The Association is now focusing on supporting the Members' loss prevention activities, especially by analysing the cause of accidents and by the preparation by specialists of preventive measures to be undertaken to decrease the incidence and cost of claims. From the Association's Regional Members' Conferences held during the business year 2003 and in the answers to questionnaire of September 2002, it was revealed that the Members expected the Association to make improved provision for pre-loading surveys. So the Association has decided to update its policy for arranging and paying for pre-loading surveys on cargoes of steel products.

The Association's policy, set out in our circular No. 55-003 of 24 June 1980, was as follows:-

1)	Members were encouraged to carry out surveys on the condition and stowage of the cargo and the watertight integrity of the hatch covers at every loading port but at the Members' discretion and for their own account.
2)	Any pre-loading survey costs would be recoverable from the Association if a claim for cargo damage arose later.
3)	Provided that the Members had given notice of large possibility of cargo claims in consideration of the condition of the cargo and the weather etc. to and the Association had given it approval in advance, the Association would pay for the pre-loading survey cost, whether or not any claim for cargo damage was actually received.
4)	The survey costs reimbursed would be included in the individual Members' loss record.

The Association has always taken the view that this policy would be cost-effective both for the Members and the Association, but from the view point of loss prevention and in response to the wishes of our Members, our policy will be amended.From now on, when requested by the Members, the Association will assist them to arrange pre-loading surveys for cargoes of steel products and will reimburse the costs regardless of the occurrence of the cargo claim, subject to the costs being included in the individual Members' loss record. However pre-loading surveys for cargoes of semi-finished steel cargo, steel bars and slabs etc. are NOT recommended.

In principle pre-loading surveys are outside of the normal P&I cover. However, steel products are easily damaged leading to frequent cargo claims being made against the carrier. Taking the foreseeable effect for minimizing and defending against the steel cargo claims into account, in future the Association will assist to arrange and pay for pre-loading surveys on steel products specifically, if and when so requested by the Members. For cargoes other than steel products, the survey costs will not be essentially covered and the Association will only pay for surveys in case where the Association considers it appropriate as a special case.

As it is the intention of the Association to facilitate the loss prevention, Members are requested to be mindful of the above newly introduced steps.