R.O.B. and the Charter Party Freight Retention Clause by Ta. Gunner for INTERTANKO ~ May 2001 1.0 Introduction In nearly all Crude Oil tankers’ Charter Parties there is a provision for Charterers to deduct from fieight due an amount of money equivalent to cargo remaining onboard after completion of a discharge programme. As examples of this provision, the relevant clause in a Charter Party may have the following form of wording: Exxon Mobil VOY2000 clause 18(h) provides “In the event that any liquid cargo remains on board at completion of discharge for the final voyage under this charter, then charterers shall have the right to deduct fiom fieight an amount equal 1o the Free On Board (FOB) port of loading value of such cargo plus freight due with respect thereto. The quantity and quality of such liquid hydrocarbon material shall be determined by a mutually agreeable independent cargo inspector. The quantity of Remaining On Board (ROB) material shall be measured using the vessels wedge tables, if available, or otherwise by wedge formula.” Shell's clause: “If on completion of discharge any liquid cargo of a pumpable nature remains on board (the presence and quantity of such cargo having been established, by application of the wedge formula in respect of any tank the contents of which do not reach the forward bulkhead, by an independent surveyor, appointed by charterets and paid jointly by owners and charterers), charierers shall have the right to deduct from freight an amount equal to the FOB loading port value of such cargo, cargo insurance plus fieight thereon; provided, however, that any action or lack of action hereunder shall be without prejudice to any other rights or obligations of charterers, under this charter or otherwise, and provided further that if owners are liable to any third party in respect of failure fo discharge such pumpable cargo, or any part thereof, charterers shall indemnify owners against such linbility up to the total amount deducted under this clause.” As can be seen fiom the above examples of these types of chiuses, there are many different criteria and concepts that are contained in the clause. However, due to the general form of 1the clause and its consequences, the clause has to be treated as a form of penalty clause which imposes an obligation upon the Charterer, who would claim under the terms of the clause, to abide by and fulfil all the terms and conditions required by the clause before the clause can be used fo deduct a sum of money from the freight payment, Given the content of the foregoing types of clauses, it is necessary to consider the various caiteria amongst which are the following: ‘© The term “Cargo” © The term “Liquid” © The term “Pumpable” ‘© The term “Reachable” © Theter “Freight” © Thetemm “Insurance” + The term “Independent Cargo Inspector” or “Surveyor” The application of the term “Wedge Fommula” ‘¢ The use of the term “Hydrocarbon material” In addition to the foregoing, due to the terms of the clause and its requirements, altemative ‘clauses in the Charter Party may impose altemative operational standards and requirements ‘that could be in conflict with the requirements of this clause. Such circumstances will be discussed in this document. Finally, this type of clause can been seen as a "penalty" type of clause as only one party to the contract, the Charterer, will gain from the terms contained within it. This being so, an Asbitrator should apply a rule of English Law called the "contra proferentum” rule which means that when only one party to a contract will benefit from the terms of a specific clause then, before such a benefit ean be given by the Arbitrator, the full terms and specific requirements of the clause have to be strictly complied within fall 2.0 The Cargo 2.1 What is Cargo? The reference to “cargo” in this clause must refer to the cargo as loaded onboard the vessel for the voyage referred to in the relevant Charter Party. In general terms the word “cargo” could be defined as.Any legal goods or merchandise loaded on board a vessel for transportation, as described in the contract for freightment (the Bill of Lading) for the goods or merchandise, for which consideration (freight) for its transportation is payable This general definition gives rise to the first area of regular dispute with respect to the interpretation/operation of this clause. The clause refers to the presence of “any liquid cargo remaining onboard upon completion of discharge” and goes on to define the manner by which the independent cargo inspector shall quantify the volume of liquid remaining as a result of the tank survey (ROB survey), The clause docs not stipulate that any liquid oil onboard the vessel prior to loading of the current cargo (OBQ) should be deducted from the fotal volume calculated as being present after the discharge programme but the use of the word cargo would require such a volume to be taken into consideration in the volumetric calculation. Given this circumstance, when a financial statement is presented for the deduction of freight pursuant to the tems of this type of clause then, the total calculated remaining liquid volume is offen used for the calculated sum of the deduction, When such circumstances occur then it must be considered that the foam of calculation for the deduction fiom freight due is not in Tine with the intentions of the parties to the contract (Charter Panty) at the inception of the contract and is certainly not an equitable interpretation of the terms of the generalised type of clause. 2.2 The Material in the Cargo Tank ‘The type of dauses disenssed in this paper state in general terms that the Vessel’s Charterers have the right to deduct from the fieight due an amount equal to the FOB cargo value of the liquid cargo volume remaining onboard upon completion of discharge, This term of the clause raises the question as to the identity of the material Jeft in the cargo tank and whether it is cargo — by this it is meant hydrocarbon liquid similar to the description given in the Bill of Lading. Pursuant io the Contract of Sale the price jaid by the Cargo Receivers would be only far the hydrocarbon volume, ie. the Total Volume received less any water corrected to a standard 3temperature (normally 60 °F or 15 °C). Thus, for the tems of the clause and equity to prevail for the ficight deduction, the same conditions should apply to the measured liquid cargo ‘volume found upon completion of discharge. This circumstance immediately considers the term within the clause relating to “Hydrocarbon material” and raises the question as to the water content of the volume remaining onboard — the question of temperature corection will be discussed below when considering the survey and reporting practises followed/utilised by the Independent InspectorSurveyor. Crude Oil will always contain an amount of water. Depending upon the type of crude oil it could be generally slated that when the water content of the crude oil exceeds 500 ppm on loading, water will separate to form its own phase beneath the oil phase. This free water phase wilt be discharged in the carly stages of the discharge programme forming part of the original cargo received onboard. However, a significant water volume (significant in terms of Freight retention value) can cexist in cargo tanks upon completion of discharge, This can occur for two primary reasons that are beyond the control of the vessel: (1) Free water precipitating from the original cargo as loaded can combine with other hydrocarbons to form loose emulsions or sludges which due to their potential viscosities become unpumpable. (2) The Intemational SOLAS Regulations require a tanker to maintain a positive pressure of Inert Gas in its tanks at all times especially when loaded with a volatile hydrocarbon cargo in otder to prevent Oxygen entering the vapour space. Thus during discharge with the ever increasing vapour space Inert Gas is produced from Boiler Exhaust/Flue Gases in order to meet this requirement. Prior to the Inert Gas being placed in the cargo vapour space it is clemed by passing the gas through a water scrubber and thereafter possibly a Wet Deck Seal (a form of non retum valve), This process will saturate the cleaned vapours with water. Notwithstanding the efficiency of the de-mister facilities within the scrubber unit for the removal of water droplets from the gas stream water in the form of gas will be carried into the cargo tanks. As the gas cools in the cargo tanks this water will precipitate info its liquid phase and drop to the floor of the cargo tank. It is estimated, 4by reference to Figure 4.20 of the SIGTTO Manual/Publication, that the extent of water precipitation by this circumstance for a VLCC discharge would be approximately 12 M. Tons (90 bbls). Given that oil floats on water and the possiblity of a thin liquid oil strata floating on top of such precipitated water volume, then the Cargo Inspector/Surveyor could be mislead into believing that the whole volume would be oil when examining the sounding rod upon recovery on deck for a particular measurement. Care should be taken to establish the actual water content of any liquid volume in a cargo tank pursuant to the requirements of this clause. 3.0 The Characteristics of Material Remaining Onboard 3.1 Liquid and Liquidicy ‘This term raises the first technical issue surrounding the characteristics of the type of material remaining onboard fom the cargo carried. Before discussing this issue it is necessary to “set the scene” for sources of any technical guidance that may be available, Elsewhere in a Tanker’s normal Charter Party will be a clause that requires the vessel to uphold and comply with all current Intemational Regulations such as SOLAS and MARPOL, amongst the many. ‘Within the MARPOL regulations, Regulation 138 provides for the requirements necessary for Crude Oil Washing (COW). Regulation 13B (5) requires that the vessel has and Operation and Equipment Manual (often termed “The COW Manual”) that supplies guidance as to how COW could be undertaken, the equipment available onboard the vessel to undertake the operation safely, and the characteristics of the wash medium for an effective COW operation, This later information has recently been amended and now supplies additional guidelines for the physical characteristics of a Crude Oil cargo for the puposes of achieving the intentions of the COW operation, namely, a reduction of a pollution teat from the Crude Oil onboard the vessel. On its own, the tem “liquid”, without any supposting definition, could have many meanings, Afier all, all substances can exhibit the three standard physical phases of solid, liquid and ‘vapour if the relevant temperature requirements are present. Thus, it could be argued that the 5term “liquid” within the Freight Retention Clause has an implied meaning that the material has a liquidity characteristic that is capable of being discharged and delivered to the Cargo Receiver by the vessel’s standard cargo handling equipment — the vessel’s pumps, stripping pumps or eductor system. Such a characteristic is often taken to be the materials viscosity for it is this criterion that impacts a vessel's pump’s ability to pump the material (see INTERTANKO publication ~ An Explanation and Guideline for Pumping Calculations). ‘Thus, reverting to the COW manual and in particular the “new” Section 9, a guideline for this characteristic is supplied as follows: Pumpabitity Criterion is determined by the oil’s Kinematic Viscosity at the observed temperature of the cargo prior to its discharge. In order to attain optimum efficiency for discharge this viscosity should not exceed 250 centistokes and never in excess of 600 centistokes From the foregoing, it could be argued that the required characteristic of material remaining from a cargo should have a viscosity of less than 600 centistokes before it can be classified as being liquid. It is therefore incumbent upon the specified Cargo Inspector’Surveyor to undertake the required determination at the time of the survey before the material remaining from the cargo can be classified as Liquid, 3.2 Pumpable and Pumpability The term “Pumpable” is, in some respects, synonymous with the tem “Liquid”. If the material residues in the cargo tank have the correct physical characteristics to define them as being “Liquid” for the purposes of this clause then they should be pumpable. However, such a statement generalises the circumstances required for “Pumpability”. In order for a liquid to become fully pumpable by the vessel's standard cargo handling equipment then other physical characteristics are required to be in place. For example, a liguid residue in a cargo tank may be unpumpable due to its volatility that impacts an engineering criterion of the pump, namely, The Net Positive Suction Head of the pump. For further technical details regarding this parameter reference can be made to the INTERTANKO publication - An Explanation and Guideline for Puraping Calculations. 6It should be stated that even if the term “Liquid” is not included into the descriptive tems for the material remaining in a cargo tank that is deemed dischargeable, then the term pumpable will imply the same physical characteristics criterion as discussed above, namely, that the residue material must have a viscosity of less than 600 centistokes for effective pumpability tobe achievebie. Pumpability can also be synonymous with the term “Reachability”, The term “Pumpable” ‘implies that a defined liquid volume that is capable of being pumped (ie. the criterion of Net Positive Suction Head) surounds and covers the relevant pump suction in a cargo tank. if, however, the depth of liquid is such that it does not cover the pump suction this will result in the pump casing being filled with Vapour or Gas and the residue liquid not being “Pumpable” or Reachable” by the pump. 3.3. Reachable and Reachability ‘As stated above, the term “Reachable” can be synonymous with the concept of pumpability in so far that if a liquid volume is pumpable it must also be reachable by the vessel's pumps. However, reachability also contains other concepts for the limitation of the discharge of residue material within a cargo tank Reachability of liquid material for discharge within a cargo tank can be explained by the location of the liquid volume and the ability of that volume to become pumpable, namely, its potential to flow to the fixed and designated pump suction position in a cargo tank. If the ‘oltume is remote from the pump suction location then itis not “Reachabie”, ‘What circumstances could be envisaged for such an event to occu’? For Pre MARPOL and Single Hulled SBT type vessels with the extensive finitue in their cargo tanks, entrapment of pools of liquid by studge remote from the tank suction point is a real possibility. Thus, if by chance the sounding of the residues in the tank were to detect such a volume then a false impression could be gained by the surveyor as to the total residue content of the tank without regard to the location of the sounding position in the eargo tank,Such a circumstance as described above raises alternative issues relating the methodology of the survey undertaken such that “reachability” of any liquid volume ean be assessed, In. this regard, the method of survey becomes important such that this exclusion could be used for this type of event. Typically, a ROB survey as undertaken by a Cargo Inspector/surveyor relies upon the findingymeasurements from one sounding in each cargo tank. The sounding location usually selected by the Inspector'Surveyor will be as close to the aft bulkhead of the ‘cargo tank as is possible given the availability of access points in each tank. Reverting to the discussion above regarding the mandatory COW Manual to be found onboard every crude oil tanker, this Manual contains guidelines as to how to determine the “dryness” of each cargo tank and establish the effectiveness of a COW operation, Paragraph 4.4.4. of this manual prescribes the locetion and number of the necessary sounding points for ‘undertaking this task and states: Means such as level gauges, hand dipping and stripping system performance gauges ax referred t0 in 4.4.8. (see below for discussion) shall be provided for checking that the bottom of every cargo tank is dry after crude oil washing. Suitable arrangements for hand dipping must be provided at the aftermost portion of a cargo tank and in three aher suitable Jocations unless other approved means are fitted for efficiently ascertaining thatt the bottom of every cargo tank is dry. For the purpose of this paragraph, the cargo tank bottom shall be considered “dry” if there is no more than a small quantity of oil near the stripping suction with no accumulation of oil elsewhere in the tank. If the foregoing survey method and equipment were to be used instead of the regular one sounding then, a better indication (statistical) of the diversity of the type of material remaining in the cargo tank could be established and a better assessment of the “reachability” of any localised liquid volumes remote from the pump suction point could be achieved. Other benefits to be derived from such a survey practice will be discussed below in. this paper. ‘An example of an altemative “reachability” problem relates to the construction of certain Double Hulled tankers. Certain of this type of tanker have their pump suctions located in a ‘well at the aft end of the cargo tank. This well could contain about 3 nt of cargo volume. If, however, the eargo type is paraffinic/waxy and cold ballast is taken in the double Aull/bottom 8space adjacent (0 a tank being discharged then the content of the well could start to solidify (subject to the Pour Point temperature of the cargo) thereby obstructing liquid access to the pump suction point, ‘The liquid remaining in the tank, therefore, would not be reachable by the pumps as it would be remote fom the pump suction point. Such a design feature may not be known by‘to the attending Cargo Inspector/surveyor who would report that Liquid volumes ‘were present in the tank upon completion of discharge. 4.0 The ROB Report Having examined many hundreds of this type of report it never ceases to amase the author that a Cargo Inspector/surveyor is able to establish that either only Liquid or Sludge (N.B, not Sediment - see below for discussion) is present in the cargo tank. Logic dictates that both phases of the crude oil will be present in every cargo tank but in differing proportions dependent upon the type of crude oil, the effectiveness of the COW undertaken and the efficiency of the discharge/stripping programame. The reason, of course, for such a clear statement on the ROB survey document is the use of a single sounding in each cargo tank which must produce one single finding for the nature of the material in each cargo tank. ‘The MARPOL Regulations supply guidance as to how the survey should be undertaken — reference paragraph 44.4. of the COW Manual — and by use of this method a clearer indication of the nature of the bottom moterial residues could be obtained. The current practices of Cargo Inspectors/surveyors, when only obtaining one sounding in a tank, are contravening the best practice guidelines as provided for under MARPOL which the Charterer requires to be observed by reference to an alternative clause in the Charter Party ‘at typically requires that the vessel is and will comply with all cwrent Intemational Regulations. This situation is further provoked by altemative terms of the typical Freight Retention Clause which requires the recorded to volume to be calculated by use of the Wedge Formula. This aspeet willbe further discussed below in this document, 4.1 Is the Material Sediment or Studge? Although this section discusses material that is not fiquid, for which a Freight deduction may be applicable, the use of terminology on the agreed ROB report is very important for it could have altemative consequences for the vessel. Before providing an example of an impact for 9‘the misuse of terminology the relevant terms should be defined. The following definitions ‘can be found in the ISO TR 8338 document dealing with ROB volumes on vessels, Sediment - "The element of nomfree-Bowing material left in a ship's cargo tank which is essentially inorganic in nature, for example sand, rust articles etc. I is not soluble in hydrocarbon oil." Sludge - "That element of material in a ship's cargo tank which is essentially not free flowing, It consists of hydrocarbon waxes and may contain water‘oil emulsions and sediments" The common description used for non-liquid and unpumpable residues in a cargo tank is that of “Sediment”, Reviewing the foregoing description it becomes clear that such a description, in the majority of events, is not correct and inapplicable for the residues found on the sounding rod. However, for someone reviewing the ROB report at a later time, and not present for the survey, could construe that the depth of material left in the cargo tank was ‘inorganic material such as rust or sand, Notwithstanding general impressions at the time of an ROB survey, crude oil generally contains little or no substance such as sand, although on some occasions it can be found in trace quantities. Given the foregoing circumstance it could be understood therefore that the inorganic material found on the tank bottom at the end of discharge, not associated with the crude oil cargo, must have been present in the cargo tank prior to loading, If this material, as described as sediment, caused an inability of the vessel 10 discharge some unreachable liquid (entapped by the sediment, as distinct from siudge which could have emsnaled from the cargo, in a remote location in the cargo tank) then the vessel could be found liable for any resulting cargo shortage. Thus, from the foregoing, the description and terminology used on the agreed ROB report is very important and should be precise. 5.0 The term “Freight” Charter Party Freight (as distinct from Bill of Lading freight) is the monetary consideration paid for the Charter of the vessel, Although, when a vessel is chartered generally she has to make available the total cargo space to the Charterer, the total cargo space may not be used bby the Charterer. Thus, the reason for deadfieight terms within a Charter Party. Likewise 0within a Charter Party there is generally a clause — sometimes termed the Clean Seas Clause — which allows the Charterer to pay additional fieight for the collected slops in a slop tank if the Charterer wishes them transported to a discharge port for discharge to his orders, ‘AS an aside it is questionable to the writer whether the payment of freight value alone for the recovered volumes in the vessel's slop tank could be considered adequate consideration (payment) for the transfer of custody of the volume given the expenses incuned in the volumes collection and the previous sums of money that may have been paid for the same volumes by way of Freight Retention. ‘The Freight paid for by the Charterer to charter a vessel will depend upon the quantity of cargo loaded as described on the cargo’s Bill of Lading. The Bill of Lading cargo figure, in tum, is stid to represent the quantity of cargo delivered to the vessel by the shipper of the cargo. As has been implied above in the definition for Cargo, the material already onboard the vessel, whether it be slops or OBQ volume, does not constitute a part of the Bill of Lading vohime and therefore fivight will not be paid for the volume unless the Clean Seas clause applies. Therefore, tuming to the meaning or content of the Freight Retention Clause, freight can only be deducted for a cargo volume remaining onboard and not for material existing onboard prior to loading. If the existing material onboard were to be included in the calculation for freight retention then, not only would such an act be unequitable and not following the strict meaning of the clase, but would expose the Owner to the retention of freight for volumnes for which compensation would have been paid pursuant to the fivight retention clause in previous Charter Parties — ie. 2 double or tiple deduction for the same volumes. Finally under this section it is worthwhile briefly discussing the legal principles behind the concepts of “Admixture” and “Comixture” that, in tum, will emphasise the importance of cleat recon’s being maintained for the OBQ and Slop measurement survey and its ‘quantification, In the ease referring to "Ypatiania’, the vessel had collected a significant volume cof slop within the vessel's slop tank. The vessel was chartered and cargo was loaded on top of the defined and measured slop volume. At the discharge pott the receivers required the vessel to discharge total volumes on board the vessel but the Owners refused and retained on board a volume exquivalent to the originally measured slop volume. The High Court decided that such an action was in order and that the original Bill of Lading cargo volume had been dischargedWithout discussing all the legal implications, the principles involved within the case were those of distinguishing admixture of a cargo from co-mixture with a cargo. 6.0 ‘The term “Insurance” The term “Insuence” within this clause could relate to differing insurance policies. Taking the most obvious first, namely, the main insurance policy for the cargo described and defined Within the Bill of Lading, then clearly, if a proportion of the cargo that is capable of discharge fhas not been discharged then compensation for this expense could be sought for the lost expense to the insured. However, what happens when the Charterer pays the fieight for the Slop volume and therefore obtains an “insurable interest” in the volume and a proportion of this volume remains onboard. It is reasonable to believe that the original insurance policy for the Bill of Lading cargo as purchased would not cover this additional volume, Thus, which insurance premium should be wed in order to calculate the recoverable sum for the ROB volumes remaining in the vessel’s slop tank particularly when “load on top” has been exercised by the vessel upon authorisation from the Charterer. In such a situation the unit value for the diverse volumes would be different thereby attracting a differing rae of insurance pretium. ‘An equitable remedy to such a situation would be the proportioning of the premium in accordance with the proportions of the volumes in the slop tanks, 7.0 The term “Independent Cargo Inspector” or “Surveyor” Reference to this term in the clause rajses two issues with respect to the operslion of the clause, namely, Axbitration decisions considering disputes relating to this clause have required that the independent surveyor nominated to undertake the required survey for the assessment of the natu of the material remaining in the cargo tanks and the subsequent volumetric calculation must make the determination at the time of the survey. A statement on a subsequently typewritten ROB report relating to the Liquidity, pumpability or even possibly of reachability would not be acceptable, Further, printed definitions on an ROB report as to the similarity between a liquid determination and the concept of pumspability as well as similar statementsmade by others — the survey office manager — will not be acceptable for the fulfilment of the suryeyor's responsibilities as required by the clause, In short, the assessment of the nature and volume of ROB material relating to the cargo has (o be established and recorded at the time of the survey. Independent — what does this really mean in the context of the operation of this clause? In general tems it would imply that the surveyor used for this task is not in the direct employ of cither parties to the Charter Party contract. However, in this particular case itis believed that the term goes beyond such a general meaning. For example, is the cargo inspector being used as the custody transfer inspector under the requirements and terms of the Sale contract sulficiently independent for the purposes of this Charter Party clause? In order to determine the answer to this question it is necessary to look at each case individually together with the commercial and corporate relationships between the contracting parties to both the Contract of Sale and the Charter Party and the agents or “servants” used pursuant to requirements in these Contracts, Other issues arise with respect to the appointment of the Independent Inspector or Surveyor? In certain of these types of clauses there is an allowance for each party to appoint their own surveyor. What happens then if the two surveyors do not agree on their independent findings at the time of the survey? Which surveyor’s report prevails? What happens when one party fails to appoint a surveyor or the surveyor arrives after the ROB survey is completed? In the event that the parties agree to a sole Surveyor and agree to pay the survey fees proportionally — does the non payment of fees by one party invalidate one of the strict requirements of the clavse and therefore the proposed deduction in the amount of freight due? The answers to all these question would depend upon the facts in the issue but non payment of survey fees, it is thought, would not allow the defaulting party to avoid the findings of a properly executed survey. 8.0 The term “Wedge Formula” By reference to the foregoing discussions the author has great difficulty in understanding why a Charterer would require a vessel to undertake this type of measurement calculation when such a calculation method implies a direct breach of the International Regulation (MARPOL) Guidelines This. observation is particularly pertinent given the Charterer’s requirements in B‘an alternative clause that requires the vessel to comply with all the relevant Intemational Regulations throughout the period of the Charter. By use of the “Wedge Foomula to calculate the final “liquid” volume in the cargo tankis it implies that the Charterer will acoept the depth reported for the single sounding in each cargo tank - nomally taken close to the aft bulkhead of the cargo tank. As discussed above, a single sounding does not supply a reasonable indication of the extent and nature of residue ‘material eft in a cargo tank. Relying upon this one sounding in a cargo tank fox such purposes is similar to selecting one thousand people and selecting one of the persons as being the person representing the average height of the original thousand chosen, Luck may allow the surveyor to be comect for the volume reported but the probability is small. The reference to the use of a wedge formula does not define which wedge formula for there are probably as many as there are Cargo Inspectors. Some wedge formulas ate derived from first principles of geometry whereas others are developed fiom the original types of the geometric wedge formulas for ease of calculation or computerisation. In this regard it should be stressed that, although this ROB survey is probably one of the most important surveys to be carried out for the efficicnt transportation of a crude oil cargo, the current culture and procedures used for this survey are those of speed ~ which implies potential inaccuracy. An examination of a vessel's time sheet bears witness to this fact. 8.1 The Geometric Form of the Wedge Formula This form of the wedge fonnula assumes that the cargo tank is “boxed shaped” with no internal “deadwood” or fumiture (pipeline systems, heating coils etc) that would impact the accuracy of ‘the volume calculated from the sounding, Further the wedge formula calculation makes an ‘enormous assumption that any “liquid” found in a cargo tank is in the form of a regular wedge shape with its base at the aft bulkhead of the cargo tank. Clearly, such a series of assumptions can nomally invalidate the absolute accuracy of the calculation immediately given, amongst other issues, the shape of wing cargo tanks (the tum of the bilge) and in particular those wing tanks at the fore and aft parts of the vessel — No. I wing tanks and slop tanks. However, this type of wedge calculation can be undertaken as follows (ref appendix 1):The Calculation Method for Geometric form of the Wedge Formula Assumption:- Given the small angle involved with the trim of the vessel then the "Sine" of an. angle is the same as the "Tan" of the angle. ‘Therefore Step 1 Correct the position of the sounding position with respect to the aft bullthead of the tank due to the trim of the vessel - distance = A A=Tank Reference Height (Observed Height} x Tan X ‘Where X is the Trim angle of the vessel and, Tan X = (Aft Draught - Forward Draughty Length Between Perpendiculars (L.B.P.) of the vessel Step 2 Determine the distance of the apex of the wedge from the aft bulkhead in order to discover whether (1) should a wedge formula be used at all (N.B. a wedge formula is not applicable if (a) the liquid surface covers the total tank floor or the calculated apex of the wedge is af or beyond the forward bulkhead of the tank or (b) sludge R.O.B. volumes) and (2) whether the wedge is a regular wedge (this can be checked by comparison with alternative soundings) Distance of the apex of the wedge from Sounding position is F Observed Sounding is S F=STonX The Distance of the apex of the wedge to the aft bulkhead is E Where B= (F- A) +B and B is the distance on deck from the point of sounding to the aft bulkhead ‘Step 3. Determine the depth of the wedge at the aft bulkhead of the tank - D D=ETaXStep 4 Knowing D (sounding depth at the aft bulkhead) and E (the distance from the aft bulkhead f0 the apex of the wedge), then the area of the longitudinal cross section of the ‘wedge may be calculated. Thus ‘As the area of a triangle = (Base x Height) /2 then; (Dx E)/2=cross sectional area of wedge ‘Step 5 Having obtained the cross sectional area of the wedge the volume of the wedge may be calculated by multiplication by the breadth of the tank (N-B. The Breadth of the tank should be measured at the bottom of the tank at the aft bulkhead position and not at deck level or elsewhere within the tank) ‘Thus Volume of Wedge = Cross sectional Area x Breadth of Tank Throughout this calculation it is of importance that all distances are in meters. Do not therefore ‘use centimetres for the observed sounding. 8.2 1.8.0, 8697 Wedge Method ‘As an allemative to the foregoing method an 1S.0. standard method is also available. This method depends upon the accuracy of the vessel's tank calibration tables for the larger ullages/smaller soundings in the cargo tank. If the tank calibration tables are accurate for this region of the cargo tanks then this method will give added accuracy to the general method of calculating tank residues after discharge. The method is as follows Step 1 Calculate Dg, the Conected liquid sounding at the aft bulkhead position: Da=D-+ [f(¥ - HD) ‘Where: D is the observed liquid sounding fis the Trim factor (TyL;) Tis the vessels trim. ‘Y is the distance of the sounding point to the aft bulkhead His the reference height of the Tank Ly is the vessel's Length Between Perpendiculars 16Step 2 Calculate C,, the Tank Constant: =LWOxTxL) ‘Where: Le is the Length of the Tank Step 3 Calculate the "k" coefficient: k=DaxG Ifk> 0.5 there is no wedge Tek <0,5 there is a wedge Step 4 If k > 0.5; calculate the volume of the liquid contained in the tank from the tank calibration tables using the Observed sounding, D, applying the trim corrections, Step 5 Ifk < 0.5; calculate Dx, the wedge sounding: Dx = Da/2 Step G Enter the tank calibration tables with Dx, without applying trim corrections to obtain the equivalent volume Vo. Step 7 Calenlate the liquid wedge volume, Vi; Vi=Vox2xk 83 The alternative Residue Calculation If the procedures as specified in the COW manual are followed for the determination of the “Dryness” of a cargo tank, namely, the sounding of the residues in four differing locations within the cargo tank, then the foregoing methods of calculation can be avoided. Such a method will provide a clearer indication as to the type and nature of the residues on the tank floor as well as provide clearer indications as to the profile of the residues within the cargo tonk. Assuming the shape of the individual cargo tanks is fairly regular/constant in a fore and aft direction and, notwithstanding the fact that the vessel will be significantly trimmed by the stem, then the four measurements, a8 suggested in the COW Manual guidelines, as obtainedby sounding can be used to calculate an average sounding so 2s to obtain a single sounding. The single average sounding can be used directly to obtain an equivalent volume trom the vessel's tank calibration tables. 9.0 Conclusions Although in the recent years the number of occasions that this clause has impacted the payment of the fall freight due on completion of the voyage are few. However, with the current increased value of Crude Oil it is thought that potentially the number of such issues could rise. Notwithstanding the foregoing and given the guidelines supplied above for both the respective operational and survey parameters, a vessel's fivight account should not be impacted by this clause if diligent operations for a discharge of cargo are observed. It is, of course, accepted that a erude oil cargo can exhibit inherent vices (sudging) which could impact such operations but with the use of more searching survey procedures (obtaining a more relevant profile of residues than currently undertaken) for this important survey the vices of the cargo should become inmelevant for the interpretation of this clause and its defining parameters. “The foregoing discussion will hopefully supply the necessary scope of information to ‘Vessel/Charterer’s Operations as well as Independent Surveyors as to the defining parameters involved within the general types of Freight Retention Clauses so that disputes conceming the operation of this clause can be avoided.