OCEAN PRINCESS

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Ship manager fined for using high sulphur oil

A New York-based ship manager has been sentenced to pay a $250,000 fine and serve probation after pleading guilty to using high sulphur fuel in the U.S. Caribbean Emissions Control Area (ECA). The sentencing closed the book on a multi-year investigation that has resulted in fines now topping $3 million and convictions for three of the ship’s senior officers who carried out and then tried to cover up the transfers. The Ionian Management Inc. commercially managed the 'Ocean Princess', which was found to have entered and operated within the Caribbean ECA using fuel that contained excessive sulfur on 26 separated occasions between January 2017 and July 2018. An investigation revealed that the fuel used by the M/T 'Ocean Princess' was a petroleum cargo that had been transferred to the fuel tanks under the authorization of Ionian M. Once authorized, the crew of the tanker transferred the higher sulfur fuel from the cargo tanks into the ship’s bunker fuel tanks, even though it exceeded the 0.10% sulfur limit. U.S. Coast Guard inspectors boarded the vessel for an inspection on July 10, 2018, at which point they discovered the vessel’s use of fuel with an excessive sulfur content. The chief officer and chief engineer were caught falsifying the ship’s oil record book by failing to record that cargo had been transferred to the bunker tanks. One also instructed the lower-ranking crew members to lie to the U.S. Coast Guard inspectors about source of the fuel. Ionian M was sentenced in St. Croix before U.S. District Court Judge Wilma A. Lewis after pleading guilty to a violation of the Act to Prevent Pollution from Ships. The company was sentenced to pay a fine of $250,000 and placed on probation for one year. The tanker was owned by the Lily Shipping Ltd. and operated by Ionian Shipping and Trading, both Greece-domiciled companies. The two companies previously pleaded guilty to felony violations related to the use of non-compliant fuel and falsification of records and were sentenced to pay a combined criminal fine of $3 million, serve a three-year period of probation, and implement an Environmental Compliance Plan. Three senior officers, including the master, chief officer and chief engineer, were convicted and sentenced to three years probation and ordered not to return to the U.S. The Chief Officer was also fined $3,000 for falsifying the ship’s oil record book.

Tanker permitted to sail weeks after grounding

After the owner of the "Ocean Princess" sent a letter of understanding to local authorities that they would pay compensation for the damage caused when the vessel ran aground on Dec 28, 2018. the tanker was permitted to leave the waters of East Nusa Tenggara. It had been refloated on Jan 10 and was anchored in the waters off Aemoli in Alor.

Tanker still waiting for sailing permit after grounding

After the "Ocean Princess", which had run aground in waters off Alor on Dec 28, 2018 was refloated by a tug on Jan 10 and anchored in the waters off Aemoli in Alor, the product tanker had yet to be issued a sailing permit and was not yet allowed to leave the waters of East Nusa Tenggara. Local authorities were waiting for the vessel's owner to send a letter of undertaking regarding the compensation for the damaged corals. The relevant agencies were still calculating the amount of corals damaged after the vessel ran aground in the Pantar Strait.