Purpose / Scope

To provide necessary guidelines to the Master and Responsible officers about conduct of ship’s
business in accordance with the Company policies and laid‐down procedures.
Applicability
Procedures listed under this section shall apply to all vessels in the Management.

Anti-Bribery / Corruption & Trade Compliance

Introduction
Company is committed to adhering to the highest standards of ethical behavior in the conduct of
its worldwide business dealings. It has a zero-tolerance approach towards all forms of unethical
behavior, bribery or corruption in the public and private sectors, and any other conduct that can expose
the Company, its Employees and Associated Persons to reputational harm or criminal prosecution.

As a global organization, the provisions of the various anti‐bribery legislation that exist today (such as
the US “Foreign Corrupt Practices Act” and the UK “Bribery Act 2010” etc) are likely to be applicable to
the Company as some of our Principals, clients and suppliers reside in these varied jurisdictions, and
they in turn require us to confirm in writing that we comply with their anti‐bribery laws in order for
them to do business with Company. Furthermore, Company employees are obliged to comply with
the laws of the countries in which they do business. Company commits to a “zero‐tolerance”
approach. Bribery is illegal and unacceptable in our organization.

Purpose
Company has introduced this Policy to:
a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts
of interest between personal and professional relationships.
b) promote compliance with applicable governmental laws, rules and regulations.
c) deter wrongdoing; and
d) require prompt internal reporting of breaches of, and accountability for adherence to, this Policy.

Scope
In this policy the word “Company” means any wholly owned subsidiary, joint venture partner of the
Company, associate, or affiliate company within the Fleet Group of companies. This policy applies to
all seafarers working onboard our managed vessels and shore employees of the Company, herein
referred to as “employees”, and any third party and their members, contractors, subcontractors,
associates, and affiliates who act on behalf of the Company.
Third parties such as contractors, agents or consultants engaged to work on behalf of the Company
must be made aware of this policy and it shall be a condition of such engagement that they, and their
employees, acknowledge and adhere to this Policy.

Responsibility And Enforcement

All employees of the Company are responsible for complying with this Policy. The Master of each vessel
is responsible for the implementation and the enforcement of this Policy onboard his/her vessel. He /
she shall ensure all employees, and any third party who has a business relationship with the Company,
have acknowledged and confirmed to comply with this Policy.

All seafarer’s, prior joining Company vessels are required to provide a written declaration that they
will always be in compliance with Company’s “Anti bribery / corruption & Trade compliance policy”.

Failure to comply with this Policy will be regarded as a serious breach of Company discipline and may
result in summary dismissal or disciplinary action against the employee concerned.

The Anti‐Bribery Policy

The Company prohibits offering, giving, requesting, or receiving any bribe, either directly or indirectly
through a third party, whether in cash or other inducement with the intention of:

• influencing the judgment of others regarding any business of the Ship or the Company.
• gaining an improper advantage when acting on behalf of our clients and Principals,
conducting business transactions or representing our clients and Principals.
• Influencing the use of authority, discretionary or otherwise, by any Government official to gain
business, or a business advantage.

Facilitation Payments
Facilitation and extraditing payments are prohibited. The purpose of these payments is to expedite or
to secure the performance of a routine government action (for example customs and port authority
inspections, visa processing and certain permits / licenses). An employee of the Company shall not pay
any type of facilitation payment in cash or any other form of inducement either directly or indirectly
to an official of the local government. Should the circumstance become inevitable, the Master will
obtain advice from Superintendent in‐charge and request the receipts and identification details of the
official making the demand. Details of any action taken or to be taken must be immediately reported to
superintendent / group in‐charge of the vessel and the associated Principal.

This Policy does not apply to situations where the life, liberty or health of any Company employee
or employee of an engaged third party is jeopardized.
Interpreting The Policy
It is not the intention of the Policy to prevent the following activities, particularly in relation to our
global role as a professional service provider in ship management services:

• Normal and appropriate hospitality and promotional expenditure.

• The giving and receiving of ceremonial gifts on a festival or at another special time.
• The use of any recognized and official fast‐track process which is publicly available to all on
payment of a fee.
Such hospitality, promotional expenditure or gifts must be in moderation and not place any
expectation on the recipient to reciprocate either in kind or by performing, or failing to perform,
any other task in return.

If there is any doubt as to whether an action might constitute a violation to the applicable Anti‐
Bribery Laws, the matter should be referred to vessel superintendent in‐charge for a decision before
proceeding. If in doubt, guidance should also be sought from the Company Designated Person Ashore
(DPA).
Preventing And Reporting Bribery
All employees of the Company have the responsibility to prevent, detect and report bribery and
corruption. Should you have any suspicion of bribery or violation of the applicable anti‐ bribery laws
committed by or against an employee of the Company, agent or other third party acting on behalf
of the Company, it must be reported to your superintendent in‐ charge, as soon as possible.
For reference a copy of the UK Anti‐Bribery Act (“Bribery Act 2010”) and its Guidance
(“Guidance of the Bribery Act 2010”) can be obtained from the Company.

Sanctions
The Company will comply with all applicable Sanctions legislations /regulations emanating from the
UK, EU, UN and US. Company is committed to report any breach of Sanctions to the appropriate
authority in a timely manner and in accordance with law.

Master is responsible for ensuring that the shore office is notified of proposed voyages or other
fixtures to any of the sanctioned countries i.e.

 Cuba
 North Korea
 Iran
 Russia/Ukraine/Crimea
 Syria
 Libya and
 Venezuela

Please be aware that above list is subject to revisions. In case of doubt, Master shall consult office prior
undertaking the voyage.

Masters to implement the following diligence practices to assess and mitigate sanction risks:

1) To ensure own vessel’s AIS is broadcasting identity & voyage information correctly, such as IMO
number, MMSI, other identifying information, vessel’s next port of call or other information regarding
its voyage correctly. Any practice of manipulating AIS data referred to as ‘Spoofing” which allows
vessels to broadcast different identity or voyage related information should be strictly prohibited and
such manipulation will result in huge penalties (including financial fine and legal action).

2) While ship to ship transfers can be conducted for legitimate purposes, STS transfers‐ especially
at night or in areas determined to be high risk for sanctions evasion or other illicit activity are
frequently used to evade sanctions by concealing the origin or destination of fraudulent transferred
petroleum, coal or other material. Master must inform office when any Ship-to-ship activity is
assigned to vessel. Prior to such transfers, office will advise vessel after verifying sanction compliance
of such activity and identity of the other vessel.

3) Master to verify the other vessel’s broadcast their correct information on their AIS such as Vessel
name, IMO number and Flag, prior engaging in STS operation. Master to verify shipping documentation
are accurate, including Bill of Lading that identify the origin or destination of cargo. If any doubts on
the authenticity of the document, Master to inform office immediately and seek assistance.

Master’s Public Relations

The role of the Master as the Company's public relations representative cannot be overemphasized.

We as Ship Managers, on behalf of the Owners, are in the highly competitive business of carrying
other people's goods by sea. As such we are part of a transport chain from the Shipper to the
Receiver. Charterers, Shippers, Receivers, Stevedores and Agents, all form their own impressions
from the vessel's appearance, from the manner in which the ship's business is conducted and from
the response and efficiency of those on board. It is not enough that good care of cargo is taken
during the voyage but the quality of the loading and discharging operations also affects the reputation
of the Owners and in turn, us as Managers. To enable us to give the excellent service, which is
undoubtedly expected of us, it is vital that a good rapport and understanding is established by the
Master with the Shipper's or Charterer's representative at the loading and discharging ports.

To ensure that these operations are up to the standards and satisfaction of the Shippers or Charterer,
a regular personal relationship should be fostered by the Master with their top management people
by mode of good public relations.

Cultivation of an established and friendly relationship on many occasions help resolve some operational
difficulties which the vessel may encounter.

The role of the Master and Officers on such occasions is vital to the Owner's as well as Ship Manager's
interests and, this should constantly be borne in mind. The fact that the Master may have to query
decisions and dispute facts will not detract and may even enhance our reputation. However,
reputations are not made overnight and the satisfactory conclusion of the ship's business must always
take priority.

The goal should be quality service and the Master's aim as Company's representative should be to be
able to convince that the best possible service will be rendered ‐ better than our competitors.

Seaworthiness
The seaworthiness of a ship is, understandably, the most important characteristic and the
consequences of becoming unseaworthy are serious. If, during the course of a voyage, the ship
sustains any damage which might affect the validity of any of her safety certificates, then this must
be reported immediately to the Office for making necessary arrangements to have the ship inspected
and take necessary remedial action to restore her seaworthiness and validity of the certificate.

It is worth noting that the seaworthiness of a ship is not measured against its capability to withstand
anything other than the ordinary action of wind and waves. Therefore, in case of heavy weather
damage to ship or cargo, the Master must note a "Sea Protest", after consulting the office. In such
instance, it is also important that weather is carefully and accurately recorded in the log book to
verify such claims of heavy weather and records such as copies of weather facsimile reports, must be
retained to substantiate the claim.

Overloading
The load line regulations must be always complied with. Overloading is an offence against
international agreements and endangers the ship.

Certificates, Surveys, and Inspections

Master must ensure that all statutory, class and Trading certificates are original and always kept
valid. Upon receipt of a new certificate, Master should verify the accuracy of its content, prior filing in
ships certificate file. Any discrepancy observed should be immediately notified to vessel’s
superintendent.
The ‘Document of Compliance (DOC)’ issued to the Company may be photocopy and must be carried on
board the vessel. The DOC copy need not be authenticated or certified. Port state control and other
regulatory authorities will ask for valid DOC copy as evidence of compliance with ISM code.

In addition, all other ancillary certificates including certificates of safety gears / installations, cargo
gears, test‐certificates for various ropes/wires/hawsers etc. will be closely monitored to ensure that
they are available and maintained valid at all times as applicable. All above certificates and builder's
certificates for hull, machinery and equipment are to be kept in Master's custody in appropriate
folders with proper index.

In respect of safety items all wire rope test certificates for lifeboat falls, pilot hoists, gangway falls etc.,
CO2 Test Certificate, Fire Extinguisher Certificates, SCBA air bottle test Certificates, Resuscepac air
bottle test Certificate, Halon spheres test Certificates, should be maintained in a separate safety
certificate file.

If the vessel has been issued with multiple load‐line certificates, only the current certificate should be
kept in certificates file/folder; non‐ applicable certificates should be kept away, secure in safe place.
Similarly, expired certificates should be stowed away separately.

In ports where original certificates are given to local Agent / authorities for port formalities, Master
must obtain a receipt from the concerned person and ensure that a photocopy of the relevant
certificate is retained on board.

The Master must be aware of the due dates for inspections and surveys and ensure that the vessel is
properly prepared. Any defects found, which cannot be rectified by the vessel, must be brought to the
attention of the Company in sufficient time to allow the work to be carried out before the survey.

The Master must ensure that sufficient crew is on board to assist the surveyor as required and that
all crew are on board for safety drills. Surveyors & inspectors are to be treated courteously and
given all practical assistance. The Master must ensure that a suitable record is maintained of all
continuous survey items.
Certificate of Registry
Legal Significance

The Certificate of Registry / documentation is a vitally important document for a ship trading
internationally.

It could accurately be considered as the ship's passport because its legal significance is similar to that of
a passport document. These can be summarized as follows:

i. It is a statement of the nationality of the ship. As such, the ship is entitled to the privileges of the
Flag State and is subject to the laws of the Flag State.
ii. It is evidence of the Ownership of the ship. As such, it is important, should any legal dispute
arise concerning trading of the ship, in which case the Owners can be established.
iii. It is a statement of the registered tonnages of the ship. The legal and commercial implications of
a ship's registered tonnages are widespread. Many international regulations impose
requirements for ships based on registered tonnages. Most port dues, wharfage, Pilotage fees,
canal dues, etc., are based on the registered tonnages of the ship.
iv. It is necessary for insurance purposes. It is unlikely that any insurance company would consider
ensuring a ship which was not registered under a Flag State.
v. It is one of the documents required to be produced to customs for reporting and clearance
procedures.

If Lost / Destroyed
The Certificate of Registry must be kept in a safe place on board, at all times. The consequences of
losing the certificate or its being destroyed are serious.

After an extensive and through investigation, when it is beyond doubt that the certificate is lost, a
report must be made to the Flag State consul at the port (or next port of call) by the Agent as soon as
possible. Application must be made for the issue of a temporary provisional certificate of registry.

The provisional certificate will last for a period until the vessel calls at the first port in the flag state. A
provisional certificate will be made up by the Consul on the basis of information provided by the
Master / Agent.

It is good practice to keep a photocopy of the original certificate in case of such an eventuality.

Guidance on Electronic Certificates

Electronic Certificates are issued by Administrations and recognized organizations, authorized to act
on their behalf. Flag States that use electronic certificates should ensure that these electronic
certificates include the following features:

a) Validity and consistency with the format and content required by the relevant International
convention or instrument. Protected from edits, modifications or revisions other than those authorized
by the issuer or the administration.
b) A unique tracking number used for verification of the electronic certificate issued by the
administration or recognized organization authorized to act on their behalf.
c) A printable and visible symbol that confirms the source of issuance.

Master must ensure the above and ensure that the vessel have instructions on board for Verifying
the information contained in the certificate including confirmation of periodic endorsement, when
necessary, should be available on board.

Third party inspector may request the Master to demonstrate the validity of the electronic certificate
by following the instructions available on board the vessel.

Cargo Documents
Notice of Readiness
Upon arrival at the port, the ‘Notice of Readiness’ (NOR) is to receive immediate attention. Guidance
of the relevant clause from the charter party must be taken.
‘Notice of Readiness’ is the time of tendering the vessel’s readiness, in all respects, to load / discharge
and must be tendered on arrival, at Pilot Station, at the port where cargo is to be worked. In case
where the berth is not available, the NOR must be tendered on arrival at the customary anchorage or
designated drift area as per instruction of charterers. If the customary anchorage or the drifting area
is out of port limit NOR must be re‐tendered as soon as vessel arrive port limit.
Record Keeping:
Notice of Readiness F2.7 Notice of Readiness

Early Departure Procedure (EDP)

The EDP was introduced to avoid the often-considerable delay awaiting the completion of the cargo
documents. Subject to such facilities being available to the ship, the Master should avail the EDP, if
Charterers require.
The procedure requires Master, upon arrival at the port, to indicate his acceptance of the EDP
according to the provision of governing Charter party. Then, the Bill of Lading and Cargo Manifest will
be prepared in advance, except for cargo figures and will be presented to the Master for signature.
The Master will authorize the Agent to sign all other documents on his behalf From (F2.12 Authority to
Sign BL on Masters Behalf but only after the Master has been consulted and reviewed B/L figures and
noted by protest any difference between ship and shore (B/L) figures. The Master retains the
right to and should protest, even by email for the ship/shore differences, if found upon vessel’s
departure.

Before the ship is released to sail, Fleet Manager Software will be made by the Shippers of the ship /
shore figures and if within acceptable limits, the ship will be permitted to sail.

On receipt of the relevant cargo figures from the Shippers, the Master must fill in the details on the
forms in his keeping.

Other Documents
When any ship is on a charter, the following documents which are normally supplied by them must
be forwarded to the Office from each port:

i. Port Log
ii. Ullage Report
iii. Stowage Plan
iv. Copy of Notice of Readiness
v. Copy of any Letter of Protest
vi. Dead freight Statements
vii. Dry tank / ROB certificate
viii. Pumping log sheets
ix. Statement of Facts
x. Any off‐hire reports

Port Logs
A "Statement of Facts" (SOF) is normally prepared for signature by Charterer's Agents, Shippers
or Receivers, which basically contains all information like time of arrival, time NOR tendered, time NOR
accepted, time Pilot boards, number of tugs, time mooring commenced and completed, status of
bunkers, lubs, fresh water on board, quantity bunkered while in port, time ballast discharge
commenced / completed, time hold passed fit for loading, time hoses connected in case of tankers,
time loading / discharging commenced, manifold pressures in case of tankers, time of delay if any, etc.

Consequently, the Master, before agreeing and signing the SOF should properly scrutinize the
document and compare with the entries made in the deck Log Book. Therefore it is of vital
importance that all the sequence of events are chronologically and diligently entered by the Officers on
duty giving special attention to periods when cargo operations have been ceased / commenced
owing to weather conditions or on the request of the stevedores, etc. This greatly assists in sorting out
all differences that may remain.
Any delays which are inserted in the SOF on account of the vessel, namely due to breakdown of ship's
equipment, waiting for crew to open hatches, etc. should be specifically verified and it must also be
ensured that all delays attributable to the stevedores are suitably logged. It must be endeavored to
keep all the delays on account of the vessel to the minimum which on various occasions have been
possible by way of good public relations by the Master.

To safeguard the Owner, in case of any future claim, upon completion at discharge ports it is prudent to
have the SOF clauses as "All cargo holds inspected and found empty of cargo and all cargo discharged in
accordance with the Bill of Lading". Also at the same time a statement should be made mentioning "All
cargo discharged in good condition" and have same attested by the Receivers / Stevedores.

Any reductions or restrictions of loading rate by the shore must be recorded in the port log. When
discharging bulk liquids, the ship should record hourly rail pressures in the pumping logs. On
completion of discharge, a terminal representative should acknowledge receipt of this record. If the
terminal representative declines to sign then the pumping log should be suitably logged.

In ships with the capability of loading concurrently with ballast discharge, when the ship
commences de‐ballasting whilst awaiting the shore to commence loading, the fact that the ship is
prepared to carry out both operations together must be recorded on the ship and shore time sheets.

It is also recommended that any pollution observed is recorded, no matter where it is coming
from, noting the position and direction of drift. Such observations may be invaluable if the ship is later
accused of causing pollution.

Contracts – Carriage of Cargo

A contractual agreement for the carriage of goods by sea is described, in legal terms, as a ‘Contract
of Affreightment’. In commercial practice, this type of contract is more commonly referred to as a
‘Contract of Carriage’. A contract for the carriage of goods by sea may take a variety of different forms,
of which the following are the most common:

i. A long term contract of Affreightment

ii. A charter party
iii. A Bill of Lading
iv. A waybill
Contract of Affreightment
A Contract of Affreightment is a type of contract used for the carriage of a specified type and quantity
of cargo in two or more separate shipments, usually over a period of time. For example, such a
contract may provide for the shipment of a large quantity of oil between certain specified ports over
a period of years.

Most contracts of affreightment oblige the carrier to provide a ship, at the intervals specified in the
contract, to carry the relevant parcels of cargo and the shipowner is then free to select which of the
ships can best meet the requirements. In many cases, each individual voyage is to be performed in
accordance with the terms of a particular voyage charter‐party, which may also be incorporated into
the contract itself.

The terms of individual contracts of affreightment vary considerably. In any particular case, the terms
of the contract, and any charter which is also incorporated, must be considered in detail.

Where the contract incorporates a specific voyage charter‐party, liability for cargo loss or damage is,
in most cases, determined in accordance with the relevant charter.

Charter Parties
Where the contract of carriage provides for the employment of the whole ship, the contract is usually
contained in a charter‐party.

The charter may provide for:

1. The lease of the ship itself (bareboat charter), or
2. The hire of the ship for a period of time (time charter), or
3. The hire of the ship for a specific voyage or number of voyages (voyage charter), or
4. The hire of part of the ship (i.e. less than the full cargo‐carrying capacity). A Charter Party of this
type is known as a space charter.

A slot charter is a form of space charter commonly used in the container trade, where both the ship‐
owner and the Charterer are members of the same container consortium or conference. Essentially, a
slot charter is similar to other forms of space charter. However, most slot charters are reciprocal
agreements made in a manner whereby the ship‐owner and the slot Charterer exchange space in each
other's ships.

Lay time
This is an agreed amount of time given to the Charterer in which to load and discharge the cargo. It is
usually stated as, "cargo to be loaded at the rate of X tonnes per day, Sundays and holidays excluded".

If the Charterer fails to load or discharge the cargo within the agreed lay time, he pays the Owner an
agreed daily amount, known as demurrage. On the other hand, if the Charterer loads or discharges
within the lay days, then the Owners reward him with an agreed payment, known as dispatch.
Important Clauses
Lay days / Lay Can
In a voyage charter, this is one of the most important terms. It sets a period of time within which the
performing ship must be presented at the load port and tender notice of readiness to load.

The importance of the terms lies in the fact that if it becomes clear that the ship will not get to the load
port by the cancelling date/time, the Charterers have no obligation to declare whether they intend to
cancel the charter‐party until the ship eventually arrives and tenders Notice of Readiness.

There can be few more serious problems facing a ship‐owner than his ship to be late for a Lay can
date. He is at the mercy of the market and the Charterers. If freight rates are now lower than they
were when the charter‐party was fixed, the Charterers might cancel the charter and employ another
ship at a cheaper rate of freight. Since the Charterer is under no obligation to declare his intentions
until ship arrives at the load port, the Owner could find his ship at a port, unemployed and with no
prospect of other business at that place.

Deviation Clause
Ordinarily, a ship performing a voyage charter is not permitted to deviate from the usual route,
except for a justifiable reason such as:
i. To save life
ii. To preserve own ship
iii. To disembark an injured seaman,

Unless the Owners and charters have agreed to it in the charter. If the ship deviates without
justification, then the voyage Charterers may claim damages they might suffer as a result of the
deviation. P & I insurance may also be voided if a deviation is not reported in advance and justified.

The Deviation Clause most probably will also state whether the Owners and voyage Charterers agree
that the ship may tow or be towed, e.g. "The vessel shall have liberty to sail with or without Pilots, to
tow or be towed, to go to the assistance of vessels in distress, and to deviate for the purpose of
saving life or property or of landing ill or injured person on board."
The Clause Paramount
The purpose of the clause paramount is to ensure that the voyage charter‐party and any Bills of Lading
issued under the charter, are subject to the provisions of either:
i. The Hague rules, or
ii. The Hague‐Visby rules, or
iii. A Carriage of Goods by Sea Act.

It effectively incorporates the provisions of one of these rules into the charter‐party.
The Lay‐time Clause
The object of the lay‐time clause is to spell out exactly what has been agreed as to how lay‐ time is to
be calculated for the loading and discharging port. It will enable the Master to establish how much
loading/discharging time the Charterers have been given. It will state what periods of time are not to
be counted against the Charterer's lay‐time.

It is not unusual to find the lay time dependent on the ship being able to work all hatches if required,
e.g. "Lay time for loading to be computed at the rate of 800 long tons per weather working day of
twenty four hours, provided five workable hatches (otherwise pro rata if less), Saturday afternoons,
Sundays and stevedore holidays excepted. Lay time for loading to begin at 0800 on the next working day
after Master reports in writing the vessel's arrival and readiness in all respects to receive cargo in bulk,
whether in berth or not."

Terms
Lay‐time
Laytime is the time agreed and stated in the charter in which the Charterers will be allowed to load and
discharge the cargo without having to pay the Owners a penalty.

If the Charterers do not load the ship in the agreed time, they must pay a penalty to the Owners ‐
Demurrage.

On the other hand, if the Charterers load the ship before the allowed period expires, they may be
entitled to a payment from the Owners ‐ Dispatch.
The Lay time Clock: A clock is a very convenient way of considering the computation of lay time. If the
time allowed to Charterers is known, it is vital to keep a close check on when this time allowed runs out
and the Owners are entitled to payment. Thus the Lay time Clock is a useful concept to keep check.

Starting the Lay time Clock: The below conditions must be fulfilled before lay time can start to count at
a port:
i. The ship must have arrived i.e., the NOR is tendered.
ii. The ship must be ready in all respects to load the intended cargo. If the ship fails the hold
readiness inspection, the inspector's recommendations should be noted and any deficiencies must
be immediately rectified. Re‐inspection should be requested as soon as is possible.
Stopping the Lay time Clock: If the Lay time Clock stops, it means the Charterer's time allowed is
not reducing during that period of time. Certain lay time stoppages are agreed in the charter‐party,
e.g. "Sundays and holidays excepted" ... means that on Sundays and holidays the Lay time Clock
stops.

Usual stoppages with certain cargoes are weather stoppages when hatch covers must be closed, or
a ship must leave the berth. "Weather working days" means days on which cargo operations are not
interrupted by weather. Weather stoppages stop the Lay time Clock. Of course, if the ship causes the
loading to be suspended, (e.g. Ship's gear breakdown), then the Charterers are not penalized for that
period and the Lay time Clock is stopped till the ship's equipment is operational again.

It is vital that a very close port record is kept in the form of a statement of facts which should document
all incidents and occurrences which have affected the cargo operations. The final computation of lay
time by the Owners (and the Charterers) will be based on the statement of facts which should contain
details times of all stoppages and reasons.

Demurrage
If the Charterers do not load the cargo in the agreed charter‐party lay time, the Owners are entitled a
payment for the delay to the ship. The payment is called demurrage and the rate of demurrage,
usually an amount per day, is stated in the charter‐party. There is an important aspect of demurrage
which every Master should be aware of. If the ship goes on demurrage, then any exceptions to lay
time like Sundays, holidays etc., do not stop the demurrage accumulating. They count towards the
Charterers total demurrage liability. This is commonly stated thus "Once on demurrage, always on
demurrage".

A Master might be asked by his Owners or time Charterers to inform them when the ship goes on
demurrage. In this case, the Master must consider closely the laytime clause with regard to:
i. when the Laytime Clock starts,
ii. any periods when the clock must be stopped,
iii. when the time allowed to voyage Charterers expires and cargo operations have not been
completed.

Dispatch
If a Charterer completes cargo operations before the allocated time as per charter party, he is entitled
to a payment by the Owners. This payment is called "Dispatch".
Depending on the lay time clause, e.g. if the lay time clause states "Dispatch to be paid on the basis of
all lay time saved", then the amount of dispatch is easily established by subtracting the laytime used by
the Charterer at completion of cargo operations from the lay time he was allowed by the charter. But if
the lay time clause states "Dispatch is to be paid on the basis of all time saved", then the amount of
dispatch is found by subtracting the date and time of completion of cargo operations from the date
and time when lay time would have expired if cargo has been worked right to expiry of lay time.
If, after reading the charter‐party, any doubt remains as to the significance of the terms of laytime
clause, the Master should ask his Owners or Managers for clarification.

Documents required for Computing Final Lay time

Bill of Lading Quantity
A final statement of the lay time situation (whether demurrage or dispatch) is dependent on the
knowledge of the exact cargo quantity loaded as evidenced in the Bill of Lading. This is so when the lay
time allowed is determined in relation to the quantity loaded, which is by far the most common
occurrence.
It is of course possible to have lay time allowed in a charter which is not so determined, e.g. cargo to be
loaded in 5 weather working days, in which case the Bill of Lading quantity is not needed for
computation of lay time.
Statement of Facts
The port record of cargo operations and stoppage is vitally important to the Owners for computing
the final lay time situation. The port Agents will normally draw up a statement of facts and ask the
Master to certify it's accuracy by signing it. It is therefore important that, for accuracy, any claimed
stoppage periods are closely checked with the ship's port log.
For the purpose of computing the ocean passage, the following shall be taken into account:
i. Commencement of Passage (C.O.P.) is the time of ringing "Full Away" on telegraph. This is the
commencement of the sea‐passage. After dropping the pilot, any reduction in speed, or stoppage,
or anchorage, etc., prior to COP is to be taken as maneuvering / delay in port for the Abstract
purposes. After COP, any reduction in speed, or stoppage, etc. are to be taken as delays in the sea‐
passage.
ii. End of Passage (EOP) is the time of the first reduction in speed after ringing "Stand‐by" on
making the port of destination. Time thereafter comes into port time on the Abstract.

Waybills
A waybill is a document similar to a Bill of Lading, which evidences a contract of carriage between a
carrier and a Shipper. However, unlike a Bill of Lading, a waybill is not a negotiable document, and
cannot be transferred to third parties.
In practice, waybills are used in coastal trades and in the carriage of goods which are not intended
to be sold in the course of transit.
Unless there is an express provision to the contrary in the waybill, the carrier is obliged to deliver the
cargo to either:
1) The consignee named in the waybill, or otherwise,
2) In accordance with the Shipper's instructions.
The carrier does not have any obligation to deliver the cargo to a person who presents the waybill at
the discharge port, unless this delivery is in accordance with (1) or (2) above.
As outlined above, a waybill evidences a contract between a carrier and a Shipper. Accordingly, the
Shipper is the only person who can use the carrier or be sued by the carrier, under that contract.

Bill of Lading
A Bill of Lading has three recognized legal functions,
1) A receipt for goods shipped on board.
2) A document of Title
3) Evidence of the Terms of Carriage
Bearing in mind that the Bill of Lading is a negotiable instrument, a third party who purchases the
goods is paying for the goods as described in the Bill of Lading. Therefore, before signing Bills of
Lading for any goods therefore, the Master must be completely satisfied about the accuracy of
statement on the bill concerning the following points:
1) quantity shipped
2) apparent quality
3) description and present condition
4) date of shipment
5) voyage details, load port / discharge port, freight details of charter‐party
6) nothing in the Bill of Lading is at variance with the terms and conditions of the charter‐ party

Ship‐Shore Quantity Difference

It is recommended that if the Bill of Lading quantity and ship’s quantity differ by more than 0.3% after
applying VEF, the Master should refuse to sign Bill of Lading as presented until re‐ survey of the cargo
is conducted. The Master shall refuse to sign the Bill of Lading and contact Owners immediately to
decide next course of action.
In the case where the Bill of Lading figure is within 0.3% tolerance of the ship’s figure but exceeds
the ship’s calculated figure by more than 0.1%, the Master should issue a ‘Letter of Protest’ which
should copy to Charterers, Shippers, Owners and Managers.

Clean and Dirty Bill of Lading

A clean Bill of Lading is one which declares that there is nothing wrong or suspected wrong with the
apparent quality, quantity, or any other statement on the Bill of Lading about the cargo being carried.
A Bill of Lading which has any endorsement stating either that any part of the goods are not in good
order and condition, or that the Master is disputing any statement in the Bill of Lading presented
to him for signing, is a dirty ‘Bill of Lading’.
A Master must never sign any Bill of Lading which, in his opinion, does not accurately represent
the detail of the goods and shipment.
Commercial Importance of Clean Bill of Lading
Many commercial transactions concerning carriage of goods demand that only if a clean Bill of Lading is
issued, will money be released by a bank or financial sponsor. This means there is pressure on Shippers
to obtain nothing other than a clean Bill of Lading.
If there is any suggestion that the Master might wish to endorse the Bill of Lading, the full weight of
the pressure will be directed to convincing the Master that all is in order and that he should indeed
sign only clean bills.
A Master must never sign any Bill of Lading which, in his opinion, does not accurately represent
the detail of the goods and shipment.

Mate’s Receipt
A Mate’s Receipt is given and signed by the Chief Officer for goods received on board. A Mate’s
receipt will show:
i. Identification marks
ii. Weight
iii. Apparent order
iv. Any defects.
Bills of Lading and manifests are completed by reference to Mate’s Receipt. The Chief Officer should
therefore exercise care before signing them, paying close attention to the statements made in them.
Any discrepancy should be recorded as being in dispute.
They should be made up from ship's information in preference to Shipper's notes.
Any discrepancy should be recorded as being in dispute. Three copies should be prepared and issued
as follows:
1) One copy to the person delivering the goods,
2) One copy to Agent,
3) One copy kept on board for preparation of cargo manifest.
NOTE: Some Time‐Charterers require authority to be given to their Agents to sign Bills of Lading on
behalf of the Master.
If this ever appears in a Time charter‐party, the clause should also contain the words "In
accordance with the Mate's Receipts", and only after the Master has reviewed and approved B/L
quantities against ship figures.
In this way, the Master of the ship can ensure that if the cargo is "dirty" in any way, the Mate's
Receipts will record that fact, and the Agent only has authority to sign Bills of Lading which agree with
the Mate's Receipts.

Claims After Discharge

At the discharge port, the cargo as described in the Bill of Lading is to be delivered to the Receivers.
This means that the accuracy of the statements contained in the Bill of Lading comes under close
scrutiny in case of dispute.
It is possible that the quantity of cargo figure arrived ashore is different from the Bill of Lading
figure. It is unlikely that any dispute will resolve the discrepancy and the only course of action open to
the Master is to issue a Letter of Protest, which should contain a statement that no cargo residue
remained on board after completion.
As to the other representative contained in the Bill of Lading, if the Receivers dispute their accuracy,
there is little that can be achieved by the Master other than to issue a Letter of Protest and to
contact his Owners immediately.
If the Receiver's claim, that goods are not as described, is well founded, it is useful to lodge a Letter of
Protest concerning past sea passage which could explain the suspected damage.

Letter of Indemnity
Should there be any changes to the vessel’s destination, cargo discharge quantity at particular port or
non‐availability of Original B/L at the discharge port, the Master will be offered a ‘Letter of
Indemnity’ by the Charterers.
It shall be borne in the mind that the Master does not have the authority to accept ‘Letter of Indemnity’
and same must be brought to the Owner’s attention. Cargo discharging shall not commence until
expressed approval received from the Owners confirming charterer’s discharging instructions.

Appointment of Agent / Responsibilities

Owner’s Agent
As the name implies, Owner's Agents are those who act as the principal's representative, having the
legal authority to act on behalf of the Owner. They are appointed by the Owners or Managers
themselves to look after their affairs in ports where they themselves are not represented.
Duties: The duties of the Owner's Agent are to do all that is required to ensure that the ship enters
port, berths, discharges/loads cargo, carries out normal routines (bunkering, fresh water, stores,
medical visit's, mail in/out, provide cash advances, etc.) unberths and sails, all without any delays or
mishaps. All documentations such as inward entry, customs clearance, free pratique, payment of dues
and taxes, outward clearance, etc. are handled by the Agent.
Appointment of Owner’s Agent: Normally, we as Managers do not appoint Owner's Agent during
the course of the vessel being under a time or voyage charter since majority of charter parties
state that Charterer's Agents are to be used for the necessary husbanding requirement. However, in
circumstances warranting the expense of two Agents, namely in ports where a major crew change is
to be effected, appointment of an Owner's Agent is made to take care of all matters pertaining to
crew handling, namely transportation to/from vessel/airport, immigration formalities, hotel
arrangement, etc. Also, Owner's Agents are appointed to take care of all husbanding matters
during the regular dry‐docking of the vessel.

Charterer’s Agent
Charterer's Agents act for their principals, the Charterer, and also additionally act for the Owners
where the Charter Party requires it. There would appear to be a conflict that one Agent cannot be
responsible to two principals at the same time when the principal's requirement may be directly
opposed. It should be understood that the Charterer's Agent will naturally have a priority to act for
their principal and as such extra care should be exercised to ensure that the Owner's interest are
also receiving the correct consideration.
Duties: The Charterer's Agent will do all the agency work of the ship calling at a port as well as looking
after the Charterers affairs. All duties connected with the cargo like arranging stevedores or
terminal operators, barges or lighters will also be done by them.
At any time when the Master is not satisfied with the services rendered by the Agent, he should
inform the Agent of this fact and at the same time inform the office/Owners.

Protective Agent
On various occasions such as at the beginning or end of a time charter when on hire or off hire
surveys are being carried out or during any dispute about cargo quantity or quality, pollution
problems or the vessel being bought or sold, some Owners require Owner's protective Agent to be
appointed to handle all matters. On such occasions the vessel will be duly informed.
Stevedore Damage
In almost every voyage and time charter parties, there is a reference in a clause to "Stevedores
Damage". It is this clause that has to be closely followed, if during cargo operations, damages have
been sustained to the vessel, or her equipment, stores and/or cargoes by the stevedores working
the ship, in order that the ship can be compensated for any damage. The Master should take every
precaution with the stevedores in order to maintain smooth operations.

Notification
It is of utmost importance that the Officer on watch on the deck keeps a close vigilance on any act of
negligence on the part of the stevedores working the vessel and notify immediately to the
responsible stevedore Superintendent, holding them liable to remedy and damages sustained at
their cost, prior the vessel's departure. This verbal notification should be promptly followed by
issuance of a written notice to them as well as to all parties mentioned in the Charter Party and copied
to the Owners / Managers.
A necessary "statement of facts" and "damage report" should also be prepared and signatures of all
concerned parties obtained. If the damages sustained are serious, which could affect the validity of
any ship's certificate, an appropriate survey should be carried out by a surveyor to the Classification
society. As far as practicable, photograph of the damages sustained should be taken to serve as
evidence in case of any dispute.

Record Keeping:
Damage Report F2.13 Damage Report

Insurance and Claims

It is a Company policy to ensure that all vessels under management are fully covered for P & I, Hull and
Machinery and War Risks at all times to protect the Company and Principal’s interest in terms of
security against financial loss. It is also ensured that as per the terms of the management agreement
the company as co‐assured in all insurance policies in case coverage are arranged by the principals.

Vessel Insurance Coverage

The vessel is covered by several types of marine insurance, including ‘Hull and Machinery’, and
‘Protection and Indemnity (P&I).
Hull and Machinery Insurance: This insurance covers practically every accidental damage to your
vessel which may occur in the course of normal navigation, such as damages resulting from heavy
weather, grounding, fire, collision, crew negligence, stevedore’s negligence etc.
Protection and Indemnity (P&I) Insurance: This insurance covers the Owner’s expenses resulting from
his legal liability toward third parties such as crew (due to illness, injury, or death), stevedores (due
to injury during loading or discharging), cargo owners (due to damage or lost cargo) etc.

General Average Act

When the ship and cargo are in peril, the Master has the duty and authority to take all
reasonable steps necessary to avert the peril or minimize its consequences so as to deliver the vessel
and cargo safety to its destination. These actions may involve incurring expenses of an extraordinary
nature or even sacrificing part of the vessel or cargo to save the remainder.
The course of action adopted in these circumstances is known as a General Average Act. The expenses
incurred are General Average Expenses and the sacrifices made are General Average Sacrifices.
Contingencies such as breakdown at sea, Fire, Stranding, and Collision etc. falls under General Average
Act. Similarly, extraordinary consumption of fuel due to heavy weather leading into ‘shortage of
fuel’ or seeking port of refuge etc. situations wherein expenses arising may be recoverable in
‘General Average’ from all interests.
When the General Average Act with its resultant General Average Expenses and/or Sacrifices, has
been performed, the Owner has a Possessory Lien on all cargo on board for the cargo's share of these
expenses and/or sacrifices.
It is of the utmost importance that no shipment be delivered until the Owner has been furnished
with proper security to cover its share of the General Average.
Certain discharge ports require a vessel, declaring General Average, to make certain representations
at the discharge of cargo. To assist the Master, every effort will be made to contact the local P & I
representative to ensure the proper paperwork is filed or duly endorsed with port authorities.
Proper security consists of having the cargo interests sign a Lloyd's Average Bond (sometimes called an
Average Agreement) making a cash deposit of a percentage of the value of the particular shipment
amply sufficient to cover the shipment's estimated share of the General Average. In most cases, there
will be sufficient time for the Company to determine the necessary percentage of deposit and
advise the Master or the Agent at destination accordingly.
If the cargo is insured with a company acceptable to the Vessel Owners, i.e., company from whom the
vessel Owners can enforce collections, an unlimited General Average Guarantee from such company
will be acceptable in lieu of a cash deposit, but in any event, the General Average Agreement must be
signed.

Records Of Incident
The Master should keep careful records of all happenings in these exceptional situations so as to be
able to furnish the Company promptly with:

i. Signed copies of all Protests or other sworn statements.

ii. Signed extracts from Deck and Engine Logs.
iii. Signed statements prepared by the Master and/or Chief Engineer of all extra consumption of
fuel, engine and deck stores and accounts for their replacement, if replaced on the voyage.
iv. Reports of surveys on ship and cargo.
v. Signed copy of the Salvage Contract.
vi. Receipted accounts for all extra expenses incurred. These should, so far as possible, be approved
by Underwriters' Surveyor and the Cargo Surveyor, to the extent that the supervision of the
accounts may come within the scope of their duties.
vii. Payroll Accounts showing wages paid to Master, Officers and crew during the prolongation
of the voyage, due to deviation or while detained at a Port of Refuge, together with overtime
sheets showing the nature of the work performed in the overtime periods and the hourly rate paid for
the specific hours worked.

Details Of Repairs / Survey

Should the vessel require repair, the Company should be informed as soon as possible, giving complete
details. In the event Classification Society and Underwriter's representatives require notification, the
Company will make necessary arrangements. Under no circumstances is the Master to contact
Underwriter's Surveyor directly. Some instances may arise where the vessel requires a Seaworthy
Certificate and time does not permit notifying the Head Office directly. In those circumstances only
should the Master notify the Classification Society directly.
Reporting Of Incidents
Refer to the "HSSEQ Manual" for action to be taken and reporting formats of various
emergencies / contingencies that may arise on a vessel.

Claims Under General Average

Following claims are usually covered under 'General Average.
 Breakdown at Sea

 Fire

 Stranding

 Collision
Refer to the company's “HSSEQ Manual” for action to be taken and reporting requirements. In addition,
following claims can be included under 'General Average'.

Shortage Of Fuel
It may be that while the vessel is en route from one port to another, heavy weather may be
encountered which greatly retards the vessel's headway and results in an extraordinary
consumption of fuel which will prevent the vessel from reaching it's destination safely. If the situation
should arise and the vessel is obliged to put into a "Port of Refuge", the expenses arising there from
may be recoverable in General Average from all interests.

Port of Refuge
Any one of the above-mentioned contingencies, as well as others, may obligate the vessel to deviate
from the regular course and put into a Port of Refuge, for the common safety and benefit. This
putting into a port of refuge may constitute a General Average Act. A careful record must be kept of
all stores consumed, wages, overtime, fuel, etc. as these must be considered later by the General
Average Adjusters who will decide to what extent they may be allowed as General Average Expenses.
The record should include fuel and stores aboard at the time the deviation commenced and at the
time the vessel regained her course for the port of destination.
If cargo damage is involved, instructions from the Head Office regarding the appointment of a cargo
Surveyor for General Average purposes should be obtained and a Surveyor appointed. His
recommendations should be carefully followed. In fire cases, it is important that the Surveyor be
instructed to deal with two categories:
i. Cargo damaged by fire, smoke, and heat, either along with or in combination with some other
cause, and
ii. Cargo damage only by water and/or steam and/or other Agent employed to extinguish the fire.
If the cargo has been damaged by both categories of loss, the Surveyor should mention in his report the
percentage of each category that should be considered applicable.
The Surveyor's report should identify each damaged shipment by its respective Bill of Lading number,
Shipper and consignee and report on the packages separately.
The Surveyor may recommend sale of some damaged cargo but no sale should be made without
the written consent of the Owners of the goods. Cargo so badly damaged as to be completely
unidentified may be sold if the cargo Surveyor recommends. Where cargo is removed from the ship
at a Port of Refuge and is temporarily held on lighters or ashore, the Company should be advised of the
kind and quantity of cargo involved with respect to each lighter on each separate location ashore so
that they may affect the necessary insurance.
When ready to leave the Port of Refuge (with the ship holding a Seaworthy Certificate and the cargo
reloaded or otherwise disposed of as the cargo Surveyor recommended), inform the Head Office
regarding the amount of the extra expense (including wages, etc.) incurred by putting into the port.
They need this information to enable them to insure these expenses against loss during the remainder
of the voyage to destination. In calculating the extra expenses for wages, fuel, etc., compute these
from the time the vessel alters course and proceeds to the Port of refuge, while there, and until she
regains her position on the voyage, less way saved.
Many of the above situations can and do arise when a vessel is in ballast. Accordingly, it is suggested
that the above procedures be adopted, where applicable, in ballast cases as well.

Claims Under Stevedore Damages

The Master should prepare a report on any stevedore damage and obtain a signature or
acknowledgement of having given a copy of the damage report to the stevedores or their office. The
provisions in the Charter Party or voyage instructions regarding notification should be complied
with.
Repairs: Every effort should be made to ensure that the stevedores repair any damage while working
cargo at their pier, without delaying the vessel. If it is evident that repairs cannot be effected at the port
a comprehensive report must be prepared promptly and a copy given to the responsible stevedores.
The original copy is to be retained on board and one copy should be immediately forwarded to the
Company, and a copy given to the stevedores.
Any time the vessel has outstanding stevedores damage at the end of the voyage and repairs are
expected to be made then, a separate requisition or work sheet must be prepared with the date and
port to identify the repairs to the particular damage report. When repairs are made without a
Superintendent's attendance, repair cost must be billed separately and identified by the repairer.
If repairs are accomplished by the crew, a full record of their hours worked with overtime and rates
must be submitted separately with complete list of stores and spare parts used in affecting repairs and
again identifying the specific damage report it relates to.
If stevedore damage repairs are deferred until the vessel enters a ship repair yard, the damage
reports must be compared to and coincide with copies the Superintendent will have in his possession.
This method of handling these stevedore repairs is the only manner that will ensure that in each
instance the responsible party is billed for the cost of repairs.

Claims Under P&I

P&I Charges: P & I Clubs charge a flat rate for administration and an initial premium which is known as
the ADVANCE CALL. Further charges may be made, known as SUPPLEMENTARY CALLS and expressed
as a percentage of the ADVANCE CALL. The ADVANCE CALL depends on the cover the Owner requires
and the claim record of that particular Owner.
P&I Claims: The P & I Club must be informed immediately when an incident occurs which could lead
to a claim. This is to be done both through the Head Office and the local representative.
A list of the P & I local correspondents is published regularly and must be carried on board.
It is essential that the P & I Club is informed as soon as possible. Some claims will be rejected if the Club
is not informed at the time of the incident. Any delay in reporting may make it very difficult to
resolve a dispute at a later date.
Any time a third party calls for a survey of cargo, of the ship or anything connected with the ship which
could lead to a claim, the P & I Club local correspondents must be informed in time to allow them to
Surveyor Appoint A to represent the ship Owner's interests.
Items Covered under P&I: The following actions are covered under P&I:
i. Claims for loss of life and personal injury,
ii. Hospital, medical and funeral expenses arising from injury claim,
iii. Crew sickness and repatriation expenses,
iv. Quarantine expenses,
v. Oil pollution,
vi. Cargo damage due to improper navigation,
vii. Third party collision damage not covered by Hull & Machinery insurance,
viii. Cost of raising a wreck,
ix. Damage to piers, jetties, wharves and other stationary objects,
x. Irrecoverable proportion of General Average,
xi. Cost of Government Inquiries,
xii. Heavy weather damage to cargo from ingress of water, cargo shifting or lack of
ventilation in bad weather,
xiii. Cargo damage due to improper stowage.
The P & I Clubs also indemnify Owners against:
i. Claims in respect of wrong delivery of cargo,
ii. Ship's liability for cargo after collision not covered by insurance,
iii. Fines or penalties imposed as a result of innocent breaches of customs and
immigration laws,
iv. Fines or penalties resulting from acts of barratry, including smuggling by employee of the
Owners.
The P & I Clubs also cover Owners against claims for accidents to stevedores, officials visiting the ship,
spouses of crew members, passengers and other persons on board with the permission of the Master.
However, any intentional or willful breach of the law is not covered. For example: by passing the OWS
(Oil Water Separator).

Crew Accident and Illness

The P & I Club provides the Owner with insurance cover against medical and repatriation expenses
and the cost of crew wages while in hospital, provided that the Club is informed at the time.
When a member of the ship's personnel is to be paid off and landed at a foreign port on the advice of a
doctor, the P & I Club should be informed. The Club will either arrange for a further medical
examination of the sick person or consult the doctor who made the original recommendation.
When the decision is approved, the medical and repatriation expenses will be met by the P & I Club
subject to policy terms and deductible.
If a member of the ship's personnel dies, the P & I Club will pay the cost of a standard burial and the
cost of returning the crew member's body to his home subject to policy terms and deductible.
When an accident happens to any of the ship's personnel, a full report must be made including
the name of any witness and whether the victim was on duty at the time. The report should be
forwarded to the office.

Cargo Claims
Heavy Weather: Whenever heavy weather is encountered and there is a possibility of cargo damage
resulting either from the ingress of water or the shifting of cargo, the Master should notify the
Company and the P & I Club's local representative so that a Club Surveyor can attend to conduct a
survey as soon as the vessel berths. The Master should not rely on the Receiver's Surveyor but should
always obtain an independent survey from the P & I Club.
Ventilation: Certain cargoes require controlled ventilation operating continuously. If continuous
controlled ventilation becomes impossible because of mechanical breakdown or weather conditions,
damage to the cargo may result from the condensation, overheating or other factors.
The P & I Club Surveyor should always be called in if ventilation damage is suspected or confirmed.
Improper Stowage: Whenever cargo damage occurs as a result of the collapse of section of cargo, the
P & I Club Surveyor should be called in.
The damage may be caused by the use of under‐strength packing materials or by improper stowage
methods on board.
Surveys: Whenever cargo Receivers state they intend to carry out a cargo survey, the P & I Club
should be asked to send a surveyor to represent the ship Owner's interests.
The P & I Club Surveyor's experience of surveying many cargoes of different types enables him to
recognize whether the Receiver's claims are justified.
Whenever the Master considers that the cargo he is loading or about to load is not as described
because of condition, moisture content or packaging, he should call the Office or Owners and make
the proper contact to arrange for the P & I Club to survey the complete cargo before it is loaded.
The Surveyor will advise the Master how to clause the Bill of Lading, if this is necessary, with the
most appropriate wording describing the defect.
Whenever the Master considers it necessary to note protest on arrival in port, the P& I Club should be
informed of the "Note of Protest".

Jettison of Cargo, Bunker and Dirty Ballast

If an absolute emergency necessitates the jettison of cargo, bunkers or dirty ballast, it is essential
that full information regarding grade, number of tanks pumped and the ullages before and after
pumping, be entered in the Official Deck Log Book and the Oil Record Book, and provided the
circumstances permit this procedure. Special note should be made as to whether the tanks were
leaking prior to or after jettison.

Admission of Liability
Under no condition shall the Master or any other member of the ship's complement admit liability,
either written or verbally implied, of the Company, the vessel or any of the personnel attached to the
vessel, for any accident or damage.

Receipt of letters from other parties alleging damage may be acknowledged but liability must never be
admitted. Such letters shall be answered: “Receipt of your letter dated ...………. is acknowledged
without prejudice and liability is denied”.

Interviews must not be given by any of the vessel's personnel to unauthorized persons following
an accident, but all assistance should be given to Company representative such as surveyors, lawyers
or shore staff. It is equally important to clarify the identity of all third parties before disclosing any
information to them.

Letter Of Protest
A Letter of Protest shall be executed (after confirmation from Owners) whenever, during a voyage,
heavy weather or an accident has been occasioned to which known or envisaged damage to the
vessel or it's cargo has been or may be attributed. The Letter of Protest shall be executed not later
than 24 hours after arrival at the first port, or after the occurrence of the accident if occasioned in
port, when circumstances preclude noting protest then the protest shall be executed on arrival at the
next port.

Extent Of Protest
Under no circumstances shall a Master specify in the Letter of Protest any damage that has been or is
envisaged. The words "fearing damage" are adequate to afford proper protection and any specification
of damage appearing in the Letter of Protest may prejudice the interest of the ship. Under no
circumstances shall a Letter of Protest be extended (that is detailing damage) without authority from
the Head Office. The Master is to ensure that logbook entries, particularly for heavy weather are
attached.

Deviation For Personnel Injury

Deviation to obtain urgent medical attention is the Master's prerogative and, if that course is adopted,
the Master should send a message containing the following information to the Company or Agent
at the port the vessel is putting into:
 Employee's name.

 Employee's rank or rating.

 Full details of injury.

 Advice obtained from Radio Medical.

 Special facilities required on arrival at port.

 ETA

The message to the Head Office should include the name and contact details of the personnel looking
after the patient while ashore. In such cases, it will be in order for the Master to sign acceptance of
expenses arising from the medical attention as may be required. Subsequently, the Master should
send completed written reports to the Head Office.

Salvage
Service Rendered to Other Vessel: In case a Company vessel is involved in salvage services to another
vessel, no agreement as to compensation or award shall be made, except under special instructions
from the Head Office. The Master shall endeavor to obtain from the Master of the salved vessel, or
person in charge of the property to which the salvage services have been rendered, a signed statement
of the nature and extent of the services, including acknowledgement of the fact that the salvaged
property is safe and that no further aid is necessary.
Logged entries shall contain a summary of the services rendered and shall include any time lost by
reason of the salvage, any gear, equipment or stores lost consumed, or any personal injuries sustained
during the salvage services. The Engineer's Log Book shall contain an entry on fuel or engine room gear,
equipment or stores lost or consumed by reason of the salvage services. The Master shall
communicate the report of the essential facts by fax / e‐mail / telex, etc. to the Head Office, to be
followed by a written report stating the complete details of the salvage services rendered.
Service Required by Company Vessel: In cases of extreme emergency when salvage assistance is
necessary, the decisions to be made for the safety of the crew, vessel and cargo are the prerogative of
the Master.
If, in the Master's opinion, the vessel is in imminent danger and requiring immediate assistance, the
Master shall endeavor to secure the necessary assistance of outside craft on a towage basis, expressed
as a towing job, or on a flat agreement for a stipulated amount. Failing this, the Master has the
authority to bind the ship and the cargo interests to salvage assistance. This should be on the terms
and conditions contained in Lloyd's Open Form of Salvage Agreement which incorporates the principle
of “No cure, No pay”.
The Master will have to sign the Lloyd's Open Form, but in the event that time, weather or other
circumstances prevent signing, the Master must signal the salvor as follows:
“ACCEPT SALVAGE SERVICES ON BASIS OF LLOYD'S OPEN FORM ‐ NO CURE NO PAY ‐ ACKNOWLEDGE
REPEATING FOREGOING – MASTER”
It is the duty of the Master to ensure that the vessel assist the salvor to the fullest and keeps the salvor
fully informed of the vessel's capabilities, including engines and steering.

War Risk Policy

1. The policy covers damage caused by:
a) Any mine, bomb or torpedo not carried as cargo on board the vessel.
b) Civil war, revolution, rebellion, insurrection, or civil strife, arising therefrom.
c) Strikes, lockouts, political or labour disturbances, civil commotions, riots, martial law, military
acts, or vandalism.
d) Hostilities or warlike operations / may cover piracy as well.
2. War Risk Policies DO NOT cover:
a) Outbreak of war between any of the great nuclear powers. (Entire market suspends
cover)
b) Delay or demurrage (General Average detention expenses are covered).
c) Requisition by the Government of the Flag State for military purpose.
3. Other points to remember are that:
 a) Unlike conventional policies, war risk policies pick up liability for protection and indemnity
risks.

Communications
Prompt and good communications between the vessel and Office, agents, Owners, Charterers are
vital for efficient operation and its importance cannot be overemphasized.
The official working language onboard Active Fleet is English and all communications must be in English.
In these modern days various facilities such as ‘VSAT, Fleet Broadband, Internet Email etc. are available
on board the vessel.
Messages should normally be sent to the company’s email addresses. In addition to the routine
communications, mentioned in this section, the Master when in doubt of any matter pertaining to the
operation should never hesitate to contact the Office or Owners or Charterers as the case may be, to
discuss and clarify all queries that he may have.
For sake of good communication and optimum cooperation, the Master is required to keep the
C/Engineer well informed of vessels fixtures, Charter Party speed/consumption requirement, type
of cargo being loaded etc.

Means of Communication
Where fitted, Internet Email should be the primary means of communication. On vessels not provided
with Internet Email or if the system breaks down, the preferred means of communication is Email via
Sat C.
Whenever Masters call the office on phone for urgent consultations and or explaining operational
difficulties, we require that as far as possible Chief Engineer should also be present so that he can
be consulted on any technical matters that may arise.
Vessels are fitted with a Ku-band or C-Band VSAT system with FBB as backup
Fleet Broadband (FBB): For vessels fitted with FBB, the Master has to ensure that only FBB
equipment is used for the purpose of making voice calls and email exchanges. The charges are
calculated basis size of data transfer files and as a guidance, 1MB of data is equivalent to 9 minute of
voice call.
For vessels fitted with FBB and additional Satellite communication system, “9 pin serial port cable” of
other Satellite unit connecting communication computer has to be disconnected, rolled up and left
hanging with a note that this should only be used if FBB is not operational.
Communication with the Office
The Company adheres to a policy whereby all messages from the vessel should be from the Master
and not from any other individual and at the same time all messages sent to the office should be
addressed to the Company and not to any individual.
The Company’s email system and facsimile machines are open for all incoming messages on around the
clock basis and are closely monitored during the office working hours.
In this matter, it can be emphasized that the concerned superintendents if not available in the office
can be reached at ‘After Office Hour’ numbers which can be obtained from the F1.1 Emergency
Response Team which is periodically updated.

Communication with Charterers

In accordance with the particular terms and conditions of the Charter Party, the Master will be
required to communicate certain routine information to them or to their appointed Agents. All
such communication should be relayed to the Owners, pool managers or commercial operators and
Office. When questions pertaining to technical aspects or performance of the vessel are received
from the Charterers, text of such messages and their intended replies should first be sent to the Office
for further consultation.
Private Communication
Crew Calling Cards: Ship’s communication equipment may be used for the purpose of making personal
telephone calls by the crew members using ‘Crew Calling Cards’ with the Master’s permission. The
Master can arrange pin numbers for calling cards. Card cost varies time to time and latest information
on applicable cost shall be provided by the Office. The Master has to keep the pin numbers in safe
custody at all times and is required to deduct the amount from account of wages of the respective
crew member in monthly portage bill.
Guidelines on Email Communication
1) Mail attachments shall not be opened unless from trusted sources.
2) All routine messages must be prepared and kept in the Outbox, so that they will be
transmitted at the time of next log in.
3) In case of noticing any problems in logging in to the hub for email exchange, urgent
messages shall be send using Sat C updating all concerned parties that vessel is experiencing
communication difficulties. Once system is operational again, the Master should inform all concerned
again.

Guidelines on Internet Usage

As internet access is increasingly becoming available to on board crews through ship devices such as V‐
Sat, FBB, Wi‐Fi routers using shore signals and personal mobile phones, the matter of online behavior
has become an ever more important issue. It is recognized that use of Internet on board increases
the opportunities for crewmembers to act in an inappropriate manner, intentionally or otherwise.
In order to prevent behavior which could disadvantage or embarrass the Company, following
guidelines shall be binding to the crew members whilst their tenure on board.
1) Posting information on cargo, stowage, ISPS related information and vessel photographs etc. on
social networking services.
2) Using abusive, profane, discriminative, racist, or other objectionable language in messages.
3) Sending, receiving, or accessing pornographic material.
4) Defeating or attempting to defeat security restrictions on Company systems.
5) The exchange of confidential Company information.
6) Internet surfing during normal hours of work or excessive time spent on internet during off‐duty
which may affect rest hours of the seafarers.

Communication Cost
The most cost effective method available on board should be chosen for the transmittal of routine
information. It should be borne in mind that Inmarsat telephone charges are expensive and all
communication by this means should be limited.
In case of emergency or matters requiring urgent attention, the Master should feel free to employ
whatever means of communication he considers appropriate. Messages should be prefixed with the
word ‘URGENT’.
Filter settings of on-board email system such as Outlook, Sky-file should be set to filter email attachment
size exceeding 10 Mb.

Radio / Sat‐C Accounting

1) Record of all outgoing messages/telephone calls made during the month shall be kept by the deck
officer designated by the Master. Radio accounts are not to be sent to the vessel’s accounting
authority.
2) The radio accounts shall have a summary sheet clearly stating split between 4 categories, namely,
Charterer, Owner/Manager, Private and Email charges.
3) For charterers’ billing of emails, you should charge two log in periods to Owners and one log in to
Charterers.
4) Sat C Charge Calculation: Charges are normally quoted per 256 bits or per unit e.g. USD 0.154 /
256 bits. Message size on the Inmarsat C unit is normally given in bytes or units and has to be
converted to bits for calculation for the message cost. Number of bits (5/7/8) per byte will depend
upon settings chosen in the Sat C.

Vessel’s Accounting
Accountability
It should be noted that the Master is fully accountable in ensuring that proper records are kept of all
expenditures and cash transactions that take place aboard the vessel and is therefore responsible
to the Management.
Vessels with an operational Fleet Manager Software system should use Fleet Manager Software for
vessels accounting.

Explanation of Ship’s Accounts

The ship’s accounts basically comprise of ‘Account of Wages’ (Portage Bill), cash receipt and
disbursement account, bonded stores account and provision account.
Master shall prepare such accounts monthly in the Company’s form in duplicate, the original of which is
to be forwarded to the office and the duplicate is to be kept on board by the Master as ship’s
record.
At the beginning of each month, ship’s account for the last month must be forwarded to the Office, at
first available opportunity, with a covering letter and all supporting documents / vouchers.
For provisions, ‘Quality Catering Company’ will provide provisions to the vessel and no cash
purchases are required.

Overtime
All hours should be carefully registered. No overtime is to be registered for hours which have not
actually been worked.
Portage Bill
1) Every column of the portage bill must be entered and all accounts are to be computed in U.S.
Dollars.
2) Wages are paid on a month-to-month basis and calculation of wages for a broken period within a
month should always be divided by 30 irrespective of the number of days in the Month.
3) Masters should take every precaution to avoid crewmember’s wages to be overdrawn since he
will be held responsible if such overdrawn amounts remain uncollectable from the concerned crew
member.
4) The Master is to ensure that accuracy of the portage bill by checking the totals of the columns
both vertically as well as horizontally. All calculations should be rounded to 2 decimal places.
5) Crew members’ signature in full on both the office and ship’s copy to be signed in pen. Carbon
copy of signature on ship’s copy is not acceptable.
6) All consumptions on account of Owners or Charterers shall be entered under the consumption
column and relevant forms provided by ‘Quality Catering Company’ shall be duly filled in and
enclosed with the portage bill along with copies of all other vouchers and Provision Report.

Leave Wages, Uniform Allowance and Subsistence Allowance

Leave wages, Uniform allowance, Officer’s provident fund and Subsistence on leave, may be applicable
depending upon the wage scale in force for that particular vessel. These should only be paid on
board upon the crew member signing off. A breakdown of the above showing the amount earned
as well as the accrued amount is to be prepared each month for all staff serving on board. The staff,
who have signed off in that month are not to be included. Portage bill module on FLEET MANAGER
SOFTWARE is to be used for this purpose.

Change in Crew member’s Wage Scale

Any changes in a crew member’s wage scale due to promotion or yearly increment must be clearly
indicated in the portage bill and copy of message from Head office sanctioning same is to be attached.

Copies of Messages from Head Office / Manning Office

Credit of any claims, joining expenses, increments, Bonus etc., as well as any Deductions shall only
be done on receipt of written instructions from Head office or Manning Office. The copy of the
message or letter must be attached to the portage bill in which the credit or deduction is made.
Sign Off Staff
1) When filling in the ‘Wages Account form’, the amount paid at the time of sign‐off should be
entered in the cash advance column so that Final Balance Column should read ‘NIL’ and an allotment
made for unpaid balance.
2) Two days basic wage for Travel if applicable, is to be included in ‘Joining & Travel’ column on
‘Wages Account form’ and nowhere else.
3) The Wages Account form should be made in triplicate and each copy must have the original
signature of the crew member and Master as well as the ship’s stamp. Original of the ‘Wages Account’
should be attached
4) It is our policy to endeavor to pay off‐signing staff in cash at the time of sign‐off. However,
at times this may not be possible for various operational reasons, such as sign off being done in a
place where money in US Dollars is difficult to arrange etc. in the event that the balance of wages
are not settled in full at the time of sign‐off, an allotment should be made. We will remit the balance
of wages by ‘Demand Draft’ or ‘Telegraphic Transfer’. For this, we require allotment note is to be
filled out and sent to the Office as soon as possible.

Cash Receipts and Disbursement Accounts

Under the F2.20 Master's Cash Statement, the Master should enter only the cash receipts and
disbursements incurred during the current month. Transactions for previous or subsequent months
should not be entered. All receipts and disbursements should be supported by original receipts or
vouchers which are to be attached with the portage bill. The vouchers and bills should be clearly
marked to indicate voucher number, foreign currency amount, exchange rate US Dollar and net
amount paid in US Dollars.

Bonded Store Account

Purchase of bond stores are handled by the Quality Catering Company. Bonded stores account is to
be prepared on monthly basis and shall include all supplies and sales made during the month.
Under the supplies column the total amount shall be the cost at which the sores have been received,
during the month, plus five percent mark‐up. The final marked up cost should be used as the basis for
sales made and the sales column shall be separately split up for
i) Officers & Crew,
ii) Charterers account and
iii) Owners account.
They shall be indicated under the selling price column.
The earnings for the officer’s club is difference between selling price and cost price for sales in that
month after deductions for breakages etc.
Sales made on account of Owners or Charterers shall be accounted for in ‘Extra
meals/Entertainment report’ and enclosed with the portage bill. A separate form, F2.22 Bonded
Store Slop chest Account, F2.23 Bonded Store Slop chest Inventory is to be used for Owners and
Charterers expenses.

Provision Account
Quality Catering Company
i. Procedures laid down in catering company manual to be followed
ii. Emergency cash procurement should be avoided, however if so required, this is to be
reflected in Masters Cash Account to be informed.
All consumptions on account of Owners or Charterers shall be entered under the consumption
column at Catering Company shall be duly filled in and enclosed with the portage bill along with
copies of all other vouchers and Provision Report
Provision supply vouchers / bills should be attached to the Provision report. For bills settled in cash,
copies are to be attached, for bills not paid in cash but signed for, original bills are to be attached.
Victualling costs are to be maintained within the budgeted rate. Any increase from the above is to be
supported with a proper explanation.

Allotments
1) Only one allotment per crewmember per month is permitted.
2) Once an allotment is made, no alterations or cancellations can be made. Care is to be taken in
filling out the out the allotment note to ensure that all details are correct. All costs incurred by the
bank as well as communication costs, due to incorrect details will be for the crew member’s account.
3) It is the Master’s responsibility to ensure that the crew member will have sufficient Balance of
wages to cover the allotment and that the deduction is positively made.
4) The allotment form on FLEET MANAGER SOFTWARE, OF3A.14 Allotment Request, has to be filled
out in full each time that an allotment is to be remitted. The allotments are normally remitted within
1st week of the following month and payment is only made after original allotment note and Portage
bill message has been received in our office.
5) As such we require that the allotment note for the current month to have been mailed along
with the portage bill of the previous month. The deduction of the allotment however must be
made in the current month.
6) If a crew member is signing off before the month end, the deduction should still be made.

Cash Advance Policy

The maximum amount of cash advance for each ranks on board is given below.
Master 400usd
Chf.Off. 300usd
2nd Off. 250usd
3rd Off. 250usd
Chf.Eng. 400usd
2nd Eng. 300usd
3rd Eng. 250usd
Jun.Eng. 250usd
Electrician 200usd
Pumpman 200usd
Bosun 200usd
A/B-1 175usd
A/B-2 175usd
A/B-3 175usd
O/S-1 175usd
O/S-2 175usd
Fitter 200usd
OLR 175usd
OLR 175usd
Chf.Cook 200usd
Messman 175usd
Deck Cadet 100usd
Engine cadet 100usd
If the person requests more than the specified amounts, he must notify the office in writing of this
request.

Ship’s Cash with Master

Minimizing Cash On board: Masters must ensure that they ask only for sufficient money to cover
crew’s wages, provisions and bond as well a small reserve
– 5,000 for unexpected expenses. As soon as the Cash to Master is received on board, the crew must
be paid their wages in order to minimize the cash in the Master’s possession. We remind Masters that
ship’s cash on board is their responsibility and care and diligence must be exercised in dealing with the
same.
Declaration of Ship’s Cash: Vessels have faced problems wherein the Customs have confiscated the
Ship’s cash as the Master had not declared the same in the inward declaration. Master must ensure
that full and proper currency declaration is made of all cash on board, both ship’s cash as well as crew
personal cash.

Procedure for requesting Cash to Master (CTM): As far as possible a request for CTM should be made
once a month. While making a request for CTM, the procedure as mentioned hereunder must be
followed:
1) Master should make realistic estimates on cash required in port towards cash advance to staff,
wages for staff expected to sign off shortly, purchase of provisions/bond and cash reserve.
2) As far as possible request should reach the office at least 5 working days (Saturday, Sunday
and Bank Holidays excluded) in advance in order for us to check with the agents regarding their bank
details and still have sufficient time to transfer the funds.
3) The message should be addressed to Account Department with copy to relevant technical
group at and should include the following information:

AA: Breakdown of Cash Required

i. Total Cash Required
ii. Balance of wages of crew on board up to last month
iii. Estimated balance of wages for current month
iv. Crew allotment for current month
v. Leave wages and other allowances for signing off crew during current month.
vi. Cash required for Provisions and Bond
vii. Other cash requirement
viii. Balance of cash on board at the time of requesting CTM

BB: Vessel’s schedule, agent’s details and/or details of ship chandler with whom Master has ordered
provisions as in U.S. Ports Ship Chandlers can deliver CTM at nominal cost.
i. Once an amount is requested in a port, same should not be subsequently changed.
ii. After sailing, Master should immediately inform office amount received from agent/bank,
also indicating any amount if returned to agent.

CTM Arrangement: The following countries/ ports are convenient for arrangement of the CTM:
1) Singapore
2) Panama
3) Egypt including Suez Canal
4) S. Africa
5) S. Korea
6) Taiwan – Kaohsiung and Keelung only
7) Fujairah
8) Belgium, Holland, Germany
9) Turkey including Istanbul transit.
10) USA and Canada – major ports only

In countries / ports other than those above CTM delivery is either not possible (due to currency
restrictions), expensive (due to exchange loss) or unsafe (Robbery / theft).

Visitors
Introduction
Many different people may come and spend time on board your vessel either when vessel is moored or
at anchor or in dry dock or during a sea passage. If something happens to them while on board the
vessel, owner / manager or charterer may become liable. This section puts forward certain mitigating
procedures which will avoid such risks.

Who are Visitors?

For the purposes of this guide, a “visitor” means anyone who comes and spends time on board our
vessel with the permission of the owner, operator or Master and who is not a passenger or a
seaman of the vessel. These includes but are not limited to;
• stevedores
• pilots
• customs officers
• representatives of port authorities/state or public bodies
• cargo superintendents
• non‐fare paying passengers, marine superintendents
• spouses and partners and friends and families of seamen
• riding and maintenance crews
• familiarization crews of prospective purchasers of the vessel official or unofficial guests of the
ship owner or operator or charterer, as well as surveyors and attorneys
This section provides guidance for allowing boarding of visitors in following 3‐main category:
1) All Visitors
2) Supernumeraries ‐ seafarer’s family member/s
3) Vendors /contractors attending vessel

Valid documents needed prior boarding a vessel

1) All visitors
• Photo ID card
2) Vendors / Contractors:
• Passport
• Continuous discharge certificate (CDC)
• Medical fitness certificate
• Copy of Agreement signed with his/her employer (Vendor)
• Yellow fever vaccination certificate
• Cholera vaccination certificate
• “Indemnity letter” issued to the Owner, issued on vendor’s / contractor’s letterhead
• “Visitor’s Pass” signed by the visitor/s (to be executed onboard upon joining). No visitor shall
join vessel unless above requirements are satisfactorily complied with.

Visitor’s Pass
All visitors to the vessel who are neither employees nor representatives of the company nor involved
with the day-to-day operation of the vessel, must sign a visitor’s pass before they board. Such
visitors may include:
• Non‐fare paying passengers
• Supernumeraries
• Spouses, partners, children, friends and families of seamen
• Visitors taking part in organized tours of the vessel
• Riding gangs and maintenance crews if not employed by the vessel Owner
• Personnel from other companies visiting the vessel for training or familiarization purposes
• Guests and/or representatives of the shipowner, ship manager, shippers, receivers, or
charterer if not employed by the vessel Owner
• Cargo superintendents if not employed by the vessel Owner
• Surveyors, and lawyers not engaged or employed by the vessel Owner or vessel’s PNI club

A visitor’s pass is not required in the case of government officials and those whose visit is connected
to the day‐to‐day operation of the vessel, such as:
• Pilots
• Immigration and customs officers
• Port officials
• Stevedores
• Port State Control inspectors
• Port agents
• Shore staff from the office including superintendents
• Surveyors and lawyers appointed by the Owner/Manager or the vessel’s P&I Club

Visitor’s Safety
Master remains responsible for safe conduct of all works onboard, including those which requires
involvement of vendors / contractors. Such vendor/contractor must work under the direct supervision
of the Ship’s officer assigned for the task.
The safety of visitor’s is a paramount consideration and Company’s Safety Management System
has detailed process for their safety familiarization, summarized here below:
1) All Visitors
• Visitor’s Safety briefing at the Gangway, upon boarding
• Visitor’s card provided

2) Seafarer’s family member/s:

• Visitor’s Safety briefing at the Gangway, upon boarding
• F3.8 Third Party - Contractor Familiarization Card within 24 Hrs of joining the vessel

3) Vendors / Contractors :
• Visitor’s Safety briefing at the Gangway, upon boarding
• Visitor’s card provided
• F3.9 Third Party - Contractor Familiarization Check List
• If engaged for sailing onboard, F3.8 Third Party - Contractor Familiarization Card within 24 Hrs
of joining the vessel.
No work involving visitors / contractors shall commence onboard unless they have been properly
familiarized with the above safety induction process.
While working with contractors (riding squads / service technicians / repair teams) following procedures
should be followed:
1) Clear communication agreement for responsibilities and work management.
2) Person in charge identified.
3) Work should only proceed under continuous monitoring of ship’s crew.
4) Permit to work system precautions are strictly followed.
5) Unauthorized access to restricted areas is not permitted.
6) Fire safety precautions to be strictly followed.
7) Appropriate PPE to be complied.