Damage & Loss Inspection-survey for Cargo on Board & Warehouse Certificate

The Viet-Nhan Agriculture - Industry - Marine Control Inspection Group

45, Str. 03, Ward 04, District 03, Ho Chi Minh City, Vietnam

Tel. (848) 3832 - 7204 – (849) 03615612, Fax: (848) 3832 - 8393

[email protected], [email protected], www.aimcontrolgroup.com

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No.: 3240/MR.0/2008AIM Date: 09 September 2008

FINAL INSPECTION REPORT

• APPLICANT : TOYAMA KAIGAI BOEKI SHIPPING CO., LTD.

• NAME OF VESSEL : TKB NATALIA

• COMMODITY : AMMONIUM SULPHATE IN BULK (S.A)

• DECLARED WEIGHT AS PER B/Ls : 4,149.830 MTS (NET WEIGHT)

• LOADING PORT : VOSTOCHNY PORT, RUSSIA

• DISCHARGING PORT : KHANH HOI PORT, HCMC, VIETNAM

• DATE OF COMMENCED DISCHARGING : 09 AUGUST 2008

• DATE OF COMPLETED DISCHARGING : 15 AUGUST 2008

• DATE OF INSPECTION : 13 AUGUST 2008 TO 02 SEPT 2008

• PLACE OF INSPECTION : ON BOARD THE SHIP AT KHANH HOI PORT &

WAREHOUSE OF FERTILIZER BINH DIEN CO.

• SCOPE OF INSPECTION : DAMAGE SURVEY

This is to certify that the requested survey for purpose of ascertaining the cause and extent of damage of ammonium sulphate in bulk onboard M.V TKB NATALIA are performed at the request of the applicant:

TOYAMA KAIGAI BOEKI SHIPPING CO., LTD – Owner of M.V TKB NATALIA

by AIM Control (The Viet_Nhan Agriculture – Industry - Marine Inspection Corporation). The Inspection Report is enclosed with the following documents:

(I) INSPECTION REPORT

(II) PICTURE OF ILLUSTRATION

(III) DOCUMENT FOR REFERENCE



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I.

1)

INFORMATION

SHIP PARTICILAR:

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Name of the vessel :

Call sign / Official number :

Port of registry :

Year build :

GRT / NRT :

Dead weight :

LOA / LBP :

Type of the hatch covers :

Cargo compartment :

TKB NATALIA Flag : ST. KITTS & NEVIS

V4WQ/7725661

PASSETERRE

1980

3,127 GRT / 1,596 RT

4,443 MT

95.0 / 88.06 m Breadth: 14.6 m Depth: 7.60 m

MAC GREGOR

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2)

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SHIP INFORMATION:

Ship - owner :

TOYAMA KAIGAI BOEKI SHIPPING CO., LTD.

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Name of the Ship - master :

Ship agent :

P & I Club :

Rep. of P & I Club & S.Owner :

MR. BUGAYEV YURY

BEN LINE AGENCIES (VIETNAM)

"INVESTFLOT" INSURANCE Co., Ltd (RUSSIA)

AIM Control (VIETNAM)

3) COMMODITY INFORMATION:

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B/L Nos. :

Place / Date of issue :

Origin :

Quantity as per B/Ls :

Shipper :

Consignee :

Policy of the Cargo No. :

L1

VOSTOCHNY PORT, RUSSIA / 21 JULY 2008

RUSSIA

4,149.830 MTS (NET WEIGHT)

AGROFERTRANS

BINH DIEN FERTILIZER COMPANY.

SG08/NK045/MANG-08 date 13 MARCH 2008

4) PARTICIPANT:

We and concerning parties attended on board the ship for inspection as:

- Captain and chief officer of M/V “TKB NATALIA”

- Bao Viet Quang Tri (Insurance to the cargo consignment)

- Binh Dien Fertilizer Company (Consignee)



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II. RESULTS OF INSPECTION

On August 13 to 15, 2008, we, surveyors of AIM Control did attend on board of the ship together with Master to carry out survey on the alleged damaged cargo in the ship holds No.1 & No.2 and damages of the Vessel. The results and statement of concerned parties as followings:

1) GENERAL INFORMATION • Kind of cargo are Ammonium Sulphate in Bulk • Quantity of cargo: As per Draft Survey in Loading port: 4,149.83 Mt

• Quantity of cargo: As per B/L No.L1 of Ship Master issued on July 21, 2008: 4,149.83 Mt.

• Quantity of cargo: As per Draft Survey in discharging port: 4,073.542 Mt (Refer to Report of

Draft Survey of InterControl dated 15 August 2008. It is agreed to approved by Ship Master) • Refer to COMMERCIAL INVOICE No. S052-AS-03/08-2 issued on July 21, 2008: Specification

of S.A cargo with Nitrogen content in recalculation on dry material is 20.8 PCT Min; Humidity is 2.0 PCT Max; Unit Price US$290.00 / MT CFR FO Ho Chi Minh city port, Vietnam.; Origin is Russia; Packing is in bulk.

• Name consignee: Fertilizer Binh Dien Company Ltd. • Cargo Underwriter: Bao Viet Insurance Corp. (VIETNAM)

• Total alleged damaged cargo discharged: 150.050 MTS. (Refer to Cargo Outturn Report of

Khanh Hoi Port dated 15 August 2008)

• The ballast water leaked from the Port Tank No.1 through the hole of the fore part of tank top into hold No.1.

• The ballast water leaked from the pipe line of STBD. Tank No.2 into hold No.2. • Basing on MATE’S RECEIPT No.L1 of Ship Master issued on July 21, 2008: Cargo loaded

from the open stock. Cargo contained a lot of foreign materials with carton pieces, pieces of polyethylene, coat dust. The cargo was different color yellow, grey, and white. Visual inspection showed that the cargo is moist. Vessel has no responsibility for cargo’s quantity, quality, and condition and cargo shortage at discharging port. According to Laboratory test moisture 4.0%.

• Basing on LETTER PROTEST of Ship Master issued on August 13, 2008: During the cargo operation on 12 August 2008, the cargo hold No.1 port tractor/ bulldozer was made damage at tank top port side in hold No.1. The water was leaked through hole which was caused damage to cargo in hold and cargo operation in hold No.1 was stopped from 10:00 LT/ 12

August 2008. • On 14 August 2008, Toyama Kaigai Boeki Shipping Co., Ltd. is Ship-owner of M/V “TKB

NATALIE” agreed to appoint AIM Control to be representative for and behalf of Ship-owner to solve all of status of cargo and incident happened on M/V “TKB NATALIE” in Ho Chi Minh city port, Vietnam.

• Basing on LETTER OF CLEAN HOLD of Ship Master issued on August 15, 2008: When finish

cargo operation, according with charter party full and complete cargo including residues shall be taken from the holds and discharge by the charters / consignees, free of any risks, liability and expenses whatsoever to the owners. But Stevedore can not clean hold exactly.



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• Basing on NOTICE OF STATEMENT of Sai Gon Port Limited Company issued on August 14,

2008: Sai Gon port did not receive any guides from M/V “TKB NATALIE” about equipments location in hold before and during discharging.; Sai Gon port did not receive any SOME OF THE RECORDS that stated the cause of damages to cargo was made by Sai Gon port.; Based on the fact of scene, Sai Gon port found out the damage of cargo caused of the vessel technical fault, not Sai Gon port’s Stevedore.

• Basing on NOTICE OF STATEMENT of Ship Master issued on August 14, 2008: Because of Strong rain has occurred partial to cargo of the hold No.2.

2) CONDITION OF COMMODITY ONBOARD

• In the ship holds No.1 & No.2, the cargo were discharged nearly finished.

• At the time of our inspection, in the ship’s holds No.1 & No.2, the quantity of remaining cargo were not able to be calculated due to the cargo in bulk.

• The cargo contact directly with tank top without Tarpaulin layers.

• Hold No.1:

− At 09:30 Hrs on 12 August 2008, during discharging operation S.A cargo in hold No. 1 of

MV “ TKB Natalia” at Khanh Hoi Port, HCMC – Vietnam. The Ballast Water of Tank No. 1 (Port side) leaked into Hold No.1. Some of remaining of S.A cargoes were alleged wet at Aft part of Hold No.1.

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The ballast water leaked into hold No.1

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The S.A cargo were into hold No.1 after pumping ballast water out of hold

• Hold No.2:

− At 14:00 Hrs on 13 August 2008, during discharging operation S.A cargo in hold No. 2 of

MV “ TKB Natalia” at Khanh Hoi Port, HCMC – Vietnam. The Ballast Water of Tank No. 2 (Starboard side) leaked into the aft part of Hold No.2. Some of remaining of S.A cargo were alleged wet at Aft part of Hold No.2.

− Quantity of the alleged cargo were not calculated due to the cargo in bulk.

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Ballast water leaked into hold No.2

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• The alleged damaged cargo were discharged to warehouse of consignee of Binh Dien

Fertilizer Company for Joint survey.

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S.A cargo were wetted

The ballast water was pumped out of hold No.1

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3) CONDITION OF THE SHIP’S HOLDS:

At 14:00 Hrs on August 15, 2008, we, surveyors of AIM Control together with Master did attend hold No. 1 & hold No.2 to investigate the cause of the holds of vessel. The results as followings:

• Hold No.1

− Tank top plating of port side of hold No.1 was holed with size 2 cm x 10 cm at the position of fore part.

− Tank top plating of hold No.1 was rusted and corrosion. The surface of tank top plating was sagged and hogged.

Tank top plating of port side of hold No.1 was holed with size 2 cm x 10 cm

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The holed is with size 2 cm x 10 cm

Tank top plating of hold No.1 was rusted and corrosion

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• Hold No.2:

− The Pipeline of Stbd Tank No.2 was damaged and the tracks of leaked ballast water were remained on the Stbd side plating.

The Pipeline of Stbd Tank No.2 damaged & the tracks of leaked ballast water leaked

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- Sample 1: Our seal No. : 0035333

Surveyor of Consignee : 0297645

Surveyor of Insurance : 0009134

- Sample 2:

Our seal No. :

0035332



- Sample 3:

Our seal No. :

0035337



4) CONDITION OF COMMODITY AT WAREHOUSE OF CONSIGNEE

On August 18 & 19, 2008, we, surveyors of AIM Control did attend at the site of warehouse of Binh Dien Fertilizer Company together with surveyor of Consignee, surveyor of Bao Viet Quang Tri Insurance and representative of consignee to carry out the joint survey on the alleged damaged cargo. The results and statement of concerned parties as followings:

• As per “Cargo Outturn Report”, the quantity of the damaged cargo were delivered by ship:

150.050 MTS.

• Checking weight of cargo, we found that: Total weight of alleged damaged cargo were

146.563 MTS (by scale weight of 3,001 bags)

• To classify the damaged cargo into 03 categories

• Open 5% of 3,001 bags to determine on the extent of damage.

RESULTS OF JOINT SURVEY AT THE SITE:

Category Quantity

(bag) Weight

(MTS)

Packing

Condition of contents

A

854 bags

41.708

P.P & P.E to be used

The cargo were moistured, discolored and wetted

B

1,316 bags

64.271

P.P & P.E to be used The cargo were bad moistured only

C

831 bags

40.584

P.P & P.E to be used

The cargo were slight moistured only

03 of representative samples were taken and sealed by 03 parties for analysis by Vietnam Governmental Laboratory.

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The alleged cargo were stored in Binh Dien Fertilizer Company’s warehouse

Scale of weight of the alleged damaged cargo

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Open 5% of 3,001 bags to determine on the extent of damage.

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Category A: 854 bags (41.708 MTS) of the damaged cargo

Category B: 1,316 bags (64.271 MTS) of damaged cargo

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Category C: 831 bags (40.584 MTS) of damaged cargo

In comparison with Category A & Category B

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The representative samples were taken for analysis Lab

The representative samples were sealed by 03 joint survey parties to send to the Lab.

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SAMPLE & RESULTS OF ANALYSIS:

03 above mentioned sample representing category of damaged cargo were randomly sampled from alleged damaged cargo for Lab. Analysis, results as follows:

Results of analysis

Characteristics to be analyzed

Sample A

Sample B

Sample C

Standard S.A Cargo

Nitrogen

19.9

20.1

20.0

20.8 Min

Moisture (%)

3.8

3.8

3.4

2.0 Max

SPECIFICATION OF THE STANDARD S.A CARGO AS PER THE CONTRACT:

• Nitrogen content in recalculation on dry material: 20.8 PCT Min

• Humidity: 2.0 PCT Max

• Unit Price US$290.00 / MT CFR FO Ho Chi Minh city port, Vietnam.

• Origin is Russia

• Packing is in bulk. 5) EXTENT OF THE DAMAGED COMMODITY:

LOSS AND SHORTAGE WEIGHT CALCULATION:

Basing on “Bill of lading” and “Draft Survey Record of Shipper Surveyor/SGS at discharging port” were signed by Ship’s Master, we calculated the quantity of loss weight of the cargo due shortage

as followings.

• Shortage of quantity delivered by ship

− Net weight of cargo as per “BILL OF LADING No. L.1” : 4,149.830 MTS

− Net weight of cargo as per “Draft Survey Record of SGS” : 4,073.500 MTS

SHORTAGE OF WEIGHT : 76.330 MTS (1)

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ESTIMATION OF COMMERCIAL VALUE DEPRECIATION:

Basing on the results of joint survey at the site of Binh Dien Fertilizer Company’s warehouse and results of analysis of 03 representative samples in the Vietnam Government Lab., referring to the market prices of the cargo in HCMC at the time our inspection, we proposed estimation commercial value depreciation as followings:

Category Quantity

(Bag)

Weight

(MT)

The commercial depreciation (%)

Weight

(MT)

A 854 41.708 40% x 41.708 16.683

B 1,316 64.271 35% x 64.271 22.495

C 831 40.584 30% x 40.584 12.175

(2) TOTAL 51.353

TOTAL OF THE LOSS AND DAMAGED CARGO: (1) + (2) = 76.330 MTS + 51.353 MTS = 127.683 MTS

WITH UNIT PRICE US$290.00/MT CFR HO CHI MINH CITY PORT, VIETNAM, IT IS CALCULATED AS FOLLOWINGS:

127.683 MTS X US$290.00/MT = US$ 37,028.07 (Round at US$ 37,028)

• TOTAL VALUE OF THE LOSS AND DAMAGES CARGO ARE US$ 37,028

(By said in word: Thirty seven thousand and twenty eight US Dollars only)

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III. THE ADJUSTED ON LOSS/DAMAGE & COMPENSATION

Ship-owner, Bao Viet Quang Tri (The Cargo Insurance) & "Investflot" Insurance Co., Ltd have considered on the settlement of this case by an Amicable Agreement for the settlement amount of US$49,770.70, namely:

No.

Claim Items

Claim (US$) by The Cargo

Insurance

Settlement (US$) by Ship-owner

1

Cargo shortage/loss amount

US$70,203.20

(= 242.080 MT x 290 US$/MT)

US$22,135.70

( = 76.33 MT x US$290 US$/MT)

2

Damaged cargo amount

US$32,636.60

(= 150.05 x290 US$/MT x 75%)

US$17,405.80

(= 150.05 x 290 US$/MT x 40%)

3

Lawyer fees

US$1,100.00

N/A

4

Survey Fees

US$2,000.00

N/A

Lump sum

US$105,939.80

US$ 39,541.50

First Adjustment

US$77,838.22

US$ 39,541.50

Second adjustment

US$60,000

US$ 49,770.70

FINAL ADJUSTMENT ON LOSS/DAMAGE & COMPENSATION

US$ 49,770.70

(Dollar Forty nine thousand seven hundred seventy and seventy Cents)

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IV. OPINION

Basing on the official results of our inspection, and refer to the relative document, we are of the opinion that the damages to the above mentioned cargo happened in the ship’s holds during the discharge at Saigon port, Vietnam due to the following causes:

• The cargoes were damaged, wetted due to Ballast Water leaked from ship’s ballast tanks into Ship’s holds.

• Short – delivery by ship. • Dunnage materials were not applied for segregation of the cargo from ship-side and

bulkhead. The ballast water leaked into ship’s holds caused of the Tank Top plating of hold No.1 and Pipeline of Tank No.2 were rusted & corrosion.

FOR AGRICULTURE - INDUSTRY - MARINE INSPECTION CORP.

Dr Capt Nguyen Te Nhan/General Director

Damage & Loss Inspection-survey for Cargo on Board & Warehouse Certificate

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