PROPER EVALUATION OF RECORDS FROM SHIP TO SHIP (STS) OPERATIONS RECEIVE LEGAL RECOGNITION

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Record keeping of STS Operations has been statutory implemented within new MARPOL Chapter 8 of ANNEX I; however evaluation of such records remains within the duties and procedures of each tanker operator. Effectiveness of such evaluation is something that would be examined either from a future need, i.e. supporting evidence in a court of law, or from a commercial point of view from audits undertaken by oil majors.

OSIS of onlineSTS.net is a service assisting towards that direction.

Recently, a court award has been published from Bristol Crown Court from Judge Justice Eder regarding a dispute on STS clearance between FALKONER SHIPPING COMPANY and ARCADIA ENERGY PTE LTD.

Embiricos rejected a ship to ship transfer from its 265,000-dwt Falkonera (built 1991) to two Frontline VLCCs the 297,000-dwt Front Queen (built 2009) and the 275,000-dwt Front Ace (built 1993) arguing that both the guidelines and technical issues related to the difficulty of mooring two ships of the same side alongside each other, precluded VLCC to VLCC transfers.

The judge examined whether owners of VLCC Falkonera unreasonably withheld their decision by not providing their permission for the STS operation between the proposed VLCC?s.

The award was in favor of the charterers. The interesting issue is that amongst all arguments raised, those associated with safety issues were of main concern such as past STS experience and recorded incidents as well as STS Location weather conditions and proposed mooring arrangement of both vessels.

Owners of VLCC Falkonera stated that they had experienced an unforeseen STS Operation in the past with steel to steel contact between their VLCC Kos and MT Aker Smart 3. Although MT Aker Smart 3 was notorious for past steel to steel contacts as mentioned by witness Capt. Bob Gilchrist, this information was unknown to owners of MT Kos in order to mitigate their risk through relative actions. Furthermore the supporting fendering scheme utilized for that STS Operation was inadequate and not according to the OCIMF/ICS STS Guidelines. The judge concluded that the decision of owners of VLCC Falkonera on the basis of their past incident with MT Kos provided no reasonable basis for withholding their approval between the Falkonera and the Frontline Vessels.

The issue of evaluation of past STS Performance Data has been solved for members of onlineSTS.net. Prior providing their clearance decision to their charterers they have received available past performance data for the participating vessels, STS Service Providers and POACs. In this respect our members have a clear image of the stakeholders and therefore for the required risk mitigation measures (if).

The recent court award from Judge Justice Eder made clear that all STS Operations can be conducted provided that the technical characteristics of vessels permit same. OCIMF/ICS STS guidelines do not examine specific STS operations, such as those between same size vessels; however those can be safely conducted provided that a detailed risk assessment has taken place prior, inclusive of assessment of past records.

Indicatively it is mentioned that at OSIS there are records of same size vessel STS Operations which conducted a smooth operation under certain technical risk mitigation measures. There are also records of STS steel to steel contact incidents were in most cases weather conditions were an issue.

The court award may be found at http://www.lawandsea.net/List_of_Cases/F/Falkonera_Shipping_v_Arcadia_Energy_2012_EWHC_3678.html

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