How ship owners reduce risk through remote pre-purchase inspections

By the end of October 2021, S&P activity in shipping has reached 6% of the global fleet. Out of which, vessels that are over ten years old have been changing owner most frequently. The financial value of a ship is the most important component of S&P activities, and the physical condition of the vessel is a substantial part of that (often around 10% of the value). It is therefore paramount to have certainty, and ideally conduct a thorough inspection. In times in which every day of charter counts, these inspections often get deprioritized - with purchasers realizing substantial issues only after the fact.

Remote, guided inspections carried out by the crew can be a way to solve that dilemma.

Ship S&P inspections are one of the most exhaustive types of inspections. Aspects like hull and coatings, decks and deck machinery, bridge, cargo areas, speed, and consumption performance data need to be included in the inspection. On top of this, various purchasers have their own specific requests. 

To go through this process, the seller normally organizes inspections with independent surveying companies. This means that the vessels have to pause commercial activities. Surveyors may need to be flown to the vessels and then conduct the inspections. This process involves various logistic coordination challenges and involves many uncertainties, especially during COVID times. In a hot market, each day of delay leads to high opportunity costs, which both owners and managers need to avoid.

Technological developments and digital transformation have brought a more flexible approach to conducting S&P inspections without delaying vessels - remote inspections. Through a digitized platform, companies can have their crews conduct inspections at the vessel’s availability. 

How can a smart inspections App provide more objective and verified assessments?

Kaiko Systems equips crews with a smart inspection App that guides them to collect data through checklists, picture reports, and ratings with a high degree of adherence to standards. Each data point is verified with the Kaiko Systems algorithms. In this way, both seller and buyer can have an impartial and transparent assessment of the vessels. Sellers not only remove the inconveniences of accommodating surveyors but also can generate the assessment report based on buyers’ requests.

Here is how it works:

• Kaiko Systems sets up a customized survey based on inspection requirements and vessel specifications.
• The designated officers conduct the inspection, supported by several guidance features provided in the App. This can be done in multiple sessions, over a period of time, whenever there is availability during a voyage or in port.
• The survey data is uploaded to the vessel health dashboard and visualized in a way that makes the review and assessment process fast and efficient, and allows automatic report creation.
• Buyers receive a comprehensive assessment with verified data.

With the visualized dashboard, sellers can have a comprehensive understanding of the vessel's health conditions, while buyers can easily compare multiple vessels under specific assessment criteria. S&P inspections therefore can be done without interruption to commercial activities and with impartial and reliable assessments.