The importance of getting the right people from 'day one'17 August 2004
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Lloyd's List, Friday 13th August 2004
THE profound change over the past century in how P&I clubs use surveyors was illustrated by a recent meeting between the UK P&I Club and a selection of the leading UK-based specialist marine consulting surveyors.
The meeting was part of a broader initiative by the UK Club called "Value for Money". Companies such as TMC, London Offshore Consultants, Brookes Bell, Bourgoynes, Minton Treharne & Davies, Associated Petroleum Consultants and BMT Murray Fenton heard the club explain that the emphasis was on value of service rather than rates.
"Value for Money" is a set of ground rules on the use of third-party suppliers such as lawyers, P&I correspondents and surveyors to enhance the management of club claims files.
The initiative is not a system for depressing surveyors' rates into a meagre tariff, says the UK Club - "indeed, it highlights the importance of these consultants’ involvement in the future".
According to the club, it is essential to have the right facts from 'day one' if a claims file is to be managed to a successful and economical outcome. This need for quality information in detail demands the right people on site immediately.
"It is a false economy to think cheap in the early stages" says Karl Lumbers, UK Club loss prevention director. "The failure to provide the full and correct facts for the claims handlers cannot always be rectified by drafting in expensive specialist consultants for a court appearance."
Claims recovery agents and the many other parties engaged in claims against shipowners and operators have become much more sophisticated than only 20 or 30 years ago, says the UK Club. P&I club members are more particular about quality service as their own industry becomes more specialised and focused.
The overall trend is that the demand for general surveyors is being supplanted by a demand for specialists.
The UK Club maintains a database of 4,500 surveyors which is people-focused rather than company-focused, it says. The database of individual surveyors' strengths and specialisms is used to select the best and most relevant specialist knowledge at the most convenient location for speedy attendance at the incident.
The "Carefully to Carry" committee demonstrates the extent to which the UK Club has developed access to these specialists.
"The committee contains industry experts chiefly drawn from the surveying community," says Mr Lumbers.
"They provide expert advice and guidance on commodities such as chemicals, steel, oil, container carriage, minerals and handling-related claims."
More than 100 articles have been published so far on cargo and stowage problems in 20 "Carefully to Carry" booklets, covering subjects such as the stowage of containers, fishmeal, calcium hypochlorite, steel, reefer cargoes, vegetable oils and others.
"The quality of advice given has established Carefully to Carry as a key source of guidance for shipowners and ships’ officers," said Mr Lumbers. "In addition, the articles have frequently been the source of expertise in negotiations over the settlement of claims and have also been relied upon in court cases."
The work of the Carefully to Carry committee is published in regular newsletters and via the club's website (www.ukpandi.com), on which an entire section is devoted to loss prevention advice and guidance.
The latest issue focuses on the safe lashing of containers on deck, ventilation of cargo compartments, the silver nitrate test for wet damaged cargoes and the temperature-controlled carriage of pharmaceuticals.
"As well as quality of claims information and loss prevention advice, the club and its members are keenly interested in the quality of the ships they accept," said Mr Lumbers.
"The UK Club has five ship inspectors on its full-time staff. They visit club members’ ships and undertake inspections to report back to the club the quality of these ships and, more importantly, the quality of their operation."
In the past year, this team of former master mariners carried out 530 visits, bringing the total to 7,213 since the scheme started in 1990. The club's board receives a report twice a year on the quality of member ships, highlighting any particular problem areas.
The UK Club's ship inspection operation works in conjunction with a team of around 60 independent ship surveyors around the world, who survey ships before they join the club or where a more thorough condition survey is warranted.
Condition surveys are required for any ship over ten years old wishing to join the Club, or where a ship inspector's visit has indicated such a survey is necessary.
"A high standard of expertise and insight is expected of these independent surveyors," said Mr Lumbers.
"The results of their work is included in the report to the UK Club board to keep it abreast of the particular technical issues and problems that are confronting modern ship operations."
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