INTERTANKO AGM ATHENS 2005

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INTERTANKO AGM - ATHENS 2005

• INDUSTRY CHALLENGES - SECURITY THROUGH THE EYES
  OF AN AGENT

Leigh Phillips President
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Definition of Agency

• A Legal Relationship created by an Agents
  Agreement to Represent or Act for the Principal
• The Agent is empowered by the Principal to
• achieve Savings in Port Expenses
• save Time for the Vessel in Port
• To this we now add
• ATTENTION TO SECURITY PROCEEDURES

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TODAYS AGENTS VALUE
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COST TO THE AGENT

• Consumed by Security Time Demands
• Increase in Liabilities/Penalties
• Immeasurable Risk of Burning out an Experienced
  Agent
• Increased risk of going out of business

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STEAMSHIP ASSOCIATION OF LOUISIANA (SALA)
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AUTOMATIC MANIFESTSYSTEM (AMS)

• Final Rule December 2003
• Effective in March 2004
• All Vessels, including Bulk Vessels, carrying
  Import Cargo must
• become AMS approved Carriers
• file their Inbound Manifest electronically 24
  hours prior to arrival.

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MANAGING THE CHANGE CURVE

Denial
Shock
Stage 2
Stage 1
Acceptance
Stage 4
Self-Esteem, Ability to Cope, Productivity
Resistance
Stage 3
Time
Time
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SHIP SPARES NOW MANIFESTED IN AMS

• Vessel/Ship spares that are unladed from one
  vessel intended for export, consumption, repair
  outside the US or transfer to another vessel must
  be manifested in accordance with 19 CFR 4.7a (c).
  The cargo declaration data must be transmitted
  electronically to CBP via Sea AMS as soon as the
  determination is made to unload the vessel/ship
  spare(s).
• The crux of the problem is CBPs differing
  requirements based on circumstances. Sometimes
  spares can be handled via a CF 3171, sometimes
  spares require an AMS entry (In Port Arthur
  even the cases for 3171 require two additional
  items, an additional US Crew List or receipt of
  Crew List, plus a 90 day Port Call List.)

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SECURITY RULES AND REGULATIONS BURNING UP AGENTS
TIME

• NOA
• CREW CONTROL SECURITY PLAN
• OFFSHORE SECURITY BOARDINGS

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Notice of Arrival (NOA)

• Final Rule became Effective April 1, 2003
• 33 CFR 160.212 specifies an NOA must be filed
• 96 hours prior to arrival (for voyages over 96
  hours) or
• 24 hours before entering the port of place of
  destination (for voyages less than 96 hour)
• NOA INFORMATION CATAGORIES
• Vessel Information
• Voyage Information
• Cargo Information
• Information for each Crewmember Onboard
• Information for each Person On board in Addition
  to Crew
• Operational condition of equipment required by
  164.35
• International Safety Management (ISM) Code Notice

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(No Transcript)
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NOA CHANGES

• 24 hours before entering a port of place of
  destination (for voyages between 96 and 24
  hours) OR
• 12 hours before entering a port or place of
  destination (for voyages less than 24 hours)
• A port or place of destination is defined in CFR
  160.204 as any port or place in which a vessel
  is anchored or moored
• An NOA must include EVERY facility or berth the
  vessel goes to AND any other place at which it
  will anchor or moor.
• The USCG uses this information as part of its
  Maritime Domain Awareness efforts. If a vessel
  has a new facility added or goes out to
  anchorage, clean tanks, or lighter, they are all
  places under the NOA regs.even though
  according to CBP, the vessel never left the
  port.
• Changes come into play more times then not
  particularly for you Chemical Tanker Operators
  changing facility rotations is constant and
  continuous.

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MOST COMMON ERRORS

• (See NVMC NEWS)
• Website http//www.nvmc.uscg.gov

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PENALTY FOR FAILURE TO FILE NOA

• Official Tariff Fine 32,500
• Plus time lost! - UP TO 96 HOURS
• Example

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THE RESPONSIBLE PARTY

• 33 CFR 160.212 States throughout
• The Owner, Agent, Master, Operator, or person
  in charge of the vessel.
• USCG NATIONAL VESSEL MOVEMENT CENTER (NVMC) -
  Notice of Arrival Instructions HINTS and TIPS
• If you are a shipping agent, you can have your
  clients fill out the spreadsheet on the ship and
  then have them send you a copy when they send it
  to NVMC.
• USCG HEARING OFFICE
• I noted (from your letter) that the vessel made
  an attempt to comply with the regulation and that
  due to an error by your company NOA was not
  forwarded to the correct office as required by 33
  CRR 160.210. However, it is ultimately the
  responsibility of the Master of the vessel for
  ensuring his vessel meets the security
  regulations prior to entering port.

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OTHER TIME KILLERS

• Security Plan
• Agent is either ordered to use a Security Company
  or Master permitted to perform the CCSP.
• No Standard submission / approval of Security
  Plan by USCG or CBP
• Security Plan requirements different at every
  port
• Gate List
• Facility Gate List needs to be resubmitted daily
  / edited for every shift change.
• Vendors do not know in advance who they are going
  to send.
• Some terminals require information 24 hrs prior
  to vessel arrival.
• All terminals have different Gate list rules,
  delivery rules, rules for cars on terminal or
  require use of terminal transportation.
• Sometimes we update Gate list 12 times in a
  three-day vessel call.
• In general, there are no standard rules for
  Security Plans or Gate Lists!!

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OFFSHORE SECURITY BOARDINGS (OSB)

• Adds additional time and frustrations.
• ISPS inspections or Sea Marshall usually mean
  mandatory OSB extra coordination / cost for
  Launch (cost for account of Owner/Charterer)
• Notices of OSB can come to us 4 Days or 4 Hours
  Out
• Causes changes with the Pilots
• Calls for SARS ABC Questions
• Must anchor 12 miles out. Requires 4 hr notice
  for pilot and call to USCG Fusion Center
• Inconsistency of ordering OSBs, and inability to
  explain to the Owner WHY now, after his vessels
  has been operating Coast Wise for a week, that
  his vessel is issued an OSB order.

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Challenge for USA AGENTS with the current
security environment

• The Costs are real, and for some, it probably
  already cost them their company.
• Three Major Tanker Agencies have gone out of
  business in the last four years
• All good Agents
• All have gone out of business since 9/11
• It is speculated that in the wake of the three
  companies going out of business, Tanker Operators
  were left to pay Millions of dollars of Port
  Expenses a second time.

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IMMIGRATION RULESThe Human Element

• Affects Seafarers the most!
• A special note of thanks to the Houston
  International Seafarers Center and many other
  World Ports Seafarers Centers.
• Ministry of Hospitality Call Home / Go Shopping
  / Relax at the Center
• The Chaplin takes a phone on board, they have a
  van for a trip to Store and to/from the Center.
• We can also thank the USCG for working with the
  Center and all the Houston Facilities to give the
  Seafarers Center the ability arrange their own
  unfettered access to and from the ships. The
  Center is the only entity that can put themselves
  on a gate list without going through the agent.
• Houston International Seafarers Center service to
  Seafarers is indispensable and a bargain for
  their 85 voluntary fee per port call.

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SOLUTION FOR THE AGENTS SURVIVAL IN THIS NEW
WORLD OF SECURITY

• TRAINING
• TRAINING
• And More TRAINING

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CONCLUSION

• My Challenge to the Owners Operators here today
• Take an interest in the recently published ASBAs
  Agents Criteria for Accounting Procedures,
  Insurance, Training and Testing Requirements, all
  geared towards Raising the Standards of ASBA
  Agents.
• Vet your Nominated Agent like your Customers vet
  your Vessels
• Expect continuous improvement in Agency services
• Reward your good agents with compensatory fees,
  these days, their service is PRICELESS