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Chemical tanker claims Cargo shortage and contamination Chemical Tankers PAGE 1 John Wilson Master Mariner, MSc, FNI, FICS Director Technical Services Asia The American Club

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Page 1: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

Chemical tanker claims Cargo shortage and contamination

Chemical Tankers PAGE 1

John Wilson Master Mariner, MSc, FNI, FICS Director Technical Services Asia The American Club

Page 2: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 2 Chemical Tankers

Typical chemical tanker

… but the prior cases noted… 81 dead.

Page 3: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

Can be very expensive!

Claims can be avoided, reduced, and defended against by following best practices and having knowledge of industry practices.

Cargo shortage and contamination claims

PAGE 3 Chemical Tankers

Page 4: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

Review of cargo shortage claims

PAGE 4 Chemical Tankers

Page 5: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Bill of Lading / shore figure high

• Ship or shore tank calibration error

• Incorrect density, temperature, ullage

• Evaporation / settling out of water

• Mistakes made in calculations

• Leakage of cargo

• Cargo not fully discharged (ROB)

Causes of cargo shortage claims

PAGE 5 Chemical Tankers

Page 6: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Cargo name : listed on Certificate of Fitness?

• Description : quantity, quality, density, viscosity.

• Instructions : loading/carriage/discharge. Heating, segregation, vapour pressure – can ship comply?

• Cargo tank & pipeline coatings compatible?

• Tank cleaning requirements?

• Safety : Company circulars, IBC Code, MSDS, MFAG, PPE. Any additional requirements?

Before loading – information from Charterers / Managers

PAGE 6 Chemical Tankers

Page 7: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Prepare cargo plan – consider trim & stability criteria, free surface & sloshing limits, voyage temperatures (cargo expansion), adjacent tank temperatures (evaporation). Don’t exceed filling and weight limits for each tank.

• Equipment available on board : tested, calibrated, spare parts. Sampling equipment.

• Tank cleaning, test heating coils, pumps, lines, valves, vents, drains.

Before loading, preparing the vessel

PAGE 7 Chemical Tankers

Page 8: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 8 Chemical Tankers

Fixed measuring equipment at tank

… but the prior cases noted… 81 dead.

Page 9: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Ship / shore conference. Checklist completed.

• Joint Survey of cargo tanks. Accurate joint measurement of residue onboard quantity (OBQ). Consider : sediment, free water (dips from at least 3 locations, including aft most point), temperature of liquid residues, pipeline quantities, trim of vessel.

• If terminal measuring equipment used on board, it must be cross checked using ship’s equipment.

• How many shore tanks. (Record when tank changes)

Before loading, liaison with terminal

PAGE 9 Chemical Tankers

Page 10: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 10 Chemical Tankers

Checking height of sounding pipe

… but the prior cases noted… 81 dead.

Page 11: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Obtain samples from manifold and ‘first foot’ samples in first receiving tanks. Seal, label and record details of samples.

• Check specific gravity of cargo being loaded.

• Check all tanks, ensure no leaks to other tanks

• Hourly checks of ullages and temperatures of tanks being loaded. Calculate quantities.

• Maintain good records of all operations.

• Check draft visually.

During loading, monitoring the operation

PAGE 11 Chemical Tankers

Page 12: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Joint Survey of all tanks. Take several ullage readings, to account for roll or pitch. Full agreement needed on ullage and temperature for each tank. Do not rush the survey.

• Obtain samples from top, middle and bottom of each loaded tank. Seal, label and record.

• Owner’s surveyor to liaise closely with Chief Officer, to ensure their calculations and timings are consistent.

• Apply temp corrections for each tank. (Not average)

• Port log and other cargo & survey records must be complete, accurate and legible. Include records of weather and sea condition.

After loading, survey, documentation

PAGE 12 Chemical Tankers

Page 13: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

The shore will provide their figure for the cargo delivered amount, based on their out turn figure from the shore tanks.

This figure is then generally used as the Bill of Lading figure.

Bill of Lading figure

PAGE 13 Chemical Tankers

Page 14: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Master should not sign the Bill of Lading and should suspend the Agent’s authority to sign.

• Check with Vessel’s Experience Factor (VCF)

• Check ALL ship measurements & calculations (Are all parties using same ASTM tables?)

• Check ALL shore records and calculations (may need assistance of Owner’s surveyor to speed up this process on site)

Large difference between ship & shore quantity?

PAGE 14 Chemical Tankers

Page 15: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Incorrect ship figures of cargo received (error in ullaging, applying temperature, density or trim/list corrections etc)

• Pipeline quantity not included.

• Cargo leaked to other tank, or incorrectly loaded to another tank.

• Cargo still present within shore pipeline system, or in other tanks.

• Shore tank level gauge or metering system error.

Possible reasons for large difference in quantity

PAGE 15 Chemical Tankers

Page 16: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Master should inform the P & I Club, either directly or via the local Correspondent.

• Master should inform the ship owners & managers.

• Master should inform the ship’s agent, who should assist to notify the charterers.

• Commercial dispute : ship owners / charterers to discuss. To notify shippers, receivers etc as required.

• Master should issue Note of Protest and prepare copies of all relevant documents available.

What if reason for large difference is not found?

PAGE 16 Chemical Tankers

Page 17: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Ensure charterer voyage instructions and owner / ship manager procedures followed.

• Regular checks of cargo tank ullages, temperatures and pressures (day and night variations?). Keep good records.

• Immediately investigate any unexpected readings and report to owners/shipmanagers.

• Record ambient sea and air temperatures.

During the voyage

PAGE 17 Chemical Tankers

Page 18: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Prepare cargo discharge plan before arrival at discharge port.

• Ship / shore meeting. Witness and seal overboard valves as required, and record seal numbers.

• Joint Survey measurement and sampling of all tanks. Same careful procedures as at load port. Do not rush. Cross check shore measuring equipment.

• Investigate any differences with load port figures.

• Keep good legible records of cargo, sea and weather.

Before discharging, survey

PAGE 18 Chemical Tankers

Page 19: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Start at reduced rate, check over the side and other ship tanks, before increasing rate.

• Hourly records of all tanks levels, temperatures, pressures and manifold pressure.

• Obtain hourly figures of cargo received from shore. Compare with ship discharged figure.

• Pay close attention when stripping tanks, lines, pumps.

• Record all steps of discharge sequence and trim.

Discharging and stripping

PAGE 19 Chemical Tankers

Page 20: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 20 Chemical Tankers

Residues in a cargo tank

… but the prior cases noted… 81 dead.

Page 21: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Joint Survey of all tanks and void spaces. (not just the cargo tanks operated in this port)

• Closely monitor surveyors to ensure correct soundings taken, recorded and calculated.

• Witness cargo pipelines and pumps drained.

• Take samples of any tank bottom residues.

• Ensure ROB figure is agreed and acceptable to ship. ROB to be described as ‘unpumpable’.

After discharge, survey

PAGE 21 Chemical Tankers

Page 22: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Re-check all cargo tanks, pipelines and pumps for cargo ROB.

• Re-check calculations, corrections, draft, heel.

• Check all other tank quantities (leaks).

• Re-check load port calculations.

• Query / investigate shore tank and pipeline quantities.

Cargo shortage at discharge - What to do?

PAGE 22 Chemical Tankers

Page 23: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

Review of cargo contamination claims

PAGE 23 Chemical Tankers

Page 24: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Contamination by other cargo residues, sea water, fresh water or cleaning substances in ship or load port shore tanks, pipelines, valves, hoses.

• Incorrect valve operation by shore or ship or defective valves.

• Leaking heating coils in shore or ship tanks.

• Hydraulic valve oil leakages in shore or ship tanks.

• Cracks or coating failures in ship or shore tanks and pipelines.

• Dirty measurement or sampling equipment.

• Water ingress to tanks due poor structure (also through pipes, accesses)

Causes of cargo contamination claims

PAGE 24 Chemical Tankers

Page 25: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Cargo name : listed on Certificate of Fitness?

• Can cargo liquids be loaded safely and segregated (minimum two valve separation)

• Can cargo vapours be effectively segregated?

• Tank & pipeline coatings compatible?

• Can tank cleaning requirements be complied with?

Preparing the vessel for loading

PAGE 25 Chemical Tankers

Page 26: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Prepare cargo plan. Pay close attention to risks of contamination, particularly for highly re-active chemicals. Check crucial times in loading, what valves / pipelines involved?

• Vapours can also cause contamination. Consider vent line arrangements.

• Consider heat from adjacent tanks.

• Consider the performance of any inhibitors.

Load planning

PAGE 26 Chemical Tankers

Page 27: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Tank cleaning, rinse and dry. Conduct ‘wall wash’ tests. Also check pipes and valves.

• Test heating coils, pumps, lines, valves, vents, drains, including Pressure/Vacuum valves.

• Inspect tanks – check structure, coatings.

• Tank openings, sounding pipes, seals clean?

• Test all cargo system alarms, measuring systems & equipment. Record results.

Vessel preparation

PAGE 27 Chemical Tankers

Page 28: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 28 Chemical Tankers

Cargo tank wall and pipelines

… but the prior cases noted… 81 dead.

Page 29: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Ship / shore conference. Information on shore pipeline details, shore tanks, how many tanks, what times will change over? (Ship needs to obtain samples from ship tanks after change over of shore tanks). Agreement on samples from shore tanks to be given to ship. (should be 2 sets, 1 for ship, 1 for receiver)

• Joint Survey of cargo tanks, pipelines, valves.

• Agree procedure for sampling of ship tanks.

Before loading

PAGE 29 Chemical Tankers

Page 30: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 30 Chemical Tankers

Prepare sampling equipment at manifold

… but the prior cases noted… 81 dead.

Page 31: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Obtain samples from manifold and ‘first foot’ samples in first receiving tanks. Seal, label and record details of samples.

• Check all tanks, ensure no leaks to other tanks. Hourly checks of tanks & manifold.

• Obtain further samples from ship tanks after shore tanks have changed.

• Maintain good records of all operations.

During loading

PAGE 31 Chemical Tankers

Page 32: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 32 Chemical Tankers

Obtaining cargo samples

… but the prior cases noted… 81 dead.

Page 33: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 33 Chemical Tankers

Obtaining sample using closed sampler

… but the prior cases noted… 81 dead.

Page 34: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Joint Survey of all ship tanks. Do not rush.

• Obtain samples : top, middle and bottom of each loaded tank. Seal, label & record. (Accompany surveyors during sampling)

• Ensure shore provide shore tank samples to ship. (2 samples from each shore tank)

• Ensure good records of sampling and surveys. Record addition of any additive to cargo.

After loading

PAGE 34 Chemical Tankers

Page 35: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Ensure charterer voyage instructions and owner / ship manager procedures followed.

• Regular checks of cargo tank ullages, temperatures and pressures (day and night variations?). Keep good records.

• Immediately investigate any unexpected readings and report to owners/shipmanagers.

• Record ambient sea and air temperatures.

During the voyage

PAGE 35 Chemical Tankers

Page 36: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Prepare cargo discharge plan.

• Ship / shore meeting.

• Joint Survey measurement and sampling of all tanks. Same careful procedures as at load port. Do not rush. Closely check shore representatives sampling equipment.

Before discharge

PAGE 36 Chemical Tankers

Page 37: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Take regular in line samples at manifold.

• Hourly records of all sampling.

• After completion of stripping : Joint Survey of all tanks and void spaces.

• Closely monitor surveyors.

• Take samples of any tank bottom residues.

• Complete documentation and cross check.

Discharge, stripping, survey

PAGE 37 Chemical Tankers

Page 38: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 38 Chemical Tankers

Sealed and labelled cargo samples

… but the prior cases noted… 81 dead.

Page 39: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 39 Chemical Tankers

Substance in a cargo line

… but the prior cases noted… 81 dead.

Page 40: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 40 Chemical Tankers

Residue inside tank sounding pipe

… but the prior cases noted… 81 dead.

Page 41: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

PAGE 41 Chemical Tankers

Residue visible in sounding pipe

… but the prior cases noted… 81 dead.

Page 42: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

• Inform P & I Club directly / via correspondent.

• A suitable surveyor should be appointed to assist Owners and Master. Issue Protest.

• Endeavour to have all cargo discharged.

• Isolate any cargo suspected of being contaminated in a separate tank if possible.

• Explore options for blending, reconditioning or disposal of cargo.

If cargo appears to have been contaminated?

PAGE 42 Chemical Tankers

Page 43: Chemical tanker claims - The American · PDF fileChemical tanker claims . ... Joint Survey of all tanks. Take several ullage readings, to ... readings and report to owners/shipmanagers

Chemical tanker claims

PAGE 43 Chemical Tankers

Cargo shortage and contamination

Thank you