The trend towards greater modularisation is also affecting surveyors’ work. Weiss said: “This does lead to potentially more MWS work but it can also lower the number of total shipments surveyed. One example is that many of the modules have to be moved by barge, and typically ocean barge traffic with modules is all surveyed.”
Mills thought that due to the cost of modules, compared with traditional stick and build projects, there is an increase in surveying work. “The increased value of a single module, which incorporates sensitive and critical equipment, gives underwriters cause for concern,” he explained.
Volante and Covello agreed that, by and large, cargo warranty surveyors are seeing a change of emphasis towards larger modularised shipments. If the initial component parts of a pre-fabricated unit are already classified as critical prior to the modularisation exercise, then the number of warranty survey interventions will almost certainly increase, as both pre- and postmodularised surveys will be required, they explained. It is the increase in modularisation that is increasing the amount of cargo warranty surveying work, LOC’s Baggaley and Moran said. However, because of the complexity of the transport, the size and scope of the contracts, it is often only the larger companies that have the marine warranty capacity and services to cover such contracts.
RENEWABLE ENERGY Turning to the transport of renewable energy-related cargoes, which many see as a buoyant market for heavy lift/multipurpose vessels, Weiss explained that sector’s wide scope is driving demand for MWS services.
“The size and complexity of these shipments drives the need for a warranty surveyor. Offshore wind, much like traditional offshore energy, will need MWS approval on many aspects of the
project, including the design and installation phase, as well as the transit,” he said.
Mills said that in weighing up the specialised nature of renewable cargo, given that sometimes it can be a prototype, such as ocean turbines, the role of the warranty surveyor changes into more of an “outside of the box thinker”.
Volante and Covello said that beyond the need to survey the often new technology and/or prototype equipment associated with the rapidly expanding renewable energy sector, many of these projects still include shipments of conventional (large and expensive) items of generating or transmission equipment that are deemed by underwriters to be critical and subject to survey.
Baggaley and Moran thought that, essentially, the role remains the same, regardless of the project – the marine warranty surveyor still works on behalf of the underwriters to ensure that the construction and installation is done to accepted industry standards and to ensure that the risks are managed in such a way as to be as low as possible.
INSURERS’ PERSPECTIVE As for the insurers themselves, Weiss said that the insurance world tends to be circumspect. However, in his area of project cargo, when the company understands and can price for the risk, it is happy to take it on. “The bigger question nowadays is whether we are getting the proper premium for the exposure,” he said.
Peter Baggaley, London Offshore Consultants
Honing also thought that insurers are more aware of the risks, due to larger and more expensive modules. Therefore they require more risk control than before and this can only be achieved by an independent third party.
Volante and Covello said that as a result of ongoing soft marine insurance market conditions, cargo underwriters continue to maintain focus on the importance of warranty surveys to ensure that all reasonable practical risk management practices are followed, to minimise or avoid losses and achieve best risk performance.
As with many industries today, there is a danger of a potential skills gap which Weiss said has become geographically noticeable. “The bigger challenge for the insurance industry is the ageing of the workforce. In ten years, I might answer this question differently,” he said.
EXPERIENCED PROFESSIONALS Mills was adamant that there is a huge skills gap. “In my opinion, underwriters need to look for three crucial factors before appointing a marine warranty surveyor. The first is an unlimited master mariner licence or unlimited chief engineer licence, or university engineering qualifications. The second factor is experience. The third factor is professional indemnity. However, at the end of the day, it is about cost,” he explained.
Volante and Covello said the traditional experience-based skills associated with MWS – with a heavy dependency on master mariners, chief engineers and naval architects – remain important components.
It is the increase in modularisa-
tion that is increasing the amount of cargo warranty surveying work.
The Report • March 2017 • Issue 79 | 33
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
