Case Study: Upholding Integrity During an Off-Hire Bunker Survey in Beira, Mozambique

Early this year, Observater Surveys and Services Limited was appointed to conduct an off-hire bunker survey at the Port of Beira, Mozambique. The survey aimed to determine the exact quantities of fuel on board a bulk carrier at the end of its charter period.

During the survey, our team discovered a discrepancy of +98 metric tons (MT) of bunker fuel, an excess that had not been declared in the vessel’s records. Such discrepancies can have significant financial implications, as they directly affect the settlement between the shipowner and charterer.

However, shortly after identifying the discrepancy, members of the vessel’s crew attempted to offer a bribe to conceal the finding, compromising the integrity of the survey and the fairness of the off-hire process.

The Challenge

Maintaining Integrity: Ensuring that Observater upheld its commitment to accuracy, fairness, and ethical conduct in the face of bribery.

Transparency and Documentation: Documenting the discrepancy and the bribery attempt in a manner that would withstand scrutiny from all stakeholders.

Stakeholder Communication: Informing the charterer and shipowner without escalating tensions or jeopardizing the survey process.

Observater’s Approach

Our team adhered to Observater’s core principles of integrity and precision by following a structured response:

1. Conducting a Detailed and Impartial Survey

Using certified measuring tools and industry-standard procedures, we determined the precise quantities of fuel in each tank, verifying our findings through multiple checks.

The survey confirmed an excess of +98 MT of bunker fuel that had not been recorded in the vessel’s official logs.

2. Handling the Bribery Attempt

The bribery offer, made by a senior crew member, was immediately declined.
Observater’s surveyor informed the crew member that all findings would be documented transparently and reported to the appropriate stakeholders.

3. Immediate Reporting to Stakeholders

The incident was promptly reported to the charterer and the shipowner, with full details of the discrepancy and the bribery attempt.

Observater provided a comprehensive report, including:Evidence of the discrepancy: Photographic evidence, soundings, and calculations.

Incident log: A detailed account of the bribery attempt, including timestamps and parties involved.

Recommendations: Steps for addressing the discrepancy and improving future transparency.

4. Ensuring Accountability

Observater worked with the stakeholders to escalate the matter appropriately while ensuring the incident did not disrupt the survey or off-hire process.

The survey results were submitted to both parties in a neutral and factual manner, ensuring trust and professionalism throughout the resolution.

The Results

Integrity Maintained:
Observater upheld its commitment to ethical conduct, refusing to compromise the survey’s accuracy despite external pressure.

Stakeholder Confidence Strengthened:

The charterer commended Observater for its transparency and diligence, emphasizing the importance of ethical surveys in mitigating disputes.
The shipowner acknowledged the findings and agreed to adjust the settlement in line with the verified quantities.

Financial Impact:

The discrepancy of +98 MT represented an approximate value of $55,000 (based on an average market price of $560 per MT of bunker fuel).
The accurate findings ensured the charterer was not overcharged and the settlement reflected the true bunker quantities.

Accountability Ensured:
The incident led to further scrutiny of the vessel’s operational practices, prompting the shipowner to review and improve onboard reporting protocols.

A Word from Our Lead Surveyor

“Integrity is the cornerstone of what we do at Observater. In this case, our refusal to compromise on accuracy not only protected our client’s interests but also reinforced the value of transparency and ethical practices in the industry. Every survey we conduct is a testament to our commitment to elevating standards.”

— Michael Robin, Senior Marine Surveyor, Observater Surveys and Services Limited

Conclusion

This case exemplifies Observater’s unwavering commitment to integrity, precision, and professionalism. By rejecting unethical practices and prioritizing transparency, we safeguarded our client’s interests and reinforced trust in our services.

Need a survey partner who stands for ethics and excellence? Contact Observater Surveys and Services Limited today.

We are specialists in: all types of bunker surveys. From Off/ On hire bunker surveys, BDS (Bunker Detective Survey), BIS (bunker detective surveys), ROB (bunker remaining onboard survey), BQS (Bunker Quantity Survey), Stem Bunker surveys, etc. Office Hours: Monday – Sartuday 08:00 to 17:00 Hrs, with 24/7 Availability for Operations.

For Bunker Surveys Visit: Observater Marine Surveyors in Africa for professional service.