Case Study 01/2020 – Tanker Commercial Matters / SCAC Code not included in the Bill of lading

INCIDENT

• Vessel loaded cargo intended for USA, There was delay in getting the SCAC code for inserting in the B/L from the owners/charterers.
• Charterers advised the vessel to follow EDP procedure, so that the SCAC issue can be sorted out after departure from load port. Loading completed at 0712 Hrs.
• Terminal did not agree for EDP procedures and insisted Master to sign the B/L and depart.
• Charterers informed Master to NOT sign the B/L and to wait for their instructions.
• Loading Master and Port Authorities  insisted that the Master Sign the documents including the B/L without SCAC code.
• Master requested Loading Master and port authorities to wait for some more time as he was waiting for instructions from Charterers and Commercial Operators. Cargo documents onboard at 1200 Hrs.
• After waiting for some more time, Pilot and Port Authority reminded the Master to comply with the Port and terminal instructions and sign the documents and B/L.
• 1224 Hrs, Master signed the Bill of Lading (B/L) without SCAC code in contravention of Charterers instruction and sailed from the port.

CAUSES

• Perceived Pressure by Terminal – Master signed the B/L under pressure from terminal and Loading Master despite clear instructions from the Charterer and commercial operator to not sign the B/L without the SCAC code.
• Lack of Commercial Awareness – Master’s showed lack of commercial awareness regarding compliance with Charterers instruction and decided to sign the cargo document and depart the berth in contradiction to charterer order.
• Inadequate communication – Although master was communication with the vessel superintendent , commercial operator & Charterer to resolve the B/L issue, Master did not inform any of these parties of his intention to sign the document and depart berth.

CONSEQUENCES

• Non compliance with charterers voyage orders / Instructions in both the cases resulted in following.
• Off Hire of vessel and associated financial implications.
• Loss of Reputation  with the owners ,Charterers, Commercial Operators & Oil majors.
• Significant Inconvenience to Charterers and owners.

LESSON LEARNT AND DISCUSSION TOPICS

• It is an industry wide practice that Voyage orders from the Charterers clearly states that any order received from any other parties ( i.e agents, port, terminal, loading master, cargo surveyor etc.)must not be accepted without getting the concurrence from the Charterers and/or commercial operator.
• Prompt Communication from both sides vessel as well shore team is the key for the voyage to be completed with utmost dispatch. In case the replies to the queries are delayed, follow-up reminders and phone call may expedite things.
• Master shall not deviate from the voyage orders/charter party until a written confirmation is received for the charterers and/or commercial manager.
• All deck officers must read and shall have clear understanding of the voyage orders/charter party for the intended voyage.
• Cargo stowage, Cargo quantity, Cargo plans, Cargo handling and care, Vessel routing, Voyage Notifications,, Voyage speed, bunkers availability etc. shall be strictly as per the voyage order/charter party provided they do not conflict with safe running of the ship.
• Highlight the important points, clauses inserted in the voyage order for easy reference.
• In case of doubts on voyage orders, immediately inform all parties concerned via email as per the voyage mailing list
• Do not hesitate to send reminder in case vessel query remains unanswered. If necessary, follow up the email with a phone call.
• Do note stumble to the perceived pressure from outside parties