Past Exam Questions

Question 1

‘The ISPS code was not designed to protect ships from threats in ports, but was designed to protect ports from threats posed by ships. Discuss the validity of this statement.’ Answer in the format of a 10 mark question.

Answer 1

Introduction:
The International Ship and Port Facility Security (ISPS) Code was adopted by the IMO in 2002, following the 9/11 attacks, as an amendment to SOLAS. Its main objective is to detect and deter security threats to ships and port facilities.

1) Origins and Intent of the Code:
* The ISPS Code was created in the context of terrorist threats, particularly the fear that ships could be used as weapons or smuggle weapons into ports.
* The IMO documentation emphasizes preventing incidents affecting port and ship security.
* Intended to enhance maritime security, particularly at the ship/port interface.

2) Security as a Two-Way Interface:
* The Code focuses on the ship/shore interface — protecting both ships from unlawful interference and ports from threats arriving by sea.
* Ships are required to implement Ship Security Plans (SSP), conduct risk assessments, and work with Port Facility Security Officers (PFSOs).
* Port facilities must also implement Port Facility Security Plans (PFSPs).

3) Evidence Supporting the Statement:
* Ships are often seen as potential delivery mechanisms for threats (e.g., explosives, terrorists).
* Much of the Code’s attention is on screening cargo and personnel coming from ships into ports, supporting the idea that it protects ports from ships.
* The Code requires information on ships’ last 10 ports, crew lists, cargo manifests — this supports port security needs.
* Primary concern in many port states: protecting national infrastructure.

4) Evidence Challenging the Statement:
* The Code also seeks to protect ships themselves, especially in high-risk areas or ports with poor security.

Ship focused security:
* ISPS requires Ship Security Plans (SSPs).
* Access control, training, and onboard drills.
* Ship Security Alert Systems (SSAS) for hijacking/piracy.

• Piracy-prone areas (e.g., Gulf of Aden) show ship protection as a key concern.
• Threats in port (e.g., stowaways, sabotage) → ships are vulnerable too.

Conclusion:
The statement is partly valid — the ISPS Code does aim to protect ports from threats posed by ships, particularly through advanced information and access control. However, it is equally concerned with protecting ships from threats in ports or at sea. The Code’s design reflects a mutual protection approach, where both ship and port are protected as part of a secure maritime system. Thus, the statement is too narrow and does not fully represent the Code’s dual-purpose nature.

Question 2

What benefit has the ISPS code been to shipping and what manpower requirements and documentation must be shown by a vessel and it’s management to show compliance with the code? - Answer in the format of a 10 mark question

Answer 2

Introduction
* ISPS Code (2004) – maritime security framework under SOLAS.
* Applies to ships, port facilities, and shipping companies.

Benefits to Shipping (4 marks)
* Enhanced security awareness at all levels: crew, company, and ports.
* Reduced risk of stowaways, terrorism, piracy through proactive measures.
* Improved communication protocols between ship and shore (e.g. pre-arrival notices, security levels).
* Increased trust in global supply chains: Port states prefer compliant vessels.
* Access to certain ports conditional on ISPS compliance → commercial necessity.
* Insurance and legal protection: Compliance can support defense in claims and lower premiums.

Manpower & Documentation for Compliance (5 marks)
Manpower Requirements:
* Company Security Officer (CSO): Coordinates security across the fleet.
* Ship Security Officer (SSO): Appointed onboard each ship to implement the Ship Security Plan.
* Crew training: Drills, exercises, and familiarisation with SSP.

Documentation Onboard:
* Ship Security Plan (SSP): Approved confidential document detailing procedures.
* International Ship Security Certificate (ISSC): Proof of compliance, issued after audit.
* Continuous Synopsis Record (CSR): History of ship ownership, flags, security-related changes.
* Records of drills, training, incidents, and audits.
* Security level logs and communication with Port Facility Security Officers (PFSOs).

Conclusion
* ISPS Code has significantly raised global maritime security standards.
* Compliance ensures safety, commercial access, and legal protection — but requires trained personnel and strict documentation.

Question 3

What are the manpower and documentation requirements to show compliance with ISPS?

Answer 3

Manpower Requirements:
* Company Security Officer (CSO):
Coordinates security for the company fleet.
* Ship Security Officer (SSO):
Implements the Ship Security Plan onboard.
* Trained Crew:
Participates in drills, understands security procedures.

Required Documentation
* Ship Security Plan (SSP):
Confidential, IMO-approved, outlines ship-specific procedures.
* International Ship Security Certificate (ISSC):
Proof of compliance, issued after audit.
* Continuous Synopsis Record (CSR):
Tracks security-relevant changes (ownership, flags, etc.).
* Training & Drill Records:
Logs of exercises, crew briefings, incident reports.
* Security Level Log:
Records changes to security level and related actions.
* Correspondence with PFSO (Port facility security officer):
Proof of ship/port security coordination.

Question 4

What are the roles of the SSO, CSO and PFSO under the ISPS code?

Answer 4

SSO | Ship Security Officer
* Implements the Ship Security Plan (SSP), conducts onboard drills, liaises with PFSO
* One based onboard each ship, selected from crew

CSO | Company Security Officer
* Oversees security across all ships in the company fleet, ensures SSPs are approved and followed
* Shore-based (company HQ)

PFSO | Port Facility Security Officer
* Implements the Port Facility Security Plan (PFSP), coordinates with ships calling at the port
* One based at each ISPS-compliant port facility

Question 5

You are preparing an operating budget for a recently acquired vessel by an owner with a mixed fleet of vessels under your company’s management.
Detail the main information you will need about the vessel and why each of these are important.

Part A of a 3 part question

Answer 5

Part A (Approx. 8 marks, assuming 8/6/6); aim for 6–8 key points

Key Information Needed:
* Vessel type and size (DWT, GT): Impacts manning levels, maintenance, insurance, spares.
* Flag state and classification society: Affects regulatory costs, crew nationality, inspection routines.
* Crew complement and nationality: Determines manning costs and crewing agency budgets.
* Trading area/intended operation: Impacts port dues, canal transit costs, insurance zones (e.g. war risk).
* Age and condition of vessel: Older vessels often require more spares, higher repair budgets.
* Machinery type and fuel type: Determines spare parts costs, lube oil consumption, fuel quality needed.
* Maintenance status and planned dry dock schedule: Impacts upcoming repair costs and budget phasing.
* Owner preferences or internal policies: Affects budget flexibility and standard-setting.

Question 6

You are preparing an operating budget for a recently acquired vessel by an owner with a mixed fleet of vessels under your company’s management.
Give details of the typical costs included in a budget of daily operating costs.

Part B of a 3 part question

Answer 6

Part B (Approx. 6 marks, assuming 8/6/6)

Typical Daily Operating Costs:
* Crew costs: Salaries, insurance, repatriation, agency fees.
* Provisions and stores: Food, deck and engine stores, medical.
* Spare parts and maintenance: Planned and unplanned repairs, consumables.
* Lubricating oils: Based on machinery type and consumption.
* Insurance: Hull & Machinery (H&M), P&I Club premiums.
* Flag, class and regulatory fees: Surveys, inspections, certification.
* Communications and admin: Satcoms, software subscriptions, office charges.

Bonus notes:
* Vessel operating budgets are usually calculated as a daily average (USD/day) for easier tracking and comparison
* This can be summarised as ‘total daily operating cost is budgeted at $6,500 per day’ - including all regular OPEX components averaged over 365 days

Question 7

You are preparing an operating budget for a recently acquired vessel by an owner with a mixed fleet of vessels under your company’s management.
Explain how you would monitor OPEX costs during the management of the vessel and what circumstances might arise that could make significant variations to the figures.

Part C of a three part question

Answer 7

Part C - 6 marks (assuming 8/6/6)

Monitoring Methods:
* Monthly variance reports (budget vs actual).
* Shipboard reporting systems (e.g. AMOS or Danaos).
* Purchase order tracking and approval process.
* Regular technical and financial reviews with the vessel superintendent.
* Internal audits and KPI benchmarking.

Circumstances Causing Variations:
* Unexpected repairs or breakdowns (e.g. engine failure).
* Off-hire periods or change in trade route (affects stores/fuel use).
* Crew change disruptions (visa issues, medical, pandemic-related).
* Fuel/lube oil price volatility.
* War risk areas or piracy precautions (e.g. armed guards, rerouting).
* Delays in dry docking or sudden regulatory updates.

Question 8

What are the OPEX of a vessel? Give an example of typical cost components.

Answer 8

Daily Operating Costs (OPEX):
* Vessel’s yearly operating budget is divided by 365 to give a USD/day figure.
* Used for budgeting, comparison, and performance tracking.
* Important for: simplification of cost tracking; comparison of different vessels or YoY

Typical Cost Components USD/day:
(Cost area / Description / Approx. Daily Cost)
* Crew / Wages, insurance, agency fees / ~$3290
* Provisions & Stores / Food, medical, deck/engine stores / ~$550
* Lubes / Based on engine type and usage / ~$410
* Insurance / H&M and P&I / ~$820
* Repairs & Spares / Planned & unplanned maintenance / ~$820
* Admin & Misc. / Satcoms, software, office overheads / ~$550
* Total / Daily operating budget / ~$6,500/day

Question 9

Your Supramax bulker is fixed to load a max cargo of soya beans (SF 1.4) at Philadelphia USA in September for discharge at Fremantle, Western Australia. The vessel can be routed via the Panama Canal, the Suez Canal or the Cape of Good Hope as they are all a similar distance.
What factors would you take into account when deciding which route the vessel should take?

Part A of a 3 Part Question

Answer 9

Key Factors to Consider When Choosing Route:

Canal Dues (Panama/Suez):
* Both charge significant tolls based on NT, cargo type, and vessel specs.
* Cape of Good Hope = no canal tolls, but longer sailing time and higher fuel costs.

Weather and Seasonal Conditions (September):
* Hurricane season in the Caribbean/US Gulf (affects Panama route).
* Southwest monsoon winding down in Indian Ocean (Suez route).
* South Atlantic and Southern Ocean may be rough (Cape route).

Piracy/Security Risk:
* Suez Canal route passes near the Horn of Africa (piracy concerns, possible need for security).
* Panama and Cape routes generally safer.

Fuel Costs and Availability (Bunkering Strategy):
* Longer routes mean more fuel; must consider current bunker prices at likely ports (e.g. Singapore, Durban, Gibraltar).

Speed and ETA Requirements:
* Charter party may include laycan, speed obligations, or bonus/penalty clauses.
* Longer route may miss agreed ETA or cost more in time-charter equivalent.

Canal Restrictions or Waiting Times:
* Panama Canal may have draught or beam limits; your Supramax may just fit, but delays or congestion are common.
* Suez = no locks, but convoy system and possible wait times.

Cargo Sensitivity:
* Soya beans (SF 1.4) are not especially time-sensitive, but high humidity and long voyages increase cargo care responsibilities (ventilation, moisture, etc.).

Owner or Charterer Preference / Instructions:
* Final decision may rest with the charter party terms or owner’s operating policy.

Question 10

Summary of resources to assist in route planning

Your Supramax bulker is fixed to load a max cargo of soya beans (SF 1.4) at Philadelphia USA in September for discharge at Fremantle, Western Australia. The vessel can be routed via the Panama Canal, the Suez Canal or the Cape of Good Hope as they are all a similar distance.
What resources are available to assist you in this decision?

Part B of a three part question

Answer 10

Admiralty Sailing Directions & Ocean Passages for the World:
* Provide detailed guidance on recommended routes, seasonal patterns, ocean currents, and hazards.

Weather Routing Services (e.g. StormGeo, WNI):
* Offer real-time data on storms, currents, wind, and wave forecasts to optimize safety and fuel efficiency.

Canal Authority Websites & Publications:
* Panama Canal Authority and Suez Canal Authority give up-to-date tolls, restrictions, and traffic info.

Charter Party Terms:
* May specify permissible routes, speed clauses, or responsibility for choosing.

Fuel Price Indices / Bunker Price Reports:
* Services like Ship & Bunker provide pricing data at global ports to factor into voyage cost comparisons.

Nautical Publications (e.g. Routeing Charts, Mariners’ Handbooks):
* Offer long-term averages for currents, winds, weather conditions by region and season.

Company’s Voyage Planning Software or Historical Data:
* Internal data from past voyages or tools like SPOS, BonVoyage, or Navisailor for cost prediction and comparison.

Question 11

Explain the role of a classification society. What services do they offer?

Part A of a four part question

Answer 11

What They Are:
* Independent, non-governmental organisations (e.g. Lloyd’s Register, DNV, ABS).
* Set technical standards for ship design, construction, and maintenance.

Services Provided:
* Approve ship designs and materials.
* Supervise construction and major modifications.
* Conduct inspections and surveys to assign and maintain Class status.
* Issue statutory certificates on behalf of flag states (under SOLAS, MARPOL, etc.).
* Offer technical advice to owners, builders, and insurers.
* Provide support for risk management, damage assessment, and incident investigations.

Question 12

Explain the cycles of surveys required by the Classification Society during the life of a vessel to ensure that a vessel remains in Class.

Part B of a four part question

Answer 12

Class societies use a five-year survey cycle, with required inspections to ensure vessels continue to meet Class standards.

Main Survey Types:
1) Annual Survey (every year):
* General condition check, safety equipment, machinery, hull integrity.

2) Intermediate Survey (between 2nd and 3rd year):
* More detailed than annual; checks ballast tanks, machinery, structure.
* Can sometimes substitute for one annual survey.

3) Renewal or Special Survey (every 5 years):
* Full inspection of hull (including dry docking), machinery, and safety systems.
* Vessel may be taken out of service.
* Class is renewed after passing this.

4) Bottom Inspection / Docking Survey:
* Usually every 2.5 years (at least two in five-year cycle).
* Can be dry dock or underwater (if approved).

5) Occasional or Additional Surveys (as needed — details on separate flashcard).

Question 13

Under what circumstances might Class be called to inspect the vessel outside of the usual cycle?

Part C of a four part question

Answer 13

Class may be called outside the regular cycle due to:
* Damage (e.g. collision, grounding, fire, flooding).
* Major modifications (lengthening, engine replacement, structural alterations).
* Deficiency found during port state control or flag state inspection.
* Suspicion of non-compliance or poor maintenance.
* Change of owner or flag, requiring Class re-certification.
* At request of owner (e.g. to confirm condition before sale or long voyage).

Question 14

Why aren’t validity and verification for Class related certificates the same? E.g. if the load line certificate is valid for five years, why does it still need to be verified annually?

Answer 14

This is a key distinction in shipping certification:
Validity The maximum legal lifespan of the certificate if all requirements are continuously met (e.g. 5 years).
Verification The regular checks (surveys, audits, inspections) required during that period to confirm continued compliance.

Example – Load Line Certificate:
Valid for 5 years, BUT:
* The ship must pass an annual inspection to confirm it hasn’t been structurally altered, overloaded, or poorly maintained.
* If it fails a verification, the certificate can be suspended or withdrawn before its expiry date.

Simplified explanation:
A certificate’s validity is like its passport expiry date, but verification is the immigration officer checking your visa every time you cross a border.

Question 14

Give details of the certificates issued by Class including their validity, verification requirements and what they certify

Answer 14

• Class Certificate
• Certifies that the ship complies with Class rules (hull, machinery)
• Validity: 5 years
• Verification: Surveys throughout cycle

Load Line Certificate
* Marks and freeboard comply with ICLL
* Validity: 5 years
* Verification: Annual verification

Cargo Ship Safety Construction Certificate (CSSCC)
* Structure, machinery, life-saving & fire safety
* Validity: 5 years
* Verification: Annual survey

Cargo Ship Safety Equipment Certificate (CSSEC)
* Life-saving appliances, fire safety, navigation
* Validity: 5 years
* Verification: Annual

Cargo Ship Safety Radio Certificate (CSSRC)
* GMDSS (Global Maritime Distress and Safety System) and radio equipment
* Validity: 5 years
* Verification: Annual

**International Oil Pollution Prevention **(IOPP)
* MARPOL Annex I compliance (oily water systems)
* Validity: 5 years
* Verification: Annual/intermediate

International Air Pollution Prevention (IAPP)
* MARPOL Annex VI – engine emissions, fuel type
* Validity: 5 years
* Verification: Annual/intermediate

International Sewage Pollution Prevention (ISPP)
* MARPOL Annex IV – sewage systems
* Validity: 5 years
* Verification: Inspections as per schedule

International Ballast Water Management Certificate (IBWMC)
* Compliance with Ballast Water Convention
* Validity: 5 years
* Verification: Surveys per plan

International Energy Efficiency Certificate (IEEC)
* Ship’s EEDI or EEXI, SEEMP presence
* Validity: Lifetime unless modified
* Verification: No periodic survey

Document of Compliance (DOC) & Safety Management Certificate (SMC)
* ISM Code compliance (DOC = company, SMC = ship)
* Validity: 5 years
* Verification: Annual audit

Question 15

What is a GMDSS, its purpose, compliance requirements, and key equipment.

Answer 15

GMDSS – Global Maritime Distress and Safety System

Purpose:
Ensures automatic, global communication for:
* Distress alerts
* Maritime safety information (MSI)
* Search and rescue coordination

Compliance:
* Mandatory for all SOLAS ships ≥ 300 GT on international voyages.
Certification:
* Covered by the Cargo Ship Safety Radio Certificate (CSSRC)
* Issued by Class on behalf of flag state
* Valid for 5 years with annual verification

Key GMDSS Equipment (varies by sea area):
* VHF / MF / HF radios Short to long-range voice/data communication
* EPIRB Sends distress signal and position via satellite
* SART Helps locate lifeboats/liferafts by radar
* Inmarsat / Iridium terminals Satellite-based communication for voice, email, alerts
* NAVTEX receiver Receives local navigational/weather safety info
* DSC (Digital Selective Calling) Automates channel selection and alerting

Question 16

Bunkers are a major cost item for a vessel and there are many providers available around the world. Explain fully how you can ensure that you choose the right location and supplier to get the best bunkers at the right price, and what actions and checks can be made to ensure this.

Part A of a two part question

Answer 16

Choosing the Right Location:
* Fuel Price Comparisons:
Use services like Ship & Bunker, Platts, or fuel brokers to compare global port prices.
* Port Charges & Infrastructure:
Consider total port costs — not just fuel price. Some “cheap” ports may have high fees or delays.
* Bunker Quantity & Quality Needed:
Larger bunker calls may be better handled at major hubs (e.g. Singapore, Rotterdam).
* Voyage Plan Compatibility:
Align bunkering with voyage schedule — avoid detours that increase cost or off-hire time.
* Compliance Requirements:
Choose ports offering low sulphur fuels (e.g. VLSFO or MGO) if calling at an ECA soon.

Choosing the Right Supplier:
* Supplier Reputation & Reliability:
Use approved or vetted suppliers listed by BIMCO or trusted brokers.
* ISO Fuel Standards Compliance:
Ensure fuel complies with ISO 8217 to avoid off-spec deliveries.
* Delivery Capability:
Confirm the supplier can deliver the right quantity, at the right time, using certified barges.
* Terms of Sale:
Check pricing terms (e.g. fixed, floating), credit terms, and BIMCO Bunker Terms 2018.

Actions & Checks:
* Bunker Nomination Process:
Confirm order specs, delivery time, and communication via bunker broker or agent.
* Fuel Sampling at Delivery:
Witnessed MARINE FUEL samples must be taken at manifold — retain samples for 12 months.
* Bunker Delivery Note (BDN):
Must state sulphur content, quantity, density — kept on board for 3 years.
* Tank Sounding Cross-Check:
Chief engineer should measure tanks before/after delivery to confirm correct quantity.
* Quality Testing:
Send samples to a fuel testing lab (e.g. Veritas Petroleum Services) to confirm no contamination or non-compliance.

Question 17

All vessels must comply with the current international regulations regarding sulphur emissions from the fuels they use around the world. There are currently two different levels of sulphur emissions permitted. Give details of the four areas (SECAs and ECAs) where the most restricted sulphur emissions of 0.1%S apply. In what additional area covered by the EU directive does this same restriction apply?

Part B of a two part question

Answer 17

0.10% Sulphur ECAs / SECAs (per MARPOL Annex VI):
Baltic Sea
– Designated SECA (Sulphur Emission Control Area)
North Sea
– Also includes English Channel
North America ECA
– Covers most of US and Canadian coastal waters (up to 200 nm offshore)
US Caribbean ECA
– Puerto Rico and US Virgin Islands

Additional EU Directive Area (0.10%S):
EU Port Areas (Directive 2012/33/EU):
All ships at berth in EU ports must use 0.10%S fuel, even if outside an ECA.
* Applies within 2 hours of arrival until 1 hour before departure.
* Exemptions for short stays or shore power connection.

Question 18

Define and explain ECA and SECA

Answer 18

ECA – Emission Control Area
A general term used under MARPOL Annex VI for designated sea areas where stricter controls apply to air pollution from ships.
ECAs can cover multiple pollutants, including:
* Sulphur oxides (SOx)
* Nitrogen oxides (NOx)
* Particulate matter

SECA – Sulphur Emission Control Area
A subcategory of ECA, focused specifically on controlling sulphur emissions from marine fuels.
All SECAs are ECAs, but not all ECAs are SECAs.
For example:
* Baltic Sea and North Sea = SECAs.
* North America ECA = covers SOx, NOx, and PM → broader than just SECA.

Question 19

Define and explain AWRP

Answer 19

AWRP – Authorised Waste Reception Port
What it means:
* A port facility officially approved to receive waste from ships under MARPOL regulations.

Why it matters:
* Ships must discharge waste (e.g. oily water, garbage, sewage) at authorised facilities to comply with international environmental rules.

Question 20

Define and explain IEEC

Answer 20

IEEC – International Energy Efficiency Certificate
* What it means:
A certificate under MARPOL Annex VI showing that a ship complies with energy efficiency regulations (EEDI or EEXI).

• Validity:
  Valid for the life of the ship, unless major changes affect energy efficiency.
• Why it matters:
  Required for ships ≥400 GT engaged in international voyages; proves compliance with global emissions targets.

Question 21

Define and explain CII

Answer 21

CII – Carbon Intensity Indicator
* What it means:
A measure of how efficiently a ship transports cargo in terms of CO₂ emissions per tonne-mile.

• How it works:
  Annual CII rating (A–E) based on fuel consumption and distance sailed.
• Why it matters:
  Ships rated D or E for 3 consecutive years must implement corrective action plans.

Question 22

Define and explain EEXI

Answer 22

EEXI – Energy Efficiency Existing Ship Index
What it means:
* A design-based efficiency rating introduced in 2023 for existing ships under MARPOL Annex VI.

Applies to:
* Ships ≥400 GT that were built before EEDI regulations applied.

Why it matters:
* Helps bring older ships in line with IMO carbon reduction targets by limiting engine power or upgrading systems.

Question 23

Define and explain IOPP

Answer 23

IOPP – International Oil Pollution Prevention Certificate
What it means:
* Certificate issued under MARPOL Annex I confirming the ship’s equipment and procedures prevent oil pollution.

Validity:
* 5 years, with annual/intermediate verifications.

Applies to:
* Oil tankers ≥150 GT and other ships ≥400 GT.

Question 24

Define and explain IMSBC Code

Answer 24

**IMSBC Code – International Maritime Solid Bulk Cargoes Code** What it means: * IMO code governing safe carriage of solid bulk cargoes (e.g. coal, grain, ores). Covers: * Cargo properties (moisture, angle of repose), trimming, segregation, loading/unloading procedures. Why it matters: * Prevents cargo liquefaction, shifting, and explosion risks on bulk carriers.

Question 25

Explain and define WIBON

Answer 25

**WIBON – Whether In Berth Or Not** What it means: * A laytime clause used in charter parties. Effect: * Allows laytime to start even if the vessel is waiting at anchorage and not yet berthed, as long as it is ready in all other respects. Why it matters: * Protects the owner if berthing is delayed due to port congestion.

Question 26

Define and explain NDFFCA PMQS. What are the practical implications? What are the risks associated with this?

Answer 26

**NDFFCA PMQS – No Documents Found For Charterer’s Account, Please Make Quick Shipment** * A traditional telex-style message sometimes seen in shipping communications. * It is not a formal maritime regulation but shorthand/slang from older trade practices. **Breakdown**: **NDFFCA** = No Documents Found For Charterer’s Account * Means the seller/exporter has not yet recieved documents or instructions from the buyer or charterer * Examples: no BOL drafts, no cargo clearance documents, no NOR acceptance format etc * Can delay loading if not resolved **PMQS** = Please Make Quick Shipment * A polite nudge or formal-sounding phrase basically saying “hurry up with loading” — especially if the laycan or shipment window is tight. **In Practice**, It Often Means: *“We (seller/shipper) haven’t received the necessary shipping documents from the buyer’s side, but please go ahead and load the cargo quickly while we chase them up.”* So even though some documentation is missing, the shipper might be saying: * "Proceed with shipment anyway" * "Don’t delay loading" * "We’ll sort out the paperwork as we go" **Risks / Implications**: * Legal/documentary risk for seller or charterer: Loading without required customs or commercial documents can cause BL delays, port fines, or cargo claim issues. * Used more in informal or familiar trades (e.g. recurring grain shipments), where parties trust each other and sort things out in parallel.

Question 27

Who is a DPA and what are their main responsibilities?

Answer 27

DPA = designated person ashore under the ISM code (International safety mangement) * A shore-based person appointed under the ISM Code * Acts as the link between ship and company management * Must have direct access to the highest level of management **Key Responsibilities**: Monitor SMS implementation – Ensure the Safety Management System is correctly applied onboard Ensure shore-side support – Provide resources and assistance needed for safe operations Facilitate communication – Act as a bridge between the vessel and company on safety issues Oversee incident reporting – Receive and follow up on reports of accidents, near-misses, and non-conformities Promote a safety culture – Encourage safety awareness and continuous improvement Audit and review participation – Involved in internal audits and management reviews of the SMS **Model exam style definition**: The Designated Person Ashore (DPA) is a key figure required under the International Safety Management (ISM) Code, which was adopted by the IMO to promote the safe operation of ships and prevent human injury, loss of life, and damage to the environment. The DPA serves as the link between the vessel and shore-based management and has a direct line of communication with the highest level of the company. Their primary role is to ensure the proper implementation of the company’s Safety Management System (SMS) and to support the safe operation of each ship in the company’s fleet.

Question 28

Explain what specific certificates and other documents a vessel must carry to show compliance with the ISM code. | Include their meaning, validity and issuing bodies.

Answer 28

To demonstrate compliance with the International Safety Management (ISM) Code, vessels and companies must hold specific certificates issued by or on behalf of the flag state, based on audits often conducted by Classification Societies. **Document of Compliance (DOC)** * Issued to the company (i.e. the owner/operator) * Issued by the flag state or another recognised organisation (e.g. Class) * Valid for 5 years * Signifies that the company's shore based safety management system (SMS) complies with ISM code **Safety Management Certificate (SMC)** * Issued to each individual vessel * Issued by the flag state or recognised organisation (e.g. Class) * Valid for 5 years * Signifies that the vessel operates in accordance with an SMS that meets ISM code requirements and is certified under a valid DOC **Verification and Audit Schedule** Both certificates require periodic verification to remain valid: **DOC**: * Valid for 5 years * Requires annual verification audits * Issued only after a successful audit of shore-based operations **SMC**: * Valid for 5 years * Requires at least one intermediate audit (between year 2 and 3) * Issued after an onboard audit confirming implementation of the company’s SMS * If a ship changes management, flag, or undergoes major changes, re-audit may be required. To demonstrate full ISM Code compliance, a vessel must carry a valid SMC, issued based on a company-wide DOC, both of which are subject to periodic audits. Supporting documents such as the SMS manual, audit records, and training logs form part of the operational proof that safety and environmental protection are being effectively managed onboard and ashore.

Question 29

What supporting documentation should be carried by a vessel alongside their DOC and SMC?

Answer 29

🔹 SMS Manual (Safety Management System): A documented system tailored to the vessel and company * Includes safety procedures, checklists, emergency plans, maintenance routines, drills, reporting structures 🔹 Master’s Responsibility and Authority Statement: Part of the SMS * Confirms the master has overriding authority in safety and pollution prevention matters 🔹 Crew Training and Familiarisation Records: * Records showing the crew has been trained in the SMS and their safety duties 🔹 Internal Audit Reports and Non-Conformity Reports: * Evidence of regular internal audits and actions taken on deficiencies 🔹 Management Review Reports: * Shows the company reviews its safety system periodically and updates as needed 🔹 ISM Code Copy: * A copy of the ISM Code is normally carried as a reference To demonstrate full ISM Code compliance, a vessel must carry a valid SMC, issued based on a company-wide DOC, both of which are subject to periodic audits. Supporting documents such as the SMS manual, audit records, and training logs form part of the operational proof that safety and environmental protection are being effectively managed onboard and ashore.

Question 30

Explain acquisition/fixed costs, daily running/operating costs and voyage costs.

Answer 30

**Acquisition / Fixed Costs**: * Costs related to purchasing and financing the vessel * Usually non-recurring or amortised over the vessel’s life * Independent of whether the vessel is trading **Daily Running / Operating Costs** (OPEX): * Recurring costs of keeping the ship operational and compliant * Paid regardless of voyage activity * Includes crewing, maintenance, stores, insurance, etc. **Voyage Costs**: * Costs directly related to a specific voyage * Typically paid by charterer on time charter, by owner on voyage charter * Include bunkers, port dues, canal tolls, etc.

Question 31

Give some examples of acquisition/fixed costs.

Answer 31

* Purchase price or lease costs of the vessel * Loan interest and capital repayments * Legal and documentation fees (e.g. registration, surveys) * Cost of fitting new systems (e.g. ballast water treatment, gyro system) * Delivery costs or repositioning expenses (initial) * Depreciation

Question 32

Give some examples of voyage costs.

Answer 32

* Bunker fuel (IFO, MGO, LSFO) * Port dues and pilotage * Tug assistance (if not included in port dues) * Canal tolls (Suez, Panama) * Agency fees (load/discharge ports) * Draft surveys and cargo-related inspections * War risk insurance premiums (if relevant to voyage)

Question 33

Give some examples of daily operating/running costs.

Answer 33

* **Crew** costs: wages, repatriation, manning agency fees, training * **Stores and provisions**: deck, engine, medical, food * **Spare parts and repairs**: planned/unplanned maintenance * **Lubricants**: main engine, auxiliary engines, gearboxes * **Insurance**: Hull & Machinery (H&M), P&I calls (basic cover) * **Certifications and regulatory** fees: class, flag state, ISM/ISPS compliance * **Administration**: communication, software, subscriptions, office overhead

Question 34

How would you apportion the following costs to these categories - acquisition/fixed costs, daily running/operating costs and voyage costs - and why? * light dues * P&I call * war risk insurance premium * tug costs at load port * supply of main engine lubricants * draft survey * registration costs; agency fees * on hire survey for sport charter * and a new gyro system for the vessel.

Answer 34

* Light dues - Voyage cost - Charged per port call * P&I call - Running cost - Annual insurance premium * War risk insurance premium - Voyage cost - Specific to voyage area * Tug costs at load port - Voyage cost - Port service related to voyage * Main engine lubricants - Running cost - Ongoing engine operation * Draft survey - Voyage cost - Cargo operation-specific * Registration costs - Acquisition cost - Vessel documentation * Agency fees - Voyage cost - Specific to each port call * On-hire survey (for spot charter) - Voyage cost - Related to charter party commencement * New gyro system - Acquisition/fixed cost - One-time capital expenditure

Question 35

What are the two levels of sulphur emissions permitted worldwide?

Answer 35

Under MARPOL Annex VI, sulphur oxide (SOx) emissions from ship fuels are regulated globally. Two sulphur limits apply: a 0.10% maximum in designated Emission Control Areas (ECAs), SECAs, and the EU directive area; and a 0.50% maximum elsewhere.

Question 36

Explain ECAs, SECAs, and NECAs.

Answer 36

**ECA - Emission Control Area** * General term for areas with stricter air pollution limits (includes SOx, NOx, PM) * Key areas are North America, US Caribbean, North Sea, Baltic Sea * Regulated under MARPOL Annex VI **SECA - Sulphur Emission Control Area** * Specific to sulphur oxides (SOx) emissions – max 0.10%S fuel * Key areas are Baltic Sea, North Sea, North America, US Caribbean * Regulated under MARPOL Annex VI Regulation 14 **NECA - Nitrogen Oxide Emission Control Area** * Specific to nitrogen oxides (NOx) emissions – Tier III limits for new ships * Key areas are North America, US Caribbean, North Sea, Baltic Sea (from 2021) * Regulated under MARPOL Annex VI Regulation 13 ## Footnote SECA limits = fuel-based (e.g. use VLSFO, MGO, or scrubbers) NECA limits = engine-based (Tier III engine tech required for ships built after specific dates)

Question 37

What preloading information is required for the carriage of grain? What preloading precautions should be taken?

Answer 37

**Key information to obtain**: * **Cargo details**: type of grain, stowage factor, moisture content limits, dustiness, flow characteristics * **Previous cargo**: was it a hazardous/hygroscopic contaminant? * **Cleaning standards required**: grain requires hospital-clean holds * **Stowage plan**: even distribution, consider trim and stability **Applicable regulations**: * IMSBC Code (bulk grain provisions) * SOLAS Chapter VI (grain stability) * Flag state/port requirements **Preparations before loading**: * Thorough hold cleaning * Inspect and test bilges and hold ventilation * Obtain cleanliness certificate (possibly NCB or local surveyor) * Inspect hatch covers for watertightness * Ballast management: ensure correct trim for loading and sailing

Question 38

What precautions would you take during and at completion of loading grain?

Answer 38

During loading: * Supervise loading carefully: avoid overloading or uneven distribution * Prevent damage: ensure grabs/chutes do not hit tanktops or structures * Monitor dust levels: grain can be explosive — no smoking, control ignition sources * Ventilation management: minimise moisture ingress At completion of loading: * Check cargo distribution and stability (especially longitudinal) * Complete draft survey to determine loaded quantity * Trim grain surface to prevent shifting * Fit grain fittings if required (e.g. shifting boards) * Secure hatches, record in logbook

Question 39

What checks should be made during the voyage when handling grain?

Answer 39

* Daily temperature readings: using cargo hold temperature probes * Monitor for signs of self-heating or spoilage (hot spots, odours) * Check bilge wells regularly: for leakage or water ingress * Log all inspections and ventilation activities * Avoid unnecessary access to holds – keep sealed to preserve condition Ventilation management: * Use the dew point rule: ventilate only if external air is drier * Avoid condensation that could cause spoilage or mould

Question 40

How can a company ensure that it employs and retains the best crews for its ships and what are the consequences of failing to do this? - full 20 mark essay plan

Answer 40

**Introduction** (1–2 marks) * Crewing is a critical pillar of safe, efficient ship operations. * The industry faces growing challenges: crew shortages, retention issues, increased regulatory demands, and competition for skilled labour. * This essay will explore how to attract and retain quality crew, and the consequences of failure. **Part 1: Strategies to Employ the Best Crews** (7–8 marks) a) Recruitment Best Practices: * Use of trusted manning agencies with strong vetting procedures * Transparent recruitment and fair contract terms (no hidden deductions or fake offers) * Global sourcing to widen talent pool while observing nationality matrix or owner preferences * Ensure compliance with STCW, MLC, and company-specific training standards b) Competitive Compensation & Conditions: * Offer market-rate salaries, bonuses, and transparent payroll * Good leave/work rotations (e.g. 4:2 or 6:3 for officers) * Provide benefits: health insurance, repatriation support, family assistance c) Onboard Conditions & Welfare: * Ensure safe, clean, well-maintained vessels * Provide good communication facilities (e.g. internet access) * Enforce rest hours, meal quality, and decent accommodation standards d) Training & Development: * Offer career progression: cadetship schemes, officer promotion tracks * Provide simulator training, refreshers, CBT, onboard mentoring * Encourage loyalty by investing in long-term professional growth **Part 2: Retention Strategies (4–5 marks)** * Build a core crew: re-employ trusted crew on same ship/class of vessel * Use crew rotation systems to build familiarity with ship systems and company culture * Maintain positive relationships with crew and their families (shore-side support, quick pay resolution) * Provide feedback channels: appraisals, anonymous reporting, engagement surveys **Part 3: Consequences of Poor Crewing (5–6 marks)** Operational Risks: * Inexperienced or poorly trained crew leads to accidents, delays, PSC detentions * High turnover disrupts continuity and reduces onboard safety culture Regulatory and Legal Exposure: * Breach of MLC 2006, STCW, or ISM Code can lead to detentions, fines, reputational damage * Insurance claims may be rejected due to unqualified crew Commercial Consequences: * Charterers may avoid working with owners known for poor crewing * Increased recruitment costs due to turnover and re-training * Crew morale drops → higher error rates, low performance **Conclusion** (1–2 marks) A company’s ability to employ and retain competent crew is foundational to safe, profitable, and compliant operations. Failing to do so can affect safety, legality, commercial reputation, and the bottom line. Investment in crew is not a cost — it is a strategic asset.

Question 41

What immediate action should be taken by the crew in the event of a collision at berth?

Answer 41

* Sound general alarm and initiate emergency response procedures * Ensure safety of personnel: evacuate damaged areas, attend to the injured, activate first aid team * Prepare for possible emergency ballast operations or vessel listing * Record incident in logbook * Collect evidence: photos, time logs, witness statements **Notify**: * Port control / harbour master * Terminal operator * Pilots and tugs **Assess and isolate the damage**: * Inspect holds and ballast tanks for flooding * Isolate ballast tank systems and shut relevant valves * Start bilge or ballast pumps if flooding is under control

Question 42

What should the management company do in the event of a vessel collision at berth?

Answer 42

* Maintain communication with master and crew; provide guidance and reassurance * Appoint local P&I correspondents and surveyors to attend the vessel * Arrange shore-side medical care for injured personnel * Coordinate with Class and local shipyard/repair firms if drydock or emergency repairs are required * Provide legal and PR support if necessary Notify relevant parties: * P&I Club (for injury and damage claims) * Hull & Machinery (H&M) insurer * Charterers * Flag state (if required)

Question 43

What assistance is avalible at the port in the event of a collision at berth?

Answer 43

**Port Authority**: will coordinate vessel movements, assist in incident containment **Emergency medical services**: ambulance, hospitals for injured crew/stevedores **Port state control or local maritime authority**: may conduct inspection and request reports **Tugs and salvage services**: may assist in stabilising or shifting the vessel **Repair facilities or shipyard**: for temporary or permanent repairs **P&I correspondents and surveyors**: available locally to assess damage and support claims process

Question 44

What insurance does a vessel have to cover a collision at berth?

Answer 44

**P&I (Protection & Indemnity) Insurance:** Covers: * Injuries to crew and stevedores * Third-party damage (to other vessel) * Pollution liability if ballast water leaks * Wreck removal if necessary **Hull & Machinery (H&M) Insurance**: Covers: * Structural damage to the vessel (side shell, hold, ballast tank) * Survey and repair costs (subject to deductible) **Loss of Hire (if applicable)**: Covers time lost due to repairs if insured under a separate policy

Question 45

Why are costs typically divided into running costs, fixed costs, and voyage costs?

Answer 45

* Helps with voyage profitability analysis (TCE vs cost). * Distinguishes between fixed overheads and voyage-dependent expenses. * Important for chartering decisions (e.g. time vs voyage charter). * Allows better budgeting, cost control, and performance benchmarking.

Question 46

Define and explain the risks covered under P&I clubs insurance.

Answer 46

P&I insurance (Protection and Indemnity) is a form of mutual marine insurance provided by P&I Clubs, which are not-for-profit associations owned by shipowners. It covers third-party liabilities and legal responsibilities not included in Hull & Machinery (H&M) policies. 1) Injury, illness, or death of crew members * Medical costs, repatriation, compensation claims 2) Injury or death of third parties * Stevedores, pilots, passengers, or visitors on board 3) Cargo loss or damage * Claims by cargo owners due to damage, shortage, contamination, or improper handling 4) Oil pollution and environmental liabilities * Cleanup costs, fines, and third-party damage arising from accidental discharges 5) Wreck removal * Costs of locating, marking, and removing the vessel if required by local authorities 6) Collision liability (if not covered by H&M) * Especially the “other vessel” liability if not fully covered under standard hull insurance 7) Damage to fixed and floating objects (FFO) * Docks, piers, buoys, terminals, or underwater cables struck by the vessel 8) Fines and penalties * Related to immigration, customs, pollution, or crew documentation (subject to club rules) 9) Stowaways and refugee-related costs * Repatriation and detention expenses 10) Quarantine and diversion costs * Extra expenses arising from health-related delays or diversions **Conclusion**: P&I insurance provides comprehensive liability cover for shipowners/operators beyond what is included in H&M policies. It plays a vital role in managing the legal and financial risks associated with operating a vessel globally.

Question 47

Explain what insurace covers in the event of a collision.

Answer 47

1) Hull & Machinery (H&M) insurance typically covers: * Damage to your own ship * Sometimes ⅓ of the liability for damage to the other ship 2) P&I Insurance covers: * The remaining ⅔ of the “other vessel” liability * AND any liability not covered under H&M (e.g. injury to crew on the other ship, pollution, cargo on the other ship) **Why It’s Important**: * Without P&I cover, shipowners would be exposed to huge third-party liabilities from collisions. * The division between H&M and P&I ensures that damage to own vessel and others is covered under separate, specialised policies.

Question 48

The company you work for has a mixed fleet of 55 vessels, a mixture of tankers and bulk carriers for which you have commercial, technical and operational management. Explain the organisational structure of the company and identify key roles within it.

Answer 48

**Introduction** (1–2 marks) * A large ship management company managing a mixed fleet of tankers and bulk carriers needs a clear, functional organisational structure. * Its goals are to ensure safe, efficient, and compliant operations, commercial performance, and client satisfaction. * The company is divided into specialist departments, each with defined roles and responsibilities, reporting to senior management. **Organisational Structure Overview** (4–5 marks) * Typically a functional structure, grouped by areas of responsibility. * Headed by a Managing Director (MD) or Chief Executive Officer (CEO). * Departments report to the MD or a senior management committee. * For a mixed fleet, may also include vessel-type-specific teams (e.g. tanker division, bulk carrier division). * Strong coordination between departments is critical for efficiency and regulatory compliance. **Key Roles in the Organisation** (4–5 marks) * **Managing Director / CEO**: overall leadership, strategic direction * **Fleet / Technical Director**: oversees technical and operational performance of vessels * **Commercial Director**: manages charters, freight negotiation, client relations * **DPA** (Designated Person Ashore): ensures ISM Code compliance, link between ship and shore * **Crewing Manager**: oversees crew recruitment, rotation, and training * **HSQE Manager**: handles health, safety, quality, and environmental compliance * **Finance Director / CFO**: manages company budgeting, vessel accounts, and insurance

Question 49

The company you work for has a mixed fleet of 55 vessels, a mixture of tankers and bulk carriers for which you have commercial, technical and operational management. Describe the various departments that would be in the company and explain the key functions and responsibilities of each department.

Answer 49

1) Technical Department: * Oversees maintenance, repairs, and dry dockings * Monitors vessel performance and condition * Ensures compliance with Class, Flag, and statutory requirements * Includes superintendents, purchasing officers, and technical support staff 2) Marine / Operations Department: * Voyage planning, port operations, cargo handling * Monitors vessel movements and performance (fuel consumption, weather) * Communicates with agents, terminals, port authorities * Oversees ISM/ISPS implementation, drills, audits 3) Commercial Department: * Fixes ships on voyage or time charter (or liaises with owners if third-party managed) * Optimises fleet utilisation, TCE, and voyage earnings * Manages contracts of affreightment, demurrage claims, charter party disputes 4) Crewing Department: * Recruits, rotates, and manages officers and ratings * Maintains compliance with STCW, MLC 2006, and flag state regulations * Oversees training, certification, and performance appraisal 5) HSQE Department (Health, Safety, Quality & Environment): * Develops and audits the Safety Management System (SMS) * Investigates incidents and near misses * Monitors compliance with MARPOL, SOLAS, ISM, ISO standards 6) Finance & Accounting Department: * Manages vessel budgets (OPEX, CAPEX, voyage expenses) * Handles owner reporting, payroll, and cash flow * Coordinates with insurers, banks, and auditors 7) Insurance & Claims Department: * Arranges H&M, P&I, War Risk and other insurances * Handles claims management, correspondents, and underwriters * Works closely with legal and operations teams 8) Procurement / Purchasing: * Purchases spares, stores, lubes, and provisions * Manages supplier relationships and inventory tracking * Works with technical and crewing departments

Question 50

Define and explain the purpose of the IMSBC, giving details of what categories of hazard it covers, and what associated documentation must be on board the vessel to meet these.

Answer 50

IMSBC = **International Maritime Solid Bulk Cargoes Code** * Adopted under SOLAS Chapter VI * Ensures the safe stowage and shipment of solid bulk cargoes (e.g. coal, grain, ores) * Prevents accidents such as cargo shifting, liquefaction, explosion, or fire **Main Categories of Hazard** (Groupings): * Group A: Cargoes which may liquefy (e.g. nickel ore, iron concentrate) * Group B: Cargoes which pose a chemical hazard (e.g. self-heating, toxic, corrosive) * Group C: Cargoes with no significant hazard, but still require safe handling **Documentation Required Onboard:** * IMSBC Code (latest edition) – physical or digital copy * Stowage and segregation instructions * Stability calculations based on loading plan Cargo Declaration from Shipper (as per Code): * Cargo Group (A, B, or C) * Physical properties: angle of repose, moisture content, TML * Certificates of moisture content and TML (for Group A)

Question 51

Identify the particular maritime problem addressed by the IBWMC, describing the equipment, certificates and manuals needed on board the vessel.

Answer 51

Problem Addressed: * IBWMC = **International Ballast Water Management Certificate** * Regulates ballast water discharge to prevent transfer of invasive aquatic species between ecosystems Key Regulations: * Part of the IMO Ballast Water Management Convention * Applies to all ships ≥400 GT on international voyages Onboard Equipment & Systems: * Ballast Water Management System (BWMS) - Treats or filters ballast water onboard. Systems may use UV, electrolysis, or chemical dosing * Ballast Water Sampling Point: for PSC or compliance checks Required Certificates & Documents: * IBWMC (Certificate) – valid for 5 years, issued by Class or Flag * Ballast Water Management Plan (BWMP): Approved by Flag/Class, specific to vessel layout and treatment system * Ballast Water Record Book - records all ballast operations (uptake, discharge, treatment, exceptions)

Question 52

What general actions should be taken onboard a vessel following a safety incident? | e.g. collision, crane collapse etc

Answer 52

* Sound the general alarm and muster crew as per emergency response plan * Ensure safety of personnel – first aid to injured, assess potential fire or flooding risks Notify relevant parties: * Master to notify bridge, engine room, and all crew * Inform port control/terminal * Alert vessel management company * Initiate emergency communications as per ISM procedures

Question 53

What general actions should be taken onboard a vessel following a collision where your vessel is at fault?

Answer 53

* Stop engines, assess extent of damage to own ship and other vessel * Take soundings of all tanks and void spaces * Activate damage control parties – isolate affected compartments * Collect evidence: witness statements, photographs, VDR data * Cooperate with other vessel and port authority; notify P&I Club

Question 54

What general actions should be taken onboard a vessel following a collision where another vessel is at fault?

Answer 54

* Record communications with the other vessel, e.g. bridge to bridge calls * Collect evidence of the other vessel's movements, pilotage, and any tugs involved * Report to P&L Club as potential 3rd party claim And all other actions that would typically be taken if your vessel was at fault, including * Stop engines * Take soundings of all tanks and void spaces * Activate damage control parties, isolating affected compartments * Collect evidence: witness staements, photographs, VDRs

Question 55

What general actions should be taken onboard a vessel following equipment failure, such as crane collapse or hatch cover malfunction?

Answer 55

* Secure the area, prevent further injuries or equipment damage * Activate emergency stop on all crane/gantry operations * Conduct initial damage assessment and isolate affected equipment * Record details of cargo operations and any impact on cargo condition

Question 56

What should happen immediately on board a vessel following the injury of a crewmember or third party?

Answer 56

* Stop work in affected area * Provide immediate first aid, call for ambulance/medical services if serious * Preserve the accident scene for investigation and evidence collection * Notify P&I Club (crew claims) or local agent (third-party claims)

Question 57

What actions should be taken by a management company following an incident involving one of their vessels? Incidents include a collision where your vessel was at fault, a collision where another vessel was at fault, equipment failure such as crane collapse or hatch malfunction, and injuries to crew or third party personnel.

Answer 57

General actions: * Maintain constant communication with vessel master * Notify relevent insurers: P&I Club (liability claims), H&M Insurance (structural damage), War Risk or Kidnap & Ransom Insurer Collision - Your Vessel at Fault: * Appoint a local surveyor or P&I correspondent to asses damage * Contact legal department if third party claims are expected * Coordinate with the other vessel's owners and authorities for claims negotiations * Arrange for emergency repairs or salvage is vessel is disabled Collision - Another Vessel is at Fault: * Lodge a claim for third party liability with P&I club * Request a LOU - Letter of Undertaking - from the other vessel's P&I Club * Gather evidence of fault to support the claim, such as radar data, VDR playback, witness statements Equipment Failure: * Arrange for replacement parts and repair personnel * Notify class is the stuctural integrity is affected * Coordinate with charterers regarding delay or off-hire implications Injury/Incident Involving Crew or Third Parties: * Appoint a medical evacuation provider or emergency response team * Notify P&I Club and follow up with injury reports * Coordinate with port agent for hospitalisation and repatriation

Question 58

What insurance is avalibile and what does it cover in the event that your vessel is involved in an incident? Incidents include a collision where your vessel was at fault, a collision where another vessel was at fault, equipment failure such as crane collapse or hatch malfunction, and injuries to crew or third party personnel.

Answer 58

a) **Collision – Your Vessel at Fault:** * **P&I Insurance** – third-party damage, pollution liabilities, injury claims * **H&M Insurance** – own vessel damage, repair costs (minus deductible) * **Loss of Hire** (LOH) – if covered and vessel is taken off hire for repairs b) **Collision – Other Vessel at Fault**: Same insurance policies as above * P&I Club may pursue recovery from the other vessel’s insurers c) **Equipment Failure**: * **H&M Insurance** – machinery breakdown (depending on policy terms) * **P&I Insurance** – if third-party damage or injury occurs d) **Injury/Incident Involving Crew or Third Parties**: * **P&I Insurance** – medical costs, repatriation, injury compensation * **Crew Personal Accident Insurance** – may cover additional medical or death benefits * War Risk or Kidnap & Ransom Insurer if relevant

Question 59

What is the VDR? What data does it record and why is it important?

Answer 59

VDR - **Voyage Data Recorder**, sometimes referred to as the “black box” of a ship. * A device installed on ships to record key operational data and communications during a voyage. * Data is preserved in the event of an incident, similar to an aircraft’s black box. * Required by SOLAS Chapter V Regulation 20 for ships ≥3000 GT. **Data recorded by the VDR:** * Bridge audio (including conversations, alarms, commands) * Radar and AIS data (vessel position, speed, course) * Engine and machinery status * Echo sounder and hull stress data * VHF radio communications * Date and time stamps for all data **Why it's important:** * Essential for investigating collisions, groundings, or equipment failures. * Data can be used to determine fault, reconstruct events, and support insurance claims. * Required by SOLAS Chapter V Regulation 20 for ships ≥3000 GT.

Question 60

What is general average and when can it be declared?

Answer 60

General Average (GA) is a **maritime principle where all parties involved in a maritime adventure** (ship, cargo, freight) **share losses** incurred from a voluntary, sacrificial act to save the vessel and its cargo from a common peril. **When Can General Average Be Declared**? A General Average act is declared when the master intentionally sacrifices cargo, equipment, or incurs extraordinary costs to preserve the vessel and remaining cargo in a situation of imminent peril. Examples include: * Jettisoning cargo to refloat a grounded vessel * Flooding a cargo hold to extinguish a fire * Cutting away a damaged mast to stabilise the ship * Hiring salvage services to prevent sinking * Incurring emergency repair costs to keep the vessel seaworthy **Conditions for Declaring General Average**: 1) Common Maritime Adventure: * The vessel, cargo, and freight are all at risk in a single peril. 2) Intentional Sacrifice: * Action is voluntary and deliberate (e.g., jettisoning cargo). 3) Successful Outcome: * The sacrificial act successfully preserves part of the venture.

Question 61

What are the financial and operational implications of declaring general average?

Answer 61

**Financial Implications**: **General Average Contribution**: * The cost of the sacrifice is shared proportionately among all cargo interests, the shipowner, and the freight at risk. * Contribution amounts are based on the declared value of each party’s interest (cargo value, ship value, freight). **GA Bond & Security**: * Cargo owners must provide security (bond or cash) before cargo is released, calculated as a percentage of cargo value. **GA Adjustment:** A General Average Adjuster is appointed to: * Assess the losses and contributions. * Issue the General Average Adjustment, detailing contributions owed by each party. **Operational Implications**: **Delays in Cargo Release**: * Cargo may be held until GA security is posted. **Cargo Owners’ Financial Exposure**: * Cargo owners may be liable for a significant portion of GA expenses, even if their cargo wasn’t sacrificed. **Potential Insurance Claims**: * Marine cargo insurance typically includes GA coverage, but uninsured cargo owners may face substantial costs.

Question 62

You have received a call from your managed vessel reporting that one of the ship's crane booms has collapsed into the cargo hold causing some structural damage to a hatch, the boom and some cargo and injured one of your crew and one of the stevedores. Under what circumstances might you consider declaring general average?

Answer 62

General Average (GA) is a maritime principle where all parties in a maritime venture share losses resulting from a voluntary sacrifice made to save the venture from a common peril. In this case, the incident involves a crane boom collapse, causing structural damage to the hatch, the boom, and cargo, as well as injuries to crew and stevedores. For GA to be considered, the following conditions must be met: * The ship, cargo, and crew were facing a common peril that threatened the entire venture. * The action taken was voluntary and intentional to preserve the voyage. * The sacrifice or expense must be extraordinary and not part of routine operations. In this case, GA may be declared if: * The master orders the jettison of damaged cargo or crane components to prevent further structural damage or maintain stability. * The vessel is detained for emergency repairs to prevent further flooding or loss, incurring significant repair costs. * A salvage operation is initiated to recover the crane or cargo, as salvage expenses are considered a GA act. * The vessel incurs costs to remove damaged cargo to access and repair the hatch, as these are extraordinary expenses. If any of the above actions are taken to preserve the vessel and remaining cargo, a General Average declaration may be appropriate, and costs will be apportioned among all cargo owners and the shipowner based on their respective values.

Question 63

What precautions should be taken at load port when loading crude oil?

Answer 63

* **Conduct pre-loading conference** – confirm cargo specs, loading rate, stop/start procedures * **Inert gas system operational** – maintain oxygen level below 8% * **Check cargo temperature and pressure** – avoid overheating (risk of H2S release) * **Ensure closed loading system** – minimise vapour release * **Monitor vapour control systems** – connect to vapour recovery as required * **Check manifold pressures** – avoid over-pressurising lines * **Confirm cargo quantity and density** – for accurate stowage planning

Question 64

What precautions should be taken at load port when loading CPP?

Answer 64

* **Pre-load tank inspection** – ensure no residue or contamination * **Compatibility check** – avoid mixing incompatible cargoes (e.g. jet fuel and diesel) * **Confirm flash point** – establish ventilation requirements * **Set up closed loading system** – for volatile cargoes * **Monitor static discharge risks** – ensure grounding and bonding

Question 65

What precautions should be taken at load port when loading grain?

Answer 65

* **Inspect holds for cleanliness and dryness** – no residue, pests, or odours * **Confirm fumigation status** – avoid contamination of subsequent cargoes * **Check loading rates and sequence** – avoid uneven distribution and structural stress * **Install shifting boards or feeders** – to prevent cargo movement * **Monitor for excess moisture** – risk of cargo caking or liquefaction

Question 66

What precautions should be taken at load port when loading ore?

Answer 66

* **Inspect holds for structural integrity** – ore cargoes are high-density, abrasive * **Ensure correct stowage plan** – avoid overloading or hull stress * **Check moisture content** – risk of liquefaction (TML vs. actual moisture content) * **Monitor loading rates** – prevent overstressing of hatch covers and frames * **Confirm cargo trimming and segregation** – to reduce shifting risk

Question 67

How should tanks be prepared prior to the ballast leg of a crude carrying ship and/or a CPP ship?

Answer 67

**Crude** * **Crude Oil Washing** (COW): wash tanks using remaining cargo, as per MARPOL * **Strip and clean tanks** – remove sludge and residues * **Ensure inert gas coverage** – maintain positive pressure in tanks * **Inspect and secure cargo pumps and valves** – prevent leaks or cross-contamination **CPP** * **Chemical cleaning of tanks** – especially for sensitive cargoes like aviation fuel * **Drain and dry cargo lines** – avoid contamination or corrosion * **Inspect and maintain valves and seals** – prevent cross-contamination * **Confirm ballast tanks are empty and clean** – reduce risk of oil-water contamination

Question 68

How should holds be prepared prior to the ballast leg of a dry bulk ship? How does this vary by previous and intended cargo type?

Answer 68

**Grain**: * **Remove all grain dust and residues** – potential fire hazard * **Inspect and seal hatch covers** – prevent ingress of seawater * **Secure cargo securing gear** – prevent loose dunnage during ballast leg * **Ventilate holds thoroughly** – reduce moisture and pest risk **Ore**: * **Clear holds of residual ore dust** – highly abrasive, may clog bilges * **Check bilge wells and pumps** – ensure operational for ballast leg * **Inspect structural integrity of tank tops and bulkheads** – high-density cargo may cause structural stress * **Confirm stability and ballast plan** – ore cargo can cause significant hull stress if not balanced properly

Question 69

What are the hazards of carriage for crude oil, CPP, grain and ore?

Answer 69

**Crude Oil**: * **Flammability and explosion risk** – low flash point, H2S emission * **Corrosive cargoes** – some crude grades contain sulphur or acids * **Cargo heating issues** – potential overheating and fire risk * **Pollution risk** – large volumes, difficult to contain **CPP**: * **Volatility and static discharge** – e.g. naphtha, gasoline * **Contamination** risk – tank cleanliness critical * **Pollution** risk – minor leaks can spread quickly * **Corrosion** of tanks and lines – aggressive chemical cargoes **Grain**: * **Self-heating and fire risk** – especially for moist or damp cargoes * **Shifting and structural stress** – particularly in rough weather * **Moisture migration and caking** – leads to cargo spoilage * **Insect infestation** – may require fumigation or quarantine **Ore**: * **Liquefaction** – iron ore fines and nickel ore at risk if moisture exceeds TML * **Structural stress** – high-density cargo concentrated in a small area * **Dust** generation and clogging – ore dust can foul bilges and vents * **Hull damage** – abrasive nature of ore cargoes

Question 70

What precautions should be taken to mitigate hazards associated with crude, CPP, grain and ore cargoes at discharge?

Answer 70

**Crude Oil**: * Monitor tank pressure and temperature – prevent vapour release * Verify cargo sequence and rate – avoid structural stress * Check vapour recovery system – maintain closed discharge system * Flush and strip cargo lines – avoid cross-contamination **CPP**: * Ensure grounding and bonding – prevent static discharge * Inspect cargo hoses for leaks or damage * Monitor flash point and vapour levels – some CPP cargoes remain highly volatile * Conduct post-discharge tank inspection – check for contamination or residues **Grain**: * Monitor hatch openings for water ingress – grain susceptible to moisture * Control cargo discharge rate – avoid sudden surges or instability * Inspect for caking, mould, or self-heating – potential claims if cargo spoiled * Record cargo outturn weights and condition – evidence in case of claims **Ore**: * Careful discharge sequencing – prevent structural stress * Monitor for cargo liquefaction – visually inspect and test if necessary * Ensure bilge pumps operational – ore dust may cause blockages * Check for hull damage – abrasive cargo may damage hatch coamings or tank tops