CBT 3 – Vetting Inspections

1. CBT 3 – Vetting Inspections

2. Course Format Course is made up of this PowerPoint presentation and accompanied by the small questionnaire next to you! Advance through the slideshow as you need by hitting the “ENTER” key on your keyboard! You should be able to complete within 2 hours

3. Check on yourself Please read the questionnaire and answer the questions to your best knowledge without consulting this presentation or an instructor. Be fair to yourself! Complete it (not more than 8-10 minutes), turn it around and continue here.

4. Course Contents • Introduction, History & Purpose of Vetting Inspections(slide 5) • Different Organizations involved in Vetting Inspections and Company/Shipboard Administration (Slide 14) 3. Preparing and conducting an Inspection(slide 39) 4. Useful tips for an Inspection(slide 98)

5. 1. Introduction Purpose of Vetting Inspections TO ELIMINATE RISK & TO PROMOTE SAFETY & PREVENT POLLUTION FROM TANKERS

6. Vetting ??? By definition, “vetting” means to make a thorough inspection of… • In the shipping industry, it is the potential charterer making a thorough inspection of your ship with a view to chartering (hiring) it, based on the results of the inspection; • Vetting Inspections reports are now available to Port State Control through the SIRE or CDI databases.

7. History of Vetting Inspections • During 1970’s and early 80’s, major oil companies sold many of their aging vessels; • They became more reliant on chartered tonnage to move increasing quantities of oil, chemicals and gas; • This exposed them to risks associated with sub standard ships and different standards of onboard management.

8. Why carry outVetting Inspections • Because they no longer had any operational control over the vessel, oil companies quickly realized that there was a significant risk in hiring such ships; • No control with respect to the overall condition, operating standards, training and welfare of the crew onboard; • Their solution was to inspect a sample of their chartered tonnage.

9. Getting Organized • This was partly successful but after Exxon Valdez and Sea Empress groundings; • A formal inspection system was established in conjunction with the OCIMF using the SIRE database.

10. No Approval  No Hire • So, in order to carry a cargo, it is now a requirement that the vessel is approved by the company chartering the vessel. • Either by physical inspection or by reference to a database inspection report.

11. Differing Inspection Standards • However, different oil companies focused on different areas of shipboard operations and had very different ideas of what they considered “acceptable”; • This in turn led to problems for the shipowners/managers who were trying maintain compliance with many differing standards.

12. Standardizing the Vetting Inspection • Gradually under the OCIMF and the European Chemical Industry Council; • Standard criteria for inspection and reporting were established; • These are known today as OCIMF/SIRE and CDI vettings.

13. Assessment Criteria • The vessel screening process may include criteria such as: - • VPQ & OCIMF VIQ or CDI SIR; • Class Society; • Flag & Age of the vessel; • Previous PSC reports; • Terminal reports on file; • Owner rating; • Past incident record; • General public information - newspaper, class reports, Lloyds List, etc.

14. 2. Different Organizations Involved in Vetting There are different organizations involved in a Vetting Inspection; We will now take a look at some of the different organizations involved.

15. Ship Management Company The organization responsible for operating and maintaining the ship to the required standards.

16. Charterer Usually an oil company; Involved in the transportation of oil, chemicals or gas; Charterer’s decide on what basis the ship will be inspected.

17. OCIMF Oil Companies International Maritime Forum; Primary objective is the promotion of safety and pollution prevention from tankers and terminals.

18. OCIMF • Members are mostly oil companies and those companies with large interest in the safe transportation of oil, chemicals or gas. • Presently there are 20 members who submit reports to SIRE and 80 companies who have access to the SIRE reports; & • Responsible for standardizing and publishing the documents used for information gathering, the Vessel Particulars Questionnaire (VPQ) and the Vessel Inspection Questionnaire (VIQ).

19. VPQ • Vessel Particulars Questionnaire; • Contains all basic information about the vessel, owners, managers, crewing agents, crew complement, nationality of crew, etc. • Also contains information of a permanent nature such as physical dimensions and tank capacities.

20. VPQ • Inspection organizations have declared that: - • “If a VPQ is not available in the SIRE database AND onboard the vessel, they will not inspect the vessel.” • Therefore your ship will never be “approved”; • It is the ship’s responsibility tokeep the VPQ up to date; & • An updated edition of VPQ must always be sent to the Company, in the case of Hanseatic, to the QMS Dept.

21. OCIMF VIQ The Vessel Inspection Questionnaire ensures that any OCIMF member inspecting a tanker and submitting a report to SIRE does so using a consistent format acceptable to other members; The VIQ addresses questions regarding certification, crew management, navigation, cargo handling, mooring, engineroom, steering gear and other aspects associated with safety and pollution prevention; OCIMF inspections usually take place when the vessel is “fully operational” - loading or preferably when discharging cargo.

22. Vessel Assessment - OCIMF • In the case of an OCIMF Oil Major inspection, the CHARTERERS will decide whether or not the vessel is acceptable based on their own criteria; • A message informing the result will then be sent to the Company; • The Charterer’s will then place their inspection report in the SIRE database. The report sent to SIRE does not include any acceptability rating.

23. SIRE Ship Inspection Report programme; & It is a readily accessible pool of technical information concerning the condition, operational procedures and physical details of tanker vessels.

24. SIRE SIRE allows an OCIMF member to access data regarding a vessel and make a decision on the vessel’s suitability without actually inspecting the vessel; This greatly reduces the burden the ship’s staff and prevents wasting the limited resources of qualified inspectors; Data maybe accessed by potential charterers as well as other organizations and governmental bodies (Port State Control) having a direct and common interest in tanker safety.

25. CDI Chemical Distribution Institute; Independent organization administering and inspection scheme for chemical and gas tankers; Often used by major oil companies to complement the SIRE database.

26. CDI Does not employ inspectors, initiate inspections or make judgments on the inspection reports; Companies requiring to make a CDI inspection hire an independent inspector, trained and approved by CDI; CDI Inspections are based on a CDI approved questionnaire that now contains approx 850 questions.

27. CDI Inspections can also carried out on new buildings when the vessel is not “fully” operational, e.g. cargo plant not in operation, no cargo onboard or untested; Completed inspection reports are lodged directly into an active database, where they remain for 13 months, after which they are archived.

28. CDI VPQ Must be completed and sent to the Company (HSC QMS) as soon as possible; Must be kept updated and revisions advised to the Company; Without a valid CDI VPQ on the database, any inspection report will NOT be released for other participants to look at, assess and “approve” vessels; The Company must therefore always have a copy of the latest CDI VPQ from the vessel.

29. CDI SIR The CDI Ship Inspection Report has “self assessment” sections that MUST be completed by the vessel; These sections are shaded for easy identification; By completing the self assessment sections, it reduces the time the inspector will need to complete his inspection; HOWEVER he may make a spot check on these items.

30. Vessel Assessment - CDI • In the case of a CDI inspection, the inspecting organization directly lodges their report + any Company response directly into the CDI database; • As with SIRE, the CDI report does not contain any acceptability rating; • Individual charterers accessing the report will make their own decision based on the inspection report.

31. Terminal Inspection • Some oil companies may also carry out “terminal inspections”; • Different to Vettings as usually unannounced and completed using a terminal’s own checklist; • However, these inspections are just as important as a vessel may risk losing it’s “approval status” if negative comments are passed back to the oil major’s vetting department.

32. Port State Control (PSC) Inspections • During the 1980’s, under the IMO, the Port State Control (PSC) was established; • Non commercial inspections designed to detect and detain sub standard ships - those that pose the greatest risk;

33. Port State Control Inspections • Inspections are carried out by the country in which the port is located. • There are various Memorandums of Understanding (MoU) between the countries; • Objective is to once again attempt to standardize the inspections being carried out.

34. Port State Control Inspections • Inspections are carried out in accordance with the control provisions of IMO conventions: - • SOLAS; • MARPOL; • STCW; & • ILO 147 Convention

35. Inspection Format • For PSC, the inspection format varies; • Is the US, the coastguard uses a risk based targeting system; • Vessels are evaluated on 5 factors that impact on safety: - • Owner; • Flag State (Registry); • Class Society; • Boarding & Casualty History; & • Ship type.

36. US Coastguard • Oil, gas and chemical tankers in the US are required to be inspected annually; • Upon compliance, oil and product tankers are issued a Tank Vessel Examination Letter (TVEL); & • Chemical and gas tankers are issued a Letter of Compliance (LOC).

37. Inspection Results • A Port State Control Inspector has the power to detain a vessel until noted deficiencies are rectified; • Vessel maybe permitted to sail with minor deficiencies, future inspections will check for rectification.

38. The Future? • Who knows, may be one day, all inspections will be standardized and accepted by the different organizations involved; • Until then, we must maintain our ships in a condition that meets the requirements of the strictest inspection standards.

39. 3. - Preparation for an Inspection • General Preparations; & • Detailed Requirements;

40. General • Any inspection can only be successful if the vessel is properly prepared; • Inspectors begin collecting impressions from when they first see the vessel; • The inspection continues until he steps off the gangway; • Most inspectors are former seagoing Officers and therefore have both inspection and seagoing experience.

41. The 6 P’s Planning, Preparation &Practice Prevent PoorPerformance

42. Initial Notification • Majority of vetting inspections are initiated by theowners or shipmanagers; • Anniversary of existing approval maybe approaching therefore re-inspection must be made; • Vessel always notified in advance; • In reality, maybe only 1 or 2 days in advance; • Inspection may also be canceled at short notice if appointed inspector’s workload is excessive.

43. Vessel Notification • Sent in advance by telex, fax or email; • Type of inspection (CDI or OCIMF) will be confirmed; • If known, Company will advise name(s) of inspector(s); • Vessel must always verify that the inspector that boards the vessel is the one stated in the notification.

44. Postponement Request • The Master can request a postponement of the inspection for the following reasons: - • Large number of officers and key ratings changing over; & • If more than one inspection scheduled to take place at the same time - some oil majors will not attend in such cases. • Master’s postponement request must be made to the Company and not to the inspection organization.

45. Timing • Schedule the inspection for a convenient time; • Inspection must not conflict with other shipboard operations; • Liaise with local agent, he will advise the inspector at what time he should board the vessel; • Ensure that all crew are aware of planned arrangements, especially the gangway watch.

46. First Impressions • As the saying goes “First Impressions Last”; • The inspector’s first impressions are formed between the gangway and the Master’s cabin or ship’s office - never underestimate this route; • Although subjective at this point, the whole inspection is spent looking for objective evidence to support the inspector’s initial opinion; • We never get a second chance to make a good impression.

47. Self Assessment • Each Dept Head must complete his own monthly inspection (refer HSC Directive DIR/011/SH/01; • Objective is to highlight deficiencies ahead of vetting inspections; • Senior Officers MUST prepare a self assessment checklist covering the main areas of responsibility; • Make use of the OCIMF or CDI checklist of questions that is provided onboard your vessel.

48. Past Inspection Results • Results of past inspections are a good indicator of areas where improvements are required; • Past inspection reports should be available onboard; • Review deficiencies from past inspections and ensure that corrective action has been taken; • Annually, HSC also produces an analysis of all vetting inspection findings for our full management fleet - read this and learn from our experiences.

49. Help from Hanseatic • To help vessels prepare, the following documents are provided to the vessels: - • OCIMF VIQ (on CD); • OCIMF VPQ (CD & printed copy); • CDI SIR Gas/Chemical (CD & printed copy); • CDI VPQ (CD & printed copy); • ExxonMobil - Min Safety Criteria (on CD); • HSC cross reference guide to CDI Gas/Chemical SIR (printed); • HSC Preparing for an Oil Major Inspection (printed copy based on OCIMF/VIQ); & • HSC Analyses of previous years’ inspection findings.

50. Self Assessment • Suggested Format: - • Master • Ship’s Particulars/VPQ; • Certificates/Documentation; • Personnel (licenses / certificates); • Emergency Contingency Plans (see OPCP); • Work/Rest Hours; • Training Records; • Master’s Review; & • Communications.