TANKER

MATTERS
PREVENTION
POINTS

Preventing
Shortage
Claims

Recognising the causes

of shortage claims

Planning ahead

Shipboard losses
evaporation via venting systems
leakage to non-cargo spaces
leakage to sea
deliberate retention for illicit purposes
excessive cargo remaining on board (ROB)
resulting from:
high pour-point cargo
pumping deficiencies
crude oil washing (COW) deficiencies

Paper losses
In many shortage claims no actual loss has
taken place but the amount of cargo has
been overstated when loading and/or
understated when discharging.
Ships personnel could stop these paper
losses, which cost their owners millions of
dollars a year, by insisting that cargo is
accurately measured and ensuring that it is
handled and carried with care.

Everyone can help stop losses.

Owners can ensure that ships
are suitable for their cargoes.
Charterers can make cargo
orders clear, concise and
complete.
Officers can make sure that
they and the crew are as well
prepared as the ship itself.

Ensuring the ship is suitable

for the cargo
To ensure the ship can and does meet the
charter partys conditions regarding cargo
quantity, consider:

to avoid large vapour losses, is the Reid

vapour pressure (RVP) of the cargo
within the ships capacity?

if crude oil washing (COW) is required,

can the ship carry it out effectively in the
time specified, with the type of crude oil
to be carried?

if the specific gravity of the cargo is high,

what ullages will be required to avoid
exceeding the maximum weight for which
the ships tanks were designed?

will those ullages conflict - at any point in

the voyage - with restrictions imposed by
class?

Preparing the cargo plan

When loading the maximum permitted by

the charter party, allow for expansion.

Company policy often dictates the filling

limit. 98% of a tanks capacity generally
allows for cargo temperature to increase
by 20C - but the difference in
temperature between northern Europe
and the tropics often exceeds this figure.

Ullages exceeding limits set out in the

ships stability book can lead to excessive
free surface. This can cause sloshing,
making pressure/vacuum valves breathe
and resulting in vapour losses or boil off
of the lighter fractions of the cargo. It can
also lead to structural failure and
endanger the ship.

Stowing volatile cargo next to heated

cargo or bunker tanks promotes
evaporative losses. Charterers should
specify maximum adjacent temperatures.

Working as a team

Working with
terminal representatives
The key meeting should not be limited to filling
out cargo and safety checklists - it is in the
ships interest for the Chief Officer to take this
opportunity to build ship and shore staff into a
team.
The Chief Officer must ascertain the following
from the terminal representatives to monitor
the quantity of cargo transferred to the ships
care:

how ship and shore will communicate

grade(s) and quantity(ies) of cargo(es) to

be loaded

The smaller crews become,

the more each man must do.

Working as a team reduces

stress and the risk of errors
which lead to claims.

number of shore tanks to be loaded from,

and the quantity, temperature and
density of cargo in each

whether density is being expressed in

air or in vacuum (see p 18)

whether shore pipelines are full or

empty, and details of any pipeline
displacements planned

proposed loading rate(s)

whether any loading stops are planned

for shore tank changes, whether ship or
shore is responsible - and how to stop in
an emergency

whether loading by gravity or shore

pumps

whether pumps are displacement or nondisplacement (only a non-displacement

pump can tolerate the ship shutting
valves while it is pumping)

Working with the cargo inspector:

On Board Quantity (OBQ) surveys

If any cargo tanks are not dry, the

inspector must determine the on board
quantity (OBQ) of previous cargo.

Working with the cargo inspector:

Establishing the amount of
cargo loaded

While in some trades the discharge ports

outturn figures alone determine the
amount of cargo delivered, in others they
are still compared to the bill of lading
figures provided by the loadport.

Even if both terminals carry out their

measurements diligently, each will (quite
legally) round off temperature and ullage
readings in its favour, so differences are
only to be expected.

In the absence of a like-for-like

comparison, the ship is the only common
factor - and therefore the measurements
taken on board are critical.

It is vital to the ships interests to ensure

that all cargo inspections are carried out
carefully and comprehensively.

The inspector must be accompanied at

all times and his ullage measurements
actively verified.

To do this accurately, the inspector must

establish:

the amount of any sediment

and free water present in each
cargo tank

the temperature of the cargo in

each tank

the ships trim and list

If material remains in the ships

pipelines, tell the inspector how much.
He is unlikely to certify these figures but
should include them in his report,
prefaced said to contain.

It is never in the ships interest for the

OBQ to be underestimated. This will
result in an overstatement of the
loaded figure, exposing the ship to an
unwarranted short delivery claim.

Remember, an inspector is as prone to

error as the next person.

Measurement errors

Ullaging

Measurement errors often result from:

commercial pressures

use of defective equipment

improper measurement technique

Never permit the use of the terminals

measuring equipment on board.

If measurements taken with the

inspectors equipment differ from those
taken with the ships, propose that all
measurements be taken with each, and
both be sent for verification ashore
afterwards.

If the retro-fitted vapour lock valves

required by electronic gauging
equipment have changed the height
and/or position of the ullage point,
measurements taken through such valves
must be corrected before use.

If the ship is pitching or rolling, five

measurements should be taken,
withdrawing the tape as soon as it
penetrates the surface of the cargo. The
highest and lowest should be ignored
and the middle three averaged. Weather
and sea conditions should be logged.

In the same conditions on inerted ships,

or where electronic, closed gauging
equipment is used, the probe should be
withdrawn and lowered until three
readings differ by no more than 5mm.

Risks can be reduced by:

remembering that, long after the

immediate pressure has been forgotten,
the ship will remain responsible for
having ensured that the measurements
were carried out correctly. Some owners
employ cargo superintendents to relieve
the pressure. If, in spite of all measures
taken, an early departure procedure, for
example, exposes the ship to any
unwarranted liability, it must protest

frequently maintaining and checking

ships equipment - and arranging for
regular calibration of electronic
measuring devices by an agent
approved by the manufacturer

doing homework, sharing experience

around and encouraging everyone to
talk about their mistakes, so all can learn
from them

Some common mistakes are considered next...

Taking cargo temperature

The temperature of every cargo tank

should be recorded separately.

Cargo temperature may vary by 5 C at

different levels in the tank, so must be
averaged from at least three readings top, middle and bottom. Some digital
probes can measure at more frequent
intervals.

Allowing for trim and list

A list correction error of 1 could

lead to overstating a VLCCs cargo
by 10,000 barrels
(approx. US$ 200,000 in November 97).

A measurement error of 1C can distort

the volume calculation by +/-0.1%,
depending on cargo density
on a VLCC typically 1,500 barrels
(approx. US$ 30,000 in November 97).

Sediment and water

Checking cargo density

Despite practical difficulties, it is best

practice to make sure the density of the
cargo is measured and compared with
the figures supplied by the terminal.

If the loading terminal measures

densities in vacuum and the discharge
port in air, the figures must be corrected
to avoid an apparent loss.

A difference of 0.0100 Kg/litre in cargo

density can alter a VLCCs tonnage
calculation by some 3,000 metric tonnes
(approx. US$ 420,000 in November 97).

Many loadport cargo measurement

errors are caused by failing to make due
allowance for trim and list. These should
be based on draft readings whenever
possible.

The quantity of any free water detected

must also be corrected for trim and list.
Protest even small amounts, as there is
likely to be more in suspension.

Calculating cargo quantity

Make sure all parties are using the same

edition of the ASTM Petroleum
Measurement tables.
The pre-1980 table 6, still used instead of
table 6A or 6B by some terminals particularly in the Middle East and Asia will overstate the quantity of cargo
loaded if the temperature exceeds 60F
(approx. 15C).

Working with the cargo inspector:

Monitoring the discharge of cargo

Accompany the inspector at all times,

ensuring that he measures temperatures,
ullages, densities, list and trim
accurately.

Before discharging cargo, ask the

inspector to witness that the overboard
valves are sealed and record the seal
numbers in the log.

Make sure the contents of the ships

pipelines are included in the calculations.

Make sure pumproom valves are

properly set and bypass valves closed.

Sign the inspectors quantity report for

ullages and temperatures only.

Apply the vessel experience factor (VEF).

Immediately cargo starts to be

discharged, check over the side for
leakage.

If the ships figures differ from the

shores, review the calculations.

Verifying that ullages are constant in idle

tanks confirms that cargo is not being
misrouted or leaking within the ship.

If the difference is confirmed, initiate the

owners standard procedure.

Ullaging active tanks regularly and

comparing results with hourly shore
discharge rates helps ensure that cargo
is not being misdirected in the receiving
terminal.

Monitoring air and sea temperature and

sea state can provide valuable evidence
in case of a subsequent dispute about
the pumpability of the cargo.

Maximising outturn:
Crude oil washing (COW)

A well thought out, carefully executed

COW plan is central to maximising the
outturn of a crude oil cargo.

Clingage can account for as much cargo

as remains on tank bottoms if a ship is
not able or permitted to COW.

To avoid delaying the discharge

operation, any officer involved in crude
oil washing must hold the appropriate
certificate of competence and be familiar
with the vessels COW systems.

In case the ship is called upon to prove

COW was performed efficiently, log,
every hour:

which pump is being used

start and stop times for each tank

number of cycles

status of each tank

(e.g. top wash, bottom wash)

type of machine

pressure in the wash line at the

pump, the aft end of the line and at
a forward point

Ask the cargo inspector to witness that

COW is being carried out efficiently.

If either the terminal or the charterer will

not permit COW, ask for written
confirmation and consider a protest to
protect against a subsequent shortage
claim.

Maximising outturn:
Stripping

The best way to avoid losses resulting

from charter party freight retention
clauses is to make sure the ship can
demonstrate it did everything possible to
discharge all the cargo.

The more officers and crew learn about

their ship and its cargoes, the better the
outturn will be and the less the time
spent at the berth.

The discharge plan must take account of

the locations of the tank stripping
suctions and give directions for
achieving the desired trims and lists.

Provided it is within the ships stress

limits, the greater the trim aft, the better
the drainage.

When stripping high pour-point cargo:

maintain cargo at the recommended

discharge temperature until the
heating coils are about to be exposed

start stripping as soon as cargo

pumping stops

protest any request from the shore

to stop

if the stop is essential, continue

stripping to an accumulation tank
and resume cargo heating as soon
as possible

When stripping high vapour pressure

cargoes:

avoid operating pumps at excessive

speed which increases vaporisation,
causes cavitation and reduces
suction

Working with the cargo inspector:

Remaining on board (ROB) surveys

increasing the pressure of inert gas

in the cargo tank or increasing the
back pressure on the pump can
improve pumping performance

Re-inspect empty tanks before declaring

a grade finished or discharging the last
cargo (or slops) capable of driving
eductors. Additional cargo may have
accumulated due to:

changes in list and trim

bulkhead, pipeline or valve leaks

Determining ROB is difficult due to:

difficulty of calibrating bottom

levels of tanks

blocked limber holes

unmeasurable tank side clingage

uncertainty about the liquidity of

bottom residues

It is always important to observe and

log precisely how the inspector
measures ROB.

Ensure he surveys all the cargo tanks.

Make sure he takes great care reading

sounding rods or bobs, to avoid the
common mistake of overstating the liquid
element of bottom residues because it
has run down over the sediment as the
rod is raised.

Ask him to take samples of the bottom

residue, from more than one point in
each tank if possible.

If you suspect that the samples may be

unrepresentative because of the
tendency of less viscous material to flow
more easily into the sampling device, ask
the inspector to sample the more viscous
material found in the pump mud box or
the manifold when it is disconnected.

Urge that the wedge formula be applied

only to the liquid element of the ROB,
since it can be argued that there must be
as much sediment under the liquid as
there is in the dry parts of the tank.

Invite the inspector to sight every ballast

tank and void space to confirm that no
cargo has leaked or been misrouted.

If the ships cargo lines have been

drained, demonstrate this to him and
ensure it appears on the inspection
certificate.

Calculate the ROB independently,

compare results with the inspectors
and log any differences.

Do not allow the shore hoses to be

disconnected until the inspector has
signed a dry tank certificate, or a
statement of ROB, that you agree with.

If you dispute the inspectors figures,

initiate the owners standard procedure.

Preventing
Contamination
Claims

Recognising the causes

of contamination

Planning ahead

Shoreside

residues of previous contents of storage

tanks, lines and hoses
tank and line cleaning media, including
water
other products, because of valve leakage or
mis-operation or poor in-line blending
fresh water or impurities carried over from
the manufacturing process
fresh water from leaking heating coils or
tank roofs
salt water from leaking sub-sea pipelines

Shipboard

residues of previous contents of ships

tanks, lines, pumps and hoses
dirty sounding and ullaging equipment
tank coating deficiencies
tank and line cleaning media, including
water
other part cargoes, because of valve
leakage, valve mis-operation or tank
structural deficiency (e.g. bulkhead cracks)
other part cargoes vapour via common
inert gas systems
salt water from leaking tank hatches,
sounding pipes and accesses
fresh water from leaking heating coils
copper leaching from alloys used to
manufacture heating coils (e.g. alloy brass
contamination of jet fuel)

In the contest against claims,

as in todays competitive
market place, only the best
informed will win.

Ensuring the ship is suitable

for the cargo

Preparing the cargo plan

The cargo plan should minimise stress

on the ship and eliminate the risk of
cross-contamination of different grades
of cargo.

For multi-grade loadings, plan the use of

pumps and pipelines to avoid or
minimise commingling or downgrading.

Ensure line displacements are calculated

such as to avoid cross-contamination.

If ullages are insufficient, cargo from one

tank can slosh through a common vent
line to contaminate non-compatible cargo
in an adjacent tank, if the ship rolls.

The vapours of one grade can put

another grade out of specification, e.g.
gasoline and kerosene or diesel, if kept
on a common venting line. If there is only
one venting line, isolate one of the
grades from the system.

Remember, certain cargoes cannot

tolerate heat from an adjacent tank.

Heat reduces the effectiveness of

inhibitors, so avoid stowing inhibited
cargoes adjacent to heated tanks.

To avoid stowing dangerously reactive

cargoes in adjacent tanks - or allowing
them to mix in lines, pumps or slop tanks
- consult the US Coast Guard Code of
Federal Regulations.

To ensure the ship can and does meet all the

charter partys conditions regarding cargo
quality, consider:

does the ships International Maritime

Organisation Certificate of Fitness
declare it fit to carry the cargo?

can the different grades of cargo be

arranged to maintain the degree of
separation required?

can the ship maintain the required cargo

carriage and discharge temperature(s)?

is the tank coating suitable for the cargo?

For example sulphuric acid or white wine
need stainless steel; epoxy is preferred
for vegetable oils.

is the cargo suitable for the tank coating?

Some cargoes can permanently damage
certain coatings, others make coatings
soft for a while, during which time the
range of cargoes they can tolerate is
restricted. Refer to the coating
manufacturers resistance lists.

Preparing cargo systems

and carrying out
preventive maintenance

Flush and drain pumps, pipelines, valves

and draining systems.

Thoroughly rinse away any cleansing

agents used.

Washing water and previous cargo in

dead ends and branch lines causes
contamination.
For cargoes that cannot tolerate water,
e.g. jet fuel and lubricating oil, mop tanks
and remove valve inspection plates to
eliminate every trace of moisture.

Clean vent lines.

Chemical tankers should carry out their

own wall wash tests prior to inspection.

When a tank is gas free, take the

opportunity to inspect its structure and
equipment and carry out maintenance
where possible.

The condition of tank coatings should be

monitored but specialist attention is
usually required if they are found to be
defective.

Never overlook the rules for safe

confined space entry.

Clean the gasket face of tank openings;

check rubber gaskets and replace if
necessary; replace fibre gaskets and
tighten hatch lids correctly.

Test for oil, water and vapour tightness by

using the inert gas system to pressurise
tanks.

Check valve spindles for vapour leaking

from glands.

Make cold weather preparations if

necessary.

Regularly check and maintain:

all cargo valves, pipelines, expansion

joints and couplings by pressure
testing

seachest valves and overboard

discharge valves

high level and pump room alarms

hydraulic valve operating systems

CCR and pump room instrumentation

cargo pumps, stripping pumps,

draining systems and COW machines
to prevent extended discharge times

pressure/vacuum valves to prevent

vapour losses and cross-contamination

sampling and measuring devices, e.g.

Whessoe gauges, trimodal gauges,
explosimeters, oxygen meters

Working as a team

heating coils, using air or fresh

water to check for leaks (which
cause contamination) or blockages
(which cause cargo to solidify). If
coils are not intact, they may
contain residues of previous cargoes

the inert gas system, to ensure it can

maintain required pressure; reduce
oxygen content to required level;
avoid contaminating cargo with soot
deposits from inadequately
scrubbed flue gases

Ships staff must be trained in the use and

calibration of electronic equipment. It
must also be calibrated and certified by
an approved agency yearly.

Encourage everyone to talk

about their mistakes, so all
can learn from them. Build a
winning team.

Working with
terminal representatives
The key meeting should not be limited to filling
out cargo and safety checklists it is in the ships
interest for the Chief Officer to take this opportunity to build ship and shore staff into a team.
The Chief Officer must ascertain the following
from the terminal representatives to monitor
the quality of the cargo transferred to the
ships care:

how ship and shore will communicate

grade(s) and quantity(ies) of cargo(es) to

be loaded

density(ies) of cargo(es)

whether the shore pipeline is dedicated

details of any shore pipeline

displacements planned

number of shore tanks to be loaded from,

and the quantity, temperature and density
of cargo in each

whether any loading stops are planned for

shore tank changes, whether ship or
shore is responsible - and how to stop in
an emergency

if changes are to take place without stops,

that the ship receive notification of every
change for sampling purposes
whether the ship will be receiving two
sets of samples from the shore tanks: one
for the receiver, one for the shipowner
(if not, log that the request was made and
refused)

Working with the cargo inspector:

Tank inspections

Remember, an independent inspector is

independent in name only - expect him to
give the ships interests low priority, and
make sure he is accompanied by an
officer at all times.

An experienced officer may well be more

expert than the inspector.

Tanks cannot be entered where local

regulations insist on constant operation
of the inert gas system but, whenever
possible, make sure that the inspector
checks every tank thoroughly.

If the ships pipelines have been drained,

demonstrate this to him and ensure it
appears on the inspection certificate.

Outside the chemical trade, tank

inspections are often subjective so, if you
do not agree with the inspector, try to
reach a commercial solution - always
faster and cheaper than a legal one.

As soon as it becomes apparent that you

cannot agree, protest.

Remember the Club is always there

to support you, usually with a
correspondent on the spot.

Taking samples

Adopt a sampling procedure that satisfies

the relevant authorities.

Make sure the ship has the right

equipment, including clean bottles,
seals and labels.

Label samples with the following

information:

ships name

date and time

location

cargo name

operational status (e.g. after loading)

sample source (e.g. tank number...)

sample type (e.g. top; composite)

identity of sampler

seal number

Working with the cargo inspector:

Sampling during loading
and discharging

Samples showing that the condition of the

cargo did not change between loading and
discharge provide the best defence
against unfounded contamination claims.

If the lab report is to be right, the sample

must be right too - an inspector is as
prone to error as the next man.

The inspector must be accompanied at all

times, to ensure that the sampling
procedure satisfies the relevant
authorities.

Refer to the Institute of Petroleum

Petroleum Measurement Manual or the
American Petroleum Institute Manual of
Petroleum Measurement Standards to be
certain you know what is required. See
p.51 for addresses of these organisations.

If the inspector fails to do something he

should, or does it wrong, point it out to him
- and log anything he does not put right.

Make sure each sample is signed and

sealed, preferably by the independent
inspector.

Note the particulars of every sample taken

for the ships purposes in a sampling log.

Present the inspector with a list of samples

drawn and retained by the ship for
acknowledgement and signature.

Require any party to whom a sample is

handed over to sign a receipt for it.

Log any faults with his equipment and any

occasions when he borrows the ships.

Store samples in a secure space which is cool,

well ventilated and not exposed to light.

Since the Hague Rules allow claims to be

presented up to a year after the event,
samples should not be disposed of until that
period of time has elapsed.

As well as any samples he takes for the

consignee, the receiver and his own firm,
ask the inspector to take another set for
the ship.

If he refuses, note it in the log - and take

your own.

A leading firm of cargo surveyors reports

that approximately 40% of alleged
shipboard contamination problems are, on
investigation, found to be shore related.

Chief Officers should ensure they receive

two sets of shore tank samples for each
grade: one set for delivery to the
receivers agent; the other to be retained
by the ship.

Asking the inspector to take starting

samples at the manifold is the best way
to detect contamination or commingling
in shore lines.

Make sure first foot samples are taken to

verify that the ships lines are clean.

Discourage the inspector from subjecting

them to visual analysis only, while
loading continues.

Loading should be stopped while proper

tests are carried out, particularly when
the specification is critical.

If the samples are off-test, advise the

charterer without delay.

Even if tests reveal no problems, the ship

must retain its duplicate samples in case
of any later dispute.
Carry out spot checks at the manifold
whenever practicable during loading,
particularly after any shore stops and
preferably accompanied by the inspector
or a representative of the terminal.

Accompany the inspector when he opens

the sealed unit of any composite sampler.

After-loading samples should be taken

from top, middle and bottom of each
cargo tank.

If the cargo is to be treated with an

additive, the fact should be recorded on
the bill of lading. Unless you are certain
that the shipper and receiver have agreed
to this taking place after loading, require
any party proposing to do this to sign for
receipt of a letter protesting the
procedure - before he carries it out.

Make sure you receive a certificate in

respect of cargoes that are inhibited.

At the discharge port, in-line samples of

each grade of cargo should be taken at
the manifold:
at the start of discharging
once during every watch that the
grade is being discharged
during stripping

If the inspector fails to take any of these

samples, the ship should take its own.

Make sure the inspector samples any free

water found, so that its source can be
established.

Sampling bunker tanks after loading and

before discharging helps defend against
claims that cargo has been used as
bunkers.

Monitoring the discharge of cargo

Maintain a minimum of two-valve

separation throughout the discharge of
multiple grade cargoes.

American Petroleum Institute

Valves should be sealed (if they were not

sealed in the loadport) and the seals
pointed out to the inspector and logged.

Telephone: +1 202-682-8000

If possible, leave seals in place until

discharge is completed and ask the
inspector to note the fact.

The most easily contaminated grades

should be discharged first, if possible.

If any grade cannot tolerate contact with

residues of the grade before, strip the
cargo line.

If necessary, flush the line with the second

grade and re-strip - it is better to lose part
of the cargo through downgrading than to
contaminate all of it and the shore tank
besides.

A watch officer discovering contamination

should:

USEFUL ADDRESSES

stop discharging the relevant cargo

close that systems valves

advise the Chief Officer, who advises

the Master, who contacts the owner
and his local P&I correspondent

The Master should:

sample the remaining cargo and

request testing

await instructions from the owner

Never try to conceal a handling error

which may result in contamination. The
sooner problems are identified, the less
the owners potential exposure.

1220 L Street, Northwest

Washington, DC 20005-4070
Fax: +1 202-962-4776

Institute of Petroleum
61 New Cavendish Street,
London W1M 8AR
Telephone: +44 (0)20 7467 7100
Fax: +44 (0)20 7255 1472

Produced for the UK P&I Club by The Wood Partnership

Tel: +44 (0) 1453 843107 Fax: +44 (0) 1453 521291
e-mail: woodpartnership@compuserve.com