Draft surveys of bulk cargoes are a means of checking that the shipper’s figures inserted in the bill of lading are correct.
According to Gard Club, the receiver has paid for the quantity stated in the bill and that figure is prima facie or even conclusive evidence that the amount stated was loaded aboard.
A draft survey may be the best evidence to refute claims for shortage, so we recommend that members routinely order draft surveys for dry bulk cargo
However, the accuracy of a draft survey which has been properly performed is regarded as being up to more or less 0.5% of the final figure for dry bulk cargoes. As a result, barring exceptional circumstances, if the difference between the shore figure and the draft survey figure is greater than 0.5%, it may well represent a physical gain or loss, rather than being simply a “paper” difference.
Furthermore, the shipowner may be legally bound to deliver the weight or quantity stated in the bill of lading, no matter what the actual quantity received on board and available for discharge.
If the vessel’s figure for cargo actually received on board (such figure being ascertained by a draft survey after loading) is greater than the bill of lading figure, the shipowner can be reasonably confident that the vessel has received on board at least the same weight or quantity of cargo as the weight or quantity stated in the bill of lading
Nevertheless, if the figure is greater than the draft survey figure by more than 0.5% “the alarm bells should ring, both on board and in the shipowner’s office.” The reason is that the quantity stated in the bill of lading will often be legally binding as against the shipowner, whether or not it is in itself accurate, and the shipowner may be prevented from arguing that the bill of lading figure was wrong and that the “excess” cargo was in fact never loaded.
What is more, Gard says that bulk cargoes are commonly shipped under bills of lading which include wording such as “said to weigh” or “said to be” or “weight, measure, marks, numbers, quality, contents and value unknown”.
In some jurisdictions such clauses will mean that the bill of lading is not even prima facie evidence of the quantity stated to have been shipped. Such a clause will normally be upheld by the English courts, but the courts of many other countries will not recognise such a printed clause.
In addition, there are several practical problems which can arise. In these cases, Masters should:
- To make sure that his Letter of Authority to the agents specifically states that the bills of lading are to be signed strictly in accordance with the Mate’s receipts; and
- To ensure that the Mate’s receipts are properly worded and where appropriate, contain the ship’s figures as calculated by draft survey.
Another point that Gard makes is that, under the Association’s Rules, no cover is available for “liabilities, costs and expenses arising out of the issue of a bill of lading, waybill or other document evidencing the contract of carriage, known by the Member or the master to contain an incorrect description of the cargo or its quantity or its condition”.
Therefore, cover would be denied under this Rule if the Member or the Master knew that the quantity shown in the bill of lading was wrong but nevertheless failed to clause the bill and incurred “liabilities, costs and expenses” as a result of such failure
Concluding, Gard notes that the absence of draft survey reports will mean that there is no independent evidence which the shipowner can use to try to show that the weight or quantity stated in the bill of lading was wrong.
