Hochiminh City, 9 Aug.

, 2011

To: QBE
Attn: -
- Whom it may concern

From: THE PACIFIC INSPECTION J.S. CO. (PICO)

Director : Mr. Le Van Giang

E-mail : gianglv@picovn.com ; pico@hcm.fpt.vn

Subject: Bagged rice loading from Viet Nam & loss/ damage mitigation & prevention.

Dear Sirs,

We are pleased to offer PICO successful measures for loss/ damage preventing measures
for bagged rice loading & carrying.

Loss & shortage mitigation, prevention measures:

In order to mitigate, prevent any possible loss of bags during loading into vessel cargo holds,
we have to apply the triple checks, consisting of:
- 1st official tallying number of bags, rope slings & liftings:
A Pico team of tallymen, under the close control of a team leader, joins with other parties
at all the ship rails/decks throughout the loading for tallying, recording, and
countersigning the below:
o Number of bags passing shiprails into cargo holds; and
o Number of rope slings of bags passing shiprails into cargo holds; and
o Time of liftings of bags passing shiprails into cargo holds.
In way of :

- 2nd check by supervising & photographing throughout loading: another independent Pico
team stays on bridge and/or hatch decks for:
o Taking digital photographs of all liftings & rope slings of bags passing shiprails into
cargo holds (detect any discrepancy of lifting, or rope slings if any); and
o Recording the time of liftings, rope slings of bags passing shiprails into cargo holds.
In way of :
 Page 2

- 3rd check by vessel draft survey:

For dectecting considerable discrepancy if any, the total loaded weight of bagged rice is
also checked by initial & final ship draft surveys between Pico surveyor & Chief Officer.

Damage mitigation, prevention measures:

In order to mitigate, prevent any possible damage to cargo, one more Pico team is appointed
on barges, or the vessel cargo holds, or decks for the purposes of:
- Detecting all defects/ short comings of vessel cargo holds & hatch covers; and
- Recommending & supervising the proper dunnage, stowage, ventilation; proper care of
cargo in sea transportation; and
- Recommending & supervising the arrangement of roofings inside of all cargo hold for the
purpose of prevention/ mitigation of water condensation (ship sweat); and (*)
- Taking sample & checking cargo moisture and rejecting the over moisture cargo;
- Rejecting all visible damage bags such as tear, wetness, mould, dirty stain, etc

We trust that you will happy with our services.

Please fill free to contact with us.

Yours sincerely,
Director,

Le Van Giang

On behalf of The Pacific Inspection J.S.Co. (PICO)