NOTICE OF READINESS

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USA Notices of Arrival/Departure:

The United States has instituted new rules for the submission of Notices of Arrival/Departure (NOA/D) for all
vessels arriving in the country as required by Code of federal regulations 33 CRF Part 160. The rule
lengthens the notification period to 96 hours prior to port entry, requires the submission of electronic reports
to the National Vessel Movement Center (NVMC) a central clearing house of the USCG, suspends
exemptions for vessels co-operating in compliance with the Automated Mutual Assistance Vessel Rescue
System (AMVER), for some vessels operating on the Great Lakes and vessels on scheduled routes. It
requires information about persons onboard these vessels
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this page was last time updated on: 28-Feb-2012

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Case Law

Leonis Steamship Company Ltd v Rank Ltd. [1908] 1 KB 499

E. L. Oldendorff & Co. GmbH v Tradax Export S.A. (The Johanna Oldendorff) [1974] AC 479

Voyage Charterparty

Notice Of Readiness

II. Legal readiness of the vessel

One may care to note that amongst conditions necessarily to be fulfilled before laytime starts, the first one – ‘arrived ship’ – concerns mainly geographical position of the vessel at the moment of her arrival to the port or at the berth. The second condition obliges the vessel to serve an accurate and valid NOR in accordance with provisions stipulated in the charterparty. Finally, the third obligation requires that ship must in fact be ready for cargo operations or to be cargoworthy. This third criteria comprises not only physical and technical ability (see also cargoworthines) to load or discharge nominated cargo but also vessel’s readiness in a sense of her eligibility. Eligibility or legal readiness of the vessel embraces her conformity with all local regulations at the port of call, such as OPA 90 or USCG Regulations for example. It also encompasses custom, health and immigration clearances whichever is applicable. Unless expressly required by the contract, if preliminaries, such as free pratique, have not actually been granted will not prevent the tendering of a valid notice, as long as there is no reason to suppose that there will be any delay.

Additionally to local regulations vessel must carry on board valid certificates confirming her compliance, for instance, with the International Safety Management (ISM) Code and as from 1st July 2004 also with the International Ship and Port Facility Security Code (ISPS). All modern tanker charters have relevant requirements to eligibility considering it as a part of seaworthiness either within printed clauses or in amendments. BPVoy4, for instance provides in Clause 6. NOTICE OF READINESS (NOR) that:

6.3.4 in the case of calls at US ports, a US Coast Guard Tanker Vessel Examination Letter (TVEL) has been issued, or in the case of calls at non-US ports where any similar certificate is required to be issued by a state authority at those ports prior to loading or discharging of cargo, such certificate has been issued.

Furthermore same charter form in its cl. 9 DOCUMENTATION bound owners ‘to undertake that for the duration of this Charter the Vessel shall have on board all such valid documentation as may… be required to enable the Vessel to enter, carry out all required operations at, and leave, … all ports to which the Vessel may be directed under the terms of this Charter…’ And finally, cl. 37.1 not only especially obliges the owners to carry on board a valid COFR and VRP approved by USCG as required under the OPA 1990 throughout all charter, it also makes the owners to guarantee that the master will operate the vessel in accordance with the Response Plan and vessel will comply with all applicable USCG Regulations .

ExxonMobil VOY2005 in Clause 2 (c) VESSEL. COMPLIANCE, provides that owner warrants that their vessel shall be in full compliance with all applicable international conventions, all applicable laws, regulations and requirements of the state of registry and also of the countries which she is going to call. Vessel shall have on board, during the subject period, all certificates, records or other documents required by the aforesaid conventions, laws, regulations and/or requirements.

Thus owners required to give warranties of great width, which now appears to be even more burdensome upon implementation of ISPS Code. At the moment wording of ISPS clauses consist of set of mutual warranties, where the owners are to comply with the ISPS Code and carry on board relevant documentation and the charterers are to provide the owners with full style contact details and bear expenses arising out of or related to security regulations. However, one can expect further alterations to charterparty terms to include a requirement that the ship trade only to ISPS compliant ports for example. In that case the charterers may find themselves not protected against accidents happened in the ports which are compliant on the paper but in fact have insufficient security standards, by reliance upon such compliance on paper. Their obligation is to order vessels to call a port or ports that are, in fact, prospectively safe, not merely one they have no reason to believe to be prospectively unsafe.

There are also many domestic regulations, such as electronic Notices of Arrival in USA or EC DIRECTIVE 2005/33, which will not usually prohibit tendering of NOR, but if not complied with will lead to penalties or fines.

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