JCC – CoP

Joint Cargo Committee Marine Project Cargo Surveyors’ Code of Practice (CoP)

Objectives:

This CoP has been produced to establish agreed standards for Marine Project Cargo Surveyors’ Performance while conducting Marine Warranty Surveys. It has the following objectives:
To:

  • Clarify the roles and interactions of the Marine Project Cargo Surveyor, the (Re)Insurer, the
    (Re)Insured’s Broker and the (Re)Insured.
  • Define the function of the Marine Project Cargo Survey Scope of Work.
  • Outline approval criteria for Marine Project Cargo Surveying activities.
  • Establish minimum standards for the performance of the Surveyor.
  • Define lines of communication between the Surveyor, the (Re)Insurer, the (Re)Insured’s
    Broker and the (Re)Insured.

Nothing in this CoP shall relieve any party of any legal obligation existing in the absence of this document or create any legal obligation where no such obligation would exist in the absence of this
document. The Code of Practice outlines the responsibilities of the Marine Project Cargo Surveyor, the (Re)Insured and the (Re)Insurer.

Definitions:

“The Surveyor”  – The appointed Marine Project Cargo Surveyor, whether an individual or a firm or a company, and which can be the survey co-ordinator if that role is not fulfilled by a loss control professional employed directly by the (Re)Insurer.

“The (Re)Insured” – The leading named (Re)Insured in the contract of (Re) insurance but to include (if not specifically named) the principal EPC Contractor to the project.

“The (Re)Insured’s Broker” – The broker appointed by the (Re)Insured to arrange the Marine Project Cargo (Re)Insurance and deal with Project Cargo claims and related (Re)insurance issues.

“The (Re)Insurer”  –  The (Re)Insurer leading the contract of (Re)insurance.

“Project Logistics Contractor” – The principal or leading logistics planner or contractor engaged by the (Re)Insured.

“The Vendor(s)” – The supplier/originator of the Key/Critical Items “Key/Critical Items” Items requiring survey/supervision during loading/unloading/shipping as listed in the Key/Critical Items Schedule.

“Key/Critical Items Schedule” – The descriptive schedule, agreed by the (Re)Insurer, of items requiring survey/supervision and their loading/shipping dates and voyage routes.

“Survey instructions” The instructions from the (Re)Insurer to the Surveyor, incorporating the Key/Critical Items Schedule.

“Scope of Work” – The planned survey/supervision activities in relation to each item in the Key/Critical Items Schedule, proposed and drawn up by the Surveyor and agreed by the (Re)Insurer.

1. Role of the (Re)Insured

1.1 The (Re)Insured and the (Re)Insured’s Broker will collaborate with the (Re)Insurer to identify those items of (Re)Insured plant and equipment or other goods whose importance to the timely completion of the project or whose cost or whose unusual handling and shipping parameters are such that they represent a critical risk of financial loss.

1.2 A Key/Critical Items Schedule will be produced showing at least:
1.2.1 The descriptive nature, weight, dimensions, value and lead/replacement times of each item.
1.2.2 The approximate shipping dates for and locations of loading, interchange and unloading.
1.2.3 The mode of transport for the voyage and each leg thereof.

1.3 The (Re)Insured will provide contact details for the principal persons involved in the logistics of the Key/Critical Items at the (Re)Insured’s business, the Vendor(s), the Project Logistics Contractor and the Project site as defined within the contract of (Re)Insurance.

1.4 The (Re)Insured will work together with the Surveyor in drawing up the Scope of Work documents for each Key/Critical Item and will secure any and all necessary assistance from the Vendor(s) and the Project Logistics Contractor.

1.5 The (Re)Insured will take all reasonable steps to ensure that the Surveyor is kept appraised of all relevant changes to information on the Key/Critical Items Schedule and will facilitate the Surveyor’s attendance or representation at all relevant planning and management meetings related to the shipping of the Key/Critical Items.

1.6 At least 7 days before the shipment of a Key/Critical Item, the (Re)Insured will provide the Surveyor with all the information necessary to facilitate a thorough review of the intended handling or shipping. That information might include but shall not be limited to:
1.6.1 Details of the proposed conveyance
1.6.2 Copies of method statements and risk assessments
1.6.3 Technical drawings and packaging specification of the item(s)
1.6.4 Lifting and securing plans and calculations

2. Role of the (Re)Insurer

2.1 The (Re)Insurer, or appointed agents or co-ordinators, will agree the appointment of the Surveyor according to their relevant qualifications, experience and certification.

2.2 The (Re)Insurer will specify whether a Kick Off meeting is required between the (Re)Insurer, the (Re)Insured, the (Re)Insured’s Broker and the Surveyor. At this meeting these parties shall agree the method of payment for survey fees, key risk milestones and any date(s) for a joint review of the project and the Scope of Work.

2.3 The (Re)Insurer will provide the Surveyor with the relevant (Re)insurance contract warranties and/or conditions precedent regarding the shipping, handling and transportation of items in the Key/Critical Items Schedule and a copy of the Key/Critical Items Schedule at least 14 days before the first planned shipment or any project Kick Off meeting, whichever is the earlier.

2.4 The (Re)Insurer and the (Re)Insured’s Broker will provide the Surveyor with their respective nominated contact person and contact details (including out of hours numbers) in the event that urgent communication with the (Re)Insurer is needed.

2.5 The (Re)Insurer and/or the (Re)Insured’s Broker will provide the Surveyor with reporting and escalation procedures in relation to any concern the Surveyor may have about a Key/Critical Item or about a potential or actual breach of warranty or condition precedent. These agreed procedures shall include guidance on the issuance of protests to the (Re)Insured, the (Re)Insured’s Broker or to the Project Logistics Contractor and will also give out-of-hours contact details for all the people who are to be notified to agree a suitable course of action.

2.6 The (Re)Insurer will, prior to the commencement of the shipping of the Key/Critical Items, review and amend or agree the Scope of Work documents proposed and drawn up by the Surveyor and will agree or amend the associated costs of survey and supervision attendances.

3. Role of the Surveyor

3.1 The fundamental objective of the Surveyor is to ensure that the transport and handling risks associated with the movement of Key/Critical Items are, using all reasonable endeavours and in accordance with best industry practice, reduced to an acceptable level.

3.2 The Surveyor will only appoint personnel who are competent, in terms of qualifications and experience, to perform the review/approval activity to be undertaken in accordance with the Scope of Work. This may require knowledge or previous experience of the cargo itself, specialised mode(s) of transportation, methods of securing or lifting, stability, voyage planning and related skills.

3.3 The Surveyor will review the Key/Critical Items Schedule and any other information, documents and instruction provided either by the (Re)Insurer or by the (Re)Insured and/or the (Re)Insured’s Broker. If any of this initial information is insufficient or is inaccurate the Surveyor must immediately advise the (Re)Insurer and clearly detail the further information that is required to proceed.

3.4 In consultation with the (Re)Insurer, (Re)Insured and the Project Logistics Contractor or other parties as necessary, the Surveyor will draw up the Scope of Work document for each Key/Critical Item, detailing – in relation to each Key/Critical Item – which handling/moving/securing operations are to be either reviewed on paper or attended and/or subject to the issue of a Certificate of Approval. The Scope of Work shall be issued by the Surveyor once agreed by and in a format acceptable to the (Re)Insurer.

3.5 The Surveyor will review the relevant documentation and information provided by the (Re)Insured for each Key/Critical Item to check the suitability, specification and certification for all lifting securing and stowage equipment to be used for the intended handling lifting and securing operations.

3.6 The Surveyor will carry out a suitable visual inspection of the condition of the carrying conveyance to confirm its suitability for the intended carriage of the Key/Critical Item(s) and that all statutory certificates are in order. In addition the Surveyor will check and approve:

3.6.1 The suitability of designated stowage positions/arrangements including a visual inspection of loading and stowage related welding.
3.6.2 The proposed lashing and securing methodology and permits.
3.6.3 The loading and stowage plan, including giving consideration to the proximity and security of other cargoes and the nature of the cargo itself.
3.6.4 All certificates for lifting and securing equipment taking particular attention to Safe Working Load (SWL) and Work Load Limit (WLL).
3.6.5 That the conveyance has adequate stability at all stages of the cargo lifting operation.
3.6.6 That the conveyance has adequate stability for the intended voyage;
3.6.7 That seafastening arrangements are in compliance with IMO Cargo Securing Code Annex 13, Non Standardised Cargo.

The Surveyor to provide details of these calculations, assessments and decisions in a preliminary written report to be sent to the (Re)Insurer and the (Re)Insured’s Broker within 48 hours of completion of the Survey.

3.7 Where there are Key/Critical Items either being moved by ocean going tow, or with a weight greater than 500 tonnes, the sea fastenings proposals should be independently verified by a Naval Architect.

3.8 The Surveyor shall send a report to the (Re)Insurer, the (Re)Insured, and the (Re)Insured’s Broker at the earliest opportunity (preferably within 48 hours of attendance) by e-mail once shipment/loading/discharge has been completed. This should include:
3.8.1 Items as outlined in 3.6 above.
3.8.2 A general description and statement of the condition of the cargo.
3.8.3 Confirmation that the operation has been completed.
3.8.4 Details of how the cargo has been loaded, secured and stowed.
3.8.5 Details of any exceptions (damages) noted regarding the condition of the cargo or packaging.
3.8.6 Opinion – The Surveyor’s confirmation that, in their opinion, the goods have been loaded, secured and stowed adequately for the voyage to be undertaken.
3.8.7 Photographs as appropriate.

Details of loading arrangements are to be provided to the discharge surveyor.

3.9 If any damages are present or occur during operations, the Surveyor should immediately issue a letter of protest on behalf of (Re)Insurers holding any third parties, including the carrying conveyance, responsible for the damages. A copy of this letter should be forwarded immediately to the (Re)Insurer.

3.10 If, at any time during their engagement, the Surveyor is not satisfied that all reasonable actions are being taken to fulfil the fundamental objective laid out in paragraph 3.1 above or if Policy warranties or conditions precedent might be breached, then the Surveyor should follow immediately the reporting and escalation procedures agreed by the (Re)Insurer under paragraph 2.5 above.

JC2013/005
21/02/2013

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