The 'Ins' and 'Outs' of Vetting
Possibly the most important part of chartering a tanker is the vetting process. Based on the resulting report you may decline to use the ship or deem it to be suitable for your needs. In the end, the process will provide you with valuable information to help you make an educated decision. A good place to start is by calling SPI Marine. After defining your firm's tolerance for risk, the type of tonnage (parcel / bulk / specialty) desired, the size (deadweight / cubic capacity) for your cargo, and timing of the potential fixture, SPI Marine can begin fixing the right ship for you.
1. What is vetting?
Simply put, ship vetting is the process through which a prospective charterer or buyer of a particular piece of tonnage will evaluate the subject vessel to assess its past performance, safety records, performance results, regulatory compliance and many other items.
2. Who Vets the Ship?
There's no easy answer to this one. Oil majors tend to put their faith in the Oil Companies International Ship Forum (OCIMF). OCIMF is a voluntary association of oil companies having an interest in the shipment of crude oil and oil products. They tout their mission as being the foremost authority on the safe and environmentally responsible operation of oil tankers and terminals, promoting continuous improvement in standards of design and operation. In general terms, a cadre of experienced ship's officers (now consultants) will visit a vessel and inspect it based on the OCIMF's SAFE protocol. A vetting can cost a prospective charterer upwards of USD $3,000.
OCIMF is just one of many protocols you can use, however. A similar but separate protocol is the Chemical Data Institute's (CDI) assessment program. CDI is an independent group, well-known process in the parcel trades, with its own statutes, but looks at the vetting process in a similar fashion as does OCIMF. It is often perceived that there are just two main initiatives working in this field: SIRE and CDI. In reality, nothing could be further from the truth.
Many firms, large and small perform their own vettings, based on their own particular requirements and protocol. Safety and prevention of pollution is almost always an important component of that process, but often, commercial requirements enjoy similar weight in the final chartering decision. How you approach the vetting process will be a function of how and where your firm does business. Talking to your ship broker may be the right place to start.
3. Why Are Ship Vettings Performed?
According to CDI, the goal of ship vetting is to increase safety at sea and to decrease pollution. The following issues are part of the broader perspective of ship vetting, says CDI:
- To check whether the ship complies in every respect with international legislation, with certain industrial standards and certain national laws (e.g. OPA 90 - a ship which does not comply is not allowed to enter any American port).
- To avoid major oil pollution cases because it damages the reputation of oil companies and it involves enormous financial responsibilities. At the same time, the environment is better protected.
- To increase safety on board as well as to better the safety management of a company.
- To decrease the danger of explosion and/or fire and the ensuing damages for the terminal installation and its surroundings.
- To ensure that cargo is not carried on substandard ships. There are too many implications if the cargo is damaged or lost due to substandard vessels, owners, operators or managers.
In reality, vetting should be a combination of both safety protocols and ship performance issues. In the end, without adequate commercial performance by the subject vessel, the safest of tank vessels will have little or no utility to a trader whose bottom line is adversely affected by poor pumping performance, inadequate stripping (cargo R.O.B.), and / or a missed arrival / discharge window due to engine problems. Some trading houses and the oil majors themselves keep detailed databases on ship performance criteria. This is an excellent idea.