inspection vetting & screening

Bahrain- 2nd March 2010

Capt. Howard Snaith Master Mariner. FNI. Director Marine, Ports, Terminal, Environment & Chemical Section

INTERTANKO

Paris MoU PSC Familiarisation Course(Part 2) April 2011

Inspection Vetting & Screening

Capt. Howard N. Snaith FNIDirector Marine Ports Terminal Chemical Environmental & Security Section

Why do Oil Companies Vet Ships?

• Shipowner / operator is responsible for condition and operation of ship

• Oil companies have had vetting organisations for approximately 25 years

• Manage transportation risk:- risk = consequences x probability- risk = consequences x probability + public

outrage

• Public outrage depends on where, what, who and why

(Tim Knowles)(Tim Knowles)

The Inspection Process

• The Vetting Inspection is simply an inspection i.e. a “snap shot in time”.

• For vetting purposes a vessel does not pass or fail an inspection, but the inspection forms part of the overall screening process.

• Vetting Inspections may be undertaken by:

i. Individual oil/chemical companies or terminalsii. Accredited SIRE inspectors under the SIRE systemiii. Accredited CDI inspectors under the CDI system

Chemical Distribution Institute (CDI)

CDI Objectives:• To constantly improve the safety, security and quality performance of marine

transportation and storage for the chemical industry. • Through cooperation with industry and centers of education, drive the

development of industry best practice in marine transportation and storage of chemical products.

• To provide information and advice on industry best practice and international legislation for marine transportation and storage of chemical products to customers and stakeholders.

• To monitor current and future international legislation and provide experience, knowledge and advice from the chemical industry to the legislators.

• To provide chemical companies with cost effective systems for risk assessment, thus assisting their commitment to Responsible Care and the Code of Distribution Management Practice.

• To provide a single set of reliable and consistent inspection data which chemical companies can use with confidence.

• To provide the chemical industry with an independent organization for: – Training, qualification and accreditation of inspectors. – Development and maintenance of databases on which inspection and risk

assessment information can be promulgated.

Chemical Distribution Institute (CDI)

CDI-M (Marine) was created by the chemical industry to improve the safety and quality performance of bulk liquid shipping.

CDI-M now provides annual inspection reports on the world fleet of chemical and liquid petroleum gas tankers, over 600 ship owners with 3000 ships participate in the scheme.

The inspections are conducted by over 70 CDI-M Accredited inspectors located in ports around the world.http://www.cdi.org.uk/

http://www.cdi.org.uk/

Ships Inspection Reporting Program (SIRE)

The SIRE system is a very large database of up- to-date information about tankers and barges. Essentially, SIRE has focused tanker industry awareness on the importance of meeting satisfactory tanker quality and ship safety standards. Since its introduction, the SIRE Programme has received industry-wide acceptance and participation by both OCIMF Members, Programme recipients and by ship Operators. The expansion of Barges and small vessels into SIRE was inaugurated in late 2004.

http://www.ocimf.com/





What is the Screening Process?

• Process used by oil & chemical companies to assess acceptability of 3rd party vessels to carry their cargoes and/or call at their terminals.

• Inspections, both SIRE and CDI, provide information on operation of vessel and effectiveness of operator’s management system as input to vetting assessment.- They are NOT the vetting review


The Screening Process• It is necessary to understand that the actual vetting inspection is only a part of the

screening process, and the completed VIQ does not contain any overall verdict as to the acceptability or otherwise of a vessel.

• The results of the VIQ along with Owners Comments are used to assist with the actual screening decisions which is made separately by each oil/chemical company or other charterer, but the vetting inspection report is only a part of the overall screening process

• Each of the oil companies, terminals, Port State Control, that utilises the risk management tool of vetting has its own policies and systems that suit its individual needs. The SIRE or CDI inspection is part of the process of each vetting group, as many other aspects and considerations are taken into account before the final evaluation and decision is made to accept a vessel for its nominated use.

• The screening process begins with the operator of a vessel completing a Harmonised Vessel Particulars Questionnaire (“HVPQ”). Thereafter, there are three stages.

– First, an oil/chemical company carries out an inspection of the vessel. – Second, the inspector’s report (including any comments or observations) is provided

to the operator for their response, and then the report in a “digested” form together with the operator’s response, commonly known as “Owners comments”, will be uploaded onto the SIRE or CDI database, from which other members of the system can download it as appropriate

– At the third stage, individual members of the appropriate system oil companies, chemical companies, terminals, etc. can use the report to assist them in making their screening decisions.

The Screening process

• Both the SIRE & CDI systems involve the use of a standardised checklist / form by all the inspectors involved; known as the Vessel Inspection Questionnaire (“VIQ”).

• It may be that some organisations still maintain a system of “approvals” by which a vessel is accepted by the organisation for a period. However, in most cases the vetting department of an organisation will only screen a vessel and accept or reject her in relation to a particular piece of business for which the chartering department of the organisation is proposing to engage her.

• An actual screening decision will naturally be based not only on the vetting report but also (but not limited too), the individual vetting department’s perception of the owner / operator of the vessel, the vessel’s history, Port State Control record, terminal reports and also upon the particular business proposed, since the degree of risk involved will depend upon such things as the specific cargo, the loading and discharge ports, the length and route of the voyage, and indeed the time of year. Also, different organisations may be willing to accept differing levels of perceived risk. However, the vetting department will normally be willing to rely upon an inspection report downloaded from either the SIRE or CDI system, (provided the inspection was conducted sufficiently recently) and it would be unusual for a vetting department to call for a further physical inspection by one of its own inspectors.

Tanker Management Self Assessment

The most common reason for rejecting vessels is perceived management and compliance weaknesses within a company, NOT vessel-specific equipment “deficiencies”. Many ship owners have asked – what do the Charterers want?

The OCIMF Tanker Management and Self Assessment Programme (TMSA) was partly created to address this question and to lead to continued improvement in the tanker industry.

TMSA 2 provides an update that builds on operators experience with TMSA and feedback from the industry

Tanker Management Self Assessment

TMSA (1 & 2) was designed to:Complement the ISM system by encouraging self-regulation and continuous self-improvement

Enable ship operators to demonstrate their strong commitment to safety and environmental excellence

Many TMSA processes and Key Performance Indicators (KPIs) are already be in use by better Operators within their existing SMS

TMSA is intended as a tool for improving an SMS, NOT a replacement for the SMS.

The Screening Process

Individual vetting departments may differ in how recent they require an inspection to be in order to rely upon the inspection report.

However, it is understood that every vetting department will be willing to rely upon an

inspection report if the inspection took place less than six months previously. It is the

policy of some vetting departments to access all of the available SIRE reports when evaluating a vessel that has been

nominated for their business.

QMS & Screening

“The overall screening process should be viewed by the company as an integral part of its own

Quality Management System, through identifying its customers needs and thus its own quality objectives. By including the inspection and

screening process into its own core process of management review, planning, communication,

monitoring, feedback, preventative and corrective actions, measurement and analytical evaluation; a

company can meet its customers needs and expectations and ultimately achieve success”.

(Howard Snaith INTERTANKO)

A Typical Screening Review Process

Yes/No

Vetting Review

Decision

Market Intelligence

Crew’s Experience

Casualty Data

TMSA submission

Manning/Management Changes

Flag/Class Society Changes

Port State Detentions

SIRE Report

CDI Report

Vessel Age

DeficienciesFound

How Serious

Age

Terminal Report


Customers Requirements

Whilst there are a number of core similarities between the various oil and chemical

companies, most have nuances and specific requirements particular to their own

requirements for both hard ware requirements and software (human based

skills and experience)

(We will cover INTERTANKO’s efforts to address these through TOTS and vetting Publications later in this

presentation).

Vetting & PSC Work Program Items

Through our Vetting Committee we undertake various work program items

aimed at assisting our members achieve their objectives and hopefully working towards continual improvement for the

benefit of all concerned. We will review these as follows:

“Smart Vetting Working Group”Objectives & updates:

• The One Stop Shop Concept /Terminal Acceptance: We have raised the concept of formation of a common marine assurance “system” (not methodology), which would be accessible and useable by each party concerned in the screening process.

• Advising of Non Acceptance: We have raised the issue regarding provision of information to owners to enable them to address, what may be identified as outstanding in a prompt manner.

• Conditions of Class: - Transparency to report or not to report? Major survey of members 53% response validating concerns (submitted to OCIMF GPC discussions)

• Reward Systems to Reduce Inspections: Exploration of establishing further reward systems to benefit good owners.

• Linking TMSA and the VIQ: The group undertook a review of the leading and lagging indicators between the VIQ and TMSA- potential benefits from linking TMSA with the VIQ could result in a further shift to more self assessment.

• Officer Matrix Requirements: SIRE and CDI have advised that they are planning to seek information from owners regarding officer training systems in their respective forthcoming revised VIQ’s

• Port State Use of SIRE & CDI reports: We are reviewing the development of systems to increase the current low usage of SIRE and CDI reports by the Port State Control Authorities (Reduce the number of inspections and better target sub-standard ship)

• INTERTANKO Guide for Engaging Independent Ship Inspectors: Raised with SIRE: Potential for greater usage of our standard set of guidelines when engaging independent ship inspectors,

• Reporting to Oil/Chemical Companies: We have investigated and provided information to members regarding advice pertaining to “discoverability” in association with reporting incidents to oil and chemical companies and we are in discussion with OCIMF on this subject.

• OCIMF Committees assessing several concepts proposed

Presenter

Presentation Notes

Although many issues related to SMART vetting are dealt with within the totality of the work of the vetting committee, it has been decided at the committee’s last meeting to focus primarily on vetting and screening related matters which are particular to the chemical parcel tanker trade. The committee will therefore be coordinating with the INTERTANKO Chemical tanker committee and issuing a questionnaire to its members in order to pinpoint the primary issues and concerns

Use of SIRE & CDI VIQ’s by PSC

• PSC Access can be arranged via confidentiality agreements with both OCIMF and CDI.

• Use by PSC is minimal Circa 3% uptake.

• Exploratory concept to encourage greater use by INTERTANKO via extraction methods to give you the focussed information you require.

Tanker Officer Training Standards (TOTS) working group

• Ongoing Recognition as an Industry Standard

• Wider use of e-TOTS version available from Seagull

• Objectives – Ease Compliance with Officer Matrix Requirements

• Contact our publishers Marlin http://www.marlins.co.uk/tots.htm for E-TOTS and Paper version of TOTS

Winner of the Seatrade Awards 2009 for “Investment in People”

Presenter

Presentation Notes

TOTS was awarded the SEATRADE award in 2009. TOTS continues to be accepted as an industry standard, demand for both e-TOTS and the paper versions of TOTS also continues to grow along with the number of accredited training centres on a global basis who run element 4 of TOTS with regards to the simulator training and simulator verification sections for cargo operations regarding oil chemical or crude oil operations

http://www.marlins.co.uk/tots.htm

Tanker Officer Training Standards (TOTS) working group

3 X “Time in Rank” Training Books

1 X “Time in Company” Training Book

3 x Simulator Training Model Courses

3 x Simulator Verification Model Courses

2 x CD-ROM Computer Based Assessments

Presenter

Presentation Notes

This is an overview of the TOTS system showing the 4 elements of TOTS namely 1. Time in rank training records book 2. Time in company training record books 3.CD-Rom computer based assessments 4. The six simulator training and verification model courses

TOTS working group TOTS Approved Maritime Training Centres

There are now 3 major training centres accredited for TOTS simulator training courses:

•MTC Hamburg

•ARI In India

•COMPASS in Manila

•Italian Maritime Academy Philippines (IMAPhil)

All are Accredited to operate TOTS element 4 as follows:•Module 4A Chemical Tanker simulator Training

• Module 4B Chemical Tanker Simulator Verification

• Module 4C Product Tanker Simulator Training

• Module 4D Product Tanker Simulator Verification

• Module 4E Crude Oil Tanker Simulator Training

• Module 4F Crude Oil Tanker Simulator Verification

Presenter

Presentation Notes

A list of accredited training centres and their contact details are maintained on the INTERTANKO web site this list continues to grow and we are in discussions with an additional 3 or 4 training centres who are seeking TOTS accreditation as well potentially a training centres is seeking accreditation for running element 3 of the TOTS system regarding the CDROM computer based assessments

Vetting Publication working group

• 8th Edition Available as both • e-Book and Hard Copy.

Objectives

• Collect information from the Oil Majors & PSC

• Prepare and publish the information, making it available to the INTERTANKO membership.

• Consider other material which may assist members in dealing with vetting issues.

The Future:

•9th edition Scheduled for Autumn 2011

•Seafarers Vetting Guide scheduled for Autumn 2012 (NEW)

Presenter

Presentation Notes

Expanded publication, some 70 letters have been sent out requesting provision of information for inclusion on the 9th edition. Publication on track for Autumn 2011. A new vetting training book is also planned and on scheduled aimed at training seafarers in vetting with an accompanying CD Rom for publication in Autumn 2012.

Vetting Clause working group• Issue

Vetting clauses abound which are unreasonable and arbitrary and contrary to industry practice.

ObjectivesCollect all the clauses, which are in circulation today and publish them with an advisory commentary so that people can know and understand the benefits and pitfalls of each of the clauses.

• Developed a balanced model INTERTANKO Vetting clause with Documentary Committee which satisfies Owners & Charterers:

INTERTANKO Vetting Clause Book Released September 2009.

Presenter

Presentation Notes

The vetting clause booklet was a combined effort of the INTERTANKO Vetting Committee Legal & Documentary Committee Chemical Tanker Committee. Highly sought after and remains very useful. Members are recommended to be familiar with the pros and cons of the various vetting C/P which abound in the industry as many owners still fall foul of some of the more robust clauses as they can be frustrated and practically impossible to comply with particular since the change in philosophy regarding “approvals”

Terminal Vetting Database working group

• Access now opened to non-members of INTERTANKO, including tanker owners/operators, terminal owners/operators, PSC authorities and others with a legitimate interest in improving safety,

• Access to the TVD continues to remain free of charge, although access still requires agreement and compliance with the TVD's terms and conditions of use.

• Primary objective remains: The Safety of our seafarers and to benefit all with an active interest in improving the safety of the vessel at the ship shore interface.

The TVD designed with several levels of utility as follows• Company access TVD prior to your vessel calling at the terminal, review previous

comments submitted and advise your ship accordingly.• Improve safety at the terminal : If Any ships’ reports a score of “2” or less : (items rated

1-5) (<2 = low) The terminal is automatically notified, and asked to directly provide “Terminal Comments”

within 30 days for entry into the TVD. A “Low Score Alert” is sent to INTERTANKO and to the Chairman of the TVD Working

Group.INTERTANKO Vetting Committee regularly discusses selected Terminal Vetting Reports

(TVR’s) during their bi-annual Vetting Committee meetings.

Presenter

Presentation Notes

Access to the TVD continues to remain free of charge, although access still requires agreement and compliance with the TVD's terms and conditions of use. Primary objective remains: The Safety of our seafarers and to benefit all with an active interest in improving the safety of the vessel at the ship shore interface Access now opened to non-members of INTERTANKO, including tanker owners/operators, terminal owners/operators, PSC authorities and others with a legitimate interest in improving safety. Three levels of utility: 1. Review of terminals prior to vessel’s call 2. Operator/Terminal Cooperation on addressing observations 3. Special Handling By Intertanko for Terminals Resisting Cooperation The idea is simple to make terminals safer for ships and seafarers through a simple two step process 1. Accumulating information 2 Acting upon that information. You cant do the 2nd without having done the first So please utilize the system and input your reports it’s a “win-win” situation for all intertanko members and the general enhancement in safety An XML import facility is available for the TVD

“Inspection” working group

• “Vetting Inspection Feedback e-database” (VIFF) now meets SIRE Inspector Compliance Requirements!

Launched May 2010http://www.intertanko.com/templates/intertanko/issue.aspx?id=47207

• Updated “PSC Inspection Feedback e-database” (PSCIFF) meets IMO PSCO code of conduct guidelines!

Launched October 2010http://www.intertanko.com/templates/intertanko/issue.aspx?id=47207

Both provide a means of confidential feedback to INTERTANKO via simple easy online systems which can then be shared confidentially

with SIRE or the relevant Port State MoU respectively

Presenter

Presentation Notes

It is only fair and reasonable to expect commercial vetting inspectors and port state control officers to be obliged to act and undertake their work in accordance with clear, documented and publicised codes of practice. There are, however, times when the ships' masters and/or operators feel that there may be cause for concern and that compliance with these codes of practice may be in doubt. � Part 1 of the Questionnaire Vetting Inspection Feedback Forms (VIFF): Relates to Commercial Vetting inspections.�The questions contained within the VIFF have been revised and updated to reflect the SIRE Inspector Code of Conduct. Part 2 of the Questionnaire Port State Control Inspection Feedback Forms (PSCIFF): Relates to Port State Control inspections.�This feedback form has been revised in accordance to the IMO "Code of Good Practice for Port State Control Officers" as contained in document MSC-MEPC.4/Circ.2. Objectives : Provides a confidential mechanism to feed back directly to SIRE Provides a confidential mechanism to feedback directly to MoU’s and USCG Help INTERTANKO to help you improve existing systems by completing the simple online e-database feedback form. XML import facilities will very shortly be available to allow ships to email reports directly to the e-databases

http://www.intertanko.com/templates/intertanko/issue.aspx?id=47207

Feedback System on PSC Officers

Feedback System on PSC Officers

Specific Feedback will be shared with Paris MoU and Other Mou’s Globally


Vetting Inspection Feedback - sample evaluation

Q8 Was a close out meeting held and did the inspector discuss each observation raised and provide necessary references to support the

observations prior to leaving the vessel?

Yes93%

No7%

N/A0%

Presenter

Presentation Notes

Just one example of feedback regarding question 8 of the vetting feedback form Assimilation of data received from 1/1/2010 to 3/2011. 7% of reports received indicated that a close out meeting was not held following the inspection


Vetting Inspection Feedback - sample evaluation

Q10 Was an indication of the vessels acceptability or non-acceptability provided by the inspector at any time during his attendance onboard?

No53%

Yes39%

N/A8%

Presenter

Presentation Notes

A further example of the reports received regarding question 10 in relation to any indications if the vessel was acceptable or not at the time of the inspection Very worryingly 39% of inspectors provided an opinion on this issue

TMSA working group

Working group produced:

• TMSA 2 Gap Analysis Documenthttp://www.intertanko.com/templates/intertanko/issue.aspx?id=44647

• TMSA 2 Benchmarking database http://www.intertanko.com/templates/Page.aspx?id=46718

• Guidance on Change management http://www.intertanko.com/templates/intertanko/issue.aspx?id=41452

Presenter

Presentation Notes

The TMSA working group has produced a significant amount of tools for the greater use and benefit of the INTERTANKO membership A gap analysis document between TMSA and TMSA2 A TMSA2 benchmarking database which is widely used by many members A Guidance document on change management


http://www.intertanko.com/templates/Page.aspx?id=46718

TMSA working group LTIF AND TRCF

T. Rec. Case Frequency

as per 31 Dec 2010

Lost Time Frequency

as per 31 Dec 2010

LTIF Pool Average: 1.21 TRCF Pool Average: 3.62

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Presenter

Presentation Notes

LTIF pool average = 1.21 at the end of 2010 and reduction from 1.39 at the end of 2009 which indicates an ongoing improvement. TRCF pool average = 3.62 at the end of 2010 which is an increase from 3.23 at the end of 2009. However please note the spike in the TRCF which we believe is genuine and due to a particular series on incidents with one company, if this is removed however then the TRCF pool average reduces to 3.16 for 2010 which is a reduction from 3.23 when compared with year end 2009 and thus ongoing improvement.

TMSA working group CREW & OFFICER RETENTION

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Crew Retention Rate (Average 93.6%)

(As per 31/12/2009)

Officer Retention Rate (Average 91.3%)

(As per 31/12/2009)

Entries

Presenter

Presentation Notes

Officer & Crew retention benchmarking databases are also available Calculated over a 12 month rolling period Average crew retention for year end 2010 is 92% a decrease of 1.6% since year end 2009 Average Officer retention for year end 2010 is 95% and increase from year end 2009 of 3.7% In essence our fleet officer retention is improving but our crew retention is diminishing

TMSA working group VIQ Benchmarking

• Launched March 2010• Traffic Light System, incorporating either Red, Yellow or Green,

to indicate if the number of SIRE VIQ observations for your fleet are either above or below, the number of SIRE VIQ observations for the collective of the INTERTANKO fleet.– Red = above INTERTANKO fleet average – Green = below INTERTANKO fleet average

• Fleet Average Deficiency:

"Total number of deficiencies per SIRE VIQ chapter, divided by Total number of inspections“

• 12 month rolling period• Confidential


Presenter

Presentation Notes

Launched March 2010 The simple Traffic Light System: incorporating either Red, Yellow or Green, to indicate if the number of SIRE VIQ observations for your fleet are either above or below, the number of SIRE VIQ observations for the collective of the INTERTANKO fleet. Red = above INTERTANKO fleet average Green = below INTERTANKO fleet average Yellow = a match to the INTERTANKO fleet average

TMSA working group VIQ Benchmarking “Sample Output Data”

SIRE Chapters

Certification & Documentation 0.5 0.5 0.62 0.5 0.27

Crew management 0.5 0.5 0.33 0.3 0.43

Navigation 0.5 0.5 0.8 0.56 0.84

Safety Management 0.5 0.5 1.49 1.23 0.91

Pollution Prevention 0.5 0.5 0.68 0.67 0.44

Structural Condition 0.5 0.5 0.06 0.17 0.25

Cargo & Ballast System Petroleum 0.5 1.03 0 0

Cargo & Ballast System Chemical 0 0.71 0

Cargo & Ballast System Gas 0.5 0 0 0.84

Mooring 0.5 0.5 0.78 0.56 0.41

Communications 0.5 0.5 0.14 0.24 0.29

Engine & Steering Compartments 0.5 0.5 1.05 1.05 0.88

General Appearance & Condition 0.5 0.5 0.44 0.51 0.36

Petroleum Chemical GasIntertanko Fleet

Petroleum Average Intertanko Fleet

Chemical Average Intertanko FleetGas Average

Presenter

Presentation Notes

This slide shows a “sample” data set only and is not reflective of any entered data It can be seen that the VIQ benchmarking is divided into the 3 to take into account the 3 VIQ chapters regarding cargo a ballast systems for petroleum, chemical and gas so please take care when entering data. Again this proves very useful and well used by members

ILO 180 Joint working group HEiSC

ILO 180 MLC 2006 Guidance Book Hours Work & Rest

• Summary / overview of MLC/STCW /ILO180 work and rest hours.• An explanation of the current minimum safe manning certificate • Broad general guidelines regarding manning levels • Guidelines for compliance • Maintaining records/endorsement monitoring/auditing • Watch keeping patterns/Optional watch keeping systems • Providing evidence of compliance for Port State Control (PSC)

NOTE: INTERTANKO Bulletin August 2010: AMSA advised “…..recent incidents in Australian waters, where fatigue appears to have been a factor, have led AMSA to carry out more focussed examination on hours of rest as part of the initial PSC inspection. This may include an examination of other evidence, such as log books…..”

INTERTANKO expects all MoU’s to start to focus on this.Book Available from https://www.intertanko.com/shopping/itemlist.aspx?id=19076

Presenter

Presentation Notes

The INTERTANKO book was produced as a joint effort between the vetting committee and the INTERTANKO Human Element in Shipping Committee. Its critically important members are aware of this and the forthcoming Concentrated Inspection Campaigns which we know will be coming into affect when MLC comes into force so it is vital members are prepared for this and can provided the monitoring and obj3ective evidence regarding compliance

Confidential Accident Reporting Platform (CARP) working group

CARP database provides a simple functionality allowing a quick & easy updating of accident data.

Enable members to input their own incident data, on a fully confidential basis whilst allowing INTERTANKO to use the information entered so that:

Objectives:• Feedback to Members• Lessons can be learned and shared.• Similar accidents prevented.• Standardise accident data and categorisation.• Standardise simple accident analysis, root cause, direct cause and

corrective actions.


Presenter

Presentation Notes

Enable members to input their own incident data, on a fully confidential basis whilst allowing INTERTANKO to use the information entered so that: Objectives: Establishes a recognised industry platform Lessons can be learned and shared. Similar accidents can be prevented. Establishes an industry standardised series of categories of accidents, direct causes and root causes and corrective actions. Harness detailed accident data information which is currently not available to INTERTANKO Address some of the issues which have been highlighted within the wider issue of “SMART vetting" and will assist in the development of common standards for root cause analysis and corrective actions.


Thank you

Questions?

inspection vetting & screening

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