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CARGO SURVEYINGPROFICIENCYSTAGE TWO

CONTENTS

INTRODUCTION 8

1 MARINE SURVEYING PRACTICE 11-44The Cargo Surveyor in Practice 12

General 12What is a Surveyor? 13Potential Clients 14Communication 14Client Contact 15Obtaining Instructions 15Confirming Instructions 16Standard Terms and Conditions 16Legal Liability, Exclusions and Limitations 16Practical Applications 17“Without Prejudice” Surveys 17Organising the Survey 17Cargo Damage Survey 17The Surveyor’s Tools 18

Torches and/or other portable lighting 18A range of measuring tapes and rulers 18Penknives and multi-tool kits 19Hand mirrors 19Notebook and numerous pencils or pens 19A case 19Camera and lenses 20Magnifying glass and field microscope 20Dictaphone 20Thermometers and hygrometers 21A hydrometer 21Litmus paper or acidity meter 21Silver Nitrate test solution 22Video recorder 22

Photography 22The Surveyor’s Checklist 23The Survey Report 23Facts vs. Opinion 23Reporting to the Client 24Invoicing 24Follow-up and Customer Satisfaction 24Archiving 24

The Professional Surveyor 25The Essential Qualities of a Cargo Surveyor 26Background Knowledge 26Qualifications and Training 26

Competence 27Knowledge 27Experience 27Attitude 28Competence Model for a Cargo Surveyor 28

Knowledge 28Qualifications 28Experience 28Attitude 28

The Role of Professional Organisations & Societies 29Accreditation 29Continuous Professional Development (CPD) 29Essential Resources for a Cargo Surveyor 30Types of Surveyor 31

Nautical Surveyors 31Engineer Surveyors 31Naval Architect Surveyors 31Other Specialist Surveyors 32Government Surveyors 32Classification Surveyors 32

Types of Survey 32Insurance Loss/Damage Surveys 32Pre-shipment Condition Surveys 32Supervision/Overseeing Surveys 33Quality and Quantity Surveys 33Warranty Surveys 33Accident Investigation Surveys 34Risk Assessment Surveys 34General Average Surveys 34

Health and Safety for the Cargo Surveyor 35Survey Preparation 35Safety Equipment and Safety Awareness 36Location and communications 36Summary 36

Standard Marine Survey Trading Terms 37Pro forma checklist 43Example questions 44

4 Cargo Surveying Proficiency – Stage Two © Lloyd’s 2006

2 EFFECTIVE REPORT WRITING 45-81Recording Information 46Research and preparation 46Types of Reports 47Preparation 47Report Writing 48The Survey Report 48

Title page 49Distribution 49Contents (or Index) page 49Introduction 49Summary 49Background 49Procedure 50Findings 50Joint Survey 51Cost of Damage or Quantum 51Cause 51Conclusion 51Recommendations 51Appendices 51Photographs 51

Lloyd’s Documentation Set 52Expert Testimony/Witnesses 53

The Report 53Types of Report 54Reports for the Court 54

The Model Report 55Cover sheet 55Table of Contents 55Summary of conclusions 55Instructions 55Expert’s qualifications 55Documentation and other sources of evidence 56Chronology 56Technical Background 56Opinion 56Literature citations 56Expert’s Declarations 56Statement of Truth 56Signature 56Appendices 57Presentation 57

Expert Declaration 58Schedules CP, J, CC, and C 63Example questions 81

Cargo Surveying Proficiency – Stage Two © Lloyd’s 2006 5

3 CONTAINERS 83-136Introduction 84Background 85

The Convention for Safe Containers (CSC) 85The International Institute of Container Lessors (IICL) 86

Container Construction 88Container Components 94

Corner post 94Corner castings 94Header and sill 94Front-end frame 94Top rail 94Bottom rail 94Cross-members 94Floor 94Roof 94Sides and front 95Doors 95Security seal 95

Types of Container and their Uses 95Flat racks 96Ventilated 96Insulated 96Porthole 96Clip-on 96Refrigerated 96Load limit line 97Tank 99Coil container 99Half height 99Open top 99Platforms 99

Stuffing and Unstuffing 110Introduction 110Fundamentals for Successfully Containerising Cargo 110Inspection prior to Stuffing 110Inspection after Stuffing 111Security Seals 112Procedure prior to Unstuffing 113Procedure after Unstuffing 113

Stowage and Securing of Contents 114Homogenous Cargo 114Uniform stowage 114Palletised cargoes 115Cartons and packages 115Bagged cargo 115Drums 115Vehicle tyres 116


Bulk liquids 117Mixed cargoes 117Unpacked Machinery 118Motor vehicles 118Dry bulk 118Oversized and irregular shapes and cargoes 120Refrigerated Cargo 121

Pre-cooling 121Loading procedures 121

Hazardous cargo 122Securing 122

Pitching 122Rolling 122Heave 122

Summary 130Container Damage 131

Racking 131Toppling 132Container Collapse (corner post compression) 132

Inspection of Containers for Damage and Repair 133Inspection Procedures 133Acceptable Damage 135Non-Acceptable Damage 135Wear and Tear 135Manufacturing Defects 135

Example questions 136

4 HAZARDOUS CARGOES AND THE IMDG CODE 137-158History 138The IMDG Code 139

The Supplement 141The UN Number 141Proper Shipping Name (PSN) 141Class 142

Class 1 143Class 2 143Class 3 144Class 4 144Class 5 144Class 6 144Class 7 145Class 8 145Class 9 145Marine pollutants 145Documentation and Labels 146

Subsidiary Risks 149Packing Group 149Special Provisions 150Limited Quantities 151


Emergency schedule numbers 152Stowage and Segregation 152Conclusion 157

Example questions 158

5 HEAVY LIFT AND PROJECT CARGOES 159-192Introduction 160The Transport Process 161

Manufacturer 162Road 162Crane 163Trailer 163Port 164Vessel 165Port, Road and Final Destination 166

Loading, Securing and Discharging Heavy Lift Cargo 167The Cargo Securing Manual 167Lashing 167Wire Rope Clips 168Steel Wire Rope 169Damaged Wires 170Lashing Wire 171Blocks 171Stability 172

Ship’s Derricks 179Heavy Lift (Jumbo) Derricks 179

Derrick Stress 181Lifting 181

Velle Derricks 182Hallen Derricks 183Stuelcken Derricks 184

Ship’s Cranes 186Specialist Lifting Units 187

Floating cranes 187Crane/Derrick Barges 188Semi-submersible vessels 188Float On-Float Off heavy lift vessels 189Roll On-Roll Off vessels 190Extreme Lifts in the offshore sector 190

Summary 191Example questions 192

6 GLOSSARY 193

7 FURTHER READING 203

8 Registration form for examination 204


Congratulations on passing stage 1 of the CCSP and welcome tostage 2.

Stage 2 focuses on the role of the cargo surveyor, and the skillsand attributes that you require either as a trainee or as anexperienced cargo surveyor working for a Lloyd’s Agency,wherever you may be located in the world.

Chapter 1 should provide you with a general understanding ofthe day to day work of a cargo surveyor and what is required ofhim or her.

Chapter 2 highlights the importance of effective report writing.The survey report is after all the surveyor’s primary product.Effective report writing is essential to good communication,reflects well on your professionalism and skill, and evidencesyour knowledge and expertise as a surveyor. It is ultimately themethod by which you will be judged by clients, colleagues andLloyd’s.

As containerisation continues to impact every part of the world,a thorough knowledge and understanding of containers is vital.Chapter 3 is therefore all about containers.

Chapter 4 deals with hazardous cargoes and the use of theIMDG Code. Dangerous goods can be transported safelyprovided the somewhat complex regulations contained in theIMDG Code, are fully understood and adhered to. This chaptertherefore serves as an introduction to its use.

The final chapter focuses on heavy lift and project cargoes,concentrating on project management, heavy lift equipment andship’s stability. Although some of you may not encounter thetypes of ships’ derricks referred to in this chapter, they havebeen included because they can still be found in many parts ofthe world.

Continuing professional development throughout our workinglives is essential to any profession. It should also be fun. Itherefore hope that you enjoy reading this manual as much aswe enjoyed producing it.

Sonja FinkController of AgenciesLloyd’s Agency DepartmentJuly 2006

INTRODUCTION


We are grateful to the following businesses/organisations forproviding us with some of the material used in this manual.

International Institute of Marine Surveying (IIMS)www.iims.org.uk

International Maritime Organisation (IMO)www.imo.org

The Expert Witness Institute (EWI)www.ewi.org.uk

Galatea Underwriting Agencies Ltdwww.galatea-pi.co.uk

Mr Roy Martin for the stability diagrams on pages 176 to 178.

Our thanks also to those Agencies whom we approached whogave their valuable feedback and comments on the penultimatedraft.

ACKNOWLEDGEMENTS


While Lloyd’s has used all reasonable endeavours to ensure, andbelieves that the information contained in this manual is accurateand fairly and properly presented we will accept no legal liabilityfor any conclusions drawn by any person from the contents. It isacknowledged by each person using this manual that:

i) the contents of this manual derive from a variety of sources and[may be modified or replaced from time to time]; and

ii) the circumstances in which the manual is used is outside thecontrol of Lloyd’s.

Accordingly, Lloyd’s:

1) gives no warranties or representations that the manual iscorrect, complete, comprehensive or up-to-date;

2) excludes all responsibility and liability for any loss occasioned toany person acting or refraining from action as a result of anystatement, fact, figure or expression of belief contained in thismanual.

Appropriate professional advice is recommended on the stepsany person may propose to take on the basis of this manual.

Lloyd’s recognises that both men and women work for Lloyd’sAgencies and so the use of the male pronoun throughout hasbeen adopted simply for the sake of clarity.

COPYRIGHTAll rights reserved. Material published in this training manual iscopyrighted and may not be reproduced in whole or in partincluding photocopying, for any purpose without the writtenpermission of Lloyd’s.

disclaimer

1MARINE

SURVEYING PRACTICE


THE CARGO SURVEYOR IN PRACTICEGeneral

A cargo surveyor covers a very wide range of activities. The range of cargoes transported worldwide isimmense and, whilst many cargoes share common characteristics, the general diversity means that nosurveyor can possibly know everything. Indeed no surveyor can (or indeed should) claim to be competentin all fields of cargo surveying and by default there will always be some degree of specialisation. How sucha specialisation is developed is probably a function of background and experience, based on knowledgeand skill built up through time.

Different cargoes


What is a Surveyor?

A marine surveyor (and in particular a cargo surveyor) examines and reports on cargo. There are nonational or international standards of qualification and virtually no regulation although in some countriessurveyors do need to be licensed.

It is important to note that in the United Kingdom the title of ‘surveyor’ when applied to property andbuildings is different. In order to be a ‘surveyor’ in the civil engineering sense you need to belong to theInstitute of Chartered Surveyors which has specific criteria for qualifications of its members. However, theInstitute of Chartered Surveyors has no particular branch or section that deals with cargo surveyors.

Different cargoes

The fact that cargo surveying (and indeed virtually all marine surveying) is completely unregulated cancause significant problems. As anyone can legally call themselves a cargo surveyor, the competencestandard of any surveyor depends entirely upon the individual’s integrity. It is incumbent upon theindividual surveyor to make certain that he is competent to carry out the work of a cargo surveyor.

Potential Clients

The cargo surveyor’s potential clients are likely to be the owners of the cargo and/or insuranceunderwriters for either the cargo or the carrier (ship’s cargo liability is normally underwritten by theshipowner’s P&I Club). Some surveyors choose to restrict their clients to a particular group of insurers e.g.either property insurers or liability insurers, but not both. Hence, some surveyors work exclusively forcargo underwriters or owners and do not normally accept instructions from shipowners or P & I Clubs.However, whilst such segregation of clients was widespread a few years ago, it is much less so today andit is now quite likely that a surveyor may receive instructions from either party.

Many surveyors will work for any party instructing them but they need to be aware of the potential forconflicts of interest. In practice, there is still a tendency for surveyors to become best known for acting forone particular type of client. It is important, though, to keep in mind that those who act for any clientseeking their services, irrespective of their market segmentation, may be seen as being the most trulyindependent and impartial.

Communication

A surveyor must act in accordance with the instructions of his client. In order to ensure this, the surveyorneeds to be certain that the communication process between him and his client is as clear andunambiguous as possible.


A surveyor working with cargo

Client Contact

Generally, most survey instructions are received by telephone. A typical scenario would be an urgenttelephone call from the client or his broker who wants a surveyor to visit a ship in a nearby port to protecthis/owners’ (either cargo or ship) and/or underwriters’ interests. The client or broker may have very littlespecific knowledge of the situation.

The surveyor needs to remember that the telephone is in effect his shop window and positive firstimpressions go a long way in establishing the future client/surveyor relationship. The surveyor also needsto keep in mind that the telephone conversation could result in a binding contract between the broker/hisclient and the surveyor. Verbal agreements are binding under English law. Most importantly, the surveyorshould enquire as to the identity of the client. He should not assume that the person making the initialcontact is the client.

Obtaining Instructions

Either during the initial contact or thereafter the surveyor must establish the client’s precise requirements.If a cargo survey is required, he will need to know the type of cargo involved, its location and availabilityfor inspection including any timescales involved, as well as any particular areas of concern and whatexactly the client expects from the survey report. Establishing this in the beginning avoids problems later.Obtaining clear and complete instructions is absolutely essential and if the instructions raise any concernsthen these should be addressed immediately.

The surveyor should keep notes of the conversations and the key points by using a day book or jobenquiry. This is a useful reference source and can be invaluable if a subsequent dispute arises over theterms of engagement.


A daybook and a job enquiry form


Confirming Instructions

A surveyor needs to understand that once an offer to do something has been accepted, provided there isto be a consideration for provision of the service (normally money), and the intention to enter into legalrelations, then a contract exists. So, when a surveyor agrees to conduct a survey for a fee, he enters into acontractually binding agreement. This can occur during the initial telephone call from the client or hisbroker or other representative. Clearly, this can lead to significant confusion or misunderstanding and, thesurveyor is therefore well advised to always prefix any discussions about the provision of his services asbeing ‘subject to contract’.

Following the initial telephone conversation, the surveyor should confirm his understanding of the client’srequirements, in writing, before starting any work. He should also draw attention to any terms andconditions of the contract that he might wish to impose.

It is also important to establish who will pay for the service, when, how and the cost involved.

Some surveyors will not do anything until they have received payment in full (cleared funds) from theclient (particularly for unknown foreign clients).

Some will undertake the survey and write the report but not part with it (or indeed any information aboutthe cargo) before payment.

Some will dispatch an invoice with the report to await payment at a later date (suing the client forpayment if necessary).

Standard Terms and Conditions

As part of the contract negotiations, some surveyors will incorporate their standard terms and conditions.Standard terms and conditions are commonplace in daily commerce and are frequently seen on the backsof contractual documents, sometimes in very small print.

These terms normally include the payment terms, scope of work, any limitations of liability, agreement ofresponsibility in the event of unforeseen events (force majeure), confidentiality and the applicable law. Therole of such terms is to minimise the scope for misunderstanding between the parties and they can bevital, particularly when working for unknown clients.

Some professional indemnity insurance companies require (as a term of the provision of the insurancecover) that a surveyor uses terms and conditions, so as to reduce their exposure should the surveyormake a mistake. They may even provide sample forms of such terms and conditions.

A standard Marine Survey Agreement can be found at the end of this chapter.

Legal Liability, Exclusions and Limitations

One of the important reasons for using standard terms and conditions is that it sets out clearly thesurveyor’s responsibility and his legal liability when things go wrong. It is imperative however that anystandard terms and conditions or other provisions relating to the surveyor’s legal liability are brought tothe client’s attention at the time of making the contract. They are of no use if introduced, subsequently. Forexample, a reference to limits of liability after the contract has been concluded by including a section onthe surveyor’s limitation of liability in the actual survey report will be of no benefit to the surveyor.

Under English law, a contract may limit liability for virtually everything, subject to two very specificprovisions. Any contract must be ‘fair’ which means in essence that it must not seek to exploit a particularposition of strength and no contract can exclude liability for negligence resulting in bodily injury or death.

Limitations refer to both legal limitations on the extent of responsibility the surveyor is prepared to accept,and practical limitations in undertaking the work. If a surveyor agrees to undertake a survey that will lookat ‘all parts of the cargo’, he has agreed to look at ‘all parts’, even those that cannot be physically lookedat because they are obscured in some way. Clearly it would be a foolish surveyor who works to such adescription. However, all too frequently, the surveyor may be faced with such a request. To avoid suchproblems the surveyor use standard terms and conditions which contain general provisions that state that,


if the cargo/subject matter cannot be seen or checked, it will not be included as part of the service beingprovided. Once again, it needs to be emphasised that this has to be brought to the client’s attention beforethe contract is agreed. Including it in the survey report after the event is of no value.

Practical Applications

So how does a surveyor actually go about defining the work he is to do for his client?

Following the initial telephone call, the surveyor should summarise the client’s requirements in a writtenmessage by letter, fax, e-mail and send it to the client with a copy of his standard terms and conditions.Lloyd’s Schedule ‘L’ may be invoked for this purposed. Ideally the written message should be in duplicateand the text should require the client to sign and return one copy acknowledging both receipt of thedocuments and his intention to be bound by their terms.

‘Without Prejudice’ Surveys

Many surveys are required to be conducted ‘without prejudice’ or ‘without prejudice to the rights of anyparty’.

An instruction to conduct a without prejudice survey would normally come from a lawyer or possibly froman insurance company or its representative.

‘Without prejudice’ surveys are carried out in order to provide the basis for a settlementbetween two parties. It is important, from a legal perspective, that nothing a surveyorwrites or says, when attending upon the instructions of one of the parties, is seen ascommitting that party in any way to any particular basis of settlement.

Surveys need, therefore, to be carried out ‘without prejudice’ to any settlement eventually concluded, andthis needs to be understood by those involved. The surveyor should always state to the parties at theoutset that the survey is ‘without prejudice’, and it is usual to state this fact in the report. It is important tonote that the label ‘without prejudice’ does not mean anything unless the parties have agreed to thisbeforehand. The label alone does not give the document legal privilege to prevent it from beingdiscoverable (called in evidence) in the event of litigation. Once again make certain that you understandwhat your client’s precise requirements are.

Organising the Survey

Having completed all necessary formalities in establishing a contract with the client, the surveyor is nowready to move to the next stage; that of organising the survey. Whoever the instructing parties are, therequirements and procedures for organising a survey are the same.

Cargo Damage Survey

For this type of survey, the surveyor’s instructions are usually to determine the cause, nature and extent ofdamage to a particular cargo. To do this the surveyor will need the owner’s permission to access thecargo. Normally gaining access is not a problem. However, in very contentious claims (often where verylarge sums of money are involved) the surveyor may find that he is refused access to either the cargo orthe scene of the alleged damage. In such circumstances there is nothing that the cargo surveyor can doother than to note the names and positions of those refusing him permission and then refer back to theinstructing client.

Practically, in some dynamic situations where the casualty is occurring whilst the surveyor is in attendance(such as a grounding with progressive flooding of a cargo), the surveyor can find himself being drawn intosorting out the problem. Whilst it is human nature to want to help, particularly when people are in need ofassistance, the surveyor should always remember the client’s instructions and, if in doubt as to the scopeof his authority he should refer back to the client for further instructions.

Occasionally the cargo owner or underwriter will ask the surveyor to intervene or assist in makingdecisions. Caution is required here. Whilst a good surveyor can make a significant difference in minimisingfurther damage to cargo, if he does not have the client’s authority to make decisions and take action and


these actions subsequently turn out to be more costly than they should have been, who will pay? Thecargo surveyor should therefore be certain of his authority by obtaining either written instructions or byconfirming his instructions in writing, before proceeding.

Most insurance contracts will require the assured to act as a prudent uninsured. This means the assuredmust take steps to prevent or minimise any loss or damage, which may involve incurring costs to do so,which the assured may have to pay, initially at least.

The Surveyor’s Tools

Over the years experienced surveyors build up a range of tools to help with all eventualities normallyencountered during a survey. It is recommended that surveyors buy, use and maintain tools calibrated toan acceptable standard for the required task.

Basic equipment includes:

a) Torches and/or other portable lighting. Good lighting is essential in identifying what is being lookedat. Always ensure that there is an adequate power source e.g. by having spare batteries available and thattorches and other powered tools are spark proof and have been certified as such before enteringenclosed spaces or boarding tankers.

Torches and portable lights come in many different types and sizes. It is often useful to carry one largetorch and a much smaller spare.

b) A range of measuring tapes and rulers. These are available in varying lengths and types includingsteel expanding, cloth or fibre, plastic and metal straight edged rulers.

Various types of ruler, vernier callipers and tape measures

Various torches and portable lighting


c) Penknives and multi-tool kits

d) Hand mirrors. Hand mirrors, together with some means of reaching with the mirror are useful for lookingin those hard to access spaces.

e) Notebook and numerous pencils or pens, as most will not work if accidentally dropped in the bilge.

f) A case to hold all the equipment including a variety of seals and labels to secure and identify samples.

Penknife and multi-tool

Mirrors and endoscope

Tool box and cases


Slightly more technical equipment includes:

g) Camera and lenses which may include zoom and micro and macro lenses. Cameras can be eitherconventional or digital. A good flashlight may be need in dimly lit spaces.

h) Magnifying glass and field microscope

i) Dictaphone, with tape or digital

Magnifying glasses and field microscope

35mm film camera and digital camera

Digital and analogue dictaphones


More specialised equipment includes:

j) Thermometers and hygrometers to measure temperature and humidity.

k) A hydrometer which measures specific gravity or density

l) Litmus paper or acidity meter for determining acidity/alkalinity

Digital hygrometers (with temperature measuring capabilities) and awhirling psychrometer which also measures humidity. (This is a veryaccurate instrument but requires a supply of distilled water.)

Brass hydrometer and dipping thermometers

Blue and red litmus paper


m) Silver Nitrate test solution for detecting the presence of chlorides as well as sampling containers(bottles and bags, clear and obscured, plastic and glass) together with a means of sealing and labellingthe containers.

n) Video recorder (tape or digital)

All equipment should be kept in good condition with the batteries and spares fully charged and readilyavailable.

Any piece of equipment is only as good as the person who uses it, so before using a new piece ofequipment on a particular job the surveyor should already be familiar with its use.

Photography

With the introduction of digital cameras and video a debate has arisen over whether or not to use digitalphotography for survey work because of the ease with which the image can subsequently bemanipulated.

If a surveyor takes a digital photograph and subsequently relies on that image in his report, the imagebecomes part of the report and is therefore as trustworthy as his written word. Furthermore if thesurveyor has any concerns about including digital images he can always include a statement in his reportthat the image in the picture is a true representation of what he actually saw.

Silver Nitrate test kit

Analogue and digital video recorders


However if the photographs are required as evidence before a court of law then the surveyor shouldconsult his client beforehand, or revert to traditional pictures. The perfect, albeit somewhat impractical,solution is to have both types of camera. Indeed with some particularly interesting surveys the surveyormay well wish to use both traditional and digital photography.

He should also, always ensure that the camera functions properly, that the battery is fully charged and thata spare battery is available.

The Surveyor’s Checklist

The role of a checklist is to provide the surveyor with two things. The first is a straight-forward reminder ofeverything that needs to be checked for any particular type of survey. The second is for quality control sothat before the surveyor leaves the site he knows, positively, that everything he should check has beenchecked because all the relevant sections of the checklist have been completed.

There is no standard cargo survey check list though some clients have ‘in house’ forms or otherdocuments which include different check lists for different situations. Some specialist cargo organisationsincluding some insurers have standard forms for motor vehicle damage and/or container damage.

The checklist also provides a useful tool by which the surveyor can record his findings either in writingor by dictating the information into a dictaphone or by typing up the information on his portablecomputer on site.

At the end of this chapter you will find a basic pro forma file checklist. The list is by no means exhaustiveand should be expanded, amended or shortened to meet individual needs.

The Survey Report

Having completed the inspection of the cargo, the surveyor should leave the site with sufficient informationto write the report. The report should then be written either in a narrative format or by completing aprepared form such as Lloyd’s Standard Report Forms for Goods viz. Schedule ‘C’ or Schedule ‘CC’.

Facts vs. Opinion

Surveyors are paid to establish the facts and report on them. Surveyors should thereforenot render an opinion unless requested to do so by the client.

The surveyor’s job is to look at, and report on, what he finds. Observations made by a surveyor fall intotwo distinct categories viz. facts and conclusions. If the facts support only one conclusion then theconclusion may be expressed by the surveyor and does not constitute an opinion. This is because thefacts have led the surveyor to an inevitable conclusion which any other honest surveyor faced with thesame facts, would reach. However if there are insufficient facts to support the conclusion, then theconclusion amounts to no more than conjecture and is hence unacceptable.

If asked to express an opinion then the surveyor should do so. He must however clearly differentiate in hisreport what is fact and what is opinion, so as to avoid any misunderstanding. Unfortunately all toofrequently surveyors’ express opinions such as ‘the cargo was loaded wet’ or ‘the ship did everythingpossible to prevent this damage from occurring’. Such blanket statements are extremely dangerous. To becertain whether or not the cargo was or was not loaded wet, the surveyor would need to have beenpresent himself at the time of loading. Equally, whilst the surveyor might think the ship did everythingpossible to prevent the damage, can he truly support such a statement with facts, under cross-examination. Remember, the surveyor’s primary purpose when conducting a cargo damage survey, is toestablish the cause, nature and extent of any loss or damage.

If the surveyor has information which he believes may be of interest to the client but which is not strictlyspeaking factual, then he should seek his client’s advice on how he wants this information reported. Also,remember if possible litigation is involved, the client will not want anything reported that could bedetrimental to his interests should it become public knowledge. The client may therefore prefer a verbalreport or a confidential letter sent via his legal advisers in contemplation of litigation. Always check if thereis ever any doubt about what the client wants.


Reporting to the Client

Traditionally the surveyor will report his findings in a written survey report. However, with wide ranging andrelatively inexpensive computer technology available, reporting electronically by disc, CD or e-mail are allnow potential options. Whilst reporting by e-mail can be quick and efficient, always ensure that theinformation is secure i.e. that it cannot be altered, that correct references have been included and that theclient has received all of the information. Remember some computer firewalls remove attached files. Andof course, provide the client with the information in the manner he requires but only if it is possible to doso securely.

Invoicing

Once the report is finished, an invoice needs to be prepared. The invoice helps demonstrate the work thathas been carried out and should include an itemised breakdown of the total amount being charged.

It should clearly state the name and address (and registered address if a company) of the payee who maybe an individual or a sole trader, partner or company; how payment should be made including any bankingdetails if relevant; and a VAT reference if applicable. Other items, such as the total amount due and thepayment terms are clearly also required.

Payment terms on the invoice should always reflect what was initially agreed with the client.

Follow Up and Customer Satisfaction

Once payment has been received it is useful to ascertain whether the client was happy with the serviceprovided. The only way to find out is to ask by means of a follow up call or letter, as a dissatisifed clientmay simply take his business elsewhere.

Keep in mind that research suggests that a satisfied client will possibly tell one or two relevant colleagueshow pleased he was with the service, whereas a dissatisfied client will probably tell eight to tencolleagues. Generally speaking, client recommendation is the single best form of advertising. If the client isnot completely happy with the service provided then the surveyor should try to resolve the problem ratherthan running the risk of having his reputation damaged by a dissatisfied customer.

Archiving

Finally, with the job done, the surveyor will need to develop some means of storing or archiving hisrecords. For the new surveyor this will not be too much of a problem as boxes or filing cabinets are aready means of storage. However, as a surveyor builds up his business, the volume of paperwork that heneeds to store can become problematic.

A number of different issues need to be considered. The first is the length of time survey records need tobe kept, in case of a possible legal dispute. Generally, under English law, contractual disputes become timebarred 6 years after the date of breach of contract. Records should therefore be kept for a minimum of 6years. However this time period will vary from country to country.

An office archive


Legal considerations are not the only reason to keep survey reports. Some defects relating to particularships or equipment only become apparent over time. A surveyor may carry out a survey of a particularship from a particular region and subsequently note that other similar ships from different regions havethe same problem. In such cases being able to refer back to a historical report and particularly anyphotographs, can be very useful.

Further, having a source of reference material on particular items and maintaining a database of oldreports may eventually build up into a significant reference library.

Finally, the surveyor will need to develop some means by which he can find information that is storedaway. There is nothing worse than knowing that there is a relevant document ‘somewhere’ and not beingable to find it. Therefore, with any archiving system there needs to be some form of record to enableretrieval without too much difficulty.

THE PROFESSIONAL SURVEYOR There is no internationally agreed definition of what or who a cargo surveyor is or does. The ConciseOxford Dictionary defines a surveyor as:

• ‘an official inspector, a person professionally engaged in surveying’.

A survey is defined as:

• ‘let the eyes pass over, take a general view of form, general idea of arrangement and chieffeatures of: examine condition of, collect by measurement etc. All facts needed fordetermining the boundaries, size, position, shape, colour etc;

• general view, casting of eye or mind over something; inspection of condition, amount etc., ofsomething, account given as a result of this’.

Marine is defined as:

• ‘of, found in, produced by, the sea: of shipping and naval matters’.

The Marine Encyclopaedic Dictionary defines a surveyor as:

• ‘a person employed by a shipping association or a private person to inspect cargoes, shipsetc. He may be a Lloyd’s Register Surveyor who undertakes to inspect ships and issue theappropriate classification certificates. He may also be asked to inspect and report on adamaged ship or a ship for delivery or redelivery in a time charter party’.

Survey is defined as:

• ‘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 anyauthorized corporation;

• 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 aresubmitted for damaged cargoes or ships’.

Considering these various definitions, the International Institute of Marine Surveying (IIMS) hasadopted the following definition of a marine surveyor:

• ‘A person who uses their particular skill and expertise (based on established competence ofships, 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.’


Amending this definition to be specifically applicable to cargo a reasonable definition of a cargo surveyorbecomes:

• ‘A person who uses their particular skill and expertise (based on established competence ofcargoes, ships and the sea or any waterway) to look at and report on the factual condition ofany cargo or thing appertaining to such goods and their respective environments’.

In creating this definition care has been taken to avoid any particular category of cargo or the type of worka cargo surveyor might undertake e.g. soft fruit, timber, steel etc., whilst remaining very specific about theobservation and recording of facts. The definition has been constructed this way in order to clearlydifferentiate between a surveyor and a consultant.

The IIMS has defined a consultant as:

• ‘A person who uses his or her particular skill and expertise (based on established competenceof, cargoes ships and the sea or any waterway) to give an opinion on the condition of any ship,cargo or thing appertaining to ships, cargoes and their respective environment.’

The clearly stated difference between a surveyor and a consultant viz. the stating of facts versus the givingof an opinion, does not necessarily apply in many parts of the world where there is no such clear line ofdemarcation.

In reality a surveyor is, or may be, expected to express an opinion on his observations depending on hisclient’s instructions and expectations.

The Essential Qualities of a Cargo Surveyor

A good cargo surveyor needs to have a number of essential qualities viz. excellentobservation and communication skills and the determination to discover the truth.

It is the surveyor’s job to look at and report on all that he sees when surveying a cargo. Not only must hebe observant but he has to believe in his own knowledge and experience so that when reporting he canbe confident that his observations are factually correct.

A good surveyor will often look at what would generally appear to be a part of a cargo in seemingly goodcondition but some small and seemingly insignificant detail (a trigger sign) will alert him that all is not whatit first seems.

The second major attribute of any good surveyor involves a determination to discover the truth. Thisrequires steadfastness, patience and systematic enquiry.

Finally, the surveyor must be able to communicate his findings to his client in such a way that the clientfully appreciates what the surveyor has found during the survey. In doing so the surveyor needs toremember that his client might not be as well informed as himself or understand specific terms andmarine jargon. The surveyor therefore needs to prepare his report using language that is appropriate forhis client, and the only way to do this is by knowing the client.

Excellent communication skills are probably the most important attribute of a good surveyor.

Background knowledge

A good general knowledge of ships and cargoes is essential. This knowledge might be drawn from workingin the industry such as in a freight forwarder’s office or it may be from many years of experience at sea.However to become a truly competent surveyor a great deal of knowledge and experience is required.

Qualifications and training

A qualification is a measure or verification of how much knowledge a person has in relation to a specificstandard. Therefore, the standard set to achieve the qualification is of the utmost importance.

There is a common misconception, particularly in the cargo surveying industry, that an individual can bequalified by experience. This is clearly not the case. Whilst the individual may be very experienced, such


experience does not constitute a qualification. Although the person’s experience has contributed to theindividual’s knowledge such that he could achieve a qualification at a given standard, if required,experience itself is not an academic qualification.

Qualifications require independent verification of an individual’s knowledge measured against a definedstandard.

However academic qualifications alone, do not make a good surveyor.

Training can take many forms and this could include formal training as part of an employee developmentprogramme or informal training more along the lines of a traditional apprenticeship. The key feature of anytraining is that it will have exposed the trainee to a range of different topics in a range of situations withthe trainee often tested to determine if they have an understanding of the subject matter. Such trainingcan take the form of National Vocational Qualifications or independent specialist courses.

Many different areas of training will be relevant to the cargo surveyor and there is no one perfect course.Probably the most important rule is to learn as much as possible and to continue that process at all timeswhilst working as a cargo surveyor.

Practical experience in an informal environment also provides valuable training, and while this course willprovide the prospective cargo surveyor with the necessary background knowledge; to become acompetent surveyor, he will need actual practical experience.

Competence

Traditionally, a person was judged to be competent to carry out any particular function provided he coulddo the job satisfactorily. Today, competence is measured by the individual’s knowledge, qualifications,experience and attitude.

Knowledge

Clearly, in order to be able to carry out a survey as a cargo surveyor, some knowledge of cargo transportand stowage is essential. Such knowledge can be gained from reading, formal or informal teaching,courses, seminars, conferences or general experience in the field of cargo transport (whether, say, as aseafarer or as a stevedore). In addition, some knowledge of wider issues that affect cargoes, such as thelaw, industry organisation, standards and information sources, is also of significant value.

Where specific knowledge comes from is, to some extent, less relevant than acquiring the knowledgeitself. However to establish whether he has fully understood, the knowledge gained requires examinationwhich may lead to various qualifications. Hence the need for Lloyd’s cargo surveying proficiency tests.

Experience

Whilst knowledge, as measured by qualification, is an essential starting point in terms of competence, inthat it establishes theoretical knowledge, practical experience is also required.

Traditionally, post qualification experience was gained by some means of apprenticeship or junior post,working as an assistant to a more experienced individual. Following a given time period the experiencelevel of the individual was assessed, normally by peer review, to determine if the experience gained fromthe application of knowledge was sufficient for the individual to move on to more demanding and complexwork.

Various mechanisms exist for the management and assessment of experience. Generally these involvesome form of structure to record an individual’s experience as he progresses. Once sufficient experiencehas been gained, the individual is assessed by his superiors.

Within the cargo surveying industry there is no universally accepted standard of experience. Someorganisations set arbitrary standards, and within professional associations there is much disagreement asto what constitutes appropriate experience. However, somewhere between two to four years spentactively immersed (full time) in the chosen field should produce a competent cargo surveyor.


Attitude

To be a truly competent cargo surveyor requires a certain attitude. This is also by far the most difficult toteach or to measure. Attitude can perhaps best be described in terms of a range of intangible aspects ofhuman character such as integrity, probity, tenacity, humility, fortitude, courage, compassion, humanity,wisdom and common sense to name but a few, and is often only recognised when an individualdemonstrates the wrong attitude.

At its most basic, if an individual has the right attitude and a desire to be competent in his chosenprofession, he will establish the knowledge, qualifications and experience required, and pursue aprogramme to achieve this objective. Thereafter he will recognise his limitations and actively embark oncontinuing professional development throughout his career.

Competence Model for a Cargo Surveyor

In the absence of any single accepted international standard by which to measure the competence of acargo surveyor we would recommend the following model.

a) Knowledge

Know about different types of cargoes, how they are packed and transported, their particularcharacteristics and any problems associated with them or their carriage.

Acquire general knowledge about the cargo industry, shipping and transport industry, law, and insuranceeither through formal academic training at a college or university or through private study and jobexperience or both.

A good understanding and knowledge of human behaviour also helps.

b) Qualifications

Obtain qualifications in subjects relevant to cargo surveying.

A University degree will demonstrate your academic ability in your chosen subject but this may notprovide you with the knowledge or skills required to become a marine surveyor. A degree in navalarchitecture or maritime law will of course be helpful but a degree in media studies will not. A specificcourse in marine surveying from an Academy or College would be more appropriate.

c) Experience

Competence as a cargo surveyor requires a minimum of 2 to 4 years experience, working as a full timetrainee surveyor under the active supervision of an experienced surveyor/mentor. The trainee shouldattend on site working with damaged cargoes and various forms of transportation, gaining experience inreport writing and dealing with industry personnel.

Membership of, and active involvement in, a professional association is also useful. Active involvement willbring the trainee into contact with other surveyors (not necessarily of their own particular discipline) whowill, on a day to day basis, be facing some of the more difficult issues which confront a surveyor. Beingpart of an organisation will help the individual assess his own capabilities and identify possible gaps in hisknowledge and experience.

d) Attitude

As mentioned earlier, attitude is difficult to define and even harder to measure. For the aspiring cargosurveyor the best method of determining whether he has the correct attitude is for him to mix and workwith other experienced cargo surveyors whom he respects. If there is an empathy between them thenthere is a reasonable chance that he has the right attitude.


The Role of Professional Organisations and Societies

Surveying can be a lonely profession as much of the time may be spent working alone. For anyoneworking alone who is busy, it is easy to become detached from developments within the industry. In sucha diverse and challenging role it is important for the surveyor to keep fully up to date with all issues thatmay affect his activities or business, be they technical, legal, ethical or financial. It is here that professionalorganisations play a major role.

There are a number of organisations that have members who work as cargo surveyors. A couple ofexamples in Europe and the US are:

• The International Institute of Marine Surveying (IIMS) based in Hampshire, England

• The British Association of Cargo Surveyors (BACS) based in Essex, England

• The Society of Accredited Marine Surveyors (SAMS) based in Jacksonville, Florida, USA

• The National Association of Marine Surveyors (NAMS) based in Virginia, USA

• Associazione Italiana Periti Trasporti – the Italian Association of Marine Surveyors (A.I.P.E.R.T.) based inRome, Italy

All of these societies operate under codes of professional ethics, and some offer training. Some requirecontinuous professional development and some publish magazines or newsletters. However, mostimportantly, all provide the opportunity to have contact with fellow surveyors who face similar challengesand problems.

As with all organisations or societies the value that any individual member draws from his or hermembership is directly proportional to the amount of effort that they put in.

Accreditation

Surveyors often list their qualifications and any professional memberships on their business cards. A quickglance at a surveyor’s business card may reveal various accreditations some of which may be relevant,some not. For example, FNI (Fellow of the Nautical Institute), MIIMS (Member of the International Instituteof Marine Surveying) are of course relevant whereas a BA degree in Geography whilst educational is notrelevant to the job of a cargo surveyor.

Continuous Professional Development (CPD)

For modern day professionals such as doctors, dentists, lawyers, architects or, mariners, continuousprofessional development (CPD) is mandatory. CPD ensures that people who are actively involved in theirprofessions remain up to date with changes and issues that affect their chosen profession.

Although there are no CPD requirements for cargo surveyors they too should keep abreast ofdevelopments and new techniques.

A cargo surveyor is considered to be an individual in possession of particular knowledge and skills. Shouldthat knowledge be found wanting the surveyor may be sued in tort for negligence for any losses his clientmay suffer.

Cargo surveyors need to be aware of the issues facing the industry by regularly reading relevantpublications and being active within professional associations. A surveyor who believes he does notrequire CPD because he has 20 years experience on the job, should ask himself whether he has acquired20 years worth of knowledge and genuine experience or whether he has one year’s experience repeated20 times.

For career progression and development it helps to be able to demonstrate continuing commitment tokeeping up to date and one of the best ways of achieving this is through a CPD scheme of a professionalorganisation.


Essential Resources for a Cargo Surveyor

Technical Resources

Surveying is a technical profession. As such it demands a level of technical proficiency andunderstanding. Today, various tools and equipment exist to enhance the surveyor’s ability to find defectsor problems affecting a particular cargo. Regardless of the available equipment, the results from anydiagnostic tool are only ever as good as the understanding and skill of the operator, who needs to fullyunderstand the equipment’s limitations and its proper use. Temperature probes are a classic example. Alltoo frequently a temperature probe is inserted deep into a bulk cargo of grain which records a highreading with the surveyor then reporting that the cargo has become wet and is spontaneously heating. Indoing so the surveyor has completely failed to understand that a high temperature reading on its owndoes not confirm or deny the presence of water and indeed there could be other factors which arecausing the cargo to heat up.

Surveyors should be certain that they understand the use and limitation of all of the equipment that isavailable to them.

Needless to say office equipment such as a personal computer, fax machine, scanner, photocopier and e-mail and internet access are all essential tools for the modern surveyor who needs to be computerliterate.

Reference Materials

Another valuable resource for the cargo surveyor is his reference library. This will include books andmagazines, access to a technical library and use of the World Wide Web.

Reference materials provide the surveyor with a source of information to which he can refer. Often thesurveyor will find something in the field that he has not seen before. This is not unusual given the hugediversity of cargoes and potential problems. Many surveyors maintain technical files in which they keeparticles from magazines and publications suitably catalogued for easy retrieval. In time and as thecollection grows it becomes an invaluable resource to the surveyor.

Remember also that old books and publications can provide useful nuggets of information.

Record Keeping and Databases

As stated earlier, surveying can be a solitary profession and there is not a huge amount of informationsharing. However, in the course of his career the cargo surveyor will be exposed to a large range ofdifferent commodities and problems many of which can be grouped under various categories. Surveyorsshould keep records of say the type of cargo involved and the nature of the problem as a referencesource, should a similar problem be encountered in the future. Today, with the aid of a personal computer,database management is a lot easier.

Many surveyors even collect copies of other surveyors’ reports for information.

Surveyors should keep copies of all their reports (either in hard copy or electronically) and review themperiodically. If the reports done today are no better than the ones that were done ten years ago, then thesurveyor should question his continuing professional development.

Network of Contacts

The work of a cargo surveyor is extremely diverse and it is therefore impossible for anyone to knoweverything there is to know about all cargo. The surveyor should therefore develop a network of specialistcontacts to assist him when needed e.g. a container specialist or refrigeration specialist or even a micro-biologist or organic chemistry professor. He should spend time developing a network of contacts and ifever in doubt he should not be afraid to ask.

Professional Indemnity Insurance (PII)

Professional Indemnity Insurance (PII) exists for financial protection, should the surveyor make a mistake.Surveyors do occasionally make mistakes. Good surveyors not only minimise the risk of making a mistakebut also ensure that the impact of any mistake is limited.


PII is expensive. However, it has become generally accepted practice in the UK for surveyors to have suchinsurance. Indeed some professional organisations for surveyors will not allow membership without proofof such insurance.

The companies that provide such insurance pay for the mistakes of surveyors and therefore have plenty ofexperience of what not to do. Some companies provide their assureds with free guidelines and informationon how to avoid mistakes, as it is in their interests to reduce the potential number of claims.

The best approach is to always set out to do the best possible job. All work should be conducted inaccordance with standard terms and conditions agreed to by the client. The surveyor should build up agood record over several years to demonstrate to the Underwriter that he is a good risk, thereby keepingpremiums as low as possible.

Types of Surveyors

Surveying is a generalist occupation and, much like a general practice doctor, most surveyors will havebroad experience on which to draw and on which to base their findings. However, some surveyors dospecialise in a particular subject or commodity and the general cargo surveyor should know the variousspecialist categories to enable him to identify the correct expert for a particular job.

Nautical Surveyors

Typically, a nautical surveyor will have been to sea in commercial ships as a deck officer for some years,culminating in a period of time in command as a deck officer.

The nautical surveyor’s area of expertise will be the safe operation of commercial ships. This will includesuch aspects as collision avoidance, good seamanship, meteorology as applied to ships, cargo stowage,crew management, emergency situations and stability as applied to ships’ safety.

Nautical surveyors may not necessarily have much experience of structures or engineering, other than ageneral overview gleaned from the experience of working with people with these specialisations over theyears.

Nautical surveyors are sometimes used as ‘Nautical Assessors’ in the English Admiralty Court where theyprovide independent expertise to the Judge on technical matters relating to ship operations.

Traditionally many cargo surveyors started as seagoing deck officers before coming ashore to work as acargo surveyor. However, with the progressive reduction of seafarers from the traditional seafaring nationsthis career migration has reduced in recent years.

In the United Kingdom the main representative organisation for qualified nautical personnel is the NauticalInstitute.

Engineer Surveyors

Historically, marine engineer surveyors have tended to come from the marine engineering departments ofeither the naval armed forces or merchant navies. Such individuals will have received significant academictraining in engineering as well as extensive practical experience. Other possible backgrounds could includeworking in engine or mechanical repair and maintenance, particularly with marine engines or systems.

A marine engineer surveyor’s expertise will lie predominantly with the engines and/or mechanical andelectrical systems involved with the carriage and transportation of cargo.

In the United Kingdom the main representative organisation for marine engineers is The Institute of MarineEngineering, Science and Technology. (IMarEST)

It is not uncommon to find engineering surveyors carrying out cargo surveys, particularly where thedamaged cargo consists of machinery or the damage has been caused by machinery.

Naval Architect Surveyors

Naval architect surveyors will almost invariably hold a degree in navel architecture. In the UK the standard fornaval architects is controlled by the Royal Institution of Naval Architects through the Engineering Council.


A naval architect’s expertise will lie mainly in the structure, stability and hydrodynamics of ocean-goingcraft. Most will have some knowledge of and experience of marine engineering. Generally, naval architectsurveyors do not become involved with cargo surveying.

Other specialist surveyors

Other specialist surveyors include (a) forensic fire investigators, who specialise in fire investigation ratherthan cargoes, but whose skill is required when investigating a cargo fire, (b) Materials engineers ormetallurgists who specialise in materials and their failures, and whose expertise may be required when thecause of the loss or damage to cargo is unknown, and (c) biologists and chemists. Often damage to cargooccurs as a result of either biological or chemical attack. In order to stop and possibly reverse some of theeffects, biologists and chemists are required.

Government surveyors

In the UK, government surveyors work either for the Maritime and Coastguard Agency or the MarineAccident Investigation branch of the Department of Transport (DOT). Other countries have similarorganisations and arrangements. Government surveyors normally have a nautical, engineering or navalarchitecture background, although they may also be specialist fishing craft surveyors.

These surveyors tend to focus on the application of relevant laws, regulations and mandatory standardsimposed on larger commercial craft and they will not normally become involved with cargo surveys unlessthere is loss of life.

Classification Surveyors

Some classification societies do undertake cargo survey work although not as part of their ‘classification’function. Classification surveyors will tend to be either marine engineers or naval architects.

Types of Surveys

This section will consider different types of survey. It is important to recognise though that a particular type ofsurvey may be called something else in another country. It is incumbent on the surveyor to ensure that he fullyunderstands the client’s requirements i.e. the type of survey required and what is wanted from the survey.

Insurance Loss/Damage Surveys

Loss or damage surveys are normally commissioned by insurers or their representatives, brokers, orassureds. The objective is to determine the cause, nature and extent of the loss. This is the most commontype of survey.

Provided that the cause of the loss is an insured peril under the insurance policy, the insurer will normallypay for the loss and make good or replace the damaged item. Therefore, it is the surveyor’s role to identifythe cause and nature of the loss so that the underwriter is able to determine if it is insured. It is veryimportant to stress here that it is the insurer’s job to determine whether or not the policy covers the itembeing claimed for, and not the surveyor’s. The surveyor needs to report sufficient facts to enable theinsurer to decide whether or not the claim is valid.

Assuming that the claim is valid, the insurer will also need to know how much it will cost to repair, ifpossible. Insurers require accurate loss estimates also known as claims reserves as soon as possible toenable them to underwrite successfully and meet their own regulatory requirements.

To deny a claim an insurer will need to be certain of the facts upon which he relies. This is why surveyorsmust provide factually accurate reports rather than expressions of opinion which may subsequently proveto be unfounded.

Pre-Shipment Condition Surveys

As the name implies, these types of survey aim to report on the condition or particular aspects of thecondition of a particular cargo or the condition of the ship or both, prior to the cargo being loaded.Accuracy and attention to detail is vital for this type of work. The objective of this type of survey is toprovide an independent record of the condition of the cargo at the time of shipping so that in the event ofa claim the liability for the damage can be accurately apportioned.


With pre-shipment inspections of cargoes all observable defects need to be recorded and, if appropriate,samples taken.

For ship inspections, the suitability or otherwise of the ship for the intended cargo and voyage needs to bedetermined. This not only involves hold cleanliness but may include considering the method of lifting thecargo from the shore into the ship, how it will be supported and secured during transport and holdventilation (if appropriate). Such surveys carry additional risks for surveyors should they get it wrong, andgreat care is required to make certain that all aspects of the ship that are relevant to the particular cargohave been evaluated.

This type of survey should not be confused with ship condition surveys commonly conducted for P & IClubs which focuses exclusively on the condition of the ship, its personnel and management.

Supervision/Overseeing Surveys

As the title suggests these surveys are, in essence, supervisory. A typical example would involve a cargoowner enlisting the help of a surveyor to supervise and manage the transportation of a particular cargo.The surveyor may become involved in the planning process to ensure that all the precautions that need tobe taken have been. He may then supervise the actual cargo loading and/or unloading process to makecertain that everything goes according to plan. These types of survey are particularly common with highvalue and project cargoes.

Quality and Quantity Surveys

Quality surveys are normally very specific in nature. They determine whether or not a specific cargo meetsa specific requirement and should only be conducted by suitably qualified personnel. This will normallyinvolve the collection and documenting of samples for laboratory analysis.

Quantity surveys may involve tallying or draft surveys.

Often sample-taking for quality purposes and tallying to determine quantities are considered the role of atally clerk or inspection company and may be referred to as ‘an inspection’ rather than a survey. Theperson doing the work may also be referred to as ‘an inspector’ rather than a surveyor.

Warranty Surveys

Warranty surveys are surveys undertaken on behalf of underwriters for specific reasons. The underwriterwill have placed a ‘warranty’ on the insurance policy requiring the survey because in the absence of thesurvey the underwriter would not be willing to cover the risk for the quoted premium. The importance ofthe warranty survey is that the insurance cover may be null and void if the specific warranty is not strictlycomplied with, irrespective of the reasons for the failure to comply. Frequently the warranty will name theindividual or company required to undertake the warranty survey as the particular company or individual is

Cargoes being discharged


trusted by the underwriter concerned. A cargo warranty survey may for example, require the surveyorconcerned to verify and report on the manner or method by which a specific high value ‘project’ cargo islifted and/or transported.

Accident Investigation Surveys

Accident investigation is a specialised field. An accident investigation survey may form part of a cargosurvey where the loss or damage has arisen because of a particular incident which is not immediatelyapparent, or it may be an entirely separate survey particularly after an incident involving injury or death topersonnel. The role of the survey is to document properly all of the factors and influences that led to theincident. Generally such a survey will be considerably wider in scope than a damage survey and willinclude the various human factors involved. Once again it is the surveyor’s role to establish the facts andthis may include taking witness statements. In such a case it is not uncommon to find that witnessstatements differ greatly, often giving contradictory accounts of the same incident. It is not the surveyor’srole to decide who is right or wrong, but he should try to obtain as much corroborating evidence aspossible.

Risk Assessment Surveys

Risk assessment surveys identify the level of risk associated with a particular cargo which may be eitherhigh value or high risk. They may range from a request for a simple opinion (which should be expressed assuch) to an advanced analytical evaluation.

In order to carry out a risk assessment it is important to understand what is meant by a risk. To manypeople a risk is the danger of something happening and to some extent this is correct. However, for riskassessment work, the term risk has a very specific meaning and begins with the identification of a hazard.

A hazard is a situation and/or event that is a potential source of danger, damage, accident or harm. Once ahazard has been identified it can then be assessed in terms of risk. To do this one needs to consider theprobability and frequency of the occurrence and its potential consequences.

It is the combination of probability and frequency of occurrence combined with the seriousness of theoutcome, which together, determine the level of risk.

Various standard grading scales exist for probability of occurrence and outcome. Risk assessments arecommonplace in Health and Safety Regulations and in the oil and nuclear industries. However, the value ofrisk assessment to manage hazards, is now being recognised as a useful business tool in virtually allsectors of commerce and industry, and as a technique it is gradually becoming more accepted in thegeneral surveying world.

General Average Surveys

General average has its origins in ancient law of the sea and is founded on equity. A simple definition is‘that which is given or sacrificed in time of peril for the sake of all shall be replaced by a generalcontribution from all those whose property has been brought to safety’.

Usually, it is the shipowner who declares general average, as the result of an accident, wherein one ormore voluntary sacrifices and / or extra expenses were incurred for the safety of the ship and theprotection of its cargo.

To ascertain how much each party to the adventure must contribute, the shipowner employs an averageadjuster, who is an expert familiar with the law of general average, with the onus of proof on the partyclaiming in general average to show that the loss or expense is properly allowable as general average.

Either the shipowner or the average adjuster may appoint a surveyor to act in the ‘general averageinterests’ i.e. to ascertain the nature and extent of any general average losses. The appointed surveyormust have a basic knowledge of the concept of general average as well as the York-Antwerp rules, so thathe is capable of preparing a survey report which the average adjuster can rely upon to prepare anaccurate general average adjustment.

When general average is declared on a container vessel or on a general cargo vessel, the surveyorappointed is confronted with what amounts to, in many instances, several hundred surveys. This activity


involves segregating the general average loss from particular average loss (if any), and advising on howbest to protect the cargo until released to the cargo owner. The surveyor may also be asked to arrange thesale of cargo to minimize loss.

The surveyor should, if at all possible, carry out surveys jointly with any surveyor(s) appointed on behalf ofcargo owners and / or underwriters and if possible they should try to agree whether or not damage shouldbe classified as either particular or general average. However, the general average surveyor should notexpress an opinion on whether or not a loss is allowable or to be made good in general average as suchdecisions are the prerogative of the average adjuster.

HEALTH AND SAFETY FOR THE CARGO SURVEYOR Health and safety is everybody’s concern. Individuals should not deliberately put themselvesor others in danger. This applies particularly to the cargo surveyor who may often find himself workingin an environment that presents particular hazards. It is therefore important that appropriate considerationis given to personal protection and safety, to the protection of others and to preservation of theenvironment. Much of what may follow involves common sense and situations will of course differ, but onevery occasion before setting off to conduct a survey, the surveyor should consider the following:

Survey preparation

Safety preparation is essential. The type of survey to be undertaken will to a large extent dictate whatneeds to be considered, but some factors are common.

The weather may not initially seem to be terribly relevant until the first time a surveyor carries out asurvey on a sunny day in summer without adequate skin protection or during a freezing day in winterwithout adequate clothing. Once absorbed in a survey, it is possible to lose track of time. Both sunburnand hypothermia are progressive and only become apparent once it is too late and the damage has beendone. Weather forecasts are easily available and will assist with proper preparation and planning. After all,is it really sensible to carry out a survey on the deck of a ship in an exposed berth when the wind isblowing gale force 8 across a bleak and open shoreline when it may be possible to do the survey thefollowing day by which time according to the weather forecast, the storm will have blown over? Plus justhow much value will the surveyor gain from trying to carry out a survey on a deck cargo during a rain orsnow storm?

The location of the survey is crucial to safety. A surveyor may be asked to carry out a survey in a moderndockside facility with ventilation control and good lighting or alternatively he could be asked to carry outthe survey in a semi-derelict building with no light or power and miles from the nearest town. The surveyorshould therefore always check the location of the cargo to be surveyed and ensure that the environmentis safe for him to work in.

Not only is adequate lighting important to be able to see the subject matter but it is also essential forpersonal safety. This may involve the need for more than one torch or the rigging of temporary site lightsrun from a portable generator.

All tools and equipment to be used should be in good condition and properly maintained. All electricalequipment should be properly tested and if wandering leads are to be used these should have proper in-line connectors and be fitted with residual current circuit breakers.

Ventilation is vitally important, especially if the surveyor intends to enter any type of enclosed space. Lackof oxygen kills several people every year on ships, sometimes from the cargo having used up all of theoxygen in the hold or tank concerned. The surveyor should always ensure that any cargo to be surveyed isproperly and fully ventilated before proceeding.


Safety equipment and safety awareness

Surveying can be a dirty job and, therefore, the correct type of protective clothing is important. Relativelyclean close fitting overalls in good condition together with appropriate footwear are essential. In coldweather appropriate cold weather clothing, preferably with high visibility, and in summer appropriate sunprotection, are vital. If working on some docksides there may be particular safety requirements such ashard hats. The surveyor should check on this before starting work. Other protective equipment includessome form of ear-plugs and eye protection e.g. if working on a cargo that is close to other working areas.

At all times the surveyor should be aware of his surroundings and what is happening in the local area.Before boarding any vehicle, ship or craft he should make certain that it is safe to do so and be familiarwith any specific regulations on safe access.

Some means of portable access will normally be required to gain access to all parts of a cargo except forsmall items. Normally such access is by means of a ladder, which should be fit for use, properly positionedand secured at the top. The surveyor should avoid clambering on adjacent structures or up the ship’s orbuilding’s structure if at all possible, to minimise potential safety risks.

If using temporary staging, this must be properly rigged and secured. There are specific safety guidelineson the use of staging with which the surveyor must be familiar before use.

Location and communications

If working in remote and lonely locations the surveyor should make certain that someone is aware ofexactly where he is and have a positive reporting system for his safe return, in case of accident or injury.The more remote the location, the less likelihood of help, and hence the greater the risk to the surveyor.

A surveyor should always be aware that he is working on someone else’s property. On arrival at the dockor warehouse he should report to the yard office so they know that he is there. If on board a ship thesurveyor should make his presence known to either the ship’s captain or the chief officer.

Once on board or in the warehouse, if anything is moved in order to gain access, it should subsequentlybe returned to its former location. If, during the course of the survey something is damaged, the surveyorshould let somebody know before he leaves and if necessary notify his client. Finally, the surveyor shouldmake certain that the cargo is left as he found it and he should note any particular problem that maypotentially damage the cargo.

Summary

You should now have an understanding of what is required to become a competent cargo surveyor and befamiliar with the role of different types of surveyor and surveys.

The range and variety of work of a cargo surveyor is immense. As you learn more and become increasinglyinvolved with the cargo surveying industry, the scope for increasing your knowledge will only be limited byyour level of curiosity.


DRAFT Standard Marine Survey Trading Terms

AN AGREEMENT BETWEEN

[ ] ("we, us, our"):

and

[ ] ("the Client")

collectively, "the Parties"

Scope of Work: [ ]

Date: [ ]

Definitions

Agreed Indemnity Limit: £……….. This is the maximum limit of our liability to the Client, under any circumstances.

"Survey" and "Survey Report": the survey and the survey report that form the subject-matter of this Agreement.

Survey Fee: £[ ] ([ ] pounds) not including thecosts of travel, subsistence and accommodation which will be charged in addition in accordance with clause 4 of the terms below.

This Agreement is made subject to the following terms:

1. Limitations of liability

1.1 All services and reports are provided for the named Client's use only. No liability ofwhatever nature is assumed towards any other party and nothing in these terms, or the relationship between us and the Client, shall confer or purport to confer on anythird party a benefit or the right to enforce any provision of these terms. The provisions of the Contracts (Rights of Third Parties) Act 1999 shall not apply to the


Agreement and any person who is not a party to the Agreement shall have no rightunder that Act to enforce any term(s) of the Agreement.

1.2 We shall undertake the services to which these terms relate with reasonable care, skilland diligence. Notwithstanding any other provision of these terms or any otheragreement reached between the Parties we shall not be liable under the Agreement forany loss or damage caused in circumstances (i) where there is no breach of a legal dutyof care owed to the Client by us or those for whom we are responsible or (ii) where,notwithstanding any breach as aforesaid, any loss or damage is not a reasonablyforeseeable result of any such breach.

1.3 We shall not be responsible for loss or damage or any increase in loss or damage resulting from any material breach by the Client of any term of the Agreement.

1.4 Any claim by the Client in respect of any breach of our obligations hereunder must be notified to us as soon as is reasonably practicable after the Client becomes aware ofthe breach. Where any breach is capable of remedy, we must be afforded a reasonable opportunity to put matters right at our expense.

1.5 The Client covenants with us and our servants and agents that no such servant or agentshall in any circumstances whatsoever be under any liability for any loss arisingor resultingdirectly or indirectly from any act, neglect or default on his part while acting in the course ofor in connection with his employment and, without prejudice to the generality of the foregoing, every exemption, limitation and condition herein contained and every right,exemption and limitation of liability applicable to us or to which we are entitled hereunder shall also be available to protect every such servant or agent acting as aforesaid and for the purpose of the foregoing provisions we are or shall be deemed to be acting as agentsor trustees on behalf of and for the benefit of all persons who are or might be our servantsor agents from time to time and all such persons shall to this extent be or be deemed to beparties to these terms.

1.6 The Client acknowledges and agrees that, for reasons of commercial practicality, it isnecessary for us to limit our potential liability in respect of loss or damage suffered bythe Client as a result of any breach by us of any of our obligations under the Agreement., As such, the Client acknowledges and agrees that no liability howsoever arising whether under the Agreement or otherwise shall attach to us except insofar as such liability iscovered by the professional indemnity insurance referred to at paragraph 1.6 and the aggregate amount of such liability shall in any event be limited to the Agreed IndemnityLimit.

1.7 We shall maintain professional indemnity insurance in the amount of the Agreed IndemnityLimit throughout the period of the performance of our duties hereunder provided that suchinsurance shall remain available at reasonable market rates.

1.8 Our liability shall not extend to particulars, data and other information given to us by othersor obtained from outside sources, publications and the like reasonably relied upon by us,including Class records, registry details or other such information and no assurances can be given regarding the accuracy of the same.

1.9 Unless otherwise stated in writing, all services and reports are provided on the basis thatthey carry no guarantee regarding ownership or title, freedom from mortgages or, charges,debts, liens or other encumbrances, or vessel stability, performance or design.


1.10 The Client shall be responsible for any losses, expenses or other costs reasonably incurredby us that are caused by a breach of the Client's obligations to us hereunder.

1.11 We shall not be liable in respect of any breach of our obligations hereunder resulting fromunforeseeable causes beyond our reasonable control.

1.12 Notwithstanding any other provision of the Agreement, where the Client is acting inthe course of a business or commercial operation:

1.12.1 our liability shall expire three months after the Survey Report is delivered to theClient and we shall thereafter have no further liability whether in contract, tortor otherwise;

1.12.2 we shall have no liability whether in contract, tort or otherwise:

1.12.2.1 in respect of any consequential or economic loss or for loss of profit orturnover or loss of use suffered by the Client howsoever arising, whether under the Agreement or otherwise, and without prejudice to the generality ofthe foregoing we shall not be liable for any consequences of late performance of the Survey and/or late delivery of the Survey Report;

1.12.2.2 in respect of any breach of our obligations hereunder of which writtennotification shall not have been given within 14 days of the date on whichthe Client ought reasonably to have become aware of the existence of suchbreach;

1.12.2.3 in respect of any loss, injury or damage sustained as a result of (i) any defectin any material or workmanship, or (ii) the act, omission or insolvency of anyperson other than ourselves, and we shall have no liability to indemnify the Client in respect of any claim made against the Client for any such loss, injuryor damage;

1.12.2.4 our liability shall be limited to the amount for which we would have beenliable but for the application of this paragraph less such sum(s) as wouldhave been recovered by us (ignoring the operation of this paragraph) fromany other adviser or contractor pursuant to the Civil Liability (Contribution)Act 1978 had we brought proceedings thereunder against such parties (theybeing deemed to have undertaken liability in no less onerous terms in favourof the Client than those contained herein) for a contribution or indemnityawarded in those proceedings.

1.13 Notwithstanding any other provision of the Agreement:

1.13.1 all survey work undertaken hereunder shall be on terms that, unlessotherwise stated in writing, no guarantee is given against faulty design,latent defects or of suitability of the vessel or other item for any particularpurpose or of compliance with any particular local, national or internationalrequirement or code, and opinions are given without the benefit of runningof machinery or opening up or other dismantling whether of interior linings,machinery or other items or systems. [Surveyors should nonetheless bereminded of the need to state specifically in their reports whichareas/items were not opened up and what reservations shouldtherefore reasonably be made.]


1.13.2 we shall have no liability whether in contract, tort or otherwise in respectof the consequences of late, incomplete, inadequate, inaccurate orambiguous instructions, or the non-disclosure by the Client of relevantinformation;

2. Surveys

2.1 The Client's instructions, and the scope of our services hereunder, are as defined in the Scope of Work. Any subsequent changes or additions to the Scope of Workmust be agreed in writing by the Parties.

2.2 The Client undertakes to:

2.2.1 ensure that full instructions are given to us and are provided in sufficient timeto enable the required services to be performed effectively and efficiently.The Client agrees to disclose to us all relevant information of which they haveknowledge, or to which they have access, in relation to the vessel to besurveyed; and

2.2.2 procure all necessary access to premises and vessels (including lift-out, trialsand facility for inspection ashore and afloat as appropriate) for no less thansuch a time as shall in each particular circumstance be reasonable, to enable all appropriate inspections and tests to be undertaken or performed, and toensure that all appropriate safety measures are taken to provide safe and secure working conditions, provided always that in the event of any breach ofthese requirements causing any failure on our part to undertake the Scope ofWork the Client shall be responsible for all consequential costs incurred by usand in respect of any element of the Scope of Work undertaken.

2.3 To the extent that we are so instructed, we will inspect the vessel as thoroughly as ispracticable and will endeavour to comment on the more important items where, in our reasonable opinion, major costs consequences are considered likely to arise. Itfollows that we cannot comment on every minor matter but we will try to point outwhere small factors may become more serious. Our intention is to report on the integrity of the main structural or physical elements of the vessel so far as can reasonably be ascertained from a visual inspection of the vessel at its location at the time of survey. The Client accepts that our survey report(s) cannot cover hidden,unexposed or inaccessible areas of the vessel, neither can we undertake toinvestigate areas that we believe to be inaccessible at the time of inspection. Where we are unable to gain access to areas commonly accessible, we will endeavour topoint this out.

2.6 In every case, we recommend a full survey of a vessel, to include inspection of the vessel while lifted and while in the water. Where we accept instructions to survey a vessel solely on the basis of an inspection of the vessel while located out of the water, we make no representation and give no warranty as to the watertight integrityof the vessel.


3. Valuations

3.1 All valuation work undertaken shall be in accordance with the Scope of Work and shallbe on terms that, unless otherwise stated in writing, such work relates solely to the dateand place referred to. Valuations are based on opinions only and are notrepresentations of fact, nor do they carry with them any guarantee of the particulars orinformation on which opinions are based. Valuations assume a willing buyer and willingseller and market conditions applicable at the time of valuation or such other date as isexpressly referred to. [Unless the opposite is true, surveyors should make it clearthat the valuation is not part of a full condition survey, hence no warranty ofcondition or fitness for purpose is given.]

4. Fees

4.1 The Survey Fee and all expenses shall become due and payable on such terms and insuch amounts as shall be agreed from time to time. VAT or other EU equivalent shallbe payable, if applicable, in addition to all fees and expenses. Invoices will besubmitted in respect of all fees and expenses when due and the amount of eachinvoice shall be settled within 21 days of the date of the invoice. Thereafter, interestshall be payable on all sums owing and unpaid at a rate of "3% over Barclays Bankplc (London) base rate."

5. Default

5.1 Client default: we may terminate the appointment forthwith if the Client fails for more than21 days to pay any sum due when demanded, or if the Client fails to respond promptly torequests for information and/or instructions and fails adequately to respond to 21 days'formal notice of such failure, without prejudice to our accrued rights.

5.2 Other defaults: either party may terminate the appointment forthwith by notice if the other party shall: have a petition presented for its winding up or administration which is notdischarged within 14 days of presentation or any other action is taken with a view to itswinding up (otherwise than for the purpose of reorganisation or amalgamation withoutinsolvency), or become bankrupt or commit an act of bankruptcy, or make any arrangementor composition for the benefit of creditors, or have a receiver or manager or administrativereceiver or administrator or liquidator appointed in respect of any of its assets, or haveanything analogous to any of the foregoing under the laws of any jurisdiction occur to it, or cease or threaten to cease to carry on business; without prejudice to the accrued rights ofthe other party.

6. Law and disputes

6.1 These terms shall be governed by and construed in accordance with English law and any dispute or difference arising, or claim made, between or by the Parties out of or inrelation to or in connection with the provision of services to which these terms relate andwhich cannot be resolved by the Parties shall be submitted to the non-exclusivejurisdiction of the Courts of England and Wales.

7. Miscellaneous

7.1 No exercise or failure to exercise or delay in exercising any right, power or remedy vested in either party shall be deemed to be a waiver by that party of that or any other right, power or remedy.


7.2 Neither party shall transfer or assign its rights or obligations under these terms withoutthe prior written consent of the other.

7.3 In the event that any provision of these terms is held to be a violation of any applicable law,statute or regulation the same shall be deemed to be deleted from these terms andshall beof no force or effect and these terms shall remain in full force and effect as if such provisionhad not been contained therein. Notwithstanding the foregoing in the event of any suchdeletion the Parties shall negotiate in good faith in order to agree the terms of anacceptable alternative provision.

7.4 Except where expressly stated to the contrary, in a written document signed by the Partieson or after the date hereof, these terms form the entire agreement between the Parties andsupersede all previous agreements and understandings between the Parties, and no warranty, condition, description, term or representation is given or to be impliedby anythingsaid or written in negotiations between the Parties or their representatives prior to the communication of these terms.

7.5 References to "we", "us" and "our" include our employees and persons, firms and companies appointed or engaged by us as our agents for carrying out any work or servicesunder these terms, all persons, firms and companies to whom performance of any work orservices under these terms is sub-contracted or delegated by us, and all agents and employees of persons, firms and companies referred to in this clause.

7.6 Any communication required to be given under these terms by either party shall be in writing and shall be sufficiently given either by letter, fax or electronic mail (provided the same is capable of being recorded by the recipient in durable form) sent to the other at the contact details previously notified and any such notice shall be deemed to have been givenat the time at which it would in the ordinary course of transmission have been received.

7.7 Each party undertakes to maintain the confidentiality of all information supplied by the otherand not to divulge such information to third parties without the prior written authority of the other.


file checklistFILE NO: DATE

APPLICANT SURVEYOR

CONSIGNEE ESTIMATE OF CLAIMDAMAGE

COMMODITY SCHEDULE JPRELIMINARYREPORT

UNDERWRITER/ SCHEDULE/CCBROKER FINAL REPORT

COMPLETED

CLEARING/ SETTLEMENTFORWARDING AGENT COMPLETE

VESSEL P&I/OTHER SURVEYORS

SURVEY TYPE DATE INVOICED

DOCUMENTATION DATE FUNDSMates Receipt RECIEVEDTallyPolice report etc.

CERIFICATE OF FILE COMPLETEDINSURANCE NO/B/L

DATE ACTION/COMMENTS COST

SURVEY FEE

TRAVEL

HOTEL

AIRFARE

PHOTOGRAPHS

PHONE

FAX

PHOTOCOPY

COURIER

POSTAGE

CONSULTANTS

CHEMIST

LAWYER

OTHER

TOTAL


STAGE 2 CHAPTER 1: MARINE SURVEYING PRACTICE

Examples

1. When receiving new instructions by telephone should you:

a) Ask for confirmation in writing �b) Insist on payment in advance �c) Agree to attend and send them your terms and conditions later �d) All of the above �2. Whose responsibility is it to minimise “the loss”?

a) The surveyor �b) The underwriter �c) The assured �d) Whoever caused the damage in the first place �3. There are three essential qualities of a cargo surveyor. Which one of

the following is the odd one out?

a) Good communication skills �b) Good observation skills �c) A desire to discover the truth �d) Being physically fit �4. When using a torch in a tank it must:

a) Have a strong beam �b) Be spark proof �c) Be attached by a safety line �d) Have a long-life battery �5. Qualifications require:

a) Several years of training �b) At least 2 years of practical experience �c) Extensive theoretical knowledge �d) Independent verification of an individual’s knowledge measured

against a defined standard �

Answers:1a,2c,3d,4b,5d.


2EFFECTIVE

REPORTWRITING


Effective report writing is essential to a successful career in marine surveying as the surveyor’swork and professionalism will be judged by the standard and quality of his/her report.

Recording InformationEffective report writing requires effective information gathering. Surveyors should not rely on memoryalone when gathering information during a survey as this can be forgetful, inaccurate and selective.

The following are useful ways of recording information:

On paper: A well written notebook is not only a useful method to record information but can also be keptas an archive document in case it is needed at a later date to support a statement or report. It is goodpractice to adopt a standard basic format for information gathered.

On tape: Dictaphones are good evidence of who said what and when. For a busy surveyor it is aninvaluable tool, particularly if it can be passed to a secretary for typing.

On film: Any report will be enhanced by photographs. A photograph can save unnecessary descriptionand is helpful evidence. Even if the photos are not actually used in the final report they serve as a usefulreference source. They are easy to store and contain a wealth of information which may not even havebeen initially apparent.

Research and PreparationThe more background research undertaken, the better prepared the surveyor will be when writing thereport, but care should be taken to only include information relevant to the survey.

All evidence, be it photographs, videos, documents or other materials should be clearly labelled and filedor stored so as to be easily retrievable. All material, including field notes, documents and photographsshould ideally be stored together and separately from any items relating to any other matter.

Before carrying out site research the surveyor should consider whether time and money could be savedby conducting interviews over the telephone or via e-mail.

If face to face interviews are required questions should be well prepared and the background thoroughlyresearched prior to the meeting.

Information may be found in photographs, books, photocopies, letters, discs, tapes, notebooks, faxes, e-mails and supporting papers and documents. Research information can be obtained from the internet,published reference materials, libraries and fellow surveyors.

Organising notes and materials is essential particularly if the surveyor is not able to return directly to theoffice and special care should be taken to separate the documents and materials relating to one survey,from another.

When compiling the report he should consider whether the data should be embodied in the body of thereport or whether it should be included as an appendix as background reference material or omittedentirely.

When reporting on an incident, it is useful to draw up a chronology of events. This helps identify any gapsin the information or conflicting or contradictory information.


Types of ReportsThere are numerous and varied types of survey reports ranging from a simple checklist to acomprehensive document containing background information and research, methodology, facts, findings,recommendations and suggestions, expert and/or specialist analysis and conclusions.

Some of the more common marine survey reports are:

• Pre loading quantity and/or quality/condition reports

• Cargo loss and/or damage reports

• Accident reports

• Personal injury reports

• Container Surveys

• Draft Surveys

• Car Surveys

• Hull and Machinery Surveys

• Ship condition surveys

• On and Off-Hire Surveys

PreparationPrior to drafting his report, the surveyor should consider the overall purpose of the report and its specificobjectives bearing in mind who might read the document and the consequences. It is essential that thereader understands what has been written and why it has been written and that the style andpresentation of the report makes a good impression.

Although the marine transportation industry uses English as the standard language of communication, italso has its own vocabulary which can be confusing to the reader especially to someone inexperienced inshipping jargon. Technical language, expressions and jargon should therefore be clearly explained. Otherfactors to consider include:

• Has the surveyor received clear and concise instructions from the client?

• Who is the target audience including their cultural background? (What do they know and what do theywant to know?)

• Precisely what does the surveyor want them to know?

• What style of document is required e.g. is there a standard form?

• Which materials/supporting documentation should be included?

• What research is required?

• How much time does he have?

• Who can help with the report?

• Will the report include graphics and photographs and if so in what format and colour?

• Is the report intended merely to convey facts or will it contain expressions of opinion or informationgleaned elsewhere?

• Is the report intended to persuade someone of something?

• Is the reader meant to act on what is written?

• Are there legal implications to what has been written?

An outline plan and timetable should then be prepared bearing in mind the report’s aims and objectives.


Report Writing The contents of the report must be relevant to the client’s instructions. The report should stick to the pointand not contain unnecessary information or attachments to ‘pad out’ the report.

The report should be completed within a set time frame in accordance with the client’s instructions orservice level requirements. Failure to do so is unprofessional and will damage the surveyor’s reputation.Lloyd’s Agents are required to submit their final reports within 30 days of completing the survey in theabsence of express agreement from the client to delay the publication of the report in circumstanceswhere e.g. the client may prefer to wait for additional documentation to become available.

When writing a report the following should be considered:

Content: Ensure you know exactly what you want to write about and that it meets the client’s criteria.

Clarity: The main issues should be clear and not buried in a sea of unnecessary text.

Style: Be concise, use the correct vocabulary and level of formality so as to make it easy to read.

Presentation: Ensure the report is clearly laid out and smartly bound. If it looks good, people are morelikely to want to read it. Use strong binding so that it doesn’t fall apart.

Language: Use simple English and avoid if possible, complex technical words or expressions. If English isnot your first language ensure that nothing has been ‘lost in translation’ and remember that English maynot be the reader’s first language either.

Vocabulary: Be precise about the meaning of words when describing technical terms. Use the same wordfor the same meaning throughout the report.

Grammar: Ensure your report is grammatically correct. Incorrect grammar will not only alter the meaningof language and confuse understanding, but will also undermine the surveyor’s credibility.

Information: Ensure the document contains the correct information and is clearly presented.

Tone: Establish a tone appropriate for the nature of the subject matter and reader audience. If the tone ofthe report is wrong the reader may be unwilling to consider it.

Persuasion: In order to persuade, reports have to have the right content, be unambiguous and in the rightstyle. The power of persuasion begins with the writer’s clarity of purpose. Ideally ask a colleague or trustedfriend to review the draft report. Is anything unclear or confusing or are there any omissions and/orgrammatical or typing errors?

And finally always ensure that you allow enough time for report writing by calculating backwards from thedate when the document must be delivered. Allow time for editing, proof reading and printing as well as ofcourse planning and writing the report.

The Survey ReportA survey report is a record of what a surveyor saw or measured. Occasionally, for a damage or conditionsurvey, the surveyor’s opinion or assessment will be required. However, the first rule of survey work is toreport the bare facts.

To be effective the report should:

• Be clearly laid out on a standard paper size and be well spaced.

• The text should be divided into relevant sections and then further sub-divided into paragraphs for eachpoint.

• The whole document should be clearly numbered and there should be a clear contents page.

• Always be consistent.


• Always be concise. There are no rules about paragraph length but shorter paragraphs will always be moreeffective than long ones.

• Remember to use accurate and simple vocabulary, as it is easier to understand.

• Ensure that all information is accurate and don’t make any mistakes.

• Be aware of difference in national practices. Always ensure people’s correct titles are used wherenecessary, and

• Don’t be gender specific. Women also work in the marine industry.

It is important to lay out the report in a logical and reader friendly way. One method of doing so in adamage report is shown below:

1. Title Page – This should state the name of the report identifying what it is about, who wrote it, when andwhere? Include details of the writer such as his name, address, telephone and contact details and ifnecessary or desirable his qualifications and experience.

2. Distribution – Who will receive the report? This list can be placed at the beginning or end of the report.Also include the number of originals and copies issued.

3. Contents (or Index) Page – This should be concise and in the form of a list.

4. Introduction – This is a brief summary of what the report is about. Be careful not to include any findingsor conclusions. The introduction only sets the scene.

5. Summary – This may form part of the introduction and should not contain any conclusions. Theconclusions come at the end of the report.

6. Background – Known facts and/or events leading up to the surveyor’s appointment are included in thissection. For example when reporting on a cargo damage survey involving the carriage of goods by sea, thefollowing background information would be relevant:

a) The ship’s details including her:

• Name

• IMO Number

• Call Sign

• Port of registry

• Flag

• Owner

• Type of vessel

• When and where built

• Dimensions and tonnages

• Class

• Number and type of holds, hatch covers, derricks and cranes

• Ballast and fuel tanks

• Engine details

• Navigational equipment

• Number and nationality of the crew

• Draft on voyage in question including trim and stability calculations and any other details which may berelevant e.g. deck and tank top stresses.

b) Details on the voyage to the load port including the:

• dates of voyage

• the last cargo carried

• the weather en route


• the ballast condition

• whether the tanks were pressed up or not

• whether the water integrity of the hatch covers were tested

• whether bilges tested

• any problems with the cargo on out-turn

• any action by the crew such as hold cleaning

c) Loading information, including:

• The name of the load port

• The date and time of loading

• The name of the berth and any relevant details (whether the cargo was covered and how it was conveyedto the load port, e.g. in rail wagons).

• The name of any owners, charterers or insurance surveyors or representatives and the times they were inattendance.

• The type and quantity of the cargo loaded should be described, along with the nature of the packaging,and

• Outline any specific instructions given about loading, including who they were given by, to whom and how,and if they were followed or not. Include an account of the dates and times worked, the quantities loaded,the cargo plan, any stoppages and any problems encountered during loading.

d) Stowage, segregation and securing details.

Photos of the stow either at the load or discharge port may be very useful. Make sure they are clearlyidentified and labelled. If the photos were taken by the surveyor compiling the report then it should beincluded under the heading: ‘Findings’ – item 8 below.

When taking the photograph, identify the hold by chalking the hold number on a convenient surface andplace something obvious in the shot to clarify the dimensions of the subject matter (this is good advice fortaking any photographs, not just on board ship.) Apart from the photos, state who gave the stowage andsecuring instructions, who did the work and who inspected it. Describe the materials used and where andhow they were deployed. Back this up with any remarks made on the mate’s receipts or bill of lading, orany protest noted. Describe the sealing of the hatch covers and any testing done on them.

It may not be possible to obtain any or all of this information but every effort should be made to obtain asmuch as possible. Remember that Lloyd’s Agents constitute a worldwide network and that Agents in otherports may be willing and able to assist with information.

7. Procedure – A detailed description of what the surveyor did on receipt of the instructions.

8. Findings – These may be broken down into a number of sub headings. When reporting on cargo damage,this section should include an accurate description of the cargo and any damage found. Only state thefacts and be precise about the amount of cargo affected.

• State who noticed the damage

• Who it was reported to

• Who surveyed it and on behalf of whom

• Where the damaged cargo was taken to

• Whether any action was taken to contain the damage or segregate the damaged cargo

• Whether there was any protest

• Whether any delay was caused to the ship by the damaged cargo and any action taken because of it.

Do not jump to conclusions or apportion blame. Stick to personal observations. If the packaging has failed,say how and why. If the damage was caused by stevedoring methods or equipment and you saw ithappening then say so, and explain how and why but do not apportion blame.


9. Joint Survey – If a joint survey was held with one or more ‘other’ parties full details should be providedincluding when and where the survey was held, who attended and who was represented.

10. Cost of Damage or Quantum – State the value of the cargo and provide a breakdown of all costsrelating to the damage and final estimates usually ‘without prejudice to underwriter’s liability’.

11. Cause – This may form the main body of the report, giving full details of the events leading up to thedamage and how the actual damage occurred. Stick to the facts. Opinions can be provided if requested bythe client.

12. Conclusion – This should consist of a brief summary of events and any conclusion drawn from the facts,which if a matter of opinion should be clearly stated as such. Do not introduce new facts in this section ofthe report.

13. Recommendations – State whether the damaged goods have any residual salvage value and whetherthere are any salvage prospects as well as whether or not there is any possible recourse/recovery actionagainst a third party. Include any other information that may help the assured in reducing the loss.

14. Appendices – These should whenever possible, include all relevant supporting documentation such as forexample:

• Certificates of Insurance

• Bills of lading

• Mates receipt

• Tally reports

• Packing lists

• Cargo and/or ship’s manifest

• Road or rail transit papers

• Cargo plans

• Police reports

• Commercial Invoices

• Weather reports

• Log Books

• Charts

• Standing Instructions

• Experts’ reports

• Other surveyors’ reports

• Witness statements

• Other local documents

• Technical reports

• Master’s Note of Protest

Of course many of these documents will be available only as copies. However ensure that only relevantinformation is attached. Some reports will require a reference list or bibliography which should be includedin the appendix.

15. Photographs – Photographs can be included throughout the report to highlight specific points undervarious headings or at the end, so long as they are relevant, in focus and properly labelled.

Not all reports will require the same amount of information nor will they necessarily require all theheadings listed above. Furthermore some types of survey report may require additional headings specificto the particular type of survey involved.


In general, try to avoid too much referencing as it makes text difficult to read. References should benumbered sequentially throughout the document and refer to a reference list at the end. Try to avoid usingfootnotes as they can be distracting.

Once the report is completed you should consider the following:

• Have you checked for factual mistakes?

• Have you contradicted yourself?

• Is the summary really a summary, or does it introduce new material?

• Can clients find what they want quickly?

• What does it look like? Can you improve the presentation of the document?

• How would you feel if someone sent you a document like this? What would you do as a result?

• Has someone else proof-read the report?

Some organisations such as Lloyd’s, the Salvage Association, various Classification Societies & P&I Clubshave their own standard formats on which information should be presented.

Lloyd’s Documentation SetThe Lloyd’s Agency department has developed a number of standard survey forms and schedules. Havingstandard forms creates consistency and assists clients who know where to look for specific informationwithin the report. Most importantly it enables the Lloyd’s Agent to submit his report including allsupporting documentation, securely by email to his clients and/or brokers and underwriters involved.

The Lloyd’s Documentation set contains 29 Schedules and Forms in both A4 and US letter format. Theyare:

A Continuation Sheet

General average Deposit Receipt

Form H – Property Risk Assessment Report

Form P (SCA) – Settlement of Claims Abroad

Form P – Partial Settlement

Form R(SCA) – Settlement of Claims Abroad

Form R – Final Settlement

Form S – Indemnity for Missing Documents

Form V – Subrogation Form

Form W (Multi Currency) – Settlement of Claims Abroad

Form W (Single Currency) – Settlement of Claims Abroad

Form X (Multi Currency) – Adjustment

Form X (Single Currency) – Adjustment

Form Y – Lloyd’s General Average Bond and Guarantee

Lloyd’s Agency Survey Report – without the Lloyd’s Agent brand

Lloyd’s Agency Survey Report – with the Lloyd’s Agency brand

Lab 77 – Lloyd’s Average Bond

LOF 2000 – Lloyd’s Standard Form of Salvage Agreement

Schedule B – Certificate of Appointment of Surveyor by Lloyd’s Agent(s), which is also provided in Frenchand Spanish


Schedule BQ – Certificate of Appointment of Surveyor(s) by Lloyd’s Agent(s)

Schedule C – Standard Survey Report (Goods), which is also provided in French, Portuguese and Spanish

Schedule CC – Survey Report (Goods), which is also provided in French, Portuguese and Spanish

Schedule CP- Pre-Shipment Survey Report (Goods)

Schedule FS – Frozen Produce Pre-Shipment Information Report

Schedule I – Invoice

Schedule J – Provisional Advice of Claim

Schedule K – Small Claims Information, which is also provided in French and Spanish

Schedule L – Application for Survey (Goods), which is also provided in Spanish, and

Schedule N – Non Delivery Information

Completed samples of:

• Schedule CP Pre-Shipment Survey Report (Goods)

• Schedule J Provisional Advice of Claim

• Schedule CC Survey Report (Goods), and

• Schedule C Standard Survey Report (Goods),

can be found at the end of this chapter.

Expert Testimony/Witnesses In both civil and criminal cases, the opinions of witnesses are not, in general, admissible. They are normallyconfined to stating the facts. It is the view of most courts that they (that is the judge or judge and jury), areas well equipped as the witness to draw inferences from the facts to which the witness testifies.

But there are many issues that a court is required to determine which are so far removed from the court’sexperience that it needs to obtain the opinion of experts to help it determine the issue in question. Anexpert witness may therefore be appointed by the court or by one or other of the parties to the dispute.

The expert witness is, thus, an exception to the exclusionary rule and is permitted to give opinionevidence. In English civil litigation this has statutory authority.

What follows is based on the requirements under English law and is therefore only applicable to expertwitness reports submitted in evidence in England and Wales. However the basic requirements of anexpert’s written report as applicable in England and Wales should serve as a useful guide to all surveyorswho consider themselves expert in a particular field or commodity and who are deemed to be so, by thecourt concerned, through qualification and/or experience.

The Report

An expert witness report fulfils several functions in the legal process. First and foremost it represents theopinion of the expert on the issues in the given case. In addition, it may be the basis on which claims andstatements of case are drafted and may be used by counsel whilst in court, both to assist during cross-examination and also as a general aide memoir.

It should also not be forgotten that both of the parties i.e. the claimants and the defendants are entitled tosee the report. The suitability of a report for these various purposes, in terms of clarity and convenience,depends greatly on the manner in which it is drafted. As expert witness reports will be read by lawyersclarity is essential.

Irrespective of who has appointed the expert witness, the expert witness has a duty to the court to beindependent and impartial.


Following changes to the English judicial system under the Wolfe reforms introduced in April 1999, the roleof the expert witness and assessors under the Civil Procedure Rules Part 35 has been more clearlydefined.

The Wolfe Reforms, created by Lord Wolfe and introduced in April 1999, were considered by the Englishlegal profession to be nothing less than a ‘revolution’ in the way cases were handled. The main aims ofLord Wolfe’s reforms are to reduce cost, delay and complexity in the way claims are handled and preventlitigation where possible. The underlying objective is to encourage all sides to isolate the areas in disputeat the earliest possible opportunity.

The Civil Procedure Rules (CPR) and their Practice Directions (CPRPD), particularly CPR Part 35 and itsPractice Direction (PD 35), impose certain requirements which if not observed may mean the report willnot be acceptable to the Court. The Code of Practice for Experts and Experts Protocol (COP) approved bythe Head of Civil Justice provides helpful background and advice.

Expert witnesses must be conversant with the latest versions of CPR, CPRPD and COP as the informationbelow only refers to the most important and directly relevant paragraphs of the Rules and PracticeDirections.

The form in which a report is prepared depends on the nature of the issue in dispute and the practice ofthe individual expert witness. Nevertheless, it is possible to define certain minimum requirements for anacceptable report. What follows, including the model report (which is included at the end of this section)emphasise these minimum requirements. Beyond these, though, the expert may wish to develop his ownforms and style.

The order in which the various parts of the report are placed is suggested as being most logical andhelpful to the court, but expert witnesses are free to adapt this to their own practice, e.g. the summarymight appear at the end of the document rather than at the beginning.

Types of Report

In the initial stages of a case, all that may be required is consideration of the evidence and an indication asto whether a case or a defence can be made out. If it is not clear when first approached, the expert shouldenquire whether the solicitor requires advice or the preparation of a report for the court. This is importantbecause advice is privileged from disclosure. Nevertheless the expert witness may not be immune from aclaim for damages if he can be shown to have been negligent in the preparation of his opinion. There are nospecific requirements for the manner in which advice is drafted. However, since most documents arenowadays prepared by word processor it may be expedient and save expense if advice is laid out andstored electronically in such a way that at a later stage it can easily be converted into a formal report.

Where an expert has provided advice to a party and subsequently prepares a report under the terms ofCPR, he should consider whether it may be advisable to declare that he has previously provided advice, inorder to deal with any question of his independence. The privilege under which advice is given will not beaffected by such a declaration.

Reports for the Court

The length of report may vary, depending on the circumstances, such as the nature or the extent of theevidence and the opinion based on it, but the report must conform with the basic requirements of CPR,CPRPD and COP. The report must be addressed to the court and not to the party from whom the experthas received his instructions and in drafting a report the expert’s first duty is to the court. The fact that thepreparation of a report has been initiated by the claimant or the defendant in a given case is therefore ofno consequence except that the expert must strictly consider the evidence in the light of the instructionsreceived. If the expert finds that the evidence brings to light issues not covered by his instructions, heshould inform his instructing solicitor who may then wish to issue modified instructions.

Reports have on occasion been criticised by judges for their excessive length and a tendency to confusematters of fact and opinion. This may be avoided by placing matters of fact and opinion under separateheadings, and laying out the report in a suitable sequence in short, suitably headed, sub-headed and


numbered sections. Extensive numerical and/or factual detail that would otherwise obstruct thepresentation or be confusing in the development of an opinion, can be tabulated in appendices to thereport. The pages of reports should be paginated for convenience of use and have ample margins at thetop, bottom and on both sides. A suitable header should be provided to identify the expert, the name ofthe party and whether the report is in draft or final form, the date of the report and the page number.

Each opinion expressed in the report must be the opinion of the writer whether it is formed by the writeror formed by others and adopted by the writer as his own.

The following must be identified separately:

• Facts which the writer is asked to assume

• Facts which the writer observed for himself

• Facts which others, acting on behalf of the writer, observed, identifying the person concerned

• Opinions of others upon which the writer is forming his own opinion.

At the end of the report there must be a statement that the expert understands his duty to the court andthat he has complied with that duty.

The model form of experts’ report as drafted by The Expert Witness Institute (‘EWI’) has been reproducedas follows with their kind permission.

For more information about the role of expert witnesses consult their guidelines on www.ewi.org.uk.

The Model Report The Model Form of Experts Report as defined by The Expert Witness Institute (‘EWI’).

The details below should be read in conjunction with the Model Report attached hereto.

a) Cover sheet

This is for identification purposes and must include at the top, if available, the name of the court and thecase number. Centred below this should be the names of the parties to the case, whether the report is adraft or a final version, the identity of the author and his area of expertise and on whose behalf the reporthas been prepared and the name of the instructing solicitors. Various other details (including the expert’scontact details) can be included on the cover page at the discretion of the expert.

b) Table of Contents

This may not be necessary for short reports of less than, say, seven to ten pages.

c) Summary of conclusions

The summary should consist of the factual conclusions and the opinions of the expert. They mayconveniently be based on the sequence adopted in the Opinion section of the report (see below under [i])

d) Instructions

The report must state the substance of all material oral and/or written instructions on the basis of whichthe report is written and the questions the expert is instructed to answer. In some cases it may benecessary or convenient to reproduce the relevant paragraphs of the solicitor’s letter of instruction.

e) Expert’s qualifications

This should, in effect, be a brief curriculum vitae. If it is thought necessary a fuller curriculum vitae can beadded as an appendix.


f) Documentation and other sources of evidence

This must list the documents examined and detail any other sources of evidence, such as anyexaminations and tests carried out and referred to later in the report.

g) Chronology

For certain issues it will be important to set out the chronology, details and circumstances of the eventsunder consideration. It is in this section of reports that they may most markedly differ depending on theexpert’s specialism. Thus, for example, in medical cases the chronology may be a case summary underdate headings. If the documentation has been paginated, it may at a later stage of the litigation becomeconvenient for the page of the documentation to be identified against each dated item.

h) Technical Background

Where the issues under consideration are complex and not likely to be within the experience of those whomust consider the expert’s report, it can be helpful to summarise the scientific or technical background ofthe case. This may be the stage of the report at which reference is made to any literature or other matter,other than the documentation, on which the expert has relied when preparing his report

i) Opinion

This should be a closely and carefully reasoned analysis of the evidence and the opinion of the expertderived from that evidence. Where a chronology of the evidence has been presented (see [g] above), it ishelpful to present the opinion in the sequence or along the lines of that chronology. The conclusions of theopinion should be clear, reasoned and unambiguous with reference to any literature or other matter onwhich the expert has relied. It is important that the expert does not stray outside the scope of his ownexperience. If a question or issue falls outside his / her expertise, or he / she is unable to reach aconclusion because of insufficient information this must be stated. Similarly when a range of opinions ispossible the expert must indicate what that range is and give reasons for his own opinion. It is importantto bear in mind:

1. That the expert is required to consider all material facts including those which might detract from hisopinion, and

2. It is his duty to assist the court and in carrying out that duty, care must be exercised to ensure that therole of the judge is not usurped.

j) Literature citations

This should consist of full citations for any literature, work of reference or other information on whichreliance has been placed. The citations should be listed in a numerical or other convenient way to alloweasy reference by the reader. Ideally, unless too extensive, copies of any literature or other matter relied onmay be attached to the report as an appendix labelled in the manner in which reference to them is madein the report.

k) Experts’ Declaration

This consists of a series of statements that show that the expert is aware of his various obligations whenpreparing his report. The Expert Witness Institute has published a model Experts’ Declaration for use by itsmembers [which has been included in the model report]. It should be noted that the EWI model Experts’Declaration may, as necessary, require modification by the expert should special circumstances arise, e.g.where incomplete instructions are received from instructing solicitors.

l) Statement of Truth

This is an essential part of all expert’s reports addressed to the court and it must be given precisely asprescribed in PD 35 2.4. It should be noted that the terms of the Statement were modified in January 2002;the older form of the Statement of Truth is no longer acceptable.

m) Signature

Final reports must be dated and signed by the author.


n) Appendices

Where the report covers extensive and detailed facts, chronology, medical and other records it ispreferable to include this information in appendices to the main report.

o) Presentation

Where practical the report should be typed in double spacing, presented on A4 / Letter paper, already holepunched for use in a standard arch binder and in a format that can be easily photocopied.

The judge or referee may prefer copies to be made available on disc.


No. –

IN THE [title of court] COURT

BETWEEN

CLAIMANT

Claimant

and

DEFENDANT

Defendant

______________________

[DRAFT] REPORT

regarding

XYZ

______________________

——————————————————————————————

Various discretionary information can be added to the title page, such as the specialism of the expert, the subject matter of the report and the dates of the enquiry, etc.

——————————————————————————————

PREPARED AT THE REQUEST OF: Name of instructing solicitor


CONTENTS

1. SUMMARY OF CONCLUSIONS

2. INSTRUCTIONS

3. ISSUES

4. BRIEF CURRICULUM VITAE

5. DOCUMENTATION

6. CHRONOLOGY/CASE ABSTRACT

7. TECHNICAL BACKGROUND / EXAMINATION OF THE FACTS IN ISSUE

8. OPINION

9. LITERATURE/REFERENCES

10. EXPERTS’ DECLARATION

11. STATEMENT OF TRUTH

APPENDICES

A

B etc.


1. SUMMARY OF CONCLUSIONS

This should list the main facts derived from the evidence dealt with in the report and theconclusions/opinions arrived at, and the answers to questions posed by instructing solicitors.

2. INSTRUCTIONS

This section must give the substance of all instructions received by the expert, whether written or oral.

3. ISSUES

The issues to be addressed and the questions to be answered must be clearly set out. These might havebeen defined by the instructing party or identified by the expert in his preliminary investigations. If in theopinion of the expert there is an issue or issues not addressed by the solicitors’ instruction, the exclusionof which from the report could be misleading to the court, such matters should not be included withoutconfirming with instructing solicitors that such issues should be addressed.

4. [BRIEF] CURRICULUM VITAE

Giving name of expert and affiliation, qualifications, relevant experience which will indicate to the courtyour competence to act as an expert witness in relation to the specific issues to be addressed in the case.Identity of any other person who has assisted with the preparation of the report and whether the expertaccepts responsibility. If considered necessary, a more detailed curriculum vitae can be attached as anappendix.

5. DOCUMENTATION

A full list must be provided of all documents and other submitted material on which the report is based.

6. CHRONOLOGY

The chronology must deal only with factual items of the evidence. It must not contain any matter ofopinion, whether of the expert or anyone else. To do otherwise is to reduce the value of the report and itmay attract criticism by the court.

It may be appropriate to include a very brief outline of details of the antecedent history of the case thatcould bear on the matter under consideration. Fuller details should be included as appendices.

The way in which the chronology is drafted will vary with the type of case under consideration. The entriesin the chronology should be laid out in short paragraphs with a line or two between paragraphs. Eachparagraph should refer to a discrete event or topic in the chronology.

7. TECHNICAL BACKGROUND

In cases where technical aspects of the issues are outside the general knowledge or experience of thosewho will have to deal with the report an explanation of the technical issues in this section may benecessary. The details should be clearly presented in paragraphs of reasonable length. All technical termsand jargon should be clearly defined or explained, either within this section or by cross-reference to anappendix. The details of any tests or experiments conducted should be set out, with relevant details of anyperson who conducted the test or experiment on behalf of the expert.

Regardless of whether a technical explanation is required, the expert should set out in this section thefacts he has established in his enquiries, taking care to separate fact from opinion.

It is well for experts to remind themselves, particularly when reporting on behalf of Claimants who seemto the expert to be unlikely to be successful, that the expert’s report may be the only independentexplanation they will receive.


8. OPINION

In this section the expert should present his opinion clearly and unambiguously. The manner in which thisis done will vary from specialism to specialism and from case to case. If appropriate the sequence ofevents in the chronological evidence can usefully be adopted. Suitable reference should be made to anyappendices attached to the report.

The expert’s opinion on the facts relied on in the evidence should be stated, cross-referenced to thosefacts as set out in the previous section.

The reasons given for opinions expressed by the expert should be explicit. If another or a range ofopinions can be held, based on the same evidence, this should be stated and reasons given for theexpert’s own opinion. Suitable reference should be made to any literature or other matter on which theexpert has relied.

9. REFERENCES

This should consist of a numbered list of all items of technical literature relied on and of any other materialto which reference is made. If the references are extensive they may be listed as a separate appendix.


EXPERT’S DECLARATION

Individual items of the Experts’ Declaration may have to be varied or omitted, depending on thecircumstances of the particular report. Although not required by the Practice Direction it could also beuseful to confirm that the report has been prepared in accordance with the Code of Practice for Expertsand Experts Protocol.

1. I understand that my overriding duty is to the court, both in preparing reports and in giving oral evidence. Ihave complied and will continue to comply with that duty.

2. I have set out in my report what I understand from those instructing me to be the questions in respect ofwhich my opinion as an expert are required.

3. I have done my best, in preparing this report, to be accurate and complete. I have mentioned all matterswhich I regard as relevant to the opinions I have expressed. All of the matters on which I have expressedan opinion lie within my field of expertise.

4. I have drawn to the attention of the court all matters, of which I am aware, which might adversely affectmy opinion.

5. Wherever I have no personal knowledge, I have indicated the source of factual information.

6. I have not included anything in this report which has been suggested to me by anyone, including thelawyers instructing me, without forming my own independent view of the matter.

7. Where, in my view, there is a range of reasonable opinion, I have indicated the extent of that range in thereport.

8. At the time of signing the report I consider it to be complete and accurate. I will notify those instructing meif, for any reason, I subsequently consider that the report requires any correction or qualification.

9. I understand that this report will be the evidence that I will give under oath, subject to any correction orqualification I may make before swearing to its veracity.

10. I have attached to this report a statement setting out the substance of all facts and instructions given tome which are material to the opinions expressed in this report or upon which those opinions are based.

STATEMENT OF TRUTH

I confirm that insofar as the facts stated in my report are within my own knowledge I have made clearwhich they are and I believe them to be true, and the opinions I have expressed represent my true andcomplete professional opinion.

Signature: _______________________________________________________ Date: ________________________

Schedule CPOur Reference

Your Reference

*060606BJMLPNKO*

M033/09

SP

PRE-SHIPMENT SURVEY REPORT (GOODS)

(If you produce a hardcopy version please sign and stamp with Agency stamp)

Page 1

1. (a) Date of application for survey.(b) Time, date and place of survey.(c) Date and place of loading

(if different from above).

2. (a) Applicant for survey.(b) Shipper (if not applicant for survey).(c) Consignee.

3. (a) Survey instructions.

(b) Description and quantity of goods to besurveyed.

(c) Marks and numbers.

4. (a) Vessel/aircraft/other conveyance.(b) Final destination.

5. (a) Condition of goods and packing.

6. Containers (if applicable).(a) Type.(b) Condition.(c) Container number.

7. (a) Other parties present at survey.

a) 3rd August 2005b) 9th July 2005 at the premises of Sole Pump Co, Osakac) 14th July 2005 Kobe

a) Sole Pump Cob) Sole Pump Coc) Fort Magnus WaterWorks, New Delhi, India

a,b) Supervise the loading and lashing of 35 water pumps into 4 open top containers. 9 pumps each in three containers and 8 pumps in one.

c) Sole waste water pumps numbers 1 to 35.

a) M.V. "Lucky Three"b) New Delhi via Kolkata, India

See narrative

a) 40ft open top

b) Good

c&d) Container and seal numbers can be found in the narrative.

Just Sole Pump Co's management and staff

(d) Seal number.

Schedule CPOur Reference

*060606BJMLPNKO*

M033/09

Conditions of goods and packing

The pumps were all new of the same specifications, size and capacity.Each pump was identically packed with the base bolted to a wooden frame work and entire unit shrink wrapped with heavy duty plastic. Spare part box were also bolted to each unit.

Pipe ends covered with plastic caps secured with tape.

Each pump weighed 2200kg and measured.Length 2.4m x Breadth 1.2m x Height 1.8m

Pump Nos 1 to 9 were placed in open top 40ft container number UCLU 085390-0 Seal No B36789Pump Nos 10 to 18 were placed in open top 40ft container No XPUL 0114531-1 Seal No B36790Pump Nos 19 to 27 were placed in open top 40ft container No XPUL 0993217-7 Seal no B36791Pump Nos 28 to 35 were placed in open top 40ft container No CUSS 079884-3 Seal no B36792

The pumps were loaded by the manufacturers own crane and staff through the top of the open top containers.Each pump was secured in the containers by means of timber braces nailed to the container floor and wooden base frames of the pumps. New wire lashing was used between the pumps securing ring bolts and container internal lashing points.

On completion of loading and securing the pumps in the containers covers were placed over the open top containers and the doors were closed, locked and sealed.

All pumps were loaded in apparent good condition.

A number of photographs are attached to this report depicting the condition of the pumps, stowage and lashing arrangements.

Distribution

Original and one copy to Sole Pump Co.


Issued without prejudice to the rights and obligations of whomsoever concerned. This report contains findings atthe time, date and place of survey only.

Signature of surveyor

Signature of Lloyd's Agent

Place

Print name

Name of Agency

Date

Page 2

Within your narrative report below please provide any additional remarks and attach relevantdocumentation and a selection of appropriate photographs.

Paul Yo

14th July 2005(If submitting electronically type name here)

Eastern Survey Ltd Osaka

*060606BJMLPNKO*

Your Reference

Our Reference

Schedule J

PROVISIONAL ADVICE OF CLAIM

Policy / Certificate number:(A copy of the Certificate of Insurance (both sides) should be attached, if available.)

Certificate Date: Insured Value:

Insurance Brokers:

Shippers:

Claimant:

Interest:

Voyage:

Bill of Lading (or Air Waybill) number & date:

Vessel/Aircraft/Conveyance:

P & I Club:

Date of Arrival:

Estimated Claim:

Nature of Loss/Damage:

Agent's Comments:


Name of Agency

Date

HS/09/235/05

FMW

Lloyd's Cert. No. 1221/373296

1st July 2005 USD 350,000.00

Unknown

Sole Pump Co

Fort Magnus WaterWorks

35 New class A water pumps

No Voy Number

Not available

M.V. Lucky Three

Unknown

Mid August 2005

USD 80,000.00

*8 pumps, out of 35 shipped, extensively damaged.All pumps were shipped on the MV Lucky Three from Kobe Japan and discharged in Kolkata +/- 12th August 2005 and subsequently transported by road to New Delhi.Survey expected to take place on 19th September 2005.

Initial survey of the pumps has been carried out and investigations are underway to determine where and how the damages took place. The claims estimate has been based on the assumption that the 8 damaged pumps are unrepairable.Full details will be included in our final report and if there are any major changes to the above we will immediately advise you.

18th Sept. 2005


PlaceExample Co Ltd

(If submitting electronically type name here)

New Delhi

Schedule CC

SURVEY REPORT (GOODS)

*060606BJMLPNKO*

Dated:

Your Reference

Our Reference


Name of Agency: Place:(If you produce a hardcopy version please sign and stamp with Agency stamp)


for use by LLOYD'S AGENTS and SUB-AGENTS only1. Goods declared for survey

(specify if new or used):

2. Name of consignee of goods:

3. Name of applicant for survey:

4. Date of application for survey:

5. Place of survey:

6. State Bill of Lading/CMR/Air Way Billnumber:

7.

Name of vessel/aircraft/railway/haulier/other conveyance:

8.

Port/airport/place of discharge:

9.

Date goods landed at (10) above:

10.

Invoice value of goods:

11.

Value of loss/damage estimated:

12.

Value of loss/damage actual:

13.

If a joint survey was held state whatdate:

14.

Name of other surveyor(s):

15.

Issue date of Bill of Lading/CMR/AirWay Bill:

Voy/reg. no of 8 above:

Arrival date at port/airport/place ofdischarge:

If a joint survey was held state whereheld:

Who appointed surveyors:

16.

17.

18.

19.

Signature of Surveyor Dated:

FMW

35 New Class A water pumps

Fort Magnus WaterWorks Inc

Fort Magnus WaterWorks Inc

17th September 2005

Fort Magnus WaterWorks, New Delhi

B/L WA/173879/4

11th July 2005

M. V. Lucky Three

No Voy Number

Kolkata

12th August 2005

13th August 2005

US$350,000

US$80,000

See narrative, page 5

19th September 2005

Fort Magnus WaterWorks

Mr P. Naidoo

P&I Club

Example Co Ltd New Delhi

HS/09/235/05

Appointment

This is to certify that Engineer Harry Singh, in-house surveyorwith Example Co Ltd did, at the request of Fort MagnusWaterW orks, conduct a survey at their premises 14a,Section 237, Industrial Road East, New Delhi, between the19 th and 29 th Sept 2005.

The purpose of the survey was to determine the cause and extent of damage to a consignment of industrial water pumps shipped from Japan between July and September 2005, discharged in Kolkata and transported by road to New Delhi.

Index

1. Background

2. Procedure

3. Findings

3.1 Description and value of Goods3.2 Condition of Pumps

4. Joint Survey

5. Cost of Damage

6. Cause

7. Conclusion

8. Recommendations

9. Appendices

PhotographsShipping and transport documentsManufacturers invoicePump experts report

HS/09/235/05Our Reference

Schedule CC


Continued on Page 3Page 2

*060606BJMLPNKO*


Page 3

Schedule CCOur Reference HS/09/235/05

*060606BJMLPNKO*1: Background

Fort Magnus WaterWorks contracted with Sole Pump Co, Japan, for 35 Class A water pumps for delivery in September 2005. Each pump was secured to wooden bearers and place in four open top 40ft containers, 9 in three containers and 8 in one to make up the 35 pumps.

The pumps were loaded into the 4 containers at the manufacturers’ premises in Osaka and transported by road to Kobe then loaded on the MV “Lucky Three” for the voyage to Kolkata. On arrival in Kolkata the containers were discharged onto road trailers and taken to a distribution yard in the port. Two weeks after discharge the pumps were removed from the open top containers and placed on 6 road trailers belonging to the Car Door Transport Co. and delivered to New Delhi between the 12th and 16th September 2005.

Of the 35 pumps delivered to Fort Magnus WaterWorks 8 were apparently damaged, at which time we were called to conduct a survey.

2: Procedure

On receiving instructions from Fort Magnus WaterWorks the undersigned proceeded to their premises and conducted an initial survey of the pumps, collected relevant documentation and carried out an investigation of the history and background on the consignment of pumps. The survey was carried out on the 19th September 2005 and subsequent dates up to 29th September 2005.

Photographic evidence was taken and expert opinion obtained as to the suitability and repair of the pumps for their intended purpose. The experts report is attached to this report.

The shipper, carrier and road transporters were all advised to attend a joint survey, but only the carrier responded and their P&I Club representative attended. A surveyor for the road transporters attended independently.

3: Findings

3.1 Description and value of goods

All 35 pumps were of the same manufacturer, size and capacity.Each pump was identically packedWeight, 2200 KGL. 2.4M x B. 1.2M x H. 1.8MBase bolted to wooden framework (4x4) and entire unit shrink wrapped with heavy duty plastic.Spare part box bolted to each unit.Pipe ends covered with plastic caps secured with tape.Each pump had a declared value of US$10,000


Page 4


*060606BJMLPNKO*3.1 Condition of pumps

On arrival at Fort Magnus WaterWorks on the 19th September 2005 all 35 pumps were laid out for inspection in their covered warehouse at their premises in Industrial Road East. All pumps had their shrink wrapping removed to allow for detailed survey.

Of the 35 pumps for survey, 27 were accepted without any significant damages (minor scratches) and are not reported upon in detail. The remaining 8 were damaged to varying degrees. Below is a description of each pump which have been numbered 1 to 8 for ease of reference. Photographs relating to the damage of each pump are included in this survey report.

Pump No 1 Mountings sheared from base, pump housing holed, pipe fittings sheared and drive shaft broken. Spares box missing.

Pump No 2 Mountings twisted, pump housing cracked and heavily scratched, pipe fittings and drive shaft missing. Spares box broken and contentsmissing.

Pump No 3 Wooden base framework cracked, splintered and broken, one base support sheared. Pump housing holed and pipe fittings bent and deformed. Spares box missing.

Pump No 4 Wooden base framework missing, pump housing and drive shaft housing cracked. Pipe work severely bent and dented. Spares box cracked but contents complete.

Pump No 5 Drive shaft separated from pump, heavy scratches on pump housing and pipe work broken off and missing. Spares box complete.

Pump No 6 Pipe fittings dented and bent with minor scratches down left-hand side of entire unit. Spares box missing.

Pump No 7 Wooden base framework cracked severe scratches on pipe work and driveshaft sheared. Spares box cracked but contents complete.

Pump No 8 Pump housing holed. Pipe work broken and missing. Spares box missing.

Of the 8 pumps referred to above, 6 were considered a total loss whilst the remaining 2 (numbers 6 and 7) could possibly by salvaged using sound parts from the damaged pumps.

Mr Roy Fit, an independent pump expert, was engaged and his detailed report on the condition of all the pumps and salvage prospects is attached.

4: Joint Survey

A joint survey was held with Mr P Naidoo representing the shipowner’s P&I Club on 19th and 24th September where the damages as listed above were agreed.A joint survey was also arranged with Car Door Transport Co but their representative, Mr T Raoe, did not arrive at the appointed time. Attempts were made to reschedule this survey but without success. It is understood that Mr Raoe attended at Fort Magnus WaterWorks independently on the 23rd September 2005.


Page 5


*060606BJMLPNKO*5: Cost of Damage

The initial estimate was for all 8 pumps which at a value of US$10,000 each is US$80,000 (as per manufacturer’s invoice, attached). However the final claim for damages is now expected to be as follows:

6 pumps at US$10,000 $60,000Repair of 2 pumps using Fort Magnus WaterWorksLabour and parts from the 6 damaged pumps $3,500Total US$63,500

6: Cause

Investigations revealed that the pumps had been secured in the containers by means of wooden braces and the wooden base frames of the pumps nailed to the container floor. Wire lashings had also been used between the pumps securing ring bolts and container internal lashing points. Unfortunately there are no records or photographs of the conditionof the containers or pumps nor of the securing arrangements.Documentation shows that the containers were loaded in Kobe without remarks and landed in Kolkata without remarks. See Appendix 2.

The four containers of pumps were landed onto road trailers belonging to Dockside Distribution & Co for transportation to the distribution yard within the port of Kolkata. It would appear that in transporting one of the containers (No CUSS 079884-3, which contained the 8 pumps) from the ship’s side to the container distribution yard, a distance of about 2 miles, the container and trailer overturned, spilling the contents and consequently causing the damage as witnessed at Fort Magnus WaterWorks.

We requested our office in Kolkata to follow up with the port authorities but they denied all knowledge of the incident. However further investigation is taking place with Dockside Distribution. Unconfirmed reports however have indicated that once the containerhad overturned, the damaged pumps were craned onto individual trucks and delivered in the damaged condition to the distribution yard to await onward transportation to New Delhi. The accident was alleged to have happened during the night of 13th August 2005.

Some 4 weeks later (unfortunately we have not been able to establish the cause of this delay in Kolkata, which may or may not be linked to the accident) the remaining 27 pumps were removed from the open top containers and together with the 8 damaged pumps placed on 6 open road trailers. The documentation just shows the transportation of 35 pumps without any remarks. The delivery by road from Kolkata to New Delhi went without incident or delay.

7: Conclusion

It is our considered opinion that the damage to the 8 pumps occurred in Kolkata on the night of 13th August 2005 during transportation from the ships side to the container distribution yard.

8: Recommendations

Recovery may be possible from the Dockside Distribution Co in Kolkata who areresponsible for the movement of containers within the port and further investigation requires to be carried out in this regard. The appointment of lawyers at this time maybe prudent to secure any potential recovery action. We can assist and recommend appropriate lawyers if required to do so.


Page 6


*060606BJMLPNKO*

STANDARD SURVEY REPORT (GOODS)for use by LLOYD'S AGENTS and SUB-AGENTS only

Schedule COur Reference

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This report is issued for use in connection with claims under insurance policies against the parties responsible. However this does not imply that the loss is recoverable from Underwriters. This must depend upon the terms ofthe Policy of Insurance. Should any of the information called for in this report not be available, the reason for theomission should be stated against the question concerned.

1.

(b)

(c)

(d)

(a) Date of application for survey.

Date and place of survey.

Was there any delay by the consignee inapplying for survey? If so, give both your andthe consignee's explanation

If there has been any delay by you in holdingthe survey then explain why.

2. (a) Goods declared for survey (specify if new orused).

FINAL

3. (a) State the Bill of Lading/CMR/Air Waybillnumber and/or specify other document ofcarriage and date of issue and confirmwhether original or copy.

(b) What is the reference (if any) to the conditionof the goods?

4. (a) Name of consignee of goods.

(b) Name of applicant for survey (if notconsignee please specify relationship).

(If you produce a hardcopy version please sign and stamp with Agency stamp)Page 1

Your Reference

Report number

HS/09/235/05

FMW

235

a) 17th September 2005

b) 19th September at the receiver's premises in New Delhi

c) No delay

d) No delay

35 New Class A Water Pumps

a) B/L WA 173879/4 dated 11th July 2005 Copy sighted.

b) No remarks on the B/L

a) Fort Magnus WaterWorks. Inc

b) Fort Magnus WaterWorks. Inc

Schedule COur Reference HS/09/235/05

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5. List the following in date order for each stageof transit (including transhipment).

(a) Name of vessel/aircraft/railway/haulier/otherconveyance and include voyage/registrationnumber.

(b) Port/airport/place of discharge and date ofarrival.

(c) Date goods landed at (b) above.

6. (a) Were goods transported by road/rail or othermeans from place of final discharge to placewhere survey held? If so, and if not alreadystated in 5 above, give name of carrier anddate of commencement of transit and date ofarrival at place of survey.

7. (a) In whose custody were the goods heldbetween time of discharge and delivery toplace where survey held?

(b) Was there any delay by the consignee in taking delivery of the goods? If so, giveconsignee's explanation.

(c) Where and what storage was afforded to thegoods during this period and was the place ofstorage safe and secure?

8. (a) Were goods noted to be in a sound ordamaged condition at time of discharge andon delivery to consignee?

(b) Was a shortage noted at time of discharge oron delivery to the consignee. Specify?

(c) What records/receipts/tallies were issued atthe various stages of transit and whatexceptions, if any, were noted at each stage?

(d) If no claused receipts were issued, enquireand if possible please explain why?


a) Loaded on the MV "Lucky Three" in Kobe 11th July 2005

b) MV "Lucky Three" arrived at Kolkata 12th August 2005

c) Discharged at Kolkata 13th August 2005

The pumps were transported by road on trailers belonging to the Car Door Transport Co between the 12th and 16th September 2005.All pumps were delivered to Fort Magnus WaterWorks Inc. premises in New Delhi.

a) Dockside Distribution Co in Kolkata and Car Door Transport Co between Kolkata and New Delhi

b) No

c) Dockside Distribution Co of Kolkata for one month from time of discharge to delivery. Security unknown.

a) No apparent damage at time of discharge

b) No shortages

c) No exceptions noted on any documentation issued from point of dispatch from manufacturer's loading and discharge receipts and tally

d) It would appear that damage took place after discharge in Kolkata and there has been no explanation why this has not been recorded on the road transport delivery receipts


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9. (a) Was a pre shipment survey carried out and ifso when, where and by whom?

(b) Were the Bills of Lading and/or the Matesreceipts claused?

(c) Was a letter of indemnity given to the carrierin exchange for a clean B/L?

10. (a) If goods were transported in a container,please state type, number and marks andspecify whether FCL or LCL.

(b) Where and by whom was the containerstuffed?

(c) Was the container seen by the surveyorbefore or after being de-stuffed?

(d) Was the seal inspected by the surveyor? (State number and condition)

(e) If the seal was not seen by the surveyor, stateby whom it was removed.

(f) Where and by whom was the containerde-stuffed?

(g) State condition of the container and cargo atthat time. If the container was not seen by thesurveyor state condition of the container asreported by any other party and identify theparty concerned.

(h) State the condition of any damaged goods.

(i) Were the goods within the containeradequately stowed and lashed to withstandthe intended mode of transport?

(j) If the container was carried by sea, statewhether the container was stowed on orbelow deck.

a) No known pre-shipment survey completed

b) No

c) No

a) The 35 pumps were carried in 4 x 40ft open top containersUCLU085390-0 contained 9 pumpsXPUL 099321-7 contained 9 pumpsXPUL 011453-1 contained 9 pumpsCUSS 079884-3 contained 8 pumps

b) At manufacturer's premises

c) No

d) No

e) Removed by staff of Dockside Distribution Co. Kolkata

f) At the premises of Dockside Distribution Co.Kolkata

g) None of the containers were sighted

h) 8 pumps have been extensively damaged (see narrative section for full details)

i) Apparently so, though not sighted by the undersigned (see narrative)

j) Below deck

Schedule CHS/09/235/05

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Our Reference

11. (a) Description and condition of packing.

(b) Was packing new or second-hand?

(c) Was packing customary? (Note - If in thesurveyor's opinion the packing was notadequate for any of the modes of transportthen give full explanation).

12. (a) Description of loss/damage.

(b) After examination, cause attributed bysurveyor to:

(c) In case of water damage, state whethersaltwater, freshwater, condensation or sweat,and whether saltwater contamination test wascarried out: If so specify.

(d) If water damage (fresh or salt) if possiblestate how caused.

13. (a) Is Lloyd's Agent aware of anycasualty/accident suffered by the carryingvessel, aircraft, conveyance to whichloss/damage might be attributable?

(b) If so give details.

(c) Was a Master's Protest lodged or any otherform of notification given to the appropriateauthorities? (If possible attach a copy).

(d) In the event of theft were the police advisedand if so advise police reference number andif possible attach copy of report.

a) Pumps were reportedly secured in the containers by means of timber braces nailed to the container floor and base frames of the pumps. Wire lashings had also been used between the pumps securing ring bolts and the container lashing points. The pumps themselves were shrink wrapped with heavy duty plastic.Note: the lashing of the pumps inside the containers was not seen by the undersigned.

b) Reported to be new

c) From information received considered adequate by the undersigned

a) Six pumps damaged beyond repair and a further two damaged but can be repaired. See narrative for full details of damage

b) See 13 (a) below

c) No water damage

d) No water damage

a) Trailer and container (CUSS 079884-3) allegedly overturned spilling the contents of 8 pumps after discharge in Kolkata whilst in the care of Dockside Distribution Co. Further investigations are continuing in Kolkata.b) Awaiting further details

c) No

d) No theft involved however attempts are being made to obtain police documents (if any) relating to the road accident in the docks (see 13a above)



HS/09/235/05

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14. (a) State the commercial invoice number dateand amount.

(b) Has the original invoice been sighted?

(c) Has the original Insurance Policy/Certificatebeen sighted? (state certificate number)

15.

(a) The arrived sound market value of the goods.(b) The percentage depreciation based on the

arrived sound market value.

On the date when compromise of damage wasagreed with consignee, please state:

16. If no compromise has yet been agreed please state:

(a) Whether goods sold by private tender orpublic auction.

(b) The amount of the sales proceeds.

(d) Attach all relevant supporting documents

17. (a) Duties payable on goods in a sound state are:

(b) In view of the loss/damage, has the consigneeapplied for a rebate of duty and with whatresult?

18. (a) Date on which consignee states goodsdelivered into his custody.

(b) Has consignee given notice of loss/damage toor made a claim against,vessel/airline/railway, other carriers orbailees? (if not, state consignee's reasons)

(c) Date on which consignee gave notice ofloss/damage or made a claim and to whoaddressed.

(d) Summary of reply if received.

(e) Was a court or other surveyor(s) appointedand if so give name(s) and state where andwhen survey held.

(f) Was a joint survey held? If so, on what dateand where?

(c) The date on which the compromise wasagreed.

(c) Date of sale.

a) Sole Pump Co. Invoice A/590/35 dated 1st August 2005 for $350,000 (35 pumps at $10,000 each)b) Copy onlyc) No

a) $350,000b) 6 pumps ($60,000) a total loss

2 pumps can be repaired for $3,500c) 29th September 2005

a) The damaged pumps have no residual value

No duty applicable, Government contract.

a) Between the 12th and 16th September 2005

b&c) All parties involved in the transportation of the pumps from Kobe to New Delhi were put on notice by the consignee immediately on receipt of the damaged pumps on the 16th September 2005

d) At the time of this report no formal response had been received

e&f) Joint survey held on the 19th September 2005 with representatives from the carrier's P&I Club. Both shippers and transport representatives advised of joint survey but failed to attend.



HS/09/235/05

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19. Rate of exchange on date on which compromisewas agreed was (local currency to currency ofcommercial invoice).

It is the responsibility of the applicant/consignee to separate the damaged portion from the sound. In case ofshortage, Lloyd's Agent should state if possible, in addition to the following details, the invoiced and landedweights of the goods, and weight at the time of survey.

Marks andNumbers

Quantity Description of Goods QuantitiesSound

QuantitiesMissing

or Damaged

Invoice was in US$

Sole pumpsNo 01 to 35

35 Electric waste water pumps.All pumps were of the same manufacture, size and capacity.Each pump was identically packedWeight 2200 KGL 2.4m x B 1.2m X H 1.8M

27 8



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The fee of

Including

Excluding

Has

Has Notbeen paid to us by the applicant for the survey.TAX

Certified correct and approved and issued without prejudice and subject to the terms, conditions and amount of thePolicy of Insurance.

Signature of surveyor Print name


Name of Agency Place

Date

If there has been any delay in issuing this report please give reasons

PolicyCertificateInvoiceBill of LadingAir WaybillMates Receipt

TallyMaster's Note of ProtestPolice ReportNotice of Loss

Lab Report

List all documents attached to this report

GBP

Any other documents.

Reply to Loss

Additional Comments


Pump expert's report

The report has not been delayed. However investigations are continuing in Kolkata to determine what took place after discharge and further reports will follow.

This is an interim fee as investigations continue

1,826.00

Mr Harry Singh

30th September 2005

Example Co Ltd New Delhi


Page 8(If you produce a hardcopy version please sign and stamp with Agency stamp)

HS/09/235/05

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Condition of Pumps

Of the 35 pumps for survey, 27 were accepted without any significant damages (minor scratches) and are not reported upon in detail. The remaining 8 were damaged to varying degrees. Below is a description of each pump which have been numbered 1 to 8 for ease of reference. Photographs of the damage to each pump are included in this survey report.

Pump No 1: Mountings sheared from base, pump housing holed, pipe fittings sheared and drive shaft broken. Spares box missing.

Pump No 2: Mountings twisted, pump housing cracked and heavily scratched, pipe fittings and drive shaft missing. Spares box broken and contents missing.

Pump No 3: W ooden base framework cracked, splintered and broken, one base support sheared. Pump housing holed and pipe fittings bent and deformed. Spares box missing.

Pump No 4: W ooden base framework missing, pump housing and drive shaft housing cracked. Pipe work severely bent and dented. Spares box cracked but contents complete.

Pump No 5: Drive shaft separated from pump, heavy scratches on pump housing and pipe work broken off and missing. Spares box complete.

Pump No 6: Pipe fittings dented and bent with minor scratches down left hand side of entire unit. Spares box missing.

Pump No 7: W ooden base framework cracked, severe scratches on pipe work and drive shaft sheared. Spares box cracked but contents complete.

Pump No 8: Pump housing holed. Pipe work broken and missing. Spares box missing.

Of the 8 pumps referred to above 6 were considered irreparable whilst the remaining 2 (nos 6 and 7) could possibly be salvaged using sound parts from the damaged pumps.

Cause of damage

The 4 containers of pumps were landed onto road trailers belonging to Dockside Distribution Co for transportation to the distribution yard within the Port of Kolkata.It would appear that in transporting one of the containers (No CUSS 079884-3, which contained the 8 pumps) from the ship’s side to the container distribution yard, a distance of about 2 miles, the container and trailer overturned, spilling the contents and consequently causing the damage as witnessed at Fort Magnus W aterW orks.W e requested our office in Kolkata to follow up with the port authorities but the authorities denied all knowledge. However further investigation is taking place with Dockside Distribution. Unconfirmed reports however have indicated that once the container had overturned, the damaged pumps were craned onto individual trucks and delivered in this damaged condition to the distribution yard to await onward transportation to New Delhi. The accident allegedly happened during the night of 13 th

August 2005.Some four weeks later (unfortunately we have not been able to establish the cause of this delay in Kolkata, which may or may not be linked to the accident) the remaining 27 pumps were removed from the open top containers and together with the 8 damaged pumps place on 6 open road trailers. Documentation just shows the transportation of 35 pumps without remarks.The delivery by road from Kolkata to New Delhi went without further delay.

State any additional remarks on the previous questions specifying the relevant question number. Alsoprovide a description of the circumstances surrounding the loss/damage and attach a selection of appropriatephotographs.

Continued on Page 9



HS/09/235/05

*060712BJMLPNKO*State any additional remarks on the previous questions specifying the relevant question number. Alsoprovide a description of the circumstances surrounding the loss/damage and attach a selection of appropriatephotographs.

Recommendations

Recovery may be possible from the Dockside Distribution, Kolkata, who are responsible for the movement of containers within the port and further investigation requires to be carried out in this regard. The appointment of lawyers at this time may be prudent to secure any potential recovery action. We can assist and recommend appropriate lawyers if requested to do so.

Distrubution

Original and two copies for Fort Magnus WaterWorks for the attention of Mr Ron Pathan.