PETROLEUM CARGO LOSSES PREVENTION DURING SHIPMENTS

CAPT. IRAWAN ALWI FIIMS.,MNI.,MBA.IIMS conference, Singapore, 18 November, 2010

www.oceanwise-indonesia.com

OIL LOSS

DIFFERENCES/ CHANGE

IN

QUALITY & QUANTITY

QUALITY DETERIORATION(Degradation, Contamination etc

QUANTITY DIFFERENCESR1,R2, R3,R4

PHYSICAL LOSS

(real loss, actually happen)

APPARENT LOSS

(spurious loss/on paper only)

POTENTIAL FACTORS:1. Evaporation ( MINIMAL)

2. Leakage or spillage

3. Slopping

4. Quality degradation or

contamination

5. Crime, etc

POTENTIAL FACTORS:1. Inaccurate calibration: (expired, deformation, etc)

- tanks (shore & ship),meter prover

2. Inaccurate measurement:

- temperature, gauging, water, sludge, clingage detection

- rolling & pitching

2. Inaccurate sampling:

- method, equipment, position, etc

2. Inaccurate laboratory analysis/determination:

- density,

exam

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OIL CARGO LOSS BASIC CONCEPT

exam

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d

DESCRIPTION OF CARGO LOSS

A. PHYSICAL OR ACTUAL LOSS:- is a type of cargo loss that physically or actually occurs during the subjected process.

- Example: evaporation, leakage, slopping, pilferage,contamination, spillage etc.

B. APPARENT OR SPURIOUS LOSS:- is a type of cargo loss that it is seen on the document,but physically does not occur.

- Example: inaccurate B/L, Certificate of quality, Ullagereport etc.

ONE OF THE MAIN SURVEYORS JOB IS CARGO LOSSES PREVENTION..

max. 0.5%

max. 0.2% VEF analysis: Students table for 95% confidence limit Stable & consistent accurate

max. 0.5%

SHORE TANKS

Loading Losses: Transportation Losses: Discharging Losses:

FACTORS OF APPARENT LOSSES: 1. Inaccurate calibration:

Shore tanks Vessel

2. Inaccurate measurement Temperature Ullaging/gauging due to:

- Pitching & rolling - Undetectable free water - Sludge or un-pump able

materials (hard) Free water detection

3. Sampling & analysis (density, %BS&W) 4. Using different tables 5. Improper filling of shore lines

FACTORS OF PHYSICAL LOSSES: 1. Evaporation 2. Spillage or leakage 3. Slopping 4. Crime

FACTORS OF APPARENT LOSSES: 1. Inaccurate calibration:

Vessel Shore tanks Weigh bridges

2. Inaccurate measurement: Temperature Ullaging / gauging

3. Using different Density 4. Sampling & analysis (density) 5. Improper filling of shorelines

SHORE TANK

B/L (R2 or diff of 2-3) (R1 or diff of 1-2) (R3 or diff of 3-4)

Supply Losses (R4 or diff of 1-4)

max. 0.5%

Negligible

Sampling MP

1 2 3 4

VEF analysis VEF analysis

GENERAL ACCEPTABLE LIMITS OF CARGO DISCREPANCIES IN QUANTITY

SHORE TANK

Loading Losses: Transportation Losses: Discharging Losses:

FACTORS AFFECTING APPARENT LOSSES: QUANTITY: 1. Inaccurate calibration tables:

Weighbridge Shore tanks Vessels tank

2. Inaccurate measurement Temperature Sounding/Ullaging due to:

- Rolling & Pitching - Overtrimmed or overlisted - Undetectable free water - Sludge or unpumpable materials - Accuracy of sounding/ullaging device

3. Sampling & Analysis 4. Improper filling or displacement of the shore lines QUALITY: 1. Sampling (method, position & temperature) 2. Sample compositing 3. Analysis

FACTORS AFFECTING PHYSICAL LOSSES: QUANTITY: 1. Spillage or Leakage 2. Slopping 3. Pilferage QUALITY: Contamination due to: Spontaneous hydrolysis by moisture or free water Hydrolysis by water or sea water entrainment Reaction with the residue of the last cargoes Reaction with coating, tank or interior materials. Steam leaking (Heating system)

SHORE TANK

B/L (R2 or diff of 2-3)

max. 0.2%

(R1 or diff of 1-2)

max. 0.5%

(R3 or diff of 3-4)

max. 0.5%

1 2 3 4

Supply Losses (R4 or diff of 1-4)

max. 0.5%

RATIO OF CARGO LOSS

R1 = loading loss = B/L Qty loaded x 100%B/L

R2 = transportation loss = SFAL SFBD x 100% B/L

R3 = discharging loss = Qty recd Qty dischd x 100%B/L

R4 = supply loss = B/L Qty recd x 100%B/L

Legends:B/L = Bill of LadingSFAL = ships figure after loadingSFBD = ships figure before discharging

BASIC CONCEPT OF CARGO LOSSES VS. INCO TERMS

FOB. CONTRACT, WHERE SHOULD THE CLAIM LODGE ?

IS APPARENT LOSSES CLAIMABLE ?

OPEN DISCUSSION.

RECORD ON CLAIM OF CARGO LOSS

1. Majority of claim on cargo loss are apparent cargo loss that discrepancy between shore and ship sides or delivery and outturn figures are more than 0.5%.This case cannot be accepted, since there is no evident that is physical loss.

2. The standard pleading for cargo loss in the past, 0.5% could not be applied no longer. Now this limit should be stipulated in the sale contract or charter party. This figure is never accepted by USA & other countries.

SHIPBOARD QUANTITY DETERMINATIONENVIRONTMENTCONDITION

CHARACT. OFCARGO

TEMP. DRAFT / TRIM GAUGING LIST FWDETECTION

TRIMCORRT

LISTCORRTMEASUREMENT

& READING

SAMPLING

LAB. ANALYSIS

ASTM, API, IPTABLES

OLD & NEW

DENSITY 15(API GRAVITY,

REL. DENS)

WCF

VCF

CORRECTEDGAUGE

TOV

GOV

NSV

GSV

NET WEIGHT

% S&W

VOLFW

SHIPSTANK CALIBR

TABLES

ENVIRONTMENTCONDITION

Note :

Trim & List Corrections shall be deleted for shore quantity determination

Note :

Trim & List Corrections shall be deleted for shore quantity determination

ANTICIPATING Pilverage ?

HOW TO CONTROLSHIP-SHORE QUANTITY DISCREPANCY

ACTIONS TO BE TAKEN (when the discrepancy exceeds the allowance)

Reconcile all calculations: Recheck volumetric extraction from tank calibration table Check SG or Density adopted

Blow the ships pipeline before regauging

Action to be taken.

Check gauging tape & thermometer used

Regauge all ships tanks and recheck:

The tank reference height Compare with initial gauging Compare with B/L quantity (for significant variance)

Apply VEF (Vessel Experience Factor)

If discrepancy exceeds 0.5%, lodge a Notice of Protest against the vessel

CARGO RECONCILIATION

1. IF THE DISCREPANCY BETWEEN SHORE AND SHIP FIGURES EXCEEDS THE ACCEPTABLE/ ALLOWABLE LIMIT, CHECK

SHORE & SHIP FIGURES CALCULATION.

2. ENSURE THE LINE IS FULL OR EMPTY.

3. REGAUGE SHORE & SHIP SIDES, INCL. TEMPERATURE, FW,SUITABILITY OF THE MEASURING DEVICES USED, REF.HEIGHT ETC.

4. ENSURING THAT THERE IS NO MISFLOW/ MISLOADED/ MISDISCHARGED:- CHECK COFFERDAM, DEEP TANK, BALLAST TANK, FOREPEAK, BUNKER AND OTHER HIDEN SPACES.

Continued

- CHECK DATA OF INITIAL & FINAL QUANTITY OF BUNKER ANDFUEL CONSUMPTION OF THE VESSEL.

- CHECK OBQ OR ROB AND RESIDUAL CARGO REMAINING ON BOARD OR AT THE SHORE/ STORAGE TANK(S) WHETHERANY CLINGANGE, SEDIMENT, SLUDGE OR OTHERUNPUMPABLE MATERIALS ?

5. ANALYSE DIFFERENCE OF FIGURES PER SEGMENT AND QUANTITY COMPONENT.- CHECK THE CORRESPONDING COMPONENT PER SEGMENT.- CHECK PETROLEUM TABLE APPLIED, DENSITY, % S & W,TEMPERATURE, SEA CONDITION, VEF ETC.

WHAT IT CAUSE ??

MOSTLY ARE APPARENT LOSES. COVERING : - HUMAN ERRORS - EQUIPMENTS ERRORS - WEATHER PROBLEMS - DIFFERENT METHODS/TABLE USE - TANKS CALIBRATION ?? - SLUDGES ?

APPARENT LOSS IN QUANTITY

A. CAUSES :

- INACCURATE GAUGING & TEMP. MEASUREMENT ( method,equipment, condition, skill etc )

- INACCURATE CALIBRATION OF SHIP, SHORE TANKS ANDFLOWMETER.

- DISTURBED CONDITIONS ( cargo properties, surroundings,vessel position & stability etc )

- INACCURATE SAMPLING & ANLYSIS

- DIFFERENT OR INACCURATE TABLE USED & INACCURATE CALCULATION.

Continued

B. PROTECTIVE & PREVENTIVE ACTIONS:

- ACCURATE GAUGING & TEMP. MEASUREMENT.

- ACCURATE SAMPLING & ANALYSIS

- SAME TABLE & METHOD OF CALCULATION.

- MINIMIZE CONDITION DISTURBANCE.

APPARENT LOSS IN QUALITY

A. CAUSES:

- INACCURATE SAMPLING ( method, equipment, sampling point, sample preparation etc ).

- INACCURATE ANALYSIS ( method, equipment, preparation,calculation etc ).

B. PROTECTIVE & PREVENTIVE ACTIONS:

- ACCURATE SAMPLING & SAMPLE PREPARATION.- ACCURATE ANALYSIS

PHYSICAL LOSS IN QUANTITY

A. CAUSE:

- EVAPORATION, SPILLAGE, SLOPPING, LEAKAGE, PILFERAGE ETC.

B. PROTECTIVE & PREVENTIVE ACTION:

- INERT GAS INJECTION/ BLANKETING, FLOATING ROOFSTORAGE, VAPOUR RECOVERY SYSTEM, SKILL & MORALEIMPROVEMENT, SECURITY, CRUDE OIL WASHING ETC

PHYSICAL LOSS IN QUALITY

A. CAUSE:

- CONTAMINATION, QUALITY DETERIORATION, ON FIRE/ EXPLOSION ETC.

B. PROTECTIVE & PREVENTIVE ACTION:

- CLEAN & DRY COMPARTMENT WITH SUITABLE MATERIAL,- TANK CLEANING, GASING UP, INERTING, N2 BLANKETING

COC. FOR SURVEYORS(NATIONAL CERTIFICATION)

1. CERTIFICATE OF COMPETENCY FOR EDIBLE/PALM OIL SURVEYOR. 2. CERTIFICATE OF COMPETENCY FOR DRAUGHT SURVEYOR. 3. CERTIFICATE OF COMPETENCY FOR PETROLEUM CARGO

SURVEYOR. 4. CERTIFICATE OF COMPETENCY FOR BULK COAL AND MINERAL

CARGO SURVEYOR. 5. CERTIFICATE OF COMPETENCY FOR LPG/ LNG CARGO SURVEYOR. 6. CERTIFICATE OF COMPETENCY FOR CONTAINER CARGO SURVEYOR. 7. CERTIFICATE OF COMPETENCY FOR IMDG./DANGEROUS CARGO

SURVEYOR. 8. CERTIFICATE OF COMPETENCY FOR REFRIGERATED CARGO

SURVEYOR. 9. CERTIFICATE OF COMPETENCY FOR HEAVY LIFT CARGO

SURVEYOR. 10. CERTIFICATE OF COMPETENCY FOR BULK CHEMICAL CARGO

SURVEYOR.

DIPLOMAS FOR SURVEYORS.(INTERNATIONAL CERTIFICATION)

SEE BROCHURES..

S C C E S S

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See you in Bali Next IIMS conference, Sept. 2011