Nevesh v- Gubheder Bill of Lading : “Functions of Bill of Lading : 1. Document of title - whoever holds the B/L is the Owner of goods, 2. Receipt for the cargo, signed by the master or by the owner's port agents on behalf of carrier, with remarks as to the condition of the cargo, 3. Evidence of Contract i.e contract between two(2) parties, governing terms and conditions of carriage. Various types of B/L 1. Bearer B/L : which is directly addressed, name of the consignee / bearer is entitled to take the delivery of a cargo. - It's a highly risky B/L and hence very rarely used now-a -days. 2. Order BIL : It is one of the most common BIL's used presently. - Itis usually drawn " to the order of ieee ~ It can be transferred to any number of Consignee's by a simple endorsement by the > current holder of B/L. - Itis a negotiable document. - It serves all the purpose of a B/L 3. Clean BIL : Eveh though the actual condition of the cargo may be suspect, many letter of credit transactions require "clean" bills of lading i.e Bills stating that the goods described therein are in "apparent good order and condition", with no words indicating deficiency in the goods. - However, a carrier cannot agree to issue a clean bills of lading when the goods are not in good condition, even where "letter’s of indemnity are offered by the concerned parties. ~ Bills of lading must accurately depict the actual conditions of the goods and if they don't then it is considered a fraud4. A Foul BIL : This is the bill of lading which is in some way claused or dirty. ~ This means that the cargo loaded is not perfect and the ship-owner protects himself against a claim at the discharge port. 5. Received for Shipment BIL : In liner trades the cargo is actually received into the custody of the ship-owner or his agent but is not actually on board the vessel at that time this bill of lading is issued. - Itis also called a Custody B/L. ~ If this is issued, the shipper may demand from the carrier an endorsement on the B/L when the goods have been loaded on board stating " since shipper " ~ This is also common in container trades where containers are taken in the carriers custody at inland container depots. 6. Shipped BIL : This is issued especially for bulk cargoes and confirms that the cargo is actually on board the ship. ~ Any previously "Received for Shipment B/L" must be surrendered before issuing this. 7. Through BIL or Straight B/L : These are issued where the cargo will only be carried for part of the voyage by the carrier signing the bill of lading. = The remainder of the voyage may be over land or another vessel - With a through bill of lading, the carrier signing it is only responsible for his part of the carriage and acts an agent for the shipper for the other parts of the voyage. 8. Owner's B/L : An owner BIL is the one where the owner has his own format for the BIL. - Master signs the B/L, on behalf of the ship owner. - Hence, it is the ship owner who is the shipper in this case 9. Liner B/L : They are normally used on contail where the vessel's route is fixed and the vessel is called a “liner”10. Sea-way BIL : Its simply a receipt for the goods carried on board. - Itisnot.a document.of title and hence cannot be used as a transport /negotiable document. - It also cannot be used for the purpose of bank or Institutional finence. - The contract of carriage is produced on the reverse of the sea-way B/L ~ The receiver or the consignee is required only to prove his identity in order to take delivery of the goods. - Itis used only on fixed trades. The advantage of sea-way bill's, the master does not have to sight the original B/L's in order to deliver the cargo, Hence, the problem of transporting the original B/L is “avoided. 11. Combined Transport B/L : Under combined transport B/L, there is an organization called as CTO (Combined Transport Operator). ~ This is a B/L, which is used from point ‘A’ to 'B' i.e, (door-to-door) and document is called " Transport Document *. - The responsibility for the entire transport is taken by an organization known as Combined Transport Operator (CTO), - The CTO signs the B/L in this type. 12. Charterer’s B/L : The charterer's format for B/L is used and the master signs on behalf of the charterer, thus making the charterer, a carrier of the goods. 13, Charter-Party B/L : In C/P B/L, the format used is given in the C/P itself. - Master signs the B/L under the instruction of the Charterer. Under this B/L's, ipper. carrier is the charterer whereas for the receiver / consignee, the carrier is the ship-owner_recautions before iqning a B/L and procedures for cargo delive! 4. That the goods as mentioned in the B/L_have been actually shipped. 2. The date of shipment is as per the Mate's Receipt . 3. If the B/L is marked freight prepaid, whether it has actually been paid. 4. Any clausing required as per the Mate's Receipt, 5. A reference is made to the CP if one exists. 6. That the CP terms are not in conflict with the BL terms. 7. The number of original B/L in the set is stated. 8. The port of discharge is as per the vessel's itinerary and within accepted trade limits as per CP. edures for Cargo delivery 1. The master is duly bound to deliver the goods to the first person presenting a signed BIL with proof of identity and proof that the freight is paid. 2. Once the goods are released to a receiver, the carrier's lien for the freight is lost. 3. If the B/L has been transferred by the original consignee, the endorsement on it should be checked. 4. Cargo must be delivered to a bonafide holder of a B/L. If the B/L is open, then cargo can be delivered to anybody who presents it, provided the master has not been informed of any theft or fraud, 5. If the BIL is straight, the master should check that the person claiming delivery is the same as named in the B/L. 6. If the BIL is negotiable, it is very important that the master checks whether the B/L is properly endorsed, and the person claiming delivery is entitled to the goods. 7. Once the master has done this, he has to endorse the B/L as accomplished, and date and sign the B/L with this remarks. As soon as one BIL is accomplished all the other original B/L's become null and void.nificance of Mate's Receipt : 1. Itis a receipt issued and signed by the carrying ship's Chief officer for the goods received on board 2. Ithas been replaced in many ports by the Standard Shipping Note (SSN) 3. Details of the B/L are basedn the details of the Mate's Receipt. Therefore both should tally 4. Details of the Mate's Receipt should be from the ship's tally and should show the actual quantity and condition of the goods received. “6. Ifthe condition of the cargo justifies it, be endorsed as torn bags, rusty drums etc. 6. If the ship's and shippers tally disagree, should be endorsed for the quantity in ispute, if on board to be delivered 7. Itwill be a ship owner's form in triplicate, on board / person delivering the goods / ship's agent. On board copy for tallying with the B/L. 8. Itis not a document of title for the goods shipped as it does not contain a contract of carriage. 9. Does not pass any title by its endorsement or transfer. 10. The shipper usually presents the signed Mate's Receipt to the agent in exchange for the signed B/L before the vessel sails. ifference between Mate's Receipt and BIL : 1. Itis a receipt issued and signed by the carrying ships Chief officer for the goods received on board, whereas a B/L is not signed by the chief officer. 2. Details of the B/L are based on the details of the Mate's Receipt. Therefore both should tally. 3. Details of the Mate's Receipt should be from the ship's tally and should show the actual quantity and condition of the goods received. Whereas details on the B/L are as per the Mate's Receipt4, Endorsements on a Mate's Receipt have no significance, whereas those on the B/L are very significant. 5. Itis not a document of title for the goods shipped as it does not contain a contract of carriage, whereas a B/L is a document of title. 6. Does not pass any title by its endorsement or transfer, whereas B/L does. 7. The shipper usually presents the signed Mate's Receipt to the agent in exchange for the signed B/L before the vessel sails.CERTIFICATE OF REGISTRY 1. Itis one of the most important papers which the ship would have on board. 2:The Certificate can be compared to a title deed. But more than that itis a public document which shows that the ship is entitled to the privileges and also subject to the obligations of an indian flag ship and the master is the lawfully appointed masts 3, Any change in master or owner shall be endorsed on the certificate of registry by the registrar or any duly authorized person by the central government. 4, If the ship is lost or it ceases to be Indian owned, the certificate shall be retumed to the registrar and the registry will be closed. 5. The certificate of registry is issued by the “Registrar of Indian Ships" of the port of registry on completion of the registry of the ship and contains the following particulars: 4) Name of the ship and name of the port to which she belongs, 4 The details contained in the surveyors certificates, The particulars regarding LAY The name and description of her registered owner or owners and if there are more than one owner than the number of shares owned by each of them, L& The name of the master. 6. The Registrar of ships, generally the Principal MMD will register the ships. If Principal Officer is not available, senior most surveyor will be designated as registrar. 7. Any change of ownership or master has to be duly endorsed and signed on the Certificate of Registry in accordance with the provisions of Part V of the Merchant he provisions oh Ram Motte Merchant _ Shipping Act,tering of Indian Shi Ke 1. Applies to all Indian ships which are mechanically propelled greater than 15 tons. 2. The Principal Officer (P.O) MMD Mumbai, Kolkatta, Chennai is called the Registrar at these ports and for any other port such a Registrar will be appointed by the Central Government. 3. Every application for registry of the ship required under Section 26 of MSA shall be accompanied by the following documents : )) Declaration of Ownership, A) Builders certificate (This is a certificate signed by the builder cf the ship and contains a true account of the proper dimensions, size and tonnage of the ship as estimated by him and of the time and place where she was built), If tha ship has been purchased, the instrument of sale under which the property ig ‘the shies transferred to the applicant, r ~ T. Note that the EEDI and the technical file are not required for ship types vA SEEMP 4. SEEMP stands for Ship,Energy Efficiency Management Plan. 2. The main purpose of the SEEMP is to lay down a mechanism for a company and or @ ship to improve the energy efficiency of a ship's operation and preferably link toa _ broader corporate ; management policy. See 3, All ship's must have a SEEMP on board before the issuance of the first IEEC. >& 4, The SEEMP is not subject to approval or verification by the Ac inistration. 5. With the new MARPOL Annex VI requirements coming into force on 01st January’ 2013, itis imperative that the ship owners and operators are up-to-date on the consequences for their fleetA: It will become relevant only if a ship undergoes a major conversion that is so extensive that the ship is regarded by the Administration as a newly constructed ship. ae ship means a ship, 1. for which the building contract is placed on or after 01 st January’ 2013 or, 2. in the absence of a building contract, the keel of which is laid down or which is at a similar stage-of construction on or after 01st January’ 2013; or 3. the delivery of which is on or after 01st January’ 2015 2. ©: Applicability is limited to the ship types defined in Reg, 2.25 to 2.35 of Annex VI. _Soesitng ship" means any ship which does not fall under the definition of " new ship". ~* A major conversion as defined in Annex VI means a conversion, 1,.which substantially alters the dimension, carrying capacity or engine power of the hip or, —— eee amehemnen Vb. which changes the type of the ship, or which in the opinion of the Administration is substantially to prolong.the. ee — ae, | 4. which otherwise so alters the ship that if it were a new ship, it would become subject ~K. to relevant provisions of the present Convention, not applicable to it as an existing ship, or 5. which substantially alters the energy efficiency of the ship and includes any ications that could cause the ship to exceed the applicable required EDI as set out in Reg.21 of Annex VI.os lency Towing Arrangements /S0LAs Ch. I. 4 /Rea 3-4 Emergency towing arrangements on tankers : - Emg. towing arrangements shall be fitted at both ends on board every tanker of than 20, t not less than 20,000 DWT constructed on or after 1st July 2002 - The arrangements shall, at all times, be capable of rapid deployment in the absence of main power on the ship to be towed and easy connection to the towing ship. ~ Atleast one of the emergency towing arrangements shall be pre-rigged for rapid deployment. ~ Emg. towing arrangements at both ends shall be of adequate strength taking into account the size and deadweight of the ship, and the expected forces during bad Wx conditions. - For tankers constructed before 1st July 2002, the design and construction of Emg. towing arrangements shall be approved by the administration. ~ All vessels should have and emg. towing procedure manual on board, based on existing equipment. } # Applicable to and when: he above requirement applies as follows: 1. All passenger ships not later than 1st Jan 2010, 2. Cargo ship's having their keel laid on or after 1st Jan 2010, 3. Cargo ship's having their keel laid on or before 1st Jan 2010, not later than 1st Jan 2012scription of the Equipment. oe ~ The emg. towing procedure manual should include a procedure that the crew must follow in case of an emergency towing. - This procedure must be based on vessel's existing equipment. - Procedure should take into consideration the max. allowable forces the equipment could withstand. A - The manual should include the following: 1. Drawing / Arrangements shavina possible towing arrangements, 2. Description of procedures should be followed, before and during the towing operations, . 3. Methods and means of communications between all relative parties during the towing process, 4. Inventory of equipment used during this process. These procedures do not need to. be approved by the Classification Societies but the Surveyors have to confirm that the manual are on board the vessels. mergency Towing Manual - There are '6' types of towing patterns: 1F, 1A, 2F,2A, 3F,3A F - Forward; A - Aft y, - In case there is imminent danger such as grounding in a short time, less than 1 hour for instance, ~ In case the Wx is bad when connecting the towing lines between the ship and the towing ship, - In case there is no power supply for deck machinery to handle the towing lines. es of Pattern 1F or 1A:jl ses of Pattern 2F or 2A: - In case the duration of being towed is long, more than. 4, day for instance. Uses of Pattern 3F or 3A: - In case towing apparatus is not supplied from the towing ship. At (oeation of the Emergency Towing Booklet ; ~A copy should be kept at hand by the owner / operators in order to facilitate the Passing on of information to the towage company as early as possible in case of an emergency. - A copy may be kept in a common electronic file format, which will allow faster distribution to the concerned parties. - Aminimum of three(3) copies should be kept on board and located in = A The Bridge, VEA fore-castle space, & . The ship's office or C.C.RMia is Fatigue and how it is addressed on board? 1. Fatigue is a state of feeling tired, weary or sleepy due to prolonged mental or physical work, extended durations of anxiety, exposure to harsh environments or loss of sleep. 2. The result of Fatigue is impaired performance and diminished alertness. 3. The effects of Fatigue can be dangerous, the specialized nature of maritime industry requires constant alertness and intense concentration from its work force. 4. Fatigue is dangerous because it affects everyone regardless of skill, knowledge or training, and is linked to human body capabilities and fraitties — 5. Fatigue is the extreme tiredness resulting from mental or physical exertion or illness. As a result, reduction in efficiency of a person will occur. 6. Reason for fatigue on board the ship is a combination of minimum manning, ‘sequence of rapid turnaround's, short sea passages and adverse Wx and traffic conditions, finds seafarers working long hours with insufficient opportunities for recuperative rest. 7. In these circumstances, Fatigue and reduced performances can lead to ill health and reduced life span among highly skilled seafarers who are in short supply. 8. The issue of adequate crewing and the effects of Fatigue upon health and safety are clearly and closely related. 9. In order to avoid accident / environmental damage, a more robust approach to the regulation and manning to be done. Manning level is needed to be addressed in a realistic way that prevent economic advantage accruing to those who operate with minimum crew. Another approach is the enforcement of existing legislation, elimination of false record-keeping, better training and guidance. : (CW Regulation VIII/1 - Fitness for Duty =requires " that watch systems are so arranged that the efficiency of all watch-keeping personnel is not impaired by fatigue and that duties are so organized that the first watch at the commencement of a voyage and subsequent relieving watches are sufficiently rested and otherwise fit for dutye Maritime Labour Convention’ 2006 also addresses this issue as follows: Regulation 2.3 - Hours of work and rest Purpose - To ensure seafarers have regulated hours of work or hours of rest. 1. Each member shall ensure that the hours of work or hours of rest for seafarer's are regulated, 2. Each member shall establish maximum hours of work or minimum hours of rest over given period that are consistent with the provisions in the code. 10. On board the ship, itis the Master's / Chie Officer's responsibility to make sure the crew members including them have taken adequate rest before performing their duties and to comply with the above regulations. 11. A report shall be made on the same in a prescribed format, honestly stating the periods of hours of work and rest. 12. Regular meetings shall be carried out to address / discuss about the accidents ‘occurred onboard ships due to Fatigue and for providing awareness to the crew members.Jt q State 1. Just like everything else in the world, a ship needs to belong to a certain country. This is known as the “Nationality of the Ship" or the Flag of the vessel. 2. The vessel is generally registered at a prominent part of that country. This is known as “Port of Registry” 3. The Flag State of a commercial vessel, i the state under which whose laws the vessel is registered. The Flag State has the authority and Responsibility to enforce Regulations over vessel's registered under its flag. 4. The term "Flag of Convenience describes the business practice of registering a merchant ship in a state different from that of the ship's owner. Ship's are registered under the "Flag of Convenience" to reduce operational costs or to avoid the regulations of the owner's country. 6. Safety Inspections are normally carried out prior to a ship being accepted into a Registry and annually thereafter Inspections are comprehensive and include Inspections and Verification of documentations and procedures, general examination of the ship structure, machinery and equipment and operational testing of L.S.A 7, Where a ship changes Flag, additional. Surveys and_a plan-teview may be required by the new Flag administration. 8. Taxes, tariffs and Crewing play a major part in registration process of a vessel.a ope & e 1992 Fund Convention 1. The 1992 Fund Convention, which is supplementary to the 1992 CLC, establishes a regime for compensating victims when compensation under the 1992 CLC is not available or is inadequate. 2. The International Oil Pollution Compensation Fund, 1992 (1992 Fund) was set up under the 1992 Fund Convention. 3. The 1992 Fund pays compensation when: V% tbe damage exceedsJhe limit of the shipowner’s liability under the 1992 CLC, or ‘the shipowner is exempt from liability under the 1992 CLC, or the, fing his obligations in full under the 1992 CLC and the insurance is insufficient to pay valid compensation claims. 4.The maximum compensation payable by the 1992 Fund is 203 million SDR for incidents occurring on or after 1 November 2003, irrespective of the size of the ship. 5. For incidents occurring before that date, the maximum amount payable is 435 million SDR. These maximum amounts include the sums actually paid by the shipowner under the 1992 CLC. The 1992 Fund is financed by contributions levied on any person who has received ne calendar year than 150,000 tonne: crude oil ea’ oil {contributing oil) in a Member State of the 192 Fund.ce Tonnage : 1. Itis calculated by measuring a ship’s volume (from keel to funnel, to the outside of the hull framing) and applying mathematical formula and is actually a measurement in cubic capacity. 2. Gross tonnage (often abbreviated as GT, G.T or gt) is a unit-ess index related to a ship's overall internal volume. 3. GT is different from gross register tonnage. 4. The International Tonnage Rules adopted by IMO applies to alll ship's built on or after July'18 1982, Ship's built before that date were given 12 years to migrate from their existing gross register tonnage (G.R.T) to use GT and NT. 5. Gross Tonnage is calculated based on "the moulded volume of all enclosed spaces of the ship" and is used to determine things such as a ship's manning regulations._ safety rules, regisration fees, and port dues. 6. Both GT and NT are obtained by measuring ship's volume and then applying a mathematical formula. Generally, a ship's Net Tonnage is less, than 30% of her Gross Tonnage. 7. Gross Tonnage is measured according to the law of the nati the ship is registered. ority with which 8. The measurement is broadly, the capacity in cubic feet of the spaces wit the hull e-#8 of the enclosed spaces above the deck available for cargo, stores, passengers and crew, with certain exceptions, divided by 100. Thug 100 cubic feet f capacity is equivalent to one(1) gross tonnage. 9, The GT is on decline in India. The data that pulled from the Government sources indicate the decline in the national tonnage from almost 7 million GT to 6.39 million GT. Soaencsaea te Net Tonnage (NT) : 1. It is based on a calculation of the volume of all cargo spaces of the ship. 2. It indicates avassal's earning space and is a function of the moulded volume of all cargo spaces of the ship. SeeA commonly defined measurement system is important, since a ship's registration a need een . (Ge, harbour dues, safety and manning rules ef¢. are based on its Gross Tonnage GT or Net Tonnage NT. 4. Net Register Tonnage (NRT) is the volume of cargo the vessel can carry, i.e the Gross Register Tonnage less the volume of spaces that will not hold cargo (e.g engine compartment, helm-station, crew spaces, etc. again with differences depending on Which port or country is doing the calculation). 5. Itrepresents the volume of the ship available for transporting freight or passengers. Xe 6 twas replace by Jet Tonnage in 1994, undor.the-tonnage-Meeacuroment Panama Canal / Universal Measurement System (PC / UMS) : 1. Itis based on Net modified for Panama Canal purposes. 2. Itis based on a mathematical formula to calculate a vessel's total volume, a PC / UMS Net ton is equivalent to 100 Cubic feet of Capacity. juez Canal Net Tonnage (SCNT) : 1. Itis derived with a number of modifigation fromthe fonmer Net Register Tonnage. 2, Itis registered in the Suez Canal Tonnage Certificate. fie ight-ship_or Light-weight : measures the actual weight of the ship with no fuel, passengers, cargo, water, ete. on board.\ Deadweight Tonnage {Often abbreviated as DWT for Deadweight - tonnes): 1. Itis the weight of the cargo, crew, passenger's and stores that a ship can carry. . 2. Itis the diff en the light and loaded displacement. 3. Itis a measure expressed in metric tonnes (1,000 Kgs) or long tons (1016 Kgs) of a Ship's carrying capacity, includifig buinker oil, fresh water, crew and provisions. 4. Its the most important commercial measure of the capacity.Kea lavigation 1. lee is of direct concer to the navigator because it restricts his movements. 2. Itaffects his dead reckoning by forcing frequent changes of course and speed, 3. It affects plotting by altering the features of |andmark, 4. Ithinders the establishment and maintenance of aids ta navigation... 5. It affects the use of electronic equipment by affecting propagation of radio waves. insadatimages.. 7. Itaffects celestial navigation by altering the refraction and obscuring.the horizon, | 8. Itaffects charts by introducing several plotting problems. ae CODE 1. The International Maritime Organization (IMO) sub-committee on Ship Design and Equipment (DE) is developing, along with assistance from DNV and others, a mandatory code for ship's operating in polar waters known as the ‘Polar Code’. 6. It produces changes in surface features. 2. On. 2011 development of a mandatory code for ship's operating in Polar waters was discussed. 3. Polar Code Boundaries for the Artic and Antartic were decided. 4. The Polar Code is applicable for, cargo ship's of 500 GT and above and Ship's operating in.the Aric and Antartic areas. 5. New ship's constructed on or after 01st Jan’ 2017 will need to comply with this code on delivery. 6. Existing ship's constructed before. Ost Jan!-2047Z..ill need to comply with this ment by the 1st Intermediate or Renewal Survey of the Safety Construction 7. The Code consists of (2) parts : Ypart ‘A'- Mandatory requirements Part ‘B'- GuidelinesSparta is tater divided into : Part '1A'- Si Safety, Provisions & Part‘ 2A'- Environment related Provisions 8. The Code allows cargo ship's to obtain the Polar Code Certificate without an. onboard surveyor, if no additional structural modifications is required for compliance with the Code. ). The Code will address ; in ip’s construction.standards,. ape iste ext the requirements for a qualified ice navigator / Draft of the Polar Code 1..Certification, 2. Design, 3. Equipment, 4, Operation, 5. Environmental protection, 6. Manning & Trai Vk Categories of Ship's operating in Polar water's : VAT Class ‘A’ ~ Operating in waters with 10% or. more jce. ~ Ship's Type : Polar Class or equivalent, vy Class 'B' ~ Operating in waters with less than 10% ice, but which may pose a structural risk, Ship Type : Assessment / Ice-strenathening. we Class 'C’ ~ Operating in waters with 0 to 10 % ice, but which does not pose a structural risk, Ship Type : No Ice-strengthening.vies of Ice Carrier's : : A. Rise of ‘a and loss of “GM due to fe accretion * 2. Intact stabil Vaticing allowance, should be included in the analysis of condition of loading. VAN “New damage stability, Booklet in Jine.with,Solas ¢ Chill. * SOLAS Ch.5, Regulations - 5,6, 31 & 32 Alm ortant information to be analyzed before undertaking a passage through High Latitude areas /" Determine the Class of the vessel, Class ‘A’ Polar (Class 1-7), Class 'B', or Class 'C’ and if certified for the planned passage for the intended time of the year. WZ" If the vessel is certified to pass then check sailing area. tion and souting charis for that v3. Advise C/Eng in order to ensure heating system and required lube oil for machinery on board. U-~ Inform S/off.te check LSA.& FEA procedure followed for encountering Ice. (Fire line to be drained and vaives left in open position). 4. Inform 2ioff to monitor Ice reports and safety messages. 6. Chief Officer to ensure that there is sufficient warm clothing for the crew and de-icing com eat AF Refer to Polar Code with respect to Safety and Stability requir Ke Check if Charter Party additional requirements for this passage. OF required to have an ice navigator.on board. AO Aritis necessary for Ice breaker to escort. 17 Person to be contacted in office if vessel require transit. OL Life-boat heating arrangements to be checked. 6. Ballast tank air-bubbling system or ‘anti-freeze liquid to be ready. ents further assistance during thea _PV Breaker and Deck leating arrangement for accommodation to be checked and anti-freeze liquid for q A 5. Bridge sound surveillance system to.be tested. 76. Sy oF Directional Gyro.to be adjusted for speed and Latitude at frequent intervals. . MAT. Know the ship's maneuvering characteristics in ice, go at slow speed in order to prevent ice damage. Ae. ‘Ship‘s.stability.1o be kept in mind as this causes a tise of gravity. A tteans for monitoring ice-accretion on ship's : - There are several reasons for ice accretion, these are: AS Spray hitting the vessel with air temperature being at least - 2 deg C AE Fog freezing on the structure of your vessel. © Rain freszing an the structure of your vessel. 9 anasaail vessel and freezing-up. . Fresh water leaking or being discharged from a pipe.on your vessel. vit your vessel starts to ice-up through ice accretion then do the following : \ACTum the vessel around and head south towards a warm climate, we Minimize the spray coming onto your vessel by slowing your vessel down. V&If your vessel is listing to starboard, then take the ice off the port side first, you will give your vessel a bigger list, but the Centre of Buoyancy (COB) will move out also and thus you will have a higher Righting ever,ae encounter ice accretion on your vessel that was not issued with the shipping forecast, you must : 1. Inform all ship's in the area, 2. Contact the Coast guard. - Never ever take chances with ice-accretion, this can and will severely affect your vessel's stability, vessel's have capsized because of the ANGLE.OF LOLL effect that ice accretion has on the vessel, the vessel will become top heavy as the Centre of Gravity (COG) nears / meets centreline above the Melacentre, (The vessel will have an UNSTABLE EQUILIBRIUM ) How will you go about preparing your vessel for navigation through pack ice? What are the basic principles of working through ice with - and without ice-breaker assistance? 1. A large area of floating ice f cover a period of many years and consisting of pieces of ice-driven together by wind, current, etc. abfitalied as jce-pack,, 2. ce is an obstacle to any ship, even an ice-breaker, and the inexperienced navigatiene. officer is advised to develop a healthy respect for.the latent pawer.and strength allits forms. 3. However, it is quite possible, and continues to be proven so far well-found ships in capable hands to navigate successfully through ice-covered waters, +14, The first principle of successful ice-navigation is to maintain freedom of manoeuvre. 5. Once, a ship becomes trapped, the vessel goes where-ever the ice goes. 6. Ice Navigation requires great patience and can be a tiring business with or without ice-breaker escort. 7. Experience has proven that in ice of higher concentration, four basic ship-handling rules apply : 2} Keep moving - even very slowly, but try to keep moving, 6) Try to.work with the ice-movement, seaman speed.almost always results in ice damage, ‘know your ship's manoeuvring characteristics.v8. Navigation in pack ice after dark should not be attempted without high-power search- lights which can be controlled easily from the bridge. ~-8,,{n poor visibility, heave to and keep the propell susceptible to ice damage than if it were completely stopped. Propellers and rudders are the most vulnerable parts of the shig, ship's should go astern in ice with extreme care - always with the rudder amid-ship. 7.11. All forms of glacial ice.Lice-bergs, beray bits, growlers imetrespert should be given a © wide berth, as they are current driven whereas the pack is wind driven, berth. ¢ re in fe pack Is wind driven. 12. When a ship navigating independently becomes beset. it usually requires ico- breaker assistance to free it. However, ships in ballast can sometimes free themselves by pumping and transferring ballast from side-to-side, and it may require very little change in trim or list to release the ship. 13. Masters who are in-experienced in ice often find it useful to employ the services of an ice-pilot / advisor f i nce in wit in Ice-navigator for Voyages inta the Artic in the summer. fu jaster's Obligation upon sightin: Ui Master should send an obligatory report made by all available means t ships in the vicinity and to the nearest coast radio station or signal station. "The report should be made in english for preference or by the International Code of Signals. \-S if sent by radiotelegraphy, the message should be preceded by the safety signal omé& if by radiotelephony, the spoken word "SECURITE" , repeatedthree times in each case: ae Report Gon LAY Ship's name and Port of Registry, afDate and GMT of the observation, er type of Ice observed, Position of Ice observed, -oncentration and thickness, if known,Ay bergs, size and shapes. vhow - Consider any ice to be dangerous ice for surface navigation in the sense that if one piece of ice is sighted in an area, there is a distant possibility of another piece and perhaps much bigger than the one sighted. It is very easy as well as dangerous to. underestimate the size of ice. Dangerous ice can, thus, be defined as any ice that imposes risk to safe surface navigation. For e.g - Brash Ice is not dangerous to surface navigation. However, what may have been within its coverage area can be Growler-which may not be detectable by radar. Hence, all ice is dangerous to surface navigation.\ JMO Goal based ship construction standards : 1. Applicable to Bulk Carriers above 4150. m.Jenath and tanker above 20 m length. 2. According to this: {IMO has set-up goals for construction of these ship's and defined the Functional Requirements. : 27 Classification Societies are to frame rules meeting above standards. »AYIACS will harmonize these Rules and present to IMO for approval. #7 Once approved, they will become Rules of Construction for these types of ship's. 27 Each ship is required to carry a ship construction file containing information specified by IMO & explaining how ship meets functional requirements. This Book is to be modified if- structural modifications are done on ship's. -& Goals Set-up by IMO: af Rew Ships to be designed and constructed for a specified design life and to be safe and envi ly friendly, in intact and specified damage condifons throughout their life. 4) The Ship should have, adequate strength, integrity and stability to minimize the risk of ‘oss of the ship or potlution to the marine environment due to Structural failure, including capsize, resulting in flooding or loss of water-tight integrity. caINCOTERMS : fat are Incoterms®? The term, Incoterms®, is an abbreviation for International Commercial Terms. They are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts for domestic and international trade. They are published by the International Chamber of Commeree (ICC) and are widely used in international commercial transactions. The first Incoterms® were issued in 1936. The most recent version of Incoterms®, Incoterms® 2010, were launched in September 2010 and became effective January 1, 2011. What are Incoterms® used for? Incoterms® provide a common set of rules to clarify responsibilities of sellers and buyers for the delivery of goods under sales contracts. They apportion transportation costs and responsibilities associated with the delivery of goods between buyers (importers) and sellers (exporters) and reflect modern-day transportation practices. Incoterms® significantly reduce misunderstandings among traders and thereby minimize trade disputes and litigation. Why were the Incoterms® 2000 revised? Incoterms® 2010 are the updated version of Incoterms®. Incoterms® 2010 have been developed as a result of an extensive review of current shipping practices and trends in an effort to keep up with the rapid expansion of world trade. The key drivers for this update include: a need for improved cargo security, changes to the Uniform Commercial Code in 2004 that resulted in a deletion of U.S. shipment and delivery terms, and new trends in global transportation, What are the Incoterms® 2010? The two main categories of incoterms® 2010 are now organized by modes of transport. Used in international as well as in domestic contracts for the first time, the new groups aim to simplify the drafting of contracts and hélp avoid misunderstandings by clearly stipulating the obligations of buyers and sellers.EXW Ex Works “Ex Works" means that the sel es the goods at the disposal of the buyer at the seller's premisas-or at another named place (Le..works, factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle, ‘Ror does it need to clear the goods for export, where such clearance is applicable. es FOR ANY MODE OR MODES OF TRANSPORT FCA Free Carrier Alo { “Free Carrier” means that thie seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place. The parties fare well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer atthatpoint. = CPT Carriage Paid To a “Carriage Paid To” means that the seller delivers the goods to the carrier or another | person nominated by the seller at an agreed place (if any such place is agreed between | parties) and that the seller must contract for and pay the costs of carriage necessary to. | bring the go goods to the named place of destination, } IP Carriage And Insurance Paid To | “Carriage and Insurance Paid to” means that the seller delivers the goods to the carrier | t \ or another person nominated by the seller at an agreed place (if any such piace is agreed between parties) and that the seller must contract for aiid pay the costs of carriage necessary to bring the goods to the named place of destination. “The seller also contracts for insurance cover against the buyer's risk of loss of or damage to the goods during the carriage. The buyer should note that under CIP the Seller is required to obtain insurance only on minimum cover, Should the buyer wish to have more insurance protection, it will need “ selterer to make its own extra insurance arrangements.” A DAT Delivered At Terminal “Delivered at Terminal’ means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed al the disposal of the buyer at a nanied” ‘emninal at the named port or place of destination. “Terminal” includes a place, whether ~Sovered or not, such as.a quay, warehouse, container yard or oad, rail or air cargo “Terminal, The seller bears all risks involved in bringing the goods to and > goods to and unloading them _ i atthe terminal at the naméa port or place oF destination. Rendone Delivered At Place “Delivered at Place” means that th ‘hen the goods are placed at the disposal of the buyer on the sans of transport in 1e “Hamed place of destination. The seller bears all risks involved in bringing the goods to the named place. LO ppp Delivered Duty Paid “Delivered Duty Paid” means that the seller delivers the goods when.the goods are_ ‘Placed at the disposal of the buyer, cleared for import on the arriving means of transport Teady for unloading at the named place of destination. The seller bears ail the costs and ‘Tisks involved in bringing the goods to the place of destination and has an obligation to ‘lear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities. RULES FOR SEA AND INLAND WATERWAY TRANSPORT FAS Free Alongside Ship “Free Alongside Ship" means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named _Port of shipment. The risk of loss wf or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards. “x FOB Free On Board “Free On Baard’.means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment orprecurasine goods alceadyso delivered: The risk of loss ef or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards. Morr Cost and Freight “Cost and Freight” means that the seller delivers the'goods on board the vessel or |. The risk of loss of or damage to the goods passes when.the goods are on board the vessel. the seller must contrac! the costs and freight necessary to bring the goods to the named port of dAe Cost, Insurance and Freight “Cost, Insurance and Freight” means that the seller delivers the goods on board the Goods passes when the goods are on board the vessel. The seller must contract for and iH ‘pay thé costs and freight necessary to bring the goods to thé namied port of destination. ‘The seller also contracts for in st the buyer's risk of loss of or ~Bamaige to"the goods during'the carriage. The buyer should note that under CIF the llér is requifed to obtain insurance only.on minimum, cover. Should the buyer wish to have more insurance protection, iwill- neec-eitherteragree-ee-much-oxprassly.withthe. ‘sellerer to make its own extra insurance arrangements.Q. What is ISM Code? A, It is an International Standard for the Safe Operation of ships and for pollution Prevention. Q. What is the structure of your Safety Management Manual? A. We have only one shipboard Safety Management Manual. Q. Who is responsible to update the Safety Management Nanual on board? A. Master. Q. How do you update your Safety Management Manual? A. After recording the notice or circular in the in-coming document ledger. We remove / destroy the obsolete pages, and insert the new pages, record & sign the correction made in the Revision sheet. Q. What is the Function of Designated Person? A, Designated Person provide a link between ship and shore, having direct access to the highest level of management. He is responsible for monitoring the safety and pollution prevention aspects of each ship and to ensure that adequate resources and shore-based support are available. Q. What is your Company Policy? A. Company Policy is to conduct business activities, taking foremost account in Health, Safety of all persons and safeguard of natural environment. i.e, Prevent Accident & Pollution, Promote health and Raise standards by training. Q. What are the responsibilities of Master under ISM Code? A, Master has six responsibilities under ISM Code. Implement, Review & Verify Safety Management System, Issue orders, Motivate crew & Report Non- Conformities. @. How do you implement the company policy? A. By Training, Interview, Drill, Bxercise 6 Education. Q. How do you motivate the crewmembers to follow SMS? A, By Training, Interview, Drill, Bxercise 4 Education & I tell them that safety is in their own interest. Q. How do you review the sus? A. - We discuss SMS during out Safety committee meetings. ~ We examine Internal § External Audit reports. Port slate control reports. Class recommendations. = We monitor onboard training, new regulations and technology. ~ We make an Annual Review Report in June every year and report 1o Designated Person. Q. How do you report Non-conformities, Accidents «é Hazardous situations? A. We have non-conformity, accidents & hazardous situation reporting form. when a E any non-conformities, accidents hazardous situations arc reported we investigate, analyze and take corrective action. In case corrective action cannot_be taken on ~~ board we report the “matter to Designated Person and seek company assistance.ISM CODE The ISM Code provides an International standard for the safe management and operation of ships and for pollution prevention. The purpose of ISM Code is: + Toensure Safety at Sea + To prevent human injury or loss of life + Toavoid damage to the environment and to the ship. SOLAS adopted the ISM Code in 1994 and incorporated it into chepter IX. By 1998 much of the commercial shipping community was required to be in compliance with the ISM code. By 2002 almost all of the international shipping commurity was required to comply with the ISM Code. In order to comply with the ISM Code, each ship class must have 2 working Safety Management System (SMS). Each SMS consists of the following elements: + Commitment from top management + ATop Tier Policy Manual + AProcedures Manual that documents what is done on board the ship, during normal operations and in emergency situations + Procedures for conducting both internal and external audits to ensure the ship is. doing what is documented in the Procedures Manual + ADesignated Person Ashore to serve as the link between the ships and shore staff and to verify the SMS implementation + Asystem for identifying where actual practices do not meet those that are documented and for implementing associated corrective action + Regular management reviews Another requirement of the ISM Code is for the ship to be maintained in conformity with the provisions of relevant rules and regulations and with any additional requirements which may be established by the Company. Each ISM compliant ship is audited, first by the Company (internal audit) and then each 2.5 to 3 years by the Flag State Marine Administration to verify the fulfillment and effectiveness of their Safety Management System. Once SMS is verified and itis working and ettectively implemented, the ship is issued with The Safety ManagementVeet” % a) {onek Certificate. Comments from the auditor and/or audit body and from the ship are incorporated into the SMS by headquarters. The requirements of the ISM Code may be ap) d to all ships. PART A- IMPLEMENTATION 1 GENERAL 4.1. Definitions The following definitions apply to parts A and B of this Code. 4.1.1. International Safety Management (ISM) Code means the Intemational Management Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the Assembly, as may be amended by the Organization. 4.1.2 Company means the owner of the ship or any other organization or person such as the manager, or the bareboat charterer, who has assumed the responsibility for operation of the ship from the shipowner and who, on assuming such responsibility, has agreed to take over all duties and responsibility imposed by the Code. 4.1.3. Administration means the Government of the State whose flag the ship is entitled to fly. 1.1.4 Safety management 'system means a structured and documented system enabling Company personnel to implement effectively the Company safety and environmental protection policy. 1.1.5 Document of Compliance means a document issued to a Company which complies with the requirements of this Code. 1.1.6 Safety Management Certificate means a document issued to a ship which signifies that the Company and its shipboard management operate in accordance with the approved safety management system 1.1.7 Objective evidence means quantitative or qualitative information, records or statements of fact pertaining to safety or to the existence and implementation of a safety management system element, which is based onISM CODE observation, measurement or test and which can be verified. 44.8 Observation means a statement of fact made during a safety management audit and substantiated by objective evidence. 4.1.9 Non-conformity means an observed situation where objective evidence indicates the non-fulfilment of a specified requirement. 1.4.10 Major non-conformity means 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 or the lack of effective and systematic implementation of a requirement of this Code. 1.4.11. Anniversary date means the day and month of each year that corresponds to the date of expiry of the relevant document or certificate. 4.1.12. Convention means the Intemational Convention for the Safety of Life at Sea, 1974, as amended. 1.2 Objectives 1.2.1. The objectives of the Code are to ensure safety at sea, prevention of human injury or loss of life, and avoidance of damage to the envircnment, in particular to the marine environment and to property. 1.2.2. Safety management objectives of the Company should, inter alia: <1 provide for safe practices in ship operation and a safe working environment; .2. assess all identified risks to its ships, personnel and the environment and establish appropriate safeguards; and 3 continuously improve safety management skills of personnel ashore and aboard ships, including preparing for emergencies related both to safety and environmental protection 1.2.3. The safety management system should ensure: -1 compliance with mandatory rules and regulations; and .2 that applicable codes, guidelines and standards recommended by the Organization, Administrations, classification societies and maritime industry organizations are taken into account.ISM CODE 1.3 Application The requirements of this Code may be applied to all ships. 1.4 Functional requirements for a safety management system Every Company should develop, implement and maintain a safety management system which includes the following functional requirements: 1 a safety and environmental-protection policy; -2 instructions and procedures to ensure safe operation of ships and protection of the environment in compliance with relevant international and flag State legislation; 3 defined levels of authority and lines of communication between, and amongst, shore and shipboard personnel; -4 procedures for reporting accidents and non-conformities with the provisions of this Code; ‘5 procedures to prepare for and respond to emergency situations; and .8 procedures for internal audits and management reviews. 2 SAFETY AND ENVIRONMENTAL-PROTECTION POLICY 24 The Company should establish a safety and environmenta‘-protection Policy which describes how the objectives given in paragraph 1.2 will be achieved 2.2. The Company’should ensure that the policy is implemented and maintained at all levels of the organization, both ship-based and shore- based. 3 COMPANY RESPONSIBILITIES AND AUTHORITY 3.1 If the entity who is responsible for the operation of the ship is other than the owner, the owner must report the full name and details of such entity to the ‘Administration. 3.2 The Company should define and document the responsibility, authority and interrelation of all personnel who manage, perform and verify work relating to and affecting safety and pollution prevention. \_ISM CODE 3.3. The Company is responsible for ensuring that adequate resources and shore-based support are provided to enable the designated person or persons to carry out their functions. 4 DESIGNATED PERSON(S) To ensure the safe operation of each ship and to provide a link between the Company and those on board, every Company, as appropriate, should designate a person or persons ashore having direct access to the highest level of management. The responsibility and authority of the designated Person or persons should include monitoring the safety and pollution- prevention aspects of the operation of each ship and ensuring that adequate resources and shore-based support are applied, as required. 5 MASTER'S RESPONSIBILITY AND AUTHORITY 5.1 The Company should clearly define and document the master’s responsibility with regard to: -1 implementing the safety and environmental-protection policy of the Company; .2 motivating the crew in the observation of that policy; .3 issuing appropriate orders and instructions in a clear and simple manner; -4 verifying that specified requirements are observed; and .5 periodically reviewing the safety management system and reporting its deficiencies to the shore-based management. 5.2 The Company should ensure that the safely management system operating on board the ship contains a clear statement emphasizing the master's authority. The Company should establish in the safety management system that the master has the overriding authority and the responsibility to make decisions with respect to safety and pollution prevention and to request the Company's assistance as may be necessary.ISM CODE 6 RESOURCES AND PERSONNEL 6.1 The Company should ensure that the master is: .1 properly qualified for command; .2 fully conversant with the Company's safety management system; and .3 given the necessary support so that the master's duties can be safely performed. 6.2. The Company should ensure that each ship is manned with qualified, certificated and medically fit seafarers in accordance with national and international requirements. 6.3. The Company should establish procedures to ensure that new personnel and personnel transferred to new assignments related to safety and protection of the environment are given proper familiarization with their duties. Instructions which are essential to be provided prior to sailing should be identified, documented and given. 6.4 The Company should ensure that all personnel involved in the Company's safety management system have an adequate understanding of relevant rules, regulations, codes and guidelines. 6.5 The Company should establish and maintain procedures for identifying any training which may be required in support of the safety management system and ensure that such training is provided for all personnel concerned. 6.6 The Company should establish procedures by which the ship's personnel receive relevant information on the safety management system in a working language or languages understood by them. 6.7 The Company should ensure that the ship's personnel are able to communicate effectively in the execution of their duties related to the safety management system. 7 SHIPBOARD OPERATIONS The Company should establish procedures, plans and instructions, including checklists as appropriate, for key shipboard operations concerning the safety of the personnel, ship and protection of the environment. The various tasks should be defined and assigned to qualified personnel.ISM CODE 8 EMERGENCY PREPAREDNESS 8.1 The Company should identify potential emergency shipboard situations, and establish procedures to respond to them. 8.2 The Company should establish programmes for drills and exercises to prepare for emergency actions. 8.3. The safety management system should provide for measures ensuring that the Company's organization can respond at any time to hazards, accidents and emergency situations involving its ships. 9 REPORTS AND ANALYSIS OF NON-CONFORMITIES, ACCIDENTS. AND HAZARDOUS OCCURRENCES 9.1 The safety management system should include procedures ensuring that non-conformities, accidents and hazardous situations are reported to the Company, investigated and analysed with the objective of improving safety and pollution prevention. 9.2. The Company should establish procedures for the implementation of corrective action, including measures intended to prevent recurrence. 10 MAINTENANCE OF THE SHIP AND EQUIPMENT 10.1 The Company should establish procedures to ensure that the ship is maintained in conformity with the provisions of the relevant rules and regulations and with any additional requirements which may be established by the Company. 10.2 In meeting these requirements, the Company should ensure that: -1 inspections are held at appropriate intervals; .2 any non-conformity is reported, with its possible cause, if known; -3 appropriate corrective action is taken; and 4 records of these activities are maintained. 10.3 The Company should identify equipment and technical systems the sudden operational failure of which may result in hazardous situations. The safety management system should provide for specific measures aimed at promoting the reliability of such equipment or systems. These measures should include the regular testing of stand-by arrangements and equipment _/ISM CODE or technical systems that are not in continuous use. 10.4 The inspections mentioned in 10.2 as well as the measures referred to in 10.3 should be integrated into the ship's operational maintenance routine. 41 DOCUMENTATION 11.1. The Company should establish and maintain procedures to control all documents and data which are relevant to the safety management system. 11.2. The Company should ensure that: . -1 valid documents are available at all relevant locations; .2 changes to documents are reviewed and approved by authorized personnel; and 3 obsolete documents are promptly removed. 11.3. The documents used to describe and implement the safety management system may be referred to as the Safety Management Manual. Documentation should be kept in a form that the Company considers most effective. Each ship should carry on board all documentation relevant to that ship. 12 COMPANY VERIFICATION, REVIEW AND EVALUATION 12.4 The Company should carry out internal safety audits on board and ashore at intervals not exceeding twelve months to verify whether safety and pollution-prevention activities comply with the safety management system. In exceptional circumstances, this interval may be exceeded by not more than three months. 12.2 The Company should periodically evaluate the effectiveness of the safety management system in accordance with procedures established by the Company. 12.3. The audits and possible corrective actions should be carried out in accordance with documented procedures. 12.4. Personnel carrying out audits should be independent of the areasISM CODE being audited unless this is impracticable due to the size and the nature of the Company. 12.5. The results of the audits and reviews should be brought to the attention of all personnel having responsibility in the area involved. 12.6 The management personnel responsible for the area involved should take timely corrective action on deficiencies found. PART B — CERTIFICATION AND VERIFICATION 43. CERTIFICATION AND PERIODICAL VERIFICATION 13.1. The ship should be operated by a Company which has been issued with a Document of Compliance or with an Interim Document of Compliance in accordance with paragraph 14.1, relevant to that ship 13.2. The Document of Compliance should be issued by the Administration, by an organization recognized by the Administration or, at the request of the. Administration, by another Contracting Government to the Convention to any ‘Company complying with the requirements of this Code for a period specified by the Administration which should not exceed five years. Such a document should be accepted as evidence that the Company is capable of complying with the requirements of this Code. 13.3 The Document of Compliance is only valid for the ship types explicitly indicated in the document. Such indication should be based on the types of ships on which the initial verification was based. Other ship types should only be added after verification of the Company's capability to comply with the requirements of this Code applicable to such ship types. In this context, ship types are those referred to in regulation IX/ of the Convention. 13.4, The validity of a Document of Compliance should be subject to annual verification by the Administration or by an organization recognized by the Administration or, at the request of the Administration, by another Contracting Goverment within three months before or after the anniversary dete. 13.5 The Document of Compliance should be withdrawn by the Administration or, at its request, by the Contracting Government which issuedISM CODE the Document when the annual verification required in paragraph 13.4. is not, requested or if there is evidence of major non-conformities with this Code. 13.5.1 All associated Safety Management Certificates and/or Interim Safety Management Certificates should also be withdrawn if the Document of Compliance is withdrawn. 13.6 A copy of the Document of Compliance should be placed on board in order that the master of the ship, if so requested, may produce it for verification by the Administration or by an organization recognized by the ‘Administration or for the purposes of the control referred to in regulation 1X/6.2 of the Convention. The copy of the Document is not required to be authenticated or certified 13.7. The Safety Management Certificate should be issued to a ship for a Period which should not exceed five years by the Administration or an organization recognized by the Administration or, at the request of the Administration, by another Contracting Government. The Safety Management Certificate should be issued after verifying that the Company and its shipboard management operate in accordance with the approved safety management system. Such a Certificate should be accepted as evidence that the ship is complying with the requirements of this Code. 13.8 The validity of the Safety Management Certificate should be subject to at least one intermediate verification by the Administration or an organization recognized by the Administration or, at the request of the Administration, by another Contracting Government. If only one intermediate verification is to be carried out and the period of validity of the Safety Management Certificate is five years, it should take place between the second and third anniversary dates of the Safety Management Certificate. 13.9 In addition to the requirements of paragraph 13.5.1, the Safety Management Certificate should be withdrawn by the Administration or, at the request of the Administration, by the Contracting Government which has issued it when the intermediate verification required in paragraph 13.8 is not requested or if there is evidence of major non-conformity with this Code. 13.10 Notwithstanding the requirements of paragraphs 13.2 and 13.7, when the renewal verification is completed within three months before the expiry date of the existing Document of Compliance or Safety Management Certificate, the new Document of Compliance or the new Safety ManagementISM CODE Certificate should be valid from the date of completion of the renewal verification for a period not exceeding five years from the date of expiry of the existing Document of Compliance or Safety Management Certificate. 13.11 When the renewal verification is completed more than three months before the expiry date of the existing Document of Compliance or Safety Management Certificate, the new Document of Compliance or the new Safety Management Certificate should be valid from the date of completicn of the renewal verification for a period not exceeding five years from the date of completion of the renewal verification 13.12 When the renewal verification is completed after the expiry date of the existing Safety Management Certificate, the new Safety Management Certificate should be valid from the date of completion of the renewal verification to a date not exceeding five years from the date of expiry of the existing Safety Management Certificate. 13.13. If a renewal verification has been completed and a new Safety Management Certificate cannot be issued or placed on board the ship before the expiry date of the existing certificate, the Administration or organization recognized by the Administration may endorse the existing certificate and such a certificate should be accepted as valid for a further period which should not exceed five months from the expiry date. 13.14 Ifa ship at the time when a Safety Management Certificate expires is not in a port in which it is to be verified, the Administration may extend the period of validity of the Safety Management Certificate, but this extension should be granted only for the purpose of allowing the ship to complete its voyage to the port in which it is to be verified, and then only in cases where it appears proper and reasonable to do so. No Safety Management Certificate should be extended for a period of longer than three months, and the ship to which an extension is granted should not, on its arrival in the port in which it is to be verified, be entitled by virtue of such extension to leave that port without having a new Safety Management Certificate. When the renewal verification is completed, the new Safety Management Certificate should be valid to a date not exceeding five years from the expiry date of the existing Safety Management Certificate before the extension was grantedISM CODE 14 INTERIM CERTIFICATION 14.1 An Interim Document of Compliance may be issued to facilitate initial implementation of this Code when: 1 a Company is newly established; or .2_ new ship types are to be added to an existing Document of Compliance, following verification that the Company has a safety management system that meets the objectives of paragraph 1.2.3 of this Code, provided the Company demonstrates plans to implement a safety management system meeting the full requirements of this Code within the period of validity of the Interim Document of Compliance. Such an Interim Document of Compliance should be issued for a period not exceeding 12 months by the Administration or by an organization recognized by the Administration or, at the request of the Administration, by another Contracting Government. A copy of the Interim Document of Compliance should be placed on board in order that the master of the ship, if so requested, may produce it for verification by the Administration or by an organization recognized by the Administration or for the purposes of the control referred to in regulation IX/6.2 of the Convention The copy of the Document is not required to be authenticated or certified. 14.2 An Interim Safety Management Certificate may be issued: .1 to new ships on delivery; .2 when a Company takes on responsibility for the operation of a ship which is new to the Company; or .3 when a ship changes flag. Such an Interim Safety Management Certificate should be issued for a period not exceeding 6 months by the Administration or an organization recognized by the Administration or, at the request of the Administration, by another Contracting Government. 14.3 An Administration or, at the request of the Administration, another Contracting Government may, in special cases, extend the validity of an Interim Safety Management Certificate for a further period which should not exceed 6 months from the date of expiry. 14.4 An Interim Safety Management Certificate may be issued followingISM CODE verification that: 1 the Document of Compliance, or the Interim Document of Compliance, is relevant to the ship concerned; .2 the safety management system provided by the Company for the ship concemed includes key elements of this Code and has been assessed during the audit for issuance of the Document of Compliance or demonstrated for issuance of the Interim Document of Compliance; .3 the Company has planned the internal audit of the ship within three months; 4 the master and officers are familiar with the safety management system and the planned arrangements for its implementation; .5 instructions, which have been identified as being essential, are provided prior to sailing; and .6 relevant information on the safety management system has been given in a working language or languages understood by the ship’s personnel. 415 VERIFICATION 15.1 All verifications required by the provisions of this Code should be carried out in accordance with procedures acceptable to the Administration, taking into account the guidelines developed by the Organization 16 FORMS OF CERTIFICATES 16.1 The Document of Compliance, the Safety Management Certificate, the Interim Document of Compliance and the Interim Safety Management Certificate should be drawn up in a form corresponding to the models given in the appendix to this Code. If the language used is neither English nor French, the text should include a translation into one of these languages. 16.2 In addition to the requirements of paragraph 13.3, the ship types indicated on the Document of Compliance and the Interim Document of Compliance may be endorsed to reflect any limitations in the operations of the ships described in the safety management system.etter of Protest 1. A Letter of protest, simply known as Protest, is a written communication, intended to record dis-satisfaction on the part of one party concerning any operational matter over ‘which the recipient or other party has control, and holding the other party responsible for the consequences of the matter being complained of. 2. Most commonly a protest is in connection with cargo, although they may be written about almost any matter where there is a contractual arrangement. eg. Use of berth or use of equipment, 3. A.Letter of Protest helps substantiate a claim by owners or vice-versa, and may prove useful, if property filed, when a dispute is being resolved long after the related event. 4. A Letter of Protest is thus different from a Note of Protest or lodged with a consul or _ Notary public. \ufider what circumstances would you write a Letter of Protest 7 1. When cargo is being loaded too fast or too slow, when stevedores are damaging the ship or mishandling ship's equipment, when wash from harbour craft is causing problems for the ship, when berth or fendering arrangements are inadequate, when longshoremen / docker's are misusing ship's equipment and ignoring duty officer's advice, when passing vessel's cause ranging or wash damage etc, whilst loading / discharging, in any ~ other situation where the master wishes to formally record his dis- satisfaction with arrangements over which the other party has some control.Ae MARINE INSURANCE Definition : Marine Insurance contract is a contract of " Uberimae fidieii" i.e (Utmost good faith). (Utmost good faith). 1. As per the Marine Insurance Act of f 1906, it is defined as a contract, where th the insurer indemnifies the assured ir in the manner and to the extent thereby agreed against Maritime perils, e.g - fire, collision, piracy, pollution, “robbery, act of god, act of war, detention of princess, leader, rulers, kings etc. , cargo damage. 2. Insurance forms are standard. 3. Marine Insurance can be divided broadly into two groups : 0 Cargo Insurance © Hull & Machinery Institute A,B, & C Bue i Cargo clause "A” - Institute cargo clause ‘A’ provides the maximum coverage subject to certain exclusions, for eg Loss, damage or expense att ‘Ordinary leakage, ordinary los tear of the subject matter insured. to will misconduct of the assured. ight or volume, ordinary wear and - Since Institute cargo clause 'A' covers all the perils, it is also known as "all. tisk covered policy" & hence attracts the maximum premium. - Covers General a' 1 Collision clause. ~ress ute Cargo clause "B" - Institute cargo clause 'B' covers the perils enlisted... eg- Fire or Explosion, %. Stranding / Grounding, 4, Collision, 4 Discharge of cargo at a port of distress, Earthquake, Volcanic erruption or lightening, . Overturning or derailment of land conveyance, “Capsizing - Exclusions to this clause are : 4) Loss, damage or expense attributable to will misconduct of the assured. b) Ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear of the subject matter insured. - Covers General Average & Both-to Blame Collision clause. On - Institute cargo clause 'C' covers the perils enlisted... eg- “Fire or Explosion, Reese or craft being stranded, grounded, sank or capsized, “Overtuming or derailment of land conveyance, A. Collision of contact of vessel, craft or conveyance with any external object other than water, (Discharge of cargo at a port of distress. stitute Cargo clause - Exclusions to this clause are : 4),oss, damage or expense attributable to will misconduct of the assured, 48) Ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear of the subject matter insured. - Covers General Average & Both-to Blame Collision clause.Hull & Machinery insurance is, fundamentat pratection of a vessel against damage. The vessel, including her machinery and equipment, is it fo her full value and, depending on the chosen cover, the following risks may be indemnified: A Total loss (actual or constructive) or expenses that might be incurred in repairing / placing damaged parts of hull, machinery and other equipment / tapenses paid for prevention, minimizing of damages e-celeutatiorrofiess, in case such expenses are caused by an insured peril ZNessel gone missing General Average contribution A Salvage expenses Apart from the risks above Hull & Machinery policy may also include additional cover, ‘such as; increased Value insurance % “Loss of Hire AA War Risks ¢/ Fuel and Stores onboard vv Cash onboard v, Running Down Clause Fixed and Floating Objects Avavious types of Marine insurance policies : KA Valued policy - It is the one where.value of insurable interes: is fixed. Premium is calculated on basis of the fixed value. Once the value has been declared and the policy issued, the value cannot be changed. It is a legal document. LUnwvalued policy - It is one, where the value is not fixed and has to be decided later. These policies are not used any more. jt is a legal document. . Voyage policy - It is a policy for a single voyage, between any two points or termini (terminals). Points of commencement and completion are lef to be decided between the insurer and the assured. i.e ( freedom of contract). _ A tine policy - It is a policy for a specified period of time and the period is left for both the parties to decide. e.g - H & M policies, CLC Oil / Bunt Voyage + Time policy: It is a mixed policy wherein the insurer assures for a particular voyage in addition to a particular time.‘Open-Cover policy - It is usually taken by exporters/ traders who usually have a number of shipmerits Spread over a period of time. It is not signed by any of the parties and hence is not a legal dacuument Every time a shipment is made, all the details of the shipment are given to the insurer who then issues an insurance certificate for that particular shipment. This insurance certificate is a legal document - as the value of each shipment is uncertain at the time open-cover is taken, a * Jimit per bottom” l,e (ship) is_ pre-decided and mium is calculated on the basis of the limit per bottom. . Floating policy- it is same like open-cover_It isa legal document. Given as “Indorsement™ Whenever a large exporter wants a blanket caver for all his shipment, he can opt for a policy known as floating policy / cover. This is.a legal dacument. Every time a shi ils of shipment are entered into the policy by way of _ “indorsement’—A certain maximum sum is agreed upon, between the insurer and assured. Whenever thé Sum fs reached, the policy is said to be "RUN-OFF”. Thereafter, the policy is to be renewed, For Open and Floating policies : '2' clauses are there. - Insurer mentions, a list of classification societies. Every shipment has to be made on a ship which is cover&trby THe Classification Societies mentioned in that list. - Also, at times there is a clause restricting the age of the ship on which the shipments have to be carried out.a L#What are the 4-pillars of marine insurance? Explain how each of them supports the cause of marine insurance. - The 4-pillars of the Marine insurance are af Utmost good faith, yy) surable interest, / ¢ | idemnity, & cin 1. It is, requirement of law relating to all contracts that a good faith shall be observed. 2. Good faith means..absence of fraud or derelict. But in regard to the insurance contracts, UTMOST GOOD FAITH is required. This is because the insurer does not have the same status knowledge regarding the subject matter@f insurance, as the proposer for the insurance. 3. Insurer must deal with all claims fairly and expeditiously and be able to pay for the potential claims and the assured must disclose all information. 4. The assured must disclose to the insurer, before the contract is concluded, every material circumstance known to him. Every circumstance which would influence the insurers judgment in fixing the premium, or determining whether he would accept the risk or not. €g - it would be dishonest on the part of the assured if he does not disclose the fact that his 20 year old vessel had just failed her 5th special survey by a reputed classification society. 5. The assured's duty consists of two factors, i.e Disclosure & Representation. isclosure : A proposer must disclose to the insurer all material facts in regard to the proposed insurance, ) This duty applies not only to the material facts which he knows but also extends to material facts which he ought to know, v6) On the basis of this material facts, the underwriter will decide whether to accept the ta or not and will decide the premium rate accordingly. }) Disclosures must be made voluntarily by the assured, failure of which may cause the insurer to avoid the contract. Presentation : b Every material representation made by the assured or his agent during the negotiations for the contract and before the contract is concluded must be true.b) Representations are made in the form of questions by the insurer and answered by the assured. They enable the insurer in settling the premium and determining whether he can accept the risk. Every representation made so, before or during the negotiation of the contract must be true. If not the contract may be avoided by the insurer. ©) A representation may be a matter of fact, expectation or belief. If it is a matter of fact then it is substantially true. Ifit is a manner of expectation or belief, it is considered to be true and made in good faith. A representation may be withdrawn of corrected before concluding the contract. Aon disclosures are permitted under the following circumstances : . gu a Any circumstance as to which the information is waived by the insurer. vw) A Any Sapertiuo & cicumstances, e.g - Change of . Facts that reduce the risk, e.g- Extra fire protection systems installed by the assured, above normally required standards. =H Most le interest : 1. An insuraiie interest is one of the principles of marine insurance. Before entering into a marine insurance there must be SLexpeetto-acatire an insurable interest i being covered by the marine insurance. i.e - one must stand to loose by its loss or gain by its existence Eg. A ship incurs gain by its existence and loss if it sinks. “ 2. The subject matter of insurable interest must be a physical _object. exposed to the listed perils such as stranding, collision, and heavy weather. It does no include the ordinary action of wind and waves. _ 3. Insurable interest is an object of insurance which indemnifies_ the assured against loss arising from accidents that may happen, not in respect of events that must happen.“a If the assured has no insurable interest, then the policy is termed to be wagering or gaming.s.¢ ate 5. The insurable interest of and assured is limited to the amount which he actually stands to loose. a 6. In case of a claim in marine insurance, the insurable interest has to be Proved. s ¥ °) Indemnity : 1. The insurance contract is a contract of Indemnity. Such an insurance contract will make good a loss or damage in such a manner that financially Fesult of the loss. ie - the insure as he was if immediately before the loss. The principle of | Indemnity thus aims jims to pre prevent the insured “from making a profit out of his loss or gaining any benefit out of insurance. 2. Ships and cargoes are valued at the commencement of the risk, and the insurers use this value to determine the measure of indemnity payable to (> the assured. Thus in marine insurance the value of the subject matter insured may be different from the actual value at the time of loss, depending on how the market has gone since the policy was affected. The gain or,loss of the assured, due to the fluctuation of market value, will not oe affect what the insurer pays on the claim. Where the loss is 100 % the indemnity is also 100 % and if the loss is 50 %, the indemnity likewise is VY also 50 %. ) 1. Subrogation is, a principle of Marine Insurance. According to this principle, the assured cannot 1 eas loss from another party after the insurer has settled his claim. E.g - Whare the insurer has paid a goods owner's claim. the goods owner cannot, afterwards claim from the carrier, ibrogation :2. Instead the insurer who paid the claim subrogates or takes over _in respect of any claim agains!.a 3rd party. A\ damaged on board may then claim against the carrier én-hie-own-nae-and can retain any sum recovered up to the amount claimed. Anyexcuse-being-ropaid.ta-the-aseured— 3. Subrogation is the right of an insurer, after he pays for a loss, to assume the rights of the Insured to recover this loss From the SHORT NOTES : traded A.A Contract of marine insurance should be embodied in the policy in accordance with the act. aan 2. Policy may be valid either from the time the contract is concluded or afterwards. 3. The policy must specify the name of the assured, the subject matter insured and risks insured against, the voyage or period of both for which the policy is valid, the sum/sums insured, and names of the insurers, 4, The policy must be signed by or on behalf of the insurer. 5. The policy may be for a time or voyage or both. They maybe separately issued or issued as one policy. Time policy is valid only for 12 months,... 6. The nature and extent of the interest of the assured in the subject matter insured need not be specified in the policy. 7. The subject matter insured must be clearly designated. 8. The policy may be valued or unvalued. In a valued policy the agreed value of the subject matter insured is specified. It is fixed as agreed by the insurer and assured, In_ _an unyalued policy the value is subject'to the limit of sum insured,The value ascertained subsequently but before a loss occurs. 9. The policy may be a floating policy which describes the insurance in general terms and names / name of ships / ship and other particulars declared subsequently and endorsed in the policy, in order of despatch or shipment. Floating policies are made for goods or consignments.10. A policy may be constructed in the form of a schedule, with terms and conditions, premium payable and other above mentioned details. fo 1. A voyage policy generally defines the port of call for the vessel..|f the vessel deviates without a lawful excuse, the insure is discharged from liability as from the time of deviation, immaterial of the fact that the ship may have regained her route before any joss occurs. jation : 2. There is deviation whenever : \A) The route designated by the policy is departed from, vb) If no route is designated, the customary route is departed from, A) Where ports of discharge are not named or if named and are not mentioned in any particular order, the vessel must go to them in strict geographical order and failure to do 0 amounts to deviation, vd) The voyage must be completed with reasonable despatch and any unreasonable delay amounts to. deviation, — See eee e) Any deviation renders the policy null and void. Deviation or Delay is justified and excused when , Deviation or Deloy ts justified and excused when: "Li 1_Authorized by any special term of the policy. © ZiWinere caused by circumstances beyond the control of the master and employer. sh ., Reasonably necessary in order to comply with an express or impli 7 _ ess or imp A Reasonably necessary for the safety of the ship or subject 8 For the purpose of saving human life or for aiding a ship in distress where Human life < |“ may be in danger. ae _#. Reasonably soso the purpose of obtaining medical / surgical aid. ay tk Caused by barratroud/acts of master or crew, if barratry is an insured peril. AS-soon.as-the cause excusing deviation ceases to exist,.the ship must resume. her... normal voyage with reasonable despatch.Sirota Loss : - Total loss is in (2) types : \yActual Total loss & wrbonstructive Total loss Keual total loss: means loss or damage of entire property (physical total loss) which can occur in three ways : a) Alll property damaged, 6) Loss of Specie - all property so damaged as to cease to be a thing of the kind insured “ (cement damaged by water, becoming concrete), ./®) Insured irretrievably suffered of all property, even though property may not be destroyed. ee _Poratuctve total loss : means cost of repair or replacement exceeds policy limits ( commercial total loss ) . Insured may claim for a partial loss or abandon the property must be reasonably abandoned. Insurer is and claim a total loss, provided the property entitled to take over the property if desired. Note ~ Partial loss ig less than total amount of insurance offloss / damage has taken place only to some of the property. There is a Constructive total loss whenever : U4. The assured is deprived of the subject matter insured by a insured peril, and it is unlikely that the subject matter can be recovered or the cost of recovery would exceed its value after recovery, 2. The ship insured is so damaged that the cost of repairing exceeds the cost of the _ ship, \3 The goods are so damaged-that the cost.of repairing and forwarding them to their __ destination would exceed the value of the goods. In case of a CTL, the assured may, treat it as a PL and retain the subject matter or abandon it to the insurer and claim a oe sirens :~~ Warranty is a promise by the insured.that a specified state of affairs or conditions will continue exist for the duration of the policy. - A warranty does not have to be written in a particular set of words. - Warranty may be Express or Implied. Jioress Warranties : is the one which in or endorsed on the policy or included in a document incorporated by reference within the policy. ~ A policy may contain a clause "warranted not north of 70 deg north". If the said vessel proceeds north of 70 deg north, then the warranty is breached and the policy is null and void unless the breach is excused. = If the owner inform the insurer who may waive the warranty for an additional premium. ~ The institute time clauses provide shelf made clauses that can be inserted as express warranties. \stbreach of warranty may be excused : A Due to change of circumstances, so that the warranty is no longer applicable to the policy, \2-When a breach of warranty is excused b inderwriter. In such cases the assured may be required ‘additional premium. ~ Implied warranties are not written in the marine insurance policy but are implied by the law to exist in the contract . - They must be strictly complied with in the same way as the express warranties. ys ‘An express warranty will not override an implied warranty, unless they both conflict ~ There are (2) major implied warranties in a marine insurance policy covering _Seaworthiness and Legality. Examples of Implied warranties : A Beaworthiness - The vessel must be seaworthy at the commencement of voyage and at start of each stage of the voyage if conducted in'stages. Vessel must bereasonably fit in all respect to encounter ordinary perils of the insured voyage. After a loss, the onus is on to proye that the vessel was seaworthy. GIT host ty phew’ 2. Legality - Voyage must be lawful and so far as the insured can control, carried out in a lawful manner. Ifthe adventure is illegal at the time of effecting the policy, the policy is void. E.g- Drug running, gun running trips. Vian warranties : 1. Under institute warranties, the vessel is not warranted to go to certain areas during certain periods, with certain cargo during certain periods of the year. 2. The reason for the above being due to weather conditions like ice, heat conditions affecting the cargo due to its combustible nature etc. 3. The limits of positions and cargoes and times are detailed in this clause. E.g - Allantic coast of North America, its rivers or adjacent islands as prescribed in the clause. Reversible laydays : 1. A CP may state that the ship is to load and discharge at a given average rate. 2. In this case the laydays are said to be reversible. 3. This implies that the ship should complete both operations within a specified period of time. 4. The loading rate may be faster than the specified rate, and any tme saved at the load port may be used at the disport. \ 5. This clause is generally provided in the tanker and bulk cargo CP's.6. Itis important that the B/L is endorsed at the load port to show the time taken for loading, 7. In such a case, demurrage and despatch are calculated only after disport. ‘Slip : T 2. Since it is signed / scratched by the insurer, itis considered as a legal document. = Sonee_scratened. by the.ins etre Scratching a Slip : 1. Whenever the insurance company or insurer puts his signature and mé 2 of the risk he is willing to take in the insurable interest, itis called , scratching ot writing the line. See ofIr star of different industry. 185. mem! tries) Geneva - Headquarters & 40 branch offices # Adopted - Feb'2006__ # Applicable to ship's of 2 §00 GT and above and on International voyages. _ # India has not yet ratified. # Why was a new convention needed 7 1. It was felt that the very large number of the existing Maritime Ci dated and did not reflect working and Ii i wentions, were out board ships. 2. In 2004, a committee was set-up LILO to review and update the existing 40 Maritime Conventions and 28 Regulations which was delivered on 24th Feb! 2006 known as MLC’ 2006. 3. The MLC'2006 will become a legal instrument, once it enters into force, will be the “fourth pillar " of the International regulatory regime for quality shipping. The other three pillars are saySTCW;4) MARPOL J SOLAS. # The Convention does not apply to : As ips which navigate exclusively in inland waters, yin inland waters, ships engaged in fishing, & warships_ Convention is organized into (2) main parts 1 _Part'a’ Part + L Regulations & Standards Guidelines + a = J MANDATORY NOT MANDATORY These are integrated and organized into general areas of concern under (5) titles A Tite 4 : Minimum requirements for sea-farers to work on a ship. A Title 2: Con Title 3: Accommodation, recreational facili ions of employment. s, food and catering. ATitle 4 : Health protection, medical care, welfare and social security protection. Title 5 : Compliance and enforcements. # Certificate : Validity of this certificate is '5' years provided one intermediate inspection is carried out between the 2nd & 3rd anniversary dates. Interim Certificates valid for '6' months are issued for : LA) New delivery, vb) Change of Flag, & V 2. The new amendments prohibit the disposal of all kid of garbage at sea, ~ with the exemption under specific requirements, food waste, animal carcasses, cargo residues contained in wash water and environmental “friendly cleaning agents. 3. Generally, discharge is restricted to food wastes, identified cargo residues, animal carcasses and identified cleaning agents and additives in wash water are not harmful to the marine environ 4, According to the revised MARPOL AnnexV shipboardgarbage is to be grouped into the following categories :Y| V’ joraroune |Food waste comminuted Jottenore plattorms [Ships outside epeciat |ships within special —_| ("ore than 42 am Type of garbage arene Jarcas om fand) and at such platforms Discharge pormittod — | Dx permitted f2anm from me nearest [and on route and as far Jas piacucable Discharge J212 nen wom the nearest ana, en route and as tar |D/Scharge permitted [Food waste not VU [eomminuted or ground [Discharge permed [212 nm from ine nearest land. on route and as far Jas practicable Icargoresiaues' not 1 |sontained in wash water [Discharge parmitiog barge residues’ contained linwaah water }=12 nm trom the necrooy and ah route and as far fas pracicatte 212 rim tom the noarost land. or routs. as far a8 practicable and subject [two agsitional conatione’ 1 [Cleaning agente and ladditwee’ contained in Jearge hold wash water |sarpedien Beara a5 cor \voyane. land which died curing |Discharae pormited — | Jasvter rom tha nsarect ane as possible and en [Ati other garbage. meluding. |bags. incinerator lctinkers. cooking floating dunnage. tring jand packing matortals,. alastion, leyntotis ganas-fisning. Stic garbage. ashes. ‘on, Sui [Discharos permitted |=12 nm irom the nearest fiand. or: route. 26 far a [practicable anc subiect 1g fo asdiional conditions fyeren garbage is mixed wih or contaminatod by ather suasiances pronnted fron deenarge ornaing Jesquiremorts shall sepy Ciffereni discharge regLiroments, 1ne mare sir ngersfaster - Pilot relationshi ae of Pilot : As per the Indian Ports Act of 1908, the pilot is a person authorized by the government for a time being to pilot the vessel. Under the English MSA, pilot is defined as any person not belonging to the ship who has conduct thereof. Meaning of the word " Conduct " : A Court judgment of 1916 says " conduct "means in-charge . |,e full charge and entitled to all assistance he can get from the Master or Crew, he is in command. Conduct means to have charge and contol of navigation or... _the movement of the vessel. Jtis not a question of Qualification, profession, Certificate of License, but itis a fact of actually navigating a vessel. _Safe accesses must be provided for the pilot. Must provide appropriate and updated charts, look-out's, clean windows and operational CV Screen, It must be noted that if the Master can appoint a responsible officer on the bridge, he ‘can relieve himself. /Aiintormation the Master should give the Pilot on boarding his vessel : AC Ship's general particulars - length, breadth, depth, etc & Draught of the vessel, 3Vesse!'s present course and speed, compass error, if any, A. Current state of engines, \& Speed at respective revolutions at halt full slow! dead slow, \& Type of engine and propeller, bow thruster, if fitted, 4 Navigation equipment and aids, any error or faults in navigational aids, Yb. Bulbous bow (YIN) JA State of readiness of anchors, 4. Port of destination, Ao. Nature of cargo on board, A Radar status,44. VHF Channel guarded, JS Present position on chart and relevant passage details. Information the Pilot should give to the Master : A Limits of pilotage authority, VB pny local hazards or navigational warning in operation, rea on chart of reduced UKC, (4 Tugs intended for use - how many and where, AETA at berth and time period of distance of pilotage, VA Docking pilot required (YIN), 7. Junctions of high traffic density, A. Local weather forecast, AS Current, eddies and tidal information, x fo. Special code signals for pilots, if any, UAT Intentions to use anchors and location of safe anchorages, te V2. Contact number or VHF Channel in case of emergency, AS Contingency plan in case of breakdown, ACA Copy of local by-laws. 7 JS State the Master's safest course of action, in a compulsory pilotage area, if the Pilot is unable to continue his duties. - The safest course of action for the Master, in a compulsory area, if the Pilot is unable to continue his duties are J master relieves the Pilot and takes the CONN of the vessel, Jd Inform the Port Control Authority over the VHF or Phone, and request for a relief pilot,Master should proceed with caution to a safe anchorage or harbour or a position allocated by the pilot station so as not to impede the passage of other vessels, 4 Should the unlikely situation develop, a statement should be made in the log-book. Vvmatt jaster's standing orders in Restricted Visibility : +4 Reduce the vessel's speed in accordance with the COLREGS and proceed at a safe speed. v-S. Alladars to be operational and systematic plotting of targets commenced. \SThe Master should be informed of the state of visibility a8 soon as possible after reduced visibility is encountered. 4 Aessel to be put on manual steering mode. \& inform engine room of the state of visibility and maneuvering speed to be maintained until conditions have improved. \ Sound the prescribed fog signal in accordance with the Regulations. UAE listening watch to be maintained. f Post look-outs at winas and fonvardand astem, in addition to normal watch. +e Siteh on navigation tants throughout any peri 38 Consider on Contingency Plan. paired visibility. "se close all Watertight doors immediately Employ use of Echo-sounder.where appropriate. _JeWatchkesping staff to be doubled if restricted visibility persists.) A rtqages and Liens Mortgages Hf 1. Ship owners often take ae alae of ships. For this purpose, the lenders and the ship owners enter into.a contract giving the lender the right to realize the amount loaned by arrest and sale of the ship if and when the ship owner defaults in repayment on due dates. 2, Such agreements are called as "Mortgage Contracts”. 3. These mortgages will be noted on the Ship's Registry and by referring the Registry one can find out if there are loans outstanding against the ship, which means, they are easily recognizable or visible claims on the vessel, 4. They are usually created through written agreements duly recorded with the ship's registry. : wae ime Lien : 1. Maritime Lien means. right to a part of the property in question or a privileged claim upon a ship, aircraft or other maritime property in respect of services rendered to or jury caused by that property, 2. Maritime Lien once attached remains attached to the property travelling with it through changes of ownership. Example - Claims in salvage whereby the contractor has a maritime lien over the property, salved until the claims are paid, Aliases of ma ster and crews if not paid whereby they have a Maritime Lien over the ship.aa Lien: 1. This is defined as ari an to retain that which is in his belonging to another until certain demands to him, ( the person in possession) are satisfied. ~Example - The ship-owner has a possessory Lien over the cargo general average until the contribution by cargo interest have been paid. The holder of a maritime lien has a higher priority than any otherModal Transport 1, The Multimodal Transportation of Goods Act, 1993 was introduced tecfacilitate the exporters and give them a sense of security in transporting their goods. 2. The concept of daar ta door delivery, which is MULTIMODAL Transportation is all about, is catching up fast in international trade. 3. Reduction. of logistics castsis one of the important aspects of Multimodal Transportation, thereby reducing the overall cost to the exporter and making his products more competitive in the international market. 4. It is in this context that the Government of India thought it necessary tofmodify the rules and regulations governing Multimodal Transportation and enacted the Multimodal Transportation of Goods Act, 1993 based on the UNCTAD/ICC rules (United Nations Conference on Trade & Development ) which have gained widespread acceptance. 5. The Multimodal Transportation Act lays down the standard terms and conditions The Mulinedes ays cown the standard terms and conditions governing this activity. 6. Under the prowgion of the Act only those companies who are registered by the competent authority jwhich has been notified to be the Director General of Shipping, can carry out Multimodal Transportation. This requirement of registration has been imposed by the government to ensure that only such companies which have the necessary expertisg, infrastructure and financial capability are allowed to undertake Multimodal Transportation so that the interests of shippers are fully protected. 7. As per the MMTG Act three categories of companies are eligible to be registered as MTO's. They are : (shipping Companies, Freight Forwarding Companies & '3) Companies which do not fall in either of the above two categories. 8. In the case of Shipping Companies (which own and operate vessels) as well as Freight Forwarding Companies the_tur f.the last three. year Id bed Rs. 5 takhs or more to make them eligible for registration as MTO.9. In the case of a company falling under third category above, the Subscribed share _ ~ Capital of the company should be Rs.50 lakhs or more. In addition the applicant company should satisfy the following: a Submit a, certificate of turnover duly signed and issued by a Wet Aecountant within the meaning of C. A. Act, 1949, have offices/agents/representative in atleast two other countries. esata any property including live animals, containers, pallets or other such aticles of transport or packaging supplied by the consignorirespetive of whether such property is carried on or under deck. modal transport document - means a negotiable or non-negotiable document which can be replaced by electronic. data interchange messages, permitted by applicable law. itis @ document of title. atti - modal transport operator - means any person who - Conclu his behalf or through another person acting on his behalf, A: Acts_as principal _and_not as_an agent of the consigner, or consignee or carrier paling in the multi-modal transportation and who assumes res; iAvantag of Multi-Modal Transport Single transportation document, VE Reduction in over-all costs, Provides faster transit of goods, IK dC Reduced burden of documentation and formalities, only one party to deal with, Leonspares VE Delivery at door-step --Shipper Heed not to go to a seaport for taking the delivery. vt. Ware-housing saved, 8: Improvement in the quality of service, Packaging charges saved, 16. Assured transit time.a contents of multimodal transport document. -The multimodal transport document shall contain the following particulars, namely: We 7 pe-genscal natuce.ofthe,ceads. the-leading. marks necessary for identification of the goods, the character of the goods (including dangerous goods), number of packages or units and the gross weight and “quantity of the goods; __ Apparent condition of the goods: VAST The name and principal place of business of the multimodal transport Qperator; VG The name ofthe consignor; The place and date of taking charge of the goods by the multimodal “wWansport operator, un” The place of delivery of the goods; ( d uf The name of the consignee, is specified by the consignor; AF The date or the period of delivery ofthe goods atthe place of delivery x LAT” Whether it is negotiable or non-negotiable; _ WAN The place and date ofits issue; tk) Freight payable by the consignor or the consignee, as the case may be; 1p AY” The signature of the multimodal transport operator, or of a person duly x“ authorised by him: Ulett” The intended journey. route, modes of transport and places of transhipment, if known at the time of its issue; a ey Terms of shipmentand a statement that the document has been issued ‘subject to and in accordance with this Act; and we Any other garleust which the parties may agree to insert in the documentes of liability of multimodal transport operator. - The multimodal transport operator shall be liable for loss resulting from- very of.the. consignment and any consequential loss.or_ ing,fram_such delay, where such loss, damage or delay in delivery took while the consignment was in his charge: Provided that the multimodal transport operator shall not be liable if he proves that no fault or neglect on his part or that of his servants or agents had caused or contributed to such loss, damage or delay in delivery: Provided further that the multimodal transport operator shall not be liable for loss or damage arising out of delay in delivery unless the consignor had made a declaration of interest in timely delivery Which has been accepted by the multimodal transport operator. “delay in delivery" shall be deemed to occur when the consignment has not been delivered within the time expressly agreed upon or, in the absence of such agreement, within a reasonable time required by a diligent multimodal transport operator, having regard to the circumstances of the case, to effect the delivery of the Explanation. -Forthe purposes of _—this_—_ subsection, consignment. ce If the consignment has not been delivered within_ninety conseeutive days following the date of delivery expressly agreed Upon or the reasonable ‘time; the claimant may treat the consignment as lost. Koes of liability when the nature and value of the consignment have not been clared_and_stage of transport where loss or damage occurred Th ni known. (4) Where a multimodal transport operator becomes liable for any loss of, or damage to, any consignment, the nature and value whereof have not been declared by the consignor before such consignment has been taken in charge by the multimodal transport operator and the stage of transport at which such loss or damage occurred in not known, then the liability of he multimodal transport operator to pay compensation shall not exceed, ig Special Drawing Rights per kilogram of the gross weight at the wAsignment lost or _Gamaged or Special Drawing Rights per Package or unit Tost or damaged, whicheveris highéh. me 2soepg # 666 67 sof] Phy935% by Explanation. -For the purposes of this subsection, where @ container, Pallet or similar article of transport is loaded with more than one package ‘or unit, the packages or units enumerated in the multimodal transport document, as packed in such container, pallet or similar article of transport shall be deemed as packages or units. fotwithstanding anything contained in sub-section (1), if the multimodal Granceoteenon does not, according to the multimodal transport contract, Chincude ood: or-by inland he liability of the * multimodal transport operator shall _be limited to an amount not exceeding Bp Svecial Diawina Bichis nec slogram logram of the gross weight of the goods. Jost or damaged, Limits of liability when the nature and value of the consignment have not been declared and stage of transport where loss or damage occurred is known. - Where a multimodal transport operator becomes liable for any loss of, or damagé to, any consignment, the nature and value whereof have not been declared by the consignor before such consignment has been taken in charge by the multimodal transport operator and the stage of transport at which such loss or Ww Liability of the multimodal transport operator in case .of delay in delivery of goods under certain circumstances. -Where delay in delivery of the consignment occurs under any of the circumstances or any consequential loss or “damage arises from such delay, then, the liability of the multimodal transport operator shall be limited to the freight payable for the consignment so delayed.Loss of right of multimodal transport operator to fimit liability. - The multimodal transport operator shall not be entitled to the benefit of limitation of liability under any of the provisions of this Chapter if it is proved that the loss, damage or delay in delivery of consignment resulted from an act or emission of the multimodal transport operator with intent to cause such loss, damage or delay or recklessly and with knowledge that such loss, damage or delay would probably result. A Limit of liability of multimodal transport operator for total loss of goods. The _-Multimodal.transpott. operator shall not ‘Greater than the liability for total loss. af goo to make a claim against him under the provi Wr Nati of loss of or damage to goods. - mn “The delivery of the consignment to the consignee by the multimodal transport operator shall be treated, 2s prima facie evidence of delivery of the goods as described in the mulfmodal transport document unless notice of the general nature of loss of, or damage to, the goods is given, in writ signee to the multi time handing over.of the goods.to, the.cansignee, oH eT Where the loss or dama is not apparent, the provisions of sub-section (1) shall apply unless notice otice In writing jven by the consignee of the loss ‘or .damage-to,, the- ooods uilhin sis conseculve- dave afar the Gay when the goods were handed over to the consignee. eeatecuettectet toe ctdsrestt ECPI ttMultiple Load-lines : Borpose : They are used when, for a period of time the vessel has to operate temporarily with a greater freeboard in accordance with the International Load-Line a greater freeboard in accordance with regulations. number of ports have special requirements for maximt and lip’s calling at them... RO 1. At the owner's request, the recognized organization may proceed to issue the additional load-line certificate. 2. The load-tine marks corresponding to the assigned freeboard shall be welded on the ship side and verified by the attending Surveyor. 3. The load-ine marks corresponding to the additional certificate shall be cut or ‘engraved on the ship side... 4. Only (4) set of load-line marks and the corresponding certificate shall be in use at any onetime.“ A 5. The Statutory Certificate shall reflect the maximum deadweight. corresponding to the vesséi's assigned freeboard, 6. On owner's request, the change of freeboard by a Surveyor from the recognized organization must supervise that the associated marks are painted and the old marks are removed. 7. The certificate pertaining to the unused mark shall be placed in a sealed envelope by the Surveyor and left in the custody of the Master. 8. In circumstances, where the Surveyor is not available, the change of load-line and certification may be carried out by the master, provided that arrangements for erification is arranged at the next port and has been agreed with the recognized “rganization. 9. Master shall make an entry in the official log-book and deck log-book on every occasion, that the loadTine are clianged. ae 10. Procedure for change in load-line shell be Included in the vessel's safety management system, ee eee ener 11. When sailing at a reduced dead-weight, there shall be no reduction in the safety standards.AE. During f the dead-weight at that time, the vessel's shall be surveyed for compliance with the statutory requirements applicable to the Taxinium dead-weight.... 1. Upon satisfactory completion of survey, the attending Surveyor shall endorse all the loadine certficate's. e.g - On Oil tankers, Gas Carrier's, Chemical carriers.Mos Wreck Removal Convention - Adopted on 18th May 2007, = Will come into force on 14th April 2015. - It applies to EEZ and if no EEZ than 200.NM from the base-line ~ Applies to any sunken ship or a ship about to sink or any object from a ship which has _ sunk, stranded or adrift and poses a danger to navigation, oe - All the parties and the states to take reasonable measures for removal of the wreck. = Master and the operator jf. feport must have : bliged to.repart any casually resulting in a wreck, such \-4fName and principle place of business of the registered owner, .“6) All other necessary information : #- Location, ype, Size and construction of the wreck, ture of damage and condition of wreck, Nature and Quantity of cargo wt The affected state shall inform all 2. The affected state navigation— ~5. The ship-owner if liable for the cost of locating, marking and removing the wreck, unless the Sipouner ‘can prove that.itis caused by tees “a ‘the government in.not maintaining the navigational marks, far, Hostilities, Civil war, Natural phenomena of exceptional or inevitable ithe damage is caused by the third party wil A AGS Ships of 300, GT-and offshore installations snust. maintain a cover as per Limits of 4 Liability Convention, 1976. Z Pee FF . It is a strict liability. , sh V6. Action has to be brought within.'3' years but not later than '6' years. ¥ as 7. This convention does not apply to war-ships, government ship used for non-profitable opsrations PEeeEeeEre EEE PPEue per Merchant Shipping Act, 1958 : in the sea or in tidal water or on the shores _ \-€/Goods which have been cast into the sea and then sunk and remained underwater. cD camel have been gast or fell nto the sea and remained floating on the surface, _ © i but are attached to a floating obiect in order that they may be found again... Goods which are thrown, away or abandoned & wh ek vessel abandoned without the, i 1e oF int torecover._al Shipping Board 1. It is an Advisory body to the Central Government. nt 2.ttisa permanent statutory body. 3. Its.main function is to advise the Central Government, on matters related to Indian shipping including the development thereof and on such other matters arising out of MSA 1958 Act of the Central Government. 4. Constitution : ‘6 members elected by Parliament, i.e "4" by 'Lok Sabha’. 8. '2' by ‘Rajya Sabha’_ 5. Such members of other members, not exceeding ‘16',as the Central Government may think fit to appoint the board to represent : Central Govern 1S hip owners, &¥€) Seaman....... ( Provided that these should be equal) i) Such other interests, (as the Central Government feels to be on the board) 8. The Central Government shall nominate one (1) of the board_to be the Chairman of the board. ae 5&7. The board shall have the power to regulate its own procedure. Organizational Set WPS to Chairman t Antember Secretary, N B. - 1 V-BDG, Directorate General of Shipping, Mumbai nt Assistant DG L Arectrica Assistant> Note of Protest otis adeclasatiamaincer.the cath.by the master of circumstances beyond his _ _control which may give, he may have given rise to loss or damage to his ship or its cargo “erhave caused him. “owners liable for legal action by.another party". 1. Protests have to be made before a rotary public,.magistrate..consularofficerorother Buthority without delay and in any. case within 24 brs of arrival in.port.. 2. At the time of noting protest the master should reserve the right of extending it to cover for other unforeseeable cir 3. Protest for cargo damage should be made before starting to unload. normally companies have a special form for noting protests although it is noi a requirement by any regulations. +z 4. On Owners instruction, the original may be forwarded to the party concerned and «A. certified copies to be sent to the owner and kept on board. fete, 5. Note of protest should be noted at each discharging port and not just for the first port _of call as cargo for more than one port may be involved... , oa isable to note protest following circumstances : L*/Aiter every case of GA. AE. Aster wi ease andlor sea condons have been encountered. wich may have been Cauted cargo. . After wind ‘e sea conditions have been encountered which causéd failure to y /K After_cargo is shipped in a condition likely to voyage. (BIL to be claused accordingly after consul iorate during the forth-comit with the shipper and SC V6 Altera serous beach ofthe CP by the charterer or his agent w f sort allowed by the CP, Because of clausing by undue delay, refusal to load, cargo demurageetusal to accept BIL “afler vessel to an unsafe port, etc ) , A After a ship has been damaged for any cause,Korner the consignee fails to discharge or_take delivery of the cargo or fails to pa _fright, Paree cree cee cere sacar for Noting Protest : 7 Before a not or consul or ap authorized lawyer or magistrate, or a registrar consul of a mod Myer or magistrate, aon. of protest§ which may be produced in cout 2. The master accompanied by one or more witnesses from the crew who have knowledge of the facts, should take with him to the notary public's office, the OLB and ll other relevant information surrounding the case. Log entries will, ‘report.ae of Refuge ~ A port of Refuge is a port or Place that the vessel diverts to when her master considers ~it is unsafe to continue the voyage due fo peg] that threatens the " safety’..¢.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 prvetlon trom|Pert of p involved in a it will usually constitute a general average act and the y.at the port of refuge in general average _ Inform the agents in the port of refuge, the ship's requirements (spares, bunkers, etc, if the vessel has shitting cargo, vessel may require stevedores and barges etc. - Record ship's position, Keep accurate records of all events and expenditure. VS inform the agent to intimate the port authority, pilot, P & | Club surveyor, Immigration, _ Customs, Port health.ete: sae ~W'4, Salvor to be given salvor's security, A Obtain health clearances... > Xi6cEnter the vessel "under average” 3 aot average’ A fter safe artval in port inform over and charterer, who will declare general \& Note protest as soon as possible. WS Notify insurance a jent if th 7 potty Insurance age 0, Nott is hull and machinery damage. ' y Classification society. 14. cargo damage is suspected, inform P & | Club, 32 (It the voyage is terminated, GA bond and GA Guarantee are to be provided. A. Arrange cargo discharge, trans-shipment or ware-housing of cargo.- The Class Surveyor will inspect the damage area and will recommend repairs. For this, the cargo may have to be shifted, stages may be rigged inside and outside and in some cases vessel may require dry- - The tender document is prepared in two parts. First part is for the technical bid and the second part is for, the price hic..In the technical bid part, the repairing workshop shows : wt Eligibility to repair, ampetonce to repair, & Proper facilities at the workshop to repair by providing evidences of previous experiences of similar repairs... - For preparing the price bid, the workshop representative will visit the ship and inspect the sight of repair. By particular time and date the tendered document will be submitted ° to the ship. > The technical bid will open first and the competent workshop will be shortlisted. The -.The contract of repairs will then be signed with the selected workshop.,The contractor should include g demurrage clause in,which the daily rate of demurrage and pr “should be stated. The recommended repairs will then be carried out under the - On satisfactory completion of the repairs the class surveyor will issue an “Interim Certificate of Class" to await the final certificate. ~The disbursement of port is paid through the agent aft. + Copies of all documents will be transmitted to the owner and the, vessel will obtain port “Clearance, procééd out to Sea and resume the course, - Make appropriate Jog book entries.Preparation For A Load Line Survey Particulars relating to the conditions of assignment can be found in a form, commonly known as the Load line record Which is carried on board. The Chief Officer should study the carefully to ensure that all the appropriate particulars have been incorporated into the Planned Maintenance schedule. ‘The detailed preparations should commence three months before the expected date of survey. Check that all access openings at ends of enclosed structures are in good condition. All dogs, clafnips and hinges should be free and well greased. All gaskets and water tight seals should be crack free. Ensure that the doors open from both sides. WF. Check all cargo hatches and ac devices such as cleats and wedges. holds for water tightness especially battening a Check the efficiency and securing of portable beams. pa hei “if portable wooden hatch covers are used, check that they are in good condition and that the steel binding bands are well secured. eit Jarpaulins are used atleast twa,should be provided for each hatch. The tarpaulins must be in good condition, waterproof, of ample strength and an approved material. 6. Hatches which are closed by portable covers and made weather-tight by tarpaulins must have a steel locking bar across each section. Covers more than 1.5 m in length must be secured with two locking bars. VC inspect all machinery space openings on exposed decks. 4. Check that any manholes and flush scuttles are capable of being made water-tight. 9. Check that all ventilator openings are provided with efficient weatheright closing _ appliances and Fepair any defects Oa AlLgipnines must.be. provided with permanently attached satisfactory means for dosing openings. At Inspect _any cargo ports below the freeboard deck and ensure that all of them are “watertightte Ensure that the non retum valves. rd discharge are operating in a satisfactory manner. p> 13. Side scuttles, below the freeboard deck or to spaces within enclosed superstructures must have efficient internal watertight deadlights. Inspect the deadiight ‘rubbers’. 14. Check that all freeing ports are in a satisfactory condition e.g. shutters are not x jammed, hinges are free and that pins are of non corroding material. Check that any ha appliances, if fitted, work correctly. AS pagar cay oe ae 2 and bulwarks should be in satisfactory condition, e.g, all fractured _ rails should be re-welded, 7& 16. Ifthe lines are required to be fitted in certain areas, rig the lines and overhaul as necessary. 17_De-rust and paint the deck jing, load line mark, load lines and the drau brief ensure that the ful. is water-tight below the freeboard deck and watertight above. “the surveyar's 's. inspection. _Showthat-the-vessel_can be loaded and ball areas which surveyor may want to inspect e.g. store cea . Sufficient men should be “available for work such as opening cargo hatches, and ladders and stages should be, to view the load line hahhaALVAGE Definition : Under the court of law, Salvage means the services which saves or helps % to save a recognized object of salvage, when in danger provided the service is voluntary. or voluntary act which is done by a person / persons or by a ship to save a _ VA A Property which is in danger or perceived danger. ~ In 1989,.a.new. Convention called the "| ‘al Convention on Salvage" was adopted. - Examples of Salvage are : ACTowing a helpless vessel in port, 2. Refloating a stranded or sunken vessel, 3: Recovery of cargo from a damaged / sunken vessel, Extinguishing fire on board, V6. Measures taken to keep a sinking vessel afloat, we “Folding or removing a vessel adrift from its moorings, “nitiating, procuring or bringing assistance to a distressed vessel etc = Salvage is of (2) types : vf Pure Salvage - No Cure No Pay. Salvers are volunteers. After arbitration, an award is paid. ph Contract Salvage - Terms and Conditions are defined. Cassai points : 1. The salvage service must be rendered voluntarily. In other words, it should not be a part of a pre-existing duty or contract. For eg. - the crew or the pilot of a ship in distress or the owner, master or crew of a tug under contract to tow a ship cannot claim salvage remuneration as they have not acted voluntarily and also beyond the scope of their duty. 2. The subject of salvage must be endangered i.e. those who claim for salvage must establish that the property was in danger when the services were rendered. 3. The services must be a subject of recognized maritime interest. e.g - ship, cargo, life, freight etc. 4. The service must be successful. The right to salvage and remuneration is based on the principle of No Cure No Pay. In other words, no salvage claim can be maintained, unless the maritime property is in danger and at least some part of it saved. 5. The salvage remuneration is paid out of the value of the property preserved to its owners. tion was the principle of ‘NO CURE NO PAY‘ as applicable to LOF 1995, been affected by the new Convention? 1. Under the 1989 Convention, the main salvage award is still based on the principle NO ea PAT bat te aati lake nt accounts kl and eflos fhe sal in. ‘traditional factors of salved value, danger, out of, poskel xp expenses, s aes areas de Skill: 2. This basic no cure no pay award is dealt with under article 13. Ifthe savor falls. eam the award as per article 13, a safety net has been intrédticed, under which he will _be entitled for special compensation on untfer article 1oo 13 - Criteria for fixing the reward 1. The reward shall be fixed with a view to encouraging salvage operations, taking into account the following criteria without regard to the order in which they are presented below: whe salved value of the vessel and other property; ine skill and efforts of the salvors in preventing or minimizing damage to the environment; (grhe measure of success obtained by the salvor; he #5) the skill and efforts of the salvors in salving the vessel, other property and life; othe time used and expenses and losses incurred by the salvars:. Uh the risk of liability and other risks run by the salvors or thelr, equipment; “vine 2 prompiness of the services rendered; At the availability and use of vessels or other equipment intended for salvage operations; ture and degree of the danger; . “Pithe state of readin: i 's equi d the value _ _thereof_— 2, Payment of a reward fixed according to paragraph 1 shall be made by all of the. vessel and other property int interests in proportion to their respective salved values. ational Igwrprovide that the payment oe rd subject to a right 6f recourse o r their respective shares. Nothing’in tis rteticle 14 - Special compensation 1. If the salvor has carried out itself or its cargo threatened da ge operations in respect of a vessel which by ge to the jled to earn a Faroe eo TE to special compensation from the owner of that vessel equival is expenses as herein defined. 2. If, in the circumstances set out in paragraph 1, the salvor by his salvage operations has prevented or minimized damage.to the environment, the special compensation payable by the owner to the salvor under paragraph 1 may be increased up to a maximum of 30% of the expenses incurred by the salvor. However, the tribunal, if it deems it fair and just to do so and bearing in mind the relevant criteria set out in article 13, paragraph 1, may increase such special compensation further, hut in no event shall the total increase be more than 100% of the expenses incurred by the salvor.. alSatvor's expe trantr2means the out-of. Peper sine essen neared y the salvor in n the salvage operation and a and a fair rate for equi reasonably used in the salvage 4. The total special compensation under this article shall be paid only if and to the extent that such compensation is greater than any reward recoverable by the salvor under article 13. aa 5. If the salvor has been negligent and has thereby failed to prevent or minimize damage to the environment, he may be deprived of the whole or part of any special compensation due under this article.y ria and Duties of a Salvor as per International Salvage Convention, 1989 ? / Patties of Salvor : - The salvor owe a duty to the owner of the vessel or other property in danger 1. To carry out the salvage operation with due care, 2. To prevent or minimize any damage to the environment when carrying out his salvage duties. 3. To seek assistance from other salvors whenever the circumstances require, 4. To accept the intervention of other salvors when required by the owner or master of the vessel or property in danger. 5. The amount of his reward shalll not be pre-judiced should it be found that such a reason was unreasonable. te hts of Salvor : 1. Salvage operations which have had a useful result will give rise to a reward as per the 'NO CURE NO PAY‘ principle, except where the SCOPIC is payable. 2. The salvor's rights ar vessel. © 3. The reward due will be fixed with a view of encouraging salvage operations taking into account the following criteria : jot affected when he owns. both the salving-and the salved a) The salved value of the vessel and other property, b) The skill and efforts of the salvors in preventing or minimizing damage to the environment, c) The measure of success obtained by the salvor, 4d) The skill and efforts of the salvor in saving the vessel, other property and life. e) The nature and degree of danger, f) The time used and expenses and losses incurred by the salvors, 9) The risk of liability and other risks run by salvors or their equipment,h) The promptness of the services rendered, i) The availability and use of vessels or other equipment intended for a salvage operation, j) The state of readiness and efficiency of the salvor’s equipment and the value thereof. 6. Payment of reward will be made by the vessel and other property interests in proportion to their respective salved values. 7. The rewards exclusive of any interest or legal costs, will not exceed the salved value of the vessel and other property. ities of the owner and master of the vessel or the owner of other V property in danger shall owe a duty to salvor : ) to co-operate fully with him during the course of the salvage operations, b) in doing so, to exercise due care to prevent or minimize damage to the environment & ¢) when the vessel or other property has been brought to a place of safety, to accept re- delivery when reasonably requested by the salvor to do so.vA d's Open Form (LOF: 1. Itis the most commonly used contract for Salvage. 2. Itis designed to encourage instant action to save ships and cargoes, by avoiding delays that might otherwise arise from commercial haggling. 3. The salvor can get on with the job and the LOF ( the contract) will make sure that he will get a fair remuneration at the end of the salvage operation. 4. Ibe salvage award is.a, proportion of the value of the salved property (ship and cargo) &ppointed from a panel of "Lloyd's Salvage Arbitrators”. He applies an Internationally “accepted set of criteria (The articles of the Salvage Convention 1989) in order to assess the award. Some of the criteria are as follows : ay Degree of danger, 1/6 Value of the vessel and other property salved, ) Skill and efforts taken by the salvor to prevent or minimize damage to the environment, a vG Level of services provided, \-8) The measure of success obtained by the salvor, Vf The time used and expenses and losses incurred by the salvor, come promptness of the services rendered, fi) The risk of liablity and othefrisks run by the salvor's or their equipment, Ui the availability and use of vessel's or other.equipments used for the salvage operation, Ay The state of readiness and efficiency of the salvor's equipnient and the value thereof, Ay The salvor's long term investment in tugs and other vessel's and equipment which may be required in frequently. 5. LOF was adopted in 1982, since then it has undergone 10 revisions and the current version is LOF 2011 : az6. The LOF contract is designed to encourage instant action to save ships and cargoes, by avoiding delays that might otherwise arise from commercial hagging. 7. Introduction of "safety net” : Before, the principle used for reward was strictly"no cure no pay”. The safety net guranteed that the salvor's expenses would be paid in the event that the value of the salved property was insufficient to provide for normal salvage ‘award. In addition, the salvor may receive an increment of up to a maximum of 15% of his expenses. 8. Introduction of "Special Compensation” in the Salvage Convention’ 1989: ~The Salvage Convention, 1989 (Article 14) introduced a new incentive scheme known as ‘Special Compensation’. This compensation is payable by the ship-owner when the salvor had avoided or minimized damage to the environment, but the salved property is. insufficient to provide a normal salvage award. But this increment should not exceed beyond 100% of the expenses. 9. Introduction of SCOPIC : ‘There were some difficulties in assessing the amount due under Article - 14. As a result, an alternative system for assessing special compensation remuneration known as 'SCOPIC' introduced and agreed by all the parties concerned. (Salvor's, P & I Clubs, Underwriters etc...), Under SCOPIC there is no geographical restriction to the existence of a pollution threat.” preter 10. Benefits of using Lloyd's Open Form (LOF): a) It can be agreed to by radio, b) There is no need to haggle over the terms - they are fixed, c) Any reward is determined by Lloyd's Arbitrators after the salvage service, 4) The salvor gets and interim reward pending final settlement, e) Basically it is a 'NO CURE NO PAY" contract. f) The salvor can obtain ‘Special Compensation’ for preventing or minimizing harm to the environment, 9) The agreement or Arbitration there under is governed by the English Law, including the English Law of Salvage.Advantages to Salvor and Owner of using LOF : - The LOF has achieved a high and justified degree of popularity and reliability as it has inherent advantages for the Salvor as well as the Owner of the property. - The advantages of using the LOF for the Salvor are : BI He retains his right of lien, i eration is referable to Arbitration and he does not have to resort to court can-Be expensive and time consuming, "~~~" There is a provision for Special Compensation if the Salvor fails to carry out the Salvage but has Been difgent and prevented damage to the enviranment during the Salvage oper

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