Module1-1 of 2

DIPLOMA IN
MARINE SURVEYING
2011 / 2012
MODULE 1
The Maritime Industry and Marine

Survey Practice
AUTHOR
Captain Rodger MacDonald MA, FNI, MM

Secretary General of the
International Federation of
Shipmasters Associations, UK
Lloyd's and the Lloyd's crest are the registered trademarks of the society incorporated by the Lloyd's Act 1871 by the name of Lloyd's
CONTENTS
Page No
PART ONE
THE MARINE SURVEYORS CUSTOMER BASE
THE STRUCTURE OF THE MARITIME INDUSTRY
1.1
1.2
1.3
1.4
1.5
The Main Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

The Cargo Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
The Vessel Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
The Management of Ships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
The Charterers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
THE PURPOSE OF MARITIME TRANSPORT
2.1
2.2
2.3
2.4
2.5
Shipping Sophistication and Diversification . . . . . . . . . . . . . . . . . . . . . . . . . .16

Cargo and the Transfer of Risk and Title . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Cargo Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Seaworthiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Cargoworthiness and the Term Carefully to Carry . . . . . . . . . . . . . . . . . . .25
THE PURPOSE OF MARITIME STRATEGY AND SAFETY
3.1
3.2
3.3
3.4
3.5
The Role of the IMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Maritime Losses: Their Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Maritime Losses: Their Quantum and Cost . . . . . . . . . . . . . . . . . . . . . . . . . .30
International Strategy for Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
International Strategy for Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
OCCUPATIONAL HEALTH AND SAFETY
4.1
4.2
4.3
4.4
The Role of ILO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Shipboard Safety and Safety Committees . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Health, Fatigue and Quality of Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Shore-based Safety Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Diploma in Marine Surveying 2011 / 2012 (LP0058)
16
26
42
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Contents
Module 1
QUALITY AND AUDITS
47
5.1
5.2
5.3
5.4
Audits, Inspections and Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

Quality Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Undertaking Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
International Ship Managers Association (ISMA) Code . . . . . . . . . . . . . . . .54
INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE
6.1
6.2
6.3
The Origin and Objectives of the ISM Code . . . . . . . . . . . . . . . . . . . . . . . . .57

The Safety Management System (SMS) . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
The Implementation and Operation of the ISM Code . . . . . . . . . . . . . . . . . .60
PORT STATE CONTROL (PSC)
7.1
7.2
7.3
The PSC Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

The PSC Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
PSC and the ISM Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
RISK MANAGEMENT AND FORMAL SAFETY ASSESSMENT (FSA)
8.1
8.2
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

Formal Safety Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
63
PART TWO
MARINE SURVEYING PRACTICE
9
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
1-2
57
MARINE SURVEYORS, SURVEY ORGANISATIONS AND HOW TO

DEFINE THEM
75
87
88
Types of Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88

Surveyors as Policemen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
Surveyors as Fact Finders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Marine Surveyors as Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Marine Surveyors Acting in the Owners Interests . . . . . . . . . . . . . . . . . . . . .93
Surveyors as Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
The Marine Surveyor as an Expert Witness . . . . . . . . . . . . . . . . . . . . . . . . .94
The Traditional Source of Marine Surveyors . . . . . . . . . . . . . . . . . . . . . . . . .94
Module 1
9.9
Contents
9.10
Individuals and Companies Who are not Classification and

Government Surveyors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96
Defining a Marine Surveyor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
10
KNOW YOUR CUSTOMERS
10.1
10.2
10.3
10.4
10.5
Who Instructs Surveyors? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

How does Your Principal Know You? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Understand Your Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . .101
For Whom does the Surveyor Act? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
Surveys Without Prejudice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
11
TYPES OF SURVEY HULL AND MACHINERY
11.1
11.2
11.3
11.4
Hull and Machinery in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105

Classification Society Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Statutory Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
Condition Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
12
TYPES OF SURVEY CARGO-RELATED SURVEYS
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
12.10
Cargo-related Surveys in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

Is the Ship Cargoworthy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118
Preparation of Cargo Spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120
Surveying the Cargoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
General Cargoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Dry Bulk Cargo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
Supervisory/Overseeing Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130
Timber Deck Cargoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134
Bulk, Liquid Cargo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
Quantity Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
13
WARRANTY AND OTHER COMMERCIAL TYPES OF SURVEY
13.1
13.2
13.3
13.4
13.5
Warranty Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142

Performance Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Commercial Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Quality Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Conformity with Letter of Credit (Before Shipment) . . . . . . . . . . . . . . . . . . .146
100
105
118
142
1-3
Contents
Module 1
13.6
13.7
Conformity with Specification or Sample (After Shipment) . . . . . . . . . . . . .147

P&I Club Entry Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147
14
TYPES OF SURVEY WHEN THINGS GO WRONG
14.1
14.2
14.3
14.4
14.5
14.6
General Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149

Insurance Cargo Loss Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149
Damage and Repair Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Accident Investigation Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155
Third Party Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Investigation by Administrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
15
GOING ABOUT A SURVEY
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
Preparation and Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

Planning and Organising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
The Surveyor and the Health & Safety Legislation . . . . . . . . . . . . . . . . . . .160
Personal Safety Gear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161
The Marine Surveyors Tools of the Trade . . . . . . . . . . . . . . . . . . . . . . . . . .162
The Follow-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
Giving Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166
Consultancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
16
SETTING UP IN BUSINESS AS A MARINE SURVEYOR
16.1
16.2
16.3
First We Define What Type of Marine Surveyor This Applies to . . . . . . . . .168

The Essential Elements of a Marine Survey Company . . . . . . . . . . . . . . . .168
Management and Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174
RECOMMENDED READING
149
158
168
178
Useful Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
1-4
TUTOR-MARKED ASSIGNMENT
180
APPENDICES
182
Module 1
Contents
PLEASE NOTE
Self-Assessment Questions have been provided

periodically throughout this module. These questions are
designed to help you with your study. The questions are for
your personal study only; do not send in your answers to
these questions as they will not be assessed.
For candidates taking the Diploma option, your TutorMarked Assignment is at the rear of this module. Your
worked Assignment should be sent to the TMA
Administrator (details are given at the end of the TutorMarked Assignment) for processing.
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1-5
PART ONE
THE MARINE SURVEYORS
CUSTOMER BASE
GENERAL INTRODUCTION
This introductory module covers two important facets involving the work of the marine
surveyors. These are the maritime industry or the environment in which the survey will be
working and how surveyors should go about their work.
The module covers a lot of ground and is somewhat larger than the average module, so
do not feel daunted by its size. It does contain some essential details, particularly for those
intending to start off in this fascinating profession.
The first part of Module 1 introduces the environment in which todays marine surveyor
operates with reference to the rules and codes by which the industry works. We explore
the customer base of the marine surveyor and consider the problems of conflict between
different potential customers.
We also explore some marine incidents and show how these have helped to influence
international and national institutions in shaping the industry codes both for today and the
future.
1-6
1.
THE STRUCTURE OF THE MARITIME

INDUSTRY
LEARNING OUTCOMES
After successful completion of this chapter, you will:
name at least two different customers the survey or will

serve;
state the relationship between the various customers; and
describe the main types of charterparty.
1.1
THE MAIN COMPONENTS
1-001
This introduction looks at the main components of the shipping industry from the
perspective of those individuals, companies and organisations that may require
the services of a marine surveyor. They can be divided broadly into the following
four categories:
Firstly, there are those potential customers who have an interest in the
services provided by a vessel. These services may range from towage or
hydrographic services through the transportation of cargo to the carriage
of passengers. The principal focus in this module is on the vessel as a
means of transporting cargo.
Secondly, there is the vessel and its owner and/or manager. The owner/
managers interest ranges from the quality of a vessel as a potential investment, through its preparedness and ability to carry a particular cargo or
undertake a specific voyage, to its ability to comply with statutory regulations.
Thirdly, there is the insurer, either of the vessel or the cargo, who wishes
to match premium with risk and exposure.
Fourthly, there are the organisations that impose and monitor safety
standards, both governmental and non-governmental. These include
classification societies, national governments and international organisations
such as the International Maritime Organization (IMO) and the International
Labour Organization (ILO).
1.2
THE CARGO OWNERS
1-002
The marine surveyor should never forget that the shipping industry exists to provide a service to its customers. This service is encapsulated in the well-known
1-7
The Structure of the Maritime Industry
Module 1
phrase carefully to load, stow, carry and deliver the cargo within the masters
control. Arguably, the cargo owner is the most important element in the structure
of the maritime industry for without the cargo owner, the international trader,
there is no demand for shipping services.
1-003
The cargo owner can, and frequently does, change during the course of the
voyage. A marine surveyor will need to know whether he is providing a service
for the buyer or the seller, the shipper or the receiver, the consignee or even one
of a number of intermediaries who may have taken and resold title in the cargo
during the course of a given voyage.
1-004
Therefore, the marine surveyor needs an understanding of the way in which

cargoes are bought and sold and how maritime transport is contracted. The
interests of the cargo owner are discussed more fully in Chapter 2 of this module.
1.3
THE VESSEL OWNERS
1-005
The vessel, which is the vehicle used for the marine transportation of cargo or
the delivery of a range of other maritime services, can be provided by many
different organisations and for a number of different reasons. In the complex
interplay of influences that surround the multi-million dollar transactions that
characterise the maritime industry, it is important for the marine surveyor to be
clear about the rights and responsibilities of the different organisations and
individuals involved.
1-006
Vessels are owned and operated in many different ways across a spectrum of
three main types of organisation. At one end is the cargo owner who owns
and/or manages his own vessels. Oil companies are a prime example, although
the extent of their ownership of the means of transporting their cargoes is
diminishing. The central core of vessel provision is by the shipowner, who both
owns and manages his vessels. Management in this context means undertaking
the commercial as well as the technical operation and container operators
provide a good example of the modern shipowner. Thirdly, there are those
owners whose interest in shipowning is primarily as a financial investment and
who subcontract some or all of the operational functions.
1-007
Shipowners make their vessels available to the market through one of two broad
routes. One arises from what was traditionally known as the common carrier
where the shipowner operates owned and chartered vessels on a fixed and published schedule; a system frequently referred to as the liner trade. This sector of
the industry is now characterised by a complex network of scheduling and
freight rate agreements between shipowners and service providers (such as the
non-vessel owning container operator), pooling resources in freight conferences.
Frequently, the shipping companies services are extended beyond the ports to
provide a through transport service.
1-008
Operating in a more open market are the tramp owners who move their vessels
between commodities and trading areas with relative freedom. The freedom of
entry into these markets ensures that there is an amplifying effect on the normal
world trade cycles. Linked to this sector are the more specialised vessels. These
are designed, built and operated against a long-term charter or contract of
affreightment. Liquid natural gas carriers are a prime example of these vessels.
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Module 1
Here, the main method of engaging the services of a vessel is the charterparty,
voyage, time or even bareboat.
1-009
The surveyor may also become involved with the vast array of specialist
organisations that provide and operate service vessels, ranging from tugs, pilot
vessels and bunker barges through survey and seismic vessel to offshore
support and cable-laying vessels. All vessels have the same fundamental
requirement of needing to keep the water out while protecting the crew and
enabling their operational role to be carried out safely and economically.
Nevertheless, the function of the vessel can greatly affect the detail of the
operation and the structure of the vessel and the marine surveyor needs an
understanding of the ways in which different vessels operate.
1-010
A final sector which arguably provides more technological change than any
other is driven by a resurgence of the carriage of passengers at sea. This sector
covers cruiseships and ferries, and particularly high-speed ferries where formal
safety assessment (see Chapter 8) is leading a more risk-based approach to
regulation and thus to surveying.
1-011
Behind the vessel owner there will inevitably be the institutions which have
provided all or part of the funding for the purchase of the vessel. Banks and other
financing institutions are also potential customers for the marine surveyor. Their
interest in a vessel may be in the form of:
Equity, which tends to reflect ownership of the asset, is not a loan that
is repaid by instalment but the return on investment depends upon
the profitable trading or sale of the vessel. Shareholders providing the
equity may be arms length investors, with little or no knowledge of the
shipping industry, or owners reinvesting in their own fleet.
Debt is a loan that must be paid back against a fixed schedule. A lender
will generally secure its exposure through a mortgage on the vessel, as
well as an assignment of earnings and insurance. The prime lender will
secure its debt through a first preferred mortgage a security that is only
superseded by a maritime lien. Other lenders might provide finance, at a
higher risk and rate of interest but against a lower level of security this is
sometimes referred to as mezzanine finance.
A Mortgage is, for a lending bank, the most important evidence of its
interest in a vessel and of the way in which the vessel provides security
since:
1-012
it gives the lender in rem rights against the mortgaged vessel (ie
rights against the vessel itself and not just against the owner);
it gives security (ie priority) against unsecured creditors;
it enables the lender (the mortgagee) to take possession of the
vessel in the event of a default by the owner (the mortgagor); and
it allows the mortgagor to sell the vessel to raise funds to satisfy
his debt.
Loan agreements may give the lender the right to appoint surveyors to inspect
a vessel in order to ensure that it is being properly managed and maintained. In
certain circumstances it will be important for the marine surveyor to know who
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Module 1
has a beneficial interest in a vessel and to be aware of potentially conflicting

interests. Mortgages, for example, may be ranked, with a first preferred mortgage taking preference over second mortgages or unsecured mortgages.
Mortgages may, in turn, be superseded by maritime liens (especially when the
lien secures the crews wages). Evidence of secured mortgages at least can be
found by requesting a transcript of register from the flag state.
1.4
THE MANAGEMENT OF SHIPS
1-013
There has been a trend over the past three decades for the beneficial owners of
a vessel to sub-contract part or all of its management and operation. This divergence of responsibility has played a central role in the implementation of the
International Safety Management (ISM) Code. This is discussed in Chapter 6 of
this module.
1-014
There are many reasons for the growth of management companies. The
globalisation of trade and finance and economic pressure to reduce vessel
operating costs frequently finds its expression in an unremitting search for lower
manning costs. A direct effect of this has been that established corporate or company values have been replaced by contractual relationships having varying
degrees of effectiveness. A major effect of this trend is to make the ships master
the servant of many different masters. It is important for the surveyor to know
where responsibility, and authority, for different aspects of a vessels operation lies.
1-015
The Baltic and International Maritime Council (BIMCO) Standard Management

Agreement (Shipman) is one of the most commonly used contracts for engaging ship managers. Under Shipman the vessels overall operation is divided into
nine functions. These are:
Crewing
Undertaken by either manager or owner and from their own resources or
under the auspices of a crew manager. Indeed, more than one crew manager
may be involved and it is common for the master and senior management
team to be direct employees whilst the remainder of the crew are hired
through sub-contractors. Amongst other things, a surveyor will want to
know how familiar the crew is with the vessel and its operation, how
well the crew can communicate with each other as well as their level of
competence.
Technical Management
This includes:
1-10
supervision of the maintenance, repair and general efficiency of the

vessel,
the provision of stores and spares,
ensuring that all the vessels international trading certificates are in
order and that the vessel meets international and national safety
standards.
Module 1
Insurance
Frequently surveys are for insurance damage and it is important to know
who it is that is insured and also who is co-insured or named on the policy.
This applies to both loss or damage risk insurance (hull and machinery)
and liability insurance (protection & indemnity).
Freight Management
Important aspects of freight management, which may involve the marine
surveyor, are:
on and off-hire surveys,

hold and/or tank surveys connected to delivering notice of readiness (to commence cargo operations), and
despatch and demurrage calculations.
Accounting
An important consideration in so far as the surveyor needs to know who is
engaging his or her services and where to send the resultant invoice.
Chartering
Charterparties, one of the principal methods of making a vessel available
for employment, are discussed later in this module. Although closely allied
to freight management, the chartering function may be undertaken by a
separate organisation with the owner frequently keeping close control of
this activity. Poor co-ordination or co-operation between fixture (chartering)
and post-fixture (freight management and vessel operation) can give rise
to disputes and require the services of a surveyor.
Vessel Sales and Purchase

An activity where the classification surveyor has a pivotal role and where
marine surveyors may be used to assess the condition of a vessel at the
commencement of negotiations, both for buyer and for financing bank.
Provisions and Bunkering

Bunkering often becomes a difficult area of dispute particularly where
bunkering barges are used. The transfer of liquid from one tank to another
creates an opportunity for measurement variations and the sounding of
tanks is an imperfect method of measurement. Quality can be hard to confirm in the time available for bunkering and surveyors may well become
involved in resolving disputes of this nature.
Operation
This includes the issue of voyage instructions and the arrangements for
surveying cargoes, undertaking draught surveys etc.
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Module 1
1.5
THE CHARTERERS
1-016
Apart from the obvious need for on and off-hire surveys, the relevance of the
charter status of a vessel lies, to a large extent, in determining who has the right
to instruct the vessel with regard to operational matters.
1.5.1
Bareboat Charters
1-017
Here the beneficial owner passes his operational rights and responsibilities on
to the charterer although he may retain some or all of the responsibilities for
insuring the vessel and the right to inspect the vessel from time to time in order
to ensure that the charterers husbandry (ie care of the vessel) is in accordance
with the terms of the charter.
1.5.2
Time Charters
1-018
A time charter has two important features:
1-019
It is a contract for the whole use of a vessel, not just the hire of hold or tank
capacity within the vessel; and
It passes to the charterer the right, and indeed duty, to give instructions to
the master with regard to the employment of the vessel.
Both features give rise to a number of specific survey requirements which will be
explored more fully later in this and other modules. The most important are:
On-hire survey which, as well as establishing that the vessel complies with
its charter description, is a comparative survey. Part of its purpose is to
establish a benchmark against which the condition of the vessel, and the
time charterers care of the vessel, can be measured (fair wear and tear
excepted) at some (possibly considerable) later date. The on-hire survey
also raises the question of seaworthiness that will be discussed in more
detail in Section 2.4;
Off-hire survey where the surveyor must depend to a very great extent on
the previous work of a fellow surveyor. It is an area where much may be
learnt about the preparation of effective survey reports;
Speed and consumption claims are a perennial source of dispute between

owner and charterer and, if involving a surveyor, can involve him in some
interesting detective work.
1-020
The master of a time-chartered vessel will want to be very sure about who has
appointed a surveyor. Since the time-chartered vessel may be fixed on a voyage
charter, and then sub-chartered again, the master becomes the servant of many
interests: owner, time charterer, voyage charterer, shipper and receiver (see
Figure 1). He has both to serve and protect all their interests. He will undoubtedly
want to know whose interests a surveyor is representing and a competent surveyor should also always be aware how his or her activities fit into the complex
matrix of international trade, an exciting and challenging global business.
1-12
Module 1
1-021
This leads one to an important ethical consideration for the professional

surveyor. On the one hand, a surveyors task is to make a factual report about
the subject matter under consideration. On the other hand he has been retained
by a principal who has a specific interest in, for example, a vessel or its cargo
and may look to the surveyors report to enable him to achieve a particular (legal
or commercial) outcome. Balancing these two potentially conflicting forces can
be a challenge and is the hallmark of a truly professional surveyor.
1.5.3
Voyage Charter
1-022
Under a voyage charter, the charterers rights and responsibilities are very different and so is the masters role. The charterer, or cargo owner, is in effect
requiring the master to:
1-023
load a nominated cargo or several parcels of cargo in the nominated

port(s) or berth(s) between specified dates;
take responsibility for it by signing a set of bills of lading;
transport the cargo or parcels of cargo safely;
deliver the same quality and quantity of cargo to the named destination(s);
take responsibility that it is delivered to the right consignee/receiver (even

if the charterer has not arranged for receivers to be able to present an original bill of lading).
In contracting the vessel to undertake this assignment the charterer is not

issuing the master with detailed instructions but relying on his professional
competence to prosecute the voyage expeditiously and with due despatch.
This scenario obviously throws up a number of areas in which the surveyors
professional services may be required. Some of the main areas are:
1.
Arrival and Notice of Readiness (NOR)

While voyage charters do not specify speeds or consumptions (this being
the masters area of responsibility), the vessel is expected to present itself,
ready for loading, at the specified place between specified dates.
Before the cancelling date (the cut-off date after which the charterer may
decline to accept the vessel for the contracted voyage or series of
voyages), is a specified period of time the laydays during which the
charterer is bound to accept the vessel. The masters ability to arrive at the
specified position (be it within the port limits or alongside a particular
berth), and tender a valid NOR, depends upon, amongst other things:
the availability of a berth or anchorage;
presenting a seaworthy vessel; and
presenting a cargoworthy vessel, especially with regard to the condition of the holds or tanks. Disputes often arise over the readiness
1-13
Module 1
of the cargo spaces for the intended cargo, especially if the shippers
cargo is not yet in the port and ready for loading.
2.
Safe Port / Safe Berth

The question of what is a safe port may also be raised, as the charterer
has an obligation to ensure that the port towards which a vessel is directed
is safe for that vessel, on that voyage, at that time of year or, as was stated
in the case of the Eastern City [1958]:
A port will not be safe unless, in the relevant period of time, the particular
ship can reach it, use it and return from it without, in the absence of some
abnormal occurrence, being exposed to danger which cannot be avoided
by good navigation and seamanship.
It is interesting to note how often wise judges return to the benchmark of
good navigation and seamanship and it is not a bad touchstone for
marine surveyors either. In assessing whether a port is unsafe, three factors should be considered:
Is the port physically safe?

For example, is there sufficient water depth, what are the anticipated weather conditions, has war broken out?
Is the basic set-up of the port safe?

For example, are the aids to navigation, tugs etc of a satisfactory
nature for the vessel in question?
Can the event or occurrence that appears to make the port (or
berth) unsafe be described as abnormal or could it reasonably be
foreseen?
The issue is complex and, if involved, the surveyor should ensure that he
or she receives very clear instructions as to the issues in question.
3.
Loading/Discharging and Demurrage/Despatch

Time is a most valuable commodity in shipping, both for the shipowner and
the cargo owner. If it is wasted by, for example, delays to the vessel or
unavailability of berth or cargo, then it is necessary to determine who
should bear the financial penalty for the delay or reap the benefit arising
out of the saving of time. Surveyors are frequently involved in determining
the details to support claims of delay or detention.
Laydays (or laytime) are the time allowed for loading and/or discharging
the vessel and may be calculated in one of two basic ways: either by stating a specific time or by stating a loading (or discharging) rate against a
given tonnage. They may be combined for load and discharge ports
(reversible) or separate. Laytime has a start time and date for each port
and a date after which, if the vessel has not arrived and presented valid
1-14
Module 1
notice of readiness, the charterer may cancel the charter. This may well
happen at times of falling charter rates.
Conversely, a financial penalty can be imposed upon the charterer for
exceeding the agreed laytime. This is called demurrage.
Demurrage disputes are common occurrences, especially in difficult
freight markets, and can be particularly difficult to resolve since they are
frequently not addressed until after the voyage is complete, ie after the
cargo is discharged. Despatch, a bonus to the charterer for completion
within less than the allotted period, causes less of a problem since it is
more easily deducted from the freight payment. The whole area of proper
arrival and tendering of notice of readiness and the calculation of demurrage
requires:
a good understanding of the relevant documentation, particularly

the wording of the charterparty for that voyage;
the ability to arrive at an accurate reconstruction of events from

diverse information; and
the ability to draw accurate information from people with conflicting

interests.
These are all prime qualities of the good marine surveyor.

1-024
Pooling arrangements and contracts of affreightment are used either to increase

market presence and negotiating power, or to enable owners or charterers to bid
for major movements of freight. Many owners will commit their vessels to a pool
of similar vessels run by one of the owners, or by a third party. One aspect of
this arrangement is that it provides yet another organisation that will be relying
upon the master to carry out its requirements and which he must balance
against other demands on his time and resources.
1-025
This potentially complex matrix of contracts and charterparties, with its conflicting
interests, is a good illustration of the need for a surveyor to do his or her homework before commencing whatever survey work may be required.
SELF-ASSESSMENT QUESTION
Assume that you have been asked by a bank to advise on a
strategy for investing in shipping. Describe the various different
ship investment and ship operating structures that you might
recommend and explain how the bank might protect its
investment.
1-15
2.
THE PURPOSE OF MARITIME TRANSPORT
LEARNING OUTCOMES
After successful completion of this chapter, you will be able to:
state the different terms of trade;
describe the more common elements of cargo documentation;

and
describe what is meant by seaworthiness and cargoworthiness.
2.1
SHIPPING SOPHISTICATION AND DIVERSIFICATION
1-026
The changes to the ownership and operational structure of the shipping industry
discussed in Chapter 1 have been matched by a change in the diversity and
complexity of the cargoes which these vessels are called on to transport. This,
in turn, has affected the sophistication and diversification of vessel design.
1-027
While the ubiquitous container may have disguised the wide variety of cargoes
carried in the liner trades, its contents and those of a large sector of the liquid
bulk trades require ever more precise containment and carriage. One reason
for this is the unprecedented ability of an increasing range of cargoes to cause
serious damage to the marine environment and/or to those who come into
contact with them.
1-028
The globalisation of the worlds economy has also had its effect on ship
specialisation, whether it be the pure car carrier, multi-parcel, multi-coated
chemical tanker, roll-on roll-off freight ferry, high-speed passenger ferry or,
indeed, the recent generation of cruise vessels.
1-029
This, too, has affected the training requirements of the officers who manage
and operate these vessels. No longer is a general maritime knowledge, with
dry cargo or tanker experience, sufficient and this is reflected in the 1995
Amendments to the 1978 Standards of Training, Certification and Watchkeeping
Convention (STCW 95). Increasingly, specialised vessels carrying specialised
cargoes are requiring officers with specialised skills.
1-030
This is reflected in the certificate endorsements and training requirements set

out in STCW 95.
1-031
Just as this specialisation and requirement for specialised knowledge or training

affects the crews on board, so too does it have implications for the marine
surveyor.
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Module 1
The Purpose of Maritime Transport
2.2
CARGO AND THE TRANSFER OF RISK AND TITLE
1-032
As stated at the beginning of Chapter 1, the purpose of merchant shipping is to

provide a service and by far the greatest user of the services of the industry is
the cargo owner. Some of the aspects introduced in this section are developed
further in Chapters 10 to 13 of Module 5.
1-033
The cargo owner may change a number of times during the course of a voyage
and, with containerisation leading the continual increase of through transport, the
voyage may extend well beyond the vessel and the ports. A cargo owners interest
in the cargo may also change during the voyage as the risk in the cargo (the
responsibility for insuring the cargo or bearing the cost of its loss or damage) will
frequently pass at a different time from the title, or ownership, of the cargo. As
well as the cargo owner and the insurer, there is likely to be a financing bank with
its own interests to protect.
1-034
The first stage in the ultimate movement of a cargo by sea is the negotiation of
a sales contract that will establish the terms of trade. This will involve a buyer
and a seller, and the seller may be a trader planning to sell on the cargo.
1-035
A range of influences, including the relative negotiating strengths of the buyer and
seller, and, indeed, their negotiating skills, will affect the terms under which the sale
is contracted. The most commonly used terms of trade have been codified by the
International Chamber of Commerce and are known as Incoterms 1990.
1-036
There are 13 different terms of trade, falling into four groups, and they address
the following 10 considerations that must be undertaken by either buyer or seller
in order to execute a successful transaction:
1a.
Provision of the goods in conformity with the contract (seller).
1b.
Payment of the price (buyer).
2.
Provision of necessary licences, authorisations and other formalities.
3.
Contract of carriage (and insurance).
4.
Giving (or taking) delivery (title).
5.
Moment of transfer of risk.
6.
Division of costs.
7.
Notices.
8.
Proof of delivery and presentation of transport documentation.
9a.
Marking, checking and packing (seller).
9b.
Inspection (buyer).
10.
Other miscellaneous obligations.
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1-037
Module 1
Item 3 above will decide whether it is the buyer or the seller who arranges the
sea transport and this will be defined by the selection of the appropriate
Incoterm.
Item 9 has obvious import for the marine surveyor. The marine surveyor, especially if involved in cargo or hold/tank survey work, should be familiar with the 13
Incoterms summarised below:
Group B: Departure
EXW
Ex Works
(named place)
Group F: Main Carriage Unpaid

F signifies that the seller must hand over the goods to the nominated carrier free
of risk and expense to the buyer:
FCA
FAS
Free Carrier
Free Alongside Ship
FOB
Free On Board
(named place)
(named port of
shipment)
(named port of
shipment)
Group C: Main Carriage Paid

C signifies that the seller must bear certain costs even after the critical point for
the division of risk for loss or damage has been reached.
CFR
Cost & Freight (C & F)
CIF
Cost, Insurance and Freight
CPT
Carriage Paid to
CIP
Carriage and Insurance Paid to
(named port of
destination)
(named port of
destination)
(named port of
destination)
(named port of
destination)
Group D: Arrival
D signifies that it is the sellers responsibility that the goods arrive at the stated
destination.
1-18
DAF
DES
Deliver at Frontier
Delivery ex Ship
DEQ
Delivery ex Quay (Duty Paid)
DDU
Delivery Duty Unpaid
DDP
Delivery Duty Paid
(named place)
(named port of
destination)
(named port of
destination)
(named port of
destination)
(named port of
destination)
Module 1
1-038
Closely linked to virtually all commodity transactions are insurance (this subject
will be discussed in Module 5) and finance. By far the greatest majority of trade
finance is provided by a process known as a documentary credit. The process
of establishing a documentary credit is relatively straightforward and has the
advantage to the seller of providing a confirmed method of payment.
The buyer and seller conclude a sales contract providing for payment by
documentary credit.
The buyer instructs his bank (the issuing bank) to issue a credit in favour
of the seller (the beneficiary).
The issuing bank asks another bank, usually in the country of the seller, to
advise and perhaps also add its confirmation to the documentary credit.
The advising or confirming bank informs the seller that the credit has been
issued.
1-039
For settlement, the seller sends the documents evidencing the shipment to the
nominated bank where the credit is available. After checking the documents, the
bank then pays the seller and passes the documents on to the issuing bank to
ensure that its payment to the seller is reimbursed. Finally, the issuing bank uses
the documents to secure its reimbursement from the buyer.
1-040
From this brief description, it is clear why this method of finance is called a
documentary credit and a central document is the bill of lading, possibly supported
by a survey report on the cargo. This goes a long way to explain why banks will
generally only accept clean bills of lading, that is, bills of lading that normally stipulate that the goods were in apparent good order and condition when accepted.
1-041
Thus, dry cargo (Specialist Module A) and liquid cargo (Specialist Module B)
surveys play a key role in trading and financing of cargoes.
2.3
CARGO DOCUMENTATION
1-042
A wide range of documents can be involved in the international trading and

transportation of cargoes. Since the marine surveyors task is frequently to distil
the facts from a complex, contractual dispute, an understanding of the principal
documentation is essential.
1-043
Figure 1 provides a simplified illustration of a cargo transaction and voyage

charter. As stated, especially if time charters are involved or if vessels are subchartered, carrying parcels of cargo for different interests, or the cargo is traded
during the voyage, the situation becomes much more complex. A diagrammatic
approach to depicting the contractual relationships is often a useful first step in
analysing a situation.
2.3.1
Sales Contract
1-044
The transaction which leads to the transportation of goods by sea is initiated by

a sales contract. Although this is rarely, if ever, seen by the master or even the
1-19
Module 1
shipowner or his chartering department, it contains the basic data against which
the (voyage) charterparty is constructed.
1-045
Sales contracts may be complex and detailed, documents relating to specific

cargoes sold on specific terms (for example, the Grain and Feed Trade
Association (GAFTA) provides a range of standard sales contracts) or much
more abbreviated telex or electronic data transmissions which are common in
the oil industry. The sales contract should provide the basic information about:
the origin and place of loading of the cargo together with the dates on
which it will be ready for loading. This can be of critical importance as there
may be a contractual requirement to ship a certain quantity within a specified period or the sales price may be decided by an (end of month) index
relating to the month in which the cargo was loaded and bills of lading
issued;
the quality and quantity of cargo and possibly the agreed method of testing
for quality;
the terms of trade and documentation requirements;
details of insurance requirements.
2.3.2
Certificate of Origin
1-046
With complex, international trade agreements and export/import quotas, not to

mention trade sanctions, this is an important document. It should not affect the
vessel directly but unfortunately it has been known for the contravention of
export or import regulations to result in the detention of, or a fine on, the vessel
rather than the errant charterer.
2.3.3
Certificate of Inspection/Quantity/Quality
1-047
The key point to understand here is that the buyer may have survey reports
reflecting a quantity and/or quality which is different from that pertaining at the
point of loading when the vessels responsibility commences.
2.3.4
Commercial Invoice
1-048
This will establish the value of the cargo which will be important in any dispute
about, for example, short delivery. The invoice value may, however, be substantially different from the commodities open market value.
2.3.5
Cargo/Customs Manifests
1-049
This is the document that contains the complete specifications of the cargo with
the intended destination that has been loaded by a vessel. This is a useful
source of information, especially if many parcels of cargo (or containers) are
being carried.
1-20
Module 1
2.3.6
Certificate of Insurance
1-050
This has been introduced to substitute the original floating policies for individual
shipments which are normally held by the bank or consignee. The certificate of
insurance will show proof that the responsibility for insuring the cargo has been
established under the terms of trade.
SELF-ASSESSMENT QUESTIONS
A cargo of television sets being shipped in a container under CIF
terms is damaged when being handled in the yard of the
destination terminal. Is this a problem for the buyer or seller? Or
perhaps both parties?
1-21
Module 1
Figure 1
Cargo Transaction and Voyage Charter
1-22
Module 1
2.3.7
Bill of Lading
1-051
The traditional route of tally sheets being used to prepare a mates receipt with
the mates receipts being exchanged for the bill(s) of lading is a logical and wellestablished practice, if not one which is always followed. Nevertheless, evidence
from original sources such as a tally sheet can be compelling evidence in a
court of law or arbitration and every effort should at all times be made to trace
source documents.
1-052
The three basic functions of a bill of lading are:
1-053
1-054
as evidence of the terms of a contract of affreightment;
as evidence of shipment of the goods;
as a document of title.
There are a number of different bills of lading (and seaway bills where, basically,
the function as a document of title does not exist) which meet the requirements
of different trades, and a good reference document for definitions is UCP 500
(Uniform Customs and Practice). It is important to know whether the bill of lading
which the master is to sign and against which he will later deliver the cargo is:
an open bill whereby the cargo is deliverable to the bearer of the bill of
lading without formal need for identification;
a straight bill where only the named consignee may take delivery of the
cargo; or
a negotiable bill where the goods are deliverable to a consignee whereby

it can be endorsed to a third party if they buy the cargo.
The other main division is between:
a marine or ocean bill of lading, sometimes referred to as a port to port bill,

and used extensively in the liner trades (in which case, it is the basic
contract of carriage); and
a charterparty bill of lading which specifies that it is subject to a charterparty (which, in this case, is the contract of carriage).
1-055
The inter-relationship between bill of lading and charterparty is a complex issue

which has given rise to much litigation. The starting point for determining this
relationship is the incorporation clause in the bill of lading.
1-056
It is the bill of lading, too, which brings into the contract of carriage the overall, international conventions which control the conditions of carriage. The effect and impact
of the Hague, Hague-Visby and Hamburg Rules will be discussed in Module 5.
2.4
SEAWORTHINESS
1-057
The concept of seaworthiness is important in a legal context because it relates

directly to the shipowners right to limit his liability. From a starting point, under
1-23
Module 1
English common law, whereby the common carrier has an absolute liability for
the safety of the cargo entrusted to his care, the shipowner has consistently
endeavoured to widen his right to limit his liability over and above the basic
exemptions of:
1-058
act of God;
Queens enemies;
inherent vice of the goods.
The Hague Rules and their successors are an attempt to find an equitable
balance between the shipowners and the cargo owners rights, responsibilities
and risks. Rule 1 of Article III of the Hague-Visby Rules states:
The carrier shall be bounden, before and at the beginning of the voyage, to
exercise due diligence to:
(a)
make the ship seaworthy;
(b)
properly man, equip and supply the ship;
(c)
make the holds, refrigeration and cold chambers, and all other parts of the
ship in which goods are carried, fit and safe for their reception, carriage
and preservation.
1-059
To invoke his right to limit liability, the shipowner must be able to demonstrate
that both he and his servants exercised due diligence in the responsibilities set
out above. The cargo owner, shipper or receiver who has suffered loss or damage
to his cargo can be expected to challenge the shipowners right to limit liability
by proving that he has failed to exercise due diligence in these matters.
1-060
Cargo claims which are resolved in court or through arbitration generally take a
number of years to resolve. The marine surveyor who is involved in gathering evidence in order to establish whether due diligence had, or had not, been exercised
in ensuring that a vessel was seaworthy at a particular point in time will first need
to clarify the precise, contractual context of the seaworthiness requirement.
1-061
The court or arbitrator will want to know:
Was the vessel seaworthy (at the commencement of the voyage and at the
time in question)?
If not, did the owner exercise due diligence to make the vessel seaworthy?
If not, did the unseaworthiness cause the loss or damage?
1-062
The third point raises the issue of causa proxima or the direct, as opposed to the
indirect (causa remota), cause of an incident or loss. In the words of Scrutton
(Scrutton on Charterparties and Bills of Lading, first edition published in 1886):
The seaworthiness required is relative to the nature of the ship, to the particular voyage contracted for and the particular stage of that voyage being different
1-24
Module 1
for summer or winter voyages, whilst loading in harbour and when sailing, and
varies with the particular cargo contracted to be carried.
1-063
The sometimes elusive concept of seaworthiness also affects hull insurance

(covered in Module 5) and the (British) Marine Insurance Act 1906 (Section
3940) stated: A ship is deemed seaworthy when she is reasonably fit in all
respects to encounter the ordinary perils of the seas of the adventure insured.
1-064
In other words, if a marine surveyor is commissioned to investigate the

seaworthiness of a vessel in connection with a cargo dispute or insurance claim,
it is essential that precise instructions are received setting out the contractual
situation.
2.5
CARGOWORTHINESS AND THE TERM CAREFULLY TO CARRY
1-065
The Hague (and associated) Rules also introduce the concept of cargoworthiness and this is an important consideration which is discussed in Module 2
(Sections 4.4 to 4.7) which cover fitness for purpose and commercial surveys. It
is sufficient here to state that the vessels function and the masters duty is to
carefully load, stow, carry, discharge and deliver the cargo entrusted to the vessel through a variety of inter-related contracts. It is important always to bear in
mind that the eventual receiver of the cargo may well not be a party to many of
the contracts involved, but have purchased the cargo on the basis of a bill of lading, possibly supplemented by an inspection report on the particular goods
which was made some time before the goods were delivered for shipment.
1-066
On the other hand, although modern communications and data transmission

technology is making inroads into this, for the major part of the marine transportation in the transfer of goods from buyer to seller, the master and his crew
have sole care and custody of those goods.
1-25
3.
THE PURPOSE OF MARITIME STRATEGY

AND SAFETY
LEARNING OUTCOMES
describe the role of the International Maritime

Organization (IMO);
consider the magnitude of marine accidents; and
state how the IMO tends to react to these accidents.
3.1
THE ROLE OF THE IMO
1-067
The previous two sections have concentrated on the commercial aspects of

shipping which are governed by what is generally termed private law. In other
words, the law relates to the rights and responsibilities of those who choose to
become contractually involved.
1-068
Considerations of safety involve both those who are contractually involved but to
whom the shipowner (as employee) owes a duty of care, such as the crew, as well
as innocent third parties. This area is generally referred to as public law and one
of the earliest examples of the modern era was the introduction of the requirement
for load lines into the Merchant Shipping Acts in 1876 following the publication by
Samuel Plimsoll of Our Seamen; An Appeal in 1873, and Coffin Ships in 1876.
1-069
In the 1950s each shipping nation had its own maritime laws and there were
comparatively few international treaties addressing maritime safety. Standards
and requirements varied considerably and were sometimes even contradictory.
In the following years, the world fleet grew at a considerable rate, from some 118
million tons in 1958, the year that conventions establishing IMO came into force,
to 406 million tons by 1978. At the same time vessels became more specialised,
more complex and larger. Safety was becoming a global issue and IMO was the
forum in which international standards were established.
1-070
IMOs governing body is its Assembly, which meets once every two years and
which consists of representatives from all member states (in excess of 150).
Between sessions, a Council consisting of 32 member governments, elected by
the Assembly, acts as its governing body.
1-071
The legal vehicles through which IMO achieves its objective of internationally
enforceable safety standards are conventions and protocols. Established by
Convention in 1948, the Intergovernmental Maritime Consultative Organisation
1-26
Module 1
The Purpose of Maritime Strategy and Safety
(its name until 1982) met formally for the first time in 1959. Since then, IMO has
promoted the adoption of some 30 conventions and protocols, supplemented by
over 700 codes and recommendations concerning maritime safety, the prevention
of pollution and related matters.
1-072
IMO works through specialist committees and sub-committees composed of

representatives of member states. They are advised and assisted by appropriate bodies of the United Nations as well as more than 30 inter-governmental
organisations and nearly 50 non-governmental international organisations.
These organisations have consultative status but cannot vote.
1-073
The initial work on a convention is done by the appropriate committee or subcommittee; the resultant draft is submitted to a conference which all member states
are invited to attend. The final text is then presented to governments for ratification.
The convention comes into effect when it has been ratified by an agreed number of
member states representing an agreed percentage of world tonnage.
1-074
In addition to the conventions and protocols, through which major amendments

and extensions are made to original conventions, are the many codes, guidelines and recommended practices. These are not usually legally binding,
although they are frequently used in framing national laws and some, such as
the International Safety Management (ISM) Code, are made mandatory by
including the appropriate reference within a convention.
1-075
Most of the conventions now include a tacit acceptance provision. Under tacit
acceptance an amendment to the convention enters into force on a specified
date (usually about two years after the amendment is adopted) unless it is
rejected by one-third of contracting parties or contracting parties whose combined
fleets represent 50% of world tonnage.
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Adopting conventions, codes and recommendations is important but they mean

nothing if they are not enforced. This is the responsibility of governments rather
than IMO and, not surprisingly perhaps, the way regulations are implemented
varies from country to country.
1-077
One step which IMO has taken to improve implementation and eliminate the differences in standards and interpretation is to establish a technical co-operation
programme. An extension of this is the World Maritime University, established in
Malmo, Sweden in 1982. More recently, a sub-committee on flag state implementation has been established and a regime of port state control introduced,
allowing governments to inspect foreign vessels visiting their ports for compliance with conventions and recommendations.
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IMO is a technical organisation and most of its work is carried out in a number
of committees and sub-committees.
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The Maritime Safety Committee (MSC) is the most senior of the committees that
carry out the organisations technical work. It has a number of sub-committees
whose titles indicate the subjects they deal with:
Safety of Navigation;
Radio Communications;
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Life-Saving, Search and Rescue;
Training and Watchkeeping;
Carriage of Dangerous Goods;
Ship Design and Equipment;
Fire Protection;
Stability and Load Lines and Fishing Vessel Safety;
Containers and Cargoes;
Flag State Implementation; and
Bulk Chemicals.
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The Marine Environment Protection Committee (MEPC) was established by the

Assembly in November 1973. It is responsible for co-ordinating the organisations activities in the prevention and control of pollution of the marine environment from ships. The sub-committees on Bulk Chemicals and Flag State
Implementation are also sub-committees of the MEPC.
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The Legal Committee was originally established to deal with the legal problems
arising from the Torrey Canyon accident of 1967, but it was subsequently made
a permanent committee. It is responsible for considering any legal matters within
the scope of the organisation.
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The Technical Co-operation Committee is responsible for co-ordinating the work of

the organisation in the provision of technical assistance in the maritime field, in
particular to developing countries. The importance of technical assistance in IMOs
work is shown by the fact that it is the first organisation in the United Nations system
formally to recognise a Technical Co-operation Committee in its convention.
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The Facilitation Committee is responsible for IMOs activities and functions relating
to the facilitation of international maritime traffic. These are aimed at reducing
the formalities and simplifying the documentation required of ships when
entering or leaving ports or other terminals.
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All the committees of IMO are open to participation by all member governments
on an equal basis.
1-085
The committees are supported by a secretariat of some 300 international civil

servants headed by the secretary-general.
3.2
MARITIME LOSSES: THEIR IMPACT
1-086
Maritime loss is used generically to cover both:
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accidents for which a specific error or malfunction can be found in the

causal chain of events; and
casualties which can be equated to acts of God.
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Maritime losses can be grouped into four categories with the categories being
defined largely by the particular stakeholders who are most affected by the loss.
The concept of stakeholder interest is being used increasingly in assessing the
impact of accidents and casualties and it will be discussed further in Chapter 8.
The four categories are:
(i)
loss of vessel, primarily affecting the beneficial owner and his insurer;
(ii)
loss of cargo, primarily affecting the shipper or receiver and their insurer(s);
(iii)
loss of life or personal injury, primarily affecting the injured parties and
their families and dependants;
(iv)
damage to the marine environment where, beyond the immediate loss of

livelihood and annuity, the loss is being seen as affecting the wider public
interest.
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Public reaction must be considered an integral part of a marine safety regime

since it is frequently public reaction which drives the political will to change the
status quo. This is not the place to discuss whether it is the press (or media)
which drives public opinion or the opposite. Nevertheless, the often overpowering impact of press and public opinion should be borne in mind by any marine
surveyor involved in an accident or casualty which attracts public attention.
1-089
Public pressure can undoubtedly be an important vehicle for change, especially

against the resistance of vested interests and entrenched bureaucracy.
Conversely one major, but often overlooked, advantage of having international
safety standards is that safety has largely been removed from the control of the
commercial arena. Although safety does vary from country to country, as is
indicated by annual casualty statistics, most ships engaged in foreign trade are
built, maintained and operated according to standards laid down by IMO.
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Two of the main criticisms levelled at the international/inter-governmental

endeavours to raise global safety standards, now primarily the responsibility of
IMO, are that:
major advances or changes are only generated in response to a major

casualty; and
the changes take too long to implement.
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Although the international conference convened by the United Kingdom in 1914,

in response to the 1912 Titanic disaster, adopted the first Safety of Life at Sea
(SOLAS) Convention, it did not enter into force because of the outbreak of the
First World War. A second SOLAS Convention was then not adopted until 1929
and did not come into force until 1933, some 20 years after the incident which
brought it about.
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In 1967 the Torrey Canyon went aground and spilled an unprecedented 120,000
tonnes of oil into the sea off the coast of England the worlds first major
pollution disaster. Faced with demands from politicians, press and public, the
British government came to IMO with a series of proposals. These evolved into
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a comprehensive action plan which saw major changes being made to regulations
concerning pollution.
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Almost exactly 20 years later, the Herald of Free Enterprise tragedy, with the
loss of 188 lives, again saw the United Kingdom approach IMO and, just over a
year later, a series of amendments to SOLAS 1974 were adopted. They came
into force in October 1989 with a further set of amendments entering force in
April 1990.
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IMOs response to another major ro-ro ferry disaster, the Estonia, which sank
with the loss of 912 lives in September 1994, was a major review of all aspects
of ro-ro safety. This led to further significant amendments to SOLAS, many of
which were already in force by the time the official report of the disaster was
published in 1997.
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There are other examples of marine disasters which have triggered changes
and amendments to IMOs conventions and codes of practice, such as the
Amoco Cadiz and Exxon Valdez oil spills. IMOs reaction time and ability to
incorporate corrective measures into international treaties has undoubtedly
improved. However, the impetus for the re-examination of and improvement to
safety standards has, all too often, been in response to a major accident or
casualty. It can also be argued that the resultant recommendations driven by
public pressure sometimes address the specifics of a particular incident rather
than the fundamental causes of the problem.
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There is, within the international maritime community, a growing recognition of

this problem. One initiative, again piloted by the United Kingdom, is to introduce
a risk management approach to establishing safety standards. This approach,
referred to as Formal Safety Assessment, is discussed in Chapter 8.
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Another problem of the current system is that it depends largely on the active
technical and political input of interested and involved member states. It is
noticeable that while the sinking of both the Herald of Free Enterprise and
Estonia, with the loss of 188 and 912 lives respectively, generated relatively
prompt amendments to IMO conventions, the loss of the Philippines ferry Dona
Paz, with the loss of 4,375 lives, did not generate a similar level of international
activity.
3.3
MARITIME LOSSES: THEIR QUANTUM AND COST
1-098
The meaningful analysis of the statistics of maritime losses is a complex exercise which must be undertaken against a background of major changes which
can be summarised under the following headings:
(i)
Growth in Tonnage
In 1958 the world fleet totalled 118 million tons and the worlds shipyards were
delivering 9.2 million tons. In 1975 the worlds shipyards delivered a peak figure of 34 million tons and in 1978 the world fleet was 406 million tons. By
1996, after some years of negative growth, the size of the world fleet was 497
million gross tons (ships over 500 gt). In 2006, gross tonnage was 710 million
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tons, consisting of 49,213 vessels (with a further 45,723 vessels under 500
gross tons, with a total gross tonnage of 11 million tons).
(ii)
Specialisation of Tonnage
Whereas once the major part of the merchant fleet could be divided into
tankers, bulk carriers, dry cargo vessels and passenger liners, this is no
longer so. Liquefied gas carriers and chemical tankers, container vessels
and a wide range of roll-on roll-off ferries, both monohull and catamaran,
as well as a major fleet of offshore support vessels, are but some of
the changes. All these vessels demand, to a greater or lesser degree,
specialised knowledge and skills from the seafarers who man them. At the
same time, vessels have grown rapidly in size so that the world fleet now
contains vessels capable of transporting up to half a million tonnes of
crude oil and over 8,000 twenty foot equivalent (TEU) containers and
vessels of 12,000 TEU capacity being designed.
(iii)
Economic Conditions
The shipping industry is a notoriously cyclical industry requiring a heavy
capital investment which needs to be made against an uncertain and often
erratic income forecast. Wildly optimistic forecasts of economic growth,
and especially the demand for oil, in the late 1960s and early 1970s generated an explosion of shipbuilding capacity and excess tonnage which is
only just working its way out of the system. Freight rates have, in general
terms, failed to keep pace with the general inflation of costs and this has
had a direct impact on the structure of the industry.
(iv)
Industry Structure
Financing costs and operating costs are two of the variables where
shipowners and operators can counter the real term reduction in freight
rates and achieve a competitive edge. Within the area of financing, the
search for favourable tax regimes for large, capital investments played a
significant part in the major move of shipowning from traditional flags to
what are now commonly referred to as flags of convenience. The desire of
many developing countries, encouraged by the policies of the United
Nations Conference on Trade and Development (UNCTAD), also moved
resources away from the traditional and experienced shipping nations.
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In the area of ship operating costs, one item which was seen as offering potential for reduction was crew costs. Over the last 20 years, there has been a major
move from the employment of experienced seafarers, generally from traditional
shipowning nations, with their high social costs and sometimes over-unionised
work practices, to almost anywhere that can offer cheap manpower.
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Coupled with this has been the decline of the owner/operator and the rise of the
international ship manager. With the fierce competition for ship management
contracts in the global arena, crew costs have remained under pressure and,
despite the use of fewer and fewer experienced crew on more and more
specialised vessels, training costs have frequently been an early casualty of the
search for economical operation.
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Against this background, the bare statistics for ships lost each year (based on
figures issued by the London Underwriters Association) show the following
percentages of world tonnage:
1950 1959
Under 0.30%
1960 1969
Rising to 0.40% by 1969
1970 1979
Dropping to 0.31% in 1977 but rising to 0.56% in 1979
1980 1989
Eventually decreasing to 0.20% by 1989
1990 1996
Up to 0.40% in 1991 but down to 0.13% by 1996
Unfortunately, these statistics are no longer presented in the same way, but
casualty statistics are available on IMOs website (www.imo.org/circulars).
Circular MSC 953 defines casualties as follows:
Very serious casualties are casualties to ships which involve total loss of the
ship, loss of life, or severe pollution, the definition of which, as agreed by the
Marine Environment Protection Committee as its 37th session (MEPC 37/22,
paragraph 5.8) is as follows:
Severe pollution is a case of pollution which, as evaluated by the coastal
state(s) affected or the flag state, as appropriate, produces a major deleterious
effect upon the environment, or which would have produced such an effect without preventative action.
Serious casualties are casualties to ships which do not qualify as very serious
casualties and which involve a fire, explosion, collision, grounding, contact,
heavy weather damage, ice damage, hull cracking, or suspected hull defect etc,
resulting in:
immobilisation of main engines, extensive accommodation damage,

severe structural damage, such as penetration of the hull under water etc,
rendering the ship unfit to proceed; or
pollution (regardless of quantity); and/or
a breakdown necessitating towage or shore assistance.
Less serious casualties are casualties to ships which do not qualify as very
serious casualties or serious casualties and, for the purpose of recording
useful information, also include marine incidents which themselves include
hazardous incidents and near misses.
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The following table is an extract that illustrates the recent trend for very serious
casualties and the preponderance of serious casualties linked to hull or watertight door failure. Many of these are linked to bulk carrier losses and the reason
for the current review of bulk carrier design by IMO.
Very Serious Casualties
Number of Lives Lost
95
96
97
98
99
95
96
97
98
99
Collision / contact
20
28
31
20
25
96
48
74
19
50
Stranding / grounding
24
23
17
24
19
15
Capsizing / listing
13
14
14
543
259
61
13
Fire / explosion
23
18
19
12
21
51
30
54
18
84
Hull and watertight

door failure
93
80
43
70
58
194
204
78
367
232
Other
27
11
60
Total
166
156
127
148
145
360
834
474
495
484
Severe Pollution
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Actual Total Losses
95
96
97
98
99
95
96
97
98
99
Collision / contact
19
26
23
15
21
Stranding / grounding
24
23
17
24
Capsizing / listing
12
13
12
Fire / explosion
17
12
11
11
Hull and watertight

door failure
93
80
43
70
56
Other
11
Total
15
16
16
11
157
143
111
139
119
Within these overall statistics, age, type of vessel and flag are perhaps the most
relevant areas for analysis. Detailed figures are produced by IMO, as well as
other sources such as the P&I clubs.
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Another measure of safety is the number of lives lost at sea and accidents to
ships over 500 gt. The 1989 to 1999 figures are:
Year
Lives Lost
1989
810
1990
807
1991
1,389
1992
386
1993
615
1994
1,418
1995
328
1996
1,437
Single Incident Over 250 Lives
Salem Express 464
This total appears to exclude over 1,700 lives

lost on Neptune
Estonia 912
Bukoba 869
Gurita 338
1997
474
1998
495
1999
484
Although the IMO

statistics only show
835 lives lost
It is a stark fact that an average of nearly 800 people are lost at sea in
(supposedly) well-found commercial vessels every year.
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With the growing number of cruise vessels, as well as the increase in size, number
and speed of passenger ferries, it is to be sincerely hoped that the toll of lives
lost is kept under control by the effective implementation of the international
safety strategy which is focused on IMO.
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These figures ignore the additional incidents of personal injury, damage or loss
to cargo and pollution damage which are reflected in the liability insurance
returns of the protection and indemnity associations. Careful study of the annual
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reports and published analyses of the P & I clubs should be considered as

essential reading by the marine surveyor.
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On the following table, a breakdown of the class and causes of 94 high-value claims
in excess of $1,600,000 each, gives an indication of the information available.
Type
Cause
Cargo
20
Bad handling
Injury
Bad stowage
Other
Damage prior to loading
Collision
17
Fire
Property Damage
26
Grounding
Pollution
14
Inadequate coatings
Wreck Removal
Sank
Injury (non-crew)
Shell plate failure
Unrecoverable G A
Ship machinery failure
3.4
INTERNATIONAL STRATEGY FOR SAFETY
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The international strategy for safety is largely reflected in the range and scope
of IMO conventions and recommendations. It is also reflected in the way in which
the process of generating these instruments, together with amendments to existing conventions, is changing and adapting to the demands of the industry and
the public and nowhere more so than in concern over pollution.
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The full range of IMO conventions and subsidiary instruments, together with
their status (with regard to ratification and implementation) can be obtained from
the headquarters of the International Maritime Organisation in London and can
also be accessed through their website (http://www.imo.org). The main conventions for which IMO is responsible are:
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International Convention for the Safety of

Life at Sea 1974
Protocols 1978, 1988
Convention on the International
Regulations for Preventing Collision
at Sea 1972
International Convention for the Prevention
of Pollution from Ships 1973
Convention on Facilitation of
International Marine Traffic 1965
International Load Line Convention 1966

Protocol 1988
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SOLAS 1974
COLREGS 1972
MARPOL 1973
FAL 1965
LL 1966
International Convention on Tonnage

Measurement of Ships 1969
TONNAGE 1969
International Convention Relating to

Intervention on the High Seas in Cases of
Oil Pollution Casualties 1969
Protocol 1973
INTERVENTION
1969
International Convention on Civil Liability for

Oil Pollution Damage 1969
CLC 1969
Special Trade Passenger Ships Agreement 1971

Protocol on Space Requirements 1973
STP 1971
Convention relating to Civil Liability in the Field

of Maritime Carriage of Nuclear Fuels 1971
NUCLEAR
1971
International Convention on the Establishment

of an International Fund for Compensation for
Oil Pollution Damage 1971
FUND 1971
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International Convention for Safe Containers

1972
CSC 1972
Athens Convention relating to the Carriage

of Passengers and their Luggage by Sea 1974
PAL 1974
Convention on International Mobile Satellite

Organisation plus Operating Agreement
INMARSAT
Convention on Limitation of Liability for Marine

Claim 1976 Protocol 1996
LLMC 1976
International Convention on Standards of

Training, Certification and Watchkeeping for
Seafarers 1978 Amendments 1995*
STCW 95
International Convention on Standards of

Training, Certification and Watchkeeping for
Fishing Vessel Personnel 1995
STCW-F 1995
International Convention on Search and

Rescue 1979
SAR 1979
Convention for the Suppression of Unlawful

Acts against the Safety of Maritime Navigation
1988 Protocol relating to Fixed Platforms 1988
SUA 1988
International COSPAS-SARSAT Programme

Agreement 1988
COS-SAR 1988
International Convention on Salvage 1989
SALVAGE 1989
International Convention on Oil Preparedness,

Response and Co-operation 1990 with
Hazardous and Noxious Substances Protocol
OPRC 1990
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Torremolinos International Convention for the

Safety of Fishing Vessels 1977 Protocol 1999
SFV 1997
International Convention on Liability and

Compensation for Damage in connection with
the Carriage of Hazardous and Noxious
Substances by Sea 1996
HNS 1996
Convention on the Prevention of Marine

Pollution by Dumping of Wastes and other
Matter (London Dumping Convention) 1972
Protocol 1996
LC 1972
Bunker Convention
BC 2001
Anti-Fouling Systems
AFS 2001
In addition, a number of the codes of practice have also been made mandatory
under either SOLAS or MARPOL and these are:
International Gas Carrier Code 1983
International Bulk Chemicals Code 1983
International Code for the Safe Carriage of Grain in Bulk 1991
International Safety Management Code 1993
International Code of Safety for High-speed Craft 1994
International Code for Safe Loading and Unloading of Bulk Carriers 1997
(BLU Code)
International Ship and Port Facility Security (ISPS) Code 2004
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It is clear that IMO is becoming more aware that increasing regulation alone will
not ensure an adequate level of safety. The ability (and tendency by many) to
classify 80% of accidents as human error on the part of the seafarer did little in
itself to promote safety. It did, however, focus attention on the need to address
both the educational and training needs of the seafarer and the deteriorating
state of maritime management in a number of areas, frequently but not exclusively linked to flags of convenience.
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The response has been swift and pragmatic considering the fact that IMO
depends on international agreement for the adoption of its conventions and then
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a commitment, by the member states, to implement the meaning as well as the

letter of the convention.
1-114
The virtual re-writing of the Convention of Standards of Training, Certification

and Watchkeeping as an amendment in 1995 (STCW 95) in order to speed
adoption and implementation is a prime example. So too is the concept of a
white list of member states who have complied with STCW 95 implementation
requirements the closest IMO has moved to what could be termed as sanctions.
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The focus on management contained within the compulsory International Safety

Management (ISM) Code is another example of the recognition that technical
regulation alone is not the route to safety.
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The application of the ISM Code is discussed in Chapter 6.
1-117
IMO is also looking at ways in which it can be even more pro-active and not find
itself reacting to major marine casualties as has happened in the past. The
investigation of Formal Safety Assessment, explored in Chapter 8, is a demonstration of this.
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In 2000, regulations were introduced under SOLAS that require the phased
introduction of voyage data recorders (VDR) (beginning with the new passenger
vessels built after 1 July 2001) and automatic information systems (AIS),
transponders that transmit information on the carrying vessel, commencing with
all passenger ships on 1 July 2001.
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Other areas of current attention include the design, buoyancy and strength
requirements of bulk carriers, especially in way of the fore part of the vessel and
security. Here, the development of technology and specifically the ability of
remotely operated vehicles (ROVs) to inspect sunken vessels at great depths
has significantly widened the scope of casualty investigation. Security is a twopart concern, covering both piracy and international terrorism, and new security
measures are currently under discussion in the Maritime Safety Committee.
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Finally, IMO is finding stronger ways of ensuring implementation and compliance

with its conventions. The IMO Sub-Committee on Flag State Implementation
(FSI) recognised the need for a single, comprehensive document which would
provide basic guidance on the conduct of port state control (PSC). The recommendations of the FSI Sub-Committee, made at its January 1996 session, were
given effect by Assembly Resolution A.787(19) and the effect of this is discussed
in Chapter 7.
3.5
INTERNATIONAL STRATEGY FOR SECURITY
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Following the terrorist attack on the World Trade Centre in New York on
11 September 2001, the United States proceeded rapidly with what became a
Home Security initiative that included ships as well as aeroplanes. Rather than
see regional initiatives, IMO moved quickly to put in place a global, maritime
security system. Using SOLAS, an existing convention, IMO adopted new
regulations in Chapter XI of SOLAS 74 in December 2002 in co-operation with
other organisations such as:
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the International Labour Organisation (ILO); and
World Customs Organisation (WCO).
This enabled IMO to publish the International Ship and Port Facility Security
(ISPS) Code with an implementation date of 1 July 2004.
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The unique aspect of the ISPS Code is that, for the first time, IMO produced legislation that, when implemented by contracting governments (effectively flag
states), imposed obligations upon ports and not just ships. There are two main
thrusts to the ISPS Code. The first is to improve the information available about
ships, their recent trading pattern and their ownership history. All ships, therefore, in addition to clearly displaying their ships identification number, must provide a port with a continuous synopsis record containing such information as:
flag state;
date of registration;
ID number;
name and port of registry;
registered owners (and bareboat charterers) and address;
name of company (under ISM Code);
class;
administration issuing Document of Compliance (DOC) and Safety

Management Certificate (SMC);
name of administration issuing International Ship Security Certificate

(ISSC); and
the date when the vessel ceased registration with a flag state.
In addition, a port will demand to know the last 10 ports of call of the vessel and
may deny entry if one of those ports has not met ISPS Code requirements.
Finally, the date for the provision of Automatic Identification Systems (AIS) was
brought forward to 31 December 2004 for most ships trading internationally.
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Ports also have an obligation to put in place security plans, procedures and
training, most ports being divided into individual port facilities or distinct terminal areas for this purpose. Both ships and ports require qualified security officers
and security plans that have been approved by their governments. Security
operates on three levels:
Security Level 1
The level for which minimum protective measures shall be maintained at
all times.
The port or ship may make a declaration of security.
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Security Level 2
Appropriate additional protective security measures shall be maintained
for a period of time as a result of heightened risk of a security incident.
Security Level 3
Further specific protective security measures shall be maintained for a
limited time when a security incident is probable or imminent, although
it may not be possible to identify the specific target.
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In parallel with the development of the ISPS Code, measures were also being
developed to enhance the security of the global supply chain and especially the
232 million container movements through some 4,000 ports involving a large
proportion of the 46,000 internationally trading merchant ships. In addition to this
are the security issues attaching to some 1.2 million seafarers.
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The WCO took the lead co-ordinating role with regard to cargo supply chain
security with Customs-Trade Partnership Against Terrorism (C-TPAT), a joint
government-business initiative to build co-operative relationships that
strengthen overall supply chain and border security as one of the outcomes. The
ILO is co-ordinating the initiative to develop seafarer identification documents
with considerable discussion surrounding the use of biometric identification
cards and the restriction on shore leave for seafarers.
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Of particular importance to the marine surveyor is the need to ensure that proper
arrangements have been put in place that will ensure that he or she has access
to the port and to the ship.
Discuss the pros and cons of international laws governing ship
operation against the current system of international conventions
that are then interpreted into national laws.
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4.
OCCUPATIONAL HEALTH AND SAFETY
LEARNING OUTCOMES
state the guiding principles of health and safety;
describe how local occupational health and safety laws

need to dovetail with international maritime laws and
conventions; and
be aware that in your occupation as a marine surveyor

you will also have to look after your own health and safety.
4.1
THE ROLE OF ILO
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Like IMO, the International Labour Organisation, based in Geneva, is an agency

of the United Nations. However, it has a much wider remit, and maritime labour
issues only form part of its responsibilities. It also differs from IMO in its constitution. While IMO consists of two contributing parties:
the flag states (ie governments); and
the NGOs (non-government organisations such as Class, IFSMA, INTERTANKO, ISF, Friends of the Earth and many others).
ILO has three constituent parts:
government;
employers; and
employees.
Furthermore, while in IMO only flag states can vote, all three elements of ILO
can vote.
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Understandably, ILO is primarily interested in labour standards and human

rights and specifically in seafarers working conditions, including such issues as
remuneration, diet, health, repatriation and increasingly fatigue as crews get
smaller and paperwork and inspections increase. In addition, ILO takes an active
role in promoting good accommodation standards and, in this area especially, its
requirements may well affect marine surveyors (www.ilo.org).
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Occupational Health and Safety
4.2
SHIPBOARD SAFETY AND SAFETY COMMITTEES
1-129
Every flag state will have its own domestic health and safety regulations
covering both the procedures to be followed to prevent accidents as well as the
actions to be taken in the event of accidents. In this area, the reporting of
accidents and subsequent statistical analysis are important aids in focusing
accident prevention resources. Another important aspect of accident prevention
is the development of a no blame reporting culture. Much can be learnt from
near misses, which, under a who is to blame culture, would be suppressed as
well, as from an open examination of the cause of an accident.
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The guiding principles of health and safety are that:
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employers have to look after the health and safety of their employees;
employees and the self-employed have to look after their own health and
safety; and
all have to take care of the health and safety of others, such as their fellow
workers or members of the public who may be affected by their work
activities.
Increasingly, health and safety regulations are led by:
international law and conventions (such as IMO); and
regional organisations (such as the European Union).
Recent revisions to the British Merchant Shipping (Safety and Health at Work)
Regulations, for example, have introduced the concept of a formal application of
risk assessment in order to minimise accidents.
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Health and safety regulations should, in general terms, impose the following
obligations upon an employer:
the avoidance of risks;
the evaluation of unavoidable risk;
the adoption of work patterns and procedures which take into account the
capacity of the individual especially with respect to the design of the workplace and the choice of work equipment, with a view to alleviating monotonous work and to reducing any consequent adverse effect on workers
health and safety;
the adoption of a coherent approach to management of a vessel or

undertaking, taking account of health and safety at every level of the
organisation;
to give collective protective measures priority over individual protective

measures;
to provide appropriate and relevant information and instruction for workers.
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A suitable and sufficient assessment should be made of the risks to the health
and safety of workers arising from the normal course of their activities or duties,
for the purpose of identifying groups of workers at particular risk.
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Increasingly, where workers aboard a vessel are not employed by the company,
the company has an obligation to co-ordinate the arrangements for the protection of workers with the employer of those workers. This also reflects the requirements of the International Safety Management Code.
1-135
As part of the health and safety regime on board, a safety committee should be
established and a safety officer appointed. The safety officer should use his best
endeavours to improve safety consciousness amongst the crew and investigate
every accident or dangerous occurrence, potential hazard to health and safety
and all reasonable complaints by the crew. He should have a direct reporting
route to the master and should also carry out health and safety inspections of
the vessel at regular intervals.
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He can be assisted in his duties by safety representatives and a safety committee, which, to be fully effective, should be chaired by the master. This committee
should have the power and the duty to make representations to the company on
potential hazards and dangerous occurrences at the workplace.
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The proceedings and records of the Shipboard Safety Committee should provide important evidence in the event of an accident or incident investigation by
a marine surveyor.
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Finally, it is important that the marine surveyor is conscious of and complies

with, and is seen to comply with, all relevant health and safety legislation in the
course of their work. The first and most outwardly obvious expression of this is
wearing appropriate protective clothing.
4.3
HEALTH, FATIGUE AND QUALITY OF LIFE
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Although not directly the concern of the marine surveyor, an understanding of

crucial and topical issues such as fatigue and, increasingly, quality of life are
essential. To carry out his or her role effectively, the marine surveyor needs the
co-operation of the ships staff and in port, almost inevitably, they are under pressure. Increased paperwork and high levels of audits, surveys and inspections, to
which the marine surveyor contributes, together with the reduced numbers of
crew, all contribute to a situation that a surveyor may need to navigate with tact
and understanding.
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Current regulations specify 77 hours non-working time per week, in other words
a minimum of 10-hour rest per day. On smaller coastal ships with a master and
mate of six-on and six-off watches, the 84-hour watchkeeping time leaves little
slack for arrivals and departures, let alone all the other calls on their time.
4.4
SHORE-BASED SAFETY REQUIREMENTS
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On entering into any port, a vessel will also be entering into the area of jurisdiction
of that states national, and possibly local, health and safety regulations. Ports
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where cargo operations are undertaken, and more especially dry docks and repair
yards, are intrinsically hazardous environments and are likely to have established
safety procedures. How these inter-relate with the vessels own regulations and
procedures, especially as workers from ashore undertake their duties on board, is
an area of potential conflict. However, safety has a strong underlying core of common sense and both the vessel and the port should ensure that they are providing
a safe working environment in which others can undertake their rightful duties.
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1-143
1-144
In the United Kingdom, recent legislation reflects the directives emanating from
the EU and is the responsibility of the Health and Safety Executive (HSE). The
HSEs responsibilities cover developing new safety laws and standards, representing the United Kingdom in international developments, especially in the
European Union, and:
inspecting workplaces;
investigating accidents and cases of ill health;
enforcing good standards through advice, orders and, if necessary,

prosecution;
publishing guidance and advice;
providing an information service;
carrying out research;
carrying out various other activities such as nuclear site licensing and the
assessment of offshore installation safety cases.
In the United Kingdom, the HSEs work is supplemented by the local authorities
whose responsibilities cover:
retailing and some warehousing;
most offices;
hotels and catering;
sports;
leisure;
consumer activities; and
places of worship.
Under the umbrella legislation Management of Health and Safety at Work (1992)
which, as with the maritime legislation, introduces a much greater obligation to apply
risk management, the following daughter regulations cover the main areas:
Use of Equipment
Lifting Operations and Lifting Equipment (which covers cranes)
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Personal Protective Equipment
Manual Handling Equipment
Provision and Use of Work Equipment
Workplace Health and Safety and Welfare
1-145
These supplement the 1974 Health and Safety at Work Act, with the Docks
(1988) and Shipbuilding and Ship Repair (1960) Acts as well as the 1988 Care
of Substances Hazardous to Health (COSHH) provisions.
1-146
If it is necessary to refer to or to use health and safety legislation, it is often more

useful to refer to the associated codes of practice. As well as containing the
legislation, these codes also give advice on how the legislation should be interpreted. Up-to-date information on health and safety matters and legislation can
be found on the Health and Safety Executives website (http://www.open.gov.uk/
hse/hsehome.htm).
Assume you wish to set up as a self-employed marine surveyor
in your country of choice. Investigate the H&S regulations that you
will be required to adhere to.
1-46
5.
QUALITY AND AUDITS
LEARNING OUTCOMES
describe todays international structure of quality assurance;
state the purpose and method of auditing quality; and
outline a surveyors role in the inspection and audit.
5.1
AUDITS, INSPECTIONS AND SURVEYS
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Inspections, surveys and audits have, to a degree, a parallel with the management cultures of blame, compliance and of self-regulation. Inspections are used,
particularly in manufacturing, to ensure that the end product meets a defined
specification. Failure to pass inspection results in rejection. It is, in general
terms, a static and reactive approach to ensuring quality.
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A survey, on the other hand, tends to incorporate a view of an objects ability to

meet certain standards, not just at the time of survey but on into the future (for
the defined survey period at the very least). As such, it is a more pro-active
approach to ensuring continued compliance with regulations.
1-149
Auditing tends to take into account the human factor and the dynamics of management to a much greater extent. The International Standards Organisation (in
ISO 10011 Guidelines for Auditing Quality Systems) defines a (quality) audit as:
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a systematic and independent examination to determine whether quality

activities and related results comply with planned arrangements; and
whether these activities are implemented effectively and are suitable to

achieve the stated objectives.
IRCA, the International Register of Certificated Auditors, part of the

London-based Institute of Quality Assurance, defines the following types of audit:
first party (internal) audits performed within an organisation by that organisations auditing organisation;
second party audits where, for example, an organisation audits a supplier

or contractor;
third party audits undertaken by an independent certification body (such

as the flag state administration in the case of the ISM Code).
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Oil Companies International Marine Forum (OCIMF) introduced a new programme of best practice within the ship operations to provide a method of
identifying quality ship operators.
1-152
The Tanker Manager Self Assessment programme provides a comprehensive

instrument to assist ship operators to measure and improve their management
systems. Further, the programme encourages ship operators to assess their
safety-management systems against listed key performance indicators (KPI),
and provide a measure of best practice.
5.2
QUALITY SYSTEMS
1-153
Quality systems evolved as it became increasingly apparent that output inspection

was not achieving the desired result. For a start, it depends too much on identifying and rejecting faulty products or components. This is inherently wasteful and
the aim of the quality systems approach, frequently referred to as quality assurance, was to prevent the production of faulty products, services or components.
The development of this philosophy, to increase the degree of involvement of all
staff in achieving improved quality, moves the business in the direction of total
quality management.
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The other essential dimension of quality management is the recognition of the

customer and the customers expectations. This is perhaps best encapsulated
by the expression:
The customer does not depend upon us, it is we who depend upon the customer.
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Thus, a quality management system (QMS) is required to demonstrate that a

company has implemented procedures which enable it to:
improve customer satisfaction an important consideration for shipping

companies as the perceived quality and safety of the shipping industry
deteriorates;
eliminate waste and errors;
reduce operating costs by the elimination of errors and through improved

efficiency, sometimes a difficult concept for short-term, bottom-line oriented
management contemplating the cost of implementation;
increased motivation and commitment from employers a benefit which

requires skilled management (both sympathetic and determined) and an
understanding of how to manage change; and
increased profitability and competitiveness.
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Quality management systems need to be designed with all stakeholders in mind,

remembering that different stakeholders will have different and sometimes possibly conflicting interests. The list of stakeholders can be extensive (although
they can be grouped) and may include:
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Quality and Audits
Equity
shareholders
Shore-based
employees
Flag
state
Mortgagees
Sea-based
employees
Class
Insurers
Charterers
Public
(environmental)
Cargo
owners
Ports
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A well designed quality management system can also be useful in developing

inter-departmental understanding and co-operation, particularly across the shipshore interface. Conversely, a badly designed and/or imposed QMS can have
precisely the opposite effect.
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The ISO 9000 and ISO 14000 families are among the most widely known and
successful quality standards ever. ISO 9000 has become an international reference for quality requirements in business to business dealings, and ISO 14000
looks set to achieve at least as much, if not more, in helping organisations to
meet their environmental challenges.
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The standards that have earned the ISO 9000 and ISO 14000 families a worldwide reputation are known as generic management system standards.
Generic means that the same standards can be applied to any organisation,
large or small, whatever its product including whether its product is actually
a service in any sector of activity, and whether it is a business enterprise, a
public administration or a government department. Management system refers
to what the organisation does to manage its processes, or activities. Generic
also signifies that no matter what the organisation is or does, if it wants to establish a quality management system or an environmental management system,
then such a system has a number of essential features that are spelled out in
the relevant standards of the ISO 9000 or ISO 14000 families.
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ISO 9000 is concerned with quality management. This means what the organisation does to enhance customer satisfaction by meeting customer and applicable regulatory requirements and continually improving its performance in this
regard. ISO 14000 is primarily concerned with environmental management.
This means what the organisation does to minimise harmful effects on the environment caused by its activities, and continually to improve its environmental
performance.
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At the core of all quality and safety management systems is the need for
documentation. The challenge is to design documentation which facilitates the
system rather than producing an additional and de-motivating paper chase for
those staff involved at the delivery (to customers) end of the business. It is
generally agreed that there should be four tiers of documentation:
Tier 1
The Quality Manual which includes the companys

quality policy describes the organisation, procedures
and practices of the company.
Tier 2
Procedures which describe what is done and by whom

and how, when, where and why an activity is to be
carried out. In other words how the business process
is controlled. It is at this level that the standards of
quality (or safety) which the company aims to achieve
are established.
Tier 3
Job instructions which direct a person in a single activity

and are subordinate documents to Procedures.
Tier 4
Forms and records which, amongst other documents,

should include the record of internal audits and the
status of any non-conformities (q v).
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All of the above are controlled documents which must be formally issued, under
signature, by the correct issuing authority within the company and withdrawn
and destroyed when no longer relevant or when updated. Good quality systems
are designed to keep this task as manageable as possible which is another way
of saying that the amount of documentation should be kept as low as possible.
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ISO 9001:1994 quality management system was the backbone on which the
ISM Code developed. It has now been replaced by ISO 90012000 (while ISO
90042000 provides a wider range of objectives of a quality management system with an emphasis on the pursuit of continual improvement of performance).
The requirements of ISO 90012000 are set out in the table on the following
page together with the related requirements of the ISM Code as well as the code
produced by the International Ship Managers Association (ISMA) discussed in
Section 5.4.
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Quality and Audits
ISO
9001
1994
ISO
9001
2000
IMO
ISM
ISMA
Management Responsibility and Authority
4.1
5.5
Quality Management System
4.2
4.1/2
Contract Review
4.3
7.2
Design Control
4.4
7.3
Document and Data Control
4.5
4.2.3
Purchasing
4.6
7.4.1/3
Customer (Owner/Charterer) Supplied

Product
4.7
7.5.4
Identification and Traceability
4.8
7.5.3
Process Control (Core Activities)
4.9
6.3/4 & 7.5
Safety Management System
4.9
Contingency Plans and Environment

Protection (EVP)
4.9
Vessel Certification and Trading

Readiness
4.9
Maintenance and Repair/Drydocking
4.9
Manning/Personnel
4.9
Communications
4.9
Insurance
4.9
Accounting
4.9
Inspection and Testing of Vessels and

Equipment
4.10
7.1/4/5 & 8.2
Inspection, Measurement and Testing
4.11
7.6
Inspection and Test Status
4.12
7.5
Control of Non-conformances
4.13
8.3
Corrective and Preventative Action
4.14
8.5
Handling, Storage, Packaging Preservation

and Delivery (Cargo)
4.15
7.5.5
Control of Quality Records
4.16
4.2.4
Internal Quality Audits and System Review
4.17
8.2.2/3
Training
4.18
6.2.2
Servicing
4.19
7.5.1
Statistical Techniques
4.20
8.1/2/4
Health, Safety and Environmental Policy
Alcohol and Drug Abuse Policy
Procedure Title
Marketing Policy
*
*
*
*
*
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Quality and Audits
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5.3
UNDERTAKING AUDITS
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Audits, especially those related to ISO 9000 or the ISM Code, have a
well-established procedure which is designed to take into account the objective
of continual improvement. Thus, quality (and safety) management audits are an
ongoing process, incorporating both the companys own internal audits (as
required under section 12.1. of the ISM Code) and formal third party audits by
the relevant administrations.
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As with all activities, and especially those that depend upon the co-operation of
others, the auditee, careful planning is essential. The essential steps of an audit
are outlined below, more detailed advice and guidance is contained within the
recommended references.
(a)
Establishing the Objectives of the Audit

This can be described in terms of both the depth and scope of an audit.
A relatively superficial or shallow audit may be appropriate in order to get
the feel of whether the quality or safety management system is operating
effectively. Alternatively, a deep audit looks more comprehensively at the
details of adherence or compliance.
The scope of the audit defines those activities or part of an organisation
which are to be audited; it is not unusual in internal audits, for example, for
one department to audit another as part of the process of continual improvement or for a specific activity, such as contingency planning, to be audited.
(b)
Planning and Scheduling

Especially in the confined windows of opportunity offered by a vessel in
port, scheduling the audit in conjunction with the master is essential. The
objective is to audit the operation rather than just the documentation but
this places obvious strains on the auditees.
Whenever possible, it is beneficial to identify, obtain and review as much
documentation as possible relevant to the audit, prior to involving the
ships or office staff in the audit of the operation.
(c)
Preparation of Checklists
This can be a contentious issue since a management audit is very different from an inspection, and, to a degree, a survey. It cannot be carried out
by checklist, but there is no doubt that a good checklist provides an invaluable aide mmoire and can improve the efficiency, continuity and depth of
the audit process.
(d)
Performance of the Audit

This falls into five distinct phases:
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1.
The entry meeting.
2.
The audit.
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Quality and Audits
3.
Evaluation of results.
4.
The exit meeting.
5.
The audit report.
The purpose of the entry meeting is to:
introduce the auditor/audit team to the representatives of the auditees;
reconfirm the purpose and scope of the audit;
provide a short summary of the audit procedures and methods;
review any non-conformities carried forward from the previous audit;
finalise the time scale and arrange for escorts to accompany the audit team;
discuss the method by which any non-conformities (qv) will be addressed;
agree a provisional time for the exit meeting.
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The audit focuses on obtaining objective evidence not only that procedures are
being followed but that there is evidence of a genuine endeavour to improve the
existing standards. Quality and safety management systems should be dynamic
rather than static. Open questions should be used as much as possible so that
Has this lifeboat been maintained? becomes Describe how this lifeboat is
maintained or a passage is planned or contingency plan exercised.
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When a procedure is not being followed, or followed incorrectly, a non-conformity

occurs. Non-conformances are classed as follows:
Category 1 or Major Non-conformance
An element of the system standard which is not addressed.
An activity which is in direct contravention of the standard.
An activity which is in direct contravention of a procedure and will have a consequential effect on quality or safety (as defined by the appropriate code).
Category 2 or Minor Non-conformance
An isolated incidence of a non-conformance with a system or procedural

requirement which has no direct consequential effect on quality of safety.
Trends of minor non-conformances, such as three incidences of the same

deficiency, which could lead to a major non-conformance.
Category 3 or Observations
Comments on the quality or safety management system with a view to

improvement.
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Immediately after the audit and prior to the exit meeting, the auditor or audit
team must evaluate the evidence generated during the audit. The objective evidence related to any non-conformances must be rigorously tested.
1-170
At the exit meeting the lead auditor presents an overview of the audit and then
any non-conformances being presented in the form of a corrective action
request (CAR). The auditee should acknowledge, though not necessarily accept,
the CAR by signing it. The objective is for the auditee to formally return the CAR,
containing the following information, before the audit report is finalised (usually
within two working weeks):
the corrective action which is to be taken to correct the deficiency; and
the corrective action which is to be taken to prevent a recurrence of the

deficiency.
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The audit report should incorporate the feedback from the auditee on the action
taken with regard to CARs and will, in due course, be the starting point for the
preparation of the next audit plan.
5.4
INTERNATIONAL SHIP MANAGERS ASSOCIATION (ISMA) CODE
1-172
During 1988, five leading ship management companies met to discuss the
possibility of improving standards within the ship management sector and the
shipping industry in general. Five major and competing ship managers drafted a
Code of Ship Management Standards and encouraged the formation of the
International Ship Managers Association (ISMA). At its inaugural meeting in
April 1991, the code was unanimously accepted. ISMA is now a company, limited
by guarantee, registered in Limassol. It operates through four sub-committees
covering the code, manpower supply and training, legal and insurance matters
and an IMO committee.
1-173
In 1996, ISMA estimated that its membership represented in excess of 60% of

the total world third party managed fleet amounting to some 2,315 vessels of
just under 49 million gross tonnage of which some 47% were under full management, 46% under crew management and 7% under some other form of management. This covered 47,528 crew members currently employed and a further
18,000 (approx.) retained or on leave. Twenty-nine percent of the vessels were
under a national register, a further 29% under a second or international register
(eg NIS, Kerguelen, Isle of Man) and 42% under an open register.
1-174
A particular aspect of the ISMA Code is that it goes wider than the requirements
of a safety or quality code and addresses the commercial business aspects of the
ship managers relationship with the vessel owner. The comprehensive nature of
the code is indicated by its coverage, embracing the following 22 subjects:
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General
Business Ethics
Organisation
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Quality and Audits
Personnel
Safety
Environmental Protection
Contingency Planning
Operational Capability
Cost Efficiency, Purchasing and Contracting
Maintenance and Maintenance Standard
Technical Support
Insurance
Accounting
Certification and Compliance with Rules and Regulations
Cargo Handling and Cargo Care
Communication Procedures
Management Agreement
Records
Auditing Body
Quality System
Document Control
Internal Quality Audits
A major consideration is the auditing of a code which has been drawn up with
the objectives of self-regulation and, in a strategic sense, marketing and business promotion. This had been solved by establishing an independent organisation consisting of four classification societies, American Bureau of Shipping
(ABS), Det Norske Veritas (DNV), Germanischer Lloyd (GL) and Lloyds
Register of Shipping (LR). An audit is carried out by three auditors, drawn separately from each of these societies by rotation and therefore at random. The
audit will be performed for the following classes of ship types:
Container Vessels
Bulk/Dry Cargo Vessels
Tankers
Gas Carriers
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Quality and Audits
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Chemical Carriers
Reefers
Passenger Ships
Special Types
External audits of the ISMA Code, which incorporates the requirements of ISO
9002, are valid for a period of three years, subject to annual intermediate audits.
The company is also required to establish a regime of internal audits.
Consider what quality standard would best suit an international
marine surveying company.
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6.
INTERNATIONAL SAFETY MANAGEMENT

(ISM) CODE
LEARNING OUTCOMES
outline the ISM Code and how it is implemented;
specify the shipowners responsibilities under this code;
state the meaning of safety management certificate (SMC)

and document of compliance (DOC); and
describe the standards of competence required to audit

safety management systems.
6.1
THE ORIGIN AND OBJECTIVES OF THE ISM CODE
1-177
Chapters 1 and 3 outlined how merchant shipping has become increasingly

complex and specialised and is increasingly governed by comprehensive rules
and regulations developed by national and international authorities. At the same
time, less experienced crews have been used, increasingly managed through
short-term contractual, rather than established company relationships. A third
influence has been the technical development of global communications capability which fostered the belief in part of the industry that vessels could effectively
be managed from ashore.
1-178
Many of these factors, especially in the face of continuing low freight rates, gave
the illusion of lower, more competitive operating costs. The down side of this was
the increase in maritime loss and damage which was increasingly attributed to
human error of the master and crew.
1-179
An initial reaction to this was an increase in regulations and procedures and an

endeavour to implant the quality systems discussed in Chapter 5. The introduction
of quality-based systems represents an advance from a culture of blame 80%
of all accidents are caused by [your] human error to a culture of compliance.
A culture of compliance approach requires that:
the rules and regulations address comprehensively all the problems,

dangers and challenges that may be met by a vessel during the course of
its tracking; and
the crew on board have basically the same knowledge base and cultural
approach to dealing with both standard operational and dangerous situations.
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International Safety Management (ISM) Code
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Both of these conditions patently did not apply to the management of ships
during the 1970s and 1980s. This led to the increasing realisation of the need to
move towards the creation of a culture of self-regulation (sometimes called a
safety culture) which concentrates on internal management and organisation for
safety and encourages individual industries and companies to establish ever
better targets for safety performance. It is this realisation which led towards the
adoption, in November 1993, of the ISM Code which was made mandatory, as
from 1 July 1998 for certain classes of vessel, by the entry into force of SOLAS
Chapter IX on the Management for the Safe Operation of Ships.
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The title for SOLAS Chapter IX is important since it introduces management as

a means of achieving an objective which is the safe operation of ships. Under a
culture of compliance the title could well have been Regulations for Safety and
Pollution Prevention on Board Ships.
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A fundamental strength and effectiveness of the ISM Code is that it addresses

two key issues affecting the safe operation of merchant vessels:
(i)
Within the complex inter-relationship of ownership and management, crew

supply and commercial and charter operations, it requires that the company be formally identified as the owner of the ship or any other organisation or person such as the manager, or the bareboat charterer who has
assumed the responsibility for the operation of the ship from the owner of
the ship and who on assuming such responsibility has agreed to take over
all duties and responsibilities imposed by the International Safety
Management Code.
Furthermore, it requires the appointment of a designated person(s) who
is a person or persons ashore with direct access to the highest levels of
management who has or have the responsibility and the authority to monitor the safety and the pollution prevention aspects of the operation of each
ship, and to ensure that adequate resources and shore-based support are
applied as required.
(ii)
The code recognises that it is vital that the management philosophies and
procedures of sea and shore staff are bound together as one cohesive unit
and it defines and reinforces the masters role, establishing that he must
have:
the overriding authority and responsibility to make decisions with

respect to safety and pollution prevention and to request the
companys assistance as may be necessary; and that
the company must provide the ship with the proper resources in
terms of competent personnel.
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One other core element of the code is that it is a dynamic operational procedure
rather than a static regulatory rule and that it incorporates the requirements
[specified in Resolution A.788(19)] to continuously improve the safety management skills of personnel ashore and aboard, including preparing for emergencies
related both to safety and environmental protection.
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Chapter IX of SOLAS specifies that the requirements of the ISM Code apply:
(i)
to passenger ships, including high-speed craft, not later than 1 July 1998;
(ii)
to oil tankers, chemical tankers, gas carriers, bulk carriers and cargo highspeed craft of 500 gross tonnage and upwards, not later than 1 July 1998;
and
(iii)
other cargo ships and mobile/drilling offshore units of 500 gross tonnage
and upwards, not later than 1 July 2002.
1-185
The challenge for the maritime community with the passing of the 1 July 2002
deadline is the need to ensure that the balance of the compliant world fleet
meets the requirements of the ISM Code. Under both the Paris and Tokyo Port
State Control MOUs (see Chapter 7) a three-month concentrated inspection
campaign commenced on 1 July 2002, with an anticipated 3,500 inspections in
the Paris MOU region alone.
6.2
THE SAFETY MANAGEMENT SYSTEM (SMS)
1-186
In terms of the ISM Code, a safety management system means a structured and
documented system enabling company personnel to effectively implement the
company safety and environmental protection policy. To be effective, the SMS
should enable a company to measure its performances allowing for areas for
improvement to be identified and implemented.
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The elements of the code from which the SMS is constructed are:
Preamble
1.
General covering definitions, objectives and application.
2.
Safety and Environmental Protection Policy.
3.
Company Responsibilities and Authority, including the provision of adequate resources.
4.
Designated Person(s).
5.
Masters Responsibility and Authority.
6.
Resources and Personnel, including requirements for familiarisation with

shipboard duties and the need for a common working language.
7.
Development of Plans for Shipboard Operations, a recognition of the

importance of establishing safe procedures for the normal operation of a
ship.
8.
Emergency Preparedness, including contingency planning.
9.
Reports and Analysis of Non-Conformities, Accidents and Hazardous

Occurrences with the objective of improving safety and pollution
prevention.
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10.
Maintenance of the Ship and Equipment.
11.
Documentation.
12.
Company Verification, Review and Evaluation making regular internal

audits an essential part of the SMS.
13.
Certification, Verification and Control specifying that a company must

have in place a valid document of compliance (DOC) and each ship a
safety management certificate (SMC).
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The ISM Code, SOLAS Chapter IX and IMO Resolution A.788(19) adopted on 23
November 1995 can be obtained from the Publications Department at the IMO
head office in London. They are all contained, together with comprehensive
explanatory notes, in Guidelines on the Application of the IMO International Safety
Management Code (Third Edition) published jointly by the International Shipping
Federation (ISF), and International Chamber of Shipping (ICS) also in London.
6.3
THE IMPLEMENTATION AND OPERATION OF THE ISM CODE
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As with all systems and procedures, the introduction of a safety management

system compliant with the ISM Code requires proper planning and resources,
commitment from the top and the involvement of all concerned, both ashore and
aboard. It is, as stated before, a dynamic, operational system and should, to a
large extent, refine and improve the way a company is already operating rather
than require radical re-organisation. Casualty statistics and the resultant requirement for the code does, however, indicate that there are companies which will
require major reorganisation.
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Rule 13 of the ISM Code states that:

1.
The ship should be operated by a company which is issued a document of

compliance relevant to that ship.
4.
A certificate, called a safety management certificate, should be issued to

a ship by the administration or organisation recognised by the administration. The administration should, when issuing a certificate, verify that the
company and its shipboard management operate in accordance with the
approved SMS.
And in Rule 12:

1.
The company should carry out internal audits to verify whether safety and
pollution prevention activities comply with the SMS.
2.
The company should periodically evaluate the efficiency of and, when

needed, review the safety management system in accordance with procedures established by the company.
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These four sub-clauses effectively encapsulate the implementation and operation

of the code. The administration referred to means the government of the state
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whose flag the ship is entitled to fly. A recognised organisation, is, effectively,
a member of the International Association of Classification Societies and there
are only very limited areas where flag states have involved other organisations
in the official auditing of SMSs.
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As discussed in Chapter 5, the requirement is for auditing skills and IMO

Resolution A.788(19), in Appendix 1, Clause 3, Standards of Competence, sets
out the basic requirements for auditor competence. These can be summarised as:
relevant educational qualifications from a tertiary (high educational)

institution or a nautical college linked to seagoing experience;
practical experience of marine operations;
practical knowledge of appropriate ship types;
knowledge of ISM Code;
knowledge of company and/or shipboard SMS; and
audit experience and training.
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These criteria are developed and expanded within the IRCA requirements for
auditor registration set out in Chapter 5, with a particular emphasis being given
to the need for practical experience of marine operations, both commercial as
well as technical. A central reason for this is because much of the time pressure
which raises the risk profile of an operational vessel arises from its need to meet
commercial objectives and deadlines (see Chapter 8).
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Before applying to its administration, a company should have in place an SMS

which will meet the general objectives of Resolution A 788(19) by having:
provided for safe practices in ship operation and a safe working environment;
established safeguards against all identified risks; and
established a procedure to continuously improve the safety management

skills of personnel ashore and aboard, including preparation for emergencies
related both to safety and environmental protection.
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The starting point is the companys document of compliance (DOC). The audit
for this should identify objective evidence demonstrating that the company SMS
has been in operation for at least three months and an SMS has been in operation on at least one ship of each type operated by the company for at least
three months. Objective evidence should, inter alia, include records from internal
audits.
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A DOC is issued for specific ship types which are defined, in SOLAS Chapter IX
as:
Oil tanker
Chemical tanker
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Gas carrier
Bulk carrier
Passenger ships including passenger high-speed craft
Mobile offshore drilling units
Other cargo ships of 500 gross tonnage and upwards
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The DOC is initially valid for five years and is subject to annual verification within
three months before or after its anniversary date. The validity of a DOC may be
extended to include additional types of ship after verification of the companys
capability to comply with the requirements of the ISM Code for such ship types.
Alternatively, a large, international company, or ship management group, may well
require two or more DOCs which could well be issued by different administrations.
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Once the relevant DOC is in place, the shipboard SMS may be audited and the
audit will, as previously mentioned, require evidence that it has been functioning
for three months. The SMC is valid for five years and will be subject to at least
one intermediate verification. If the intermediate verification is not requested, or
if there is evidence of major non-conformity, the issuing administration may
withdraw the SMC.
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Interim certificates may be issued under certain conditions, valid for 12 months
in the case of a DOC and six months for an SMC.
What are the qualifications and the essential requirements
needed for the designated person ashore to be able to work
effectively?
1-62
7.
PORT STATE CONTROL (PSC)
LEARNING OUTCOMES
state what is meant by port state control;
describe how PSC is regionalised; and
review how the US targets PSC inspections on a Boarding

Criteria Matrix arrangement.
7.1
THE PSC ORGANISATION
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Unlike a normal convention, port state control grew out of regional initiatives
using an amalgam of existing IMO (and International Labour Organisation ILO)
convention provisions. Under the provisions of these major IMO conventions:
the administration (ie the government of the flag state):
is responsible for promulgating laws and regulations and for taking all other
steps which may be necessary to give the applicable conventions full and complete effect so as to ensure that from the point of view of safety of life and pollution prevention, a ship is fit for the service for which it is intended and seafarers
are qualified and fit for their duties.
[Procedures for Port State Control, London 1997]
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In the diplomatic language of international organisations:

In some cases is may be difficult for the [flag] administration to exercise full and
continuous control over some ships . . .
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The problem can and has been partly overcome by appointing inspectors at
foreign ports and/or authorising recognised organisations to act on behalf of flag
state administrations.
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The main conventions are listed below, together with a reference to the regulations
which provide for the port state control procedures:
International Convention on Load Lines, as amended and its 1988

Protocol (Loadlines 66/88) Article 21.
International Convention for the Safety of Life at Sea (SOLAS) 1974, its
Protocol of 1978, as amended and the Protocol of 1988 (SOLAS 74/78/88)
Regulation 19 of Chapter I and Regulation 4 of Chapter XI).
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International Convention for the Prevention of Pollution from Ships 1973,

as modified by the Protocol of 1978, as amended (MARPOL 73/78)
Regulation 8A of Annex I, Regulation 15 of Annex II, Regulation 8 of
Annex III, Regulation 8 of Annex V.
International Convention on Standards of Training, Certification and

Watchkeeping for Seafarers 1978, as amended 1995 (STCW 78/95)
Article X.
Convention on the International Regulations for Preventing Collision at

Sea 1972, as amended (COLREGS 72).
International Convention on Tonnage Measurement of Ships 1969 (TONNAGE 69) Article 12.
In addition, the International Labour Organisation, Merchant Shipping

(Minimum Standards) Convention 1976 (ILO Convention No 147) also
applies.
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The application of port state control inspections is effected through regional

understandings. In 1978 the Hague Memorandum of Understanding between
a number of maritime authorities in Western Europe was developed, focusing on
the shipboard living and working conditions required by ILO Convention No 147.
However, the oil spill which resulted from the grounding of the tanker Amoco
Cadiz off the coast of France in 1978 resulted in a major reappraisal.
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This reappraisal incorporated safety of life at sea and the prevention of pollution
from ships into the requirements of the Hague Memorandum and it became the
Paris Memorandum of Understanding which entered operation in July 1982. The
geographical scope of the Paris MoU region covers the European coastal states
(including Russia) and the Atlantic coast of North America.
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Other regional port state control memoranda of understanding are:
the Latin American Agreement (Acuerdo de Via del Mar) Chile,

November 1992;
The Tokyo MoU, covering the Asia-Pacific region, signed in December

1993;
the Caribbean MoU, signed in Barbados February 1996; and
the Mediterranean MoU, signed in Malta in July 1997.
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Further regions within which port state institutions are being developed include
the Indian Ocean, linking India, Australia and East Africa, as well as the Persian
Gulf and West and Central Africa.
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The IMO initiative to promote the establishment of port state regimes is

Resolution A [682(17)] Regional Co-operation in the Control of Ships and
Discharges and the objective is the eradication of sub-standard shipping.
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Under the Paris MoU, the port state control regime is organised as follows:
Port State Control Committee (PSCC)

(This is the political forum where all member states are represented.)
The PSCC will meet with intervals of nine to 12 months (previously

six months) and the meetings will take five days.
The chairman of the PSCC will be elected for a term of three

meetings.
MoU Advisory Body (MAB)

This consists of two European Union (EU) representatives, two non-EU
representatives and the PSCC chairman, serving for a two-year term. The
MAB acts as a Secretariat for the PSCC with a particular responsibility for
strategic policy.
Technical Evaluation Group (TEG)

The TEG evaluates reports from the task forces and prepares reports for
the MAB. The main purpose is to obtain consensus amongst member
countries.
Task Forces
Task forces are established by the PSCC whenever there is a need for the
development of new detailed guidelines, preparation and evaluation of
concentrated inspection campaigns etc. The task force will normally consist of six to eight member countries and will work in the most effective way
in order to achieve their task. Typical tasks include: ISM implementation,
bulk carrier safety, training of port state control officers (PSCO), Highspeed Craft Code, etc.
IMO and ILO

Both these organisations have observer status at PSCC level.
MoU Secretariat
A permanent secretariat is responsible for the ongoing administrative
requirements of the regime. In the case of the Paris MoU, the secretariat
is located in the Netherlands.
SIReNac
This is the central information system which is used by member states to
assist them in selecting ships for inspection. It is essential that ships with
a poor inspection record can be tracked and targeted while it is also
important that the operation of PSC inspections is transparent and seen
to be fair. Further information can be found on the Paris MoU website
(www.parismou.org).
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Ship Inspection Services

Below the MoU level, the organisation and operation of a port state control
regime rests with individual member states maritime authorities which
establish ship inspection services.
7.2
THE PSC INSPECTION
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Before inspections can be undertaken in a manner which will contribute effectively to the elimination of sub-standard ships, it is necessary to identify which
ships should be inspected. Formally, ships may be inspected on the basis of:
(i)
the initiative of the party (port state);
(ii)
at the request of, or on the basis of information regarding a ship provided

by another port; or
(iii)
information provided by a member of the crew, professional body (and

passengers), or for the protection of the marine environment.
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Statistical evidence covering the Paris MoU region over the past three years
has indicated a steep increase in safety management defects (150% over the last
three years). In particular, older ships (15 years) show 14 times as many nonconformities when compared to younger ships (5 years). In 2001, half of the
total number of inspections (9,313) were carried out on general dry cargo ships.
These ships have the highest detention percentage (12%) when compared with
the total number of inspections and made up 65% of all detentions in 2001. They
must now demonstrate their compliance with the ISM Code since 1 July 2002.
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Port state control officers have the difficult task in assessing whether the management system on board is a paper exercise or whether the master is fully
conversant with the SMS and ships personnel are able to communicate effectively in the execution of their duties related to the SMS. It is for this reason that it
is important that PSC officers, as well as ISM Code auditors, have a good understanding of the commercial as well as the technical operation of merchant ships.
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Whilst other MOUs are improving the focus of port State control the Paris MOU
is continuing its work to fill in the details of a new approach to port State control
and in 2006 new main principles of the New Inspection Regime (NIR) have been
agreed. While low-risk ships will be rewarded with a 24 month interval, the high
risk ships will be subject to a more rigorous inspection regime with an inspection every 6 months. During 2006 the discussion on the NIR had to take into
account what happened at the European Community level on the proposed
recast Directive on port State control. Work has also started on the details of the
NIR and a Task Force is preparing proposals for the level and scope of inspections. These inspection matrices should provide a more harmonized approach to
the levels to which different ship types are inspected. This would then also provide more accurate data on the results of the inspections and the level of responsibility. A new element in the NIR will measure the performance of the company
of the ships. It is anticipated that the European decision making process will be
finalized by the end of 2007. This would mean that the NIR will enter into force
in 2010 or 2011 at the latest.
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BOARDING CRITERIA MATRIX
OWNER
FLAG
CLASS
HISTORY
SHIP
TYPE
5 Points
7 Points
Priority 1
5 Points Each
1 Point
Listed owner
or operator
Listed flag
state
A detention ratio
equal
to or greater
than 2%
Detention within
the previous
12 months
Oil or
chemical
tanker
5 Points
1 Point Each
1 Point
A detention ratio
equal
to 1% or less
than 2%
Other operational
control within
the previous 12
months
Gas carrier
3 Points
1 Point Each
2 Points
A detention ratio
equal
to 0.5% or less
than 1%
Casualty within
the previous
12 months
Bulk
cargoship
over 10
years old
0 Points
1 Point Each
1 Point
A detention ratio
less than 0.5%
Violation within
the previous
12 months
Passenger
ship
1 Point Each
2 Points
Not boarded within

the previous
six months
Carrying
low value
commodities
in bulk
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7.2.1
Boarding Criteria and Black Grey White Lists
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Port state control regimes require a procedure to target those vessels most likely to
be below the ISM Code standards. In the US, a Boarding Criteria Matrix, built up
on a points system, takes into account the criteria on the previous page.
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Ships are then awarded a priority rating, running from:

Priority I
17 or more points, or ship involved in a marine casualty, or USCG (US Coast
Guard) captain of the port determines a vessel to be a potential hazard to the
port or environment. Port entry may be restricted until the vessel is examined by
the Coast Guard.
through to:
Priority IV
Three or fewer points on matrix. Vessel will not be boarded.
The results of all PSC inspections are co-ordinated and great efforts are being
made to ensure that the information becomes rapidly available to all port state
control officers. Flag states are ranked by an excess factor that takes into account
the number of vessels within the register and the level of non-conformities.
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The Paris MoU operates a target factor calculator on its website

(www.parismou.org) that takes into account:
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It will be apparent from the information required to operate this targeting system
how important it is that an up-to-date central database is maintained which can
be accessed by all ports within the MoU region.
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The Flag States appearing within the very high risk category of the Paris MOU
2006 Black grey White List are:
Korea, DPR
Albania
Bolivia
Comoros
Georgia
Slovakia
St Kitts and Nevis
Syrian Arab Republic
Honduras
St Vincent and the Grenadines
Cambodia
Lebanon
Brazil
Egypt
Belize
Monacco
7.2.2
Definitions
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Among the more important definitions relating to port state control are:
Port State Control Officer (PSCO)

A person duly authorised by the competent authority of a party to a
relevant convention to carry out port state control inspections, and
responsible exclusively to that party.
Clear Grounds
Evidence that the ship, its equipment or its crew does not correspond
substantially with the requirements of the relevant convention or that the
master or crew members are not familiar with essential shipboard
procedures relating to the safety of ships or the prevention of pollution.
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Inspection
A visit on board a ship to check both the validity of relevant certificates and
other documents, and the overall condition of the ship, its equipment and
the crew.
More Detailed Inspection

An inspection conducted when there are clear grounds for believing that
the condition of the ship, its equipment, or its crew does not correspond
substantially to the particulars of the certificate.
Deficiency
A condition found not to be in compliance with the requirements of the
relevant condition.
Stoppage of an Operation
Formal prohibition against a ship to continue an operation due to an identified deficiency(ies) which, singly or together, render the continuation of
such operation hazardous.
Sub-standard Ship
A ship whose hull, machinery, equipment or operational safety is substantially below the standards required by the relevant convention or whose
crew is not in conformance with the safe manning document.
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It is the task of the PSCO to translate these definitions into an effective inspection which does not unduly delay or detain a vessel that does not fall within the
sub-standard category.
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A port state control visit on board a ship will normally start with verification of the
following certificates and documents:
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Certificates and documents issued in accordance with the provisions of

the relevant instruments;
oil record book;
record of construction and equipment;
international tonnage certificate (1969);
minimum safe manning document;
certificates of competency;
international certificates of fitness for the carriage of liquefied gases in bulk

or dangerous chemicals in bulk (if relevant);
medical certificates (see ILO Convention 73);
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stability information;
cargo record book (if relevant);
if appropriate, class certificates as to the ships hull strength and machinery

installations.
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In addition the PSCO conducts a general inspection of several areas on board

to verify that the condition of the ship complies with that required by the various
certificates.
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If valid certificates or documents are not on board, or if there are clear grounds
to believe that the condition of a ship, its equipment or its crew does not
substantially meet the requirements of a relevant convention, a more detailed
inspection will be carried out.
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If the ship is found to comply, the PSCO will issue a clean inspection report to
the master. Importantly this information is also recorded in the central database.
For the purpose of control on compliance with on-board operational
requirements, examples of clear grounds are, amongst others, the following:
evidence of operational shortcomings revealed during port state control

procedures in accordance with SOLAS 74/78/88, MARPOL 73/78 or
STCW 78/95 and the ISM Code;
evidence of cargo operations or other procedures not being conducted

safely or in accordance with IMO guidelines;
involvement of the ship in incidents due to failure to comply with operational

requirements;
evidence, from the witnessing of fire or abandon ship drills, that the crew
are not familiar with essential procedures;
absence of an up-to-date muster list;
indications that key crew members may not be able to communicate with
each other or with other persons on board.
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Furthermore, control on compliance with on board operational requirements

may be included in the control procedures, particularly if the PSCO has reason
to believe that the crew demonstrates insufficient proficiency in that area.
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Clear grounds for a more detailed inspection are, amongst others:
a report or notification by another authority;
a report or complaint by the master, a crew member, or any person or

organisation with a legitimate interest in the safe operation of the ship,
unless this complaint is clearly deemed to be unfounded;
other indications of serious deficiencies.
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In addition there are requirements for expanded inspections for bulk carriers and
tankers above a certain age and for passenger ships.
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With regard to complaints received from masters or crew members the port state
control authority receiving such a complaint has the obligation not to disclose the
source of information.
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As well as checking that the ships documentation and manning is in order, the
PSCO needs to assess whether the ship and/or crew, throughout its forthcoming
voyage, is able to:
navigate safely;
safely handle, carry and monitor the condition of the cargo;
operate the engine room safely;
maintain proper propulsion and steering;
fight fires effectively in any part of the ship if necessary;
abandon ship speedily and safely and effect rescue if necessary;
prevent pollution of the environment;
maintain adequate stability;
maintain adequate watertight integrity;
communicate in distress situations if necessary; and
provide safe and healthy conditions on board.
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If deficiencies are found, both the central MoU database and the flag state
administration are advised. In principle, all deficiencies should be rectified before
departure. It is up to the professional judgment of the PSCO to decide whether
he has to board the vessel a second time to check if the deficiencies have been
remedied. A ship which is considered unsafe to proceed to sea will be detained,
and if necessary the PSCO can require an operation to be stopped (eg cargo
operations, bunkering) if it is clearly hazardous.
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When a ship has been detained, all costs accrued by the port state will be
charged to the owner/operator, as will the additional port costs. Although detention
is obviously essential in some cases, it does produce obvious problems for the
port involved since this vessel may, unless there are sufficient lay-by facilities,
block commercial berths. There is the opportunity for the vessel to be allowed to
another, agreed port, especially if the deficiencies can be better rectified there.
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An indication of the cause of ship detentions is given by the table on the following
page showing detention deficiencies recorded in the US during 1997.
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Code
Number
Designation
% of
Vessels
Detained
100
Certificates and documents
200
Crew
600
Life saving appliances
19
700
Fire fighting appliances
22
900
Safety in general
13
1200
Load lines
1400
Propulsion and auxiliary machinery
1500
Navigation
1700
Marine pollution
2000
SOLAS-related operational (includes drills)
20
9800
Other
Total
100
7.3
PSC AND THE ISM CODE
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SOLAS Chapter XI incorporates the ISM Code into the ambit of port state control inspections; from 1 July 1998 for tankers, bulk carriers, passenger vessels
and high-speed craft and from 1 July 2002 for other ships over 500 gt. The
advent of the ISM Code offers three effective enhancements to the PSCOs
inspection armoury and poses problems to PSC regimes and the IMO and
international maritime communitys endeavours to pursue the philosophy of
Safer Ships, Cleaner Seas.
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Documentary proof of ISM Code compliance (the dates of the companys DOC,
the ships SMC and, probably, the name of the organisation issuing these
certificates) can be incorporated into the ships notification of arrival papers.
A number of port states are already incorporating into their national law the ability to order ships determined not to be in compliance (no certification) to leave
national waters and not to return until proof of compliance can be provided.
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This takes us on to the core of too much reliance on a reactive system of port
state control to eliminate sub-standard shipping the very ships which, by their
failure to be able to present a legally required SMC, fall into the class of substandard. While refusal of port entry prevents them from, commercially, plying
their trade, they are not removed from the high seas where they may continue
to navigate unsafely, probably with little attention to the need to prevent marine
pollution, until they find a port which will allow them entry.
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PSC is undoubtedly an essential and, mainly, effective weapon in the

elimination of sub-standard shipping. It remains essential that IMO and the
(responsible) shipping nations continue to exert pressure on those flag states
with a poor record to play a (pro) active and effective role in the drive towards
improved standards.
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Another aspect of any safety (or quality management system) which must be
understood there is no quick fix. A safety management system, depending
upon the organisations start state, takes many months of committed effort, both
on board and ashore, to put into place. IMO recognises this in so far as one of
the requirements for certification is that there is evidence of the safety management system having been in operation for three months prior to audit. It is a difficult decision for any port and PSC regime to elect between detaining a vessel
until a safety management system is introduced, inevitably holding the vessel in
port for many months, and sending it back to sea, theoretically at least, in an
unseaworthy state.
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For a ship with a valid SMC, the ISM Code offers very positive assistance to the
PSCO. The first area of inspection is also documentary and focuses on audits,
both third party and internal, and any record of non-compliances. These, or in
the case of internal audits, their absence, will give a good indication of how
effective the ships safety management system is.
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The ISM Codes other great strength is that it is very much a show me code
which can, and should, incorporate all of the crew. Show me, linked to the standard open questions of how, where, when, why will effectively reveal the way in
which the vessel operates and is managed. Show me how you plan your next
passage, prepare to take bunkers or where your fire station is can all be part
of the PSCOs approach.
Consider the US Boarding Criteria Matrix and discuss the
advantages against the disadvantages of this system.
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8.
RISK MANAGEMENT AND FORMAL SAFETY

ASSESSMENT (FSA)
LEARNING OUTCOMES
state what is meant by FSA; and
describe how IMO and in the UK how MCA are looking at FSA
as a means of prioritising the development of regulations.
8.1
RISK MANAGEMENT
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A risk-based approach has been used for a number of years by the nuclear,
chemical and offshore industries and is increasingly being used in the shipping
industry, partly because it is a useful and practical tool at the operational level and
partly because it is being introduced by legislation. European Union regulations
on health and safety require the application of risk assessment as discussed in
section 4.2. and risk management is implicit in the application of the ISM Code
(Chapter 6). Furthermore, IMO is exploring the potential for using the risk-based
approach for managing international legislation and this is discussed in this
chapter. The intention here is to give an overview of the risk management tool kit,
so that the marine surveyor can understand its application and consider its use
as a powerful management tool for his own professional work.
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The application of risk management techniques ranges from relatively complex

mathematical modelling to applied common sense and therein lies part of its
problem. At one end of the scale it is too complex for the untrained practitioner
and at the other, because it is so straightforward, it can be difficult to explain
because . . . it is so like common sense. It is perhaps best thought of as a
management discipline which will improve decision-making, providing an
invaluable tool box of techniques which can support the proficient manager. Risk
management is closely aligned with planning if the manager takes time to plan
he can use risk management effectively.
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To understand the formal process of risk assessment and risk management it is

essential to understand the difference between hazard and risk. This is best
done by illustration. Assume a vacuum cleaner safely stowed in a locker. It is in
the public area of a ferry, or passenger ship, and there is little risk of any harm
or injury.
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If the vacuum cleaner is left unattended, outside its locker and with a trailing
lead, the likelihood of an accident increases in terms of frequency, although the
consequences are not likely to be serious.
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Risk Management and Formal Safety Assessment (FSA)
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If the vacuum cleaner is being used with its flex stretched across the floor of a
public area, the risk of an accident is even higher and the possible injury more
severe a broken arm or badly twisted ankle. Assume that the flex leads across
the steps down to the dining saloon now the potential seriousness of an
accident is heightened, even to the possibility of a fatality.
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If the steward is late in his work and the vacuum cleaner is in this position as lunch
is announced, both the probability as well as the severity of an accident will be high.
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There is little doubt that in the last scenario the vacuum cleaner is the hazard. It
is however the same vacuum cleaner and the same hazard as when it was
stowed in its locker. It is the level of risk that changes. This understanding is
critical when concerned with hazard identification, the first step in the risk
management process. The five commonly defined steps in the risk management
process are:
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Step One Hazard identification (HAZID)
Step Two Risk evaluation or assessment
Step Three Development of risk management plan
Step Four Implementation
Step Five Risk monitoring
This section will explore the first three steps using the approach which parallels
the formal safety assessment process described in section 8.2.
Hazard Identification
This is the essential first step and is often the one which causes the most
difficulty because it calls for time, commitment to the process and planning. In the time pressured life of a ships officer or a marine surveyor, it is
easy to commence at Step Two the evaluation of risk based on the
assumed hazards. To be effective time has to be allocated to the consideration of all relevant hazards and herein lies much of the strength of risk
management the avoidance of we didnt think about that.
Hazard identification (HAZID) is probably best undertaken using a controlled brainstorming session; it is an area where lateral thinking can be
useful and where everybodys opinion is relevant. The hazards are often
better understood by those who undertake the work rather than those who
manage it. Some of the more formalised HAZID techniques are described
briefly on the following page.
(i)
Hazard and Operability Studies (HAZOP)

This methodology involves a structured, systematic and comprehensive examination of installation/facility layouts and procedures,
activity descriptions and/or process flowsheets. The study is usually
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undertaken by a multi-disciplinary team who are familiar with the

process under an independent chairman. HAZOPs have the benefit
of being particularly appropriate for identifying hazards in soft systems involving activities and operations.
(ii)
Failure Mode and Effects Analysis (FMEA)

Again a systematic approach, usually undertaken by small teams,
undertaking a bottom up process, beginning with a system component and looking at the effect on the overall system. This may well
result in a range of possible effects from a single failure. Thus a
FMEA may examine component failure in a cooling water pump and
at a different stage, the effect of pump failure on the machinery plant.
Above that there is the effect of machinery failure on the vessel as a
whole. FMEA is mainly applicable to hard (or hardware) systems
and can, for example, have a beneficial influence on the selection of
ships.
(iii)
Structured What-if Techniques (SWIFT)

What if is probably the most important question in the whole field
of safety management. SWIFT is a group brainstorming based
around a prepared hazard checklist, considering unplanned deviations from normal operations.
Risk Assessment
Here, form and evaluation is given to the hazards, they are assessed as
risks and their consequences identified. There are both qualitative and
quantitative methods of evaluating the risk posed by the identified hazards
and the process involves considering the likelihood of occurrence in combination with their consequences. This information can then be ranked in a
matrix of likelihood against consequence. Again, a simplified example of
this can be to consider the risk of accidents to pedestrians crossing a road.
In a city centre street many pedestrians cross at random rather than waiting at a controlled crossing point, but since the speed of traffic is fairly low
the pedestrians can normally avoid being hit by cars. However, since there
are a lot of both cars and pedestrians the number of accidents will be correspondingly high although the injuries incurred will generally not be too
serious. At the other end of the scale, few people attempt to cross a motorway or autobahn on foot so the frequency is low but, due to the speed of
the traffic, if there is an accident the consequence is serious. A typical
ranking scale is shown on the following page.
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From this scale, a risk matrix would appear as depicted on the following page.
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The risk matrix gives rise to a fundamental concept of risk management, the fact
that all risks cannot be avoided. Thus there is an area of risk where the level of
risk is unacceptable (something must be done) and an area where the level
of risk is tolerable and tolerated. Between these areas is the region where risk
is As Low As Reasonably Practicable (the ALARP region). Risk management is
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about moving from the region of unacceptable risk into the ALARP area as cost
effectively as possible.
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In order to do this it is important to know the cause and effect of the incidents of
risk and two techniques which are commonly used to assist this process are:
(i)
Event Tree Analysis (ETA)

These use inductive, forward-looking reasoning commencing with an initiating event. Event trees tend to use a true/false logic and give a good pictorial display of event sequences. A range of outcomes can be
accommodated on one event tree and a given outcome can be the result
of more than one event tree sequence.
(ii)
Fault Tree Analysis (FTA)

The basic process in the techniques of fault tree analysis is to identify a
particular effect or outcome from the system and trace this back into the
system along the logical routes to the prime cause. FTA works backdown after an accident or unwanted failure has been identified ie EFFECT
CAUSE mainly using AND/OR logic gates.
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Thus it can be seen that ETA feeds forward from a given event whilst FTA works
backwards from that event giving a detailed analysis of cause. An example
where these techniques could be useful to a surveyor might be in the event of a
vessel with a problem which could take it outside its class or other survey
condition. Can it be safely accepted to sail to a more suitable port for repair?
a common request with which a surveyor will have to deal. The surveyor will want
to know what caused the problem, for example was it an isolated incident or was
it symptomatic of more serious problems? Equally, it is essential to know the
possible consequences which might flow from the defect if the vessel is allowed
to sail. While risk assessment does not provide the answer, the processes
improve the ability to select the best solution.
Risk Management
When the risk has been assessed, its cause identified and its potential
consequence identified, it is time to look at ways of controlling or avoiding the
risk and/or its consequences. There are four main ways of doing this:
Terminate
Either by eliminating the potential for the event to occur or removing the exposed
personnel. An example of elimination in the shipping industry might be to stop
trading in certain areas or with certain types of vessel an approach explored
by some of the major oil companies with regard to transportation of their own
cargoes on their own vessels.
Transfer
One of the most common approaches is to take out insurance to cover the
potential losses, probably not a viable or tenable solution on its own. Another
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form of transfer can be found in the charter market, and again the example of
the oil majors transferring the risk (of oil pollution) by chartering third party
tonnage is a good illustration.
Tolerate
By considering the risk acceptable if it cannot be reduced further in a costeffective manner. This has major implications in the area of personal safety and
the promotion of a safety culture. Just as it is common to tolerate the crossing of
the road without walking 100 metres to the pedestrian crossing, so many people
working at sea tolerate potential danger of not wearing the proper safety
equipment or using proper procedures.
Treat
By identifying reduction measures with the ideal being to lower the frequency of
the accident first and to reduce the consequence second. This can be a most
cost-effective approach because the cause can often be addressed by improved
procedures and through improved education and training. The ISM Code can be
described as falling within this solution.
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A key element in the process is the economic assessment of the preventative

action against the potential consequence. A cost benefit analysis is frequently
used in order to compare the various solutions. The assessment of benefit or at
least its translation into a comparative monetary value requires a degree of
subjective judgment, and it is here that consistency is particularly important. It is
difficult enough to agree on the value of the environment in a single, relatively
cohesive social group (consider the inquiries into new road building schemes
and the strong protest against cutting woodland to allow way for the new road).
It can be much more complex in a supra national context where the value
attributed to life and liberty may vary dramatically.
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Once a risk control method, or more usually, a package of measures has been
identified, assessed and selected, the next stage is implementation. This needs
to be handled with a degree of forethought and planning since frequently it will
involve change. Change needs both planning and managing. In addition the
effect will need monitoring and this may be a complex process since the
implementation may change more than one parameter. Nevertheless risk
management, whether it is simply a technique used when addressing
operational problems in management or a safety case designed to assess safety
measures in a complex offshore unit, is a valuable discipline which more than
any other can prevent or help to cope with the unexpected.
8.2
FORMAL SAFETY ASSESSMENT
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The FSA approach differs from the safety case approach in that its intention is
to provide a generic approach across the whole field of safety legislation rather
than address a specific operation. Thus, the approach proposed to IMO by the
UKs Marine Safety Agency (now part of the Marine and Coastguard Agency
MCA) takes a generic approach to vessel operation and to those involved in and
affected by its operation, either directly or potentially.
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The benefits of adopting FSA as a regulatory tool within IMO were outlined in
MSC/65/24/2 and include:
a consistent regulatory regime which addresses all aspects of safety in an

integrated way;
cost effectiveness, whereby safety investment is targeted where it will

achieve the greatest benefit;
a pro-active approach, enabling hazards that have not yet given rise to
accidents to be properly considered;
confidence that regulatory requirements are in proportion to the severity of

the risks; and
a rational basis for addressing new risks posed by ever changing marine
technology.
In developing the methodology, several studies were carried out to define

comprehensive generic approaches to the methodology as follows:
those features, characteristics and attributes of ships and shipping common to the operation of vessels engaged in international trade;
those people, organisations, countries or other entities affected by the

risks associated with international shipping and having a stake (financial,
personal safety, environmental or a combination) in shipping which may be
affected by such risks or by changes in regulations affecting these risks
(see Stakeholders below);
the range of accident types which could impair generic ship or shipping
functions (FSA Step One Identification of Hazards); and
various underlying risk exposure sources from which life-threatening

hazards may develop (FSA Step Two Risk Assessment).
This resulted in the identification of 14 generic ship functions which consider the
full life cycle of the generic ship. This starts with conceptual design, including all
operational stages in port, on passage and in dry dock as well as
decommissioning and disposal. The generic ship functions are:
Mooring/towing
Payload
Bunkering/storing
Navigation
Emergency response/control
Communications
Habitable environment
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Manoeuvrability
Power/propulsion
Stability
Pollution prevention
Anchoring
Structure
Others
Equipment and system categories have been defined (eg control, human,
management, machinery, safety etc) and hazardous substances, ignition
sources and hazards to personnel have been identified. The generic ship
encompasses all aspects of international shipping affecting safety of life.
Generic ship definitions are also used to assist in the identification of hazards,
underlying causes, risks and risk control measures as well as identifying the
parties benefiting from and being put at risk by the shipping venture (the
stakeholders).
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The concept of stakeholders is particularly important at the stage of cost benefit

analysis where the (conceptual) objective is that:
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The principal stakeholders in the shipping industry are taken to be:
Designer/constructor
Flag state
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Cargo owner
Crew
Passengers
Coastal state
Crew provider/trainer
Classification society
Owner/charterer operator
Port of call
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Port state
Other vessels
Others
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Examples of stakeholder costs, benefits and risks are:
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The generic accident categories have been identified which could impair the
function of the generic ship. These generic accident categories are used as an
aid to the hazard identification process (FSA Step One) and, in alphabetical
order, they are:
Contact or collision
Explosion
External hazards
Fire (flame, heat, smoke and fumes)
Flooding
Grounding or stranding
Hazardous substances
Loss of hull integrity
Machinery failure (computer, equipment and system faults)
Payload related
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In FSA Step Two, Risk Assessment, preliminary and unquantified fault and event
tree analysis resulting from Step Ones hazard identification and screening are
developed into a risk contribution tree from which risk control options are
identified within FSA Step Three. These options are then subjected, within FSA
Step Four, to a process of cost-benefit analysis, mainly based around standard
net present value calculations, which generates a cost per unit reduction in risk
(CURR). Benefits from risk control options which can be valued include
reductions in losses or damage to vessels, cargo and infrastructure, reduced
environmental clean-up and reduced loss of environmental amenity. Other
benefits, such as reduced ecological damage (say, from improved flue gas
emissions) are more difficult to value. They may be taken into account in FSA
Step Five, the decision-making process.
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Another area which causes some difficulty is finding a universally acceptable

benchmark for the value of injury or loss of life and this has yet (1998) to be
satisfactorily resolved. The philosophy underlying Step Five, Decision Making,
may, unofficially, be described as a pro-active approach to maritime legislation
which pre-empts media-driven reactions to major marine casualties and
achieves an equitable cost/benefit balance for all stakeholders. The main steps
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involved in examining various risk control options as solutions to the various

safety problems, identified in FSA Steps One and Two, are as follows:
prioritising IMOs work programme to identify areas where regulations

should be reviewed and developed, using input from FSA Steps One and
Two;
focusing data collection on the basis of needs identified from other FSA
steps;
deciding between alternative risk control options;
examining the effects of proposed regulatory changes on stakeholders

costs and benefits; and
reviewing the basis and framework of rules for the future (eg balance
between goal setting and prescription).
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There is still more work to be undertaken before FSA can be used as an

effective tool within the IMO armoury of weapons for improving safety.
Nevertheless, there is little doubt that risk appraisal and risk management has
an important role to play at all levels of the shipping industry, including within the
everyday management of ship operations.
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The increasing use of risk-based as opposed to prescriptive legislation will

undoubtedly affect the ways in which marine surveyors work and new skills will
have to be learnt. An example of this is the recent decision by the International
Association of Classification Societies (IACS) to start applying FSA techniques,
where possible, in IACS working party tasks. Thus IACS will give training to the
chairmen of working groups and this appears to be a valuable step in
implementing FSA at a level nearer to the operational level and also in
contributing to a common standard of application across the member
classification societies.
Carry out a risk assessment of a day in your life.
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PART TWO
MARINE SURVEYING PRACTICE
Having discussed the marine industry in general terms in Part 1, the second part of this
module focuses more on the work of the individual marine surveyor in general. Of course,
the range of activities carried out by Marine Surveyors is so diverse that each subject
cannot be covered in depth in this module. Whilst each student should focus on their
individual disciplines, it is important to have a general all-round knowledge of the tasks
undertaken by all types of marine surveyors.
International shipping is a competitive industry and while there should be encouragement
to improve efficiencies and reduce costs, this should never be done by reducing safety
standards. Marine surveyors should be aware of the international and national laws that
are in force to ensure that minimum standards are maintained. As shipping is international,
there is a requirement for international agreement on those standards and these are set
by the International Maritime Organization (IMO). Amendments to existing conventions and
indeed new conventions are continuously being debated and will be applied by all administrations to create a higher standard of operations in the shipping industry. Concern over
structural problems has prompted the IMO to consider introducing goal-based standards.
This concept will not reduce the essential role of classification societies which is to approve
the design of ships and machinery as well as surveying them to ensure they are correctly
maintained to prescribed standards. However it is intended to focus the mind of naval architects and ship builders to produce ships that are fit for purpose over their intended life.
The marine surveyor has a responsibility to help the industry see that these standards are
reached and maintained.
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9.
MARINE SURVEYORS, SURVEY

ORGANISATIONS AND HOW TO
DEFINE THEM
LEARNING OUTCOMES
outline the various types of survey carried out in the marine

industry;
compare the different types of work carried out by marine

surveyors;
recognise the various organisations involved in marine

surveying; and
define the meaning of the term marine surveyor.
9.1
TYPES OF SURVEY
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Marine surveying performs an essential role within not just the shipping industry
but also within the whole logistic link between buyer and seller. As such, it has
many customers and the product that the marine surveyor or surveying company
will deliver will be crafted to meet the requirements of the surveyors principal. For
professional surveyors this can frequently mean that they are called to make a
judgment between the requirements and objectives of their principal and their
professional integrity and the facts that are revealed by their survey.
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Surveys can range from the predominantly factual to those that are based
largely on the surveyors professional interpretation of a range of what may be
far from complete facts and evidence. It is important, in preparing for a survey,
that surveyors are aware of the type of survey which they are about to
undertake. In Part One (Section 5.1) the differences between inspection,
surveys and audits were explored. Here, the focus is on the purpose of the
survey in so far as it dictates the approach which the surveyor will need to take.
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At one end of the scale is the factual survey. A documentary survey is a prime
example of this either the documents are in place, valid and in date, or they
are not. There is little room for negotiation and here a parallel can be drawn with
the examination of documents undertaken by the confirming bank in a
documentary credit transaction (Part One, Chapter 1). Here, the printed and duly
authenticated word is all.
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Surveys against precise specifications, such as hull and machinery surveys

against statutory or classification rules, are another area where precise and
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Marine Surveyors, Survey Organisations and How to Define Them
factual surveys can be achieved with evidence frequently being available from
precise measurements such as, for example, ultra-sonic measuring equipment.
Here, the variable element arises from the extent of measurement which the
surveyor is able to undertake within the constraints of the time and resources
available to him. Even if the minimum percentage of measurements required is
specified, problems of access and the surveyors experience and professional
ability to concentrate resources on the critical areas or aspects will directly affect
the quality of the survey.
Figure 2
Lloyds Register Surveyor Overviewing a New Building at Daewoo Shipyard
in South Korea. March 2002
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Cargo surveys are another example of surveys where, although precise survey
requirements may be stated, the dimension of the task and often the very
quantity of material to be surveyed means that the quality of the survey depends
upon the surveyors ability to base the resultant report on a truly representative
selection of discrete samples.
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As the surveyor moves closer towards an audit of performance, such as in the

case of an ISM Code audit, so value judgment, backed by experience, plays an
increasing role. To take an obvious example, even if a vessel is able to lower and
launch a lifeboat in port, or don and deploy fire fighting equipment, to what
extent does this mean that the crew could fight a fire effectively or rescue a man
lost overboard?
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The other important element which the surveyor must always bear in mind is
the quality of the evidence on which he is basing his findings. Is, for example, the
document which he is checking an original, a true photocopy or to a greater or
lesser extent, modified or fabricated? In the case of electronic or mechanical
measurements the surveyor needs to know how well the equipment is calibrated
and how accurately it is functioning in the (often adverse) conditions of the
survey. Finally, there is the evidence and information provided by the people
involved ships crew, stevedores, etc. The surveyor must develop his or her
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abilities to evaluate the human input and to penetrate beyond the evidence that
may be first presented. Open questioning, the how, when, why, where and who,
is critical to this aspect of a surveyors task and should be practised and
developed just as one practises and develops ones ability to use the other tools
of ones trade.
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In recent recorded history we can trace the work of the marine surveyor through
Classification Societies for well over 200 years. They were first conceived in
London when it became apparent that cargo owners and underwriters had no
knowledge of the condition of the ships to which they were committing their
goods and commercial future. The first Register of Ships encompassed simple
details of the ship, its builder, owner and master, backed by rules for the
construction of wooden hulls and equipment. The rules have evolved from sail to
steam to diesel power and from wood to iron to steel. The rules have been
developed continuously from that day into the present sophisticated rules and
regulations of the 10 main class societies today. These rules have traditionally
addressed the hull structure and the essential engineering systems
machinery, piping, electrical and propulsion. Thus, even before the turn of
the 20th century, when various national administrations first contemplated
statutory legislation concerning the safety of life at sea, the classification rules
for these fundamental items of ship safety were already well established.
Unified Requirements are adopted resolutions on matters directly connected
to or covered by specific rule requirements and practices of classification
societies and the general philosophy on which the rules and practices of
classification societies are established.
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Subject to ratification by the governing body of each member society and

associate, Unified Requirements shall be incorporated in the rules and practices
of the member societies and the associates, within one year of approval by the
IACS Council. The existence of a UR does not oblige a member society or an
associate to issue respective rules if it chooses not to have rules for the type of
ship or marine structure concerned.
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Until the last decade of the 20th century, marine classification societies were
almost solely involved in design and maintenance of the structure of ships,
responsible for development, maintenance and application of rules for hull and
machinery. The Classification Societies in general directly employ their own
marine surveyors to carry out the periodic surveys.
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However, the principal jurisdiction, responsibility and duty for the enforcement of
technical regulation pertaining to ships lies with the maritime administrations
under which a ship is registered, or as they are more popularly called, the flag
states. The role of the flag state, as defined under UNCLOS relating to technical
matters, is clearly defined under Article 94, on the construction, equipment
and seaworthiness of ships. 164 flag states have delegated the making and
publishing of international regulation to the International Maritime Organization.
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IMO is, therefore responsible for development and maintenance of marine safety
regulations. However, the application of IMO legislation now is mainly delegated
to classification societies as few national administrations have the resources or
international network to perform the necessary periodic inspections to ensure
continual compliance with international convention requirements.
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It may be argued that the maritime industry is not a proactive one and only
reacts to disasters. It is generally accepted that the sinking of the Titanic and the
resulting high cost in human tragedy caused the authorities to take the
necessary action to prevent this happening again. The outcome was what we
now know as the Convention for the Safety of Life at Sea (SOLAS).
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SOLAS is the most important of the IMO conventions dealing with safety at sea and
will be dealt with in detail in Module 8. Since its adoption in 1914, there have been
four more conventions and the current convention was adopted in 1974 and entered
into force in 1980. However, SOLAS is dynamic and amendments are being added
all the time. Two important recent additions to SOLAS have been introduced the
ISM Code and the International Ship and Port Facility (ISPS) Code.
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A new Chapter IX of SOLAS 74 on Management for the Safe Operation of Ships,

entered into force on 1 July 1998, making the ISM Code mandatory to all vessels
that fall within the SOLAS convention requirements.
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In response to the terrorist attacks of 11 September 2001, and the perceived

risks to ships and the danger of ships being used for terrorist purposes, IMO
modified the SOLAS requirements to include security. The new amendments to
SOLAS included a new Chapter XI-2 to address ship security. From this
developed the ISPS Code.
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The introduction of the ISM Code brought about a fundamental change in the
work of Classification Societies and their surveyors. The implementation and
audit of the ISM code was delegated by most flag states to Recognised
Organizations to carry out the audits ensuring that ships and shipping
companies were adhering to the ISM Code. Recognised Organisations are in
almost every case classification societies. As there is a fundamental difference
in the approach to surveying structure and equipment on the one hand, and
auditing a system that is working on a ship this meant a major change in the
responsibilities of Classification Society Surveyors. From 2004 the role has
further expanded with Classification societies accepting the added responsibility
of auditing the ISPS Code.
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Whilst the classification societies have a large and important place in the
surveying of ships, the flag state authority retains its pre-eminence, and will
often maintain its own survey department with competent surveyors
Furthermore, ships are also subject to the control of port states. Referred to as
Port State Control (PSC), its authority is codified under UNCLOS Articles 94(6),
218(1) and 219.
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For further information on the role of PSC you may wish to refer to Appendix 2
of the module. In addition, the IMO conventions clearly refer to PSC, for example
in SOLAS Chapter I, Regulation 19(a) which states that:
every ship when in a port of another party is subject to control . . .
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Many PSCs around the world co-operate at a regional level by belonging to a

group that adheres to a memorandum of understanding (MOU). For example, in
Europe there is the Paris MOU.
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Figure 3
US Coastguard Inspecting a Vessels Machinery Space for
Potential Security Risks
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One of the strengths of PSC Is that it provides a check on the system, providing
much statistical evidence of substandard practice and of stakeholders
associated with such practice. However, despite the growing strength of PSC it
has its limitations, particularly with regard to the technical aspects of shipping.
The time available for inspection is limited and, unless sufficient clear grounds
can be found, ships pass through the PSC net quickly with a review of
documentation and a relatively superficial inspection. The penalty imposed for
failure to meet the appropriate standard is limited to detentions while any defect
is corrected in general punitive measures have not so far been applied.
9.2
SURVEYORS AS POLICEMEN
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Although it is not a term that many surveyors like to call themselves, in the case
of surveyors acting for classification societies, Flag and Port states, it is a term
that best describes their role. The laws of the industry have been clearly
established, so the surveyors are there to ensure the players keep to the rules.
As there are those who do not always abide by the rules, so there are penalties
against the lawbreakers.
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When a country becomes a signatory to an international maritime convention it is

obliged to enact its own national legislation to bring its provisions into effect.
Amongst other things it undertakes that its ships will be built and operated to the
requisite standard. However not all national legislation is the result of international
conventions. In order to ensure compliance with such regulations it is necessary
to use surveyors to carry out regular surveys. However, tasks traditionally carried
out by government surveyors are, more and more, being carried out by class
surveyors in order to reduce government expenditure, with government surveyors
now being largely used to audit the work of class surveyors and others. However
the policemans role is not the only responsibility that marine surveyors undertake.
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9.3
SURVEYORS AS FACT FINDERS
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By the very nature of the maritime industry, those with a vested interest in ships
and the work they do rarely have the opportunity to see for themselves the
conditions or circumstances that may affect their interests.
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An interested party whom we will call the principal, may employ the services of
a marine surveyor to represents the principals interests. The marine surveyor
becomes the eyes and ears of the interested parties and using his or her skills
will report on the facts as they are found.
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It is essential here to understand that in the role of Marine Surveyor, the principal
does not seek opinions unless specifically asked. As will be explained later a
marine surveyor must be careful if he or she expresses those opinions.
Fundamentally the role of surveyors is to carry out the survey and report on its
findings. They should not assume otherwise unless instructed otherwise and if
any doubt exists they should always clarify their instructions in writing before
commencing each new assignment.
9.4
MARINE SURVEYORS AS ADVISERS
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There is a different responsibility that a principal may seek from a competent

marine surveyor and that is as a consultant. There is an EU directive concerning
the requirements for a consultant and we would define a consultant as: A person
who uses his or her particular skill and expertise (based on established
competence of ships, boats, cargoes and the sea) to give an opinion on the
condition of any ship, cargo or thing appertaining to ships, cargoes and their
respective environment.
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The clearly stated difference between a surveyor and a consultant expressed in

the EU directive does not apply in many parts of the world where there is no
such clear line of demarcation.
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In general we may be prepared to accept that a surveyor is, or may be, expected
to express an opinion on his observations where appropriate. EU surveyors
instructed by principals based outside the EU would be wise to check their
principals expectations in this respect.
9.5
MARINE SURVEYORS ACTING IN THE OWNERS INTERESTS
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This may happen on a number of occasions but a common occurrence is for the
attendance of the owners representative during building or major repairs. For
the convenience of both owner and builder (and for the protection of the owners
interests) it is important to have the attendance of an owners representative at
the shipyard and the engine works during the term of the actual construction of
both ship and main engine, to monitor the work of construction.
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This also ensures a ready channel of contact between the owner, the shipyard
and the engine works, and the Class Surveyors in attendance. How this is to be
arranged will be a matter for discussion between the consultant, owner and
builder. While there may be a reluctance on the part of owners accountants
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(and on the part of the builders!) to accept the necessity of this requirement it is
a matter of technical prudence, and it also has economic advantages in
minimising risks of costly delays, etc. Efforts to dispense with such
arrangements should be resisted on financial and technical grounds. Many
occasions will arise during the course of development and construction in which
prompt technical decisions will be required, and resident representatives will
either be able to deal with these themselves immediately, or if not, will be able
to obtain prompt attention from the consultant or owners technical staff, thus
preventing costly delays, and also misunderstandings, which might later lead to
expensive legal consequences.
9.6
SURVEYORS AS AUDITORS
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It has already been stated that the Classification Societies as Recognized

Organizations normally carry out the external audits for the ISM code. However,
there are opportunities for surveyors to act for and on behalf of classification
societies and they may also be called to act as internal auditors for shipping
companies.
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It is important to understand that the auditing process is not the same as

carrying out a survey. A good auditor is able to communicate and be empathetic
towards the auditee in a helpful although judicious manner. The auditor must be
able to keep control of the audit and cause the least disruption to the normal
operation. The auditor can give guidance but should not make recommendations
to ship or its owner. Any corrective actions to non-conformities must be in
accordance with the companys own policy.
9.7
THE MARINE SURVEYOR AS AN EXPERT WITNESS
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Marine surveyors are on occasions invited to act as expert witnesses in a court

of law. However strong you may feel about your professional judgment, an expert
witness must be prepared to face tough cross-examination. This requires skill
and should the invitation be offered for the first time, a potential expert witness
should seek advice from those who have had a good track record of handling
this particular skill.
9.8
THE TRADITIONAL SOURCE OF MARINE SURVEYORS
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Traditionally, the vast majority of marine surveyors may be grouped into five
categories, each having distinct disciplines. These may be grouped as
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Naval Architects
Marine Engineers
Nautical or Deck Officers
Commodity Specialists
Other Specialist Surveyors and Auditors
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However, in recent years, mainly due to the fact that there is a global shortage
of experienced mariners being available to work ashore, there is a growing
number of people who are using their particular work experience to practise the
role of marine surveyor. This is especially true in the rapidly growing pleasure
craft industry.
9.8.1
Naval Architects
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Having gained the necessary university qualifications, and the shipyard experience
in ship design, naval architect surveyors are mostly found in classification societies
or other authorities mainly concerned with vessel design and performance. Often
their key role is to carry out plan approval for both new buildings and major
modifications. So you may question whether naval architects do act as surveyors
in the practical sense. In fact they do where their expertise is appropriate.
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In recent years, in Lloyds Register of Shipping for example there has been a
move away from differentiating between kinds of surveyors by name and all are
simply now referred to as surveyor, senior surveyor or principal surveyor.
Care is taken to record their experience to ensure that they are not assigned to
work which is outside their competence.
9.8.2
Marine Engineers
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Where hull and machinery surveys are undertaken, the marine engineer has
generally been the most likely source. The background experience, as with most
nautical surveyors, has also been principally that of the mercantile marine and
usually, but not always, these surveyors hold a certificate of competency as chief
engineer. Ex-naval engineer officers are sometimes to be found amongst their
ranks.
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As previously mentioned, with the reduction in the fleets of the traditional seafaring
nations there has been a need to turn more to university engineering graduates,
and the larger classification societies now carry out significant training within their
organisations to make up for the lack of practical seagoing experience. Historically
marine engineer surveyors have been the flag states primary source of surveyors.
9.8.3
Nautical or Deck Officers
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Deck officers in the mercantile marine and, to some extent, from the ranks of naval
officers have traditionally provided professional expertise for nautical surveyors.
The traditional, but by no means mandatory, qualification for a nautical surveyor is
a masters certificate although, in some cases, others with a sound knowledge of
the subjects in the syllabus for senior deck officers qualifications may have the
necessary skills provided they have had adequate experience too. The subjects
which comprise the majority of nautical surveys require experience with
navigation, seamanship, ship handling, fire and life-saving equipment, weather
and sea conditions, the carriage of cargo and the environment. Nautical surveys
often extend beyond the purely physical examination of ships and cargoes and
involve a study of the wider aspects of ship operations.
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9.8.4
Commodity Surveyors and specialist Cargo Surveyors
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The complex and vast range of todays cargoes include chemicals, dangerous
goods, the food chain, chilled and refrigerated cargoes and so on will frequently
need a surveyor with knowledge of particular cargoes and commodities.
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One of the particularly strange results of the rapid development of containerisation

is that nowhere in the world is there a qualification for the competent stuffing of
containers. When a container arrives at the terminal it is accepted as a box
which is said to contain certain items. How those items have been stowed and
whether or not sufficient protection for the cargo has been made is left to
chance. The problem is that stuffing a container on dry land for road or rail
transport does not mean that the container is prepared for the movements on
board in bad weather, the potentially large changes in climate and the
environmental elements containers, particularly those on deck, have to meet.
Claims against cargo damaged in this way have been growing and are a large
percentage of payments to shippers. P&I clubs in particular are beginning to
address this problem by having containers inspected at the stuffing stage.
9.8.5
Other Specialist Surveyors
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In the last few decades major changes to the propulsion of ships and the fitting
of complex machinery and electrical and electronic equipment requires
specialist surveyors in these areas. In the principal shipbuilding and repair
countries such surveyors are often likely to be employees of government
agencies and classification societies but elsewhere they may be more widely
employed in industry and only involved as surveyors when there is a specific
need for their services.
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The ISM Code and, more recently, the ISPS Code have seen a need to have
expertise in the style of quality assurance specialists available to the industry.
This applies both to the external auditors and the shipping companies that wish
to avoid the costly possibilities of their ships being found non-compliant,
Compliance has required suitably qualified and experienced persons to be
trained to carry out these audits which must be considered under the general
heading of marine surveys.
9.9
INDIVIDUALS AND COMPANIES WHO ARE NOT CLASSIFCATION AND

GOVERNMENT SURVEYORS
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The majority of the worlds surveyors fall into the category of independent or
specialist surveyors; that is to say, they are not employed by governments or
classification societies.
9.9.1
Individuals
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Many surveyors are self-employed and work on their own, without corporate
support other than secretarial, and do not belong to any commercial
organisation. They are frequently sole operators and their principals are often
involved in only a restricted geographical region. Many are cargo surveyors, but
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other fields have attracted them too. Some who have made successful careers
in surveying as sole operator do not aspire to building larger businesses and
they often prefer not to lose some of their identity by becoming members of a
larger surveying company.
9.9.2
Companies
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There are a number of international surveying companies. There are also many
national ones in the larger countries which have strong import and export trades
or shipbuilding industries. These range from those employing a substantial
number of surveyors to the smaller ones with only two or three. Generally the
larger companies will offer a wide range of surveying services and will have
surveyors on their staff who are able to cover a variety of survey work.
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Cargo Surveys. While local surveying companies provide an essential service,

international trade relies heavily on large, international surveying companies.
These are companies which can establish the quality (and quantity) of a diverse
range of natural and manufactured products to a common standard across the
trade routes of the world. Very specific specialisations are required to provide the
necessary range of service with some of the obvious examples being hydrocarbons and chemicals, perishable products and agricultural produce, edible oils
and fats, steel and manufactured goods. The scope of the survey requirement
may be wide too, incorporating a requirement to undertake the survey work, not
just on shipment or discharge, but at its point of origin, be it field or factory, and
at destination.
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Operational Surveys. The term operational survey is used to encompass the

extensive range of surveys which are required before an operation is
undertaken. One example of this is the hold or tank survey needed before a
vessel may commence loading or discharging. Another, now very significant,
area of survey work revolves around the survey requirements prior to such major
operational activities as moving drilling regulations or floating out platforms in
the exploration and production of oil and gas offshore.
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Insurance Surveys. There are two areas that fall under this general heading. The
first is the condition survey required, sometimes by hull and machinery insurers
but increasingly frequently by protection and indemnity associations (P&I clubs).
Especially in the case of P&I club condition surveys, these can be exceedingly
wide-ranging and cover both the fabric of the vessel from an operational
viewpoint (eg are the hatch covers watertight?) to the surveyors view of the
crews ability to operate the vessel not just safely, but efficiently too.
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An extension of the condition survey is the increasing requirement by major

charterers for companies and their ships to meet the charterers operational
standards before being accredited as suitable for charter.
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The other aspect of insurance-related surveying is the claim survey. Again, this
can be diverse, ranging from a personal injury accident through a wide variety
of cargo claims to claims for structural damage by third parties or the elements.
Particularly when undertaking surveys in this area, the surveyor needs some of
the investigatory abilities of a good detective.
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On and Off-hire Surveys. This is an interesting and active sector of the market,
which is the stock in trade of many, if not most, surveying companies. A particular
aspect of these surveys is that they make a pair that will inevitably be separated by
time and probably by principal (with the charterer appointing the on-hire surveyor
and the owner the off-hire surveyor). It is important for the on-hire surveyor to
understand that that survey report will be used as the basis of a comparison with
a second report prepared at a different time and in a different place.
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General Average. This is an area of surveying where a marine surveyor may be

employed over an extended period in order to monitor and record the series of
operations necessary to minimise loss. Here a surveyor will not just be an external
observer, but can become an integral part of the operating team, acting either for
an underwriter or the average assessor. A description of the process of general
average is given in Chapter 11 of Commercial Management for Shipmasters.
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Salvage. Hull underwriters, especially those at Lloyds, rely primarily on the

London-based Salvage Association surveyors in the event of a major casualty.
One of the interesting aspects of this area of survey work, apart from the need
for an understanding of the operation of Lloyds Open Form (LOF 1995), is an
understanding of the concept of sue and labour and the mitigation of loss. The
insureds responsibility to take such reasonable actions as necessary to reduce
the impact of a loss or potential loss is an underlying principle of all insurance
which comes strongly to the fore in the event of a major accident.
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This review of some of the different aspects of marine surveying is neither formal
nor fully comprehensive but is intended to illustrate some of the range and
challenge offered by the profession. It is important that the prospective surveyor
thinks hard about his or her skills and aptitudes against the background outlined
here, when deciding upon which areas to focus their expertise and in choosing
the type of company with which he or she could most satisfactorily work.
9.10
DEFINING A MARINE SURVEYOR
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To conclude this chapter, in which we have considered a vast range of types of

surveyors and the various reasons they may be employed, let us try to define a
marine surveyor. If we refer to the Concise Oxford Dictionary we will find:
(a)
A surveyor is defined as:

(i)
(b)
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official inspector, person professionally engaged in surveying.
Survey is defined as:

(i)
let the eyes pass over, take a general view of form, general idea of
arrangement and chief features of: examine condition of, collect by
measurement etc all facts needed for determining the boundaries,
size, position, shape, colour etc;
(ii)
general view, casting of eye or mind over something; inspection of

condition, amount etc of something, account given as a result of this.
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(c)
Marine is defined as:

(i)
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of, found in, produced by, the sea: of shipping and naval matters.
In referring to the Marine Encyclopaedic Dictionary we will find:

(a)
A surveyor is defined as:

(i)
(b)
a person employed by a shipping association or a private person to

inspect cargoes, ships etc. He may be a Lloyds Register surveyor who
undertakes to inspect ships and issue the appropriate classification
certificates. He may also be asked to inspect and report on a damaged
ship or a ship for delivery or redelivery in a time charterparty.
Survey is defined as:

(i)
to view and examine the condition of an object and determine the recommendation needed, if any, to update its standard according to the
classification needed by the authorities or any authorised corporation;
(ii)
the act of examining by an independent impartial group of persons

on behalf of others. Surveys may be effected on request by insurance companies when insurance claims are submitted for damaged
cargoes or ships.
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Considering these various definitions we would define a marine surveyor as: A

person who uses his or her particular skill and expertise (based on established
competence of ships, boats, cargoes and the sea) to look at and report on the
factual condition of any ship, cargo or thing appertaining to ships, cargoes and
their respective environment.
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In creating this definition care has been taken to avoid placing any particular
category on the type of work a marine surveyor might undertake, eg cargo,
engine, naval architecture etc whilst remaining very specific about the
observation and recording of facts. This definition should clearly differentiate
between a surveyor and a consultant.
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Having gone to the trouble of defining a marine surveyor, you may have already
come to the conclusion that a marine surveyor may be called to act as a
consultant, auditor, representative or an expert witness.
Does the definition of the marine surveyor describe how you see
yourself in this profession?
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10.
KNOW YOUR CUSTOMERS
LEARNING OUTCOMES
understand the importance of knowing your customer;
understand the importance of having clear instructions; and
know the meaning of surveys without prejudice.
Figure 4
RINAs Surveyor Inspecting Costa Atlantica in Helsinki Photo by
Gero Mylius 11/4/2000
10.1
WHO INSTRUCTS SURVEYORS?
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Your customers are the parties who give you instructions. We will refer to them
as the principals. They are the most important people as far as the marine surveyor is concerned and when you are carrying out their instructions never forget
who you are working for and who ultimately will pay for your services.
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There is a wide range of potential principals looking for the services of marine
surveyors but it in general the most popular groups of principals are shipowners,
charterers, cargo receivers and shippers, underwriters (hull and cargo) and P&I
clubs. Some surveyors deliberately restrict their principals to one class of operator;
for example, many are retained only by shipowners and charterers and they do
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Know Your Customers
not accept instructions for underwriters, and vice versa. (While this segregation
of principals was prevalent a few years ago it is much less so today and it is now
quite likely that a surveyor will receive instructions from either party, but of course
not both in any one particular case for fear of involving a conflict of interest.)
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One golden rule to follow is that when you undertake work for a principal ensure
that the work does not involve a conflict of interest with another principal.
Generally, as a surveyor becomes established, there is a likelihood that surveyors
or surveying companies become best known for acting for one particular type of
principal, ie as shipowners or underwriters surveyors, although those who act
unselectively for any party seeking their services may be seen as being the most
truly independent and impartial.
10.2
HOW DOES YOUR PRINCIPAL KNOW YOU?
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The demands of the industry, the distances involved and the speed of business
in todays world mean that the relationship between the principal and the marine
surveyor is, in most cases, a distant one. The communication is normally electronic and a principal will invariably depend on previous experience with the
marine surveyor or a recommendation from another customer who has received
good service. This recommendation will in almost every case be dependent on
the impression the surveyor has given from the report that that the marine
surveyor has produced. This part of the surveyors service to the principal is so
important that the diploma devotes Module 3 to report writing.
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So it is important to always remember that the two key elements of the

customers relationship with the marine surveyor are two written documents: The
Instruction and The Report.
10.3
UNDERSTAND YOUR CONTRACTUAL OBLIGATIONS
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The marine surveyor should always seek clear instructions and once they have
been received, surveyors must keep within their parameters and not extend
beyond them without reference back to their principals. Failure to comply fully
with instructions can have serious consequences, but so too can overstepping
them and perhaps thereby committing a principal to unwanted costs or liabilities.
(In some cases too much can be said in a report where the surveyor covers
more than was requested in the original instructions.)
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There may be understandable reasons why the principals instructions cannot be

exactly fulfilled. In this case the surveyor should take appropriate steps to advise
the principal and, most importantly, ensure that the report (and the certificate
where appropriate) includes the shortcomings of the survey. The report should
also contain the reasons for them.
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If such a survey is for, say, cleanliness of a hold, the shipper then has the option
of accepting the limitations or ensuring that suitable steps are taken to enable
the surveyor to carry out the instructions to the full. However, such a practice
cannot be applied to some warranty surveys, as for example a towage approval
survey. Here the instructions are for the surveyor to be fully satisfied that the
towage risks are acceptable in all respects.
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Know Your Customers
Module 1
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In a towage approval case any qualifications to the certificate indicate that the
surveyor is not, or cannot be, fully satisfied that these risks are acceptable. It is
usually then too late for reference to principals and it may be unreasonable to
expect the tug and tow to delay a passage while awaiting any further instructions
to the surveyor. If there is uncertainty due to some limitation beyond the surveyors ability to have it rectified, the towage approval certificate cannot be
issued since the tow can be expected to commence as soon as the certificate
and towage recommendations are issued.
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As a general rule survey reports should outline what has been done, when it was
done, with whom and where. If something important has not been done (when
there is a requirement for it to be done), the reason for its omission should be
stated. If applicable there should also be a statement as to how the information was
gathered, under what conditions, and what degree of reliance can be placed on it.
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Marine surveyors often receive very sketchy instructions and are left to figure out
exactly what is required of them. In these cases it may be prudent to write out
your understanding of the instructions you have received and send it back to the
principal asking for confirmation. Fax or e-mail is one fast way of dealing with this.
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In the absence of detailed instructions it may be acceptable for the surveyor to

follow the usual industry practice but this can still leave some debate as to what
is actually expected from the survey. Sometimes misunderstandings will occur
and where instructions cross international borders complications can arise
because of different practices in different countries. There is no substitute for
clear written instructions at the outset.
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Sometimes, where a surveyor has been retained regularly by a party, there is a

mutual understanding of the requirement, and consequently there may be no
need for specific instructions to be given each time. Where this is not the case
surveyors should be wary of vague instructions and should seek more detailed
ones although, in some cases, they may be able to rely upon accepted industry
standards.
10.4
FOR WHOM DOES THE SURVEYOR ACT?
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A Marine Surveyor may be instructed to look after the interests of the party
appointing them. Looking after the instructing partys interests will not, of itself, create an agency relationship, although it will almost certainly impact upon their impartiality. Once the instructions go further, and include any authority to negotiate a
settlement or commit the instructing party to a course of action, then the position is
very different and they will clearly be entering into a principal and agent relationship. For this reason, surveyors need to be cautious about how they approach a
survey and what they say. This is necessary to ensure that they do not give a wrong
impression as to their role. When performing their customary role, care is required
not to imply that the surveyor has any authority which is not expressed or implied
in their instructions. While they would almost certainly not wish to do this deliberately, the important thing is to explode any myths as to any ostensible authority.
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There are some safeguards that the surveyor must take before a survey commences, or at least as soon as possible afterwards, if they are not to leave any
false impressions.
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The first, an ethical one, is that surveyors must always make it clear to those
present at the survey on whose instructions they are acting. There should never
be any misunderstanding on this important point. Here it is worth commenting
on the need for practising ship-visiting courtesies. Before proceeding, even if the
Marine surveyor has been retained by the shipowner, It is important for him to
remember that, despite the fact that he has the owners authority to attend the
vessel, the surveyor should always ask the Master for his permission to board.
Ship-masters are legally responsible for all that happens on board their ship.
They are, therefore, entitled to know at any time just who is on board and for
what purpose.
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Next comes the important matter of explaining the surveyors role to the party
most affected by their attendance. This may be the party who has actually
appointed the surveyor (many are unfamiliar with the surveyors customary role
or of the variations that can be requested in it) or it may be another party who
may possibly also be significantly affected by the surveyors attendance. Where,
for example, the surveyor has been appointed by an underwriter, some
explanation may be necessary to a cargo consignee, or to a ship owners or
charterers representative. (Representatives of commercial shipowners and
charterers usually do understand the position, but pleasure craft owners
and cargo receivers frequently have little or no understanding of the usual
procedures.)
10.5
SURVEYS WITHOUT PREJUDICE
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Marine surveyors often become involved in surveys that are carried out in order
to provide a basis for a settlement between two parties and it is important, from
a legal perspective, that nothing a surveyor writes or says when attending upon
the instructions of one of the parties is seen as committing that party in any way
to any particular basis of settlement, unless the principals instructions specifically include a requirement for them to negotiate a settlement. This is a rare
occurrence.
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Therefore, surveys almost always need to be carried out without prejudice to

any settlement eventually concluded, and this fact needs to be understood by
those involved. The surveyor should always state to the parties at the outset that
the survey is without prejudice, and it is usual to state this fact in the report too.
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Surveyors reports are often seen to contain a statement report issued without
prejudice which, at the stage of their writing, means they have no association
with any settlement. This has little real meaning in these circumstances but, if
anything, it probably means that the survey was carried out, and the report
written, without prejudice to the liability of the instructing principal.
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In most common law countries, a report prepared in anticipation of, or after the
commencement of, litigation and for this dominant purpose will usually be privileged. This means that it is not discoverable in subsequent legal proceedings
and is not required to be shown to the other side in the dispute. It is effectively
confidential between the writer and the recipient.
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It is not unusual to see a statement at the head of a survey report that it is

Privileged for the advice of legal advisers only. This statement has no legal
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Know Your Customers
Module 1
standing, but when the survey is required in the circumstances outlined above
the report can become privileged. The statement on the report does nothing to
make it so but the fact of the dispute having arisen in this situation will usually
give it legal protection. Conversely the absence of such a statement on the
report does not prevent it becoming privileged if the above test is satisfied.
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It is important that surveyors do not express unnecessary and uncalled-for opinions, especially those for which they are not well-qualified, particularly in reports
that are not privileged. Such action can be detrimental to their principals interests in subsequent litigation, and even where litigation does not follow the report
may, for some reason, fall into other hands and the remarks prove detrimental to
the principals satisfactory resolution of the matter. In particular, repudiations of
liability, whether under insurance policies, contracts of carriage or simply in
cases involving tort, often become more difficult where a surveyor has
expressed an opinion on liability.
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There may be occasions when a surveyor considers that certain information, not
specifically called for in the original instructions, is of importance and will be of
significant value to the instructing principal. In this case, a telephone call passing on this information may be all that is required. If appropriate it may be conveyed in a separate confidential letter, always bearing in mind that there is a
possibility of its discovery in the event of the matter going to court. The information should not appear in the report unless specifically requested to appear
there.
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Following on from the previous paragraph it sometimes occurs that an aside

letter which is quite separate from the report is desirable. To protect the surveyors interests, the principals should instruct their solicitor to expect a letter
from the surveyor. Sending an aside letter through the principals solicitors helps
to ensure that it is legally privileged.
Whilst we have discussed privilege, what is meant by disclosure
in a legal case?
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11.
TYPES OF SURVEY HULL AND

MACHINERY
LEARNING OUTCOMES
fully understand the different types of Hull and Machinery

surveys;
have a clear understanding of the Unified Requirements

of IACS;
understand the requirements of Statutory surveys; and
know what is meant by Condition Surveys and their different

applications.
11.1
HULL AND MACHINERY IN GENERAL
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Hull and Machinery surveys may be regarded as those that are involved in
seeing that the structure of the ship, its machinery and equipment, allow the
vessel to regarded as seaworthy. The surveys relating to ships hull and
machinery can be further reduced to the following types
Classification Surveys
Statutory Surveys
Condition Surveys
11.2
CLASSIFICATION SOCIETY SURVEYS
11.2.1
Periodic and Routine Surveys
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Initially for insurance purposes, shipowners usually choose to have their ships
and craft built to independently approved designs and under independent survey
to ensure compliance with those designs and also with good shipbuilding
practice. From their underwriters point of view this should ensure that they are
only insuring sound vessels which purport to be what their owners say they are.
If the owners of the ships to be built wish to have them classed with classification
societies, first they have to submit plans for approval and then provide access to
the ships by the societies surveyors throughout the period of construction. Once
classed they have to continue to make their ships available from time to time
while in service for subsequent surveys to ensure that they remain in a
satisfactory condition to warrant continuation in class.
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Types of Survey Hull and Machinery
Module 1
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Surveyors working for classification societies regularly carry out routine surveys
for the purpose of seeing that the vessel has been maintained and remains in
class. These surveys cover different parts of the vessel, including machinery,
being surveyed at varying intervals determined by the societies rules which are
based on experience of ships in service. Intervals of time between surveys of
different parts of the ship are well-documented and to avoid the need to cover
too much at any one time, thereby causing disruption to the ships trading
pattern, specific areas are designated for survey at intervals within the overall
approved time span. This time staggering of areas surveyed takes place within
a specified time limit so that survey of all parts of the ship is completed within
the accepted time span. (Normally four years but sometimes this may be
extended to five). These surveys are known as periodic surveys and they are
carried out in a routine manner, as closely to time as the ships operating pattern
allows. There is usually a short period of grace.
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On some occasions due to lack of appropriate repair facilities in a port, or

because of other time constraints, temporary repairs are carried out. These too
have to be to the satisfaction of the class surveyor who will then issue a
condition of class. This will require that permanent repairs are carried out by a
certain date if the vessel is to be allowed to remain in class.
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In the case of Class and Statutory surveys the surveyor will either be satisfied
with the state of the survey-subject equipment being examined or not. If he is
not satisfied he will recommend action required to restore Class or Statutory
condition (in the case of Statutory items requirements are mandatory and
owners must comply). It will then be the owners responsibility to act on the
recommendations.
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It is possible that shipowners may appoint an independent Marine Surveyor

to act on their behalf. As the owners representative the surveyor should
always attend Class and Statutory Surveys in order to be fully informed about
requirements arising from the survey, and so be in a position to discuss with the
Surveyor any desired amendment or postponement of action which may be
requested to suit the shipowners convenience.
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In this case all parties involved should have a clear appreciation at all times of
the objectives aimed at in the construction programme. The interpretation of an
agreed approved specification requires care, application, and close co-operation
between all concerned.
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The final stage in dealing with a new building is the observation and assessment
of the trials of ship and machinery. Acting as the Shipowners representative for
the newbuilding the task requires organising his own and the ships staff as a team
to examine the performance of the vessel and all equipment, outfit and machinery
to ensure that this complies with the requirements of the specification. This is a
major task, and, if it is to be successfully accomplished, must be carefully planned
and executed. The number of staff which the consultant can commit to the
exercise will not be large, not only from considerations of cost, but also because
the Shipbuilder will have many of his own staff engaged in running the trials who
will have to be accommodated on board in what will be limited space.
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Figure 5
Classification Surveyors Preparing to Survey a Vessel in Drydock
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It is important to know how the classification process works in practice. To start

with, a ship is contracted to be built such that it will comply with the provisions
of the IMO conventions (MARPOL, SOLAS and Load Line), the classification
rules and regulations and the relevant national regulations and standards (ISO,
IEC, ASME, BSI, DIN etc).
List the types of survey relating to hull and machinery that an
independent surveyor may be required to undertake.
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The shipyard will develop the design to meet these and the trading requirements
of the shipowner. Plans and documentation are submitted to the class society
and amended and approved. Class society surveyors attend each stage of the
construction and verify compliance. This may involve inspections in different
countries where surveyors attend the steel mills, inspect forgings and castings
for crankshafts, rudder horns and propeller bosses; main engine works and
propeller manufacturers; subcontractors for pipes, pumps and auxiliary
machinery; through to the main shipyard where the surveyor attends the subassembly and block erections of the various parts.
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The ship will be launched and the surveyor will attend throughout the outfitting
up to delivery, at which time the class society will supply both class and
statutory certification. The ship will enter service and be subjected to an ever
increasing scope of periodic inspection as the ship ages; comprising annual
docking (every three years), intermediate (every 21/2 years) and special
surveys (every five years) to ensure continued compliance with class and
statutory requirements.
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All the data collected during survey is held on the class societys central
database and reviewed for trends that indicate that further research or
amendments need to be made to the existing rules. This is supplemented by inhouse research. New rules and design criteria are then applied to the next
generation of ships leaving the building yards. If design faults are found within
the existing fleet then reinforcements are carried out and similar ships kept
under observation. This information is shared with other class societies who
class sister or similar ships under an Early Warning System set up by the
International Association of Classification Societies (IACS). Classification
societies have requirements for:
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(a)
manufacture, testing and certification of materials;
(b)
ship structures;
(c)
main and auxiliary machinery;
(d)
control, electrical, refrigeration and fire safety; and
(e)
survey procedures.
The class rules cover the strength aspects of the IMO conventions and, under
delegated authority, certify the ship for the remaining aspects of the conventions.
Hull classification rules and regulations, in particular, are derived from first principles
with specific corrosion margins and factors of safety based on experience in service.
Each classification society maintains a research and development department
comprising experts in marine related disciplines dedicated to rule development.
Survey reports of ships in service from field surveyors provide a continual feedback
of information on the performance of structures and machinery allowing trend
analysis and review of rules by the research departments.
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In 1969, the major class societies formed IACS to provide a central body for the
purpose of unifying key elements of the classification rules and regulations.
There are 10 member societies:
American Bureau of Shipping
Bureau Veritas
Chinese Classification Society
Det Norske Veritas
Germanischer Lloyd
Korean Register
Lloyds Register of Shipping
Nippon Kaiji Kyokai
Registro Italiano Navale
Russian Maritime Register of Shipping
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Experts from each classification society take the knowledge gained from their
classed fleet into the various IACS working parties that are established for the
purpose of creating Unified Requirements. IACS is structured with seven working
parties and, currently, 19 ad-hoc groups and correspondence groups that have
been created for a single major study. Their draft unified requirements are
reviewed by the IACS General Policy Group and then forwarded to IACS Council
for approval before being adopted by each member society in a similar manner
to the IMO approval and adoption process. These classification rules cover all
the main ship types oil tankers, chemical tankers, LNG and LPG ships,
containerships, bulk carriers, passenger ships, high-speed craft and, now, naval
ships for some class societies. Currently, IACS is working on over 120 projects
concerning the safety of ships.
1-367
Unified Requirements are minimum requirements. Each member and associate

remains free to set more stringent requirements.
A
Mooring and Anchoring
Mobile Offshore Drilling Units
Electricity
Fire Protection
Gas Tankers
Propellers
1-109
Module 1
Sub-division, Stability and Load Line
Machinery Installations
Navigation
Pipes and Pressure Vessels
Strength of Ships
Materials and Welding
Survey and Certification
Figure 6
DNVs Surveyor at Work on Lcat 033 Stena Sealink in Hobart. DNV May 2000
1-368
Although IACS is concerned with all types of vessels in class it has been the
frequent loss of bulk carriers, with appalling loss of life, which has prompted
much of the associations activity. As a result useful research has been
undertaken and many improvements achieved.
1-369
Classification society surveyors tend to come largely from the engineering and
naval architecture disciplines though some have a nautical surveyor
background. This is to be expected as class is principally concerned with design,
structure and condition rather than with equipment and operation although
recent years have seen safety and environmental issues come to the fore, much
of it calling for attention by nautical surveyors.
1-110
Module 1
1-370
Not all classification society surveyors are full-time employees of those societies
(known as exclusive surveyors) and some are consultant surveyors retained on
an as required basis. The involvement of these extra surveyors is carefully
regulated and may arise when a survey is required at a port where there is no
exclusive surveyor. In this case a non-exclusive/acting surveyor (privately
employed) may be instructed.
11.3
STATUTORY SURVEYS
1-371
It is the responsibility of each government administration to ensure that each

and every ship registered under its flag meet the requirements as agreed by
international convention through the IMO.
1-372
In the past administrations carried out their responsibilities by directly employing

their own surveyors to carry out their responsibility both as a flag state and a
port state. Surveyors would physically inspect ships and their equipment to
ensure compliance with the wide range of regulations and their surveys are
carried out largely at fixed time intervals, many once per year. In recent years,
the responsibility for some statutory surveys, the International Load Line Survey
being a prime example, has been delegated to approved classification societies.
1-373
These societies act as agents for the governments appointing them and some
governments are rightly very selective over which classification societies they
are prepared to appoint for these statutory surveys. Recent years have seen
wider delegation of powers by governments to class surveyors and more
certificates can now be issued by them than was previously the case. Some
countries, Japan being one of them, delegate work only to the countrys own
classification society.
1-374
As classification societies have an ongoing association with ships which they

class there is considerable merit in their surveyors being able to carry out these
surveys and issue the appropriate certificates. The fact that they can be
expected to be familiar with a particular vessels strengths and weaknesses
should place the societies in a strong position to conduct the necessary surveys
for issuing the certificates with the minimal amount of wasted effort and cost.
1-375
Having successfully completed their statutory surveys ships are issued with
certificates which evidence their compliance with the requirements. There is
frequently a need for them to be publicly displayed on board and original copies
are therefore also issued for convenience, with one being held by the master in
a file for easy reference by flag state control, port state control and other
surveyors when they board. There is usually a third copy held at the shipowners
head office.
1-376
In Appendix 1 of this module you will see the list of all the mandatory certificates
that ships are required to carry. (It is important to note that this is the current list
at the time this module went to press and a revised list is likely to be made in the
near future.)
1-111
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1-377
As mentioned in paragraph 1-011 administrations of many countries have

agreed to work together to check that vessels under their flag, and also foreign
flag vessels entering their ports, comply with the standards set by international
agreements. Port inspections of own country vessels are known as flag state
inspections (FSI) and those of other nationalities are known as port state
inspections (PSI). Government surveyors have wide powers to detain
substandard ships until they correct the defects which are of concern and to
enforce regulations within their waters. In recent years there appears to have
been some success in raising the standards of some of the vessels which fly
so-called flags of convenience.
11.4
CONDITION SURVEYS
1-378
This type of survey covers a number of investigations for the purpose of

determining the condition of a vessel or equipment at the time of the survey.
While this is the requirement for all condition surveys they do not all share the
same reason for the requirement. The reasons vary markedly and this is why the
extent of the survey, or the emphasis of the survey, can vary considerably. This
will become apparent as each survey is discussed below.
1-379
Condition surveys should be conducted in daylight and, where cargo spaces are
concerned, with the holds empty. It can be difficult enough for a surveyor to cover
all the requirements of the survey under favourable conditions without adding
unnecessary hindrances such as lighting.
1-380
Condition surveys may be grouped into the following categories

Sale and Purchase Surveys
On and Off-hire surveys
Structural and/or Damage Surveys
Cargoworthiness surveys
P&I club entry surveys
11.4.1
Sale and Purchase Surveys
1-381
A prospective purchaser of a secondhand vessel will often not wish to rely upon
the information obtained from a vessels classification society (which will only be
given with the vendors permission) and, in the case of surveys by some
societies, will almost certainly seek information upon which greater reliance can
be placed. In any event class does not cover some of the information that may
be required when considering a vessels overall condition and value.
1-382
Sale and purchase surveys require the surveyor to look for all defects in the hull,
machinery and equipment. Surveyors should state whether these defects are
due to wear and tear (ordinary, or exceptional due to some unsatisfactory
working conditions), to a casualty, a fault in design, or defect in manufacture in
the case of a component. Some purchasers may only require the surveyor to
report the bare facts concerning present condition and leave them to consider
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the ramifications, but more often than not an expert opinion, giving a wider
appraisal and providing the conclusions mentioned above, will greatly assist the
purchaser to make appropriate decisions regarding the suitability of the vessel.
1-383
The extent to which surveyors will need in-depth inspections of various items will
depend to some extent upon their initial findings, the evidence of a planned
maintenance scheme in operation and the completeness of the maintenance
records.
1-384
The following are the areas principally requiring the surveyors attention:
(a)
Vessels description, history where possible, details of owners, master and

chief engineer.
(b)
Listing of all certificates including dates of issue and expiry.
(c)
Hull
(i)
Hull and decks including structural condition of all stiffeners (ultra-sonic

testing of the plating to measure its thickness may be warranted).
(ii)
Double bottom, deep and other tanks.
(iii)
Hatch covers and all holds fixtures and fittings.
(iv)
Cargo handling equipment.
(v)
Fire and life saving equipment and life boats, liferafts and davits.
(vi)
Deck houses, superstructure, galley, storerooms and accommodation.
(vii) Steering gear.

(d)
(e)
Engine Room
(i)
Main and auxiliary machinery, boilers.
(ii)
All pumping arrangements and associated valves.
(iii)
Fire and watertight integrity closing devices inside the hull and
engine room.
(iv)
Engine room fire-fighting appliances, storeroom and workshops.
Bridge
(i)
Navigation equipment (radar, echo sounders, GPS, chronometer,

sextants etc).
(ii)
Bridge instruments (rudder and engine revolution indicators,

telegraphs, steering gear, compasses etc).
1-113
(f)
Module 1
(iii)
Charts and publications (adequate and kept up to date).
(iv)
Radio equipment (GMDSS) and signalling lights and equipment.
Drydocking
To check the underwater condition of the hull, propeller, shaft and
rudder.
(g)
Records
No survey is complete without reference to the ships records which
will include:
(i)
Deck and engine room log books.
(ii)
Ship manoeuvring diagrams and data.
(iii)
Radar, gyro and other equipment operation and servicing records.
(iv)
Ships register.
(v)
Chain register and test certificates for lifting gear (cranes, derricks,
shackles, wires.
(vi)
Plans of the vessel and equipment etc.
(vii) Stability data book and other essential manuals.

1-385
A surveyor carrying out this type of survey needs to keep a sense of balance
and proportion when reporting upon defects. All secondhand vessels will have
defects. Some of them may be simply commensurate with the vessels age but
others may be from other causes and the surveyor should seek out the reasons
as they may influence the buyer in making his decision whether to purchase or
not. Some classes of ships or machinery have recognised weaknesses and
where a vessel or item of machinery in such a category is being considered by
a prospective purchaser the surveyors should check for these likely weaknesses
and report upon them.
1-386
Where defects are noted during the survey there should be suggestions in the
report on how they can be rectified and perhaps also an indication of likely cost,
although not all surveyors will be sufficiently conversant with costs to comment
authoritatively. This especially applies where the surveyor is not on his own
home ground and the survey is carried out in an unfamiliar port.
1-387
Try to present a fair and reasonable report on the condition of a vessel. Avoid the
temptation to over emphasise the inevitable defects that every vessel has. Even
if numerous, these defects may not be material for the kind of use to which the
prospective owner may wish to put the vessel. Clearly a surveyor who fails to find
the defects is failing to do his job but if he blows them up out of all proportion to
their importance he is doing a great disservice to both vendor and purchaser.
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Module 1
And no surveyor of integrity will allow his report, although perhaps factual, to be
deliberately unbalanced so as to give a false overall impression simply for the
purchasers benefit as an unfair negotiating tool.
1-388
On occasions a potential purchaser may ask the surveyor to express an opinion

on more issues than simply that of condition, especially seeking advice on
whether or not the vessel is suitable for a particular trade or purpose. If the
surveyor is competent to do this then it is a reasonable request and the surveyor
may respond following clear instructions to this effect. However, ship valuations
are rarely within a surveyors area of expertise and are best left to a shipbroker.
11.4.2
Small Craft
1-389
Sale and purchase surveys are not restricted to major vessels and they
commonly take place prior to yachts or other small craft changing hands. In
these cases they are usually surveyed by those possessing very different
qualifications and skills from those involved with ships. Such surveyors will
frequently have a background as shipwrights and boat builders or designers
who, in many cases, need to be versed in non-traditional materials such as GRP,
aluminium and steel. Particularly when the subject of the survey is a sailing
yacht the rigging forms an important part of the survey, and it is desirable that
the surveyor should be a practising yachtsman.
Figure 7
The Pier Marketplace and Yacht Marina in Cairns, Australia Typifies the Small
Craft Leisure Industry that has Sprung up Around the World in Recent Years
1-115
Module 1
1-390
While there are rules for pleasure craft published by most classification
societies, comparatively few are classed. A growing number of large sailing and
motor yachts are in class, having been built under survey and since maintained
in class. There are provisions in some societies rules for GRP mass-produced
yachts to have their hull and deck moulding processes approved and a type
approval certificate issued.
1-391
Sometimes a difficulty with pleasure craft is in getting them properly prepared for
survey. This requires opening up areas for close inspection, removal of ballast
and gear and often the drawing of the odd keel bolt. Costs of this preparation,
like those of the survey, are usually for the prospective purchasers account.
1-392
A limited condition survey will frequently be required by an insurance company

when asked to insure small craft. In these cases safety features in the equipment
will rate of major importance as many small craft become total losses from fire
and explosion and so engine, fuel and gas installations require careful attention.
Thefts of equipment are common and a requirement of the surveyor is also likely
to be to verify that equipment, often expensive items attractive to thieves, is
present on board the craft at the inception of the insurance policy, and is of the
type and quality stated.
1-393
The extent of small craft regulation and surveys varies considerably from country
to country. Most international conventions do not become the subject of legislation
for craft which only operate in local waters (the Collision Regulations would be
an exception) and the extent of the regulations applying to small craft is then
almost entirely dependent on a governments own prescription.
1-394
Some countries have very few regulations affecting their pleasure craft whereas
others have been obliged to address the subject very fully and provide welldocumented procedures to enable their government surveyors to fulfill their
survey role. New Zealand is an example of the former and the US, through its
Coast Guard, of the latter. However where pleasure craft are involved and
matters proceed less formally, with the owner usually understanding little about
insurance or repairs, surveyors are generally expected to give more assistance
to the claimant in determining the cause of loss and repair costs, reporting
accordingly to underwriters.
1-395
Small commercial craft however fall into an entirely different category and
statutory surveys are almost always a requirement. The extent of these surveys
and the standard that is expected of charter yachts, small passenger carrying
ferries, tugs and other work boats varies considerably between countries. Many
of these surveys are carried out by government surveyors, but in some countries
there has recently been a trend away from the use of government surveyors and
many approved private surveyors carry out this work. Just as there is now a
requirement for shipowners to be more directly involved with maintaining their
vessels in seaworthy condition (International Safety Management Code) so too
has there been a somewhat parallel movement to introduce a limited but similar
arrangement with small commercial craft.
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11.4.3
On / Off-Hire Surveys
1-396
Where a charterer wishes to charter a ship and man and operate the ship for a
specific period of time it is called a bare boat charter. In doing this the charterer
becomes the owner by demise and carries all the responsibility of caring for and
managing that vessel under the contract terms. The actual owner now has no
control over the vessel, but does wish to have it returned in the same condition,
wear and tear accepted. It is important therefore that a full on-hire survey is
carried out so that at the completion of the charter there is a record of how the
vessel was at the time the charterers took possession. Where the surveyor is
carrying out an off-hire survey and can access the on-hire report it will greatly
assist the comparison of past and present condition if the same order of
reporting defects is followed.
1-397
On voyage and time charters, a similar type of on-hire survey is necessary under
the terms of most charter parties. Although in this case the charterer is generally
hiring the cargo space or the service a ship offers rather than taking over the
vessel. This on-hire survey is carried out to safeguard the owner against
potential damage caused during the charter by the cargo or any other part of the
operation. For example, in the oil industry, exploration companies may charter
an anchor-handling tug to carry out rig moves. This can be quite heavy work for
the tug to carry out and any damage caused may be claimed by the owners.
1-398
Part of the on/off-hire survey requirements is to measure the consumables at the

start and completion of the charter, For example the charterparty may state that
the charterer has to pay for fuel oil and lubes. In this case there will a balance
between how much bunkers the vessel had at the beginning and completion of
the charter. The surveyor will also ensure that the statutory certificates are all in
order (dates of issue and expiry should be recorded against each). A tally of
cargo lashing gear is also generally included in the surveyors report.
1-399
In both of the above types of charter, the charterers will have a responsibility for
returning the ship, and principally the cargo spaces, to the owner in much the
same condition as they were in at the beginning of the charter. Or if they are
unable to do this then at least they have to meet the costs of any necessary
repairs. In many cases the owner and the charterer may employ the same
charterer to represent both parties.
1-400
On completion of the survey the surveyor submits a report stating what has been
done, what has been sighted and, where there is significant damage, the extent
of that damage or at least the present condition. This must be factual and
generally does not call for opinion. Included in APPENDIX 6 is a glossary of
IACS standard reporting terms and these should be followed. It makes the
reader more comfortable to see recognisable terms that are understood in the
industry. The report may also include remarks on the general condition of the
vessels engine room and accommodation and the amount of rust in the holds.
1-117
12.
TYPES OF SURVEY CARGO-RELATED

SURVEYS
LEARNING OUTCOMES
fully understand the importance of cargoworthiness;
understand the importance in the preparation of cargo

spaces;
understand the surveyors role in surveying cargo;
understand what is meant by draught surveys; and
know how to carry out quantity surveys.
12.1
CARGO-RELATED SURVEYS IN GENERAL
1-401
In the previous chapter, ensuring the seaworthiness of the vessel was the
underlying reason for various surveys that are undertaken by various types of
surveyor. In this chapter we consider the cargo-related surveys that ensure the
vessel is cargoworthy and the need to ensure that the interests of both shipper
and shipowner are covered to meet the laws covering the carriage of goods at
sea. It is not just to see that the cargo is safely and securely stowed for the
voyage, but the cargo is what it says it is and does not endanger the ship.
12.2
IS THE SHIP CARGOWORTHY?
1-402
In the tramp trade, particularly with regard to time or voyage charters, the
shipper or charterer will call upon a surveyor to determine the condition of the
spaces and equipment used for the carriage of the charterers cargo and
the adjacent parts of the ships structure.
1-403
These surveys can be quite extensive and will cover cargo spaces and their
closing devices, the adjacent weather deck, ship side rails and/or bulwarks, deck
and mast houses and any part of the ship which is likely to become damaged in
cargo operations. Within the holds the access ladders, ventilator trunking,
service water and other pipes, and sounding pipes are very vulnerable to
damage. Tank tops frequently receive a severe pounding from grabs in ships
carrying bulk cargoes. Bulkheads, frames, wing tanks and ship side plating are
similarly susceptible to damage from grabs and from any cargo which may strike
them while loading or discharging.
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Types of Survey Cargo-related Surveys
1-404
It is good practice for the surveyor to cover the items on deck and then work
through each hold in turn. This is best achieved by working from port to starboard
and upper to lower. This is not a hard and fast rule but the surveyor should get into
a reasonably regular routine and, if access can be obtained to past survey reports,
to observe the system used for them provided they have a measure of uniformity.
1-405
The shipowner and the charterer may agree to the appointment of only one
surveyor to carry out an independent survey on behalf of them both or each
party may appoint their own surveyor. In the latter case it is usual for the two
surveyors to work together and co-operate as closely as is compatible with their
duty to act for the party appointing them. It is certainly important that at the onhire survey, before the cargo is loaded, they should be in agreement as to the
condition of relevant parts of the vessel as any differences can almost certainly
not be reconciled later. It is not quite as important at the off-hire survey as there
is then still an opportunity for all concerned to make their own observations
provided the vessel does not immediately leave the final discharging port or
commence to load another cargo.
1-406
Where a survey is carried out with a surveyor acting for each party then
agreement on the routine for inspection and reporting will assist all those who
have access to these reports. In practice it is not usually too difficult to get
surveyors to reach agreement as both are likely to be competent, practical
persons and are usually very familiar with the need to co-operate for the benefit
of their principals.
12.2.1
Tanker Surveys
1-407
In recent years the bad publicity surrounding oil tanker disasters, and the potential
for the charterer to be held responsible for oil spillage along with everyone else,
means that oil majors in particular are careful to know the condition of the ships
they hire to carry their cargo. The once vast fleets of oil tankers owned by the
worlds principal oil companies have long gone and, although some oil majors still
operate some vessels of their own, they have turned to the charter market for the
majority of their ocean transport requirements.
1-408
Most oil majors have formed an association called OCIMF (Oil Companies
International Marine Forum). One of the most significant safety initiatives to be
introduced by OCIMF is the Ship Inspection Report Programme (SIRE). This
programme was originally launched in 1993 to specifically address concerns
about sub-standard shipping. The SIRE Programme is a unique tanker risk
assessment tool of value to charterers, ship operators, terminal operators and
government bodies concerned with ship safety.
1-409
The SIRE system is a very large database of up-to-date information about

tankers. Essentially, SIRE has focused tanker industry awareness on the
importance of meeting satisfactory tanker quality and ship safety standards.
Inspection reports are maintained on the index for a period of 12 months from
the date of receipt and are maintained on the database for two years. SIRE
access is available, at a nominal cost, to OCIMF members, bulk oil terminal
operators, port authorities, canal authorities, oil, power, industrial or oil trader
companies which charter tankers as a normal part of their business. It is also
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available, free of charge, to governmental bodies which supervise safety and/or

pollution prevention in respect of oil tankers (eg port state control authorities,
MOUs, etc). Applicants wishing to participate in the SIRE Programme are
required to obtain formal applications and are asked to submit their request via
e-mail or fax. Please include your full style mailing address.
1-410
So most oil majors have their own checklists which are based upon the OCIMF
inspection routine for the various classes of tanker. Rather than rely upon
unknown surveyors the principal chartering oil companies will often carry out
their own surveys, or at least retain surveyors in whom they have long standing
confidence.They will quite readily incur the expense of flying them around the world
to conduct their surveys the price of an air fare is cheap compared with the
costs which can result from an unreliable survey before a long-term charter.
12.3
PREPARATION OF CARGO SPACES
1-411
Relating to the cargoworthiness explained in 12.2 there is another common type

of survey which is one in which surveyors certify that, as independent parties,
they have inspected a cargo space before loading and are satisfied that it has
been cleaned and otherwise prepared as required for the reception and
satisfactory carriage of a specific type of cargo. Examples of this survey involve
cargo spaces intended for the reception of refrigerated cargoes, grain and other
bulk commodities, tallow, latex, vegetable and other oils. The survey thus
involves holds, refrigerated chambers and cargo tanks and may often also be
required for containers before stuffing.
1-412
In the case of refrigerated cargoes the approval will involve not only cleanliness
but also suitable dunnaging and, above all, correct opening temperatures and
confirmation that the refrigeration machinery is capable of providing the requisite
temperatures.
1-413
The instructions from the principal to the Surveyor should clearly state the
standards of cleanliness that are be required for a particular cargo to be carried.
It often happens that principals do not provide sufficient information and the
available time for survey is often limited. An added difficulty is that some areas
of a hold may be nearly inaccessible. Where such limitations are placed upon
the standard of a survey the report must indicate them.
1-414
For ballast holds the suction and inlet pipes should be blanked off. Also all hatch
covers should be hose tested unless the surveyor can be otherwise satisfied that
they are in good order and watertight. Hold bilge suctions need to be tested to
ensure that any moisture finding its way to the bilge area can be pumped clear.
Some filtering cover (such as burlap) should be placed over them to prevent
quantities of cargo getting into the bilges.
1-415
Surveys must be particularly careful when inspecting tanks internally for oil and
petroleum products. These spaces should only be entered when it is safe to do
so. With regard to edible oils and fats the current FOSFA (Federation of Oils
Seeds and Fats Association) recommendations are the guide to survey
requirements. Cleanliness, freedom from moisture and rust are the principal
considerations, together with lack of damage to surface coatings. For some
cargoes the removal of brass, copper, galvanised and alloy fittings is necessary.
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Where heating coils are fitted they should either be tested, if required for heating
the particular product, or removed and blanked off. There will also be a
requirement to certify the cleanliness of pumping arrangements, including the
loading and discharge lines to the shore facility.
12.4
SURVEYING THE CARGOES
1-416
It is perhaps true to say that independent surveyors are mostly employed as

cargo surveyors throughout the world. Shipowners, charterers, cargo owners and
underwriters often require the attention of surveyors for almost every facet of their
handling. This can sometimes be from the point of origin, which may be well
inland in the country of origin, to the place of destination, similarly well inland in
the country of destination, or it may, more commonly, be at the port of shipment
or discharge. Particularly when things go wrong and cargo becomes damaged
several parties with an interest in it may all call for independent surveys.
1-417
While cargo surveying is usually the province of nautical surveyors, who alone may
be suitable for some surveys, it is by no means exclusively so and many very
competent cargo surveyors have had little or no actual seagoing experience. In
these cases they probably attribute their expertise to having served in the
appropriate industry which has equipped them with a specialised knowledge of a
particular commodity or manufactured item such as a complex computer.
12.5
GENERAL CARGOES
1-418
The tonnage of general cargo being shipped worldwide has increased by an

average of 3.5% over the last 25 years. However, the average growth in
containerisation during the period 19802001 has grown by 8.5 %. What is even
more dramatic is that containerisation as a percentage of non-bulk cargo has risen
from 46.7% in 1980 to 83% in 2001. So we can see the method of transportation
has changed dramatically with the growth of container operations. To some extent
this has changed the pattern of general cargo surveys, and much of the cargo is
now not seen at the ports through which it is exported and imported.
1-419
Containerisation has also had a dramatic effect on refrigerated and chilled

cargoes which are carried in large quantities in specially built vessels. The term
general cargo applies to a very wide variety of items, much of it manufactured
or processed in some form and almost certainly of diverse sizes and weights.
The term is used largely to differentiate this type of cargo from cargo consisting
of a homogeneous mass of material, all of which is similar in nature.
12.5.1
Container Surveys
1-420
Some ports have a Container Service Facility (CSF) where containers may be
stuffed or unstuffed within the security of a port facility. Usually competent cargo
handlers are available who can see that this work is properly carried out.
However the vast majority of containers are stuffed at some distance from the
marine terminals that will load them on to the ship. What has been loaded and
how it has been loaded is not always clear, and ports and ships rely on the
documents accompanying the container. This does cause concern.
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Module 1
1-421
Furthermore containers are susceptible to handling damage and to damage

from cargoes loaded into them. There may be a need in the case of leased
containers for a survey when the containers go on-hire and survey again when
they come off-hire. Marine surveyors will often be called upon to carry out
these surveys, although this has become something of an area of specialisation
and many containers are surveyed by those with an engineering background,
not necessarily marine, and who have often been employed in firms carrying out
container manufacture or repair work.
1-422
Generally only one container surveyor will be involved as the values at stake
will usually leave each party prepared to accept the findings of one surveyor acting
independently. Where both parties have confidence in an agreed repair firm and the
extent of damage is not high it is not uncommon for them to dispense with the
services of an independent surveyor and accept the repair firms quote after having
made it quite clear that only recent damage, and no wear and tear, is to be
covered. It has now become common practice for container surveyors to have
passed the examinations of the Institute of International Container Lessors (IICL).
1-423
Containers are used for a large number of commodities in addition to the normal
general dry cargo such as edible oils and small parcels of special oils and
chemicals etc. Some of these commodities require containers to be cleaned and
approved before loading. When used for general cargo there is not usually the
same requirement but as they are often carried on deck and, in any event, are
likely to be exposed to rain in the terminals, watertight integrity is important.
From time to time surveyors are required to survey them before stuffing and the
following points require attention:
(a)
Rubber door seals present, intact and watertight.
(b)
Door securing devices in good order.
(c)
Free of holes or other damage (particularly on top, adjacent to the corner

posts where spreader twistlocks commonly puncture them).
(d)
Insulation in good condition (reefer containers).
1-424
Watertightness can usually be checked satisfactorily by the surveyor entering

the container and having it closed behind him. Light will penetrate most holes but
a further check can be made by hose testing. Surveyors will generally be
expected to check that reefer containers have been pre-cooled before stuffing
and then, on completion, that they are tightly closed, possibly sealed for security
and that the correct settings have been applied to the refrigeration equipment,
with recorder charts in place and correctly lined up.
1-425
It should also be noted that containers are now frequently used for the carriage
of small quantities of industrial gases and bulk liquids. They have tended to
replace deep tanks for this purpose as they have the obvious benefits of
portability and ease of access for cleanliness.
12.5.2
Container Stuffing Surveys
1-426
As has been mentioned containers are normally stuffed inland, then conveyed to the
port of shipment, carried by the ship from port to port and then dispatched inland
1-122
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to the final destination. From the point of view of the cargo owners this is
intended to reduce time, eliminate much of the handling of individual items and,
as a consequence, reduce both the handling time/cost involved and the potential
for damage.
1-427
The term FCL, the abbreviation for full container load, is used to describe a
method of conveyance in which a container is stuffed with the cargo of one
shipper, often directly from its own premises and then delivered into a
consignees premises at destination.
1-428
A considerable amount of cargo is also delivered to and from depots operated

by shipping companies or freight forwarders. They may be inland, or in the
vicinity of the port areas, and here the cargo is consolidated/deconsolidated and
the containers stuffed/unstuffed with cargo offered by a number of shippers
before/after being conveyed to and from the ships. It is then known as LCL
less than container load.
1-429
The obvious benefits to cargo handling arising out of container transport have
been effective and they have also changed the pattern of surveys considerably.
Although a surveyor may attend at the shipping companies request when the
containers are handled on board the ships there is frequently little opportunity to
sight the contents. Ships surveyors rarely attend at the point where container s
are stuffed or unstuffed of cargo unless there is reason to expect stowage
difficulties or cargo damage. However P&I clubs have been taking a stronger
interest in this in recent years.
1-430
Cargo surveyors acting for underwriters may sometimes be requested to attend

at the shippers premises or loading depots to sight the cargos condition and
securing within the container. When damage has been discovered at destination
surveys are very likely to be required and, as a consequence, it is not
uncommon for insurance loss adjusters, many of whom have very limited marine
cargo knowledge, to be appointed if there is no recognised surveyor within
reasonable travelling distance.
1-431
Much of the worlds general cargo is today handled in containers and the break
bulk carriage in conventional cargo ships is very much reduced. However, there
are some marked exceptions to this where specialised cargoes, such as
refrigerated meat and fruit, will often be carried in specialised ships fitted for the
purpose. Although containers are also used extensively for refrigerated cargo
there is still a place for the purpose-built tween deck vessel employed worldwide
in these trades. Car and livestock carriers are also special types of vessels
designed or converted for their specialised trades.
1-432
A number of containers are frequently stowed on deck in general cargo ships

and almost always in dedicated containerships. These containers must be very
carefully secured in place and this is achieved almost invariably by means of
special securing hooks, rods and rigging screws in addition to relying upon the
twist-locks. A manual covering this should be provided in each such ship and
must be carefully adhered to.
1-123
Module 1
Figure 8
In the UK Both the MCA and the HSE are Calling for More Attention to be Paid
to Lashing on Container Ships. The Lack of Suitable Access to Lashing Work
Stations is a Common Cause of Accidents to Stevedores as it Causes
Unorthodox and Unsafe Practices. Marine Surveyors who have the Important
Task of Seeing that Containers have been Properly Lashed should be Aware of
this Hazard. Picture Feb 2004
12.6
DRY BULK CARGO
1-433
Bulk carriers (or bulkers as they are often called) have had a sad history in
recent years with one being lost on average every month. They are also perhaps
the most hazardous vessel for a marine surveyor to encounter. They have been
designed to minimise their registered tonnage measurements and usually have
no raised forecastle. The loss of the Derbyshire highlighted the problem to
the world at large. This was because it was a British ship with British crew and
the UK press seized onto the human loss element. This is fair enough, and
yet the world has generally ignored the other 300 or so losses of these vessels.
The scantlings of these vessels has also been set to a minimum, the lighter the
hull the more cargo you can carry. In the hands of uncaring owners and poorly
paid crews, these workhorses in the industry soon deteriorate and become a risk
to themselves and those that board them.
1-434
The various bulk cargoes these ships carry also create problems for the ships
which carry them, and damage is often caused by corrosion and damage
caused by unsuitable loading. Too often this damage went unnoticed, having
been undetected due to inadequate surveying standards. In short the losses
have arisen where commercial rather than safety interests have been the
overriding factor.
1-435
IMO and IACS have been very hard at work in improving bulk carrier safety, with
improved design and increased structural requirements. There has been a great
deal of debate about compulsory double hulls for bulkers, but at present this
remains optional.
1-124
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1-436
IMO also has produced the BLU Code which is the Code of Practice for the Safe
Loading and Unloading of Bulk Carriers and should be complied with by both
ship and terminal operators. (This is an essential document for those regularly
involved in the trade. Others would be wise to make themselves familiar with its
existence. Refer to the Appendix 5 to this module for a list of its contents.)
1-437
Marine Surveyors with experience also as ships officers on bulk ships can be
very effective in ensuring that the essential co-operation between the ship and
the port personnel will ensure the utmost care and attention concerning the
planning of the loading and discharging operation. This will require suitable
distribution of weights in each hold and the speed of the loading operation.
Always be aware that often the terminal operators are more concerned with
getting the ship off the berth than with the ships overall safety.
1-438
A prime consideration must be the loading/discharging plan. It needs to cover:

(a)
Distribution of cargo within the holds (taking into account its suitability at
both the loading and discharging port/s).
(b)
Speed of loading/discharging of each hold.
(c)
The ships capability of ballasting/deballasting (considered in association

with above).
1-439
Attention must be paid to the requirements of any ballast or de-ballasting

operation. The same problems apply to ballasting and deballasting as mentioned
in 1-348 above concerning the rate of loading/discharging and to distribution of
cargo. Both operations can materially affect the vessels structure by imposing
severe stresses, causing significant damage. In giving proper consideration to
these matters the terminal administration should sign and accept the IMO
approved ship/shore checklist and provide the ship with instructions, in the
appropriate language, regarding its conduct at the terminal.
1-440
Another area of concern is that of damage done to the ship during cargo
operations by handling equipment. This damage is specially serious when
caused to hatches and hatch coamings but it also applies to fittings in the hold.
Ships officers, and the surveyor too, are generally required to monitor this and
liaise with the terminal operators to minimise any damage caused by grabs and
machinery, principally bulldozers, operated within the hold. Provision of a GA
hatch plan, showing the location of hold ladders, pipes and other fittings prior to
commencing will facilitate this. Marine surveyors should also consider the
cleanliness and fitness to receive the cargo, and the taking of samples during
loading or prior to discharge.
1-441
The most common types of bulk cargoes are grain, iron ore, coal, sugar, scrap
steel, chemicals and fertilisers. They are conveyed across the oceans in vast
quantities and generally do not present major problems for their receivers but many
are susceptible to contamination from the residue of previously carried cargoes,
rust from the ships structure, moisture from sweat, rain during loading, sea water
ingress through leaking hatches and fresh/salt water from leaking pipes.
1-442
Be particularly concerned with coal and some chemicals that require careful
temperature monitoring as they are susceptible to heating damage and in some
1-125
Module 1
cases to spontaneous combustion. The IMO Code of Safe Practice for Solid Bulk
Cargoes provides information on the stowage and carriage of most common,
and many uncommon, bulk cargoes.
1-443
With bulk cargoes the quantity out-turned, sometimes with unexplained

shortages exceeding an acceptable percentage, can present difficulty in
determining where the losses occurred and will result in substantial claims for
these losses. On some occasions they may be no more than paper losses and,
where surveyors are not involved until after the discharge, it is often very difficult
to detect where the losses have really occurred.
1-444
Sampling usually plays a large part in the role of the surveyor during the loading
and discharging of bulk cargoes and is commonly required to determine the
quality, moisture content, and possibly temperature of the cargo to be loaded or
on board. But it is not always as simple and straightforward as it may appear as
samples are usually required to be representative samples of the whole. They
may also sometimes need to be more specific of those at any place or time
during a cargo operation, particularly if a problem is met at any stage.
Figure 9
The 2,100 gt General Cargo Vessel Scotia Being Loaded with Grain at UK the
Port of Dover. The Scotia is Owned by Baum and Company and was Built in
1987. Photographed in October 2002
1-445
1-126
Grain cargoes have, for many years, engaged surveyors attention in the grain loading
ports of the world.The regulations imposed by the SOLAS convention on the carriage
of grain are extensive although recent years have seen some simplification. This has
been assisted by the design of modern bulk carriers and it is the more conventional
cargo ship that presents the most problems. As a consequence they are rarely fixed
for grain cargoes as bulkers are generally readily available.
Module 1
1-446
Loading will have to comply with the requirements of the International Grain Code
(except where exemptions have been granted, in which case the stability report
should say so) and charterparties will usually also have some specific requirements
relating to the loading of a grain cargo. Surveyors instructions should include
reference to them. In many cases there will be a requirement for, and a restriction
to, the involvement of certain specific approved surveyors. Although private surveyors may attend to much of the planning and overseeing of a grain loading there
will usually be a requirement for a government surveyor to approve the overall plan.
12.6.1
Draught Surveys
1-447
Draught marks are permanently indicated on the ships side, both forward and
aft. Conducting draught surveys is one popular method used to determine the
quantity of cargo loaded or discharged particularly in the case of bulk cargoes
such as that carried by the vessel pictured below. They are convenient and
reasonably reliable and are carried out by comparing the vessels draught before
and after the loading or discharging operation.
1-448
By taking the draught of a vessel the marine surveyor can measure the
displacement of the ship at the start and completion of the cargo operation. The
difference between the two measurements will represent the weight of cargo
added or removed. Of course other allowances will have to be made if the vessel
has loaded fuel oil, water, or other items. Simple as all this may seem it is
actually quite a complicated and often difficult process as so many factors can
affect the accuracy of the two comparative draught readings obtained. There are
other difficulties to overcome.
Figure 10
A Typical Panamax Bulk Carrier, the Desert Eagle, Owned by Atlantic Bulk Carriers
Built in 2002 in South Korea and Registered in Greece, the
Vessel is 74,630 dwt.
1-127
Module 1
1-449
The accuracy of draught surveys increases with the quantity of cargo being
carried by the vessel. Up to about 5,000 tonnes actual weighing of the cargo will
probably be more accurate but, as the quantity increases so does the accuracy
of the draught survey. At about 10,000 tonnes, and with good conditions for
taking the measurements, accuracy can be of the order of between 1% and 2%.
Even for the smaller quantities draught surveys may provide a useful check upon
other methods. The following points are mentioned to give some indication of the
requirements in carrying out draught surveys but they touch only very lightly on
the subject. Draught surveys should not be embarked upon by novice surveyors
without some first hand guidance from experienced surveyors.
1-450
The surveyor has first to observe the draught readings at which the ship is
floating and these have to be reasonably accurate. They can be complicated by
many basic factors including:
(a)
The clarity of the paint on the draught marks.
(b)
The adequacy of the light falling on them.
(c)
The surveyors proximity to the marks (hanging from a rope ladder from the
overhang of the offside quarter in a strong wind can be exciting but not
very productive! Sighting from a boat is usually the best method).
(d)
The disturbance at the water level (by wind and swell).
(e)
When in a strong current, whether the ship is squatting and/or has a build
up of water at its stem or stern.
(f)
Whether the ship, as a longitudinal girder, is deformed due to its condition

of loading, or due to ambient temperature.
1-451
The effect of weather disturbance on draught readings can be reduced by

means of a draught tube used adjacent to the draught marks. It stills the water
beside the mark at which the draught is read. Distant reading draught gauges
are not accurate enough for this purpose. Another form of assistance can be
provided by means of a special clinometer which allows the surveyor to correct
for a vessels list when the weather permits only an accurate reading of the
draught on the lee side.
1-452
These listed items often cover only the first difficulties encountered and once an
accurate draught reading has been obtained it may need correcting for the fact
that draught marks are often not on the fore or aft perpendiculars. It is then
necessary to obtain an accurate density of the water in which the ship is floating.
The sea water density can be affected by a number of variables such as:
1-128
(a)
Depth at which they are taken (salinity and temperature variables).
(b)
Location, relative to the fore and aft line of the ship (density can vary
between the stem and the stern for the same reasons).
(c)
Local distortions caused by ships or shore discharges.
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1-453
Once a representative sample has been achieved the density has to be obtained
by means of a hydrometer, and for accuracy a special draught survey instrument
should be used. Temperature plays a part as a hydrometer reads correctly at
only one specified temperature and the reading obtained will be slightly in error
at other temperatures due to expansion and contraction of the material of which
it is constructed.
1-454
Having fine tuned the draught readings, the surveyor then has to determine the
changes in quantities of ballast and fresh water, fuel and diesel oil, stores,
spares and other variables on board. This requires sounding, or at least
witnessing, ships officers taking of soundings, of all the double bottom, deep
and wing tanks (even empty tanks too) on the vessel. List and trim can affect the
accuracy of tank quantity calculations due to air entrapment when pressed up.
Ideally they should be sounded when sufficiently full to give a good sounding,
but when no air can be trapped in pockets.
1-455
Reliance has to be placed on the figures given by the builders for tank capacities
and all the other hydrostatic information provided. These are usually reasonably
accurate but are occasionally unreliable and an error of about one tonne per
1,000 tonnes can be introduced because they sometimes assume fresh water
density as being 1.0000 at 15C; a slight inaccuracy.
1-456
Finally, and often with some haste with the master, pilot and terminal operator
breathing down the surveyors neck as the ship is about to sail, the surveyor is
required to complete the calculations and confirm the quantity of cargo loaded
or discharged.
1-457
A marine surveyor taking proper care, can expect to obtain reasonably accurate
results from a draught survey. It is accepted in most dry bulk trades that an
accuracy of about 0.5% is reasonable and feasible provided the quantity is large
enough. Much depends upon the co-operation received from the ships
personnel and whether they want the surveyor to arrive at an accurate figure or
not. Sometimes owners and charterers will deliberately hinder accurate readings
so as to obtain a figure more favourable to their position, and surveyors need to
be fully alive to this possibility.
1-458
Of course draught surveys will not account for cargo lost through spillage when
grabs are handling the commodity into and out of the vessel. Another consideration
has to be given to water inclusion through rain or condensation, and for this
sampling is likely to be required. It does not however normally constitutes part of
the actual draught survey. A comparison should be made between the figures
obtained from the draught/ ullage surveys and weightometer figures, although the
surveyors figures are the principal ones used.
To what particular considerations would you pay heed when
carrying out a draught survey for the loading of a 20,000 ton bulk
carrier?
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12.7
SUPERVISORY/OVERSEEING SURVEYS
1-459
Surveyors may sometimes be called in to advise shipowners, charterers and

shippers with regard to certain types of cargo and its handling. More often than
not, however, they will be instructed to actually oversee or supervise its handling
in which case they will be acting clearly as an agent of their principal and need
to fully understand their legal position when doing so.
12.7.1
Pre-shipment Surveys
1-460
Shipowners and charterers sometimes call for a survey to be carried out at a

shippers premises so as to gain a better understanding of some unusual
commodity offered for shipment. Occasionally surveyors may be called upon by
shippers to advise on packaging and handling where shippers are unfamiliar with
a new trade, but the more usual situation is for a surveyor to be retained for this
purpose by the shippers underwriters. Surveyors will then be expected to advise
the shipper, recommend packing and handling, possibly then going on to discuss
these matters with the carriers who will be conveying the goods from the shippers
premises to the port of shipment, and possibly also with the ocean carriers.
1-461
P&I clubs sometimes call for pre-shipment surveys for cargoes that commonly
give rise to claims on shipowners. Steel is a commodity which presents
problems with regard to rust and care is needed in making sure that bills of
lading are appropriately claused, and this may require a surveyor to have
particular experience with the commodity or manufactured item involved.
12.7.2
Loading Surveys
1-462
Loading surveys may be required as an extension to the service provided in

4.6.1 above or may stand alone. When they are performed by surveyors acting
for the shippers or their underwriters, surveyors need to be particularly
conscious of their position.
1-463
Access to a container during stuffing may present little difficulty, particularly

where it occurs at a shippers premises, but access to a ship (not often refused
during loading) is at the courtesy of the shipowner or charterer. However,
although possibly permitted to board the ship, the surveyor is generally not in a
position to give any orders to stevedores or others concerned with the loading
unless acting for the shipowner or charterer. The surveyor, if acting for the
shipper or their underwriters, will probably not have any authority and can only
make recommendations which the ships employees may or may not heed. The
result of disregarding the advice may be that loss or damage arises in handling
or later during the voyage. Where the surveyors recommendations are
disregarded and damage results as a consequence it would be prudent for the
marine surveyor to obtain a witness to the facts regarding the recommendations.
1-464
In any event surveyors should state their recommendations clearly in the survey
report and state that these were offered. These facts then also need to be
conveyed in writing to the ships representatives. Ideally this should be as soon
as possible after the cargo handling has taken place and certainly before the
ships departure. The information may play a significant part when later
1-130
Module 1
considering the liabilities of the parties, and if conveyed in writing at an early

stage its evidential value is considerably enhanced. Of course, where a
surveyors recommendations during loading are accepted by the ship, possibly
against its own representatives inclinations, and loss or damage is suffered,
marine surveyors could find themselves with a responsibility for that situation.
12.7.3
Securing/Lashing Surveys
1-465
Marine surveyors are often called upon to inspect the securing of cargo, both in a
ship and in a container. In a conventional ship this is usually the function of the ships
surveyor who certifies that the shipowner or charterer has taken all reasonable
precautions to stow and secure the cargo for the forthcoming voyage. In a container,
unless packed by the ships representatives, it is more likely for the survey to be
carried out by the shippers or underwriters surveyor. Its purpose is then to
endeavour to establish that, if movement damage occurs in transit, it has been
caused by the actions of the carrier and not by the shippers inadequate securing.
1-466
The surveyors certificate testifies to the method and extent of securing and
lashing, and where stowage is on deck, also to any additional precautions such
as temporarily securing by welding to the deck and ships structure.
1-467
Many nations have regulations regarding the carriage of cargo on deck and
government surveyors may sometimes be required to attend to approve and
issue their certificate.
12.7.4
Discharge/Out-turn Surveys
1-468
Much the same comments apply to the surveys for loading surveys, to the extent
that the survey is intended to provide information on the handling, but this time
during discharge. The surveyors, if acting for the consignees or their underwriters, may be required to extend their services to the subsequent handling in
the port area, with a possible further requirement, particularly in the case of a
heavy lift or expensive machinery vulnerable to damage, to cover securing onto
the road or rail vehicle for inland transport.
1-469
Checking for damage received up to the time of discharge can also be an

important part of the discharge/out-turn survey. This may involve no more than
an inspection of a particular commodity, perhaps a consignment of machinery or
other goods, which may be susceptible to damage or which has suffered known
damage in stow. In the latter case the ship may not permit the receivers surveyor
to attend on board, but a great deal depends upon the relationship between the
particular shipowner/charterer and the receiver.
1-470
If there is known to be a problem of damage from heavy weather on a voyage,

or any other cause, surveyors will often be instructed to attend a discharge
survey on behalf of the ship and possibly also for the receivers and their
respective underwriters. Even if there is no known damage receivers, or more
probably their underwriters, knowing that a cargo is susceptible to damage, will
often commission a discharge survey as this may later make it easier to pinpoint
liability for any damage.
1-131
Module 1
1-471
When damage is suspected a surveyor may be called in to witness the opening

of a hold or a container and then to determine what, if any, damage is present.
It will be important to identify the cause or causes and, if there are more than
one, to apportion the extent of damage between the causes.
1-472
However when the vessel herself has been involved in a major casualty, an outturn survey may become an essential requirement and part of an extensive
operation. Following grounding or a fire there may be very extensive damage to
cargo, and the shipowner may have declared a general average. If this is the
case then it is likely that a number of surveyors representing different interests
will be concerned.
1-473
It will then follow that a general average surveyor and an average adjuster will
be appointed by the shipowner. The former will have to record the condition of
the cargo discharged from the ship and the latter will have to adjust the average
in due course. Where a large ship is carrying a general cargo this can be a huge
undertaking for both.
1-474
The General Average surveyor will have the responsibility of sighting every item
of cargo as it is discharged, to consider the extent of damage from possibly
several causes, arrange for joint surveys to be carried out with receivers
representatives and finally compile a list of every item against its bill of lading
number. All this information must then be included in the report which will cover
the circumstances under which the general average was declared together with
the disposal of each item of cargo and a record of their losses and causes.
1-475
Where fire is involved the surveyors work is complicated by the fact that there
will almost certainly be at least three causes of damage to some of the cargo.
There will be heat damage, smoke damage and probably water damage, the
latter resulting from its extinguishing. The extent of damage has to be considered
for each item out-turned.
1-476
Where a grounding is involved with the vessels holds flooded, or where a fire
may have been extinguished by deliberately flooding a hold, there can be
widespread loss of shipping marks in a general cargo. This complicates the
surveyors task still further in trying to identify ownership. Because of its
complications it is usual to appoint a firm of general average surveyors in this
situation as the volume of work can be so extensive that no individual could
possibly handle it.
1-477
General Average surveys also generate work for other surveyors in the region
as underwriters are likely to require their services to attend to their customers
needs. There is much to be gained from full co-operation between the
underwriters surveyors and the general average surveyors. Following a major
casualty underwriters may group together in appointing one firm of surveyors to
look after all cargo interests rather than have a number of different individuals or
firms acting for them.
1-132
Module 1
12.7.5
Steel Cargoes
Figure 11
Coils of Wire Awaiting Shipment
1-478
Where coils of steel or special steels are involved surveyors should check and
note the wrapping and banding which is likely to have been applied to them. P&I
clubs can be faced with unjustified claims for steel allegedly out-turned in
unsatisfactory condition. Some rusting may appear likely to be of considerable
concern when in fact it is not really of significance. Any surveyor involved with a
steel cargo, when checking shipped condition is a part of the role, should seek
comprehensive guidance from the appropriate P&I club.
Figure 12
The Port of New Orleans has Supplied this Photograph Taken in
November 2000 of Steel Wires being Inspected During Loading at that Port
1-133
Module 1
1-479
A correct description of the loaded condition of the steel with regard to rust and
other physical damage such as bending requires particular attention. It is
essential to establish the degree of rust present at the time of shipment, bearing
in mind that all unprotected steel is susceptible to light surface oxidisation, but
this tends to be an overall condition following exposure to the atmosphere and
is rarely detrimental although it may warrant recording
1-480
Steel is often shipped on bulk carriers. Steel does present one problem on bulkers
with regard to stability. Unlike the conventional general cargo ships bulkers have
no tween decks except where there is provision for suitable ballasting to
overcome the low cargo centre of gravity of the mass of steel. Movement of steel
within a hold in a seaway can spell major problems, if not disaster.
12.7.6
A Summary of Bulk cargoes in general
1-481
When a surveyor attends any bulk cargo the following list briefly outlines the key
tasks:
(a)
To measure the quantity of the cargo loaded or discharged
(b)
Confirm the quality of the cargo loaded or discharged
(c)
When instructed, to sample of the cargo generally for moisture content or

grade.;
(d)
To check the cleanliness of the cargo spaces and freedom from infestation.
(e)
To check the stability and longitudinal stress calculations of the ship.
(f)
To check the watertight integrity of the ships hatch covers.
12.8
TIMBER DECK CARGOES
1-482
As with most deck cargoes, the surveyor should be satisfied that the deck is
capable of carrying the complete timber load. Timber deck cargoes, depending
upon their quantity, can also present a requirement for compliance with the
SOLAS and Load Line conventions.
1-483
Timber deck cargoes obviously have the additional threat of being exposed to
sea water and gaining additional moisture. Stability and securing are two of the
principal difficulties where the amount of this deck cargo is extensive.
1-484
Compliance with the timber deck regulations is essential. Satisfactory stability

and hull stress under the worst conditions are major factors to which attention is
required before a loading plan is acceptable.
1-485
Although the recording of quantities of timber cargoes is relatively straightforward, securing is of major concern, and requires specific attention by the
surveyor. The cargo must be securely lashed, the lashings fit for purpose and the
stow properly secured. Thereafter cleanliness, absence from infestation, and
trimming all require careful attention.
1-134
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Figure 13
This Photograph Taken in October 2002 is Supplied by the European
Commission and Shows Timber Awaiting Shipment to Finland, Sweden and
Norway from the Latvian port of Skulte. This is a Typical Cargo of Forest
Products Carried on Relatively Small Vessels and its Loading and Stowage
Requires Careful Supervision
12.9
BULK, LIQUID CARGO
Figure 14
A Typical 300,000 dwt VLCC, the Tateyama, Owned by NYK,
Panama Flag, Built by NKK Japan in 2002
1-135
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12.9.1
Oil and chemicals
1-486
The vast majority of vessels that fall into this category are oil tankers. These
vessels carry cargoes of various grades of oil and its derivatives but with an
occasional cargo of liquid chemicals. However the last quarter of a century, has
seen a dramatic increase in the specialist chemical and liquid gas carriers which
today comprise a significant part of the worlds tanker fleets.
1-487
The carriage of bulk chemicals has become a very specialised trade with the
chemical tankers being purpose-built and operated by a small number of
shipping companies which specialise in their carriage. These surveys vary in
complexity and some of the precautions required depend upon the toxicity of the
chemicals which are categorised by the US Coast Guard as:
(i)
Practically non-toxic.
(ii)
Slightly toxic.
(iii)
Moderately toxic.
(iv)
Highly toxic.
1-488
Surveys associated with the loading and discharging of products of the

oil/petroleum industry and with the chemical industry are amongst the most
demanding on surveyors. They require careful attention to detail.
1-489
In most cases the requirement is for dual attendance that is, attendance on
both the ship and the shore installation. This may be impractical for one surveyor
and two may be required, one in each place. The surveyor(s) may be required to
ascertain:
1-490
1-136
(i)
The quantities loaded/discharged.
(ii)
The quality of different samples. (This is largely a laboratory function but

will involve the surveyor in sampling.)
(iii)
That there is no avenue for cross contamination.
Attendance on board is usually the more demanding and will involve:

(a)
Checking that overside and cargo tank valves are all closed except those
actually required for and during the immediate cargo transfer.
(b)
Sounding ballast and fuel tanks (and making allowances for quantities
consumed by the ship).
(c)
Pump and pipeline cleanliness and, before loading, tank cleanliness.
(d)
Sampling of ballast water pumped out of cargo tanks.
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1-491
1-492
(e)
Ascertaining the vessels experience factor (checking records of past

cargo operations to determine the differences between ship and shore
figures for quantities handled).
(f)
Sampling the cargo loaded/discharged (and may involve the surveyor in

witnessing the testing of the product).
(g)
Measuring the tanks before and after pumping.
(h)
Recording the trim and list.
(i)
Checking and recording temperatures.
Ashore the survey will include where possible:

(a)
Checking for water and sampling the content of the pumping lines.
(b)
Checking the state of the valves in the holding and adjacent tanks and witnessing their operation.
(c)
Sampling the holding tanks.
(d)
Measuring the content of the holding tanks before and after pumping.
(e)
Checking and recording temperatures.
Equipment required:
(a)
Measuring tape conforming to ASST standards (free of kinks, legible, with

a secure bob and checked regularly for accuracy).
(b)
Thermometers (also checked regularly).
(c)
Hydrometer conforming to American national standards or British standards.
(d)
Containers for samples.
(e)
Protective clothing (for chemicals).
1-493
Oil and chemical cargo sampling, unless the surveyor is instructed otherwise or
has good reason to depart from standard practice, is best carried out as outlined
in the Institute of Petroleums manuals on oil and chemical measuring techniques.
1-494
During loading operations, apart from sampling the cargo being shipped, the
prudent surveyor will also obtain samples of the cargo, slops and ballast water
on board at the commencement of loading.
1-495
Not all of the vast quantity of liquid bulk cargoes are carried in ships specially
designed for them and small parcels are carried in general cargo ships and
containerships. Deep tanks, often fitted with heating and pumping arrangements,
are sometimes located in cargo ship holds and are used to carry small quantities
of chemicals, oils and other liquid cargoes. The advent of the small parcel tanker
has seen a reduction in the number of cargo ships with deep tanks.
1-137
Module 1
Figure 15
DNVPS Surveyors Preparing Fuel Samples May 2004
1-496
Latex, coconut, sunflower seed, rape seed, linseed and other vegetable oils are
commonly cargoes loaded in small quantities in eastern ports for discharge in
Europe and the US and for which cargo ships deep tanks are often suitable,
depending upon quantity. Tallow is also carried in deep tanks between countries
having a significant animal products trade.
1-497
The surveyors role in connection with these is usually to take samples and to
verify the cleanliness and fitness of tanks, pumps and lines to receive or
discharge cargoes. They will often be required to confirm quantities shipped or
received.
1-498
A word of warning concerning tank inspections. Toxic residues of cargo, but also
little used tanks, can be lethal to unsuspecting surveyors. Each year a number
of lives are lost by failure to check the vapour content of a tank before entry, and
empty tanks which lack oxygen through the effects of rust generation are as
responsible as any. Where there is any doubt surveyors must always check
before entry and have a buddy to watch over them. The buddy must be fully
conversant with the operation and whereabouts of breathing equipment which
must be nearby and accessible.
1-499
Recommendations for entering enclosed spaces on board ships as provided

under IMO resolution A864/20 warrants attention and includes a pre-entry
checklist It is an essential document which should be carried on board all
vessels and all seafarers should make themselves familiar with its contents if
they are ever likely to have to enter cargo spaces or tanks. Refer to the Appendix
7 to this module for a list of its contents.
1-138
Module 1
12.9.2
Liquid gas
Figure 16
1-500
Another highly specialised area for which ships have been designed in recent
years is that of the carriage of liquid natural and other gases. Standards are, in
some cases, still being evolved and outside of the few carriers operating these
ships there is very limited knowledge and experience.
1-501
Most of these gases are vapours at ambient temperature and pressure. For
carriage by sea they are liquefied by:
(i)
refrigerating to drop the temperature but still at atmospheric pressure;
(ii)
a combination of part refrigerating and part pressurising;
(iii)
pressurising without refrigeration (the temperatures and pressures at

which gases liquefy varies vary very considerably).
1-502
From the surveyors point of view the requirement is principally that of ullage and
temperature recording followed by fairly extensive calculations to determine
quantity. Both measurements are usually made with ships equipment. Accuracy
is absolutely critical to correct results.
12.10
QUANTITY SURVEYS
1-503
We have already discussed draught surveys which are often carried out in the
case of bulk carriers. The name quantity surveys indicates the purpose for which
these surveys are required, ie to determine the quantity of cargo, bunkers or
dead freight. There are several methods by which quantity can be determined,
but not all are necessarily applicable to every case.
1-504
It is important that surveyors take great care in reading the instruments and
equipment available to them. All instruments should be kept clean, tapes free of
1-139
Module 1
kinks and hydrometers undamaged; the latter ideally made of glass having a
small coefficient of expansion. The calibration of instruments requires regular
checking and the results recorded so that any significant differences can be
applied to readings or the instruments discarded.
1-505
Measurements should be made where appropriate to API/ASTM (American

Petroleum Institute/American Standards Testing Methods) standards and, in
adverse conditions, several readings taken and averaged.
12.10.1
Weight, Measurement and Ullage
1-506
While draught surveys result in achieving weight measurement there are other
more direct forms of cargo measurement. Weighing, ullaging and metering are
usually more accurate than draught surveys for small quantities.
1-507
If the cargo has been conveyed to the ships side in railway wagons or road
trucks it can be physically weighed as it passes over a weighbridge. Deduction
of the vehicles tare weight results in the weight of the contents being
determined. In this case the surveyor will usually be required to obtain the weight
dockets from an independent weighbridge (many are sited at the entrance to
ports or wharves), check them and issue a weight certificate.
1-508
Many bulk cargoes are loaded by means of elevators and conveyor belts which
have weighing devices attached to them. However accurate weighing is
dependent upon proper test procedures being followed, when reasonably
accurate results can be obtained.
1-509
In the case of general cargo this can be weighed but, since freight is frequently
charged on cubic capacity, it may have to be measured to determine the space
it occupies. This is done by means of a tape measure and surveyors may be
required to check the measurements of a particular item, or possibly the space
occupied by a quantity of general cargo in a hold or container.
1-510
With liquid bulk cargoes the more common form of measurement is carried out
by taking an ullage of the liquid in the tank. With oil cargoes, for example, the
quantity can usually be determined by calculating the volume occupied by the
oil. This is normally done by measuring the unoccupied height above the liquid
in each tank (or as it is known in the trade as taking an ullage) to ascertain first
the unoccupied volume of the tank. From this measurement the quantity is
determined by applying the readings to the tank calibration tables.
1-511
A lesser used method is to take a sounding to measure the depth of the liquid
in order to obtain the volume occupied by the liquid. In both cases temperature
recording, usually at different levels to obtain an average, is necessary to
ascertain the density of the liquid. The surveyor must take care to ensure that he
has the density of the liquid in air at standard temperature and that he is using
the right API/ASTM table for the calculations.
1-512
The marine surveyor should also check whether any water is present at the
bottom of the tanks to distort the figures. A special sounding device is used for
this purpose.
1-140
Module 1
1-513
Quantities of ores and similar products are sometimes loaded as slurries and if
this occurs in an open roadstead, say at a single point mooring, weather
conditions may prevent a draught survey to an acceptable level of accuracy. The
alternative may be, after dewatering has taken place, to take a number of ullages
uniformly through the holds and calculate the quantity on board by volume using
the ores specific gravity and a factor to allow for the water content. The result is
unlikely to be very accurate but may sometimes be the only one available.
12.10.2
Fuel Oils or Bunkers
1-514
Bunker surveys are most commonly found in on-hire or off-hire surveys. However
a bunker survey may be called for as a stand-alone survey This requires the
surveyor to sound the fuel and diesel tanks or to witness their soundings by a
ships engineer and obtain temperatures where possible. Samples are not
usually taken unless there is any dispute over quality or if the surveyor is
required to witness bunkering. The surveyors ability to obtain a representative
sample from bunkers already on board is likely to be questionable.
1-515
For the reason mentioned in the last paragraph the surveyor needs to sight the
chief engineers records of fuel obtained at previous ports and note the specific
gravity recorded. This, after possible correction for temperature, is then used for
the calculation of quantities on board.
12.10.3
Deadfreight
1-516
Deadfreight is the amount of money payable to a shipowner by the charterer for

failing to load the cargo stipulated in the charterparty. Depending upon the terms
of the charterparty the payment may be due on the basis of an agreed weight,
cubic capacity or even per unit, ie pallet, to be shipped. If the charterer fails to fill
the agreed quota then payment is due to the shipowner for the shortfall.
1-517
A marine surveyor will be instructed to measure the quantity of cargo loaded and
the shortfall on contracted quantity, or the cargo space not filled as undertaken.
Some of the customary methods of measuring the quantity loaded may be
available to the surveyor, or alternatively a shortfall in weight may be ascertained
from lift still available as determined by draught. Where space is the issue then
actual measurement of vacant space may be the best method available.
1-141
13.
WARRANTY AND OTHER COMMERCIAL

TYPES OF SURVEY
LEARNING OUTCOMES
understand what is undertaken when carrying out Warranty

surveys;
be fully conversant with Performance, Commercial, Quality

and Quantity surveys;
understand how to deal with surveys involving conformity

with letters of credit; and
know the reasons for P&I club entry surveys.
13.1
WARRANTY SURVEYS
1-518
In some cases an Insurance underwriters will cover a risk subject to the condition that the assured provides a warranty that certain conditions are adhered to.
Underwriters often specifically require that the assured does or does not do
something which is warranted as being complied with. To satisfy themselves that
this is being undertaken by the assured they will appoint a surveyor to survey and
report relating to these warranties. Some common warranty surveys are:
Towage approval surveys
Lay up
Re activation after lay up
13.1.1
Towage Approval
1-519
This warranty survey requires the assured to arrange, normally at their own
expense, for marine surveyors to carry out the necessary approval surveys to
satisfy the requirement. Generally the surveyors used will have had considerable
experience in pre-towage surveys, however this may not be the case in remote
areas and where the tow is not expected to provide major difficulties.
1-520
In towage approval surveys, both the towed vessel and the tug(s) with their towing
gear have to be closely examined. Towage approval usually commences with an
initial survey of the craft to be towed, with the surveyor then providing written
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Warranty and Other Commercial Types of Survey
recommendations to the assured covering all matters requiring attention. These

may involve the crafts structure and will almost certainly involve its machinery
and equipment, particularly if the towed craft is to be unattended during the
period of the tow. Protection against sea/weather or other damage is often necessary. This survey usually takes place some days before the tow is due to commence so as to give adequate time for the assured to carry out the work and
have the surveyor confirm its standard and acceptability.
1-521
The surveyor will need to be satisfied that the tug is suitable and in fit condition
to carry out the task. Sometimes the surveyor may have to await the arrival of
the tug as suitable tugs are often not conveniently placed initially in the same
port as the tow. Some tentative approval based upon class records may be possible and in many cases the Bollard Pull certificate will give the surveyor a good
indication if the tug is powerful enough to undertake the task. However, the
surveyor should always check the date of this certificate, as tugs, particularly
those that are involved in the oil industry and also carry out supply vessel work,
do have a tendency to find their bollard pull capability reducing over time.
1-522
It is important for the surveyor to discuss with the tug master how the towing
arrangements are to be arranged and how the voyage is planned. Consider long
distance weather forecasting and discuss what plans have been made for the
tow to seek shelter during the voyage if required.
1-523
The other essential element to achieve a successful tow is the towing

connection. The tugs towing gear will also have to be checked and the surveyor
satisfied that its manning is adequate and its crew adequately qualified. This
requires the surveyor to be satisfied that the towing gear is adequate and that
the means of making it fast on board the tow are also approved. Frequently a
surveyor will need to make recommendations for modifying existing arrangements
or specifying new or additional ones which will almost certainly include
emergency, or back up gear.
1-524
Prior to the tug and tow sailing the surveyor will ensure that all the recommendations have been complied with and that, if the tow is unmanned, the tug crew
are conversant with its pumping arrangements and understand the operation of
its machinery if required.
1-525
The tug master will have to be given written advice that certain restrictions are
placed upon the performance of the towage operation. These may include
weather restrictions (relating to departure), routeing, towing speed, checking the
performance of the towed vessel and gear and others as appropriate for the
nature of the operation.
1-526
It is important that the Marine surveyor understands that towage is a potentially

dangerous enterprise and requires skill and good equipment. Provided the surveyor is satisfied that arrangements are warranted under the underwriters
instructions the towage approval certificate can be issued.
13.1.2
Lay-up
1-527
Lay-up surveys occur because trade falls off and a ship becomes temporarily
surplus to requirements or a ship may be taken out of service awaiting a buyer.
1-143
Module 1
When laying up a vessel an owner will need to notify the underwriters and P&I
club in order to change the conditions of insurance. The owner will have to
warranties that vessel has been prepared for the change of conditions. The
required warranty surveys to see that this has been done are usually called by
of a hull underwriter or of a P&I club, and very possibly of both. The key
requirements are:
(a)
That the lay-up berth must be safe and secure for the vessel.
(b)
That the ship, machinery and equipment must be secure against intrusion
and deterioration.
1-528
The former involves the site itself which has to be both suitable and safe, with
the vessel adequately secured in it. A satisfactory berth requires the location to
be acceptable from a physical hazards aspect, ie wind and tide, water depth,
current, holding ground, shipping movement, emergency and maintenance services, unauthorised persons access and, of course, means of securing the vessel which may be alongside, at buoys or at anchor, ie the moorings in the widest
meaning of that term.
1-529
The second requirement is for on-board security for the equipment and preservation of the machinery. It also concerns watertight integrity and reducing to a
minimum the possibility of ship side valves permitting unwanted water ingress or
leaking hatches allowing rain or spray to enter the vessel. It also concerns emergency pumping, and fire-fighting services, but it is probable that these services
will have to be provided by external means.
1-530
Unless proper precautions are taken, extended lay-ups can damage machinery
which may be largely or completely idle for lengthy periods. If vessels are not
properly secured in their berths or properly shut down they also pose liabilities
to others. Consequently it is not surprising that both types of insurers, hull and
P&I, are likely to require certain standards to be met if they are to be expected
to continue the insurance cover.
1-531
It is important that regular inspections are carried out by competent persons during the period of the lay-up and will normally be one of the warranty surveyors
recommendations for lay-up approval. Even though a watchman may be
employed he/she is rarely skilled or competent to care for the ships structure or
machinery.
1-532
Even though the vessel is not working it is normal to maintain a vessel in class
during lay-up and this will also involve the class surveyors requirements being
adhered to but these are unlikely to be very different from the underwriters
requirements.
13.1.3
Recommissioning/Reactivation
1-533
Obviously the warranty surveys are the reverse lay-up surveys and serve to
satisfy, again usually underwriters and class, that proper steps have been taken
to return the vessel to a suitable state in which it can resume trading. Amongst
other benefits surveys of this nature will help to ensure that crew negligence,
following resumption of service, does not play a major part in any subsequent
1-144
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machinery problems. There can be unfortunate consequences if the correct

steps are not taken during the re-commissioning of a vessel especially with
regards to machinery.
1-534
Attention to electrical equipment, always susceptible to damage by moisture and

inactivity, is a major part of this survey with all circuits being tested for insulation
resistance.
1-535
At the completion of reactivation a full sea trial will probably be required under
the supervision of both the class and independent surveyors involved.
13.2
PERFORMANCE SURVEYS
13.2.1
Machinery Performance and Fuel Consumption
1-536
The owners of new ships and of vessels which have undergone major refits or
repairs usually require to be satisfied that their performance on completion
complies with specifications.
1-537
Owners of chartered vessels sometimes find themselves in dispute with

charterers over their vessels stated performance. Fuel consumption in excess
of stated figures, or speed not achieved as called for in the charter-party, not
uncommonly give rise to disputes.
1-538
In each case the owner or charterer, or the shipbuilder or repairer, may seek
independent verification of the performance and fuel consumption figures and
these can be provided by an engineer surveyor. This surveyor may be a class
surveyor or a private surveyor.
13.3
COMMERCIAL SURVEYS
1-539
Traders and shippers that are involved with goods and commodities in
international trade may require the services of a cargo surveyor. A common
situation which arises and may call for surveyors requires them to carry out
inspections in an entirely independent capacity so as to provide a firm with a
certificate covering the surveyors findings. This certificate may then be used to
provide independent verification of some condition which the principal may wish
to establish to other parties to a transaction.
1-540
On occasions the condition, or a shortfall on specification, may be readily

apparent and will present a surveyor with little difficulty in reporting. However in
many cases, unless marine surveyors have specialised in the particular subject
matter of such a survey, they are generally not competent to carry them out.
They may lack the personal experience to report authoritatively. If instructed they
may need to call in experts well-versed in the specialised trade involved. The
experts certificate then forms a part of the surveyors report. The surveyor will,
because of his accepted impartiality and integrity, have provided a useful service
in facilitating the provision of the independent report.
1-541
As this can require specialist skills in understanding certain commodities any

marine surveyor instructed to carry out a commercial survey should ensure that
1-145
Module 1
the principal fully understands the competence under which the surveyor will
carry out the work. This must be before undertaking any assignment which
differs from that which surveyors customarily perform, and which may involve the
use of experts for part of a survey.
1-542
There are three principal occasions when such a certificate may be required:
Quality surveys
Conformity with Letter of Credit (Before Shipment)
Conformity with Specification of Sample (After Shipment)
13.4
QUALITY SURVEYS
1-543
Often referred to as look, sniff and feel surveys, this type of survey is almost
inevitably carried out by an expert with extensive experience in the particular
types of commodities. It is frequently carried out with grains and cereals, so as
to certify that the commodity conforms to a certain understanding within the
trade.
1-544
This type of survey is rarely undertaken by a marine surveyor, due to the need
for the specialised depth of knowledge required, although the sample may be
taken by one. This requirement by a principal for a survey may be yet another
opportunity for the surveyor to act as an independent coordinator by engaging
the services of a suitable expert.
13.5
CONFORMITY WITH LETTER OF CREDIT (BEFORE SHIPMENT)
1-545
The financing of international trade is carried out largely through the banks, and
buyers commonly ask their banks to establish letters of credit in favour of an
overseas seller. Before parting with their clients money the banks are required to
be satisfied that the goods being shipped conform to the general description, or
sometimes comprehensive specification, against which their clients are purchasing.
1-546
It is quite common for the services of a Lloyds Agency to be used in this process
with the Lloyds Agent appointing an independent party of known competence and
integrity to carry out the necessary inspection and verification. This party will often
be a marine surveyor, either one on the agency staff or one well-known to it.
1-547
The marine surveyors role will then be to carry out an independent verification
by checking that the goods conform in number and description to those covered
in the shipping documents. While this is the usual situation under a letter of
credit, as explained above, a marine surveyor may have difficulty when conformity with a complex specification is a requirement and other expertise may
then be required.
1-548
A difficult situation can arise when time deadlines are close to the actual
completion of loading. The shipper may have stipulated that the cargo must be
loaded entirely by 23.59 hours on a certain date. However the surveyor may find
he will be asked to sign off the cargo that was only 98% loaded by that time.
Knowing that the cargo will be completed within an hour, the surveyors integrity
will be tested. Understanding your principals needs here is essential.
1-146
Module 1
13.6
CONFORMITY WITH SPECIFICATION OR SAMPLE (AFTER SHIPMENT)
1-549
In the previous paragraphs reference is made to the situation which arises

before shipment. However goods and commodities are often shipped against
specification or sample and with no letter of credit having being set up. It is
sometimes then found that when the goods are received at destination there
may be a significant difference in quality, unrelated to any fortuity during the voyage, and which may provide grounds for a claim against a supplier for breach of
contract. This breach may have arisen from misunderstandings or possibly due
to fraud.
1-550
The situation is one of many in which surveyors are likely to be retained because
of their independence and in which they are required to compare specifications
or samples with the goods received, and to report accordingly. Where chemicals,
for example, are tested by a laboratory the surveyor may only be able to witness
that the analysis is conducted in accordance with an appropriate standard. For
the surveyors protection the report must be qualified accordingly.
13.7
P&I CLUB ENTRY SURVEYS
1-551
The Role of Protection and Indemnity (P&I) Clubs commenced during the
nineteenth century when shipowners found themselves with liabilities which their
traditional hull underwriters (Lloyds) were unable or unwilling to cover. In order
to solve the problem groups of shipowners formed themselves into mutual
associations and agreed to share each others claims. These early organisations
have now developed into 13 Mutual Insurance Associations, and today. P&I
Clubs, which between them insure the liabilities of some 95% of the worlds
ocean going tonnage.
1-552
The P&I clubs provide cover for a shipowners liabilities, not the fabric of the ship
itself. The risks covered will usually include:Death and personal injury of
Seamen
Passengers
Third parties
Liabilities in respect of stowaways or persons saved at sea.
Liabilities arising from collisions.
Liabilities arising from groundings.
Liabilities arising from damage to fixed and floating objects.
Liabilities arising from pollution.
Liabilities arising from wreck removal.
Liabilities arising from towage operations.
Liability to cargo.
Together with other legal and other costs associated with dealing with these
claims.
1-553
P&I clubs operate as a mixture of an insurance company, a law firm and a loss
adjuster. This means that a club should be able to assist a shipowner in dealing
1-147
Module 1
with every aspect of a casualty from finding experts and contractors to deal with
the immediate casualty through to legal advice and paying claims. The P&I club
exists in order to help the shipowner and pay his liability claims. Almost always
the shipowner and his Club will work together in order to solve the problems and
it is very rare that a Club will be in dispute with a shipowner over cover.
1-554
However P&I clubs are principally liability underwriters and they work on a
mutual basis. That is to say that they do not make a profit and only charge their
members for the costs of insuring their liabilities The principal exception is that
they may also insure the fourth of any hull damage not covered under the hull
policy.
1-555
As they work on a mutuality basis it is important that when they consider

accepting a new member they owe it to the other club members to be satisfied
that they are entering a shipowner who can be expected to maintain or raise the
standard that is expected of the other members.
1-556
A P&I club is therefore particularly interested to learn how the prospective new
member runs his ship. The hull condition is clearly important, but the condition
and safe operation of the equipment, and the owners housekeeping standards,
are the main concern. The standard of training of the crew is also an important
consideration.
1-557
Those who have studied the Prestige incident will know the potential for causing
environmental pollution is receiving increasingly close scrutiny and such
precautions such as the phasing out of single-hulled tankers are one example of
the direction which this is taking. It was the P&I club that raised the enormous
bail required to release the master of the Prestige from prison whilst awaiting
trial. Because of the enormous costs associated with oil and chemical spills P&I
club surveys are concerning themselves more than ever with this aspect.
1-558
The survey required has an emphasis on the vessels potential to create

liabilities, and is in general more extensive than that which will satisfy the
on-hire/off-hire requirement of owners and charterers.
List the types of commercial surveys that an independent
surveyor may be required to undertake and in each case suggest
who are likely to the principals.
1-148
14.
TYPES OF SURVEY WHEN THINGS GO

WRONG
LEARNING OUTCOMES
be fully conversant with Insurance Cargo Loss Surveys;
understand the requirements of Damage and Repair

Surveys; and
have a clear understanding of Accident Investigation Surveys.
14.1
1-559
In the previous chapters we have discussed surveys that are carried out
hopefully to ensure that the voyage is safe and the authorities, the shippers and
the shipowners are all satisfied. Unfortunately it does not always work out that
way and Marine surveyors will find themselves involved in trying to sort out the
situation. In Figure 17 you will see a not too rare situation of a container ship
arriving in port after bad weather. Here we have damaged containers and
possibly some containers lost overboard. The marine surveyors will be seeking
to advise the underwriters on what went wrong.
14.2
INSURANCE CARGO LOSS SURVEYS
1-560
Surveys on ships and cargo which have suffered damage or loss constitute a
prolific source of work for surveyors. When claims are made on underwriters the
principal facts about which they need to be satisfied are that the subject matter
of the insurance has been damaged in the manner and to the extent claimed,
that it has been caused by an insured peril and that, where the claim is for the
costs of repair, that repair costs are reasonable.
1-561
Underwriters need to be satisfied of these facts so that, in the first instance, they
can meet the claims of their assured where appropriate and, in the second that
they are justified in pursuing recoveries under subrogation against some other
party who may have a liability for the loss or damage.
1-562
Marine surveyors of almost all specialisations become involved in these claims

and are almost always required to provide a report. In presenting their report, which
1-149
Types of Survey When Things Go Wrong
Module 1
Figure 17
is partly a certificate of fact but which often also contains carefully considered
opinion, they may have to be prepared to stand by it under cross examination
later in court.
1-563
In addition to reporting on the usual three requirements of nature, cause and

extent surveyors will generally be required also to advise the assured on
mitigation of the loss and will be expected to indicate in the report the extent to
which the claimant has carried this out.
1-564
On occasions marine surveyors with extensive marine insurance knowledge

are asked by underwriters to comment on the underwriters liability and adjust
the claim under a policy, also possibly advising on third party liabilities and
initiating recoveries. However this is outside the normal extent of a surveyors
role and these additional matters should only receive attention if specific
instructions are received to do so.
1-150
Module 1
14.2.1
Verification of Damage/Loss
1-565
Loss can be total or partial and the nature of it can vary considerably. It may
result from non-delivery (theft, pilferage etc), involve damage arising by mechanical means (impact for example) or chemical deterioration due to wetting or contamination by some substance.
1-566
The nature of the loss or damage needs to be investigated and confirmed. The
report, supported where possible by photographs, needs to paint a picture for
the underwriter who must be assisted to understand as much as possible about
the circumstances giving rise to the claim.
14.2.2
Investigation of Cause
1-567
Although in most cases the causes of damage may be perfectly obvious and present the surveyor with little or no difficulty in explaining them, there will be occasions
when a surveyor is faced with a really difficult case for investigation. Quite often this
will require support from other experts, and will require some real detective work to
find the cause of loss or damage. The cause may be obscure and there may be
more than one cause, in which case each has to be investigated and given its
appropriate weight. Inherent vice, when applicable, will be an important cause to
ascertain and if damage has occurred prior to the probable attachment of the transit policy, or subsequent to it, this fact will also be important to determine.
1-568
It is therefore essential that the surveyor is very clear about the clients specific
requirements before carrying out the survey or time may be wasted and a client
left less than satisfied with the service provided even if this was because the
clients specification was loose or misleading. The difference between fact and
opinion can be fine and often depend upon the source of the information; the
surveyor may well need to decide whether a crew members opinion about the
vessels condition or an event qualifies as fact or speculation.
1-569
Having stated that the surveyors report should be factual, the surveyor should
also be assiduous in collecting all the information and evidence that there is
available and from as many sources as reasonably practicable. Thus the
surveyor needs to list carefully all the potential sources of information which may
be available and to prioritise them in terms of relevance, availability and
accessibility. This applies to both hard evidence, such as technical facts,
documentation, measurements etc, and soft evidence from interviews and
observation.
1-570
Since all information has a value, in certain circumstances the surveyor may find it
advantageous to make a shadow report to the formal, factual report which contains
additional information of a less factual nature which is for his personal use and which
can be particularly useful if the investigation has to be resumed at a later date.
1-571
Since the basis of a survey is fact, it is worth noting again that, even in a
contentious situation, such as after an accident or when in dispute, the basic
facts can be recorded jointly by both surveyors without prejudice to either party,
saving considerable time and effort on behalf of all concerned.
1-151
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1-572
Sometimes the marine surveyor will be unable to do more than give a carefully
considered opinion as to the cause based upon all the evidence available. It may
be necessary to state that there is no conclusive evidence as to cause and that,
in the surveyors opinion, the loss or damage has resulted, on the balance of
probabilities, from some particular event or other.
1-573
Once in a while the surveyor may have to admit that it has not been possible to offer
any reasonable explanation of cause and, in this case, the underwriter will have to
decide how to respond to a claim, possibly giving the benefit of the doubt to the assured
or alternatively taking the view that the assured has failed to discharge its onus of proof,
for this onus generally rests with the claimant to establish. The importance of the
surveyor carrying out a careful investigation as to the cause of loss is obvious.
14.2.3
Consideration of Repairs and Costs
1-574
When there is a genuine claim under the policy then the underwriters may
require a surveyor to see that the quantum of the claim is justified. Where repairs
are required the question can then arise as to the most appropriate method of
repair as well as the basic consideration that the costs must be reasonable.
1-575
Marine surveyors that deal with Hull and machinery are usually well-versed in
the discipline relating to ship repairs and may experience little difficulty in
providing recommendations for repair and probably for reasonable repair costs
if the repairs are to be carried out in the ports in which they normally operate.
However, cargoes are of such a diverse range that cargo surveyors can only
expect to bring expertise to bear on certain types of cargoes in which they may
have specialist knowledge.
1-576
Sometimes this can present surveyors with a problem and they become
dependent upon obtaining the services of independent experts if the likely
quantum of claim is sufficient to warrant it; otherwise they have to rely upon their
own judgment and enquiries. Experienced surveyors usually find, by carrying out
some diligent research, that they are able to satisfy themselves whether a repair
cost or allegation as to depreciation is realistic or not.
1-577
To summarise the following list is an outline of the matters to which in general

surveyors should direct their observations and enquiries, including their findings
in their reports. Some details will obviously apply to hull or cargo claims but
perhaps not to both.
1-152
(a)
Name of instructing party, dates of instructions, places and dates of surveys.
(b)
Names of those attending surveys and whom they represent.
(c)
Description of the interest surveyed.
(d)
The nature, extent and cause of loss or damage. (In the case of hull claims
the extent may need to be very fully detailed to enable others to consider
likely repair costs).
(e)
Steps taken to mitigate the loss or damage.
(f)
Cargo Only
Module 1
(i)
Shipping marks and numbers.
(ii)
Transit history places and dates of loading, stuffing, devanning,

delivery etc.
(iii)
Carriers names and conveyances.
(iv)
Damage noted when goods changed hands.
(v)
Details of packaging and whether customary.
(vi)
Whether pro forma claims have been made on carriers.
(vii) Documents, ie shippers invoices, bills of lading etc.

(viii) Sound market value of damaged goods.
(ix)
(g)
Proposed method of determining the loss. ie agreed depreciation,

sale in damaged condition, sale at auction. (If sold prior to completion
of the report, details of the proceeds and costs to be shown).
Hull Only
(i)
Whether repairs are to be proceeded with or deferred.
(ii)
Detailing of repairs associated with alleged cause and those which

are not owners repairs.
(iii)
Recording dates/times of commencement and completion of repairs.
(iv)
Recording dates of previous drydocking and of any drydocking

associated with these repairs.
(v)
Extent to which overtime worked reduced the time taken for casualty
repairs.
1-578
Preliminary reports, which may be required by underwriters but which are not
normally public documents, should show estimates of costs for loss or damage.
14.3
DAMAGE AND REPAIR SURVEYS
1-579
Damaged ships have to be repaired in a manner that satisfies the classification

society so as to ensure the continuity of class and also the statutory requirements.
Class and administration surveyors attend as soon as possible after a casualty to
determine the nature and extent of the repairs. A surveyor usually then attends
from time to time during the course of repairs to ensure satisfactory workmanship
and materials are employed and that the repair satisfactorily restores the vessel to
the standards required of her. Quite distinct from these routine surveys are those
which become necessary following a casualty.
1-153
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Figure 18
In May 2003 the Polish Container Ship Gdynia was in Collision with Cosco Bulk
Carrier Fu Shan Hai Which Later Sank Offshore Denmark, in the Baltic Sea
1-580
The underwriters will also have particular interest in ascertaining the cause,
nature and extent of damage or loss for which they are being called upon to
indemnify their assured following a casualty. They will normally instruct an
independent surveyor but it is not uncommon for them to request that the class
surveyors, who have attended the vessel on behalf of their society, provide them
also with a report. In these circumstances the surveyors fee is divided on an
agreed basis between the shipowner and the underwriter.
1-581
The Marine Surveyor will draw up a full schedule of all the damage sighted, detailing
its nature, its extent and the recommended method of repair or replacement. They
usually then report this in two columns as found and recommended. In practice
the recommended repair is the result of consultation, and usually agreement, with
the ships representative and/or underwriters surveyor.
1-582
Where it is unlikely that the case will require a legal investigation or settlement of
damages, the Marine surveyor should bear in mind that the survey report will
ultimately be used by an average adjuster. This adjuster will rarely have seen the
damage and will be totally reliant upon the surveyors eyes and observations. The
report must therefore be constructed after survey with this clearly in mind, giving
all the information required to enable an adjustment of any claim, general average
(GA) or particular average (PA), to be drawn up, often several years later.
1-583
A marine surveyor who is called upon to carry out this type of survey for the first
time may be well-advised to study a major hull damage Particular Average
adjustment to see how adjusters handle the various expenses. This will assist
surveyors in learning exactly the sort of information required in the survey report.
The Rules of Practice of the Association of Average Adjusters, although
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principally concerned with General Average also give some guidance on how
the adjuster considers repair costs in Particular Average claims.
14.4
ACCIDENT INVESTIGATION SURVEYS
1-584
Later in this diploma course you will find some interesting concepts as to how to
go about investigative surveys. For the moment we need to be aware that these
surveys involve careful questioning of parties involved and often a very full and
thoughtful investigation to uncover the fundamental causes of a casualty.
Figure 19
In 1995 the Bulk Carrier Alexia and the General Cargo Vessel
Enif Collided off the Mississippi
1-585
The obvious cause of damage may, for example, be collision itself but what
needs to be investigated is the reason the collision occurred. It may be readily
apparent that one or both vessels turned the wrong way or did something else
which ultimately brought it about, but these reasons would be only be the
obvious and immediate ones. There will almost certainly be very much more
deep seated explanations than simply that one or both masters misjudged or
misinterpreted the situation immediately prior to the collision.
1-586
One practitioner in health and safety management believes the deeper you investigate
an accident the higher up the management chain the responsibility lies. This may be
so but a full investigation may unearth much more fundamental reasons relating to the
running of one or both of the ships, such as chronic fatigue on the part of a pilot or
master, or failure of the bridge team as a whole to work together cohesively. This may
mean that criticism should rightly be directed further a field at the owners as well as
the master or crew. There may be a need for changes to the manning or the officers
work pattern, or a need for bridge resource management (BRM) training. These are
the sort of answers to which good accident investigators aspire.
1-587
To achieve them it will almost certainly be necessary to inspect records of events,

both those leading directly up to the casualty and those some time before them.
1-155
1-588
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The principal records to which the surveyor may need access are:
(a)
Bridge and engine room log books.
(b)
Bridge and engine bell (or telegraph) book.
(c)
Course recorder chart (if fitted).
(d)
Chart in use at the time with record of ships track and positions.
(e)
Radar plots.
(f)
VHF logs of shore stations if in the vicinity.
(g)
Compass observations record.
(h)
Ship manoeuvring diagrams and data.
(i)
Medical records (and a reconstruction of the work pattern of crew involved).
(j)
Chain register.
(k)
Stability data.
1-589
In the collision example pictured above in Figure 19, a survey of the ship would almost
certainly involve an inspection of the bridge, a check upon the view from it (obstructed
visual and radar arcs), operating condition of relevant equipment, a check on whether
any deck lighting (if at night) might have obscured the other vessels vision, and an
inspection of all the above records. A formal questioning of crew involved, culminating
in written statements from them, would follow and then a careful consideration of all
the facts, without jumping to unsupported conclusions, would lead to the surveyors
report being prepared.The report would include the facts, breaches of any regulations
involved, the surveyors conclusions as to cause, and finally recommendations.
1-590
These investigations are primarily carried out to satisfy statutory requirements

or for insurance related purposes. In either case they tend to be, but are by no
means always, carried out by nautical surveyors. If they only involve machinery
the probability is that the investigating surveyor will be an engineer surveyor.
1-591
In November 1997, IMO approved a Code for the Investigation of Marine

Casualties and Incidents under Resolution A849(20). It is primarily intended for
use by flag states conducting these investigations so as to introduce a standard
approach. Subsequently, in 1999, Resolution A884(21) amended it by adding
useful guidelines concerning human factors which have a significant influence in
marine casualties. A knowledge of their contents could prove useful to all who
conduct inquiries of this nature, and it appears in APPENDIX 4 of this Module.
14.5
THIRD PARTY LIABILITIES
1-592
The underwriters will call on accident investigations in anticipation of a civil case for
damages being brought by one or more parties. These investigations are usually
required to determine which parties may have a liability to others and will arise
1-156
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regardless of whether there has been any breach of statutory duty. They are also
separate from damage surveys required to determine the costs involved, although
they may be carried out by the same surveyors if they possess the dual skills.
1-593
Investigations into third party liabilities, beyond the customary basic requirement
that particularly accompanies a cargo survey, will often be conducted by marine
surveyors, especially those with sound legal knowledge. This can frequently enable
an underwriter, having met a claim under subrogation, to recover from the party
who was responsible for the damage. Many such surveys are carried out in
association with marine lawyers appointed by principals to work with their
surveyors.
14.6
INVESTIGATION BY ADMINISTRATIONS
1-594
A serious casualty will usually require a formal investigation which by international convention is usually the responsibility of the flag state of the ships
involved. However it is not unusual for a coastal state to hold an investigation,
particularly when it has suffered from the incident such as in the pollution of its
coastline. Casualties normally requiring an investigation are stranding, collision,
foundering, fire, accidents with dangerous goods in transit and so on. Another
prolific source of investigations associated with ships and ports today involves
personal accident, safety and health. These may involve P&I club surveyors.
Government labour inspectors and medical officers are often involved too, but
these persons are not normally seen as being marine surveyors.
1-595
Accident investigation surveys are frequently a statutory requirement for two key
reasons which are to consider firstly the cause of the accident and secondly the
steps that can be taken to avoid a similar mishap in future. A further reason may
be to determine whether a breach of regulations may have occurred and, if so,
what penalties should be imposed (including possible prosecution).
1-596
There may be more than one government department or agency involved in

these investigations. In some countries only one may be involved in carrying out
the investigation for both considerations, thereby acting as both the investigatory
and the regulatory body. In the UK there are two separate agencies, the UK
Marine Accidents Investigation Branch (MAIB) has almost unique legal status in
that any information it receives cannot be used in a court of law. The idea is to
seek ways of learning from incidents rather than pointing a finger of blame. On
the other hand the Marine and Coastguard Agency has the legal obligation to
act as the prosecutors where the law has been broken.
Is there a difference between a surveyor carrying out an accident
investigation and being an expert witness?
1-157
15.
GOING ABOUT A SURVEY
LEARNING OUTCOMES
fully understand the importance of abiding by the health and

safety laws and regulations;
know the safety equipment and protective clothing you will

require;
know the tools of the trade;
describe the importance of planning the business of marine

surveying;
outline the importance of following up a survey;
consider the wider range of consultancy;
recognise what is meant by given evidence; and
state the difference between investigation and consultancy.
Figure 20
Monitoring and Repairing Corrosion and Grab Damage in a Single Sided Bulk
Carrier. One of the Main Concerns when Surveying Bulk Cargo Carrier Holds
is Access to All Parts of the Hold. Permanent Access Ladders may be Installed,
but these are also Susceptible to Damage. Always Check that the Access
to the Area to be Surveyed is Secure and Safe
1-158
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Going About a Survey
15.1
PREPARATION AND RESEARCH
1-597
It does not matter how many surveys you carry out, each one will be unique and
requires individual attention and preparation. Especially for surveyors working
on an international basis, each and every survey requirement may be in a new
place, on board a different vessel and require the ability to relate effectively to a
range of total strangers. Thus, time in preparation and research, even if time is
limited, must be considered essential. The first question to be addressed is
who is the principal?
what is his role?
what is his purpose in commissioning the survey?
1-598
To take the last point first, there are several different types of survey as have
been described in this module. The purpose may be statutory or purely
precautionary, it may be to establish a benchmark or it may be in order to
prosecute a claim or prepare a defence.
1-599
In all cases the surveyor needs to know whose interests he or she is representing.
This is important because, while facts may be facts, their interpretation is
another matter, and while much information will be of a public nature, some will
be confidential.
1-600
Thus, the surveyor should endeavour to ascertain who owns and who manages
the vessel, who charters or sub-charters her, who owns the cargo, who insures
it and to whom it is consigned. Many of these interests will have local agents
representatives or surveyors and the owner or manager will doubtless have a
P&I club representative or local correspondent.
1-601
It is useful to have a prepared questionnaire which can be used to collate the

necessary information, even while the surveyor is en route to the vessel.
1-602
Good team support from the home base can help here and the organisations
database should be a good starting place. In order to ensure that it does remain
current, accurate and factual, all surveyors should be aware of their
responsibility to ensure that any new information gleaned from the current
survey is authenticated and entered.
1-603
In many cases, and especially in cargo disputes, it may be found helpful to

visualise the complex web of inter-relationships and conflicting interests by
constructing a network diagram. From this, the surveyor may need to identify the
varying parties as friendly, hostile or neutral, and adjust his or her relationship
with them accordingly.
15.2
PLANNING AND ORGANISING
1-604
Almost always, marine surveyors will need to slot their survey requirements into
the busy schedule of an operational vessel. This requires a high degree of
planning and organising, which the surveyor will frequently have to base on
limited information. Key to the planning process are the location and movements
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of the vessel in question or possibly the cargo. Also essential in these days of
the ISPS Code (see Section 3.5) is the need to ensure that accreditation is
available to allow the surveyor access to the port and to the ship. The surveyor
must ensure that the shipowner or manager, or other competent authority, has
authorised the visit and arranged with the port the necessary security pass or
entry permission.
1-605
The surveyors initial research should have identified the vessels agents. The
surveyor will need to apply his knowledge of the workings of the shipping
industry to decide whether it is the charterers or the ships (husbanding) agents
who can best assist him. An early indication of the various activities which the
vessel will be undertaking in port will help the surveyor plan his task in a way
which is most compatible with the vessels priorities and the requirements of the
survey. While at times it will be necessary to insist on the masters time and
resources, this should not be the first approach of a professional surveyor.
1-606
Forethought and planning, together with a flexibility of approach, can often

integrate the surveyors requirements into the vessels routine with the maximum
of co-operation. If, for example, the surveyor is undertaking a systems audit and
the vessel is bunkering, can the bunker process be part of the systems audit or
perhaps the navigating officers passage planning and chart correction procedures
or a shift of berth? If the survey requires the inspection of cargo holds or tanks or
the inspection of water ballast spaces, the surveyor should find out how the survey
requirements can be integrated into the loading or discharging programme and
approach the vessel with a compatible plan. If some of the machinery is to be
surveyed, what are the chief engineers maintenance priorities for that port and
how can the survey requirements best be co-ordinated?
1-607
One of the more challenging times for a surveyor is conducting a survey when
a crew change is taking place. Not only will the masters and crew have other
priorities, the departing master and crew may well be taking valuable information
with them, especially if the survey is of an investigative nature. Careful planning
can frequently help the surveyor succeed in his survey requirements, even to the
extent, if time permits, of organising to drive the departing master (or chief
engineer or relevant crew member) to the airport in a relaxed and information
exchanging atmosphere.
1-608
At times, the surveyor will find that he or she is competing for attention with other
surveyors and, on the occasion of a dispute or claim, surveyors representing
principals in potential conflict with his own. This is obviously a time when much
of the information required will be of a confidential nature but this does not mean
that co-operation is not possible. A joint survey of factual information is efficient
and effective and can save considerable time at a later stage, and it should
always be remembered that the prime task of a surveyor is to collect and report
factual information in a complete, clear and concise way, it is not to formulate
theories nor to give opinions.
15.3
THE SURVEYOR AND THE HEALTH & SAFETY LEGISLATION
1-609
In the United Kingdom any surveyor attending on board ship will be subject to
the Health and Safety at Work Act 1974. There are also further requirements
under the EU regulations and in both cases new legislation is continuously being
1-160
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introduced. Other Countries will follow the same type of systems and it is the
surveyors responsibility to be fully cognisant of the health and safety
requirements that cover their activity. It would be prudent for the marine surveyor
to ascertain the local statutory requirements.
1-610
The marine surveyor in the course of his or her duty, is generally working alone
in a potentially hazardous area and although prescribed safety regulations can
be annoying at times they are there to reduce the risk of an occupational
accident. In the UK the Health & Safety Executives mission statement is: To
ensure that risks to peoples health and safety from work activities are properly
controlled. It is essential that the surveyor needs to have a reasonable working
knowledge and understanding of health and safety in the workplace.
1-611
It is strongly recommended that all surveyors who carry out surveys on ships
should get a copy of the IMO booklet Recommendations for Entering Enclosed
Spaces On Board Ship.
1-612
The health and safety legislation is of relevance to marine surveyors because

they have the responsibility for the health and safety of:
those whom they employ (if they are employers);
those who are directly affected by their work; and
themselves.
15.4
PERSONAL SAFETY GEAR
1-613
The Marine surveyor must be properly attired to carry out the task they have
been instructed to do. The normal kit expected is: an approved hard hat,
protective coveralls, safety goggles or spectacles, industrial gloves, armoured
footwear, fluorescent safety waistcoat and a personal gas monitor. Also an
approved buoyancy vest or lifejacket when at risk afloat, gloves, and a face mask
in certain circumstances.
1-614
Personal protective equipment is important not only for your own protection but
entry into many establishments may be refused without it. Proper working
clothes and protective items will also show that you have a responsible attitude
to your work ethic.
1-615
With regard to your personal safety common sense dictates the normal
precautions to be taken when attending on board ships or in the shipyard,
engine shop or dry dock on any occasion Prudent behaviour must be adopted
in the course of carrying out work, such as not entering tanks or other confined
spaces without first ensuring the atmosphere in the tank has been tested and
proved safe. You must always notify your intention to a ships officer and also be
accompanied by a watcher stationed at the tank door. Similar precautions must
be taken in the case of operations on and from staging.
1-161
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Figure 21
An ABS Surveyor at Work, May 2000
15.5
THE MARINE SURVEYORS TOOLS OF THE TRADE
1-616
It is possible to write a long list of tools for the marine surveyor, however one has
to bear in mind the restrictions that may apply, particularly if the surveyor has
to travel by air to visit a vessel. Having said that, there are some tools and
equipment that are necessary to meet the rules and regulations that affect all
surveyors in the course of earning their daily bread.
1-617
We should start with basic requirements, before discussing the specific

equipment that may be required for any particular survey.
1-162
(a)
Notebooks, ballpoint pens, and pencils this may seem obvious but never
leave yourself short of these essential items.
(b)
Cameras. The most convenient camera today is a digital camera as you may
take hundreds of photographs at a fraction of the cost of film. There has been
much debate on the possibility of tampering with digital photographs, but if
you taking the pictures for your own reference, and to support your findings
in your report to the principal, this question need never arise. Should there be
a possibility of photographic evidence being called in a court of law, then the
surveyor should check the acceptance of digital photographs and, if necessary, take some essential pictures with a SLR camera. In both cases make
sure you have back-up film or chips and, of course, spare batteries.
(c)
Marker pens are essential for supporting your photographic records. Chalk is
a common form of marker that is useful on most surfaces and easily
removed.
(d)
Means of illumination. An intrinsically safe torch complete with spare batteries

and bulbs. Helmet fitted lamps that can be fitted to a safety helmet can be
Module 1
excellent for many situations and give you the added advantage of having
your hands free.
(e)
Tape measures. Be prepared to have a number of different types and sizes

to meet your needs. From a 15cm rule, a short steel tape, to a 2050m
fibre tape. Also you may need sounding tapes with different bobs.
(f)
Digital Dictaphone. These lightweight, easily handled devices are most

useful as you can rapidly describe any situation using them at a faster rate
than writing what you see. The digital Dictaphone can be used with software such as ViaVoice and your spoken word can produce a draft of what
you have recorded on the survey. However be aware of the limitations of a
Dictaphone. They need batteries, tapes and, most important of all, they
need the surveyors ability to dictate useful, and only useful, information.
There is an art to the diligent use of the Dictaphone: remember, if you
become totally dependent on this tool, and it if goes wrong, there is no
second chance.
(g)
Tools to poke and prod. The commonly used tools are chipping hammer
or similar tools, spike, scraper, and a good knife. It is surprising how
frequently these tools are needed during surveys.
(h)
A calculator, and preferably one with a conversion facility.
(i)
Sample containers such as bags, bottles or whatever you prefer to use.

Careful labelling is necessary. There is a frequent requirement to obtain
samples of something during surveys. (They must always be clean and
uncontaminated.)
(j)
A reference notebook. It may be a good idea to compile your own quick reference notes for formulae and general useful information. Nobody can
retain in their head all the information that may be required.
(k)
In the 21st century there seems to be a need for the mobile phone. Whilst
it is useful for keeping in contact with your customers, switch it off when
you are surveying. It can prove to be very distracting and may cause you
to miss important aspects of the survey.
1-618
At this point, without going into equipment operational details, it is important that
surveyors are fully aware of the myriad of equipment available which is now
essential and expected to be used to conduct a complete and competent survey.
1-619
Surveyors must be very aware of the capability of any of the equipment they use.
Not only to use it to the manufacturers instructions but to be fully confident and
competent in its use both in practice and theory. The ability to interpret the
results and to report these results in a coherent manner is also paramount to the
effective use of any equipment. If wrongly used or interpreted, this equipment
can have the completely opposite effect from that originally desired.
1-620
Let us briefly overview some of the tests and equipment that are in regular use
by surveyors: On occasions they may have need of additional specialised
equipment, such as digital counters, vibration meters, electrical millimeters, and
many other specialised instruments but listed below are the more common ones.
1-163
1-164
Module 1
(a)
The silver nitrate test kit. This is used for testing for chloride, but it does not
necessarily determine the presence of sea water only (two parts silver
nitrate, two parts nitric acid (chlorine free) and 96 parts distilled water).
(b)
A calibrated glass hydrometer. A simple device, but unless used correctly

will result in large discrepancies.
(c)
Multi level liquid samplers.
(d)
Lap-top computers are becoming more widely used particularly among

draught surveyors, and for ship vetting and safety auditing.
(e)
Liquid level indicators are used in fixed bottle bank extinguisher systems.
(f)
Ultra sonic thickness gauging. These instruments come in all shapes and
sizes, eg high capability, variable velocity, intrinsically safe, and underwater
types. Also they have the possibility of attaching data logging facilities
which are essential for successfully recording the large amount of information required to complete a structural survey. It is important that you
make sure you have the right one for the task.
(g)
Paint thickness gauges for both conductive and non-conductive coatings.
(h)
Ultrasonic hatchcover testing. The use of the correct generator and the
interpretation or presentation of the results is imperative.
(i)
Fuel and lube oil samplers. Variable method bunker sampling.
(j)
Marine oil test kit.
(k)
Water moisture content test kit.
(l)
Contact thermometers. These are hand-held with ranges from 200C to

1700C. They are available with many probes to suit the job in hand.
(m)
Non-contact thermometers. These are available in infra red or laser with

ranges from 18C to 400C.
(n)
Fixed temperature and humidity gauges.
(o)
Hardness testers to measure the ultimate tensile strength.
(p)
Roughness testers.
(q)
Vibration testers to measure acceleration and velocity of parameters of

moving machinery.
(r)
Crankshaft deflection indicators.
(s)
Moisture meters (GRP) detect moisture levels trapped within the layers of
glass-reinforced plastic.
(t)
Moisture meters (wood) measure the moisture content within wood from
8% to 80% saturation.
Module 1
1-621
(u)
Moisture meters (condensation) indicate the potential for and the extent of
condensation on a surface.
(v)
Moisture meters (grain) measure the percentage of moisture in grain

crops.
(w)
Portable gas monitors to deal with single and multi-gases. Normally monitor
oxygen, flammable gas, toxic gas, H2S, CO.
(x)
Electronic rigging testers.
The above list can only be considered a general view of what is available on the
open market. Some specialist companies have developed their own exclusive
items of equipment that may not be available for the independent surveyor.
You have been instructed to carry out a condition survey of a
handysize bulk carrier at a port that is close enough for you to
drive to. List the tools and equipment you would take with you to
safely carry out this survey.
15.6
THE FOLLOW-UP
1-622
The follow-up has two aspects, internal and external. The external follow-up is,
to a large extent, both after-sales service and marketing. When the report is
submitted, it is all too easy to be off and away on the next commission without
time to check on the outcome of whatever event instigated the requirement for a
survey. At the very least it is professional courtesy to enquire whether the
service provided was satisfactory at a more practical level, it is the opportunity
to solicit for more business. An on-hire survey will, at some stage, require an offhire survey or a purchase inspection. If followed through, this may mean drydock
and subsequent operational surveys are required and at the very least it is an
excuse for that marketing essential, customer contact.
1-623
On the internal side, loose ends will inevitably need tidying up, expenses need
to be prepared promptly and invoices submitted. Information may also need
entering into the organisations database, whether it is company or ship-related,
or it may be that new legal or technical facts need disseminating around the
organisation. Planning must contain an allowance for follow-up.
1-624
Having prepared for the survey and being properly equipped the marine
surveyor should now be ready to carry out the Principals instructions. This
can normally be done in a systematic way, ensuring that all requirements of the
survey are met.
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1-625
Once the survey has been completed, the most important part of the service to
the Principal is to submit a comprehensive, clearly written, factual report. The
skill of report writing will be dealt with in the next module.
15.7
GIVING EVIDENCE
1-626
The marine surveyor may, in the course of his professional duties, be called
upon to give evidence either in court or before arbitrators. Surveyors of sufficient
experience may also offer their services as expert witnesses. In both
circumstances, the underlying requirements are the same; be factual and be well
prepared. The model expert witness report, recommended by the London-based
Academy of Experts, underlines this in requiring that, in the report, the following
should be separately identified and distinguished:
facts which the writer has been asked to assume;
facts which the writer has observed for himself, ie the results of surveys,
experiments, investigations, etc carried out by the expert witness;
facts which others, acting on behalf of the writer, have observed, naming
and identifying the person(s) concerned;
opinions of others or other authorities upon which the writer relies in forming his opinions.
1-627
This also gives good guidance for the surveyor whose role is only to give
evidence. So far as possible his role is to give factual evidence and not to give his
opinion unless specifically asked by the court which is different from being
encouraged to do so by counsel in cross-examination. Under the English legal
system, the witness will be briefed by the solicitor who is preparing the case on
behalf of the plaintiff or the defence. Once in court, it is counsel who decides how
to manage the case. However, before this stage, the witness should have had the
opportunity to state clearly where his area of expertise ends and the witness
must take care not to be drawn beyond this point into the area of conjecture or
worse, into advocacy on behalf of one of the parties. Not only does this do little
good for the client, it also harms the professional standing of the marine surveyor.
1-628
Equally important, and sometimes quite difficult, is the need for the witness never
to lose his temper this is a well-tried ploy by counsels, sometimes indicating a
particularly weak case. Although much of the court proceeding will be conducted
in legal jargon, it is also important that the witness does not use technical maritime
jargon unless the terms being used are genuinely in the public domain.
1-629
A surveyor involved in an investigation which has the potential for becoming a

legal dispute should bear in mind that the dispute is unlikely to come to court for
a number of years and what is clear and straightforward at the time is in danger
of being lost in the mists of time, especially under hostile cross-examination. This
emphasises the importance of the points made earlier about follow-up, the
databases and archives. Finally on the point of giving evidence, it is an area
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where thorough preparation is essential and this ranges from eliciting from the
solicitor all the information possible that will help the surveyor feel confident and
at ease in court to preparing factual responses to likely areas of questioning.
15.8
CONSULTANCY
1-630
Whereas the constant stricture to the marine surveyor is to deal in facts,

consultancy is an area where a surveyor may get the opportunity to draw
conclusions and offer opinions and recommendations. However, the essence of
consultancy remains factual but the scope of the commission is frequently wider,
requiring a more extensive database, a research capability and, especially for
the smaller surveying organisation, the ability to network information.
1-631
While in its wider sense, consultancy has not been a regulated profession, the
European Union for one has now taken steps to define a consultant more clearly.
The underlying basis for this definition is that the consultant can demonstrate at
least 14 years of experience in the area of expertise being offered. While
consultancy may seem a useful adjunct to the marine surveyors main
profession, its disciplines make different demands, one of which is that the
surveyor must be totally flexible to undertake survey work at short notice whilst
the consultant needs to be able to commit definite periods of time to an
assignment.
1-167
16.
SETTING UP IN BUSINESS AS A MARINE

SURVEYOR
LEARNING OUTCOMES
state the various legal structures of marine surveying

organisations;
describe how companies are organised; and
plan the management of human resources.
16.1
FIRST WE DEFINE WHAT TYPE OF MARINE SURVEYOR THIS

APPLIES TO
1-632
Whether you intend to be a one man band, a partnership or group of fellow

surveyors or part of a large survey company the basic requirements to set up a
business remain the same. In this chapter we will consider how survey
companies that we may refer to as independent companies would wish to set up
in the business of surveying. Government and classification societies have long
and well-established management and organisation structures and we will not be
referring to this type of organisation.
16.2
THE ESSENTIAL ELEMENTS OF A MARINE SURVEY COMPANY
1-633
More than most organisations which form part of the maritime services industry,
surveying companies probably show the greatest diversity Whatever the size and
type of organisation, it is essential that they clearly define the market in which they
intend to offer their services and then ensure that they have the necessary
resources. They must, too, maintain the ability to react promptly in a market which
is frequently unable to give much prior notice of when their services will be required
and when ship availability can change by the day and sometimes by the hour.
1-634
Set out below are the essential elements of a small to medium-sized marine
survey company.
16.2.1
Legal Structure
1-635
Careful consideration should be given to the way in which the surveying

organisation is structured as this has implications which cover the liability at a
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Setting Up in Business as a Marine Surveyor
personal and organisational level, recruitment, employment status, social

benefits, legal liability at a personal and a company level and, it should be
added, the way in which the organisation markets itself.
1-636
The main choices are fourfold:

sole trader,
partnership,
a limited liability company (In the UK the name is suffixed by Ltd),
A public liability company (In the UK the name is suffixed by plc).
1-637
The main features of the three organisational models are as follows:
16.2.2
Sole Trader
1-638
Sole trading is the simplest way for an independent surveyor or consultant to set
up; it costs the proprietor little in the way of start-up as well as giving complete
control of the business. It is possible to invest or remove as much money as is
desired but with this absolute freedom goes absolute responsibility for the
business and its debts if the business fails owing money, the proprietors
personal possessions, house and investments, are at risk.
16.2.3
Partnership
1-639
Partnerships also offer a large degree of freedom and can be useful if two or
more like-minded people want to invest their own resources into a common
venture. The ability to invest more funds into the business, or to take more profit,
remains wide and the responsibilities of running the business are shared.
However, an agreement made by one business partner binds all partners, so
that one partner can become responsible for the debts of another, even if the
partner was not aware of the debt or business activity good friends do not
necessarily make good partners.
16.2.4
Companies
1-640
Companies can be run by individuals as well as by boards of directors and thus

can be fairly simple, straightforward organisations. They are particularly useful if
there is access to external funding, either through an equity investment and profit
share or through bank (debt) lending. The limited company does protect the
equity investor from much of the possible debt and liability downside of investing
(which would not be the case for a sleeping partner) but the extent of protection
for owners who are also directors (as is common in private limited companies
ltd) is not as clear-cut. There are situations where company directors can be held
personally liable. Many major creditors, such as banks, will insist on a personal
guarantee for loans and there are other tax and legal consequences of operating
through a company which can make it substantially more expensive and
complicated than operating as a sole proprietor or partnership.
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1-641
However, as organisations grow, the reasons for registration as a limited

company become more compelling and, at some stage, many organisations
find it advantageous to lose a degree of overall control to shareholders in
exchange for equity investment to finance expansion and become public limited
companies (plc).
1-642
Whichever approach is chosen, it is essential that professional advice, legal, tax

and accountancy, is taken. Even at the level of sole trader, the proprietor will
need to establish bank accounts which can receive and disburse funds in
different currencies and be operated when he or she is effectively uncontactable
on site or en route.
16.2.5
Market
1-643
An early decision needs to be made on the particular area of the marine

surveying industry, on which the organisation will focus its resources. This is
especially so if the resources, especially in a start-up situation, are limited.
1-644
A number of considerations will affect the market area decision and the particular skills area of the surveying staff is probably the most important. This has to
be combined with a decision on the geographical area on which the organisation will concentrate its marketing efforts. This may be a local port or worldwide
and the surveyors existing network of potential customer contacts will feature
in this decision, as well as the availability of resources to fund the marketing
effort.
1-645
A fourth element of this decision is basic market research where is demand

strongest and what are the future trends and developments in the maritime
industry (and beyond) which may change this?
1-646
Finally, the new, or existing, surveying company must always keep a close
review of its competitors and be aware of the signs of any changes in their
market focus.
16.2.6
Organisational Structure
1-647
It is far too easy for organisational structure to grow, especially as companies

expand, in an unstructured way. The ultimate downside of this laissz faire
approach is that the organisation then has to commit precious resources to
restructuring and, in some cases, write copious procedures manuals to explain
to itself how it operates.
1-648
A surveying company has, inherently, a very flat hierarchy and this can and
should be maintained, especially with the sensible use of modern technology. As
well as front line surveying, there will be a number of other essential functions
to be undertaken such as research, marketing, the maintenance of an up-to-date
database and, possibly, consultancy. The organisation needs to maintain a careful
balance between the need for specialists in these disciplines and the ability to
rotate active surveyors through these functions. In the former case, the appointment of specialist support staff, the organisation acquires a very definite, ongoing
overhead. In the latter case, using surveyors in support roles on a temporary,
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rotational basis, it can give its surveying staff the ability to enjoy important home
base time at critical stages of their professional and private lives. Typical
examples of this could be around marriage or the birth of children, convalescence or when undergoing professional training. Against this employee
focused approach, the company must assess the surveyors ability to undertake
different, desk-bound, tasks such as marketing, budgeting or the maintenance
of a database.
1-649
The two areas which need to be addressed by specialists are finance and
corporate affairs (the company secretary role) and personnel. In establishing
these specialised departments, which are very definitely overheads, it is useful
for them to be aware that their function is to facilitate the surveyors in their prime
function of surveying and that the surveyors prime function is to provide a service to the organisations clients which will, in effect, convert them into regular
customers and a regular source of income and employment. It is all too easy to
lose sight of this perspective.
16.2.7
Policy and Quality
1-650
It almost goes without saying that a marine surveying organisation needs clear
and precise policy statements covering its safety, environmental, quality and
employment responsibilities and commercial objectives. Behind these will be,
hopefully concise, procedures linked to a quality assurance system such as
ISO 9002.
1-651
The key to implementing an effective quality system is to make it match the way
in which the organisation works, rather than it being a description of the way in
which the organisation should be working in order to comply with its procedures
manuals. It is a subtle difference in terminology but a quantum improvement in
efficiency and effectiveness.
16.2.8
Budgeting and Cash Flow
1-652
While the mechanics of bookkeeping and statutory accounting might correctly

be the preserve of a finance department, budgeting and cash flow are very much
a mainline management responsibility. Budgeting, in some aspects, is very like
passage planning it establishes a datum line. It is important too, not to view
budgets as a purely financial tool, they are a key element of the organisations
business plan for at least one year ahead in detail and, generally, three to five
years ahead in general terms. There are important disciplines in preparing
business plans and budgets and wider reading on this subject is recommended.
The essential elements, in the context of a shipping company, are set out in
Chapter 3 of Commercial Management for Shipmasters.
1-653
Preparation for the budget process needs to start as early as possible, always
bearing in mind that the earlier one starts, the older the base data becomes as
the budget year in question progresses. This can be an important factor in large
organisations where a long period of budget consolidation is required. And, to
an extent, this is inevitable because a good budget is one that is prepared, and
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Module 1
believed in, by the team which is responsible for delivering a compatible

performance during the period in question.
1-654
Budgets and the business plan start by drawing together a wide spectrum of
relevant information. This ranges from the latest estimate of how the
organisation is performing against the current years business plan to input from
the organisations research and marketing functions. From this amalgam of
information, the management team prepares the business plan and budget
assumptions. The plan sets the goals, the budget assumptions establish such
diverse items as the allocation of overheads, the proposed increase in salary
costs and the various currency exchange rates to be used.
1-655
So far as possible, the business plan and the budget assumptions should be
discussed and agreed with the various operating teams within the organisation
before they commence the preparation of their budget input.
1-656
An important element of the years operational plan is the management of the

organisations liquid financial assets, its cash flow. This should be planned as far
as possible in advance, and monitored throughout the year in conjunction with
the organisations commercial performance against the budgeted predictions. A
critical aspect of cash flow planning is not just ensuring that there are adequate
resources to match the budgeted expenditure, allowing for the inevitable delay
between expenditure and income, but it is the ability to finance growth and to
take advantage of unforeseen opportunities. Here, the benefits of maintaining an
ongoing dialogue, on a business level, with the organisations bank or bankers,
may prove invaluable.
16.2.9
Technology
1-657
Technology is both a challenge and an asset incorrectly planned and managed,

it can be a liability. Like the finance and personnel function, an organisations
technology strategy should be designed to assist surveyors in their prime task
of investigation and reporting. It is important, therefore, that the technology
strategy has the general acceptance of those who must use it. A balance must
be achieved between the disciplines necessary in order to ensure systems
compatibility and the flexibility that enables the systems to be user-friendly at an
individual level.
1-658
The objective is to support the surveyor in working at maximum efficiency in a

way which is compatible with the overall objectives of the organisation and which
conforms to its quality controls. A key element in achieving this is the provision
of proper training, with ongoing refresher and update training. Some people are
naturally IT compatible and some are not it is important that the company
provides support for those who are not or the overall efficiency will drop.
1-659
A second dimension of the technology challenge is to ensure that the organisation

can interface in a user friendly way with its customers. A moments reflection
may well place the organisations telephone and voice mail system high on the
priority list for user-friendly design, especially bearing in mind the inevitability of
the prime staff, the surveyors, being away from their desks more than they are
at them.
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Module 1
16.2.10
Databases and Records
1-660
In designing database and record systems, four guiding principles are

recommended:
identify the sources of information the inputs;
identify the uses of the information eg technical data, marketing, research,

evidence in arbitration and disputes, invoicing, budgeting the outputs;
start yesterday, do not let the input grow in an unstructured way until it
becomes a problem;
build in flexibility, do not over-design.
1-661
Information technology can greatly assist the scope and flexibility of databases
and speed up the sorting and retrieval of information. Nevertheless, a physical
system will always be required alongside the electronic database since plans,
samples, photographs and many other types of evidence will need to be kept
(and cross-referenced to the electronic system) until it is clear that they are no
longer required. If the surveyor is involved in a potential legal dispute between
two parties, this may mean keeping the evidence for several years and the
archive should be designed with this in mind. The surveyor will also have his
own, personal diary or day-book, and this too is an essential part of the organisations records and an area which may need attention if the surveyor leaves the
organisation.
16.2.11
Marketing
1-662
Marketing starts with knowing what you are selling and who your customers are.
It then progresses to identifying and providing the precise service your
customers need and identifying which is the most effective way of making them
aware of your product and its benefits. Finally, it is necessary to progress to
identifying a) the service which will be needed in the future and b) who the future
customers will be.
1-663
This will take a degree of research and analysis and this should be a
responsibility for every surveyor in the organisation. In the same way, every surveyor should be marketing the organisation and its service every time they meet
a customer or anyone in the industry who is a potential customer or who is in a
position to recommend the organisations services.
1-664
All this needs co-ordinating and this must be the active responsibility of the
management team. Included in their remit will be decisions on the organisations
style (covering such matters as logo and letterhead), advertising medium (from
advertisements in trade journals, through mail shots to websites and to
participation in conferences and other methods of gaining exposure).
1-665
One area which must be considered within marketing is the organisations

telephone system probably the first and most frequent point of contact for customers. Especially in an organisation where the majority of its staff should be out
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Module 1
of the office most of the time, it is important to offer the customer more than a
voicemail box.
16.2.12
Banking and Finance
1-666
There are two distinct aspects to banking. The first is the normal bookkeeping
and accounting function which can be adequately handled by the organisations
finance team. It will be necessary to set up systems to deal with foreign
exchange requirements and the inevitable need to be able to produce cash in
strange parts of the world at short notice, but beyond that the requirement is
fairly standard.
1-667
The second aspect is the responsibility of the management team and involves
ensuring that the banks management understands and is sympathetic to the
organisations business and business aspirations. This means appraising them
of the current business plan, at least in general terms, and of any need for supplementary finance, such as for an investment in technology upgrades or an
expansion in the organisations activities (bearing in mind the strain which this
can put on cash flow).
16.3
MANAGEMENT AND HUMAN RESOURCES
1-668
As stated earlier, a surveying organisation is likely to have a very flat managerial

hierarchy, since it will be largely made up of surveyors whose tasks are basically
the same. This indicates a natural team-based approach to management except
that the surveyors task is essentially an individual one. It will be rare for
surveyors to be deployed as a team or to work as a team except when
undertaking the essential administration functions such as budget preparation or
research. Indeed, some surveyors may not meet from one month to the next.
1-669
Thus, the management team faces a challenge which requires it to ensure that
there is an effective exchange of information within the organisation, together
with a commitment to common standards and mutual support. Effective communication, which includes receiving as well as transmitting information, is critically important and deserves and demands proper management. Through
effective communication, a diverse and frequently individualistic mixture of
marine surveyors can be crafted together as a team and as the core of an efficiently functioning organisation.
1-670
In managing teams it is essential for the manager to know and understand the
strength and weaknesses of his team members on an individual basis. Far too
frequently, promotion, possibly on grounds of technical capability, is supposed to
imbue the new manager with the abilities of man management. This is not necessarily true and there are skills which need to be developed. The difference
between good and adequate managers is often the support and assistance
which they receive at this stage of their career.
1-671
There are many techniques for assessing, analysing and understanding

individuals. Psychometric testing is increasingly used as part of the interviewing,
selection and ongoing appraisal process and requires a degree of specialist knowledge and training before the results can be relied on as reasonably accurate.
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Module 1
The end results are frequently quite straightforward and consist of identifying
which are an individuals most dominant traits. Much simpler forms of analysis,
based on observation can, with practice, also give a good indication of an individuals strengths and weaknesses. If a manager can learn to spot the strong
and the weaker functions in their various team members and indeed in themselves and has the ability to capitalise on the strengths and provide support in
countering the weaknesses, it will help in developing the organisations overall
human resource as well as the individuals career.
1-672
The first step in this process is developing the ability to know and understand the
inherent capabilities of individual members of the organisation. Like navigating,
the science of human resource management is to a great extent an art and,
although human beings are far too complex to be completely categorised, some
simple theories can help the manager. Carl Jung pioneered the modern
approach to the study of personality types nearly a century ago when he developed the theory that most people have one predominant function, one or two
that are semi-developed and one that is underdeveloped. The four functions
which he identified are Thinker, Sensor, Intuitor, Feeler. Thinkers and sensors
are basically extroverts while the intuitors and feelers are more introverted.
Thinkers are methodical and enjoy tackling problems with logic while intuitors
are good at lateral thinking and strategy, less focused on detail. Sensors get
things done but do this best in a routine environment not necessarily the best
managers of change, or of people. The feeler, not surprisingly, is a people person and can establish relationships but not necessarily get things done. Starting
with this basic matrix, a manager should be able to develop a better insight into
how his colleagues approach their professional task of marine surveying and
who would be better suited to ancillary tasks such as research or marketing.
1-673
The surveyor who moves into a more managerial role will also need to deploy
different skills and the core skills of a manager are often summarised within
three groups.
Basic knowledge and
Information
Command of basic facts

Relevant professional understanding
Skills and Attributes
Continuing sensitivity to events

Analytical, problem-solving,
decision/judgment-making skills
Social skills and attributes
Emotional resilience
Pro-activity; the inclination to respond
purposefully to events
Meta-qualities
Creativity
Mental agility
Balanced learning habits and skills
Self-knowledge
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1-674
The first group forms the foundation level of basic knowledge and information
required for decision-making and taking action. The central group directly affects
behaviour and performance with the third being the quality which allows managers to acquire the basic knowledge and information required in one and two;
this area also has a direct bearing on a managers ability to manage change.
A manager needs to be sensitive to events both in his internal working
environment (the organisation and his team) as well as the external environment
(company, industry, the demand for shipping services). Especially in his internal
environment, the manager needs to be sensitive to soft information, such as
the feelings and capabilities of other people, as well as hard information, such
as facts and figures.
1-675
In a similar way, a manager needs to be able to identify in his decision-making

role between the need for logical, optimising techniques and situations which
call for the ability to weigh pros and cons to resolve uncertain or ambiguous
situations. At times, a high level of judgment or even intuition may be needed,
especially when dealing with people. Here too, social skills and abilities are
required to get things done through other people. Communicating, delegating,
negotiating, resolving conflict, persuading and selling and using and responding
to authority and power are all skills that need to be developed. In an organisation
where the majority of staff may be individualistic surveyors, used to and happy
to work on their own, good interpersonal skills are important.
1-676
Most managers will recognise the need for emotional resilience when the stress
levels rise. Effective resilience does not mean an unbending Youve got to be
thick skinned approach; self-control with a little, measured flexibility provides a
longer term, less wearing solution.
1-677
The Meta-qualities of the third group relate to the managers ability to develop
the situation-specific skills needed to address the many challenges facing all
managers in the conduct of their professional life. Creativity and mental agility,
the ability to think on ones feet, are skills that can be exercised and improved
by a manager who takes responsibility for his own development and learning.
1-678
In successful human resource management, as in all processes, it is essential

to ensure that there is an effective review and feed-back loop in other words,
an appraisal system.
1-679
Too many appraisals are periodic events which are approached with a degree of
dread and embarrassment on both sides. And so they should be if treated in this
way. The appraisal process should be ongoing, so that the formal appraisal interview and reporting is no more than a confirmation of what is known and understood by both parties, the focus of an ongoing internal audit. As with all audits,
it is essential that there is a clear specification against which the audit is made,
and in human resource terms this is the job description with its associated
responsibilities and authorities, and particularly the job description within the
context of the organisations policies and procedures.
1-680
Although the audit and feedback should be an ongoing process, the appraisal,
like the closing meeting of any audit, should be prepared for carefully, not least
so that the manager can be relaxed and confident. This means allocating sufficient time for this task whether the allocation of sufficient time is seen by the
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Module 1
manager as invaluable or just unavoidable is a fair indication of that managers

dominant functional skills.
1-681
Each member of staff should be given good notice of the date and time of the
appraisal meeting a week is reasonable not an easy task in a busy surveying company. All employees should think about what they want to discuss as this
leads to a more productive interview and reduces unnecessary apprehension. In
planning, the manager should take into account the individuals cultural background and dominant personality characteristics and think how best to structure
an approach which will best develop a two-way communication. It is, as indicated
above, sometimes helpful to think of the appraisal as an audit rather than an
interview and it is always important to start and finish on a high note. It was mentioned earlier that surveying organisations can be structured in many ways
and incorporate self-employed surveyors and consultants as well as employed
staff although some of the content will be different, the manager should also
address the appraisal of the organisations non-permanent staff if a consistently
high quality of service is to be achieved.
1-682
Closely aligned with the appraisal interview is the recruitment interview and it is
important that the manager has, at least in general terms, a policy and plan for
the ongoing renewal of the organisations core resource people. Especially in
the current climate, with a decreasing availability of trained mariners for all the
marine service industries, the manager will increasingly need to look towards
new sources of manpower and, probably, to training surveyors with a limited or
non-maritime background. In approaching this task, the manager will need to
develop a number of specifications for suitable recruits, incorporating both the
inherent personal qualities which he needs with the essential knowledge and
aptitudes. From this base can be structured a development programme which
first provides the embryo surveyor with the necessary knowledge (the educational process) after which it is possible to start to teach them how to apply that
knowledge (the training process).
1-683
The marine surveyor operates in a changing world with changes in technology,

legislation, survey requirements, markets and customers as a continuing backdrop to his or her work. This means that CPD (continuing professional development), is an important area which the survey organisation and its surveyors
need to address in a coherent and pro-active way.
Draw up an organisation plan of the marine survey company you
would wish to be associated with. Note brief job descriptions of
each member of the organisation.
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RECOMMENDED READING
It is always helpful to improve your depth of learning by reading other publications.

There is a good number of books on surveying practice and the following are
some of the books which will provide a useful background, and in some cases
specific guidance, in the practice of marine surveying as discussed in this
module. There are many more which may be useful to the practising surveyor,
particularly those that focus on a surveyors specialist interests such as cargo
surveys, small craft, environment, engineering and so on. Most of the surveys
discussed require a primary knowledge of the appropriate discipline, and the
standard texts of those disciplines are also of considerable value.
Supplementary reading is necessary to gain the depth of learning required in
this module. The following list of publications has been referred to in the
preparation of this module and is recommended for supporting your study.
However, the list is not exhaustive.
1-178
Captain CF Durham: Marine Surveys (Fairplay, London, 1998). This A4

format publication is an expansion on some of the work in the earlier book
by the same author but its real value lies in the very practical guidance
given on carrying out some of the more common surveys and the provision of many useful work sheets which the surveyor can photocopy for use
on the job.
Lloyds Survey Handbook Seventh Edition (LLP, London, 1998). This book
gives some useful information on the general approach to cargo surveys
and provides information on a number of different commodities commonly
the subject of survey.
The Nautical Institute on the work of a Nautical Surveyor (The Nautical

Institute, London). Divided into four sections, this book covers the
nautical surveyors role in government, commerce, safety and inspection,
measurement and control.
The Society of Consulting Marine Engineers and Ship Surveyors: Marine

Technical Consultancy (Witherby & Co Ltd, London, 1992). This book is
currently out of print but is being revised. It covers much of the work of
engineers and ship surveyors.
Guidelines on the Application of the ISM (Code) (International Shipping

Federation)
STCW 95 Company Checklist (International Shipping Federation)
Scrutton on Charterparties and Bills of Lading, first edition published in 1886.
Robert L Tallack, Commercial Management for Shipmasters (The Nautical

Institute) ISBN 1 870077 33 4
UCP 500 Uniform Customs and Practice for Documentary Credits

(International Chamber of Commerce, January 1994)
Module 1
Recommended Reading
Analysis of Major Claims (UK P&I Club)
Achieving Quality Standards (The Institute of Management/Pitman) ISBN

0 293 604112
A M Chauvel, Managing Safety and Quality in Shipping (The Nautical

Institute) ISBN 1 870077 407
Managing Risk in Shipping, A Practical Guide (The Nautical Institute)

ISBN 1 870077 48 2
Procedures for Port State Control 1997 (IMO) ISBN 91-801-1431-X
Port State Control at Work 1996 (Secretariat of the Paris MoU)
Annual Report and Hull Casualty Statistics (Institute of London

Underwriters)
USEFUL WEBSITES
International Maritime Organisation
www.imo.org
Maritime and Coastguard Agency
www.mcagency.org.uk
International Association of Classification

Societies
www.iacs.org.uk
The Nautical Institute
www.nautinst.org
Port State Control
www.parismou.org
Institute of London Underwriters
www.iua.co.uk
UK P&I Club
www.ukpandi.com
International Standards Organisation
www.iso.ch
1-179
TUTOR-MARKED ASSIGNMENT
A brewer in Europe needs to import 25,000 tonnes of malting barley to cover a

prospective shortfall in supply.
Describe the chain of events and the different documentation and organisations that might be involved in establishing this transaction and in the
transport of the grain.
Indicate where you consider a surveyor (marine or cargo) might be

involved.
The aim of this assignment is to widen your perspective of the logistics chain so
that detailed descriptions of elements with which you are familiar are less important than demonstrating your overall understanding of the transaction.
Please try to restrict your assignment to 1,200 words.
For candidates taking the Diploma option, a Tutor-marked Assignment must be

completed for each core module. There is a minimum pass mark for each
assignment and candidates will be expected to reach this minimum standard.
Collectively, the assignments represent a possible 40% of the candidates final
mark.
On the cover page of your assignment, could you please include

the following information:
1-180
Your name
Course Name Marine Surveying
Course Code LP0058
Module 1
Tutor-Marked Assignment
To speed the processing of assignments, please return your typed assignment

by post, fax or email directly to the TMA Administrator:
Post:
Mrs Parmjit Gill

TMA Administrator
The School of Maritime Operations and Logistics
North West Kent College
Lower Higham Road
Gravesend
Kent
DA12 2JJ
United Kingdom
Tel:
+44 (0)1322 629684
Fax:
+44 (0)1322 629667
Email:
mol@nwkcollege.ac.uk
Remember to keep a copy of your completed assignment in case of loss in the

post. Please also state if you would like confirmation of receipt of your assignment. If so, you must include your email address, as confirmation by post or fax
is not possible.
Emailing Assignments will only be accepted if they are sent as attachments to
the email message.
There are no penalty points for late submission of assignments. You should
attempt to complete each assignment within four weeks of receipt of the module. However, you can submit assignments at any time during the course, but
they must be received before the exam.
1-181
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DIPLOMA IN

The Maritime Industry and Marine

Captain Rodger MacDonald MA, FNI, MM

THE STRUCTURE OF THE MARITIME INDUSTRY

The Main Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

THE PURPOSE OF MARITIME TRANSPORT

Shipping Sophistication and Diversification . . . . . . . . . . . . . . . . . . . . . . . . . .16

THE PURPOSE OF MARITIME STRATEGY AND SAFETY

The Role of the IMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

OCCUPATIONAL HEALTH AND SAFETY

The Role of ILO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Diploma in Marine Surveying 2011 / 2012 (LP0058)

QUALITY AND AUDITS

Audits, Inspections and Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE

The Origin and Objectives of the ISM Code . . . . . . . . . . . . . . . . . . . . . . . . .57

PORT STATE CONTROL (PSC)

The PSC Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

RISK MANAGEMENT AND FORMAL SAFETY ASSESSMENT (FSA)

Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

MARINE SURVEYORS, SURVEY ORGANISATIONS AND HOW TO

Types of Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88

Diploma in Marine Surveying 2011 / 2012 (LP0058)

Individuals and Companies Who are not Classification and

KNOW YOUR CUSTOMERS

Who Instructs Surveyors? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

TYPES OF SURVEY HULL AND MACHINERY

Hull and Machinery in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105

TYPES OF SURVEY CARGO-RELATED SURVEYS

Cargo-related Surveys in General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118

WARRANTY AND OTHER COMMERCIAL TYPES OF SURVEY

Warranty Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142

Diploma in Marine Surveying 2011 / 2012 (LP0058)

Conformity with Specification or Sample (After Shipment) . . . . . . . . . . . . .147

TYPES OF SURVEY WHEN THINGS GO WRONG

General Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149

GOING ABOUT A SURVEY

Preparation and Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

SETTING UP IN BUSINESS AS A MARINE SURVEYOR

First We Define What Type of Marine Surveyor This Applies to . . . . . . . . .168

Useful Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

Diploma in Marine Surveying 2011 / 2012 (LP0058)

Self-Assessment Questions have been provided

Copyright IIR Limited 2011. All rights reserved.

Diploma in Marine Surveying 2011 / 2012 (LP0058)

Diploma in Marine Surveying 2011 / 2012 (LP0058)

THE STRUCTURE OF THE MARITIME

name at least two different customers the survey or will

state the relationship between the various customers; and

describe the main types of charterparty.

THE MAIN COMPONENTS

THE CARGO OWNERS

Diploma in Marine Surveying 2011 / 2012 (LP0058)

The Structure of the Maritime Industry

Therefore, the marine surveyor needs an understanding of the way in which

THE VESSEL OWNERS

Diploma in Marine Surveying 2011 / 2012 (LP0058)

The Structure of the Maritime Industry

Diploma in Marine Surveying 2011 / 2012 (LP0058)

The Structure of the Maritime Industry

has a beneficial interest in a vessel and to be aware of potentially conflicting

THE MANAGEMENT OF SHIPS

The Baltic and International Maritime Council (BIMCO) Standard Management

supervision of the maintenance, repair and general efficiency of the