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Sunday, October 21, 2018

VETTING CLAUSES – INTERTANKO’S SOLUTION

We are concerned that vetting clauses have not kept pace with the changes in vetting practice by the major charterers. The current culture is for vessel to be inspected and for many charterers to confirm that the vessel is either acceptable or not for the voyage contemplated.

Few charterers will approve a vessel on a term basis. Members have advised us that they are still being faced with traditional vetting clauses where they are required to warrant that their vessel is approved by a list of named charterers.

INTERTANKO’s Documentary Committee in conjunction with our Vetting Committee has prepared draft clauses which are balanced and reflect the realities of the current practice of vetting by charterers, the clauses are as follows:

Time Charter Vetting Clause

“1.(a) To the best of owners' knowledge, at the date of this charter there is a SIRE report on the Vessel which has been registered in the revised SIRE Register. The Vessel has not been rejected or refused by any charterer since the inspection leading to the said SIRE report.

(b) A Vessel Particulars Questionnaire ("VPQ") under the revised SIRE system has been lodged and is up to date at the date of this charter.

2. During the currency of this charter:

(a) Owners will (if so requested by the Charterers) cooperate in having the Vessel inspected by oil companies if any current SIRE report has to be renewed.

(b)(i) If the Vessel fails to obtain vetting approval as a result of any vetting inspection carried out under the revised SIRE system Owners will endeavour to have the Vessel inspected again as soon as is reasonably practicable.

(ii) Should the Charterers otherwise require vetting inspections of the Vessel and if these inspections are carried out during the currency of this charter, then any loss of time, deviation costs and inspection fees in connection with the inspection shall be for the Charterers' account.

(c) A failed vetting inspection under the revised SIRE system by the Charterers or any other company shall not constitute a reason for the Charterers to put the Vessel off-hire or enable the Charterers to assert a claim under this charter.

(d) The Vessel's VPQ will be maintained fully up to date by Owners whenever necessary during the charter.”

Voyage Charter Vetting Clause

“1.(a) To the best of owners' knowledge, at the date of this charter there is a SIRE report on the Vessel which has been registered in the revised SIRE Register. The Vessel has not been rejected or refused by any charterer since the inspection leading to the said SIRE report.

(b) A Vessel Particulars Questionnaire ("VPQ") under the revised SIRE system has been lodged and is up to date at the date of this charter.”

We would be interested to hear from members with their experiences concerning vetting clauses. Please send an e-mail to john.fawcett-ellis@intertanko.com