MAGNUS CARRIERS CORPORATION

6 Posidonos Ave, Kallithea, 176 74 GREECE

Telephone : 0030 210 94 67 400
Facsimile : 0030 210 94 08 984
Telex: 216241 MAGN GR
E-mail : magnus@softway.gr

To: All Masters (Tankers)

Next Port

July 27, 2005

Dear Captain;

Subject: LETTERS & FORMS OF OPERATION DEPT

Under a separate cover we are sending you a binder containing sample letters and forms which
are part of Magnus Carriers Corp. Management System. Also included in the binder is a diskette
containing these forms which you must use from now on without alterations, additions or
amendments except in some letters in order to give actual conditions of an event.

We take this opportunity to bring to your attention a few points which some of you fail because
you do not understand the importance and the form or letter you must fill and produce is
carelessly filled. We have draw your attention to this fact in several occasions and we recapitulate
them in this letter.

1- The principal characteristics and the description of basic equipment is in possession of the
Voyage or Time Charterers and the Charterers anticipated vessel to perform according to this
data.
If for some reason the vessel can not perform as described the cause must be given / reflected
in the proper form e.g the Voyage Performance Report or the Pumping and Pressure Log or
the Heating Log or other as appropriate, highlighting the points which are in favor of vessel’s
interest.

2- We have repeatedly asked you not to leave columns of any form blank and any required
information unanswered. What appears to you to be trivial and not important may prove very
vital information in case of a dispute or claim. Some information is valid only if it is recorded
at the right time.

3- The importance of proper sampling and sealing of containers has been over emphasized in
several occasions. You must all understand that quality and quantity of the cargo depends on
proper sampling which must always be witnessed by a ship’s officer. Sample containers should
be treated according to the contents i.e not exposed to sun, heat and must be kept in a properly
ventilated well marked store outside the accommodation house for at least six months unless
you are advised otherwise.

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4- The letter(s) of protest must be presented to the other party as soon as event or a condition for
which you are protesting is established or has come to your attention. In some cases it has no
value if it is presented with considerable delay because it registers a contemporaneous
evidence or records a condition which the other party could rectify if notified in time. In such
a case it is sufficient to note the time of receipt of your LOP. You must have evidence that your
LOP is received by the other party and in case of a refusal to sign for receipt note “REFUSED
TO SIGN” and send it by e-mail, fax, telex or courier.

5- As it is stipulated in para.1 of this letter your characters are fully aware of vessel’s
characteristics but is your duty to make some of them (the ones connected with the cargo
operation) known to the shippers or receivers. This can be done and registered in part.2 of your
Loading / Discharging Plan during the safety meeting. It is a good practice to add at the
bottom of your NOR following i.e :
Manifolds / Presentation flanges : 3 x 16’’ ANSI
Pumps : 3 x 1000 M3/Hour
or Pump / Pumps for each grade : 2 x 1000 M3/Hour
in case of multi grade cargo : 1 x 1000 M3/Hour

Of course it will be wise from your part to ask Agents to provide you with the necessary
terminal details, berthing side and gangway / accommodation ladder requirements. In this case
you will be well prepared when the ship arrives alongside and undue delays can be avoided.
You must always consult also the Guide to Port Entry.

6- Some of you are heedlessly filling the Pumping Pressure Log without reference to the actual
conditions and no relation between entries, thus we have seen same back pressure at pumps
and manifolds and some times higher pressure at manifolds than pumps. The usual pumping
clause requires 7.0 kgs/cm2 (100 psi) at the manifold or discharging of the full cargo in 24 hrs
except when COW is asked in which case some extra time is added according to the Charter
Party. It is important that entries in the Pressure Log, the C.C.Room Log and the discharge rate
book tally in order to win a dispute for overpumping. When the 7.0 kgs/cm2 (100 psi)
requirement can not or is marginally reached and the discharge is prolonged beyond the 24
hours you must prove that all pumps are in good working condition using all of them as
suction and discharge pressure permits and avoiding one pump “overtaking” the other
resulting to overheating. This is a common phenomenon when each pump is not discharging
directly to her respective manifold.

7- As you can see on the attached Index List of the Letters and Forms a number of them are
connected with cargo shortage / cargo loss and must be issued when there is:

a) An indication of short loading

b) Presence of water in the cargo
c) Alleged short delivery

And also the letters and forms for:

a) In transit variance. TCV comparison table which must be filled for your benefit to
locate errors or reason for an in transit loss or gain. In both cases if difference is more
than 0.15-0.20 per cent.
b) Line displacement check and calculation form.

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 Despite what most of you believe cargo claims for shortages are generated when there is a
difference between B/L and outturn quantity and the burden to prove that there was no loss
whilst the cargo was under carrier’s custody rests with the vessel. This is the reason why all
forms i.e ULLAGE REPORT, OBQ / ROB REPORT, TIME SHEETS etc must be properly
filled and Letters of Protest launched in time. After a discharge, a shortage claim may be
boiling for 365 days before it comes to the surface.

On the bottom of each page of many forms there are simple instructions which must be
followed. Make sure that you understood and you follow them. Forms and Letters must be
submitted properly signed.

8- Statements of Facts is the document on which demurrage calculations are based. Times
entered must be correct and agreed. Because SOF are issued also by the terminal, the Agents
and the Independent Inspector the times for all operations must be agreed. If you do not agree
for some times or for the remarks, clause it as follows:
“Do not agree for a)……… b) ………. And the remarks. Remarks as per ships S.O.F”.
Most probably the other parties will enter remarks in your S.O.F.
to avoid such situations always agree the times of each operation.

9- Parts 1,2 and 3 of the Loading and the Discharging Plan contain information and instructions
for operational, safety and pollution prevention matters and must be strictly observed.
Part 4 must be completed according to the guidelines of ship’s Loading, Stability and COW
manual (where applicable). Particular attention must be paid to the order of loading /
discharging and the simultaneous ballasting / deballasting because of free surface effect.

Following operational matters are brought to your attention although they are not within the scope
of this letter:

a) Never accept to load on your ship more grades than your vessel can safely segregate with two
valves (vessel’s natural segregation). Even when line contamination is accepted in writing by
charterers always seek owners advise and consent for such loading. When you are asked also
to commingle additives in your tanks or mix cargo on board you must ask the agreement of the
owners because in such cases a L.O.I must be issued.

b) If charterers in their voyage instructions have not specified the maximum acceptable Bill of
Lading / ship's figures difference never sign a Bill of Lading merely issuing a letter of protest
if such difference exceeds 0,3 per cent with V.E.F. applied. Seek the advise of the charterers
and the consent of the owners for your action. Before making any fuss ensure that your
calculations are correct.

c) No discharge should take place without presentation of a negotiable copy of the B/L or
confirmation from this office that an acceptable L.O.I. has been received from the charterers.

d) When cargo nomination stipulates minimum or maximum you must ensure that these limits are
not exceeded. In such case you must ask for a shore stop in writing. This does not mean that
you should not follow quantity from shipboard volumetric measurements.

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e) If upon completion of loading there is strong indication of unsettled free water (free water
detected in some tanks and traces up to 5-10 cm in other tanks) stipulate this fact in your letter
of protest and repeat free water measurements 24 or 48 hours after sailing . Report your
findings as necessary.

Wishing you smooth safe voyages

Ops Dept.
Capt D.Pantazopoulos