Examiner’s Report

Port Agency
May 2019

Overall Comments Guidelines

The overall standard for the Port Agency examination in May 2019 was reasonably high. Students answered the
questions on laytime, marketing, P and I insurance, operations, and cargoes and trade routes generally well. Although
concerns remain regarding the quality of maritime geography displayed particularly in the poor quality of map work
displayed in the exam.

Overall Comments

The questions were selected from within the port agency syllabus. And covered a number of topics including. NOR,
Laytime, P and I cover, cargoes and map work, operational questions, questions of core and added value services

Question 1

You are acting as the charterer’s nominated agent for a vessel which has arrived and anchored outside of
your port. The master has tendered Notice of Readiness at the time of anchoring. Charterers have
requested that you do not receive or accept the NOR as the port has been closed for 48 hours due to
a technical problem with the entrance lock.

Discuss your legal position and your actions.

This was a relatively new type of question focusing on the students understanding of the Notice of Readiness and the
often difficult commercial position which the ship’s agent is placed in during a charterer’s nominated agency
appointment. Most students understood the concept of the Notice of Readiness issue and answered this part of the
question well; some students overlooked the fact that the agent had been nominated by the charterer.

Question 2:

You are the owners’ agent for a vessel which has unfortunately run aground. Over USD 100,000 in port costs have
been incurred to remove the vessel from the shore with the aid of tugs and pilots, unfortunately the vessel has
sustained significant hull damage and requires local repairs to be seaworthy.

You have also received an initial quote for dry docking repairs of USD 800,000, to effect repairs to the vessels hull.
The class surveyor has advised that the repairs are vital and the vessel is unable to sail without the repairs.
Despite daily requests to the owners you have still not received any pre funding from them.

The local dry dock managers have contacted you and advised that unless you confirm that the vessel is to berth
in the dry dock later today, which will require an advance payment of the USD 800,000, the managers have
another client ready who will undertake a lengthy refit for their vessel. No other dry dock is available locally.

The owners have contacted you and demanded that you arrange the dry-dock with immediate effect or they
will hold you responsible for the delays to the vessel.

Discuss your actions.

The operational question was generally well handled; most students were able to focus on the importance of
financial control in the difficult position which was presented to them.

Some students offered credit terms to the ship-owner, which in the circumstances was not the most appropriate
action to take and were marked accordingly.

The students who achieved the highest marks took a firm line on financial control whilst offering a high quality
service level.

Question 3

Compile a detailed time sheet and calculate demurrage or despatch due from the information within the statement
of facts.

MV “Tutorship”

Arrived Load port Roads 1400 Hours Monday 10th March

NOR Tendered 1500 Hours Monday 10th March

Loading Commenced 0700 Hours Tuesday 11th March

Loading Completed 0900 Hours Wednesday 19th March

Vessel Sailed load port 2000 Hours Wednesday 19th March

Cargo Loaded 20,000 M/Tonnes Grain

C/P States:

“Laytime to commence at 1300 Hours if notice is given before Noon, at 0700 Hours next working
day if given after noon: Notice to be given in ordinary working hours”

“Cargo to be loaded at the rate of 5000 metric tonnes per weather working day of 24 consecutive
hours.”

“Time from 1700 Friday or the day preceding a holiday to 0800 Hours Monday or next working day
 “Time from 1700 Friday or the day preceding a holiday to 0800 Hours Monday or next working day not
to count unless used, but half of actual time used to count, unless vessel already on demurrage.”

he port loaded the vessel 24 hrs per day including Saturday and Sunday.

“Demurrage rate USD 5000 Per Day and Pro Rata/Despatch at half demurrage rate on laytime saved.”

On Tuesday 11th March rain stopped loading between 1400-2300 Hours.

On Wednesday 12th March rain stopped loading between 0900-1000 Hours.

Cargo operations ceased between 1400-1600 due to a technical problem with loading equipment.

On Thursday 13th March rain stopped loading between 1100-1600.

No local, national or international holidays occurred during this period of time.

The port working hours were 0001-2359 Mon-Sun.

The vessel was delayed in sailing due to tug boat unavailability.

Laytime

Although only a modest percentage of students achieved a correct mark in this question, the majority of students
were able to construct an understandable laytime statement and offered enough information to enable the
examiners to award marks, and also enable the examiner to understand where they had erred during the
question.

Question 4.

Define the core services which ships’ agents provide to their principals and what you consider to be
added value services which may be undertaken or sub contracted by the agent.

The question on core and added value services was very well answered by the majority of students who attempted
this question. The students were able to advise the basic services which the port agent offer and then provided a
number of good examples of relevant added value services.

Question 5.

Explain the differing requirements that a ship’s agent and a ship-owner will have for P&I cover.

The question on P and I insurance which has been a regular question in recent Port Agency examinations saw a
significant improvement this year.

The Majority of students were able to define the needs of both the ship-owner and the ships agent adequately.
Question 6.

You are the charterer’s nominated agent for a vessel carrying a cargo of timber. During the voyage the
deck cargo has caught fire and a portion of the deck cargo has required to be jettisoned in order to save
the remaining cargo on board. Consequently the ship-owner has declared general average.

Write a formal communication to the cargo receiver advising the developments, explaining what
general average means for them, and outlining what is required to release the cargo.

The question on General Average was impressively handled by students in this year’s exam. The students were
able to focus on the specific requirements of General Average to apply, and quote phrases such as “common
adventure” “voluntary sacrifice” and “maritime Peril”.

Students who scored strongly were also able to discuss the process of average bonds and guarantees required to
assist the end receiver to secure their cargo.

Impressive work by the students.

Question 7.

Choose ONE of the following commodities:

i. Crude Oil
ii. LNG
iii. Bauxite
a) Draw ONE suitable vessel with dimensions and tonnages for your chosen commodity.
b) Using the world map provided show appropriate load and discharge ports with sea transits for the
commodity.

The question on map work and trade routes was modestly handled by the students. Most students displayed a
good knowledge of load and discharge ports; however some overlooked the requirements to offer a range of
tonnages.

The quality of map work was generally very poor.

Question 8.

Discuss the range of services that a ship’s agent may be expected to provide to a cruise liner when in
port.

The students answered the question on the services provided to a cruise liner competently.

The majority of students were able to define the differentiated nature of support services required from a cruise
lines, as compared to a general cargo or tanker vessels.

Well handled by the students.