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Course DIPLOMA IN SHIP SUPERINTENDENCY

Course Code FLR3322

TMA 1

Total Number of
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Date 28-JAN-2019

Lloyd's and the Lloyd's Crest are the registered trademarks of the Society incorporated by the Lloyd's Act 1871 by the name of Lloyd's.
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INDEX

Sr No Questions Page
1 Briefly describe the working knowledge you should have for each of the
following 3
groups to understand their position in the company's operation
(a) The ship's masters and chief engineers
(b) The Human Resource team or crewing agency
(c) The purchasing department
(d) The accounting department
2 Name and briefly describe the international maritime conventions that are
regarded as the Pillars of Quality Shipping. 5

3 You have been newly appointed as a vessel super intendent in a company

and have been told that you will be managing a bareboat chartered vessel 6
and a time-chartered vessel. Explain what you would understand by this.

4 Describe briefly the difference between the Flag State and a Port State for a
vessel trading worldwide. 7

5 How would you prepare for one of your ship's 15-year dry-docking? 8
6 You are a superintendent of a vessel which has very little port stay due to its
nature of trading, and the master reports to you that the crew morale is
down because they are unable to go ashore. What steps would you take to 8
improve the situation onboard within the budgetary restraints?

7 As a superintendent you find that the budget given to you to manage one of
your 9
vessels are insufficient due to the ongoing technical problems on-board,
because of which you require the budget to be increased. Write a report to
the Technical Director of the company regarding the situation and explain
why you need an increase in the budget, citing the problem(s) and the
solutions.

References 11

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1(a). MASTER and CHIEF ENGINEER OFFICER

The Master is appointed by the Company and acts as its representative in matters related to ship,
crew and cargo. He takes on authority and responsibilities as laid down in the Merchant Shipping
Act, (as amended) and mandatory rules and regulations, applicable codes, guidelines and
standards recommended by the IMO, Administration and other authorized bodies.
The Master has the authority and overall responsibility for the safe operation of the ship, safety of
the crew, passengers and protection of the environment at all times.

SOURCE: SALTER I.R, 2016. [page 332, Figure 26] BUSINESS and LAW FOR MARINER. 2ND
EDITION.
GLASGOW, BROWN, SON and FERGUSON

The Chief Engineer Officer (CEO) is in charge of the Engine Room Department and is responsible
for the efficient and safe operation and maintenance of all machinery and cargo systems on board
He reports to Master and communicates through Superintendent for all technical matters
He supervises all Engineer Officers and Engine ratings. He is responsible for indenting and safe
keeping of all engine stores, spares, tools and instruments and maintaining proper records of
same. He will be personally responsible for supervising the bunkering operations and ensuring that
correct quantity and quality of bunkers received.

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1 (b). THE HUMAN RESOURCE TEAM OR CREWING AGENCY

HR dept. should study and implement the national and international rules and regulations
regarding safe manning of ships. They have to be well founded so that the data about basic, OT,
bonuses and so on feeds into the system smoothly. They should Identify, allocate and co-ordinate
for training of the resources and personnel. They should carefully coordinate with commercial
departments and plan sign on/off and repatriation arrangements.

The crewing agencies are the companies which are set up to specialise solely in the aspect of ship
management and contract with ship owner to maintain suitable crews on board at all times. The
types of crews supplied by agencies vary according to what the owner wants and the demands of
the flag country.
The main advantage agencies provide is that the ship owner could be based from any country but
as they are not the employers of the crew, they are not bound by the country’s employment laws.
In addition, these agencies are able to offer economy of scale.

1 (c). THE PURCHASING DEPARTMENT

The purchasing department takes care opf the stores requirement of the vessel which includes
victualling, consumables, ropes, paints, cabin stores lubricants etc. After approval from the
Superintentand the requisitions are forwarded to purchase department. They send these
requisition to the suppliers and handle their quotations. Often purchase department needs to have
good knowledge regarding the stores. They should take advise from Master or technical
superintendnt regarding the technical details in case of any ambiguity. They should also ensure
that contractors and vendors providing services are made aware of the Company’s SMS
requirements vis-à-vis timely supply/quantity/quality of stores and other services. They should
also take timely feedback rearding the quality/quantity/time taken for the supplies from the
vessel.
Purchase department must scrutinise the orders to find any duplicates. Also they should read the
comments by both suppliers and ship and confirm whether thie item will be accepatable to the
vessel by contacting the vessel/Superintentand.

1 (d). THE ACCOUNTING DEPARTMENT

The accounting department takes care of the invoices to be paid and keeps owners updated about
their budgets, actual operational expenses and budgetary forecasts. They want the
superintendents to approve the invoices in time, mention correct invoice address, update them
regarding special orders, cancelled orders and any big payments.
Owners must look to the ship manager to provide them with a safe, efficient and economical ship
operation package which can be accurately costed to enable the owners to make the correct
commercial decisions.
As far as accounting is concerned, the ship manager’s job falls in to 3 stages – budgeting,
processing and reporting. The budget estimate will be discussed with the owner in detail so that
agreement can be reached. The second processing stage is reached as the ship is in service,
expenditure is actually incurred and bills have to be paid. The manager will prepare a detailed
report analysing the costs incurred on behalf of the owner and compares these with budgetary
forecasts.

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2. PILLARS OF QUALITY SHIPPING

4 most important international maritime conventions that are regarded as the Pillars of Quality
Shipping are SOLAS, MARPOL, STCW and MLC.
The 1974 SOLAS convention came in to force in 1980. The main objective of SOLAS is to specify
minimum standards for the construction, equipment and operation of ships compatible with their
safety. Flag states are responsible for ensuring that ships under their flag comply with its
requirements and a number of certificates are prescribed in this convention as proof that this has
been done.
MARPOL was adopted on 1973 and a protocol was adopted in 1978 before entering in to force. In
1997, a protocol was adopted to add new annex. MARPOL 1973/78 includes regulations aimed at
preventing and minimising pollution from ships and currently includes 6 annexes. These annexes
deal with regulations for prevention and control of pollution by oil, noxious liquid substances,
harmful substances in packaged form, sewage, garbage and air pollution from ships.

The ILO MLC consolidates, into a single convention, 69 maritime labour standards that had
previously been adopted by ILO as mandatory conventions or recommendations. The ILO MLC
aims to ensure that all seafarers have the right to a safe and secure workplace, fair terms of
employment, decent working and living conditions on board ship, and clear rights to health
protection, medical care and other social protection.

STCW establishes minimum standards of competence and qualifications for ships' officers and
ratings and other personnel at sea, and requirements for certification by labour supply nations and
flag states. It also sets out mandatory requirements for company responsibilities, crew
familiarisation, safe manning and minimum rest hours, and the conduct of medical examinations.

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3. SUPERINTENDENT OF A BARE BOAT and TIME CHARTERED VESSEL

As a Superintentand you will be managing a variety of vessels and he must be thorough with the
charter party requirements and clauses.

In a time-chartered vessel, the charterers agree to hire a vessel for a specified period of time in
which ship owner are responsible for vessel’s running expenses and charterer are responsible for
commercial employment of the vessel.The hire may be for one voyage (trip charter) or anything
up to several years (period charter) Owners operate the vessel technically but not commercially.

In a bare boat-chartered vessel, the charterers agree to hire a vessel for a specified period of time
in which charterers acquire most of the rights of owners. Charterer literally takes over the ship and
has possession of it together with the right of management and control. Charterer will have both
commercial as well as technical control of the vessel.

The difference is explained in the table below.

COSTS TIME CHARTER BARE BOAT

CHARTER
Depreciation, Interest on Capital finance Owner Owner
charges
Insurance on Hull/ Machinery Owner Generally, Owner
Survey Classification Owner Generally, Charterer
Maintenance and Repair Owner Generally, Charterer
General costs Owner Charterer
Stock, Supply crew Owner Charterer
Crew wages Owner Charterer
Lube Oil Owner Charterer
Fresh Water Owner or Charterer Charterer
Bunker Charterer Charterer
Harbour Dues Charterer Charterer
Loading Charges Charterer Charterer
Discharging Charges Charterer Charterer
Stowage Charges Charterer Charterer
Cleaning of Holds Charterer Charterer
Damage to Cargo Owner or Charterer Charterer

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4. FLAG STATE and PORT STATE

All ocean-going vessels engaged in international commerce must have a country of registry (Flag
state) in order to operate in international waters.
Flag state must be an IMO member nation. Flag states have certain rules and requirements for
vessels that fly their flags which includes crew nationality, crew composition, ship owner citizenship
and ship building requirements.
The flag state has the main responsibility for ensuring that its vessels complies with all international
conventions and meet all established international guidelines. The flag state conducts periodical ship
examinations, which include a thorough inspection of the vessel and its safety systems.

Port states, that is, those countries at whose ports a vessel calls, also play an important role in this
regulatory framework. Port State Control (PSC) is the inspection of foreign ships in national ports to
verify that the condition of the ship and its equipment comply with the requirements of international
regulations and that the ship is manned and operated in compliance with these rules.
This cooperative effort between flag and port states provides a maritime safety enforcement system,
which has proven effective over the years.

Type of Purpose Certificate Issued if any Types of Survey

Entity
Flag State To ensure Statutory certificates Initial, annual, intermediate,
compliance with under various conventions renewal, special for issuance and
international law maintenance of statutory
certificates
Port State To ensure At the end of the said At random in a port.
continued inspection, Port State
compliance with Control Officer Issues a
international law PSC Inspection certificate
as well as a with list of deficiencies if
vested interest in any and time period for
protecting their rectifying the deficiencies
territorial waters

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5. 15-YEAR-OLD DRYDOCKING

Preparation for dry docking starts with preparation of dry dock repair specifications which should
be sought from the vessel at least 6 months before tentative dry-docking date.
Since it’s a 15-year-old dry dock, all preparations for 3rd special survey to be made. A survey
planning questionnaire and a special survey program to be prepared at least 6 months in advance
and to be submitted to class for agreement. The programme is to include proposals for the special
survey, including the means of providing the access for close up survey and thickness
measurement. (if it’s an ESP Vessel).
Verify last DD Superintendent report, Yard reports for better planning. Confirm approximate DD
schedule with operations manager. Prepare and send Preamble and DD Specs to Ship yards in the
vessels trade region for quotations. Send inquiry for Hull paint quotes. Verify availability of major
spares onboard required during DD and raise indent.
Arrange for thickness measurement team. Depending on UTM reports, afloat steel renewals can be
planned during sailing.
Compare Ship yard quotes and prepare Budget. Once Budget is approved, finalize yard and
renegotiate unit costs and major repair costs.
Maintain list of Spares/Stores/Repairs being done at DD/layup by ship and under DD Account code.
Send required documents to Shipyard at least 1 month in advance: GA, Midship section, Docking
plan, Anode plan, Bottom plug plan etc.
Details of accessory work removal and refitting of insulation, panelling, pipes, coolers or floor
plates etc. to carry out actual work, scaffolding/staging requirements, Requirement of Maker's
representative or service technicians shall be checked with the yard well in advance.

6. CREW MORALE DOWN DUE TO LACK OF SHORE LEAVE

As per MLC 2006 Regulation 2.4.2 seafarers shall be granted shore leave to benefit their health
and well – being and with the operational requirements of their position.
In an era of minimum manning and fast turnaround, this can be administratively demanding and
one has to balance this requirement with the necessity of maintaining the ship’s operational
capacity. Indeed, the same regulation notes that shore leave for seafarers has to be consistent
with the operational requirements of their positions. Few things make seafarers so disgruntled as
denial of shore leave.
One superintendent has to deal this situation quite diplomatically. He can arrange extra shore
leave boats at anchorage/ bunkering port. Also, for this ship we can increase the entertainment
budget for ship’s club. Providing more data for internet / calling minutes also will help. More
magazines / movies for entertainment can be sanctioned in the store indent.

Master needs to be advised to keep the crew morale high at all times and motivate the crew to
achieve the targets set by the organisation. Master is instructed to ask the crew members
regarding their requirements such as toiletries, bond etc. and same can be arranged in cheap rate
from reputed ship chandlers. Superintendent must also seek advise from Master in this situation as
he has better idea regarding the crew behaviour and he is the on-scene coordinator to help the
Superintendent.

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7. Report on Budget Hike for MT ABCD for FY 2019-20

March 2019
Capt. Sibin MG

Summary

This report into the increase in budget allocated for MT ABCD, an MR sized tanker in time charter
with Shell and owned by UK Tankers and it will address concerns about the reduced budget in view
of the recent technical issues faced by the vessel.

Introduction

This report addressed to Director (Tanker Technical), UK Tankers.

This report addresses Marine and Technical Superintendent’s concerns with the proposed budget.
These concerns arose from the recent technical issues faced by MT ABCD. It has been suggested
that we should re structure and increase the allotted budget to prevent a further loss by the
subject vessel: this report will assess the current situation and make recommendations for what
action could be taken.

Method

Interviews were carried out with top 4 officers sailed in the vessel during last year. They were
questioned about problems faced by the vessel and solutions for the same. Checked service
reports of technical work shop attended the vessel during this period and noted their
recommendations. Checked last docking report, latest class listing, Vessel’s online PMS and current
defect list.

Research into sister vessel’s condition managed by our rival company was also undertaken and
personal visit to the vessel carried out and Inspection report scrutinised.

Findings

1. Existing situation

MT ABCD is a double hull product tanker built by DSME in 1998 and was under our management
since delivery. Vessel is presently carrying white oil in Malaysia / Singapore / Indonesia coast and
is calling at an average around 10 ports in a month. Vessel is fitted with 4 centrifugal pumps which
are driven by steam turbines powered by steam from 2 auxiliary boilers. Vessel’s discharge
performance is below the charterer’s/ terminal’s requirement at most ports due to frequent boiler
break down. Presently port boiler is out of order and starboard boiler is firing in emergency. Vessel
is having condition of class for port boiler. Vessel had too many off hires and performance claims
for the last quarter which inversely affected the revenue from the vessel.

2. Ship’s officer’s concerns

Interviews with Ship’s top 4 indicated that dissatisfaction with the existing time required for
connecting the spares. Due to frequent port calls and short port stay, unable to comply with rest
hours of Chief officer and 2nd engineer. Master suggested posting of additional chief officer and 2nd
engineer. CEO suggested to opt for shore-based maintenance contract for Main and Auxiliary
engine.

3. Marine and Technical Superintendent’s concerns

Additional budget required for complete re tubing of both boilers and automation of both boilers
needs to be upgraded and training to be given for ship’s personnel. Spares for the same needs to
be procured as soon as possible. Purchase department to be instructed to procure the spares from
OEM only, not from another vendor and spares needs to be connected to the vessel on urgent
basis.

4. Competitors’ practice

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Sister vessel managed by rival company have additional officer in junior level. They also have
shore-based maintenance contracts for Main and Auxiliary engine. However, sister vessel does not
have any issues with boiler.
Conclusions

While savings have been made, the existing situation is unsatisfactory and could seriously damage
the profit from the subject vessel. Action should be taken to address technical concerns and
prevent off hires and performance claims. There are three possible courses of action:
1. Spares to be procured and auxiliary boiler issues to be resolved at the earliest.
2. Main and Auxiliary engines to be put up for shore-based maintenance.
3. Additional officer and engineer to be posted on board the vessel.

Recommendations

1. Allot more budget to spare procurement and speed up the same and get the auxiliary
boiler repaired as soon as possible.
2. Allocate more budget towards repair to include shore-based maintenance for main and
auxiliary engines.
3. Allocate more budget towards crewing so that additional officer and engineer can be
posted on the vessel. They can be posted as Junior officer / Trainee officer so that their
salary will be kept minimum.

With this I conclude my report for increasing budget for MT ABCD for financial year ABCD.

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References

Publications from IMO

SOLAS 1974 as amended.

MARPOL 1973/78 as amended.
STCW 2010 as amended.
MLC 2006 as amended.

Company Manuals

The Shipping Corporation of India ltd. SMS Manual vol 1 and 2.

The Shipping Corporation of India ltd. Company Procedure Manual.

Others

International Shipping Federation (ISF), 2012. The guidelines on the application of the ILO
Maritime Labour Convention. 2nd edition.

Maclachlan, M. 2004. The Shipmaster’s Business Companion. 4th edition. The Nautical Institute.

Narottam Morarjee Institute of Shipping (NMIS), 2018. Study Material – Economics of Sea
Transport.

Salter, IR. 2016. Business and Law for Mariner. 2nd edition. Glasgow, Brown, son and Ferguson.

The Nautical institute (NI), 2015. The Nautical Institute on Command. 3rd edition,
Section 4.

The Institute of Chartered Shipbrokers, 2017. Ship operations and management. Chapters 1, 2, 3,
5 and 7.

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