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Tanker Shipping & Trade
November 19, 2015
London
Fritz Heidenreich
Founder & President
Q88 LLC
Anticipating & Mitigating the Risk
of Failing Vetting Inspections
2
Leading Maritime Solutions Provider with 1,100+ Clients
• Maritime experts
• 190 years of industry knowledge
• 24/7 global support
• > 96% retention rate
About Us
Tanker Operators
Q88.com
Dry Bulk Operators
Q88Dry.com
Commercial Management
Q88VMS.com
Cargo Handling
Milbros.com
3
Events in Our Industry
4
Reducing Accidents
Up to 80%
of oil spills
are caused by
human error
El Faro
Hans Hedtoft (1959)
5
OPA
COFR
OCIMF
PSC
MARPOL
SOLAS
STCW BWM
CLC
CAP
CAS
CSR
EIAPP
ECA
IEEC
IAPPC
AISGMDSS
IOPPC
ISSC
LRIT
eNOA
ITOPF
MLC
SOPEP
COC
VGP
What Has Followed
TMSA
DHSIRE
Officer Matrix
CDI
6
Seaborne Oil Trade vs. Spills
Source: ITOPF
7
Vetting Requirements
8
Vetting Under the Hood
Vessel Acceptable?
9
Vetting Criteria
10
OPERATOR
Vetting in Detail
SIRE/CDI
PORT STATE
FLAG STATE
CLASS
CHANGE
OWNER
CAP
CASTMSA
AGE
HULL
P&I
OFFICER
MATRIX
CASUALTIES
TERMINAL
FEEDBACK
CERTIFICATES
CONDITIONS
OF CLASS
DRY DOCK
NEW BUILD
D&A
POLICY
CARGO
SPOT-COA-T/C
CLASS
SURVEY
DETENTIONS
HVPQ
Q88ITF BLUE
CARD
UKC
IGS
SMS
PIRACY
ENVIRONMENTAL
11
Port State Control Resources
Sources: cgmix.uscg.mil and parismou.org
12
Oil Company Age Restrictions
0
5
10
15
20
25
30
35
40
BP
LN
G
INE
OS
LN
G
CO
P
P66
Gas
AD
NO
C
Bore
alis
BP
LP
G
Ch
evro
n C
PP
-FO
B
Gazp
rom
INE
OS
LP
G
Lu
koil
OM
V G
as
Petr
onas
TO
TA
L
TU
RP
AS
Chevro
n C
PP
Repso
l
CE
PS
A >
30
k
CIT
GO
EN
OC
Fort
un
P66
PR
EE
M
SA
RA
S
Sta
toil
TO
TA
L >
30k
YA
RA
Ma
rath
on O
il
OM
V
TO
TA
L D
PP
13
Oil Company CAP Requirements
14
SIRE Stats & Costs
SIRE Stats:
• Inspections: 19,814
• Vessels: 8,124
• Inspections/Vessel: 2.44
• Report Downloads: 6.2
• Vessel Downloads: 15.2
Inspection Costs:
• Inspection: $5,000
• Vessel: $12,200 per year
• Industry: ~$100 million per year
Sources: OCIMF SIRE Factsheet 2014
$800
$60
Ship Owner OCIMF Member
15
SIRE Inspection Analysis
4
5
6
7
8
9
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Avera
ge #
Ob
serv
ati
on
s
Vessels Age
Average # Observations vs. Vessel Age
85% Correlation
16
Observations Pre/Post Dry Dock
0
1
2
3
4
5
6
Pre-Dry Dock Post-Dry Dock
5.90
4.58
Ave
rage
# O
bse
rvat
ion
s
22.3% reduction
17
Officer Matrix Compliance Analysis
88%
78%
72%
57%
43%
11%
1.8%
Overall
18
Compliance Analysis: Oil Majors88%
80%75%
72%
59% 58%
49%
36%
20
Excel is Not a Management System
• Excel reports are static & out of date
• Not auditing capabilities
• Searching is limited
• No version control
• Security concerns
• Prone to Errors
• Input > Output
• No alerting
21
Vetting Analytics
• Oil companies have been using them for years
• Spent millions
• Data on 10,000 tankers
• Ship owners need similar systems
• Cost of failing vetting inspection is great
• Lost cargo opportunities
• Longer ballast legs
• More waiting time
• Solutions exists to help manage this
22
Vetting Analytics
23
Vetting Analytics
24
Vetting Analytics
25
Conclusions
• Your vessel is only as good as its last inspection.
• Your vessel might be fine but not if your data is incorrect/missing.
• Throwing more money at maintaining the vessel does not
correlate to a more acceptable vessel.
• A proper management system and culture is one of the biggest
factors in having your vessels accepted for business.
Tanker Sh ipp ing & Trade Presen ta t ion
Questions?