An Insight into Pre-Purchase Surveys

08/05/2024

Read time: 6 minutes

Category: Blog

Author: Stuart Wallace

Van Ameyde Marine have recently undertaken several pre-purchase surveys. Such work can be undertaken on behalf of owners wishing to seek an overview of their potential purchase, or, Banks wanting to ensure that a vessel is a suitable lending security for the duration of any proposed loan being made against it.

Respecting the client confidentiality in any instruction is a given, but in pre-purchase work, this is especially so as significant decisions must be made based on the findings. Equally, the crew may not be aware that their vessel is up for sale, so interactions need to be sensitive and respectful of their understanding as to why the surveyor is there. If the client has advised the vessel that a "P&I Survey" is taking place, there needs to be an understanding that certain areas may be considered out of scope - for example, gaining access to the accommodations.

The above said, Van Ameyde Marine surveyors provide a detailed view of the fabric, condition and upkeep of the entire vessel, including:

a review of its trading and statutory certificates
a review of the competences of the crew
a detailed examination of the operation of and compliance with the Safety Management System

As time can be limited (usually a day on board) the surveyor needs to be skilled in planning what they want to see; when, how and with whom. They then need to be ready to undertake a deeper review of issues that arise.

Taking Each in Turn

An overview of the fabric, condition and upkeep of the vessel. This is arguable the most important element and starts with walking down the quay or the launch out to the anchorage. Is she where it should be, doing what you expected her to be doing – discharging / loading the correct cargo or taking on bunkers properly? Then, is the gangway or pilot ladder correctly rigged, safe and in date? Once on board, a very strong first impression forms, observing the state of the paintwork, clutter on the decks, safe walkways marked and available etc. The survey needs to be much more focused than that, with thorough checks of the machinery spaces, navigational bridge, cargo spaces and ideally ballast tanks and other internal spaces. What is seen needs to be checked against other evidence – the machinery and bilges may be clean and oil free, the lagging in place etc. but do the stated consumptions match those in the Engine Room logbook? What are the running hours on the major pieces of equipment? Are there any defects on the navigational equipment? Time most likely won’t allow access into all ballast tanks but do the coatings in those selected match the Company and Classification Society

records held – can the condition of the others then be extrapolated? Is there any internal damage? And so, it goes on for cargo handling equipment, mooring equipment, the external hull, lifesaving and firefighting equipment, galley and store areas and, where possible, accommodation.

A review of the vessels trading and statutory certificates. Although the “first impressions” referred to above is the inevitable starting point of the visit, a review of certification is a good formal starting point. A neat, well ordered, certificate file is indicative of care and attention to the formalities of running a ship. Certificates can then give interesting insights into the ship’s life – some examples that have thrown up further questions are:

Why do Class and Flag have different dates for the date of construction?
Are tonnages consistent?
Are there any Conditions of Class?
What are the Port State Control inspections revealing?
Why has the Safety Management Certificate just been re-issued out of cycle?

The competencies of the crew and validity of their certification. If the new Owners are going to change crewing arrangements, this may not be considered relevant but, it gives a good insight into the loyalty and regularity of those serving on board. If crew are coming back voyage after voyage, it is providing good continuity and therefore it is hoped commitment to the upkeep and operation of the vessel. It is a good indicator of caring and engaged managers. Crew and certification levels can be compared against the Safe Manning Document and the realties of the vessels trade. Plans for and records of drills and exercises shows that competencies are maintained but also that life saving and firefighting equipment is regularly used, checked and tested.

The operation and compliance with the Safety Management system. New Owners may indicate a change in compliance with the ISM Code, new Managers certainly would. So why bother with this aspect when it doesn’t appear to reflect the condition of the ship? An SMS review provides an excellent insight as to how issues are identified, raised, communicated and addressed both on board and ashore, especially if there is a relatively limited time on board. It shows how risks are assessed, how planned maintenance is conducted and confirms that it is dated and illustrates how problems are managed and supported. Whether that be an injury to a person or a defect to equipment. When conducting tests such as of steering gear, emergency generators or lifeboat engines, witnessing them completed in compliance with procedures provides reassurance that this is what happens all the time.

Bringing all the above together in a detailed report full of photographs illustrating the points being made offers Owners and Lenders a comprehensive overview of the subject vessel providing assurance as to the risk that they are taking on and the continuity suitability of their potential asset to operate in the way that they want it to for the time that they expect of it.