Who the inspectors are
Independent inspection companies such as SGS, Intertek, Bureau Veritas and Saybolt measure and test cargoes on behalf of the parties. They are not part of the sale. Their job is to state, in writing, how much product was loaded and what it contained.
What happens at the load port
- Quantity: the inspector gauges the shore tanks before and after loading and checks the figures against the vessel's own measurements.
- Sampling: samples are drawn from the tanks and from the ship's line following recognised methods, then sealed and labelled.
- Testing: a laboratory tests the samples against the contract specification, for example EN 590 for diesel.
- Reporting: the inspector issues a certificate of quality and a certificate of quantity, supported by the ullage report and a time log of the loading.
Where the certificates go
The certificates travel with the bill of lading and the commercial invoice. Under a letter of credit they are among the documents the bank checks before paying, so a mistake in a certificate can hold up payment as surely as a mistake in the bill of lading.
The discharge port
The buyer can appoint an inspector at the discharge port to measure and test the cargo on arrival. The contract should say who appoints the inspectors, who pays them, which result prevails, and what tolerance is accepted between loaded and discharged quantities. Settling this in advance keeps a small difference from turning into a long argument.
Is the certificate genuine?
Forged inspection certificates are a known problem in petroleum trading. Confirm any certificate directly with the inspection office that issued it, using contact details you find yourself, not the ones printed on the document. A real cargo survives that call without difficulty.
At Portline, payment is made against the original bill of lading, the SGS certificate and the full set of shipping documents.