Tankship Operators Complain They Get Short End of the SIRE Stick

MarineLink.com
Monday, December 09, 2013
Tanker berth: Image courtesy of Torm

The vetting inspections of tankers by oil companies are proliferating in frequency, rising steadily in cost and, at an estimated $300m a year, are well on the way to running out of control, claim Intertanko as follows:

The Ship Inspection Report (SIRE) programme developed by the Oil Companies International Marine Forum (OCIMF) intended that tanker inspection reports should be shared by all OCIMF members. They are not. The cost of inspections should be shared by both parties. They are not. And to make matters worse, ship operators often have to pay the costs of luxury travel for inspectors.

INTERTANKO's Chairman, Graham Westgarth of GasLog Ltd, who had been re-elected for a third two-year term as Chairman of the Association, chaired an active Council discussion on the vetting of tankers at the autumn meeting of INTERTANKO'S Council in Hong Kong. Vessel inspections by charterers are a crucial part of tanker vetting that has effectively become every tanker owner’s ticket to trade.

“Vetting plays a vital role in safety, one which our members respect and welcome,” says Westgarth. “The highest quality owners want to distinguish themselves from those with lesser standards. However there are some very real concerns on the fact that the SIRE system is not being used by OCIMF members as it was intended, resulting in a multitude of unnecessary inspections: INTERTANKO’s Council expressed alarm at this trend.”

The cost of vetting has become prohibitive for tanker owners as charterers implement fragmented vetting strategies, insisting on performing their own inspections, at an average cost in the region of $5,000, using their own individual criteria instead of accessing valid, standardised inspection reports already lodged in OCIMF’s SIRE system. In addition, tanker operators are obliged to cover unreasonable extra costs. One aggrieved INTERTANKO member says: “We want to see better transparency over vetting costs – especially inspectors’ travel expenses which can cost almost as much as the inspection itself, but for which we don’t receive a full breakdown.”

INTERTANKO and its long-established Vetting Committee have been working closely with OCIMF and CDI (the Chemical Distribution Institute), as well as the individual oil and chemical companies, on a number of vetting issues. But as part of its Sustainability Project, INTERTANKO has been developing a Code of Conduct which, among other things, aims to ensure that the costs of vetting inspections are apportioned in a fair and reasonable manner and that vetting is only used for safety and not commercial reasons.

INTERTANKO’s Managing Director Katharina Stanzel says, “INTERTANKO’s Council wants to encourage charterers, including traders and brokers, to use the SIRE system in the spirit that it was created by the oil majors, and to drive down the number of inspections and associated costs. This means aiming for one inspection per ship every six months by an accredited inspector, the report of which will be used by any OCIMF member wanting to vet that ship.”

It is time to rethink the tanker inspection and vetting machine.

 


People & Company News

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Why Maritime Museums Matter

With today’s focus on digital technology, mobile apps, enhanced reality and the overall digital landscape, the maritime industry often gets overshadowed, leaving some to ask,

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Contracts

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

J.F. Lehman Acquires Oldenburg's Heavy Equipment Group

J.F. Lehman & Company (JFLCO) informs it has signed a definitive agreement with Oldenburg Group Incorporated to acquire its Heavy Equipment Group, including both its defense and mining business units.

Tanker Trends

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Alfa Laval Launches DuroShell LPG/E Cargo Condenser

With the new Alfa Laval DuroShell plate-and-shell heat exchanger, Alfa Laval aims to strengthen its offering in LPG/E cargo reliquefaction with a construction that

Navy Discovers Malaysian Tanker

Indonesia's navy has found a tanker carrying almost US$400,000 worth of diesel that was taken by its own crew last week due to a commercial dispute, says a report in AFP.

Finance

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

Surveyors

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Researchers to Visit ‘Battle of the Atlantic’ Wreckage

Researchers from the U.S. National Oceanic and Atmospheric Administration (NOAA) and its partners are set to visit what remains of two ships—a German U-boat and

RS Fosters Cooperation with Palmali

Russian Maritime Register of Shipping (RS) and Palmali Shipping Company have signed a set of five-year agreements based on which RS will render the whole range

 
 
Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1065 sec (9 req/sec)