Tanker-Operation-Documentation-ebook.pdf

A Brief Guide To Understanding
Commercial Operations
and Cargo Documentation
on Oil Tankers
Image Credit: Reinis Birznieks

About
Marine Insight©
“A Brief Guide To Understanding Commercial Operations and Cargo Documentation On Oil Tankers”
Publication date: March ’16
Author: Nihar Herwadkar
Editor : Raunek Kantharia
Published by: Marine Insight (www.marineinsight.com)
Graphic Design: Anish Wankhede
Copyright 2016 Marine Insight
NOTICE OF RIGHTS
All rights reserved. No part of this book may be rewritten, reproduced, stored in a retrieval system, transmitted
or distributed in any form or means, without prior written permission of the publisher.
NOTICE OF LIABILITY
The authors and editors have made every effort possible to ensure the accuracy of the information provided in
the book. Neither the authors and Marine Insight, nor editors or distributors, will be held liable for any
damages caused either directly or indirectly by the instructions contained in this book, or the equipment, tools,
or methods described herein.

About Author
Nihar Herwadkar has been with the A.P.Moller
Group since his cadetship. He is presently sailing
as Chief Officer with Maersk Tankers and holds a
Master's COC from the UK.
He takes active interest in
geopolitics and love reading
news articles and non-fiction
books.
Apart from playing with his 3-
year-old Labrador Retriever, a
good part of his holidays back
home are spent playing squash
and drinking scotch.
He's also a member of the
Nautical Institute and a proud
freemason.
www.marineinsight.com

Cargo Documentation on Tankers can be quite intimidating for the
uninitiated. Tanker commercial operations are a cut-throat business
and maximising profits is the only manner in which one can stay ahead
of the competition. A small mistake in tendering NOR or a wrongly
worded protest can result in substantial loss of revenue. It is hence,
very important to understand the jargon and know what documents
are required and when.
To begin with, let’s briefly discuss what happens behind the scenes
before the cargo is fixed one by one in following chapters:
INTRODUCTION
Image Credit: Alain Buitrago

1. Finding Cargo and Fixing the Vessel
2. Important Documentation at the Load Port
3. Important Documentation for the Terminal
4. Important Documentation For the Surveyor
5. Letter of Protest (LoP)
6. Important Documentation at the Discharge Port
7. Glossary
INDEX

Chapter 1
Finding Cargo and Fixing the Vessel

It all begins when the chartering department is trying to find cargo for
the vessel. Refineries and Crude terminals have cargoes to be shipped
out on specific dates only. It is the Shipping Company’s Chartering
Department’s responsibility to find a vessel which can best suit the
charterer’s requirements.
The Chartering Team shortlists a vessel depending on her geographical
location, size of the vessel and her current trade. This is when the
vessel is sent out several questionnaires to fill up and with multiple
stowage plan requests.
While fixing the vessel, time is of the utmost essence and it is
imperative that all queries and stowage plans are returned as swiftly as
possible. This could make the difference in a vessel winning or losing
the cargo.

When drafting stowage plans it is vital that the intake is maximised. A
rule of thumb is “More Cargo, More Freight”. Care should be taken to
ensure that bunker consumption, FW, Stores, un-pumpable ballast,
tank washings, etc. are accurately accounted for.
Overestimation of these deductibles leads to a loss of cargo intake,
while underestimating the deductibles can lead to overloading the
vessel.
Once a stowage plan is sent out, the vessel’s Master guarantees that
he can load the mentioned quantity provided that the density is either
Image Credit: Marc

as mentioned in the stowage plan or more. There is no room for error
so understanding of the vessel’s sag and deducing a reasonable
estimate of the constant is very important.
When the charterer has in principle accepted a vessel for potential
trade, it is said to be on Subs (which means subject to). Several
companies / brokers are usually vying for the same cargo and it is not
uncommon for several vessels to be on subs at the same time for a
single cargo. Once the charterers have finalised on one vessel, it is said
that the subs are lifted and that particular vessel is nominated for the
cargo.
Voyage Fixture, Charter Party and Voyage Orders
• The voyage fixture is generally sent out prior detailed voyage orders
and charter party abstracts. This will include a brief

snapshot with key details regarding the load port, cargo nomination
and discharge port
• Detailed Voyage Orders and Charter Party abstracts are
subsequently sent out to all vessels. Any mismatch between the
initial voyage fixture and the voyage orders should immediately be
taken up with the operations
Bunker ROB and Cargo Tank Preparation
• After receipt of the fixture / voyage orders, it becomes the owner’s
responsibility to get the vessel ready to load the cargo. Having
sufficient bunkers and preparing the tanks are two vital
components of this “responsibility”. For vessels on Time Charter,
bunkers become the charterer’s responsibility

• While preparing tanks, it should be borne in mind that the cargo
should be discharged in the same quantity and quality as was
loaded. Tank Preparations should be discussed with the Nautical
Department and a Tank Cleaning plan drawn up
• Several reputed publications (Shell Tank Cleaning Guide, BP Tank
Cleaning Guide, Dr. Vervey’s T/C Guide, etc.) are available that will
give specific guidelines on the methods to be utilised for tank
cleaning. The company’s SMS should always be consulted prior
commencing operations

Chapter 2
Important Documentation at the Load Port
Image Credit: Jørgen Grindevoll

Notice of Readiness:
After the “laycan” commences and the vessel is ready in all respects to
receive the nominated cargo, the Master is expected to tender a
NOTICE OF READINESS indicating that his vessel is ready in all respects
to commence the loading of the said cargo. This is the single most
important document since the vessel starts earning freight from the
moment the NOR is tendered. It is vital to understand specific clauses
in the voyage orders pertaining Notice of Readiness.
Two important points to remember before tendering the NOR are:
• Ship must be an arrived ship
• Ship must be ready in all respects to load / discharge the intended
cargo
Documentation at the Load Port

As per most charter parties, a ship is considered to be an arrived ship
after she has reached the customary anchorage for the port.
FREE PRATIQUE:
Free Pratique is a French term which means “permission granted to a
ship to have dealings at a port”. The requirement for Free Pratique is a
relic of the past which most modern ports have done away with.
The NOR should be tendered
via email / telex as well as by
hard copy. The email should
be sent out immediately
following the actual NOR
tendering time.
Image Credit: Anil Samotra

All necessary information is exchanged prior arrival port via email and
vhf. However, some ports still continue the practice of not granting
free pratique on arrival.
Achieving Free Pratique becomes the owner/master’s responsibility
and the charterers can deduct laytime if the vessel is not granted free
pratique on arrival (generally the NOR tendering time).
Hence, it is of utmost importance that if Free Pratique is not granted
on arrival, the Master promptly issues a Letter of Protest against the
delay in granting Free Pratique.
This is the only way in which owners can safeguard their legitimate
claim for laytime. Generally, it is advisable to issue this Letter of
Protest as soon as the NOR is tendered.

Chapter 3
Important Documentation for the Terminal

• ISGOTT Ship / Shore Safety Checklist: A prudent Chief Officer
would have this document printed out and ready for the Loading
Master.
Documentation for the Terminal (Loading Master)

Entering generic data such as location of Fire Plans etc. will save time.
Ensure that all deck officers fully understand terms A (Agreement), P
(Permission) and R (Repetitive) of the ISGOTT SSSCL.

• Key (Pre-Transfer) Meeting: One of the vital documents that comes
in handy in the event of incidents, disputes or demurrage claims.
Ensure that key data such as Maximum Loading Rate, Sequence of
Loading, Shore / Ship Stop, Maximum Topping Off Rate, Maximum
Starting Rate, Maximum M’fold Pressure, Line Displacement
requirements etc.
• Declaration of Security:
This document is only
required to be completed, if
the Port of Call is a non-ISPS
compliant port or if the
Vessel or Port are at
different Security Levels or
if requested by the PFSO /
CSO / Flag State
Image Credit: Buhanif

• Ballast Report / Ballast Exchange Form: It is the Master’s
responsibility to ensure that the vessel has exchanged ballast as per
local rules and regulations.
Usually, the agent provides information whether exchange is
required. Generally, the sea areas where ballast exchange is
required are found in the Ballast Exchange Plan (e.g. Red Sea,
Persian Gulf, US Waters, North Sea, Black Sea, etc.).
Some of the port officials in the Black Sea area are especially
particular about this document and scrutinize the form minutely.

Chapter 4
Important Documentation for the Surveyor

• OBQ Certificate prior Loading: Critical document prior loading of
cargo. Some vessels on crude trade follow a practice of showing a
small ROB prior loading which can nullify ROB at the discharge port.
However, on Product Tankers, it is undesirable to have any OBQ
present especially, if cargo grade being loaded is different from the
previous cargo.
• Empty Tank Certificate: Similar to the ROB / OBQ certificate but
with a signed statement from the surveyor stating as under:
Documentation for the Surveyor

The above document can prove to be beneficial in the event of
disputes arising out of sampling
• Last 3 Cargoes and Tank Preparation Report: This document is
generally requested by all Surveyors, especially on Product Tankers.
Having it ready will save time and effort. Ensure that the tank
preparation details are in line with the company guidelines and
relevant Tank Cleaning publications
• Vessel’s Experience Factor (VEF): VEF is the quantity loaded or
discharged as measured on the vessel (Total Calculated Volume-
Remaining On Board or On Board Quantity) divided by the Bill of
Lading (shore delivered at loading). Correct computation of the
qualifying and non-qualifying voyages is vital. Generally, the ship’s
maiden voyage, STS operations and the first voyage subsequent to
any major alterations are excluded. Inclusion of a minimum of 5

voyages and a maximum of 20 voyages is the industry practice
while calculating VEF
• Slops Certificate: A slop
report with a signature
from the Cargo Surveyor
indicating the Volumes,
Ullage and Interface of the
Slops on board is an
important document.
Some port authorities
choose to cross-reference
entries regarding Slops in
the Oil Record Book (Part
II) with the Slop Certificate

• Sample Witness Certificate: In the event of sampling disputes / off
spec cargo, it becomes important to prove that the vessel had
sampled the Cargo upon the commencement of loading in the
presence of the cargo surveyor

If the vessel can prove that the first foot sample and the manifold
samples are the same, then the owners’ interest are safeguarded
against claims. Some surveyors may refuse to sign this document. In
such cases, it should clearly be mentioned that the surveyor
refused to sign the document and a Letter of Protest Issued
accordingly
• Seal Certificate: Some terminals
/ Port Authorities require the
Cargo Surveyors to Seal the
Cargo Sea Chest and the
Overboard Valve prior loading /
discharging. A signed certificate
clearly indicating the seal
numbers should be obtained
from the Cargo Surveyor

• Other miscellaneous documents: Crew List, Ship’s Particulars,
Ballast Quantity Report, and Bunker Report are some of the other
documents that are required by Cargo Surveyors on a case by case
basis

Chapter 5
Letter of Protest (LoP)
Image Credit: Zura Kajaia

Before we list out the various protests that can and should be issued,
let’s briefly discuss the difference between a Letter of Protest and a
Note of Protest.
A Note of Protest is a declaration by the Master made in the presence
of a notary, magistrate, consul officer or other authority declaring that
the circumstances beyond his control have or may cause damage. It
has much a stronger legal standing, e.g. Weather damage to ship or
cargo.
A Letter of Protest on the other hand, is simply a statement of facts
issued by the Master to the concerning party.
We will concern ourselves with only the Letters of Protest since Noting
Protests is beyond the scope of this topic.

The following are the Letters of Protest that need to be issued on a
case by case basis:
• LoP for Delay in Granting Free Pratique: As discussed earlier, this
LoP is extremely important in safeguarding the owners interest in
the event of delay in granting free pratique. All laytime could be lost
from NoR tendered time until the commencement of cargo
operations if this protest is not timely lodged
• LoP for Delays during Berthing / Unberthing: There is a very fine
line between the time that is on charterers account and the time
that is on owners account. For e.g. the time from NoR tendered
until anchor aweigh is on charterer’s account.
However, the time from Anchor Aweigh until Pilot Onboard and
right until All Fast is on the Owners account and charterers are

entitled to deduct the laytime for this period. Similarly, after
completion, the charterers are entitled approximately 3 hours free
of charge for the documents (B/L, Cargo Manifest, Quality
Certificate, Quantity Certificate etc.) to be on board. After the
documents are on board, all delays are entirely on the owners
account. Hence, it is crucial to note down all delays and do your
best to mitigate the delays which are in the vessel’s control. Issue
the LoP with remarks explaining the delays
• LoP for Ullaging while Rolling / Ullaging in Open Sea Conditions:
These protests are more likely to be issued at Single Buoy Moorings
(SBMs) or during STS operations than when the vessel is alongside a
terminal. The rolling motion could give false Ullage resulting in a
significant difference between ship and shore figures. The protest
safeguards owners interest in the event of disputes

• LoP for Slow Loading: This protest should be issued if the loading
rate is lesser than the ship’s maximum loading rate. Care should be
taken to mention the max. Loading rate in the Pre-Transfer (Key
Meeting) between the Chief Officer and Loading Master. An
explanation for the cause of the slow loading rate (eg: Less Chicksan
Arms offered, size of reducers offered, shore pumping capacity,
etc.) should be indicated. Specific indication of the time is
important (i.e., the time the vessel would have completed loading
with full rate and the time actually taken) for demurrage calculation
• LoP for Short Loading: This protest should be issued if the final
loaded quantity (ship’s figure) is lesser than the vessel nomination
as per Charter Party / Voyage Orders
• LoP for Free Water in Cargo: This protest is more important for
Crude Oil Tankers than Product Tankers

Products loaded will generally be free of any free water. However,
to safeguard owner’s interest, it is prudent to issue this protest
even if no free water is detected. The protest will generally have a
remark “Insufficient time allowed for settling of water. This may
result in an increase of the quantity of water observed
subsequently.” This comes in handy if nil water is detected at the
completion of loading but water is detected later in the voyage
• LoP for B/L Quantity: Due to various reasons, the ship’s figure and
the B/L figure will never be the same. Hence, irrespective of the
percentage of difference, a protest should be issued after applying
the VEF, indicating the difference in quantity and the percentage of
difference
• LoP for B/L Issuance: This is a generic protest which follows up on a
document issued by the Master called “Notice of B/L” which

instructs the terminal to issue a B/L incorporating the New Jason
Clause, Clause Paramount, Both to Blame Collision clause, etc.
More often than not, these clauses will not be included in the B/L
and hence this protest becomes a necessity.
The above is not an exhaustive list of protests. For other incidents /
issues, a general Letter of Protest can be issued with appropriate
explanation for the protest. (e.g. Damage to vessel structure, different
tables used, unsafe operations, etc.)

Chapter 6
Important Documentation at the Discharge Port
Image Credit: Dilan Chathuranga

At the discharge port, most of the documents remain the same except
for the wording.
The following are the important documents which are vital for
Discharge Ports:
• PUMPING LOG: Key document for Demurrage claims. It is very
important to maintain the Maximum Allowed Pressure at the
Manifold as discussed in the Pre-Transfer Meeting.
Appropriate remarks should be entered regarding any slowdowns,
stoppages etc. with reasons. In the event of disputes, this
document becomes vital in proving that the vessel had done all that
was required from her side. This document should be signed by the
Loading Master
Documentation at the Discharge Port

• ROB Certificate / Dry Tank Certificate: One of the most important
documents after discharging. Any remaining RoB should be
remarked as follows “ROB is un-pumpable by ship’s fixed pumping
system which are in good working order. “ This document is signed
by the surveyor
• CARGO RECEIPT: The Receivers are required to acknowledge receipt
of the cargo that has been discharged ashore. In case the receivers /
loading master refuses to sign this document, an appropriate letter
of protest should be issued
• LoP for Slow Discharge: Similar to the LoP for Slow Loading. This
LoP should be issued if the maximum allowable discharge rate /
pressure at manifold is less than the vessel’s maximum as indicated
in the Pre-Transfer Meeting
Documentation at the Discharge Port

Laycan: The time frame in which the Master should present his vessel
ready in all respects to load the nominated cargo. NoR shall be
tendered before the expiry of laycan
Laytime: The time available to the charterer to load (or discharge) the
chartered cargo free of additional cost over and above the freight paid
to the owner
Charterer: The Hirer. The person (or usually a company) that hires the
vessel for trade
Freight: The money payable by the charterer to the ship-owner for
carrying the cargo on the said ship
Voyage Charter: A charter party contract where the vessel is hired for
Glossary

one single voyage. Bunkers in this type of charter party remain the
Ship Owner’s responsibility
Time Charter: A Charter Party contract where the vessel is hired for a
specific period of time. The Vessel, Master and Crew are placed at the
charterer’s disposal for the entire duration subject to certain clauses.
Bunkers in this type of c/p become the Charterer’s responsibility
Demurrage: For lack of a better term, Demurrage is a penalty paid by
the charterer to the ship-owner for exceeding the laytime period in
loading / discharging a ship
Despatch: The exact opposite of Demmurage. This is the money paid
by the shipowner to the charterer for loading / discharging the vessel
earlier to the expire of laytime period
Glossary

This is generally done, when the vessel has a potential employment
opportunity available and the charterer will release the vessel upon
the payment. Legally, the charterer is entitled to retain the vessel until
expire of the laytime period
Onboard Quantity (OBQ): This is the quantity on board prior loading
Remaining Onboard (ROB): This is the quantity remaining on board
after discharging / part discharging a cargo. Any RoB at the discharge
port subsequently becomes OBQ at the Load Port
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Glossary

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