1-378 This type of survey covers a number of investigations for the purpose of determining the condition of a vessel or equipment at the time of the survey.
While this is the requirement for all condition surveys they do not all share the same reason for the requirement. The reasons vary markedly and this is why the extent of the survey, or the emphasis of the survey, can vary considerably. This will become apparent as each survey is discussed below.
1-379 Condition surveys should be conducted in daylight and, where cargo spaces are concerned, with the holds empty. It can be difficult enough for a surveyor to cover all the requirements of the survey under favourable conditions without adding unnecessary hindrances such as lighting.
1-380 Condition surveys may be grouped into the following categories Sale and Purchase Surveys
On and Off-hire surveys
Structural and/or Damage Surveys Cargoworthiness surveys
P&I club entry surveys
11.4.1 Sale and Purchase Surveys
1-381 A prospective purchaser of a secondhand vessel will often not wish to rely upon the information obtained from a vessel’s classification society (which will only be given with the vendor’s permission) and, in the case of surveys by some societies, will almost certainly seek information upon which greater reliance can be placed. In any event class does not cover some of the information that may be required when considering a vessel’s overall condition and value.
1-382 Sale and purchase surveys require the surveyor to look for all defects in the hull, machinery and equipment. Surveyors should state whether these defects are due to wear and tear (“ordinary”, or exceptional due to some unsatisfactory working conditions), to a casualty, a fault in design, or defect in manufacture in the case of a component. Some purchasers may only require the surveyor to report the bare facts concerning present condition and leave them to consider
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the ramifications, but more often than not an expert opinion, giving a wider appraisal and providing the conclusions mentioned above, will greatly assist the purchaser to make appropriate decisions regarding the suitability of the vessel.
1-383 The extent to which surveyors will need in-depth inspections of various items will depend to some extent upon their initial findings, the evidence of a planned maintenance scheme in operation and the completeness of the maintenance records.
1-384 The following are the areas principally requiring the surveyor’s attention:
(a) Vessel’s description, history where possible, details of owners, master and chief engineer.
(b) Listing of all certificates including dates of issue and expiry.
(c) Hull
(i) Hull and decks including structural condition of all stiffeners (ultra-sonic testing of the plating to measure its thickness may be warranted).
(ii) Double bottom, deep and other tanks.
(iii) Hatch covers and all hold’s fixtures and fittings.
(iv) Cargo handling equipment.
(v) Fire and life saving equipment and life boats, liferafts and davits.
(vi) Deck houses, superstructure, galley, storerooms and accommodation.
(vii) Steering gear.
(d) Engine Room
(i) Main and auxiliary machinery, boilers.
(ii) All pumping arrangements and associated valves.
(iii) Fire and watertight integrity closing devices inside the hull and engine room.
(iv) Engine room fire-fighting appliances, storeroom and workshops.
(e) Bridge
(i) Navigation equipment (radar, echo sounders, GPS, chronometer, sextants etc).
(ii) Bridge instruments (rudder and engine revolution indicators, telegraphs, steering gear, compasses etc).
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(iii) Charts and publications (adequate and kept up to date).
(iv) Radio equipment (GMDSS) and signalling lights and equipment.
(f) Drydocking
To check the underwater condition of the hull, propeller, shaft and rudder.
(g) Records
No survey is complete without reference to the ship’s records which will include:
(i) Deck and engine room log books.
(ii) Ship manoeuvring diagrams and data.
(iii) Radar, gyro and other equipment operation and servicing records.
(iv) Ship’s register.
(v) Chain register and test certificates for lifting gear (cranes, derricks, shackles, wires.
(vi) Plans of the vessel and equipment etc.
(vii) Stability data book and other essential manuals.
1-385 A surveyor carrying out this type of survey needs to keep a sense of balance and proportion when reporting upon defects. All secondhand vessels will have defects. Some of them may be simply commensurate with the vessel’s age but others may be from other causes and the surveyor should seek out the reasons as they may influence the buyer in making his decision whether to purchase or not. Some classes of ships or machinery have recognised weaknesses and where a vessel or item of machinery in such a category is being considered by a prospective purchaser the surveyors should check for these likely weaknesses and report upon them.
1-386 Where defects are noted during the survey there should be suggestions in the report on how they can be rectified and perhaps also an indication of likely cost, although not all surveyors will be sufficiently conversant with costs to comment authoritatively. This especially applies where the surveyor is not on his own home ground and the survey is carried out in an unfamiliar port.
1-387 Try to present a fair and reasonable report on the condition of a vessel. Avoid the temptation to over emphasise the inevitable defects that every vessel has. Even if numerous, these defects may not be material for the kind of use to which the prospective owner may wish to put the vessel. Clearly a surveyor who fails to find the defects is failing to do his job but if he blows them up out of all proportion to their importance he is doing a great disservice to both vendor and purchaser.
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And no surveyor of integrity will allow his report, although perhaps factual, to be deliberately unbalanced so as to give a false overall impression simply for the purchaser’s benefit as an unfair negotiating tool.
1-388 On occasions a potential purchaser may ask the surveyor to express an opinion on more issues than simply that of condition, especially seeking advice on whether or not the vessel is suitable for a particular trade or purpose. If the surveyor is competent to do this then it is a reasonable request and the surveyor may respond following clear instructions to this effect. However, ship valuations are rarely within a surveyor’s area of expertise and are best left to a shipbroker.
11.4.2 Small Craft
1-389 Sale and purchase surveys are not restricted to major vessels and they commonly take place prior to yachts or other small craft changing hands. In these cases they are usually surveyed by those possessing very different qualifications and skills from those involved with ships. Such surveyors will frequently have a background as shipwrights and boat builders or designers who, in many cases, need to be versed in non-traditional materials such as GRP, aluminium and steel. Particularly when the subject of the survey is a sailing yacht the rigging forms an important part of the survey, and it is desirable that the surveyor should be a practising yachtsman.
Figure 7
The Pier Marketplace and Yacht Marina in Cairns, Australia Typifies the Small Craft Leisure Industry that has Sprung up Around the World in Recent Years
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1-390 While there are rules for pleasure craft published by most classification societies, comparatively few are classed. A growing number of large sailing and motor yachts are in class, having been built under survey and since maintained in class. There are provisions in some societies’ rules for GRP mass-produced yachts to have their hull and deck moulding processes approved and a type approval certificate issued.
1-391 Sometimes a difficulty with pleasure craft is in getting them properly prepared for survey. This requires opening up areas for close inspection, removal of ballast and gear and often the drawing of the odd keel bolt. Costs of this preparation, like those of the survey, are usually for the prospective purchaser’s account.
1-392 A limited condition survey will frequently be required by an insurance company when asked to insure small craft. In these cases safety features in the equipment will rate of major importance as many small craft become total losses from fire and explosion and so engine, fuel and gas installations require careful attention.
Thefts of equipment are common and a requirement of the surveyor is also likely to be to verify that equipment, often expensive items attractive to thieves, is present on board the craft at the inception of the insurance policy, and is of the type and quality stated.
1-393 The extent of small craft regulation and surveys varies considerably from country to country. Most international conventions do not become the subject of legislation for craft which only operate in local waters (the Collision Regulations would be an exception) and the extent of the regulations applying to small craft is then almost entirely dependent on a government’s own prescription.
1-394 Some countries have very few regulations affecting their pleasure craft whereas others have been obliged to address the subject very fully and provide well-documented procedures to enable their government surveyors to fulfill their survey role. New Zealand is an example of the former and the US, through its Coast Guard, of the latter. However where pleasure craft are involved and matters proceed less formally, with the owner usually understanding little about insurance or repairs, surveyors are generally expected to give more assistance to the claimant in determining the cause of loss and repair costs, reporting accordingly to underwriters.
1-395 Small commercial craft however fall into an entirely different category and statutory surveys are almost always a requirement. The extent of these surveys and the standard that is expected of charter yachts, small passenger carrying ferries, tugs and other work boats varies considerably between countries. Many of these surveys are carried out by government surveyors, but in some countries there has recently been a trend away from the use of government surveyors and many approved private surveyors carry out this work. Just as there is now a requirement for shipowners to be more directly involved with maintaining their vessels in seaworthy condition (International Safety Management Code) so too has there been a somewhat parallel movement to introduce a limited but similar arrangement with small commercial craft.
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11.4.3 On / Off-Hire Surveys
1-396 Where a charterer wishes to charter a ship and man and operate the ship for a specific period of time it is called a bare boat charter. In doing this the charterer becomes the owner by demise and carries all the responsibility of caring for and managing that vessel under the contract terms. The actual owner now has no control over the vessel, but does wish to have it returned in the same condition, wear and tear accepted. It is important therefore that a full on-hire survey is carried out so that at the completion of the charter there is a record of how the vessel was at the time the charterers took possession. Where the surveyor is carrying out an “off-hire” survey and can access the “on-hire” report it will greatly assist the comparison of past and present condition if the same order of reporting defects is followed.
1-397 On voyage and time charters, a similar type of on-hire survey is necessary under the terms of most charter parties. Although in this case the charterer is generally hiring the cargo space or the service a ship offers rather than taking over the vessel. This on-hire survey is carried out to safeguard the owner against potential damage caused during the charter by the cargo or any other part of the operation. For example, in the oil industry, exploration companies may charter an anchor-handling tug to carry out rig moves. This can be quite heavy work for the tug to carry out and any damage caused may be claimed by the owners.
1-398 Part of the on/off-hire survey requirements is to measure the consumables at the start and completion of the charter, For example the charterparty may state that the charterer has to pay for fuel oil and lubes. In this case there will a balance between how much bunkers the vessel had at the beginning and completion of the charter. The surveyor will also ensure that the statutory certificates are all in order (dates of issue and expiry should be recorded against each). A tally of cargo lashing gear is also generally included in the surveyor’s report.
1-399 In both of the above types of charter, the charterers will have a responsibility for returning the ship, and principally the cargo spaces, to the owner in much the same condition as they were in at the beginning of the charter. Or if they are unable to do this then at least they have to meet the costs of any necessary repairs. In many cases the owner and the charterer may employ the same charterer to represent both parties.
1-400 On completion of the survey the surveyor submits a report stating what has been done, what has been sighted and, where there is significant damage, the extent of that damage or at least the present condition. This must be factual and generally does not call for opinion. Included in APPENDIX 6 is a glossary of IACS standard reporting terms and these should be followed. It makes the reader more comfortable to see recognisable terms that are understood in the industry. The report may also include remarks on the general condition of the vessel’s engine room and accommodation and the amount of rust in the holds.
12.1 CARGO-RELATED SURVEYS IN GENERAL
1-401 In the previous chapter, ensuring the seaworthiness of the vessel was the underlying reason for various surveys that are undertaken by various types of surveyor. In this chapter we consider the cargo-related surveys that ensure the vessel is cargoworthy and the need to ensure that the interests of both shipper and shipowner are covered to meet the laws covering the carriage of goods at sea. It is not just to see that the cargo is safely and securely stowed for the voyage, but the cargo is what it says it is and does not endanger the ship.