The carriage of steel cargoes is frequently associated with cargo claims, often involving allegations of rust, mechanical damage, indentation, bending, contamination or other defects arising during the voyage. In some cases, however, such damage may have been present before the cargo was loaded, according to the UK Club.
Petar Modev, Head of Ship Inspections, UK Club, explained that a properly conducted pre-loading steel survey can help establish the apparent condition of the cargo before shipment and support an accurate description of its condition in the relevant shipping documents.
Objectives of a pre-load steel survey
The primary objectives of a pre-load steel survey are to:
- Record the apparent condition of the cargo before loading.
- Identify and document visible rust, contamination, deformation, mechanical damage, packaging defects, wetting or other abnormalities.
- Support the Master in determining whether remarks should be included on Mates Receipts and Bills of Lading.
- Provide contemporaneous evidence of the cargo condition at the time of shipment.
- Reduce the risk of disputes concerning pre-existing cargo defects.
- A pre-load steel survey should focus on the apparent external condition of the cargo being presented for shipment.
The surveyor should assist the Master by:
- Examining cargo units that are reasonably accessible before and during loading.
- Recording visible exceptions and defects.
- Photographing representative cargo condition.
- Advising on appropriate cargo condition remarks where necessary.
- Assisting in discussions relating to the description of cargo condition in shipping documents.
The survey is not intended to:
- Certify the quality of the steel.
- Guarantee the absence of hidden defects.
- Confirm cargo quantity.
- Report on the condition of the ships holds and hatch covers.
- Perform tallying functions.
- Provide general cargo stowage and securing consultancy services.
- Replace the Masters own responsibility for deciding whether cargo documentation accurately reflects the apparent condition of the cargo.
Bills of Lading and cargo documentation
A key benefit of a pre-load steel survey is the support it provides to the Master when assessing whether cargo documentation accurately reflects the apparent condition of the cargo presented for loading.
Where damage, rust, wetting, contamination, packaging defects or other abnormalities are observed, appropriate remarks should be considered for inclusion in Mate’s Receipts and, where applicable, Bills of Lading. The surveyors observations may assist the Master in documenting such findings.
Remember that cargo interests are entitled to rely upon statements regarding the apparent order and condition of cargo contained in shipping documents.
Practical considerations to maximise the value of a pre-load steel survey:
- Arrange the survey as early as practicable.
- Ensure surveyors are given reasonable access to the cargo.
- Retain survey reports and photographs.
- Notify promptly if significant disputes arise concerning cargo condition.
- Ensure that any concerns identified during loading are properly documented.
Pre-load steel surveys remain an important loss-prevention tool for finished steel products, helping establish the cargos apparent condition before shipment, support accurate documentation and provide evidence in the event of disputes after discharge.
The UK Club recommends focusing such surveys on finished steel products, which carry a higher exposure to cargo claims due to their susceptibility to visible damage and surface defects.