Underwriting Survey: Cargo Load out – Flight Simulator 1/4

Flight Simulator prior to load out survey in Denver, CO

This article outlines an oversize load cargo survey

which was made on behalf of Underwriters and our third party client.  Other posts will outline our clients (and our) liability, in additon to the road freight transport liability.

The cargo in question were three separate flight simulators with surveys spread out over several months.  A single team of four men (partially familiar with the equipment – as we found out) disassembled the units, prepared them for shipment, then re-assembled them at a different location, with one unit going to local storage where we surveyed the unloading.  The simulators are valued at several million dollars each and have a costly 6 point free floating hydraulic system which simulates the physical movement of an aircraft; the units weigh ~28,000 pounds total.

Our surveys were near  Denver International Airport at CAE, a flight simulator company that specializes in training pilots for nationally recognized airlines on several models of aircraft. We met with the moving team, fleet trucking operators (extremely professional – doesn’t happen everytime!) and crane operator Joey Lutz of Duffy Crane.

Immediately we noted that load out team appeared fatigued and found they had been working  21+ days in row, over 10 hours a day, far away from home.  Their work ethic was less than moderately productive and news came quickly that two of the four workers had no experience moving large cargo, or disassembling / reassembling flight simulators.  This gave a solid clue that we were in for a long day – 14 hours to be exact.  Much of that time was spent waiting on a truck re-order as the wrong height measurements were given when ordering the service, which caused the wrong height trailer to show without an over-height permit.

The first thing to remember on a cargo survey is that you’re responsible for making sure the load is secure and that  the permits are issued.  You might want to review our basic theories on a cargo survey to get a better idea of some other conditions to be met.

The load required two double drop freight trailers: a single 12′ wide load and a 14′ wide load.  Step decks on each truck were used for the pump unit and a separate lower section.  Additionally there were two 53′ vans for each unit to house the computer, hardware, and hydraulic arms array. All units were already disassembled and packaged but as Murphy’s law would have it things didn’t go so smoothly.

The first error

Section 1 Flight Sim Cargo Survey Tow Motor Pulling unit

The crew tried pulling the upper section 1 with a tow motor to get it outside of the warehouse.

Common sense tells you there are no brakes on the transport wheels and if the tow motor driver slipped, the unit could get some speed and there would be no way to stop it.  Instead, we recommended the tow motor line up from the rear, facing the opposite direction for a “pull in opposite direction format”, while one man pulled the unit out with a come-a-long.  Slow and steady, the man could get out of the way if the unit came loose, rather than crash into a tow motor possibly injuring the driver.  The unit was then hoisted using a load yield bar (split) and hoisting straps rated well in excess of the 10-12 ton load weight, this was done as an “A frame” setup on both sides of the unit as above.

Both the previous section and the pump-house were eventually loaded on the truck – but not before we documented the improper handling of the pump and ensured the unit was wrapped properly for transit as shown here:

Improper handling of pump house

The load out team didn’t have a strong enough tow motor to pick up the pump house, and against our recommendation they rigged some straps around potentially fragile hydraulic motor plumbing to assist in the weight transfer.  We disagreed strongly but the team refused to cooperate.  We closely documented the conditions of this move and noted several photos in our report to Underwriters, which is about all you can do in a situation like this one.

Pump House being set on Truck

The crew also intended only to cover the top 80% with a tarp, which would have exposed the entire unit to elements from the road (rain water), possibly causing the unit’s electrical areas to retain moisture, causing rust in elements that might fail.  The crew was very angry in our requiring them to fully shrink wrap the unit, but the truck driver thanked us as they hadn’t ordered enough tarps to cover the full load.  Surely he didn’t want to get on their bad side either (shown below being set on truck).

The upper sim section and pump house were tethered to the truck using Grade 70 1/2″ cargo tie down chains, rated to 11,300 W.L.L with 30,000 lb test chain ratchet binders.  They were tethered to the flat-bed resting four corners on the flight sim in an “x” format, which helped strenghen the load by giving a maximum of 45.2k lbs in strength.  The entire load was less than 10 tons (20k lbs) on this truck.  The top was then covered with a tarp and over 100 bungee cords to keep in it place.  The pump house was also stabilized in a similar fashion.

This was only the first quarter in loading the first simulator and it was already 2pm.  We all took a short break for lunch while the crew put the lid on the second oversize load of the first simulator.  Finally, after several attempts on a very windy spring afternoon, this load was finished, secured and ready to roll down to Phoenix as shown here:

Freight / Cargo on Board - Flight Simulator

A surveyor has much to remember and look out for when handling a load out of this size.  The days can become long and mistakes happen without warning.  Remember to stay alert and try to take good notes – they’ll come in handy when working on your report.  We’ll be posting the second section of this load out soon…so check back soon.

Basics of a Cargo Loading Survey for Insurance Underwriting

What purpose does a Cargo Loading Survey have?

A cargo survey is performed before an insurance policy on the freight or cargo in question is made active.  For this and all other posts, we’ll refer to cargo as goods that are bulk or break-bulk and freight as goods that are on pallets or where multiple sections can fit in a 53′ caravan.  This review of the cargo and survey of loading is often requested on very expensive equipment that is considered to be an oversize load or “super load”.  Conversely, a daily truckload of cheese  from the factory or distribution to grocery store is simply loaded and transported frequently enough that the freight is without question and valued as cheese on a daily freight policy.  The survey is done for several reasons outlined below.

The survey ensures that the cargo or freight :

Flight Sim section 1 in mid air move to freight bed

• is real, durable, in good condition without damages
• lays within the description that the purchasing party and underwriters have described it as and agreed to
• is being transported by people who are competent, able, qualified, and in a sound mind to move the equipment.

Cargo or freight insurance policies are typically issued in the fashion of an inland marine policy where coverage might apply from the moment the goods leave the door of the warehouse or holding facility, to the time they are set on the ground after being taken off the truck; they can be modified as seen fit by Underwriters.

Review of Documentation:

NASA Worker probably reviewing some insurance information before shuttle launch

The surveyor or adjuster’s should also:

• record and verify all of the  parties involved in moving the cargo, and their contact information.
• takes copies of and verifies all State Department of Transportation road permits
• review and copy all bills of lading, purchase orders and invoices
• occasionally verify the driving records of truck driver, if requested.
• cross checks dates and verifythem against other documents

Securing the Cargo load:

Cargo or freight underwriting surveys can be pretty hectic.  Often times the crews will be tired or overworked and things are usually destined to go wrong in one way or another.  Sometimes the wrong truck or crane shows up or there’s a tear in a sling – maybe a crew worker just gets frustrated and could care less about the rest of the team.  All of the above mentioned things are really important, but they are technicalities and can be dealt with later – expect for the permit, which is very important.  Aside from those listed above, the single most important factor is to make sure the load is secured property and to document it.  If the truck gets into an accident and / or looses the load, you can bet money that the trucker and his company are going to point their finger at you, likely no matter what the evidence is or how many police officers saw it differently.  Even if they don’t, the cargo insurance company you’re working for might. Cargo load outs are a big risk for errors and ommisions or liability insurance of the surveyor.

Truck chains used to secure cargo for flight sim load 1

For this reason it’s absolutely necessary to document the condition of the unit before hand, in addition to the condition of all load securing devices and the load itself, once secured. One cannot stress this enough!!!

When all the cargo is lifted and set on the trucks for transport, the surveyor should:

• inspect all chains, tensioners / binders to ensure they are in sound condition prior to use, taking photos and any serial numbers and / or manufacturer’s information available.  Also, ask the trucker how old the chains are and when he lasted used them.  Either he’ll lie about it or tell you the truth but at least you’ll have something for counsel to question him on should it go to court.
• review all the securing points / loop eyes on the load to check for any cracks that could break during transport
• allow the trucker and load out crew to secure the load, then carefully review it for any error
• Do not hesitate to ask for something to be changed if it doesn’t make sense
• once the load is secure, allow the crew to cover and tarp the cargo then make sure it is secure with tie downs and / or bungee cords.
• document the major tie down areas with photos and notes for your report, in addition to all of the above mentioned factors in securing the load

Forming a report:

Take good notes for your survey report!

Your report should include all of the basics mentioned above, in addition to any particular details you noticed or documented – particularly those that were done without your consent.  For example, if the moving crew potentially damaged something by bumping it into another object or if the trucker failed to secure the tarp and / or load to your requirements.  Remember: If the load gets damaged a lot of folks are going to look at your report and point a finger at it so document everything with photos as well.  No doubt you’ll be testifying in subrogation proceedings if something goes wrong – that’s what you’re being hired for.  There’s no such thing as gathering too much information and it’s always better to have too much than too little. Pay attention to detail and never hesitate to let everyone know the insurance policy could be void if they go against what you recommend.

Common Sense goes a long way in this business and it always pays to be objective when a preponderance of doubt arises.  After all, all a group of attorneys need is a preponderance of evidence to begin a negligence case against your errors and omissions insurance.  Oh…and on the advice of any good insurance services agent, never, ever admit coverage for anything, unless you have the authority to sign a check.