4.2. Port of refuge

Question 1

(a) Discuss the choice to be made when selecting a port of refuge

Answer 1

♣ Location: is it considered a safe port/ place of safety.
♣ Are there repair facilities available to affect the type
of repair required by the vessel.
♣ Is it possible to discharge cargo for forwarding or
storage with available facilities.
♣ Is it the nearest suitable port available in terms of
cost and convenience.
♣ If there is risk of pollution what areas would be at
risk. (special areas, tourist areas)
♣ Proximity to populated areas and the risk to them
from fire/ explosion/ pollution.
♣ Available facilities for victuals, fresh water, fuel,
communications and air freight.

Question 2

(b) Show an understanding of the legal and other implications of entering a port of refuge

Answer 2

Deviating to a Port of Refuge will affect the contracts of carriage, as well as hull and machinery, cargo and freight insurance policies unless it can be justified that the reason for deviation was valid.
Examples of reasons include but are not limited to:
♣ Weather, collision or grounding damage which will
affect seaworthiness.
♣ Dangerous cargo shifts.
♣ Serious machinery damage.
♣ Bunker requirements.
♣ Any other serious threat to cargo or the vessel.

For all of the parties involved with the ship owner and voyage (cargo owners, time charterers) there will be a common venture, and therefore the expenses incurred when entering a port of refuge will qualify as General Average Expenditure.

Question 3

(c) Describe the procedure for entering a port of refuge

Answer 3

1. As soon as it has been decided to enter a port of
   refuge, inform the owners for the reason for the
   deviation and the name of the intended port of refuge.
2. Owners will appoint a local agent and contact the P&I
   and Classification Society if deemed necessary.
3. Contact agent as soon as possible to give ETA, vessel
   details and reason for vessel coming to port. Request
   the agent contacts local port authorities if the vessel is
   damaged or unseaworthy or if there is a risk of
   pollution.
4. Ensure agent supplies vessel with required
   documentation to facilitate inward clearance, as well as
   customs requirements regarding cargo onboard.
5. Clear into port with Customs (under average),
   Immigration and Health Authorities.
6. Inform owners of safe arrival of vessel.
7. Note any protests as soon as possible, with a writ to
   extend at a place of convenience.
   (See Safeguarding of Cargo regarding Notes of
   Protest)

Question 4

(d) State the following when entering a port of refuge: - who should be informed, the manner of which costs/claims are met following a deviation.

Answer 4

Notify Hull & Machinery insurers in the case of damage, who will appoint a surveyor to attend the vessel and arrange repairs.

♣ If the cargo is damaged or needs to be discharged, request a ‘Hatch Survey’ before touching the cargo. Employ only registered and unbiased surveyors as recommended by your P&I Club. Notify cargo interests, who will in turn provide their own surveyors.
(N.B. – Cargo Surveyors are appointed by cargo interests and may criticise the Masters actions or allege that the vessel was unseaworthy. The P&I Representative will guide you as to whom is allowed onboard and what statements should be made as these may adversely affect owners’ interests.)

♣ If the voyage is being terminated and cargo owners are taking delivery of their consignments, General Average Bond and Guarantee Forms must first be signed. You may exercise owners lien on cargo if deemed necessary.

♣ Arrange cargo discharge under survey and either trans-shipment or warehousing of cargo during the repair period depending on duration of repairs and type of cargo.

♣ On receipt of Class Surveyors report regarding hull/ machinery damage, owners will advertise tenders for repairs. Notice of Claim and Tenders Clause should be considered, as well as underwriter’s power of veto. Tenders should only be accepted with guidance from surveyors and Lloyd’s or ILU Agents.

♣ Carry out repairs under Class and P&I Surveyors guidance.

♣ On completion, Class Surveyor will carry out another survey. If the vessel is considered seaworthy he will issue an interim Certificate of Class, or if the repairs are considered acceptable to the Classification Society then Class will not be affected.

♣ Reload cargo if the voyage is to be continued.

♣ Extend writ of protest to include all details of damage and repairs, and obtain copy for owners.

♣ Once GA and P&I Surveyors have seen all accounts, instruct agents to pay for repair. (If these accounts are not paid, repair firm may attach a maritime lien on the vessel).

♣ Send all appropriate documentation to owners.

♣ Obtain clearance certificate and continue voyage.

Question 5

(e) Discuss the roles of various surveyors attending on board the vessel and they know the rights and duties of each.

Answer 5

♣ Classification Surveyors – Ensure vessel is seaworthy as claimed by owners.

♣ P&I Surveyors – Guide vessel in damage/ pollution/ injury incidents and assist owners with representation for pollution incidents. Guide vessel Master in what statements should be made so as not to affect owners interests.

♣ Government Surveyors – Port State Inspections

♣ Chartering and Cargo Surveyors – Represent charterer and cargo interests.

♣ Insurance Surveyors – appointed by the underwriters in order to provide an impartial report of the nature, cause and extent of any damage and to recommend measures to minimise the loss to the underwriters.