Since 1987 the UK P&I Club has been tracking incidents that threaten owners
profits putting jobs and lives at risk the Club's annual analysis of major
claims shows that collisions pollution damage to property and personal injuries
all take a serious toll but most expensive of all our cargo claims
accounting for one in four insurance payouts
human error plays a part in at least seven in ten claims
the way the industry is changing the club believes this situation will get
worse unless action is taken
the first in a series this video is an introduction to cargo loss prevention
other videos focus on specific trades
a book is available from the club or the nautical Institute
the cloud has taken these initiatives believing that owners charterers traders
and ship's officers could all benefit from a more open approach to the
carriage and care of cargoes
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since 1987 the UK P&I Club has been tracking incidents that threaten owners
profits putting jobs and lives at risk the Club's annual analysis of major
claims shows that collisions pollution damage to property and personal injuries
all take a serious toll but most expensive of all our cargo claims
accounting for one in four insurance payouts
human error plays a part in at least seven in ten claims
the way the industry is changing the club believes this situation will get
worse unless action is taken
the first in a series this video is an introduction to cargo loss prevention
other videos focus on specific trades
a book is available from the club or the nautical Institute
the cloud has taken these initiatives believing that owners charterers traders
and ships offices could all benefit from a more open approach to the carriage and
care of cargoes
once most shipping companies owned their own vessels and employed their own
seafarers a man might serve for many years in the same trade gathering
experience of his ship her owner crew ports of Paul are the cargo she carried
for most Mariners things are very different today a master who's
experience is mainly carrying timber and bauxite in the North Atlantic wide well
be called to Africa to take command of a vessel carrying rice you probably sail
within hours of his first sight of the ship there won't be time to get to know
the other offices the mate may have no experience of this type of trade or even
this type of vessel before this voyage it could be two years since the second
mate last went to sea and then on supply vessels commercial pressures mean cruise
which are smaller often less well trained and of mixed nationality are
here to stay
some problems like fatigue language and cultural differences the enemies of
efficiency even knowing who you're reporting to can no longer be taken for
granted unraveling the contractual ties binding owners operators shippers
charter as traders Korean agents and the rest could be a full-time job as
traditional ways of doing business are replaced by a mosaic of remote
relationships masters and mates will find themselves changing trades and
cargoes more often they will have to change to learning how to handle many
kinds of cargo at short notice is very different from slowly gathering
expertise in one one thing hasn't changed the ship's operator resists
voyages our conventions known as The Hague and Hague Visby rules both very
widely adopted
The Hague and Hague Bisbee rules provide the carrier with specific defenses and
the possibility of limiting his liability in exchange they impose
considerable responsibilities on him the carrier must exercise due diligence to
make the ship seaworthy properly man equipment supply her and make her cargo
worthy while The Hague and Haga Bisbee rules
grants the carrier specific defenses they leave him in no doubt about how
he's expected to carry out his responsibilities the carrier shall
properly and carefully load handle stow carry keep care for and discharge the
goods carried by highlighting ways of preventing loss or damage during each
stage of cargo operations this video aims to help masters and crews carry out
those responsibilities
all those passages can bring welcome relief from the pressures of port
there's usually plenty to do to maintain the ship in seaworthy condition five
seaworthy the hague rules mean hull machinery cargo spaces equipment and
crew must all perform properly so that the ship can go to sea without risk to
itself or to the cargo if a claim arises from a defect which a careful inspection
before the voyage would have revealed the ship owner is almost certain to end
up paying an improperly fastened tank top manhole cover allowed fuel oil to
damage a cargo of banked rice similar incidents involving ballast water a
common faulty lashing gear led to the loss of fifteen containers overboard
damaged to find more and a settlement exceeding $700,000 failure of a tankers
cargo pump halted discharge for ten days while oil prices fell it cost the owner
three quarters of a million dollars engine and generator problems caused by
poor maintenance led to a reefer vessel having to abandon her voyage and paying
two and a half million dollars to cargo interests to avoid accusations of
unseaworthiness all systems must be maintained in good order including cargo
handling systems hatch covers
access to cargo spaces and lighting bilge pumps and wells and sounding pipes
sensors and air vents faults must be rectified as soon as possible by the
crew or by specialists at the next port if necessary
procedures should be followed properly
rain-damaged 10 tons of grain when a series of mishaps meant a crew took
seven hours to close a hatch while discharging small amounts of leftover
cargo can cause big problems traces of barley led to New Zealand's health
authorities refusing to clear a cargo of fertilizer contamination cost the owner
one and a half million dollars when a different cargo is carried it's unwise
to guess how clean cargo spaces must be much safer to ask for instructions don't
miss the opportunity to examine for structural defects
when boats that had failed were ignored part of a bulk carriers hold lining was
discharged with the cargo it caused forty four thousand dollars
worth of damage to a conveyor steam leaking from a fuel tank heating coil
cause damage to bulk grain which cost one hundred thousand dollars
commercial success dictates that time import should be kept to a minimum
good commercial preparation is as important as good navigational
preparation 3 arrival meetings that all concerns know what to expect and what
their own responsibilities will be tonight 2030 the master should explain
any special requirements contained in the charter party or voyage instructions
the first mate should explain any peculiar --'tis of the cargoes loading
carriage and discharge if more than one cargo is to be carried are they
compatible or must they be separated they just come on day we have about 1.1
point 4 mostly in all 24 in the bulk trades the first mate will have
carefully considered the maximum load limits in each cargo space when planning
the stow this will remind the junior officers of the risk of overloading the
ship's structure if the cargo is not stowed according to the pre plans but no
one knows everything about the carriage of cargo if contributions are encouraged
the pre-arrival meeting is an opportunity for everyone to learn
before arriving in the loading port remember do everything possible to keep
the ship seaworthy be certain how clean cargo spaces should be and check for
structural defects convene a pre arrival meeting so everyone knows exactly what
to do you know they won't stretch which they want sometimes you can't push these
things around with your little finger you know you've got to get your crowbar
going
docks are notoriously difficult to secure no matter how well guarded the
entrance the back door is always open
if officers relax their vigilance cargo theft will increase
but even when this seems unlikely security is still vital
what your business i can4t vida
stowaways are not the only threats to a ship's commercial well-being
remember the shipper and his interests are not necessarily the same as the
charterers shippers receivers or cargo handlers
access to the ship should be denied to unauthorized persons
if crew are overextended employee security personnel if necessary
one identity regulation poppy
Hatcher's should be closed and doors locked
when not in use
visitors must not be allowed to wander round the ship take photographs or talk
to the crew without permission from the master a senior officer should accompany
surveyors but if the demands of arrival make this impossible a junior substitute
must be adequately briefed surveyors taking photographs for other parties
should be accompanied by a surveyor acting for the ship owner to guard
against Distortion
documents must never be signed without thought
however persuasive the argument I believe that chief mates turned in at
the moment getting some sleep I've delivered the paint it's all up for it
and it's all exactly according to the receipts so all I need now only signs if
you know you are authorized to do so is already checked if you don't understand
the document or don't know for sure that what it said is right don't hesitate to
say no yes sir I would suck for you to sign these papers staying with you
without open your hatch doors as a protest should always be taken seriously
ignoring vague protests by receivers of Steel in Libya led to a ship's arrest a
year later sign them for receipt only and forward them to the owner without
delay
receipts for cargo must never be signed until it's on board one in five high
value cargo claims is for deterioration caused by poor handling or poor stage
the traditional advice to new officers is to imagine that the cargo is their
own property sounds simple enough but what is it involved today arranging Duty
rotors to avoid overwork fatigue and mistakes if stevedores will be working
on board knowing how many gangs and the details of shift changes and brakes
appreciating that in some ports only stevedores are allowed to handle ship's
gear and breaking this rule can be costly we're sure based equipment is
used knowing how it works and how to communicate with the operators being
aware of its limitations with particular regards to movements of the ship being
certain of the draft limits of the berth or checking them being familiar with any
stability computer used on board understanding that strain from cargo and
ballast plans can endanger the ship
appreciating that the maximum limits for shear forces and bending moments were
calculated for the ship in new condition this means being alert to the causes of
damage or decay that weaken the ship and looking out for any unexpected lists and
trims
on arrival in the loading port remember secure the ship against theft restrict
access escort visitors think before you sign do you understand it are you
authorized sign letters of protest for receipt only and forward them to the
owner oversee the activities of stevedores consider the consequences
before changing cargo or ballast plans
one in ten high value claims arises from damage which occurs before loading
begins great savings can be made if officers carried out a pre-shipment
inspection whenever possible it's accepted that they can't be experts on
every cargo but it's expected that cargo officers note any obvious defects to
establish whether the cargo is in apparent good order and condition a
tanker may not have the facilities to confirm that a crude oil is Arabian
light but a sample full of water requires immediate action the container
with a broken seal always needs investigating it may be impossible to
confirm that steal is great be but you can see if it's rusty or deformed
in some trades pre-shipment surveys are routine but these may only protect the
interests of the shipper or charter unless the ship owner has arranged his
own survey
the master may not be able to carry out a pre shipment survey himself but he
still has a duty to declare the condition of the cargo when it's
received on board when the cargos condition is not as described in the
bill of lading there are two options rejected or Clause the bill in theory
but cargoes are often bought and sold by means of documentary credits a banking
system which rejects closed bills because it can't value them when the
condition of the cargo is such that the bill of lading should be closed a letter
of indemnity is sometimes offered instead masters should remember that
such letters may be entirely worthless if the person giving them is later
unwilling to pay courts have even taken the view that accepting an indemnity
constitutes collusion between shipper and carrier to defraud the consignee
in practice the objective must be to load a cargo that fairly matches the
description on the bill of lading
ships personnel have a legal duty to take care of the goods in their custody
they must ensure the condition of the goods is not impaired by poor handling
for storage or adverse weather rain often flushes out conflicting interests
you fine thank you very much what the it actually hasn't lanes it
hasn't rained from last two hours so we'd like to open the hatches and get on
with the job you've retire into the work right now according through that weather
condition it states here quite clearly that shippers wishing a master to
continue loading may offer an indemnity for any damage caused a cargo or ship
we've actually loaded hundreds of times with this letter whatever the commercial
demands and customs of the trade maybe it's unwise to rely on such a letter if
the shipper is later unwilling or unable to honor it the letter will be worthless
a little bit of rain that we have I don't see any problem when we come can't
come to some edible arrangement that we can actually get loaded and get run away
sir III knew you shouldn't set up your master stuff so I don't accept this
any party seen causing damage to cargo must be made accountable even if it's a
stevedore or Shore operator who mishandles the cargo the ship owner will
be the target of any claim to protect the ship owner reports all damage and
issue a letter of protest to those responsible when checking cargo
condition remember inspect the cargo before loading if possible record
obvious defects report damage and issue letters of protest to those responsible
don't rely on letters of indemnity
the carrier is also responsible for delivering the quantity of cargo stated
in the bill of lading he may face a claim for shortage if the finger
discharge is less even if all the cargo loaded is delivered claims for surety to
rise for a variety of reasons discharging at the wrong port could be
prevented by better planning and better supervision of stevedores theft on board
can be reduced by security arranging for a surveyor to seal the holes helps
defend against claims for short delivery
water draining from bulk cargoes can leach away ship owners profits
unless carefully measured and recorded
many claims results simply because the quantity of cargo loaded wasn't known in
the first place
whether by tallying measuring weighing or draft survey it's essential that the
quantity of cargo loaded and discharged is accurately recorded
if the figures stated by the shipper is incorrect and the quantity actually
loaded is known that mates receipt and subsequently that bill of lading must be
closed to show the real quantity
if the master can't check the quantity or believes it may be wrong the hague
rules let him protect his interests by using appropriate clauses said to
contain shippers load and count
wait quantity and quality unknown
when the freight is based on declared weight it's not unknown for shippers to
under declare which can damage or endanger the ship if not detected the
quantity of cargo loaded or discharged is often obtained from measurements made
assure the accuracy of these can never be taken for granted standards vary from
terminal to terminal throughout the world it's in the ship's
interests always to make its own measurements whenever possible
anticipating disagreements between ship and Shore figures many owners have a set
procedure to follow this often requires masters to contact the owner if the
cargo shortage exceeds a specified limit
the procedure established in advance can save time getting the ship moving and
earning money again to establish cargo quantity remember keep security tight
tally accurately make your own measurements consider sealing holds
ensure mates receipts and bills of lading show the actual quantity loaded
or are properly closed know in advance what the owner wants to do if ship
ensure figures disagree
when the pressure is on to leave the birth paperwork sometimes takes second
place but arriving with incomplete cargo documents has cost up to a million
dollars and a crew detained for a year
time taken now to ensure correct stowage lashing and stability can save money and
lives later edge covers and tank lids require special attention if sea water
leaks through any cover in poor condition the ship is held to be
unseaworthy and the owners lack of due diligence will mean he's liable for the
consequences
when this happens the club investigates the ship's maintenance regime and a
condition of its hatch covers it may require repairs before continuing the
owners insurance
water damage from below is not uncommon the best defense is regular sounding of
the bilges and always recording what you found instructions for the carriage of
cargo such as heating cooling or ventilating should be followed as
closely as possible actions taken should be carefully logged
sometimes it's just not possible to carry out instructions such as been
sedated conditions like this if you can't the reason must be locked and
charterers told without delay
if you have to reduce speed or change course the reasons should again be
spelled out
whatever voyage instructions may say it's the master who's responsible for
bringing ship crew and cargo safely to the birth on the loaded voyage remember
poor stowage poor lashing and hatch cover faults cause most claims sound
bilges regularly follow carriage instructions maintain appropriate
temperatures and ventilate when necessary
log weather and sea conditions and changes to planned course and speed
don't forget the master has the last word
whenever safety is concerned
right number three all wrong God
the cargo has arrived but unfortunately the bill of lading
hasn't the receiver's agent claims it's stuck in the banking system
the master is aware that releasing the cargo in the absence of a bill of lading
could forfeit the owners P&I cover what should he do the master doesn't want to
miss the tide and knows that holding up the stevedores will cost money
charter parties sometimes contain an agreement that the charterer will
indemnify the owner if he faces a claim for delivering the cargo to the wrong
person the master has alerted the owner and
telephoned the charterer for instructions until he receives them
everyone must be truly then why don't you start deciding the cover now to
avoid any further delay they must wait charter is obstruction even when the
Charter it gives the go-ahead the master is cautious have to receive a written
instruction Judah share this card run from here yes directions should always
be in writing but you know it's a farce on board and you know it in an hour a
later one owner who accepted his charter has telephoned instructions to discharge
was subsequently sued by him for 3 million dollars right as soon as facts
to received we can get to reach our target I would be grateful
the quantity of cargo discharged must be recorded as accurately as when loading
in bulk trades it's good practice to obtain an empty hold or dry tank
certificate preferably signed by the receiver with the very least the master
should log the fact that the hold or tank is empty
cargo damaged discovered at the discharge port must also be carefully
noted this helps defend the ship owner against any exaggerated claims that may
result it's essential for the master to arrange for a P&I clubs surveyor to
assess the amount of the damage and advise on the best way to minimize any
claims prompt action must be taken to identify the cause of the damage and
stop it happening again Goods communication between the ship and
stevedore helps prevent damage to cargo after discharging
this is not strictly the ships liability that in case it's later claimed that the
ship was responsible it's good practice to note any problems on arrival at the
discharge port remember demand original bills of lading before discharging cargo
if an original bill is not produced contact the ship owner if you can
establish the quantity of cargo discharged as carefully as when loading
record any cargo damaged and ask a club correspondent to call in a surveyor note
any circumstances after discharging that could lead to a claim against the ship
in the transport business mr. and the transport business is keeping things
moving
another cargo safely discharged another piece of business successfully concluded
but there's no room for complacency remember human error plays a part in at
least seven out of ten major claims
loading a reefer container into a slot wave was kept at ten degrees instead of
minors 18 cost $20,000 relying solely on the charterers tally of cotton bales
left a ship defenseless against a twenty-five thousand dollar shortage
claim a vessel infringing u.s. ballast salinity rules in the Great Lakes was
held off higher while returning nearly a thousand miles to see to rebalanced
hatch cover leaks caused damage to wheat worth one and a half million dollars
replacement packing and spares were on board but not used
when things go wrong knowing your rights is not enough you must be able to prove
that you've carried out your responsibilities
that's why commercial records should be kept as carefully as navigation records
accurate time recording if each log entry is essential to enable the master
to check the agent's statement of facts before sailing
any stoppages to cargo operations or reductions in pumping rates must be
accurately timed and their reasons recorded sort out any discrepancies with
the stevedore or Shore operator at the time not when the ship is about to sail
the dispute can't be resolved issue a letter of protest
it's good practice to log the weather every four hours
in any event the start and end of rainfall should be recorded to keep
track of whether working days good records make good business sense they
also make good evidence nowadays it seems there's no such thing as an
accident somebody is always to blame
it's not just the cost of a cargo but the cost of the legal battle that can
turn a minor incident into a major claim when good evidence is available the
claim can be resolved quickly and more cheaply if it goes to court judges place
great weight on good documentation from the vessel
it's always better to write too much than too little provided you stick to
facts and observations opinion and speculation must never be recorded
in some ports and on some types of vessel all forms of photography are
prohibited but we're permitted photos and videos can be valuable
additions to written evidence particularly if they have a date time
reference like any evidence they'll be available to all parties to a dispute so
they may reveal any deficiencies on board
lambs end and set off across the Atlantic you have a very if a claim
occurs it'll be difficult to recall what happened by the time you're required to
give evidence was that the only day when you had bad weather during the yes that
would seem to be the only day as far as I can recollect it
of course did look for example today your records will probably be all you
have to refresh your memory and should be written with this in mind write in
English avoid erasers and initial any Corrections yes so the the original the
scrap log is that still on board the vessel
well these crab logbook is usually returned to the owners office and then
it's destroyed or thrown away because it's a small office and we don't have
sufficient storage space don't throw away scrap logs or up notebooks or
reports made after incidents in law original records are more valuable than
those subsequently composed and never be tempted to improve a case by altering
records and for April all of these other vessels are reporting light winds calm
seas and it seems to me that it would be impossible for you to experience this
sort of weather on that day when all of these other ships which are within your
immediate vicinity and are totally independent are reporting different
weather it's many months now you must understand faking is easily detected by
expert investigators this makes matters worse and brings officers are known as
into disrepute there must be some mistake somewhere
somebody's got the dates room ships personnel who understand the
International cargo rules and are aware of relevant specific agreements between
ship owner and charter ax are better equipped to avoid claims other resources
will already be on board most ship operators provide manuals setting out
procedures to cover many operations including cargo masters standing orders
and first mates instructions and supplement company instructions
then there are publications from the IMO the nautical Institute and commercial
publishers
ukp and i club publications and videos are available free of charge to all
members
because human error is the cause of most claims it pays to think ahead make
records of your actions carefully they may become evidence photos and videos
are good evidence too don't destroy rough records even when fair copies are
made remember faking is easily detected use all
available resources to help you carry out your responsibilities
with its Lunden agent and correspondents in every major port the UK P&I club can
provide expert help wherever and whenever you need it
there are a small pool of course of the leaking
so six that's three just captain never hesitate to ask for help what we will do
is contact our local correspondent in Rotterdam and we will ensure that are
instructed to attend upon your vessels arrival no one knows everything about
the carriage of cargo more we share our experience the better we can take care
of business for the benefit of all
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