Why the Statement of Facts is Essential in Shipping Operations

The Importance of the Statement of Facts in Shipping

In the shipping industry, accuracy and transparency in operations are critical. One of the key documents ensuring this is the Statement of Facts (SoF). But what exactly is a Statement of Facts, and why does it hold such importance in maritime operations?

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What is a Statement of Facts?

A Statement of Facts is a detailed record of events that occur during a ship’s stay in port. It includes timings and descriptions of activities such as arrival, berthing, cargo operations, delays, and departure. The SoF is typically prepared by the port agent or the vessel’s representative and signed by all relevant parties including the ship’s master, the port authority, and the cargo interests.

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Why is the Statement of Facts important?

• Accurate Record-Keeping: The SoF provides an official timeline of port activities. This record is essential for all parties to understand what exactly happened during the ship’s stay.
• Basis for Laytime and Demurrage Calculations: Laytime (the allowed time for cargo operations) and demurrage (charges for delays beyond laytime) are calculated based on the events documented in the SoF. Any discrepancies or omissions can lead to disputes and financial losses.
• Dispute Minimization: A clear, precise, and mutually agreed SoF helps minimize conflicts between shipowners, charterers, and port operators by providing an objective account of events.
• Legal Evidence: In case of disputes, the SoF serves as an official legal document that can be used in arbitration or court proceedings.

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Why choose a Digital Statement of Facts?

Traditionally, the SoF has been recorded manually on paper, which can lead to errors, omissions, and delays in communication. Digital solutions are transforming this process by providing real-time, accurate, and verifiable records.

The Ship VRS offers a cloud based Digital Statement of Facts tool designed specifically for the shipping industry. Our solution allows for:

• Real-Time Data Entry: Capture events as they happen to ensure accuracy and completeness.
• Multi-Party Access: All stakeholders can access and verify the SoF, promoting transparency.
• Automated Reports: Generate standardized reports quickly, reducing administrative workload.
• Error Reduction: Minimize human errors with automated checks and validations.
• Dispute Prevention: By providing a clear, verifiable timeline, our tool helps prevent misunderstandings and disputes.

In conclusion, the Statement of Facts is a foundational document in shipping operations, crucial for transparency, financial accuracy, and legal protection. Leveraging digital technology like The Ship VRS’s digital SoF solution enhances these benefits, helping the maritime industry operate more efficiently and with greater trust.