The financial value of a ship must be monitored when it is a collateral asset against a loan. For different occasions, like S&P activities, it is important to conduct a thorough inspection and assess the vessel's market value.

Generally, these surveys are conducted by 3rd party surveyors who must travel to the location of the vessel and finalise the inspection within a day. This is costly and time-consuming. The inspection time and areas are restricted by the voyage and cargo plan of the ship. Also, it is difficult to receive inspections in a standardised structure, as 3rd party service providers follow slightly different frameworks.

Moreover, external factors that limit travel and physical presence such as the Covid-19 crisis highlight the importance of remote methods to conduct condition assessments.

Technological developments and digital transformation bring new challenges and opportunities to the maritime industry. More flexible approaches to existing challenges bring cost and time savings, while also bringing new expectations towards the skill set of crews and management companies.

Company:

The Norddeutsche Landesbank Girozentrale (Nord/LB) is a German Landesbank and one of the largest commercial banks in Germany.

Industry:

Banking

Challenges:

• Time and logistic limitations
• Accessibility of inspection areas in the vessel
• Lack of standardisation

Solution:

Kaiko Systems facilitates data-based collaboration by allowing ship management companies to collect relevant information themselves, without the need for physical presence by a surveyor. A guided self-assessment is conducted by the designated officer over a period of time. The valuation expert receives accurate and standardised data, and can request additional details. This brings flexibility and improved quality, while eliminating travel completely.

Results:

• Remote vessel condition assessment
• Flexible scheduling & access to desired areas
• Reduction of cost & improvement of quality

Identifying key challenges:

Nord LB, as a ship financing institution, requires an investigation of the market value and the need for condition-related discounts of the vessel as collateral. Additionally, the bank needs to ensure that normal commercial operation takes place without any hazards which might cause detentions and off-hire times that influence the cash flow generation.

To achieve these targets, condition assessment surveys are conducted by approved 3rd party surveyor companies. This process poses several challenges and limitations for Nord/LB:

• Scheduling of surveys is complicated and might require shipping companies to add additional time spent in port.
• Surveys are usually completed within only 8 hours, which limits the access to inspection areas like specific ballast tanks.
• Reports often don't fully meet the bank's standards, as there are varying structures applied by different surveyors.

Implementing a revolutionary approach for faster and more accurate condition assessments

With Kaiko Systems, vessel condition assessments can be conducted remotely, within a flexible time frame, and with a high degree of adherence to standards. The whole process is fast and easy with only a smartphone needed on board to enable ship managers to conduct a full, verified self-assessment.

Here is how it works:

• Kaiko Systems sets up a customised 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 several weeks, whenever there is a time during a voyage.
• 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.
• Nord/LB receives a comprehensive assessment with verified data.

To ensure data integrity, plausibility checks, such as step counters and time stamps, are deployed within the software environment.

“For NORD/LB, ensuring the safety of our assets is integral to our performance,” says Igor Krupnik, Senior Director S-A-R Valuation. “Kaiko Systems allows us to not only have flexibility and efficiency in the condition assessments but, more importantly, ensure accuracy and reliability. We are able to simplify the process for the ship manager as well as our partners.”

Business results achieved

The Remote Self Assessment brought transparency, flexibility, and efficiency to the condition surveys. It was possible to conduct the survey during the voyage of the vessel by the crew members. Therefore access to concerned inspection areas was not a problem anymore. The ballast tanks and cargo holds were inspected within a longer period of time, so loading conditions did not pose an obstacle.

• Time saved: According to bank requirements, at least 2 ballast tanks should be inspected, which is usually difficult during an 8-hour inspection.
• The cost saved: There was no need to schedule and plan a 3rd party surveyor visit under time and location restrictions.
• Standardization: Standard inspection procedure and content were provided, which are independent of the user, and fully comply with the bank requirements.

About Kaiko Systems

Kaiko Systems GmbH was founded in 2020 to make shipping safer, smarter, and more collaborative.

The tech company has developed a smart and user-friendly data collection and analysis tool that provides shipping companies and their stakeholders with comprehensive insights into the manual part of technical operations, such as inspection and maintenance.

With a user-friendly mobile app, crews are able to continuously collect reliable technical data on the job. The automated, AI-based analysis then can verify the plausibility of the data and provides the shore teams with data-based insights on potential risks and efficiency gains. Disruptions and downtimes of ships can thus be reduced.

Kaiko Systems now works with leading shipping companies such as Marlow Navigation, USC-Barnkrug, The Asian Spirit Steamship Company, Auerbach, and more.