List out contents of STP Ship Certificate ‘B’.
Contents of certificate B
The Certificate B and is in the prescribed form and shall state:
The voyage which the ship is to make, and the intermediate ports (if any) at which she is to touch;
That she has the proper complement of officers and seamen;
That the master holds:
A certificate of survey and certificate A; or
A passenger ship safety certificate accompanied by an exemption certificate, a special trade passenger ship safety certificate and a special trade passenger
ship space certificate; or that she has on board such number of medical officers licensed in the prescribed manner and such number of attendants, if any, as may be prescribed;
That food, fuel and pure water over and above what is necessary for the crew, and the other things (if any) prescribed for [special trade passenger ships] or pilgrim ships,have been placed on board, of the quality prescribed, properly packed, and sufficient to supply the [special trade passengers] or pilgrims on board during the voyage whichthe ship is to make (including such detention in quarantine as may be probable)according to the prescribed scale;
In the case of 4[a special trade passenger ship,] if the ship is to make a voyage in
season of foul weather specified as such in the rules made under section 262, and to
carry upper-deck passengers, that she is furnished with substantial bulwarks and a
double awning or with other sufficient protection against the weather;
In the case of [a special trade passenger ship,] the number of cabin and 3[special trade passengers] embarked at the port of embarkation;
Such other particulars, if any, as may be prescribed for [special trade passenger ship] or pilgrim ships, as the case may be.
(a) Explain various functions of classification societies.
(b) Briefly explain:
(i) Condition of Class (ii) Memoranda
(a)
THE PURPOSE OF CLASSIFICATION OF A SHIP IS FOR INSURANCE PURPOSES.
Therefore, when the vessel is being built, it has now become imperative by tradition and practice of the shipping world over the years that the ship is classed by a classification society. The classification society starts its work from the approval of plans prior to the commencement of construction. During the entire period the ship is under construction, a classification surveyor will survey the workmanship of construction. The objective here is of
course from the future insurance point of view, but a ship owner today cannot afford to function without the certification from a classification society. So, in a nutshell, the scope of classification is:
Classification is part of a life-long process to assure a ship is built and maintained to industry accepted standards.
A technical review of the design plans and related documents for a new vessel to
verify compliance with the applicable rules.
Attendance at the construction of the vessel in the shipyard by a classification society surveyor(s), and at the relevant production facilities that provide key components such as the steel, engine, generators and castings, to verify that the vessel is constructed in accordance with the classification rules.
Upon satisfactory completion of the above, the ship owner’s request for the issuance of a class certificate will be considered by the relevant classification committee, or another body, of the class society and, if deemed satisfactory, the assignment of class will be approved and a certificate of classification issued.
Once in service, the owner must submit the vessel to a clearly specified program of
periodical class surveys, carried out onboard the vessel, to verify that the ship
continues to meet the relevant rule conditions for continuation of class.
To avoid liability, they explicitly take no responsibility for the safety, fitness for purpose, or seaworthiness of the ship. That is the responsibility of the Flag State by ensuring the implementation of law (Conventions) on board the ships flying their flag.
(b) (i) Condition of Class (ii) Memoranda
A classification survey is a visual examination that normally consists of:
An overall examination of the items identified in the Rules for survey;
Detailed checks of selected parts, on a sampling basis;
Witnessing tests, measurements and trials where applicable.
Condition of Class
When a surveyor identifies corrosion, structural defects or damage to hull, machinery and/or piece of equipment which, based on the Classification Society’s Rules and in the opinion of the surveyor, affects the ship’s class, remedial measures and/or appropriate Condition of Class / Recommendation are specified in order to retain class.
‘Condition of Class’ and ‘Recommendation’ are different terms (but the meaning is same as stated above) used by IACS Societies for the same thing i.e. requirements to the effect that specific measures, repairs, request for surveys etc., are to be carried out within a specified time limit in order to retain class.
Memoranda
Other information of assistance to the surveyor and owners may be recorded as ‘memoranda’or a similar term. They may, for example, include notes concerning materials and other constructional information.
Memoranda may also define a condition which, though deviating from the technical standard, does not affect the class (e.g. slight indents in the shell which do not have an effect upon the overall strength of the hull or minor deficiencies, which do not affect the operational safety of the machinery). In addition, memoranda could define recurring survey requirements, such as annual survey of specified spaces, or retrofit requirements, which actually have the effect of conditions of class.
What is General Average act and sacrifice? Give appropriate example to
substantiate the answer.
The law of general average is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole adventure (voyage, the ship and the cargo) in an
emergency.
General average requires three elements:
“A common danger: a danger in which vessel, cargo and crew all participate; a danger imminent and apparently ‘inevitable,’ except by voluntarily incurring the loss of a portion of the whole to save the remainder.”
“There must be a voluntary jettison, or casting away, of some portion of the joint concern for the purpose of avoiding this imminent peril, or, in other words, a transfer of the peril from the whole to a particular portion of the whole.”
“This attempt to avoid the imminent common peril must be successful”.
So, we can say that there is a General Average Act, WHEN and ONLY when, any EXTRAORDINARY SACRIFICE or EXPENDITURE is INTENTIONALLY and REASONABLY made for THE COMMON SAFETY for the purpose of PRESERVING FROM PERIL the property involved in a COMMON MARITIME ADVENTURE.
Examples of General Average in the present day shipping world can be:
The extraordinary sacrifice could be to cut a hole in the side of the ship and then fighting a fire through that hole. Any cargo which may be damaged as a direct result of this fire fighting will be considered an extraordinary sacrifice, but that which is burnt from the fire will not be considered a sacrifice but will be a particular average claim against insurers.
There can also be the cost of running the engines at high speed to remove her from being aground. The extra fuel which is used plus the extensive damage which this can cause the engines for running at these high speeds will all be considered as a sacrifice in terms of a general average as if it were not for the engines running at the high speed using the excessive fuel plus the resulting damage to the engines, the voyage would not have been saved.
Marine Insurance Act:
(a) Open Cover
Cargo insurance can be affected either on facultative basis or on open cover basis. First we can see the respective concepts and features of these two different forms of cargo insurance.
Facultative Insurance
“Facultative” according to the dictionary means the “right of option” as opposed to
“obligation”. It is used in marine insurance practice in regard to a proposal for insurance where the insurer has the option to accept or reject the proposal by the assured. Generally, the term “facultative” is applied to the effect of a specified insurance, sometimes called a “named risk”, wherein the name of the carrying vessel, the goods to be insured and the voyage are all clearly defined in the insurance contract. Thus, for every facultative insurance contract, the
assured and the insurer have to negotiate the specific terms, conditions and rates for every single shipment.
Open Cover Insurance
As a contrast, open cover insurance is an obligatory contract binding both parties to its terms, rates and conditions. It is a form of long term marine insurance contract whereby the subscribing insurers guarantee to accept risks that are declared by the assured as they arise during the duration of the marine insurance contract.
The assured agrees to declare under the
open cover every risk coming within its scope in chronological order and not to place any of these risks elsewhere should he find it advantageous so to do. Open cover insurance is mainly used in cargo insurance, but it can also be used in hull insurance and liability insurance.
(b) P & I Clubs
Among the four types of marine insurance, the Liability Insurance (also known as Third Party Insurance) is covered by P and I Club – Liability Insurance is one in which the insurer undertakes to indemnify
against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards.
As per Law Dictionary, ‘indemnity’ means ‘compensation for wrong done, or trouble,
expense, or loss incurred’. It is apparently also a kind of ‘protection’ to ship owners.
Therefore the functions of ‘Indemnity Club’ and ‘Protection Club’ are similar in nature and the only thing different is the scope of risks covered. Consequently, the first ‘P&I Club’ was formed by amalgamation of an ‘Indemnity Club’ and a ‘Protection Club’ in 1886, providing a very
comprehensive cover on ship owners’ liability.
The ‘Club’, in the context of marine insurance, is defined as ‘an association of ship owners who have grouped together to insure each other on a mutual non-profit making basis.’ The definition of ‘Club’ has revealed the two basic characteristics of ‘insurance club’ which is different to usual commercial insurance companies.
Firstly, it is ‘an association of ship owners to insure each other on a mutual basis’.
The ship owners are the Members of the Club, but in the mean time, they are also the owners of the Club. The definition of ‘mutual’ means an equitable or fair sharing of the risks and liabilities
of each other. The second basic characteristic of ‘club’ is that it is an organization ‘not making profit’.
The P&I Clubs have the following advantages:
Control: The P&I Clubs are owned and controlled by their ship owner members.
Profit: P&I Clubs have no profit element.
Premiums: P&I Clubs reserve the right to make additional calls (premiums) on their
members if there is a particularly bad claim’s experience for the Club as whole.
Provision of Security: P&I clubs’ letter of undertaking can be provided at minimum
cost for provision of security and are generally accepted worldwide.
Scope of Cover: The scope of cover of P&I Clubs is not limited to the listed risks in
the published Club Rules.
Service: P&I Clubs employ well experienced and highly qualified claims handling staff that can provide the members with free advice or assistance on a wide range of matters.
(c) Warranty
Warranties
A warranty means a promissory warranty, that is to say a warranty by which the assured undertakes that:
Some particular thing shall or shall not be done, or
That some condition shall be fulfilled, or
Whereby he affirms or negatives the existence of a particular state of facts.
There are two kinds of warranties:
Express warranty
An express warranty may be in any form of words from which the intention to
warrant is to be inferred.
An express warranty must be included in, or written upon the policy, or must be
contained in some document incorporated by reference into the policy. An express
warranty does not exclude implied warranty, unless it is inconsistent therewith.
An implied warranty
Warranty, which may or may not be written in the contract but is implied as per law.
Examples of implied warranty
Where insurable property, whether ship or goods, is expressly warranted neutral, there is an implied condition that the property shall have a neutral character at the commencement of the risk, and that, so far as the assured can control the matter, its neutral character shall be preserved during the risk.
Where a ship is expressly warranted “neutral”, there is also an implied condition that, so far as the assured can control the matter, she shall be properly documented, that is to say, that she shall carry the necessary papers to establish her neutrality, and that she shall not falsify or suppress her papers, or use simulated papers. If any loss occurs through breach of this condition, the insurer may avoid the contract.
The effect of breach of warranty on Marine Insurance Policy
A warranty is a condition which must be exactly complied with, whether it is material to the risk or not. If it be not so complied with, then, subject to any express provision in the policy, the insurer is discharged from liability as from the date of the breach of warranty, but without
prejudice to any liability incurred by him before that date.
(a) Differentiate between the concepts of “rest hours” and “working hours” with
respect to STCW as amended and MLC, 2006.
Hours of work and hours of rest:
Normal working hours are based on an eight-hour day, with one day of rest per week.
Seafarer must not work more than 14 hours in any 24-hour period.
Seafarer must not work more than 72 hours in any seven-day period.
Seafarer must have at least 10 hours’ rest in any 24-hour period.
Seafarer must have at least 77 hours’ rest in any seven-day period
However, in the event of an emergency, or to assist other ships or persons in distress, the captain can suspend the work schedule.
The ship must keep records of hours of work and hours of rest, and the seafarer must receive an endorsed copy of your hours of work/rest.
IMO (STCW) / ILO (MLC) guidelines that the table of shipboard working arrangements is to be established “in a standardized format”, and this will facilitate understanding by seafarers
and competent authorities. The table should:
Cover the anticipated schedule of service at sea and in port for each seafarer
employed on board;
Refer to watch-keeping duties as well as any additional work which is expected;
contain the maximum hours of work or the minimum hours of rest required by the
laws, regulations or collective agreements in force in the flag State;
Provide a total scheduled work-rest-hour figure for each seafarer; and
Be written in the working language or languages of the ship and in English.
(b) Write down the provision of MLC 2006 for work schedule of young seafarers.
Young seafarers under the age of 18 years should not work more than 8 hours per day and 40 hours per week and overtime should be worked only where unavoidable for safety reasons.
Sufficient time should be allowed for all meals, and a break of at least one hour for the main meal of the day should be assured. A 15-minute rest period as soon as possible following each two hours of continuous work should be allowed.
Exceptionally, the provisions above need not be applied if:
They are impracticable for young seafarers in the deck, engine and catering
departments assigned to watch-keeping duties or working on a roster shift-work
system; or
The effective training of young seafarers in accordance with established programmes approved by the Administration would be impaired.
Such exceptional situations should be recorded, with reasons, and signed by the
master.
The provisions 3 above does not exempt young seafarers from the general obligations of all seafarers to perform any hours of work necessary for the immediate safety of the ship, persons on board or cargo, or for the purpose of giving assistance to other ships or persons in distress at sea.
As soon as practicable after the normal situation has been restored, the master shall ensure that any young seafarers who have performed work in a scheduled rest period are provided with an adequate period of rest.
Duties and limits of liability of carrier under Hague-Visby Rules.
Duties and Liabilities
The carrier shall be bound, before and at the beginning of the voyage, to exercise due diligence to:
Make the ship seaworthy;
Properly man, equip and supply the ship;
Make the holds, refrigerating and cool chambers, and all other parts of the ship in
which goods are carried, fit and safe for their reception, carriage and preservation.
Subject to the requirements, the carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried.
After receiving the goods into his charge, the carrier, or the master or agent of the carrier, shall, on demand of the shipper, issue to the shipper a bill of lading showing among other things:
The leading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts, provided
such marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or coverings in which such goods are contained, in such a manner as
should ordinarily remain legible until the end of the voyage;
Either the number of packages or pieces, or the quantity, or weight, as the case may
be, as furnished in writing by the shipper;
The apparent order and condition of the goods:
After the goods are loaded the bill of lading to be issued by the carrier, master or agent of the carrier, to the shipper shall, if the shipper so demands, be a “shipped” bill of lading, provided that if the shipper shall have previously taken up any document of title to such goods, he shall surrender the same as against the issue of the “shipped” bill of lading, but at the option of the carrier such document of title may be noted at the port of shipment by the carrier, master, or agent with the name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted the same shall for the purpose of this Article be deemed to constitute a “shipped” bill of lading.
The CLC and FUND Convention as the two tier complementary scheme against pollution related claims.
The Civil Liability Convention (CLC) IS THE first Tier of oil pollution compensation
mechanism. CLC only deals with how much will an oil tanker owner pay, if his tanker is involved in a pollution incident. An oil pollution incident means when the oil has actually come out into the marine environment.
This means, for example, if in a collision oil has come out only from one of the tankers, then the oil tanker owner from whose tanker the oil has come into the marine environment, will have to pay. Also, CLC is a compensation mechanism only and not a punishment or a fine. This means that after an oil pollution incident, the oil tanker will only pay if there is a claim. If however, there is no claim, then the oil tanker owner does not pay. CLC is applicable to persistent oils only [oils, which have characteristics of persisting (floating) on the surface of water – meaning different grades of crude oil when carried as cargo, as well as bunker pollution from oil tankers only).
CLC requires the following:
(iii) Strict Liability – this means that when there is a claim, then the tanker owner has
to pay without even waiting to find out who was at fault that resulted in the pollution incident. The oil tanker owner can later claim from the party at fault, but he has to pay now to settle the claims. Only in the following three cases the oil tanker will not have to pay anything:
Act of God.
Act of war or sabotage.
When the relevant Government authorities have not acted responsibly in
maintaining the navigational aids / depths of water within their area and
this leads to a pollution incident.
(iv) Compulsory Insurance Cover – the oil tanker owner is required to maintain a
compulsory insurance cover to cover his part of payment in an oil pollution
incident. He gets this insurance cover from his P & I Club (liability insurance).
After getting the required insurance cover, the oil tanker owner approaches the Flag State, who issues the oil tanker a CLC Certificate, which is always kept on
board. The meaning of CLC Certificate on board is that the money is standing by
with the P & I Club and will be paid by them to settle all claims after any oil
pollution incident.
The maximum amount to be paid by the oil tanker owner is as follows:
Up to 5000 GT = 4.51 million SDR.
5001 GT – 140,000 = (4.51 million SDR + 631 SDR/GT) SDR.
140,000 GT = 89.77 million SDR.
Fund Convention
Two years after CLC, it was realised that there needs to be more money in case the oil pollution incident is so huge that the total claims amount to be greater than what the oil tanker owner pays under CLC. Member countries at IMO decided to involve the oil importers by asking them to make an annual contribution to a FUND so that additional money is always standing by and to be given to people who make a claim after an oil pollution incident.
Therefore, the Fund Convention was created and this is known as the SECOND Tier of the oil pollution compensation mechanism. Fund Convention requires
only the oil importers who import 150,000 MT or more of oil per annum to make an annual contribution to a Fund known as International Oil Pollution Compensation Fund (IOPC Fund with headquarters in London).
Therefore, any person / organisation who has imported 150,000 MT of oil in the previous year is called a ‘contributor’ and therefore the ENTIRE amount of oil imported by him is used to calculate his contribution and this is known as the
contributing oil (for example, if a person has imported 175,000 MT of oil in the previous year then he qualifies as a contributor and the entire amount of 175,000 MT will be used to calculate his contribution to the IOPC Fund. His ‘contributing oil’ will be 175,000 MT.
Please do not make the mistake by thinking that only 25000 MT will be used for
calculation. 150,000 MT figure is used only to decide whether a person is a contributor or not). Also, the maximum amount available for EVERY INCIDENT PER YEAR is 203 million SDR and this includes the payment by the oil tanker owner under the CLC (CLC +FUND = 203 million SDR).
Requirements for voyage general permit under NPDES regulations prior calling on to US ports.
Water pollution degrades surface waters making them unsafe for drinking, fishing,
swimming, and other activities. As authorized by the Clean Water Act, the National Pollutant Discharge Elimination System (NPDES) permit program controls water pollution by regulating point sources that discharge pollutants into waters of the United States.
Point sources are discrete conveyances such as pipes or man-made ditches. Individual homes that are connected to a municipal system, use a septic system, or do not have a surface discharge do not need an NPDES permit; however, industrial, municipal, and other facilities must obtain permits if their discharges go directly to surface waters.
In most cases, the NPDES permit program is administered by authorized states. Since its introduction in 1972, the NPDES permit program is responsible for significant improvements to our Nation’s water
quality.
The federal Clean Water Act requires that all municipal, industrial and commercial facilities that discharge wastewater or storm water directly from a point source (a discrete conveyance such as a pipe, ditch or channel) into a water of the United States (such as a lake, river, or ocean) must obtain a National Pollutant Discharge Elimination System (NPDES) permit.
All permits are written to ensure the receiving waters will achieve their Water QualityStandards.
NPDES discharges can be permitted with an individual permit or covered under a general permit. Individual permits are written to address the specific design and applicable water quality standards to an individual facility while General permits authorize a category of discharges within a geographical area. The majority of construction sites and industrial facilities which discharge storm water are permitted under general NPDES permits.
Compliance Monitoring for NPDES
Environmental Protection Agency (EPA) conducts inspections of facilities subject to the regulations to determine compliance. EPA inspections involve:
Reviewing discharge monitoring reports.
Interviewing facility personnel knowledgeable of the facility.
Inspecting the processes that generate and treat wastewater.
Sampling wastewater discharges to navigable waterways and other points in the generation or treatment process.
Reviewing how samples are collected and analyzed by the laboratory.