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SHIP-TO-SHIP TRANSFER and an introduction to newCHAPTER 8 to MARPOL

and ANNEX 1

Presented by Captain Bob GilchristSafeSTS

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‐ Contractual responsibility‐ Cost management‐ Providing equipment‐ Sourcing and providing 

Support craft‐ Co‐ordinating personnel and 

equipment‐ Supportive local infrastructure 

(utility supplies, support services, etc.)

‐ Legal Compliance‐ Operational management‐ Client representation‐ Professional personnel‐ Operational  evaluation‐ Legislative compliance‐ STS Operational 

Supervision‐ Integration with a vessel 

team.‐ Maintaining Equipment

Minimising Risk

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IMO Chapter 8 – Implementation

• IMO adopted by Resolution MEPC. 186(59) a new Chapter 8 to Marpol and Annex I, aimed at the prevention of pollution during Ship-to-Ship Transfer of oil cargo

• Full implementation 1st April 2012

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Change in STS regulation by Marpol – implemented through Vessel ISM

• Say what you do

• Do what you say

• Record it

• Enforce accountability

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IMO Regulation – Marpol Chapter 8• Reporting requirement to appropriate authorities• Vessel specific STS Plan

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Reporting Requirement• 48 hours Notice to Authorities for Ops within territorial waters or EEZ

of a party to the convention• Coastal state to be given the name of the “Person in Overall Advisory

Control” (POAC).

The Administration, cargo owner / ship operator shall agree and designate a “Person in Overall Advisory Control”

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POAC – Qualifications / Experience• Management level International

Standard Certificate of Competency

• All STCW and Dangerous Cargo Endorsements up to date and appropriate for the ship

• GMDSS

• Cargo familiarisation course

• Attendance at a Suitable Ship handling course

• Oil spill response training

• Tanker loading/unloading

• Thorough knowledge of the transfer plan

• Thorough knowledge of the transfer area and surrounding areas

• Conducted a suitable number of operations in similar circumstances

• Oil spill response techniques and equipment familiarisation

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Responsibilities

POACAuthority to Stop the Op. or amend the plan

Responsible for the Ship/Ship Interface 

STS Superintendent

Coastal Authorities and Flag State

Vessel Crew

Vessel MasterResponsible for his own vessel

Designated by “The  Administration”

Experience of local area and resources unique to the STS 

operation. 

Professionally Qualified

Named in notification to Coastal State

Clearly Defined Responsibilities' on 

both vessels

Knowledge or ownership of the STS equipment

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Charterer Responsibilities

STS Provider/POACAppointed by the charterer

Flag State

Charterer

Port State

Vessel / OwnerLimited time/resources for due diligence

Often appointed on the basis of lowest 

cost

STS equipment testing not verified. 

No certificates

Professional qualifications never checked. Not valid.

Due diligence not usually performed

Charterers liability is not without time limit.STS provider may have limited liability.

Deficiency or Non‐Conformance

Ship‐owner has not complied with the law and has 3 year liability.Ship‐owner has no contractual relationship with STS Provider

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A non‐compliant vessel could be;

• Improperly filling in Oil Record Book• Not keeping proper records of compliance (records to be retained for 3 years)• Improper notification• Carrying out operations outwith the plan requirements of certified equipment 

and personnel.

Breach of STS Regulation

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Intertanko - Charter-party Clauses• Charterers have the right to order Owners to conduct ship to ship cargo 

operations at any safe port or place in accordance with the latest OCIMF guidelines. Owners warrant that the Vessel is capable of carrying out such operations.

• STS is Regulated under Marpol not OCIMF• Operations have to be in line with approved STS plan

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Intertanko - Charter-party Clauses• The other vessel(s) involved in such operations shall be acceptable to Owners 

and Charterers warrant that the other vessel(s) shall be in all respects seaworthy and capable of carrying out such operations. 

• Charterers shall obtain any necessary permissions to perform such operations from the relevant authorities.

• Refusal of the STS is reasonable if the daughter vessel cannot show compliance and is not suitable or safe to carry out the operation.

• The issue of permission is not related to acceptability and seaworthyness. It is a requirement to notify authorities in Marpol Signatory countries

• Can demurrage start before notification/permission given or accepted.

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Intertanko - Charter-party Clauses• Charterers shall arrange and pay for adequate fendering, securing and mooring 

equipment, any other equipment necessary for such operations, and any additional personnel, including mooring master if requested by the Master. Charterers shall reimburse Owners for any additional insurance premiums payable in respect of such operations.

• The regulation requires certified equipment.• The regulation requires a qualified person.• At the moment no additional premiums are paid towards P&I for STS. 

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Insurance(Statements for discussion)

• Owners have no contract with the STS Service Provider

• STS Service Providers indemnify themselves against claims

• Owners undertake no due diligence of STS Service Provider

• The role of POAC is unclear but some duties are equivalent to or above that of the master in respect to

the operation.

• Owners take on the liability for STS and rarely claim against charterer for damage

• The POAC should be insured under the vessel P&I (charterers would have to pay)

• P&I clubs should maintain list of audited STS companies (owners would have access)

• STS contractor to be oil major audited (similar to vessels)

• Service Provider Self Assessment managed by OCIMF (Similar to TMSA)

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Charter-party Clauses• If, at any stage before or during such operations, the Master considers such 

operations to be unsafe for any reason, including the adequacy of fendering, the weather and sea conditions, the condition of any other vessel involved and the competence of its crew, he may refuse or order immediate cessation of same. • Legal compliance with Approved STS Plan

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Charter-party Clauses• Charterers agree to indemnify Owners in respect of any liabilities, losses or 

costs, arising out of or related to such operations or their suspension. 

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Charter-party Clauses(Voyage charterparties only) Notwithstanding any other provision in this charterparty, all time from the arrival of the Vessel at the location of such operation(s) until the Vessel is ready to proceed on her voyage shall count as laytime or time on demurrage, without any exceptions to apply. Any time relating to the procurement or return of equipment or personnel required under sub‐clause 3 will be compensated at the demurrage rate. The cost of bunkers consumed while time is running under this sub‐clause 6 shall be for Charterers’ account.

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Example; Charter-party ClausesANY SHIP‐TO‐SHIP TRANSFER, THE STS SERVICE PROVIDER AND EQUIPMENT (FENDERS & HOSES) TO BE ALWAYS IN 

COMPLIANCE WITH MARPOL ANNEX 1 ‐ CHAPTER 8 AS WELL AS THE LATEST RELEVANT INTERNATIONAL 

STANDARDS & GUIDANCE OF OCIMF, PERFORMED AT LAWFUL AND CUSTOMARY PLACES, WEATHER PERMITTING 

AND SUBJECT TO MASTERS SATISFACTION WITH REGARDS TO SAFETY, WHICH NOT TO BE UNREASONABLY 

WITHHELD. THE LIGHTERING/RECEIVING SHIP TO BE MAXIMUM 20 YEARS OLD, DOUBLE HULL, SEAWORTHY, 

PROPERLY CLASSED BY A MEMBER OF IACS, FULLY INSURED AND ENTERED WITH A P&I CLUB MEMBER OF THE 

INTERNATIONAL GROUP OF P&I CLUB, REGISTERED UNDER AN INTERNATIONALLY ACCEPTABLE FLAG, WITH ALL 

THEIR CERTIFICATES VALID.

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Thank you for your attentionPlease feel free to ask questions

If you would like further information please contact us...

Tel: +44 (0) 1379 640021 (UK) orTel: +65 9818 6203 (Singapore)Email: [email protected]

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