The Vessel Requirements In The Vegetable Oils FOB Sale Contracts

The vegetable oils are assigned to the Pollution Category Y and should normally be carried only with the IMO Ship Type 2 chemical tankers. However, the IMO Ship Type 2 chemical tankers are not allowed to load more than 3,000 m³ of cargo into any single tank, irrespective of the cargo tanks` capacity.
In case of parcels larger than 3,000 m³ the FOB buyers can nominate either IMO Ship Type 3 chemical tankers or oil tankers certified to carry Noxious Liquid Substances in bulk.
The Regulation 4.1.3 of MARPOL Annex II introduced in 2007 stipulates that a ship certified to carry the vegetable oils identified by the letter "k" in the Chapter 17 of the IBC Code may be exempted by the Flag State Administration from the carriage requirements stated in the Regulation 11 of MARPOL Annex II (i.e. the IBC Code requirements regarding the design and construction of ships to be certified for the carriage of Noxious Liquid Substances in bulk identified in the Chapter 17 of the IBC Code) provided that:
- the ship is a NLS tanker¹ that meets all requirements of the IBC Code for Ship Type 3, except those for cargo tank location;
- the ship has wing tanks and her cargo tanks are located inboard, as in case of IMO Ship Type 2 configuration;
- the ship complies with the requirements regarding the double bottom tanks;
- the ship`s Certificate of Fitness indicates the exemption granted.
In case of the IMO Ship Type 3 chemical tankers, there is no restriction regarding the cargo quantity that may be loaded into a single cargo tank.
The nominated vessel must have on board a fully functional inert gas (nitrogen) generator system and/or portable gas bottles to supply an inert gas blanket sufficient to cover the surface area of cargo in each tank to be loaded and maintain the inert gas blanket at the required level throughout the voyage from the port of loading to the port of discharge to prevent the air oxidation of the vegetable oil cargo.
In the FOB sale contracts incorporating the FOSFA Contracts, the vessel must comply with the FOSFA Qualifications and Operational Procedures for Ships Engaged in the Carriage of Oils and Fats in Bulk for Edible and Oleo – Chemical Use in force at the date of the vessel nomination. For vegetable oil cargoes shipped from ports in the European Union, the vessel must also comply with the EU Commission Regulation No. 579/2014, which means that the vessel`s cargo tanks must be made either from stainless steel or mild steel lined with epoxy resin or technical equivalent.
In the FOB sale contracts incorporating the NIOP Trading Rules, the vessel must comply with the requirements stipulated in the NIOP Operational Procedures.
The vessel`s previous three cargoes must have been unleaded and non-toxic and must not appear on the FOSFA List of Banned Immediate Previous Cargoes. The vessel`s last prior cargo must appear on the FOSFA List of Acceptable Previous Cargoes or on NIOP-FOSFA Harmonized International List of Acceptable Previous Cargoes.
The vessel`s tanks calibration charts must be valid and certified by recognized agencies for such certification.
The vessel`s heating coils must be able to maintain the temperatures required in the IASC Heating Instructions for the vegetable oil to be shipped.
The vessel must have on board the following documents:
- a valid International Pollution Prevention Certificate for the Carriage of Noxious Liquid Substances in Bulk and/or a valid International Certificate of Fitness for the Carriage of Dangerous Chemicals in Bulk listing the vegetable oil in question as a permitted cargo; In case of Type 3 chemical tankers, the Certificate of Fitness must state the exemption granted by the ship`s Flag State Administration from the requirements stated in Regulation 11 of MARPOL Annex II for the carriage of vegetable oils identified by letter "k" in the Chapter 17 of the IBC Code.
- the Procedures and Arrangements Manual approved by the ship`s Flag State Administration;
- the Cargo Record Book;
- the Shipboard Marine Pollution Emergency Plan for Noxious Liquid Substances approved by the ship`s Flag State Administration;
- a valid International Ship Security Certificate;
- a valid Safety Management Certificate and a Document of Compliance with the ISM Code;
- a valid Maritime Labour Certificate.
If the vessel sails under a Flag of Convenience, the vessel must have on board a valid ITF Blue Card to evidence the fact that the minimum terms and conditions of employment of the crew of the vessel are approved by the ITF (International Transport Workers` Federation).
The shippers and port authorities require that the nominated vessels have an up-to-date Vessel Particulars Questionnaire in the SIRE and/or CDI databases and a copy of the SIRE or CDI inspection report uploaded in the SIRE/CDI systems.

by Vlad Cioarec, International Trade Consultant

This article has been published in Commoditylaw`s Biofuels Trade Review Edition No. 2.


Endnotes:

1. A NLS tanker is defined in Regulation 1 Paragraph 16.2 of MARPOL Annex II as a ship constructed or adapted to carry a cargo of Noxious Liquid Substances in bulk, including an "oil tanker" certified to carry a cargo or part cargo of Noxious Liquid Substances in bulk.