A guide for Ship Vetting & Marine Assurance, reduce marine & cargo risk and avoid vessel sanctions. By leveraging data, including OCIMF and Port State Control.
Ocean freight shipping remains the most popular method of transporting goods worldwide, with over 80% of the world’s trade carried by sea.
Oil tankers alone account for nearly 30% of global maritime trade, transporting crude oil and refined petroleum products, whilst chemical tankers handle approximately 10%, carrying liquid chemicals, vegetable oils and specialty chemicals.
Maritime transportation of oil and chemicals from A to B has always been logistically challenging but in recent times it has become even more fraught with uncertainty. This article explains how ship vetting services are essential to your organisation, providing peace of mind and helping you to navigate the sea of potential problems that might arise when selecting a vessel to transport your cargo.
If you want to protect your goods, safeguard your reputation and avoid unnecessary expenditure brought about by poor choice of vessel then ship vetting services are indispensable.
A Lesson from History: The Torrey Canyon Disaster
One of the earliest wake-up calls for vessel safety came in 1967 when the supertanker Torrey Canyon ran aground off the coast of Cornwall, spilling 100,000 tons of crude oil into the ocean. The disaster was exacerbated by the vessel’s poor maintenance, outdated navigation equipment, and lack of oversight. Had modern vetting protocols been in place at the time, this incident might have been avoided.
Vessel vetting emerged in the late 1960s as a proactive measure following catastrophic oil spills. Today, it plays a critical role in ensuring the safety, security, and quality of marine transportation. Two key organisations spearheading these efforts are:
A Costly Mistake: The Case of Erika
In 1999, the oil tanker Erika broke in two off the coast of France, releasing 20,000 tons of oil into the ocean. Investigations revealed that the ship had undergone substandard maintenance and should not have been allowed to sail. The disaster cost millions in clean-up efforts and lawsuits. For banks, insurers, and charterers, ship vetting ensures they are not unwittingly investing in potential disasters.
Ship vetting services function as a critical checkpoint in the pre-chartering phase. Before a vessel is contracted for a voyage or time charter, potential charterers or operators perform a vetting assessment to approve or reject the vessel based on its compliance with required standards.
Ship vetting fits into the broader value chain as follows:
Access to accurate ship inspection data is key to vetting. The following documentation is assessed as part of the process:
A positively vetted vessel increases confidence that cargo will be transported safely, on time, and without complications.
The Value of Crew Experience: The Prestige Incident
In 2002, the oil tanker Prestige developed a structural failure during a storm. The crew, lacking the necessary experience to manage the crisis, failed to contain the situation. The ship eventually sank, spilling thousands of tons of oil and causing an environmental catastrophe. A thorough vetting process, including an assessment of crew qualifications, could have flagged these risks before the vessel was chartered.
Any ship could be involved in a maritime disaster with devastating consequences: environmental damage, financial losses, human casualties, and reputational harm.
A prime example is the recent collision between oil tanker Stena Immaculate and container ship Solong in the North Sea. While such incidents are rare, how can you confidently say you've done everything within your power to choose the right vessel and minimise the chances of your involvement in a catastrophic accident?
In the Exxon Valdez oil spill disaster of 1989, two major contributing factors were identified as faulty equipment and the negligence and incompetence of the Captain and crew. The vessel vetting process scrutinizes vessel condition, ship maintenance, crew competence and safety compliance, reducing the likelihood of such disasters.
Sanctions from regulatory bodies (UK, EU and the US) can impact vessel choice; vessels, their owners, operators and managers are constantly being added to sanctions lists. What if your cargo is being transported via a vessel which has been sanctioned due to its involvement in transportation of oil from a sanctioned country, such as Iran or Venezuela? What happens if it is discovered that your vessel has been involved in dark activity such as STS transfer of oil which originated in a country that is subject to sanctions? How can you protect your reputation and avoid negative associations?
The vetting process checks for any associations with sanctioned entities or activities, protecting companies from legal repercussions and reputational harm. It also checks to see if your vessel has been involved in any unexplained dark activity (where its AIS was switched off) which could have negative consequences. The process facilitates your company’s ability to demonstrate due diligence and responsible care in your ensuing business activities.
Port State Control (PSC) inspections verify that the condition of a ship and its equipment comply with international regulatory standards and that the ship is manned and operated in compliance with these. What if the vessel you are using fails inspection and is detained whilst any deficiencies are rectified? How can you avoid the headaches and huge costs relating to this scenario?
The vetting process examines past PSC records, including any detentions, and maintenance history, it also considers crew training and competency assessments reducing the likelihood of unexpected detentions.
Ship vetting is not just a regulatory checkbox—it is a critical safeguard for businesses involved in maritime transportation. From avoiding financial losses due to detentions and sanctions to preventing environmental disasters, vetting ensures that only the safest and most compliant vessels are used.
Engaging in thorough ship vetting is essential for stakeholders aiming to secure their operations, reputation and the environment.
ShipVet Services is your trusted partner in ship vetting, we provide expert services to help you navigate these risks with confidence. Whether you are a charterer, trader, or financial institution, our expertise helps you ensure that your cargo is transported safely, legally, and efficiently.
✔ Protect your cargo from preventable risks
✔ Avoid legal and financial pitfalls linked to substandard vessels
✔ Safeguard your reputation by ensuring ethical and regulatory compliance
✔ Ensure smooth and efficient shipping operations
Don't leave your cargo’s fate to chance — vet your vessels today
In partnership with our clients, we are constantly evolving the vetting standards and data sources used to ensure we are vetting ships based on the highest quality and latest information, this article is for informational purposes only and does not fully reflect the indepth ShipVet range of services.
