The OnlineSTS team has issuedthe following warning about theissuing of
LOIs.Before conducting an STS operation, someservice providers issue letters of
indemnities(LOIs) to the Masters of the vessels andrequest that they should be
signed on behalf ofthe owner and prior to the commencement ofan STS operation.
Following several contacts, as well asdiscussions with P&I clubs, the
followingprocedure is recommended to be adopted bythe shipowners as a standard
policy.1) Masters/managers should avoid signing LOIs given by STS service
providers.2) If the STS service provider insists, then the P&I club should be
immediately informed and consulted. It is of utmost importance that the P&I
clubshould be made awareof the LOI,otherwise, the ownermay not be covered in
case of anincident.3)Masters/ managersshould only sign theLOI, incorporating
anysuggestions from theirP&I club.Managers should beable to provideevidence,
such as emailcommunication, withSTS service providers, supporting
theirrejection of signing the LOIs, according toStep 1 above, as this evidence
is highlyessential for the P&I clubs. Indeed, the signing of LOIs without
priorconsultation with their P&I club might resultin conflict with managers
coverage.Furthermore, in some LOIs, contractualduties with reference to the
third partyindemnity are included, which appear to beout of the scope of the
P&I coverage, asagreed with the shipowner.STS service providers may accept
partialliability on condition that the shipownerprovides evidence that the
incident occurreddue to gross negligence by the provider/POAC (person in
overall advisory control) etc.In this case the owner bears the burden
ofproof.It should be noted that P&I clubs understandthe commercial implications
and timeconstraints in STS operations and endeavourto support their clients
provided that they havebeen fully informed in advance, OnlineSTSconcluded.
==== fm tanker operator march 2012 ========
[Non-text portions of this message have been removed]
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