Friday 22 July 2011

DIFFERENCES

1.Difference between ESP and CAS
2.Why a ship required to be registered ? in which convention does it come
3.what is development in charter party

liens: Lien is a claim or charge upon property securing the payment of some debt or the satisfaction of some obligation or duty
. The lien can be enforced by arrest and sale of the property
Maritime liens will come before mortgages and any statutory rights in rem (i.e. against the ship or cargo, etc.) and possessory liens

4.compensation regime
5.superstructure definition; is bridge a superstructure
6.third party liability – definition and example
7.reliability based on maintenance
8.developments in turbocharger nozzle rings flow
9.Differentiate between maritime liens and mortgage
10.Conflict between India and IMO, what will be the effect.
11.Equipment failure.
12.what are the C/E responsibilities as per ISM

13.What is a third party?
14.why do u require registry of ship.
What shipboard health and safety document plan
What are the essential features of quality management system?
15.what is a marine casualty?
16.Reliability barred index maintenance





Firing pressure influence. Reducing the firing pressure via injection retardation will lower the peak temperature and thus reduce NOx, but it also inevitably leads to higher fuel consumption.
Air quality control.
The partial pressure of the reagents oxygen and nitrogen can only be influenced by changing the specific amount of air entering the engine, or by changing the ratio between oxygen and nitrogen. The ratio can be changed by exhaust gas recirculation (EGR). If 15 per cent of the exhaust gas is recirculated, the resulting oxygen concentration in the intake air will be reduced from about 21 per cent (atmospheric) to around 18 per cent, and the impact on NOx formation will be significant

Water emulsification. It was verified years ago that water emulsification leads to a significant reduction of the NOx The influence of water emulsification varies with the engine type, but generally one per cent of water reduces NOx by one per cent.
Water injection or humidification. Water can also be added to the combustion chamber through separate nozzles or by means of stratified injection of water and fuel from the same fuel nozzle. The results are similar to the results of water emulsification, but water emulsification is simpler to apply and minimises water consumption.
Another way to introduce water into the combustion zone is by humidifying the scavenge air. However, knowing that too much water in the scavenge air may be harmful to the cylinder condition, and that we therefore use water mist catchers as standard after the scavenge air cooler, this method is not appealing.





IMO-
IMO’s purposes are stated in Article 1 of the Convention on the International Maritime Organization. The chief purposes can be summarised as:
to facilitate inter-governmental co-operation on State regulation and practices relating to maritime technical matters; and
to encourage and facilitate the adoption of the highest practicable standards of maritime safety, efficiency of navigation and prevention and control of marine pollution from ships.

IMO organs
* IMO’s main organs are its Assembly, Council, Maritime Safety Committee (MSC), Marine Environment Protection Committee (MEPC), Legal Committee, and Technical Co-operation Committee. There is also a Facilitation Committee and a number of sub-committees of the main technical committees.

Assembly
- is the highest governing body of IMO. It consists of all Member States and meets once every 2 years in regular sessions, and in extraordinary sessions if necessary. The Assembly is responsible for approving IMO’s work programme, for voting IMO’s budget and for determining IMO’s financial arrangements. It elects IMO’s Council. Plenary sessions of the Assembly are open to the press and public, but the majority of its work is done in Committee.
Council
- is composed of 40 Member States elected by the Assembly for 2-year terms beginning after each regular session. 10 Council members are Member States with the largest interest in providing international shipping services, e.g. Greece and Norway. 10 are other States with the largest interest in international seaborne trade. 20 are other States with special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world2.
* Council is the executive organ of IMO, responsible under the Assembly for supervising IMO’s work. It performs the functions of Assembly between sessions, except for making recommendations to governments on maritime safety and pollution.

Protocols
- are important treaty instruments made when major amendments are required to be made to a convention which, although already adopted, has not yet entered into force.

Conventions
- are multilateral treaty documents. (For notes on treaties see A01a.3.)
- are the chief instruments of IMO, being binding legal instruments regulating some aspect of maritime affairs of major concern to IMO, e.g. safety of life at sea or marine pollution.

Recommendations are not formal treaty documents like Conventions and Protocols and are not subject to
ratification. They provide more specific guidelines than treaty documents. Although Recommendations are not legally binding on governments, they provide guidance in framing national regulations and requirements.. Recommendations are generally intended to supplement or assist the implementation of the relevant provisions of conventions and, in some cases, the principal codes, guidelines, etc.

Codes are named, e.g. the International Code of Signals (1969) and the ISM Code. Many Codes, such as the Timber Deck Cargoes Code, are non-mandatory but may be used by Governments as the basis for national regulations. Other codes, such as the ISM Code, the IBC Code and the IGC Code, are mandatory under a regulation of a “parent” Convention.
Resolutions
- are the final documents resulting from the agreement by the IMO Assembly or a main committee (e.g. MSC or MEPC) of some matter such as an Amendment or Recommendation.
Amendments are made by adoption of a Resolution,

Convention on Limitation of Liability for Maritime Claims, 1976 LLMC 1976 LLMC Protocol 1996
Specifies limits of liability for claims for loss of life or personal injury, and property claims
(such as damage to other ships, property or harbour works). Limitation amounts are expressed
in terms of “units of account”, each unit being equivalent in value to the Special Drawing
Right (SDR) as defined by the International Monetary Fund (IMF). For personal claims,
liability for ships not exceeding 500 tons is limited to 330,000 SDR (equivalent to around
US$422,000). For larger ships, additional amounts are based on a tonnage scale. Provides for
a virtually unbreakable system of limiting liability. Declares that a person will not be able to
limit liability only if "it is proved that the loss resulted from his personal act or omission,
committed with the intent to cause such a loss, or recklessly and with knowledge that such
loss would probably result".

ILO
ILO’s main purpose is to raise world labour standards by building up a code of international law and practice.It forms policies and programmes to help improve working and living conditions, enhance employment opportunities and promote basic human rights.
The ILO Conference convenes annually. Each Member State is represented by two government delegates plus an employer delegate and a worker delegate.
* Conference’s main job is to examine social problems and adopt international labour standards in the form of ILO conventions and recommendations.

ILO Convention No. 147
Minimum Standards Convention.
requires ratifying States to have regulations laying down for ships registered in their territory:
safety standards, including standards of competency, hours of work and manning;
appropriate social security measures;
shipboard conditions of employment and living arrangements where these are not already provided for by
collective agreements or courts;

requires ratifying States to agree:
- to hold an official inquiry into any serious marine casualty involving its flag ships, particularly those involving injury and/or loss of life, the final report of the inquiry normally to be made public (Article 2)
to ensure that adequate procedures exist for the engagement of seafarers on its ships and for investigation of
complaints in this connection and that adequate procedures exist for the investigation of complaints about
engagement of its own seafarers on foreign ships, or foreign seafarers on foreign ships in its territory;
to ensure that seafarers employed on its own flag ships are properly qualified or trained;
to verify by inspection, etc. that its flag ships comply with applicable international labour Conventions which it has ratified;
1920 Minimum Age (Sea) Convention
Placing of Seamen Convention
1926 Seamen’s Articles of Agreement Convention
Seafarers’ Hours of Work and Manning of Ships Convention, 1996
Working time is restricted to a maximum of 14 hours in any 24-hour period, and to 72 hours in any 7-day period. There must be a minimum of 10 hours of rest in any 24-hour period, or 77 hours in any 7-day period.

Flags of convenience (FOCs)
“flags of necessity” , “open registers” and “free flags”.
are designated by the ITF Fair Practices Committee, which decides which flags are FOCs and which are not.
The criteria include:
whether the country allows non-citizens to own and control vessels;
whether access to and transfer from the registry is easy;
whether taxes on shipping income are low or non-existent;
whether the country of registration does not need the shipping tonnage for its own purposes but is keen to earn the tonnage fees;
whether manning by non-nationals is freely permitted;
whether the country lacks the power (or the willingness) to impose national or international regulations on the shipowners using its flag.

Status of ISM Code
* The International Management Code for the Safe Operation of Ships and for Pollution Prevention (the ISM Code) -
came into force on 1 July 1998 for:
passenger ships of any tonnage, including high-speed passenger ships, on international voyages;
gas carriers of 500gt or over on international voyages;
oil tankers of 500gt or over on international voyages;
chemical tankers of 500gt or over on international voyages;
bulk carriers of 500gt or over on international voyages; and
high-speed cargo ships of 500gt or over on international voyages.

- came into force on 1 July 2002 for:
other cargo ships of 500gt or over on international voyages; and
mobile offshore drilling units (MODUs) of 500gt or over on international voyages.
- was amended in December 2000 by resolution MSC.104(73) and came into force in its revised form on 1 July 2002.
* National regulations gave earlier effect in some countries to the ISM Code’s requirements2.
Hull and machinery insurances to which the International Hull Clauses (01/11/02) apply are conditional on a valid ISM Document of Compliance and Safety Management Certificate being held by the Owners or party assuming responsibility for operation of the vessel (see G04a.2i)

Non-conformity: An observed situation where objective evidence indicates the non-fulfilment of a
specified requirement.
Major non-conformity: An identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action and includes the lack of effective and systematic implementation of a requirement of this Code.
Objective evidence: quantitative or qualitative information, records or statements of fact pertaining
to safety or to the existence and implementation of an safety management system element, which is
based on observation, measurement or test and which can be verified.
Observation: A statement of fact made during a safety management audit and substantiated by
objective evidence.

Declares objectives of Code as being to ensure safety at sea, prevention of human injury or loss of
life, and avoidance of damage to the environment, in particular, to the marine environment, and to
property (1.2.1).
Safety management objectives of Co should, inter alia:
1. provide for safe practices in ship operation and a safe working environment;
2. establish safeguards against all identified risks; and
3. continuously improve safety management skills of personnel ashore and aboard ships, including
preparing for emergencies related both to safety and environmental protection (1.2.2).
SMS should ensure:
compliance with mandatory rules and regulations; and
that applicable codes, guidelines and standards recommended by IMO, Administrations,
classification societies and maritime industry organisations are taken into account (1.2.3).

Interim certification
IDOC may be issued to facilitate initial implementation of Code when:
1. a Co is newly established; or
2. new ship types will be added to an existing DOC,
- following verification that Co has an SMS meeting Code’s objectives, provided , Co demonstrates
plans to implement a SMS meeting full requirements of Code within IDOC’s period of validity.
IDOC should be issued for not more than 12 months by FSA, an RO or, at the request of FSA, by
another CG. Copy IDOC should be placed on board so that master, if requested, can produce it for
verification by the FSA or organisation recognised by FSA, or for purposes of port State control on
operational procedures. Copy DOC is not required to be authenticated or certified (14.1).
ISMC may be issued:
1. to new ships on delivery;
2. when a Company takes on responsibility for the operation of a ship which is new to the Company; or
3. when a ship changes flag .
ISMC should be issued for not more than 6 months by FSA, an RO or, at the request of FSA, by another CG (14.2).
ISMC’s validity may be extended in special cases for not more than 6 months from expiry date by
FSA or, at request of FSA, another CG (14.3).
ISMC may be issued after verification that:
1. DOC or IDOC is relevant to the ship;
2. SMS provided by Co for the ship includes key elements of ISM Code and has been assessed during the audit for issuance of DOC or demonstrated for issuance of IDOC;
3. Co has planned a ship audit within 3 months;
4. master and officers are familiar with SMS and planned arrangements for its implementation;
5. essential pre-sailing instructions are provided; and
6. relevant information on SMS has been given in working language(s) understood by ship’s
personnel (14.4)

The International Transport Workers Federation (ITF) is a London-based democratic federation of worldwide transport workers’ trade unions, and includes NUMAST and RMT amongst its members.
FOC shipowners may sign the ITF Special Agreement. This requires owners to employ seafarers on the terms and conditions of the ITF Standard Collective Agreement, and to enter into individual contracts of employment which incorporate the terms of that Agreement. Owners who have signed the ITF Special Agreement will be issued with a “Blue Certificate”.

SOLAS regulation XI-1/3 (Ship identification number)10 applies to all passenger ships of 100gt and upwards and all cargo ships of 300gt and upwards. Every ship must be provided with an identification number which conforms to the IMO Ship Identification Number Scheme adopted by IMO (regulation 3.1). The ship’s identification number (the “IMO Number”) must be inserted on the certificates and certified copies thereof issued under regulation I/12 or regulation I/13 (i.e. the SOLAS “safety certificates”)
The IMO Ship Identification Number Scheme -
was introduced as a voluntary scheme, recommended in IMO Resolution A.600(15) and intended to enhance maritime safety and marine pollution prevention and to facilitate the prevention of maritime fraud.
It should be inserted on the Certificate of Registry and on all certificates issued under IMO Conventions. IMO recommend that it is also inserted on other certificates such as Suez and Panama Canal Tonnage Certificates.

CONTINUOUS SYNOPSIS RECORD
* SOLAS regulation XI-1/5 provides that, with effect from 1 July 2004, ships must be issued with a Continuous
Synopsis Record (CSR) which is intended to provide an on-board record of the history of the ship.
* The CSR will be issued by the flag State administration and will contain information such as the name of the ship and of the State whose flag the ship is entitled to fly (the flag State), the date on which the ship was registered with that State, the ship’s identification number (i.e. its IMO number), the port at which the ship is registered and the name of the registered owner(s) and their registered address.
* Any changes must be recorded in the CSR so as to provide updated and current information together with the history of the changes.

SHIP CLASSIFICATION
* “Ship classification” entails inspection of a ship and its components at all stages of construction from design to sea trials, and regular inspection throughout its life to ensure that it is maintained to the required standards of the classification society. It is valuable to insurers, shipbrokers, bankers, shippers and other parties needing reliable information about a vessel’s condition.

Classification is not mandatory for any particular class or type of ship. There is, however, as outlined in a statutory requirement SOLAS Party State ships to be designed, constructed and maintained in compliance with the structural, mechanical and electrical requirements of a classification society which is recognised by the flag State Administration in accordance with the provisions of SOLAS regulation XI-1/1,
Classification is in many cases a contractual requirement of:
hull and machinery underwriters14;
cargo underwriters15; and
P&I clubs,
- breach of which may render the insurance cover void.


Full Members of IACS have, as a minimum, 30 years’ experience as a classification society with their own
Classification Rules, a classed fleet of not less than 1500 ocean-going vessels of over 100gt with an aggregate total of not less than 8 million gross tonnage, and a professional staff of at least 150 exclusive surveyors and 100 technical specialists, all of whom must be qualified and trained in accordance with IACS Procedures.
* Associate Members of IACS have, as a minimum, 15 years’ experience as a classification society with their own Classification Rules, a classed fleet of not less than 750 ocean-going vessels of over 100gt with an aggregate total of not less than 2 million gross tonnage, and a professional staff of at least 75 exclusive surveyors and 50 technical specialists, all of whom must be qualified and trained in accordance with IACS Procedures.

Periodical surveys of existing ships
Maintenance of class depends on the programme of periodical hull and machinery surveys being carried out within stipulated periods. Survey programmes consist chiefly of special, annual and intermediate surveys.

* Special surveys of the hull are carried out at 5 yearly intervals in order to establish the condition of the hull structure to confirm that the structural integrity is satisfactory in accordance with the classification requirements, and will remain fit for its intended purpose until the next special survey, subject to proper maintenance and operation. Special surveys are also intended to detect possible damages and to establish the extent of any deterioration. Special surveys of machinery are carried out at the same intervals and have corresponding aims. Following satisfactory completion
of special surveys (as reported by LR surveyors), a new Certificate of Class is issued by the society.
* Annual surveys must be carried out within 3 months before or after each anniversary date of the completion commissioning or special survey in order to confirm that the general condition of the vessel is maintained at a satisfactory level. Following satisfactory completion of an annual survey, the Certificate of Class is endorsed by the LR surveyor.
* Intermediate surveys are carried out on all ships instead of either the second or third Annual Survey. Following satisfactory completion of an intermediate survey, the Certificate of Class is endorsed by the LR surveyor.
* Docking surveys are carried out by arrangement with the owner. Ships under 15 years old must be examined in drydock twice in any 5 year period; not more than 3 years may elapse between dockings. Ships 15 or more years old must be examined in drydock at 2-yearly intervals with extension to 2.5 years when a suitable high-resistance paint is applied to the underwater portion of the hull.
* Continuous surveys of the hull are permitted on all ships other than bulk carriers, combination carriers and oil tankers, which are now subject to enhanced surveys. All hull compartments are to be opened up for survey and testing in rotation with a 5-year interval between examinations of each part.
* Complete surveys of machinery (CSM) are carried out every 5 years, with parallel arrangements as for the hull.

Chief engineer’s examinations of machinery may be made where the society agrees to some items of the machinery being examined by the ship’s chief engineer at ports where the society is not represented, or, where practicable, at sea. A limited confirmatory survey is carried out at the next port where a society surveyor is available.
Where an approved planned maintenance system operates, confirmatory surveys may be held at annual intervals.
* In-water Surveys may be accepted in lieu of any one of the two Docking Surveys required every 5 years on ships less than 15 years old and are to provide the information normally obtained from Docking Surveys, so far as practicable. The beam must be greater than 30m (or as agreed), and a suitable high-resistance paint must have been applied to the underwater portion of the hull. (For notes on statutory provisions relating to in-water surveys,
* Inert gas systems must be surveyed annually. In addition, on ships to which an IGS notation has been assigned, a special survey of the IG plant must be carried out every 5 years.

Certificates of Class
* A Certificate of Class is a document issued by a classification society certifying the structural and mechanical fitness of a ship for a particular use or service in accordance with the rules and regulations laid down and made public by that society.
* A valid Certificate of Class may be a requirement of:
a Hull and Machinery insurer, for a ship being insured;
a P&I club, for an entered ship;
a cargo insurer, for the carrying ship;
the flag State Administration, for ship registration purposes;
a port authority or customs administration, for port clearance purposes.

Where a Certificate of Class is required but the ship is not classed, or is below a certain tonnage (e.g. 500gt), a Certificate of Seaworthiness may be acceptable.

Conditions of Class
* Where a class surveyor considers that continuance of a ship in class should depend on certain requirements being fulfilled by the shipowner, e.g. the repair at the next dry-docking of certain specified damage, or the inspection or testing of certain specified equipment, or the witnessing of the first loading of a cargo on a new ship, he will list these on the Interim Certificate of Class as “Conditions of Class Now Imposed”.
If conditions of class are not complied with, class is liable to be suspended or withdrawn by the society.

Suspension or withdrawal of class
* When the society’s regulations as regards surveys on hull, equipment or machinery are not complied with, the ship is not entitled to retain class. Class will be suspended or withdrawn, and a corresponding notation will be assigned.
* When it is found, from reported defects in the hull, equipment or machinery, that a ship is not entitled to retain class in the Register Book, and the owner fails to repair such defects in accordance with the society’s requirements, class will be suspended or withdrawn.

Three security levels are defined in ISPS Code, part A, section 2.1, as follows:
Security level 1 means the level for which minimum appropriate protective security measures must be
maintained at all times.
Security level 2 means the level for which appropriate additional protective security measures must be
maintained for a period of time as a result of heightened risk of a security incident.
Security level 3 means the level for which further specific protective security measures must be maintained for a limited period of time when a security incident is probable or imminent, although it may not be possible to identify the specific target
Every chemical tanker and every gas carrier, of any tonnage, must carry an appropriate Certificate of
Fitness for the carriage of the particular cargo on board. These certificates are required by the provisions of the various IMO Codes for gas carriers (see D03d.1) and for chemical tankers (see D03e.1).
Gross tonnage -
is expressed as a whole number, without any unit, e.g. “Gross tonnage: 8756”.
is a realistic indication of the ship’s size based on the moulded volume of the entire ship (hull plus erections and all enclosed spaces) without deductions, exemptions or special allowances.
is used mainly in the compilation of statistics.
* Net tonnage -
is expressed as a whole number, without any unit, e.g. “Net tonnage: 3367”.
is a general indication of the ship’s earning capacity, derived from a formula based on the moulded volume of
the cargo spaces, the number of passengers carried, the moulded depth of the ship and the summer draught.
is used by many authorities as the basis for charging dues, e.g. light dues, port charges and canal dues.



GMDSS;
communications systems for use in the global system;
search and rescue radar transponder (SART);
equipment carriage requirements – SOLAS; distress communications and false alerts; extracts from the
ITU Radio Regulations 1998; the management of VHF; VHF DSC, list of coast
stations for Sea Areas A1; MF DSC, list of coast stations for Sea Areas A2 and
limits of sea areas diagrams; HF DSC, list of coast stations for Sea Areas A3 and
A4; Inmarsat; COSPAS-SARSAT; Maritime Safety Information (MSI) under the
GMDSS; SafetyNET; NAVTEX; distress, search and rescue; Appendix 1 – GMDSS
Radio Log; index of stations and services; numerical list of shore based MMSI
numbers; Phonetic Alphabet and Figure Code; International Code of Signals.
The daily tests and checks referred to in Schedule 3 are as follows:
The proper functioning of the DSC facilities must be tested at least once each day, without radiation of signals,by use of the means provided on the equipment.
Batteries providing a source of energy for any part of the radio installations must be tested daily and, where necessary, brought up to the fully charged condition.
* The weekly tests and checks referred to in Schedule 3 are as follows:
The proper operation of the DSC facilities must be tested at least once a week by means of a test call, when within communication range of a coast station fitted with DSC equipment.
Where a ship has been out of communication range of a coast station fitted with DSC equipment for a period of longer than one week, a test call must be made on the first opportunity that the ship is within communication range of such a coast station.
Where the reserve source of energy is not a battery (for example, a motor generator), the reserve source of energy must be tested weekly.
* The monthly tests and checks referred to in Schedule 3 are as follows:
Each EPIRB and satellite EPIRB must be examined at least once a month to determine its capability to operate properly, particularly its ability to float free (where required to do so) in the event of the ship sinking, its security and for signs of damage.
Each search and rescue radar transponder must be checked at least once a month for security and signs of
damage.
Each survival craft two-way VHF equipment must be tested at least once a month on a frequency other than 156.8 MHz (VHF Channel 16).

Part A of the STCW Code is mandatory and contains, for example, tables of minimum standards required of seafarers. Part B is only recommended and contains guidance and advice intended to help with implementation of the revised Convention.
The White List
* Under regulation 7 of chapter 1 (General Provisions) of STCW 95, Parties must provide detailed information to IMO concerning administrative procedures taken to ensure compliance with the Convention, education and training courses, certification procedures and other factors relevant to implementation. This information is used by IMO’s Maritime Safety Committee to identify complying Parties. Other Parties will then be able to accept certificates issued by these Parties. (No proof of compliance was required under STCW 78.) Countries assessed by IMO to be properly implementing STCW 95 are placed on a so-called “White List”

Dry bulk carrier market categories
* For charter marketing purposes, dry bulk carriers are categorised by owners, charterers and brokers, and in market reports, as outlined below.
Handysize bulk carriers are vessels in the range10,000-29,999 dwt.
Handymax bulk carriers are vessels in the range 30,000-49,999 dwt.
Panamax bulk carriers are vessels in the range 50,000-79,999 dwt.
Capesize bulk carriers are vessels of 80,000 dwt or more.


Tanker market categories
* For charter marketing purposes, tankers are categorised (by owners, charterers and brokers, and in market reports) as outlined below.
Handysize tankers are vessels in the range 27,000-36,999 dwt.
Handymax tankers are vessels in the range 37,000-49,999 dwt.
Panamax tankers are vessels in the range 50,000-74,999 dwt.
The London Tanker Brokers’ Panel determine market rates under a freight billing system called “Average Freight Rate Assessment” or “AFRA”. This allows an assessment to be made of a freight scale for tankers of various sizes,



Laydays -
- refers to a period of specified days (e.g. “Jan 8/15”) during which owners must present the vessel for loading.
laytime,
- should not be confused with which is the period allowed to the charterers for loading and/or
discharging without payment additional to the freight

Together, laydays/cancelling or, as it is often called, the “laycan” is the period within which the vessel must be presented at the agreed port or place. If the vessel arrives before the first day of the period, the charterers do not have to accept her until commencement of the agreed laydays. If she arrives after the final layday, the charterers are entitled to reject the vessel and cancel the charter

Notice of readiness
- is a notice to the charterer, shipper, receiver or other person as required by the charter party that the vessel has arrived at the port or berth, as the case may be, and is ready to load or discharge.

Demurrage
* If cargo operations are completed after expiry of the laytime, there is a breach of contract for which the charterers
would be technically liable for damages. Owners and charterers will often find themselves in this situation, and to avoid the expense and unpleasantness of legal proceedings, liquidated damages, termed demurrage, normally become payable by the charterers to the owners for each day, or part of a day, that the ship is detained beyond the time of expiry of laytime.

Despatch
* If cargo operations are completed before expiry of the laytime, a monetary reward, termed despatch or despatch money, is normally payable by the owners to the charterer.
* Despatch money or despatch is defined as an agreed amount payable by the owners if the vessel completes loading or discharging before the laytime has expired.

Where the charterers are not the owners of the goods but is acting only as an agent or broker for the loading of another party’s goods, he will probably be anxious to ensure that his liability for the cargo ceases once it is loaded. This is usually expressed in a Cesser Clause.
Lien Clause will also be included giving the owners the right to retain possession of the goods at the discharge port until outstanding debts are paid.
The two clauses are often combined in a Cesser and Lien Clause
Notice of Readiness” (NOR) shall mean the notice to charterer, shipper, receiver or other person as required by the charter party that the vessel has arrived at the port or berth, as the case may be, and is ready to load or discharge.
Preamble -
Identity of parties; identity and technical specifications of vessel; present position of vessel.
Suspension of Hire Clause will provide for hire payments to be suspended if the vessel is out of service for more than a specified minimum period due to drydocking, maintenance, machinery breakdown, lack of crew, damage, etc.
When cargo is shipped, the shipper may be given a mate’s receipt (or equivalent document) as acknowledgement.
The information in a mate’s receipt forms the basis of a bill of lading, which in many non-liner trades is prepared by
the shipper.
* The bill of lading functions as a receipt, as a document of title (if appropriately worded) and as evidence of a contract of carriage. Although a time charterer is a “disponent owner”, the contract of carriage evidenced by a bill of lading, if a bill is issued to a shipper, is between the real shipowner and the shipper. If the ship fails to deliver the goods described in the bill of lading, the owners (and not the charterer) will therefore be liable to the owners of the goods.
A Drydock Clause may provide for the vessel to be made available to the owners, free of cargo, after a stated period of notice for cleaning, painting, survey, routine repairs and maintenance. During this period she will be offhire.

A bill of lading -
- is a receipt for goods either received (before shipment) or shipped on board
- is good evidence of the existence and terms of a contract between the shipper and carrier
( A contract of carriage may exist without issue of a bill of lading, however.) A bill of lading is not a true contract, since it is usually signed by only one of the parties.
- is a document of title, signifying that the holder has the legal right to possession of the goods it describes (The right to possession should not be confused with the right to ownership, which will usually be determined by the terms of the sales contract.)
A clean bill of lading is a bill of lading bearing no superimposed clauses stating a defective condition or shortage of the goods. It states that the goods have been received “in apparent good order and condition...”, without further remarks as to their condition.
* A dirty bill of lading, also known as a “claused” or “foul” bill, is one claused with remarks such as “torn bags”, “rusty drums”, “three (3) more c/s in dispute - if on board to be delivered”, etc.
A mate’s receipt -
- is a receipt, issued and signed by the carrying ship’s chief mate (or the ship’s agent on his behalf), for goods received on board.
- is the document on which the details entered on the bill of lading are based; the information on both mate’s receipt and bill of lading should therefore be identical.

International conventions applicable to contracts of carriage
These sets of rules are:
the Hague Rules, which have been adopted by the majority of trading countries;
the Hague-Visby Rules, adopted by the UK and nearly 30 other countries; and
the Hamburg Rules, adopted by relatively few countries (and not favoured by shipowners since they are less to their advantage than the other rules).

Hague-Visby Rules
Article II provides that, subject to the provisions of Article VI, under every contract of carriage of goods by sea, the carrier, in relation to the loading, handling, stowage, carriage, custody, care and discharge of such goods, will be subject to the responsibilities and liabilities, and entitled to the rights and immunities, set out in the Rules.
The carrier has three basic obligations:
to ensure the vessel’s seaworthiness;
to care for the cargo; and
to issue a bill of lading where the shipper requests one.
The courts do not expect perfection from the carrier, but it has been held that stowage was improper where contamination of other goods occurred;
there was inadequate or no ventilation;
dry cargo was damaged by liquid goods; and
vehicles were secured only by their own brakes.
Article III paragraph 3 provides that after receiving the goods into his charge, the carrier, the master or the carrier’s agent must, if the shipper demands, issue a bill of lading to the shipper

piracy” as “an act of boarding any vessel with the intent to commit theft or any other crime, and
with the intent or capability to use force to further that act”.

Piracy deterrence
Prepare an anti-attack plan and ensure each person knows what to do if the ship is attacked.
Keep one bridge door locked (and both locked if pirates board the vessel).
Secure all doors to accommodation spaces, engine room, steering flat and funnel.
Lock all store rooms on deck.
Set extra watches, e.g. two lookouts on the bridge, one looking aft to detect small craft not detected by radars.
Assign crew members to man searchlights.
Have fire pumps running from sunset to sunrise, with fire hoses rigged on rails around the poop deck.
Ensure the poop deck is well illuminated. (At anchor or in port, keep all decks brightly lit.)
Ensure as far as practicable that pirates are aware that the ship is alert and prepared.

Essential elements in a salvage service
the salvage service must be voluntary;
the salvage service must be rendered to a recognised subject of salvage;
the subject of salvage must be in danger; and
the salvage service must be successful.

Special compensation
* If the salvor has carried out salvage operations in respect of a vessel which by itself or its cargo threatened damage to the environment, have failed to earn a reward at least equivalent to the special compensation assessable under the Convention (because, for example, of the low values of the vessel and/or cargo salved), the salvor will be entitled to special compensation from the vessel’s owner equivalent to his expenses, i.e. his out-of-pocket expenses reasonably incurred in the salvage operation and a fair rate for equipment and personnel actually and reasonably used

Lloyd’s Standard Form of Salvage Agreement, commonly known as “Lloyd’s Open Form” or “LOF”
In its early editions (up to LOF 1970), LOF was a straight “no cure, no pay” contract.
The Scopic Clause came into effect in August 1999. An improved edition, “Scopic 2000”, was introduced in
September 2000 and may be used in LOF 2000

Lloyd’s Open Form 2000 (LOF 2000)
- should be used where the ship or marine environment are at risk and the master has insufficient time to
request the owner to arrange salvage services on a the basis of a pre-agreed rate or sum.
- is a single sheet (2-page) document (whereas LOF 95 consists of 6 pages) in a simplified format.
- has a boxed front page layout with numbered boxes for information to be entered as follows: 1. Name of the
salvage contractors; 2. Property to be salved (vessel’s name to be inserted); “he property” as named includes her
cargo, freight, bunkers, stores and any other property thereon but excludes the personal effects or baggage of
passengers, master or crew); 3. Agreed place of safety; 4. Agreed currency of any arbitral award and security (if
other than US dollars); 5. Date of agreement; 6. Place of agreement; 7. “Is the Scopic Clause incorporated into
this agreement?” Yes/No; 8. Name and signature of person signing for and on behalf of the Contractors; 9.
Name and signature of Captain or other person signing for and on behalf of the property, with signature;
- contains 12 clauses, A to L,

SCOPIC Clause
The Special Compensation P&I Clause, known as the “Scopic Clause” –
- is supplementary to any Lloyd’s Open Form Salvage Agreement “No Cure – No Pay” which incorporates the
provisions of Article 14 of the International Convention on Salvage 1989.
- was introduced into LOF agreements
- as used with LOF 2000 is known as “Scopic 2000”.
- may be invoked at the option of the salvage contractor by written notice on the owners of the vessel being
salvaged.
- determines the method of assessing special compensation
- allows the vessel owners, once the Clause has been invoked, to appoint at their sole option a Shipowner’s
Casualty Representative (“SCR”) to attend the salvage operation
- allows the Hull and Machinery underwriter (or, if more than one, the lead underwriter) and one owner or
underwriter of all or part of any cargo on board to each appoint one special representative, called, respectively,
the Special Hull Representative and the Special Cargo Representative, to attend the casualty to observe and
report on the salvage operation in accordance with the terms in Appendix C of the Clause.


AMVER
- is a unique, computer-based, voluntary global ship reporting system used worldwide by search and rescue
authorities to arrange for assistance to persons in distress at sea. Through AMVER, rescue co-ordinators can
identify participating ships in the area of distress and divert the best-suited ship or ships to respond.
- is sponsored by the US Coast Guard.
Ships incur no additional obligation to respond to a “distress” beyond that already existing under international law.
Since AMVER identifies the best ship or ships to respond to a distress call, it releases other vessels to continue their voyage, saving fuel, time and payroll costs.



Mercantile Marine Departments were established in 1929 to administer the various merchant shipping laws and rules relating to registration, tonnage measurement, crew accommodation, loadline construction and safety of ship, etc. Their other functions include multifarious activities such as inquiries into shipping casualties holding of examinations for Certificates of Competency prescribed under Section 78 of the Act, inspection and approval of statutory equipment, including life-saving appliances, radio and other navigational aids, detection of overloaded and unsafe vessels, survey of vessels on behalf of State Government etc.


1. Cargo ship Safety Construction Certificate.
2.      International Load Line Certificate.
3.        Cargo ship Safety Equipment Certificate.
4.       Cargo ship Safety Radio Certificate.
5.           IOPP Certificate
6.        Safe Manning Certificate
7.certificate of fitness

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