR) is a receipt issued and signed by the chief mate of the ship for goods received on board. MR is nowadays replaced by a modern document called the Standard Shipping Note (SSN), but can still be seen in conventional trade like general cargo, dry bulk or tanker. The information in both the MR should be identical to that of the B/L. the MR should be completed from the ship’s tally and show the actual quantity and condition of the cargo as received. When the condition of cargo justifies it, the M/R should be remarked as ‘torn bags’, ‘stained bales’ or ‘rust drums’ etc. Should there be a difference in the tally of the ship and the shipper, MR should reflect the smaller of the two figures with the remark that “X more bales in dispute, if onboard to be delivered”, X being the difference in the tally figures. MR is normally on a shipowner’s format and made in triplicate. The original is given to the shipper, the 2nd given to the agent and the 3rd left in the book of MR to be referred to at the time of issuance of the B/L. M/R is not a document of title. Q.8. What precautions must be taken while signing a B/L? Ans. When a shipmaster has to sign and issue original bills of lading, he must take great care to ensure that all potential contractual pitfalls are covered. He must consult the P & I club and seek their advice before signing and releasing the original B/L. Shipped B/L is signed and given to the shipper through the agent. Freight may be payable before signing the B/L depending on the carrier’s terms. When a MR is issued to the shipper on shipment of cargo, the MR may be required to be surrendered before issuance of the original shipped on board B/L. The master must check the following before issuance of the B/L: 1. that the goods have actually been shipped; 2. that the date of shipment is correct as stated in the MR; 3. that the B/L is not marked freight paid or freight prepaid if not true; 4. that the clausing of the MR is incorporated in the B/L; 5. that the reference is made to the C/P, where on exists; 6. that any C/P terms do not conflict with the B/L terms; and 7. that the number of the original B/L released is stated. Every original B/L must be fully signed by the authorized signatory.

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INDEX Q.9. How does the master give delivery of cargo on presentation of the original B/L? Ans. The master, the carrier and his agent is legally obliged to deliver the goods to the first person presenting the original B/L at the discharge port, together with his identity and proof that freight and any other charges due have been paid. Once the goods are delivered to the receiver, there will be no lien for unpaid freight etc. If the B/L is transferred to another party, the endorsement on the B/L must be checked before delivery. If the B/L presented is in order, the owner’s agent issues a Delivery Order, which must be endorsed by the shipping, agent, customs and port authorities etc. Q.10. What is a seaway bill? Ans. A seaway bill is a receipt for goods shipped on board and: 1. Is a good evidence of existence and terms of a contract between the shipper and the carrier, but not a contract by itself; 2. Identifies the person to whom the delivery of goods is to be made by the carrier in accordance with the contract of carriage. In contrast to a B/L the seaway bill always bears the consignee name and address in an appropriate box. 3. Is non-negotiable and usually (but not always) bear the words “non-negotiable” on their face. The condition of carriage may also bear a statement such as “This Waybill is not a bill of lading and no bill of lading will be issued” or “This Waybill is not a document of title”. 4. Is not a document of title and does not give the right to possession of the goods. 5. May be a receipt for the freight, if endorsed to indicate that freight is paid. 6. May contain conditions of carriage. 7. May be subject to Hague-Visby Rules or Hague Rules. A seaway bill is used when a negotiated document will not be required i.e. when the goods will not be sold or credit will not be raised on the security of the goods from a bank etc. If the shipper and the buyer are well established trading partners, seaway bill is encouraged by BIMCO. The benefits of a seaway bill as against a B/L are that: 1. They can be carried on board the vessel especially on a short sea passage and the cargo along with the document for the cargo come together. 2. They are subject to any documentary formalities other than a reasonable check by the carrier or his agent of the identity of the person claiming delivery of the goods. 3. Since they are not documents of title, they are less likely to be used fraudulently. Money cannot be raised against a seaway bill. Seaway bill uses similar procedure for issuance as B/L. if the seaway bill is not carried on the ship it is sent by the shipper to the consignee, who must produce the same before taking delivery. The carrier or his agent will normally ensure that the delivery is made to the proper party after checking his identity. A substantial proportion of international trade today is done by seaway bill.

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INDEX Q.11. What are the typical problems related to B/L? Ans. The typical B/L related problems are: 1. When damaged or otherwise defective cargo is presented for loading; 2. If master is asked to sign a clean B/L when it is not justified; 3. If shore and loading figures differ; 4. If a charterer’s B/L is used, where the master is required to sign a clean B/L as presented by the charterer; 5. If the number of original B/L in the set as shown in the face of the B/L is not the same as the number of negotiable B/L; 6. If two or more sets of B/L is requested by the shipper; 7. If the B/L presented to the master for signing is written in an incomprehensible language or alphabet; 8. If the master is asked to sign a blank or partially completed B/L; 9. Early departure procedure is used to allow tankers to sail on completion of cargo with out waiting for final cargo figures; 10. If the B/L has to be reissued or amended; 11. If the master is asked to pre-date or post-date a B/L; 12. If delivery of cargo is asked for without the presentation of the original B/L, which may cause misdelivery and serious problems; 13. If cargo delivery is requested against the presentation of a B/L carried on board when the B/L is ‘to order’ and does not specify the name of the consignee or the port of discharge; 14. If two parties present original B/L; and 15. If goods are unclaimed in a discharge port. Q.12. What are the rules governing carrier’s obligations and liability? Ans. A B/L sets out the minimum terms and conditions of carriage, which include a) the carrier’s obligations, b) the carrier’s exceptions from liability, c) the extent of carrier’s liability to the shipper, d) the shipper’s responsibilities and e) the amount recoverable from the carrier in case of loss of goods while in the carrier’s care. Under the carrier’s obligations, the sets of rules followed are a) the Hague Rules, b) the Hague-Visby rules and c) the Hamburg rules, which is not favoured by many shipowners as they less to their advantage. The carriers’ responsibilities under the Hague-Visby rules are a) to ensure seaworthiness of the vessel, b) the care of the cargo and c) to issue a B/L when requested by the shipper. In terms of obligation imposed on the master of the carrying ship, the Hague rules may be considered to be the same as the Hague-Visby rules. Hamburg Rules are called the United Nations Convention on the Carriage of Goods by Sea 1978. The main features of the rule are that the carrier is responsible for the goods from the time it accepts the goods at the port of shipment, unless it is proved that he, his servants or agents took all measures that could be reasonably required to avoid the damages and its consequences. Hamburg Rules does not give the carrier many exceptions from liability as Hague and Hague-Visby Rules. It does not give exoneration from liability arising from negligence in navigation or management of the ship.

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INDEX Under the carrier’s exceptions from liability, we have the carrier’s right to deviate and the rights in respect of dangerous goods. There are 17 exceptions from the liability granted to the carrier: 1. act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or management of the ship; 2. fire, unless caused by neglect or actual privity of the carrier; 3. perils, dangers and accidents of the sea or other navigable waters; 4. act of God; 5. act of war; 6. act of public enemies; 7. arrest or restraint of princes, rulers or people or seizure under legal process; 8. quarantine regulations; 9. acts of omission of the shipper or owner of the goods, his agent or representatives; 10. strikes, lockouts, stoppage or restraint of labour; 11. riots and civil commotions; 12. saving or attempting to save life at sea; 13. wastage in bulk or weight or any other loss or damage from inherent defect, quality or vice of the goods; 14. insufficiency of packing; 15. insufficiency or inadequacy of marks; 16. latent defects not discoverable by due diligence; and 17. any other cause without the actual fault or privity of the carrier, his agent or servants, burden of proof lying with the carrier.

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INDEX CHAPTER 15 CARRIAGE OF GOODS BY SEA ACT Q.1. What are the salient features of the Carriage of Goods by Sea Act 1971 (COGSA 71)? Ans. COGSA 71 is an UK act to make the Hague-Visby Rules apply to the carriage of goods in certain circumstances. It contains 6 sections as follows: 1. Application of Hague Rules as amended; 2. Contracting States; 3. Absolute warranty of seaworthiness not to be implied in contracts to which Rules apply; 4. Application of Act to British possessions; 5. Extension of application of Rules to carriage from ports to British possessions; 6. Supplemental. COGSA 71 is applicable to the documents like B/L if the contract contained in or evidenced by it provides e.g. the Clause Paramount, which will state that Hague-Visby Rule governs the contract. It is a receipt, which is a non-negotiable document. COGSA 71 applies only to seaborne part of the carriage. In case of Multi-Modal or Combined Transport Operation B/L, other modes of transport can be covered by insurance. Q.2. What are the salient features of the Carriage of Goods by Sea Act 1992 (COGSA 92)? Ans. COGSA 92 makes major changes to the law regarding who has the right to sue the carrier and whom the carrier can sue for freight, demurrage etc. It applies to any B/L, seaway bill or ship’s delivery order. COGSA 92 lays down guidelines for transfer of liabilities to the party who takes or demands the delivery of goods and who is not the original party. Once the B/L is transferred the holder becomes liable for payment of freight, port charges and demurrage etc. There are no third party liabilities. If a Letter of Indemnity (LoI) is issued and B/L released against it or cargo delivery is given, this rule will not apply. The main advantages of COGSA 92 are that number of claims in tort has been reduced considerably and the carrier’s right of claim or counter claim against cargo receivers is free from uncertainty. Q.3. What are the provisions for carriage of deck cargo? Ans. As per common law, all cargoes are to be loaded below deck, since deck cargo is exposed to greater risks of cargo damage due water etc. A carrier cannot protect itself or take refuge under the exception of liabilities, if a deck cargo is carried without express agreement of the shipper. Under Hague-Visby Rule the items defined as ‘goods’, exclude “live animals” and will not cover live animals. The shipper must make a special contract with the carrier and the shipping note must state “For Deck Carriage” carried at shipper’s risk. The B/L will be have an endorsement “Stowed on Deck” on the face of it.

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INDEX It becomes a breach of contract for the carrier, if the goods are stowed on deck irrespective of an agreement to carry them below deck. P & I club recommends that on deck cargo must be claused on the B/L mentioning “On Deck”, and the B/L include a clause of disclaiming liabilities for loss or damage howsoever caused. Normally a statement on the face of the B/L “Carried on Deck without Liability to the Carrier” fulfils both the functions. Some goods should never be stowed on deck and the suitability of cargo and the position of stowage should be carefully monitored. Liberty is given to the shipowner to carry the goods on deck at the carrier’s option. In a container ship the goods carried in closed container on deck is regarded as equivalent to under-deck carriage of goods. Goods in container stowed on deck on a non-container vessel are treated as deck cargo and precautions as stated above must be taken in stowage and issuance of B/L. Q.4. How is the rule of General Average (GA) act applicable in case of a deck cargo? Ans. In case of carriage of cargo on deck, the York-Antwerp Rule 1994 provides that “No jettison of deck cargo shall be made good as general average unless such cargo is carried, in accordance with the recognized custom of the trade”. If any cargo is not customarily carried on deck, the owner shall have no claim for GA contribution. A container carried on deck on a purpose built container ship will make a GA contribution, whereas the same container carried on deck on a ship will not contribute for GA, unless the carriage is with the consent of the cargo owner. If the deck cargo is salvaged, the owner of the deck cargo is liable to pay contribution for the GA. Timber cargo carried on deck on a timber carrier will be treated as regular cargo carried as per the trade practice. Q.5. What is IMDG Code? Ans. IMDG Code is International Maritime Dangerous Goods Code. It was adopted by IMO resolution A.716 (17) and published in 1995. It was recommended for adoption under SOLAS regulation VII/1.4 and MARPOL Annex III regulation 1(3). It contains the basic principles, detailed requirements for individual substances, materials and articles; and a number of recommendations for good operational practice including advice on terminology, packing, labelling, stowage, segregation and handling, and emergency response action. It does not contain all details of procedure for packing of dangerous goods or actions to take in the event of an emergency or accident involving personnel who handle goods at sea; these aspects are covered by a supplement published with the IMDG Code. The provisions of the following parts of the 2002 edition remain recommendatory after 1st January 2004, where as the others are mandatory under amendments to SOLAS Chapter VII (Carriage of Dangerous Goods) adopted in May 2002: 1. Chapter 1.3 (Training); 2. Chapter 2.1 (Explosives, Introductory Notes 1 to 4 only); 3. Chapter 2.3, section 2.3.3 (Determination of flashpoint only);

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INDEX 4. Chapter 3.2 (Columns 15 and 17 of the Dangerous Goods List only); 5. Chapter 5.4.5 (Multimodal dangerous goods form) insofar as layout of the form is concerned; 6. Chapter 7.3 (Special requirements in the event of an incident and fire precautions involving dangerous goods only). The two-volume Code is divided into seven parts. Volume 1 contains the following parts: 1. Part 1: General provisions, definitions, training; 2. Part 2: Classification; 3. Part 4: Packing and tank provisions; 4. Part 5: Consignment procedures; 5. Part 6: Construction and testing of packaging , intermediate bulk containers (IBCs), large packaging, portable tanks and road tank vehicles; and 6. Part 7:provision concerning transport operations. Volume 2 contains: 1. Part 3: Dangerous Goods List and limited quantities exceptions; 2. Appendix A: List of generic and N.O.S. (not otherwise specified) proper shipping names; 3. Appendix B: Glossary of terms: and 4. Index. The supplement is published separately by IMO and contains following texts related to the IMDG Code: 1. Emergency Response Procedures for Ships Carrying Dangerous Goods ( The EmS Guide); 2. Medical First Aid Guide for use in Accidents Involving Dangerous Goods; 3. Reporting Procedures; 4. IMO/ILO/UN ECE Guidelines for Packing Cargo Transport Units; 5. International Code for the Safe Carriage of Packaged Irradiated Nuclear Fuel, Plutonium and High-Level Radioactive Wastes on board Ships (INF Code); 6. Recommendations on the safe use of Pesticide; 7. Appendix: Resolutions and Circulars referred to in the IMDG Code and Supplement. The BC Code, included in the supplement to the pre-2000 edition of the Code is now published separately. Q.6. What are the classes of Dangerous Goods? Ans. The following classes and divisions are listed in the IMDG Code 2002 edition: Class 1: Explosives. 1. Division 1.1: substances and articles, which have a mass explosion hazard. 2. Division 1.2: substances and articles, which have a projection hazard but not a mass explosion hazard. 3. Division 1.3: substances and articles, which have a fire hazard and either a minor blast hazard or a minor projection hazard or both, but not a mass explosion hazard. 4. Division 1.4: substances and articles, which present no significant hazard. 5. Division 1.5: very insensitive substances, which have a mass explosion hazard.

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INDEX 6. Division 1.6 extremely insensitive articles, which do not have a mass explosion hazard. Class 2: Gases. 1. Class 2.1: flammable gases. 2. Class 2.2: non-flammable, non-toxic gases. 3. Class 2.3: toxic gases. Class 3: Flammable Liquids. Class 4: Flammable solids: substances liable to spontaneous combustion; substances which, in contact with water, emit flammable gases. 1. Class 4.1: flammable solids, self-reactive substances and desensitized explosives. 2. Class 4.2: substances liable to spontaneous combustion. 3. Class 4.3: substances which, in contact with water, emit flammable gases. Class 5: Oxidising substances and organic peroxides. 1. Class 5.1: oxidising substances. 2. Class 5.2: organic peroxides. Class 6: Toxic and infectious substances. 1. Class 6.1: toxic substances. 2. Class 6.2: infectious substances. Class 7: Radioactive material. Class 8: Corrosive substances. Class 9: Miscellaneous dangerous substances and articles. It must be noted that the numerical order of the classes and divisions is not the measure for the degree of danger. Q.7. How will you accept any bulk cargo other than grain for loading on board? Ans. Prior to loading of any bulk cargo other than grain, the master must be in possession of stability information, containing comprehensive information on the ship’s stability and on the distribution of the cargo and ballast for the standard loading conditions. The master must have all informations on load per unit area of the tank top plating, maximum allowable load in a hold and full instructions for load/ discharge operations in port of loading and discharge. The owner must ensure that the master is provided with these informations. Bulk cargoes must be stowed and trimmed in a best possible way to ensure adequate stability of the ship in all conditions of sea passage. The master and the terminal authorities must duly approve the loading plan. The plan is lodged with the appropriate authority of the Port State. The master has the right to suspend the cargo operation if, in his opinion the vessel exceeds the allowable load limit or the shearing forces and bending moments at any time. The master must ensure that the loading and unloading methods do not damage the ship. Draft of the ship must be monitored regularly and loading and discharging adjusted accordingly. The master must not accept any concentrate or other cargoes, which may liquefy unless the moisture content of the cargo as indicated in the Moisture Content Certificate or Shipper’s Declaration is less than the Transportable Moisture Limit (TML). If the moisture content is above that limit, appropriate safety arrangements must be made to the

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INDEX satisfaction of the Certifying Authority to ensure adequate stability in case of cargo shifting and the ship has adequate structural integrity. If a bulk cargo is not classified under the SOLAS Convention, but has chemical properties that may create a potential hazard, special precautions must be taken for the safe carriage of the cargo. The master must not accept any bulk cargo for loading unless he has all informations as stated above are with him. He must calculate his stability parameters after taking into consideration the proposed loading arrangements. He must take all special precautions as required by the regulations, failing which he will be guilty of an offence. Q.8. What are the International Grain Code requirements? Ans. Under SOLAS regulation VI/9.1 (Requirements for cargo ships carrying grain), every ship carrying grain must have a Document of Authorization (DoA) as required by the International Grain Code (IGC) and issued by the FSA. IGC defines grain as including wheat, maize (corn), oats, rye, barley, rice, pulses, seeds and processed forms thereof, whose behaviour is similar to that of grain in its natural state. The DoA is issued to every ship loading grain by the FSA as evidence that the ship is capable of complying with IGC. DoA is accompanied and incorporated into the Grain Loading Manual provided to the master of the vessel. Copies of the DoA, Grain Loading Plan and the stability data of the ship must be available for inspection at all times in load or discharge ports. A ship not having on board a DoA may be permitted to load bulk grain cargo subject to certain conditions, one of which is that the total weight of the bulk grain does not exceed one third of the ship’s deadweight. The ship must comply with the minimum stability criteria for the voyage. In addition the ship carrying grain must carry the following documents: 1. Ship Inspection Report and Treatment Order to certify the holds are clean, insect free and capable of loading grain. Most grain loading countries have stringent rules for inspection of grain loading holds; 2. Paint Compliance Certificate to certify that the paints used in the holds are not in contravention to the Port State’s rules on carriage of food stuff; 3. Fumigation Certificate, when holds are required to be fumigated after inspection; 4. Certificate of Loading (Bulk Grain) as issued by the US port National Cargo Bureau certifying that bulk grain cargo has been loaded in accordance with US Coast Guard Regulations. Great care must be taken for loading grain in bulk. Besides claim, the fear of detention or arrest of the ship is real since the cargo is meant for human consumption.

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INDEX Q.9. What are the hazardous bulk cargo documents needed? Ans. Following hazardous bulk cargo documents are required: 1. Shipper’s declaration under the IMO Code of Safe Practice for Solid Bulk Cargo (BC Code). It outlines for the master e.g. coal; the transportable moisture limit (TML), estimated stowage factor (SF), angle of repose, contractual sizing of the shipment, contractual sulphur content and IMO category for ocean transportation purposes. It also gives relevant BC Code for the cargo and the emergency procedures and special precautions required for the carriage of the goods. Shipper may issue a master’s response sheet to the master to log down the actual behaviour of the cargo in the voyage corresponding to that stated on the shipper’s declaration; 2. An export permit may be required by the carrier from the shipper before loading certain cargoes e.g. arms or works of art etc. as there could be a legal embargo from the UN; 3. Certificate of Origin, a Certificate of quality and a Certificate of readiness to load; 4. Cargo stowage plan after loading and prior to discharge to enable stevedores to plan the discharge; 5. Hatch sealing certificate may be issued after loading to prevent unauthorised entry; 6. Certificate of fitness to proceed to sea, which may be required to obtain outward clearance from the custom office; 7. Post delivery an empty hold certificate may be issued to the master to confirm that the cargoes are completely discharged. It will be useful to counter any claim of short landing; 8. Ship’s delivery order as issued to different cargo receivers.

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INDEX CHAPTER 16 INTERNATIONAL MARITIME LAW Q.1. What are International law, Customary law and Treaties? Ans. International law is a system of law regulating the relations between sovereign States and their rights and duties with respect to each other. It derives mainly from the customary law and treaties. Customary law derives from practice followed continuously in a particular location or by particular States, such that the practice becomes accepted as part of law in that location or State. Customary law is sometimes regarded as the foundation stone of International law. Treaties are written international agreement between two states like a bilateral treaty between two States or a multilateral treaty between a number of states, which is binding in international law. Treaties are normally made under auspices of an internationally accepted organisation like the UN or one of its agencies such as IMO or ILO. Treaties are binding only to those States, which are parties to the treaty but may be binding even on non-party States if those provisions are also a part of customary law. Treaties are normally drafted, considered for adoption, formally adopted and then opened for signature by the States. It may take several years before a treaty is adopted and has legal status only after the statute of the State accepts the same. The law of the sea has been made at various UN Conferences on the Law of the Sea (UNCLOS). The following treaty-making bodies formulate the merchant shipping rules: 1. The International Maritime Organization (IMO), 2. The International Labour Organization (ILO), 3. The World Health Organization (WHO), 4. The International Telecommunication Union (ITU). Q.2. What is UNCLOS and what are the provisions incorporated in it? Ans. UNCLOS is United Nation Conference on the Law Of the Sea. Three UNCLOS conferences were convened at Geneva; UNCLOS I in 1958, UNCLOS II in 1960 and UNCLOS III in 1974. UNCLOS III is commonly known as “UNCLOS”. UNCLOS attempts to codify the international law of the sea. It is a treaty document of 320 articles and 9 annexes, governing all aspects of ocean space, such as delimitation, environment control, marine scientific research, economic and commercial activities, transfer of technology and settlement of disputes relating to ocean matters. It came into force internationally on 16th November 1994. UNCLOS sets limits of the territorial sea at 12 nautical miles, with a contiguous zone at 24 nautical miles from the base line. It defines innocent passage through the territorial sea and defines transit passage through international straits. It defines archipelagic States and allows for passage through archipelagic waters. UNCLOS establishes exclusive economic zones (EEZs) extending to 200 nautical miles where appropriate. UNCLOS also defines the legal status of the high seas and the regulations for the control of marine pollution. States in dispute about their interpretation of the UNCLOS may submit their

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INDEX disagreement to the International Court of Justice (in The Hague), or the Law of the Sea Tribunal (in Hamburg). The responsibility of enforcing the regulations as per UNCLOS lies with State in the coastal region and the Port State in the port. UNCLOS has stringent international rules to prevent pollution from the vessel incorporated in the MARPOL 73/78. Coastal States may make entry to internal waters and harbours conditional on meeting additional pollution regulations. The Merchant Shipping Act incorporates regulations pertaining to prevention of pollution. Q.3. What is the nature and purpose of IMO? Ans. IMO is a specialised agency of the UN dealing with maritime affairs. Its membership consists of 162 signatory States including India and every other maritime nation of the world. IMO member states constitute more than 96% of the merchant tonnage. Article 1 of the Convention on the IMO summarises the purposes. It is to facilitate intergovernmental co-operation on State regulation and practices relating to maritime technical matters; and to encourage and facilitate the adoption of the highest practicable standards of maritime safety, efficiency of navigation and prevention and control of marine pollution from ships. The address of IMO is 4 Albert Embankment, London SE1 7SR, England. Q.4. What are the main organs of the IMO? Ans. The main organs of the IMO are its Assembly, Council, Maritime Safety Committee (MSC), Marine Environment Protection Committee and a number of sub-committees of the main technical committees. Assembly is the highest governing body of IMO. It consists of all member states and meets once every 2 years in regular sessions and in extraordinary sessions if necessary. The Assembly is responsible for approving IMO’s work programme, for voting IMO’s budget and for determining IMO’s financial arrangements. It elects IMO’s Council. Plenary sessions of the Assembly are open to the press and public, but the majority of its work is done in Committee. The Council is composed of 40 Member States elected by the Assembly for 2-year terms beginning after each regular session. 10 Council members are Member States with the largest interest in providing international shipping services e.g. Greece and Norway. 10 are other States with the largest interest in providing international seaborne trade. 20 are other States with special interest in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographical areas of the world. Council is the executive organ of the IMO, responsible under the Assembly for supervising IMO’s work. It performs the functions of Assembly between sessions, except for making recommendations to Governments on maritime safety and pollution. Main Committees include the Maritime Safety Committee (MSC), the Marine Environment Protection Committee (MEPC) and the Legal Committee. Each has subcommittees, which deal with technical matters. The committees may produce resolutions.

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INDEX The secretariat consists of the Secretary-General and nearly 300 personnel, based at London. Q.5. Describe the IMO instruments e.g. Conventions, Protocols, Amendments, Recommendations, Codes and Guidelines and Resolutions. Ans. Conventions are multilateral treaty documents. They are chief instruments of the IMO, which are legally binding. They regulate some aspects of maritime affairs of major concern to IMO e.g. Safety of Life at Sea or Marine Pollution. These are identified by the name and the year of adoption by the Assembly e.g. the “International Convention on the Safety of Life at Sea 1974 (SOLAS 1974)”. It can have detailed technical provisions attached in annexes e.g. the six annexes to the MARPOL Convention, each dealing with a different aspect of marine pollution. Technical provisions in detail can be placed in an associated code e.g. the LSA Code giving technical details of equipment required. Codenames are given e.g. COLREG more correctly called “COLREG 1972”. Member State, which ratifies to an IMO convention, must give effect to it by making its requirements part of its national law. Ratification means the acceptance of dual obligation for the Member State to commit to the provision of the convention and willingness to accept international supervision. Protocols are important treaty instruments made when major amendments are required to conventions already adopted but not yet entered into force. SOLAS Convention 1974 has been amended twice by means of protocols; by the 1978 SOLAS Protocol, which entered into force on 1st May 1981 and by the 1988 SOLAS Protocol, entered into force on 3rd February 2000 and replaced and abrogated the 1978 protocol. The combined instrument was known as SOLAS 74/78 and now known as SOLAS 74/88. The MARPOL Convention 1973 has also been amended by protocols. The 1973 MARPOL protocol made major changes to MARPOL, in the wake of several large-scale pollution incidents in the 1970s. The combined convention-protocol instrument called MARPOL 73/78 came into force on 2nd October 1983. The 1997 MARPOL protocol contains annex VI for Regulation for the Prevention of Air Pollution from Ships and was adopted on 26th September 1997. It will enter into force after being accepted by at least 15 States with not less than 50% of the World Merchant Tonnage. After that date MARPOL 73/78 may be referred to as MARPOL73/78/97. Similarly International Convention on Load Lines 1966 has been amended by a 1988 Protocol, which entered into force on 3rd February 2000. It may be referred to as LL66/88. Recommendations are hundreds in number and deals with wide ranging subjects, most of them technical in nature. They are not formal treaty documents like Conventions or Protocols and are not subject to ratification. They provide more specific guidelines than the treaty documents. Though they are not legally binding some Governments apply the provisions in whole or in part. Many recommendations are closely linked to conventions. Some recommendations constitute Codes, Guidelines or Recommended practices on important matters not considered suitable for regulation by formal treaty instruments such as Conventions or Protocols. Many codes are non-mandatory e.g. Timber Deck Cargoes Code etc. and many are mandatory e.g. ISM Code, IBC Code etc. under a regulation of a “parent” Convention.

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INDEX Resolutions are the final documents resulting from the agreement by the IMO Assembly or a main committee (e.g. MSC) of some matter such as an Amendment or Recommendation. Resolution of the Assembly e.g. Resolution A.586 (XIV); ‘A’ refers to the Assembly, ‘586’ is the serial number of the resolution, and ‘XIV’ indicates that it was made by the 14th Session of the Assembly. Resolution of a main IMO committee e.g. MEPC.54 (32) means Marine Environment Protection Committee (MEPC), ‘54’ is the serial number of the resolution, and ‘32’ indicates the 32nd session of the Committee. Q.6. How is a Convention developed, entered into force and amended in the IMO? Ans. The need for a new convention arises from shipping and related industries. It is discussed by member states in the main IMO organs like the Assembly, Council and four main committees. It is usually raised in one of the committees. The proposal goes to the Council and, as necessary to the Assembly. With the authorisation of the Council or Assembly, the committee concerned considers the matter in great detail and draws up a draft Convention. The committee takes views and advice from other Governmental or Non-Governmental organisations to formulate the final draft before submission to the Council and Assembly with a recommendation that a conference be convened to consider the draft for formal adoption. The draft Convention is sent to all member states for their comments with invitations to attend the conference. The draft convention is changed if necessary incorporating the comments acceptable to all member states. The Convention is then adopted and deposited with the Secretary-General, who sends copies to all Governments of member states. The Convention is opened for signature by states, usually for 12 months. Signatories may ratify or accept the Convention. Non-signatories may accede to the convention. The Convention is not binding on any ratifying state until formally accepted by that state. Each Convention stipulates conditions to be met before it enters into force. The more important and complex the document, the more stringent are the conditions for entry into force. TONNAGE 1969 required acceptance by 25 states with combined tonnage of at least 65% of world gross tonnage, whereas the International Convention for Safe Containers (CSC) needed only acceptance by 10 states. Governments make the necessary changes in the national legislation to enforce provisions of the convention. Governments deposit a formal instrument of acceptance with the IMO and become a Contracting State. When the stipulated entry conditions are met, the Convention enters into force for all the states, which have accepted it, generally after a period of grace to enable states to take measures for implementation. The IMO Assembly may make amendments to conventions, protocols or their annexes after discussion, agreement and adoption. Amendments are made by a resolution such as MEPC.51 (32) – Amendments to the Annex of the Protocol of 1978 relating to the International Convention for the Prevention of Pollution by Ships, 1973 (Discharge criteria of Annex I of MARPOL 73/78). Major IMO conventions such as SOLAS and MARPOL have been amended many times. Earlier conventions needed a certain percentage of Contracting States, usually two thirds for an acceptance of an amendment. This delayed the process of acceptance. Nowadays by the method of tacit acceptance of amendments by states, if there are no objections to the amendment by a specified date by a specified number of states, it automatically enters into force.

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INDEX Q.7. Give brief descriptions of various chapters of SOLAS 1974. Ans. Chapter Title Related IMO Codes I. General provisions II-1. Construction- structure, subdivision and stability, machinery and electrical installations. II-2. Construction- fire protection, fire detection and fire extinction – FSS Code and FTP Code; revised chapters in force from 1st July 2002. Technical requirements contained in the associated codes. III. Life-saving appliances and arrangements – LSA Code. IV. Radiocommunication. V. Safety of Navigation – International Code of Signals- Revised chapter in st force from 1 July 2002. VI. Carriage of cargoes – BC Code, CSS Code, International Grain Code, Timber Deck Cargoes Code. VII. Carriage of dangerous goods- IMDG Code, IBC Code, IGC Code, INF Code. VIII. Nuclear ships- Code of Safety for Nuclear Ships- applies to all nuclear ships except warships. IX. Management for the safe operation of ships- ISM Code. X. Safety measures for high-speed craft- HSC Code- applies to high-speed craft built on/after 1st January 1996. XI1. Special measures to enhance maritime safety- contains regulations on (1) Authorisation of recognised organisations: (2) Enhanced surveys, (3) Ship identification number, (4) Port State Control on operational requirements. XI2. Special measures to enhance maritime security- ISPS Code- Regulation 2/3 enshrine new ISPS Code. Regulation 2/5 requires all ships to be provided with a ship security alert system. XIIAdditional safety measures for bulk carriers- BLU Code- applies to bulk carriers as defined in regulation IX/1.6.

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INDEX CHAPTER 17 SHIP REGISTRATION Q.1. What are the provisions for ship registration? Ans. UNCLOS Article 91 describes Nationality of Ships and states that every state must fix the conditions for the grant of its nationality to ships, registration of ships in its territory and the right to fly its flag. Ships have the nationality of the State whose flag they are entitled to fly. The State must keep a record of the ships flying its flag. UNCLOS Article 92 describes Status of Ships and provides that the ship must sail on one flag only and cannot change the flag unless on real transfer of ownership or change of registry. UNCLOS Article 94 describes the duties of the Flag State and states that every state must effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag. Every State must maintain a register of ships containing the names and particulars of ships flying its flag. The State must also assume jurisdiction under its internal law and ensure safety of ships at sea by their construction, equipment, seaworthiness, manning, and training of crew, maintenance of communication and prevention of collision. The States must ensure the every ship is duly surveyed by qualified surveyors periodically and has on board charts, publications and navigational equipment appropriate for the safe navigation of the ship. Q.2. What are the purposes and benefits of ship registration? Ans. Registration of a ship establishes the ship’s nationality, measurement and tonnage for identification purposes. It provides documentary evidence of ownership in the register (not in the Certificate of Registry). It allows the ship to operate commercially and grants recognition as a vessel of the flag state and enjoyment of the normal privileges. Flying a flag of a country normally means the ship is a territory of that country and needs protection especially under the ISPS Code. But flags of convenience (FOC) may change this definition. Financial institutions lending money to a shipowner register their maritime mortgage with the registrar, as their claim against the ship is clear and protected. For the Flag State the registration of a ship restricts and controls ownership of vessel under a flag. It facilitates ship purchase and sale and mortgage where proof of title will be required as a prerequisite item. It brings free income to FOC countries for registering and may have some prestige and strategic importance. FOC register may offer many benefits: - freedom to employ foreign nationals as master, officers and/ or crew; - low taxes on company earnings; - low registry fees; - low statutory survey fees; - limitation of owner’s liabilities;

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relaxed or non-existence foreign exchange regulations on owners earnings; allowing foreign company or foreign national to register; freedom to raise a loan by mortgaging the ship; and benefits from bilateral or multilateral agreements on trade, cargo sharing, port entry or taxation.

WRITE ON INDIAN MERCHANT SHIPPING ACT. Q.3.What is the IMO identification number? Ans. The IMO identification number is an unique number given to a passenger ship of 100grt and upwards and all cargo ships of 300grt and upwards. SOLAS 1974 chapter XI1/3 was modified in December 2002 and requires all ships to have permanent markings of the IMO number in a visible place. Cargo ships to have them marked on the port and starboard side or at the stern and a passenger ship marked horizontally on deck. In addition the number should marked on the main beam of the ship. IMO number is a 7digit number written e.g. IMO 8765432. It is a permanent identification number, which shall remain unchanged for the life of the ship. The official number of the ship will however change on change of flag. The IMO number must be inserted on the Certificate of Registry and all other certificates issued under the IMO Convention. Q.4.What is a classification society? Is it mandatory? What are the advantages of having a ship under class? Ans. Every vessel must be constructed as per standards laid down in SOLAS 1974, Chapter II-1 and Chapter II-2. Employment of classification societies (CS) is not mandatory. The FSA gives the authority to the CS to conduct certain surveys e.g. Load Line etc. and issue relevant certificates. A newly built ship need not have a CS to oversee the construction, but for the fact that the owners and/or the FSA are not professionally trained to follow the SOLAS convention on construction of ship like the CS. The CS also has its own rules and regulations based on years of experience in construction and inspection of ships at various stages. Classification is a contractual requirement of hull and machinery underwriters, cargo underwriters and P&I Club. Statutory safety certification is given only when a ship’s hull structure and ship board engineering systems are satisfactorily working and constructed under the supervision of a CS. Basis above, a ship with class will be able to insure her and can get commercial benefits e.g. better cargo and freight etc. especially in a highly competitive market.

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