Pre-shipment inspection (independent inspection)
An independent inspection company – SGS, Bureau Veritas, Intertek, Cotecna, CCIC, ALS and others – checks quality, quantity, packing and marking, draws samples and issues a report before the goods are loaded. The contract should state whether results are “final at load port” or “final at discharge”. Some countries require inspection under certificate of conformity (CoC) programmes for imports. It is one of the most effective safeguards when working with a new supplier.
Related terms
Draft survey
A method of calculating the weight of bulk cargo loaded or discharged by reading a ship’s draughts at six points before and after cargo work and correcting for seawater density, ballast, fuel and fresh water. For coal, ores, grain and fertiliser the bill of lading quantity is usually set this way, with an accuracy of about ±0.5 %. Having it performed by an independent surveyor such as SGS, Intertek or Bureau Veritas increases confidence on both sides.
Certificate of analysis (COA)
A document in which the producer or an independent laboratory reports the test results for a specific lot together with the specification limits. It shows the product name, lot number, production date, test method (e.g. ASTM, ISO), measured value and acceptance range. A TDS gives a product’s typical properties; a COA gives the actual values of the lot delivered. Under a letter of credit the COA must be issued by the party and with the content the credit requires.
Umpire analysis
Analysis of the retained sealed sample by an independent laboratory agreed in advance, used when the seller’s and buyer’s results differ by more than the splitting limit set in the contract. It is common in ore and concentrate trade; the umpire result is usually binding, or is averaged with whichever party’s result is closer. The cost is normally borne by the party whose result is further from the umpire’s.
Sampling (representative sample)
Taking samples so that they represent the whole lot, following standard methods – e.g. ISO 24333 for grain, ISO 3082 for ores, ASTM D4057 for liquids. In bulk loading, increments taken at intervals are combined and divided, and usually three or four identical samples are sealed: one for the seller, one for the buyer and one retained for umpire analysis. At the quotation stage, small type samples are tested for suitability; the contract should commit that the shipment will match the approved sample.