Cutting costs the right way?

Cutting costs the right way?

Nov 25 2014

Cutting costs in the right way?

A friend of mine, let’s call him Joe, runs a successful survey company for quite some years now. He is always very busy with surveys for windmill cargo on board of ocean carriers. I met him recently and asked how the business was going.

“Could be better. One of my clients cut 50% of my surveys because there haven’t been incidents lately. If necessary, I intervene the operations and guide the stevedores to make sure correct lifting gear is used in order to avoid damages on the cargo. I inform the client we had another successful load-out, I do all the things they desire and this is the thanks I get.”

Do you “hide” all your interventions in the final report in order to satisfy your customer? And/or is the client cutting costs the wrong way by saving on survey costs, because previous load-outs were also successful and assuming that this one will be successful too?

Do you, blog reading professionals, have experienced something similar? 

If so, how did you handle in this case? Hopefully, Joe and many more, can learn from you!

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2 Comments on "Cutting costs the right way?"

March 11, 2015

I have written two books relating to marine surveying:
• Report writing for marine surveyors.
• Running a marine survey company. (Both published by Petrospot)
In both of these I have suggested that telling anything but the truth does not do anybody any favours. Omitting salient facts about a survey does not give the true picture. Without all the facts the client cannot take any correct and necessary action. If you haven’t got the guts to tell it how it is you should not be in the marine surveying business.

Gerard Moustache
December 3, 2014

Some years back I did temperature control on a load of steam coal out of Maputo through a vessel’s P&I club correspondents. It all went smoothly. The next voyage that the vessel loaded the same cargo but without our intervention. We later heard that the ship caught fire and was a total loss. Possibly hot coal had been loaded without any party noticing. There have been several incidents of hot coal being loaded onto ships in Maputo and luckily in some cases it was discovered with the vessel still alongside and corrective action was taken. In those days the freight rates were good and there was no excuse for cost cutting except maybe greed.