Inspection Deficiency Replies

1
Inspection Deficiency Replies

• REPLIES TO
• SIRE
• (and other)
• INSPECTION COMMENTS

2
Inspection Deficiency Replies

• Assumption
• The quality of the replies to inspection comments
  or deficiencies is a measure of owner management
  quality.

3
Inspection Deficiency Replies

• When the SIRE inspector leaves the gangway, the
  vessel inspection is finished
• NOW the vetting of the vessels management begins
  .

4
Inspection Deficiency Replies

• How is the owner going to be judged for
  fitness?
• By the vetting managers subjective assessment of
  the quality of the owners replies to comments
  about his ships latest inspection.

5
Inspection Deficiency Replies

• The vessel, crew and her owners are part of a
  bucket of resources that must work together to
  maximize the profit of an oil trade (the deal).

6
Inspection Deficiency Replies

• The parts of the bucket that carries the oil
  traders deal are
• cargo scheduler (operations assistant of the
  trader)
• charterers vessel operations coordinator
• cargo insurance broker and underwriter
• charterers PI Club
• independent petroleum inspectors
• measurement field agents - cargo auditors
• port agents
• charterers chartering manager
• vessel, master, officers and crew
• vessel owner and technical managers
• vetting manager
• vessel class society

7
Inspection Deficiency Replies

• We are all the servants of the cargo trader ..
  His deals pay for all of our activities.
• What does he want .. ?

8
Inspection Deficiency Replies

• 2 Competitive cost .
• A charter rate that is better than market.
• What is the traders 1 objective ..?

9
Inspection Deficiency Replies

• OPTIONALITY!
• The ability to deliver the cargo anywhere the
  ship can safely go.

10
Inspection Deficiency Replies

• The amount of money Koch makes on every rejected
  vessel is
• Absolutely nothing!
• The added-value product of every vetting system
  is a pool of approved vessels.

11
Inspection Deficiency Replies

• So the ships that make the most money for us are
  not necessarily the cheapest but the ones that
  are universally accepted. They offer the
  greatest optionality to the trader.

12
Inspection Deficiency Replies

• Help me help you get your ship accepted
• Send the inspecting company, SIRE (and/or me),
  deficiency responses that show
• acceptance respect for the system.

13
Inspection Deficiency Replies

• Help me help you get accepted
• Send responses that show
• acceptance respect for the system.
• a living Safety Management System that takes
  every deficiency seriously.

14
Inspection Deficiency Replies

• Help me help you get accepted
• Send responses that show
• acceptance respect for the system.
• an active Safety Management System that takes
  every deficiency seriously.
• a reply that identifies and eliminates the root
  cause of the deficiency closure.

15
Inspection Deficiency Replies

• Replies which are not accepted
• Rectified .. (trust me!?) .

16
Inspection Deficiency Replies

• Replies which are not acepted
• Rectified
• When convenient spending money is never
  convenient!

17
Inspection Deficiency Replies

• Replies which are not accepted
• Rectified
• When convenient
• At the earliest opportunity

18
Inspection Deficiency Replies

• Replies which are certified D.O.A.
• Rectified
• When convenient
• At the earliest opportunity
• We have reminded the Master/Chief

19
Inspection Deficiency Replies

• Replies which are not accepted
• Rectified
• When convenient
• At the earliest opportunity
• We have reminded the Master/Chief
• The parts have been delivered on board

20
Inspection Deficiency Replies

• Replies which are not accepted
• Rectified
• When convenient
• At the earliest opportunity
• We have reminded the Master/Chief
• The parts have been delivered on board
• He has been cautioned and instructed

21
Inspection Deficiency Replies

• A world-class response includes
• The deficiency number and text repeated.

22
Inspection Deficiency Replies

• A world-class response includes
• The deficiency number and text repeated.
• A convincing statement that the root cause has
  been sought and found - (see Analytic Trouble
  Shooting).

23
Inspection Deficiency Replies

• A world-class response includes
• The deficiency number and text repeated.
• A convincing statement that the root cause has
  been sought and found - (see Analytic Trouble
  Shooting).
• A statement that corrective action has been
  completed, (or will be completed by a stated
  date).

24
Inspection Deficiency Replies

• A world-class response includes
• The deficiency number and text repeated.
• A convincing statement that the root cause has
  been sought and found - (see Analytic Trouble
  Shooting).
• A statement that corrective action has been
  completed, (or will be completed by a stated
  date).
• A statement that objective evidence is held by
  the owner, sufficient to prove that the
  deficiency is closed.

25
Inspection Deficiency Replies

• Objective evidence
• A document, report, message, completed checklist
  copy, note, or certificate in your files, that
  you can show me when I come to visit your
  offices.
• Something that closes the loop on the
  deficiency!

26
Inspection Deficiency Replies

• Bad example 1
• Deficiency The vessel does not have a vapor
  release response plan.
• Reply The vessels vapor release response plan
  is included in section 8.3.2 of the vessels ISM
  Manual.

27
Inspection Deficiency Replies

• Bad example 2
• Deficiency The main engine is covered with
  oil.
• Reply The main engine has been cleaned.

28
Inspection Deficiency Replies

• Bad example 3
• Deficiency The IGS oxygen sensor bubbler was
  found without any water in it while the vessel
  was discharging.
• Reply The bubbler was filled with water
  immediately.

29
Inspection Deficiency Replies

• Bad example 4
• Deficiency A June inspection found a C-of-C
  issued Feb, due in July vessel to submit
  results of stern tube lube oil analysis.
• Reply Condition of class will be attended to in
  due course.

30
Inspection Deficiency Replies

• Summary Koch uses the owners replies to detect
  the presence (or absence), of an active
  management system that is necessary to provide a
  reliable vessel, and a reliable transportation
  partner, for routine cargo transport AND in the
  event of an incident.

31
Inspection Deficiency Replies

• It is apparent from government initiatives, legal
  cases and post incident comment, that regulators
  would like to consider the shipowner and the
  charterer as
• co-venturers in the oil transportation voyage,
  and jointly responsible for its outcome.

32
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica
• Cerda
• Neptune Dorado
• September 18, 2002
• Potential charterers liability in U.S.

33
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica owner invisible - charterer took the
  heat.
• Cerda
• Neptune Dorado
• September 18, 2002

34
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica
• Cerda detained in Europe - charterer was named
  in the press.
• Neptune Dorado
• September 18, 2002

35
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica
• Cerda
• Neptune Dorado detained San Francisco - FBI
  visited the charterer.
• September 18, 2002

36
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica
• Cerda
• Neptune Dorado
• September 18, 2002 the USCG 96 hr Notice of
  Arrival must now include name address of the
  charterer.

37
Inspection Deficiency Replies

• Events which demonstrate this point of view
  include
• Erica
• Cerda
• Neptune Dorado
• September 18, 2002
• Potential charterers liability in U.S.

38
Inspection Deficiency Replies

• Kochs 5-year results
• 8000 vetting inquiries
• 3000 voyage charters
• 3.8 billion barrels of oil moved

39
Inspection Deficiency Replies

• Kochs 5-year results
• 1 crew fatality
• 3 medical diversions
• 7 spills total
• 2 detentions (lifeboat failures)
• 3 general average claims
• 4 arbitration cases

40
Inspection Deficiency Replies

• Kochs 5-year results
• Koch executive response to these results
• Try harder.

41
Inspection Deficiency Replies

• For the oil company vetting manager, every
  marginal vessel he/she approves can be a career
  decision.
• He/she is not going to bet his career on an owner
  who sends second-rate replies to what are
  considered to be serious vessel deficiencies.

42
Inspection Deficiency Replies

• So
• Help me help you get your ship accepted ..
• Show me you care enough to send your very best
  response to every inspection comment or
  deficiency.

43
Inspection Deficiency Replies

• Thank you!