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In the current pandemic scenario, any mechanism which reduces the requirement for prospective buyers or investors to fly around the globe and attend inspections can only be of benefit. Further, it has also become far more difficult and expensive to freely move around between countries due to extra protocols enforced. Due to this, the buoyant S& P market has experienced a notable increase in transactions that make use of the pre-sale ship inspections.

A pre-sale inspection is organized by sellers to assess the condition of their vessel and present the report to their potential buyers. The pre-sale report represents the vessel and provides buyers with an evaluation of the condition of its critical areas. However, as pre-sale inspections are commercially controlled by the vessel’s sellers, the reliability of these inspections and the S&P procedure is always questioned. Let’s discuss the advantages and disadvantages in detail, but first, understand the difference between pre-purchase and pre-sale inspections.

Difference between Pre-Purchase and Pre-Sale Inspection

Pre-purchase inspections typically refer to a buyer’s inspection where they engage with a 3rd party inspection company for a general condition assessment of the ship. Based on the surveyor assessment report provided by the inspection company, the buyer makes the decision and bids for purchasing the vessel. Whereas, in a pre-sale inspection, sellers engage a third-party inspection company to evaluate the condition of their ship.

Pros of Pre-sale inspections

The advantages of a pre-sale inspection differ for the seller and buyer of the ship. Read along to find out-

For sellers-

1. Complete control of the vessel’s sale in the seller’s controlled market.
2. Sellers get the opportunity to correct the defects or address pertaining issues before presenting the ship to its prospective buyers.
3. There are no multiple surveyor attendances. Furthermore, there is less distraction to the shipboard crew and a reduced risk of COVID-19 infection to the crew.
4. Confidential reports of the ship are only made available to serious buyers.
5. Crew motivation is preserved.

For Buyers-

1. Buyers get inspection reports of the vessel at a relatively lower cost as the cost of the inspection is shared amongst all prospective buyers.
2. The inspection report is readily available. There is no requirement of conducting a pre-purchase inspection.

Cons of a Pre-Sale Inspection

Like advantages, the sellers and buyers have different disadvantages when it comes to pre-sale inspections.

For sellers-

1. As the inspection is controlled by sellers, buyers are not able to trust the inspection reports.
2. By presenting a pre-sale inspection report, sellers lose some serious buyers who prefer to conduct the inspection by their representatives.

For Buyers-

1. As the inspection is controlled by sellers, there is a risk of evaluating a biased inspection report.
2. Buyers have no control over the inspection procedures.
3. Buyers have to compromise with the information provided and then make a decision based on it.
4. There is no competitive advantage to the serious buyers. All buyers are provided with the same information.
5. Lack of transparency in the S&P process from the perspective of the buyer.

Sinotech Marine’s Transparent Solution to the Pre-Sale Inspection

As both buyers and sellers have to face some risks and losses due to pre-sale inspection, Sinotech Marine has come up with a solution that will increase transparency and benefit all those associated with the transaction. Sinotech Marine provides ship inspection reports through its portal, www.shipinspectors.com. On this portal, a buyer can directly verify inspection reports, post their reviews and share their feedback with the community of customers. A feedback-driven community makes our inspectors more diligent and reliable for ship inspections.

The ship inspection reports are produced electronically on a portal by a ship inspector. Therefore, there are no possibilities of manipulation or alteration once populated by the ship inspector. The analytical reports with supporting documents are under complete control of the ship inspector, therefore; promoting impartiality and transparency.

 How does it work?

Step 1: The inspector discusses with the sellers and decides the schedule, port, and cost of the inspection.

Step 2: After the survey is completed, the reports are published on Sinotech Marine’s portal www.shipinspectors.com

Step 3: Prospective buyers can visit the portal and download the report after making a payment of USD 1000/-

Step 4: 50% of the fees received from the buyer will be used to offset the seller’s cost of the inspection.

Connect with Sinotech Marine to know more about pre-sale inspection reports.

A dry dock of a ship is a hazardous place to work at. Despite implementing measures for ensuring the safety of seafarers and workers at the dry dock, accidents can still occur frequently. Be it human error, lack of knowledge, experience, or insufficient safety equipment, in the end, the seafarers have to suffer the most. 

A various number of causes are asserted reasons for accidents that occur onboard ships during dry docking in the vessel’s engine and deck sections. Although most of these causes are similar for both sections, the engine room is highly prone to accidents during the dry dock.

The ship’s engine room comprises a variety of machinery and systems that work together to move the ship. Thereby, the engine room crew needs to know all the operations and procedures for the ship’s dry dock. However, despite everything, accidents still occur in the engine room of ships. Below mentioned are some of the most common engine room accidents during dry-docking –

Fire- One of the most common and dangerous causes of accidents during the dry dock is fire. It can damage the ship’s machinery and pose a risk to the lives of seafarers. A fire may erupt due to hot works or a short circuit of electrical connections in the engine room. Proper insulation, adequate circuits, and electrical boards must be put in to avoid overloading. 

Injuries due to falling of load– When machinery and the system go for maintenance during ship dry-docking, parts are lifted to and from the engine room. There have been several cases where the falling of load on crew members has led to deaths. Thus, wearing a helmet is compulsory in the ship’s engine room. In addition to this, the following can be considered to prevent accidents in the engine room-

• A minimum of two people must be assigned for any task of lifting load using cranes. One member can operate the crane, and others can give direction and warn people to avoid accidents. 
• Members of the crew should not walk under any load when it is lifted by the crane, even when they are wearing helmets. 

Falling/ Tripping of personnel- During the dry dock, numerous spare parts, tools, and equipment are kept around in the ship’s engine room. This is why a seafarer is highly susceptible to trips and falls in the engine room, which can even become extremely harmful in some cases. At times, oil or small-sized spare parts are also found lying on the floor plate, which becomes another reason for falling or tripping. Personnel can also fall from height due to scaffold or safety harness failure. Therefore, care must be taken to ensure that all platforms situated at height are secured; and appropriate safety measures are provided. 

Enclosed Space Accidents– Enclosed spaces are the most dangerous areas of an engine room due to the presence of toxic and flammable gases. There have been various cases of accidents that have led to unconsciousness and death of seafarers even after these spaces were gas-freed. Thus, it is important to ensure that enclosed spaces are gas freed and tested. 

In addition to this, various other accidents can occur while dry-docking a ship. As this procedure is an important activity for ships, the crew should take complete care and precaution to avoid accidents. Since there is a significant need for dry-docking, Sinotech Marine is here to provide the best services. We offer ship dry-docking service for all types of ships. Connect with us to know more about our maritime services.