MASTER ORAL (1)

1. MASTER ORAL (1)

2. What is the difference between Bareboat and Demise Charter? Bareboat charter is by paying hire money take total control of the vessel as desponent owner (the desponentowner stands in place of and in lieu of the legal owner and with his responsibilities, although without legal title to the vessel) i.etachnical/crew management and Operation. The bareboat charterer bears Operation (Running) cost and Voyage costs. The Demise charter is similar to bareboat charter but the technical and crew management is given to the existing Owner’s management team by paying Management Fees, while bearing the vessel’s Operating Costs.

3. What are the various type of Ship’s Regitry? A registry that is open only to ships of its own nation is known as a  close, traditional or national registry. Registries that are open to foreign-owned ships are known as open registries (off-shore), and some of these are classified as flags of convenienceparticularly if there is no genuine link between the Flag and the ship..

4. “Bareboat Registration” (sometimes also called “dual” or “parallel” registration).  This is a system which in many cases will allow a ship registered in one state (the state of primary registration or “flagging out” state) to be bareboat chartered to nationals of another state (the “flagging in” state) for a fixed period during which the bareboat charterer will operate the ship under the flag of the flagging in state.  During the period of the bareboat charter the primary registration will be cancelled or suspended (though for certain purposes only) but will revive upon termination of the bareboat charter.

5. How would you verify the Authenticity of Flag of Convenience vessels? Crew COC verify with crew’s National Authority who issued. Class certificates, Statutory certificates verify either with Flag State or Classification Society. Any other certificates issued by Flag State , to verify with Flag State. (Is this Master’s job?)

6. What will you do when two Refugees are not given details of their information, such as name, nationality? Captain has already rescued them; and they have no benefit of not disclosing their information, if they left their country to seek residency or asylum in other country. Antyhow, since the question was aked; Mostly Refugees can be of same nationality, and most likely they are not the strangers; The reason they don’t disclose may be; They don’t understand, then you looked for translator amongst them who speaks English They may be scared, then you explain them if they wanted to be landed at next port, and everything goes smooth, they give their information to speed up the landing process If you still could not obtain, then inform Owner, P&I, and next port agent and follow their instructions.

7. How would you apply for COR? The following documents are required Close Registry Forms Application to Register Declaration of Eligibility (Declaration of Ownership) Supporting Documentation Bill of Sale Copy of Certificate of Incorporation (if owner is a body corporate) Certificate of Survey for Tonnage & Measurement International Tonnage Certificate Builders Certificate (for new builds) Deletion certificate/transcript from the current register or a written undertaking to provide one within six weeks Copy of the ship’s current Continuous Synopsis Record Mortgage registration forms (if appropriate) In Myanmar – Permission from Myanma Investment Commision (MIC), Ministry of Transport, Income-tax clearance require

8. Open Registry Appoint Law Firm by giving Power of Attorney Open Off-shore company and Register Forms Application to Register Supporting Documentation Bill of Sale Copy of Certificate of Incorporation (if owner is a body corporate) Certificate of Survey for Tonnage & Measurement International Tonnage Certificate Builders Certificate (for new builds) Deletion certificate/transcript from the current register or a written undertaking to provide one within six weeks Copy of the ship’s current Continuous Synopsis Record Mortgage registration forms (if appropriate)

9. Required documents for (bareboat charter) registration Forms Application to Register a bareboat charter ship Declaration of Eligibility for a bareboat charter ship Supporting Documentation Copy of Certificate of Incorporation (if charterer is a body corporate) Copy of the charter party agreement Primary registration certificate Certificate of Survey for Tonnage & Measurement International Tonnage Certificate (ITC69) Copy of the ship’s current Continuous Synopsis Record

10. In all registration; If a new name, get approval from Flag State Apply MMSI number, Inmarsat ID, AAIC, Call Sign and apply Ship station licence before apply for Registration Once the application is complete, a Carving and Marking note will be issued to the attending surveyor.  Once signed and returned the Certificate of Registry can be issued.

11. How would you change the Flag? Apply as required for Close, Open or Bareboat Registry Obtain Carving Note, Ship’s permanent marking marked Apply Minimum Safe Manning Document Apply CSR Arrange for review of SMM by Flag State and undergo Interim Audit for DOC and SMC Apply crew COR if crew nationality different from Flag State

12. Obtain Ship Station Licence and re-programmed EPIRB, AIS, Inmarsat, VHFs, SVDR, SSAS, LRIT with new MMSI and Call sign Change POR and Call Sign on lifeboats, L/Rafts container, Port of Registry on Life buoys Supply new National Ensign Flag Undergo Flag change survey if require Change new Statutory certificates, stating “by the Authorization of New Flag State) Endorse on all Documents where new Flag State name is required Obtain new COR

13. What would you do when COR is lost? Submit a letter providing details of the loss to the Registrar at your Port of Registry, which should include the Official Number and vessel's name (with photocopy of COR attached), along with payment of the appropriate fee for the reissuance of COR or a Provisional Certificate of Registry which to be surrendered in exchange of COR.

14. What is a mortgage? A mortgage is a legal document that creates a security for a loan or other financial consideration, whereby, the registered vessel or share or a share of it is used as security. The person using the vessel as security and receiving the loan is called the mortgagor. The person taking the vessel as security and usually giving the loan is called the mortgagee. Only registered vessels can have mortgages recorded against them. 

15. What is arrived ship? a ship is considered arrived and the lay-time can commence when certain conditions specified in the charterparty(according to Notice Clause) are fulfilled, i.e. 1) reach the designated position for loading or discharging, 2) vessel is ready in all respects for cargo operation and 3) NORproperly given  

16. What are NOR, NOP and LOP? Notice of Readiness(NOR) Notice presented to to the charterer, shipper, receiver or other person as required by the charter partyby masters or ships' agent stating the readiness of the arrived ship to load. It determines when the time starts to count.

17. Note of Protest a written declaration by the Master of circumstances beyond his control which might have given rise to suspecting damages to the ship or cargo. It is to be made at the Notary Public (or) Consuls . When the loss or damage not yet known

18. Letter of Protest is a letter served by Master either to shipper, stevedores, charterers for performance that are inappropriate or failure in fulfilling their obligations which may cause future claims to the owner.

19. What is Master’s action when the ship has arrived but Charterer failed to load cargo? • Master should • Tender Letter of Protest • Sit out the laytime • when laytime expires , note protest, inform owner and wait for instruction

20. What is the purpose of Classification Societies? The purpose of a Classification Society is to provide classification and statutory services and assistance to the maritime industry and regulatory bodies (e.g Flag State Administration) as regards maritime safety and pollution prevention, based on the accumulation of maritime knowledge and technology.

21. The objective of ship classification is to verify the structural strength and integrity of essential parts of the ship’s hull and its appendages, and the reliability and function of the propulsion and steering systems, power generation and those other features and auxiliary systems which have been built into the ship in order to maintain essential services on board. Classification Societies aim to achieve this objective through the development and application of their own Rules and by verifying compliance with international and/or national statutory regulations on behalf of flag Administrations.

22. By registering with Classification Societies the ship owners benefit from; Knowing the condition of own ship Knowing the ship is properly maintained by periodical surveys Shippers attraction Advantage in Insurance premium Mortgaging And Resale valuew

23. What is the purpose of Registration a ship? • To enable the ship to trade internationally; • to facilitate easier sale and purchase of the ship; • to facilitate ship finance (mortgages may not be obtainable for unregistered ships).

24. COR gives identity of a ship provides evidence of title to ownership Indicates that the ship is engaged in lawful navigation constitutes prima facie authority that the vessel is registered under the laws of the Flag State.

25. What is the difference between Statutory and Trading Certificates? Statutory Certificates Certificates issued to ships after relevant surveys as required by International conventions such as Safety Of Life At Sea (SOLAS), Load Lines (LL), Prevention of Marine Pollution from ships (MARPOL) and Tonnage Measurements are called Statutory Certificates. Trading Certificates Certificates that are required to be carried onboard besides Statutory Certificates to trade in certain area or to enter certain ports such as Certificate of Registry, Sanitary Exemption Certificates are called Trading Certificates.

26. What is Article of Agreement? A contract between the Master of a ship and a crew member to record the conditions of employment for the crew for a voyage or a certain period of time signed prior to and upon termination . Crew Agreements for each merchant ship generally list: A description of the ship and it's owners Name of the ship's Master Where the article was signed/closed Daily meal provisions for the crew Rules or laws to be observed during the voyage Particulars for each member of the crew, including name (signature), age, place of birth, previous ship, place and date of signing, capacity , Certificate of Competency number (if any), when expected on board, salary, next of kin and address details Particulars of discharge (end of voyage, desertion, sickness, death, never joined etc) Records of Births, Deaths and Marriage

27. What is Salvage? A service which confers a benefit by saving or helping to save a recognized subject of salvage when in danger from which it cannot be extricated unaided, if and so far as the rendering of such service is voluntary in the sense of being attributable neither to a pre-existing obligation, nor solely for the interests of the salvor.

28. The right to be rewarded for salvage at sea under common law is based both on equitable ( FAIR, REASONABLE. JUST. UNBIASED) principles and public policy and is not contractual in origin. The law seeks to do what is fair to both of the property owners and the salvors • Four elements for the salvage award • Recognized subject matter • Real danger • Voluntary service • Success

29. What considerations should be made when going for salvage operation? The Salvage that can possibly be carried out by a cargo ship is towing a disabled vessel to a port of refuge. So, the question is assumed as consideration for towing instead of Salvage as follows;

30. What is the difference between LOF 95 and LOF 2000 Development of Lloyd's Open Form(LOF): LOF was established in 1908 by Committee of Lloyd’s as an international standard salvage agreement. The characteristic of LOF is so called “No cure-No pay.” However, to meet with increasing attention to the environmental protection, radical changes Salvage Agreement and SCOPIC have been made to the principle of “No cure-No pay” by the introduction of Safety Net and Special Compensation since the 1980s.

31. Fittings and structure of the vessel are not specifically designed for towing • May not be strong enough to bear the weight or be shock loaded. • May cause damage or stress to structure of vessel • May cause undue wear on tow line • Maneuverability of the towing vessel is restricted • The rope used for towingmay not be completely suitable as a tow line • The possible absence of expertise in towing operation • Emergency Towing Booklet shall be consulted.

32. Then, in LOF2000 which came into use on 1 September 2000, the SCOPIC Clause was incorporated. LOF 1980 : Introduction of Safety Net LOF 1990 : Incorporation of International Convention on Salvage 1989 Introduction of Special Compensation Article 14 LOF 1995 : Revision following the changes of UK Maritime Shipping Act LOF 2000 : Introduction of SCOPIC Clause LOF 2011 : The latest version incorporating SCOPIC 2005 & 2007

33. Vessel dropped anchor at Lanthaya, is that an arrived ship? A vessel is an "arrived ship" and the laytime allowed under the charterparty begins to count as soon as the following events occur: 1. The vessel must reach the contractual loading or discharging destination as stipulated in the charter. ("Geographical arrival".) 2. The vessel must be ready in all respects to load or to discharge or lie at the disposal of the charterers. ("Actual readiness".) 3. Proper Notice of Readiness ("NOR") must have been given to the shippers or consignees in the manner prescribed in the charterparty. ("Triggering off laytime".) If the C/P stated to reach Lanthaya within Laycan, or if no berth is nominated the ship was an "arrived ship" when it arrived at the port limits, in which cases dropped anchor at Lanthaya is anarrived ship.

34. What will you do when there is wharf contact and hull damage? • Inform agent • Inform owner to arrange P&I • Collect evidence • The following evidence should be retained on board the vessel in order to facilitate the handling of the claim:  • the exact date, time and location of the incident; • details of the weather and tidal conditions; • details of those on the bridge/in the engine-room/at mooring or anchor stations prior to/at the time of the incident; • the identity of any pilots or tugs assisting the vessel at the time of the incident;

35. the identity of any witnesses ashore or on other vessels; • details of any maneuvers which took place leading up to the incident; • details of any communication between the vessel/pilot/tugs leading up to the incident; • details of the vessel’s draughts; • details of the vessel’s colour scheme so that paint marks on damaged property can be matched; • details of the vessel’s condition immediately following the incident, with particular regard to the condition of cargo on board and leakage of oil. • Copy data from SVDR into its removable drive

36. Documents to be ready • the original working chart (from which nothing should be erased); • deck and engine room movement books; • rough and fair deck and engine-room log books; • any navigational equipment logs; • course recorder print-out; • telegraph and engine data logger print-out; • echo sounder print-out; • photographs/video recordings of the damaged property (and the damage or lack of damage to the vessel); • vessel turning circle and stopping distance data sheet; • any reports produced by pilots, tugs or witnesses including the vessel’s crew and third parties.

37. Most FFO claims occur whilst entering or leaving port or whilst berthing, at which time there is nearly always a pilot on board. However in most countries the pilot’s authority does not supersede that of the master. Irrespective of whether pilotage is compulsory or voluntary the master remains in overall control of the vessel and the pilot is a servant of the vessel owner. This being the case, the owner of the vessel remains vicariously liable for any claim by a third party resulting from the negligence of either the pilot or the master.

38. Any incident should be notified to the Club immediately and the circumstances of the case investigated as quickly as possible. This is because: • not all jurisdictions place strict liability on the vessel; • even in locations where strict liability applies, it is often subject to certain limited defences, for example Act of God, force majeure, or sole negligence of a third party; • it may be possible to pursue a recourse action against another party, for example, the charterer, on the basis of a breach of a “safe port” warranty in the charter-party; • it may be possible to pursue a recourse action against the pilot, although the liability of a pilot is frequently limited to a very small amount by local law and, in any event, pilots seldom have any substantial assets.

39. What is Seaworthiness Certificate? A certificate issued by a classification society surveyor to allow a vessel to proceed after she has met with a mishap that may have affected its seaworthiness. It is frequently issued to enable a vessel to proceed, after temporary repairs have been effected, to another port where permanent repairs ...

40. When do you contact P&I correspondent? When crew sustained personal injury, death When stowaways and Refugees onboard Cargo Claims is expected Salvage Agreement and SCOPIC Special Compensation and payment to the salvors under the SCOPIC clause (the SCOPIC remuneration which exceeds the salvage remuneration) shall be covered by the P&I Club Loss of or Damage to Property Collision Oil Pollution

41. What Risks are under Protection? • PROTECTION (EXPENSES) • Liability for – • Injury, Illness or Death of • Stevedores • Visitors • Passengers • Crew members • Liability for- • Repatriation and substitution expenses of seaman • Loss/damage to effects of seaman & others • Shipwreck unemployment Indemnity • Stowaways and refugees • Net diversion expenses

42. What Risks are under Indemnity? • INDEMNITY (Losses) • Liability for – • Loss or damage to Property • Fixed or floating • Infringement of rights • e.g docks, jetties, buoys, fish farms • Liability for – • Pollution • Load, discharge, container lost, bunkering • Liability for –

43. Liability for – • Collision • 1/4th or 4/4th RDC (damage to other ship) • property/cargo onboard • Loss of life • sums in excess of sum property insured under H&M policy • Liability for – • Cargo • Loss, shortage, damage or other responsibility • costs of disposal of damaged cargo • failure of consignee to remove cargo • Through/transhipment B/L

44. Liability for – • Wreck removal • raising, removal, destraction, lighting, marking of wreck • property onboard if not covered by H&M • Wreck must be CTL • value of wreck for benefit of Club • Liability for – • Unrecoverable GA • Fines • Costs and Expenses • Omnibus Rules

45. How would you make the ship seaworthy under Hague Rule? • Due diligence to provide a seaworthy vessel (extends to manning, equipping and cargo-worthiness) before and at the beginning of the voyage.

46. What is FSA(Formal Safety Assessment)? FSA is a structured and systematic methodology, aimed at enhancing maritime safety, including protection of life, health, the marine environment and property, by using risk analysis and cost benefit assessment. FSA can be used as a tool to help in the evaluation of new regulations for maritime safety and protection of the marine environment or in making a comparison between existing and possibly improved regulations, with a view to achieving a balance between the various technical and operational issues, including the human element, and between maritime safety or protection of the marine environment and costs.

47. FSA consists of five steps: identification of hazards (a list of all relevant accident scenarios with potential causes and outcomes); assessment of risks (evaluation of risk factors); risk control options (devising regulatory measures to control and reduce the identified risks); cost benefit assessment (determining cost effectiveness of each risk control option); And recommendations for decision-making (information about the hazards, their associated risks and the cost effectiveness of alternative risk control options is provided).

48. In simple terms, these steps can be reduced to: What might go wrong? = identification of hazards (a list of all relevant accident scenarios with potential causes and outcomes) How bad and how likely? = assessment of risks (evaluation of risk factors); Can matters be improved? = risk control options (devising regulatory measures to control and reduce the identified risks) What would it cost and how much better would it be? = cost benefit assessment (determining cost effectiveness of each risk control option); What actions should be taken? = recommendations for decision-making (information about the hazards, their associated risks and the cost effectiveness of alternative risk control options is provided).

49. How GA Contribution are made? General Average contribution is the monetary contribution required of ship-owners and cargo owners in respect of general average expenditures and general average sacrifices. The general average loss is contributed by the parties interested. In contribution of general average loss the contributory interest, amount to be made good and contributory values are considered. There are three main contributing interests' ship, cargo and freight.  four main amount to be made good’ ship, cargo, freight and expenses.  three main contributing values” ship, cargo and freight. 

50. If a general average situation arises the ships owner will normally appoint a firm of average adjusters to collect the general average contributions from all the parties liable within a general average claim. The adjusters work out how much each party has to pay based on the total value of the property rescued and the values of the property sacrificed and any expenditure to save the rescued cargo and vessel.This process takes a considerable period of time and as such a general average bond is usually sought in the interim from those liable before cargo is released. This general average bond is effectively a promise to pay whatever contribution is assessed, backed up by a general average guarantee form a bank or insurance company. It is important to remember that the bond covers whatever contribution is assessed and is in relation to the cargo saved and not the value of your cargo on board.