Statements of Fact in Shipping: How They Protect Clients (And Vessel Agents)

Ask any vessel agent, and they’ll tell you—when things go south at the port, the first thing everyone looks at is the Statement of Facts. It’s the ultimate paper trail, the official record of a ship’s stay, and the one document that can make or break a dispute.

Miss a crucial timestamp? Your client could be on the hook for thousands in demurrage fees. Fail to document a delay properly? Suddenly, a claim from a cargo owner is harder to fight. And let’s not even talk about the chaos when cargo operations are misreported.

A Statement of Facts is more than routine paperwork. It is a crucial document that allows vessel agents to protect their clients. Done right, it’s a rock-solid defense against costly errors and disagreements. Done wrong? Well, let’s just say mistakes here have significant financial implications.

So, how do we make sure a SOF form is airtight? How do we get the exact documentation that keeps our clients safe? Let’s break it down.

What is a Statement of Facts?

A Statement of Facts is an official record that logs the entire timeline of a ship’s stay at port, including:

• Arrival and berthing times
• Start and completion of cargo operations
• Equipment malfunctions, weather conditions, or labor strikes
• Any delays impacting operations
• Final departure dates

Think of it as a play-by-play of the vessel’s time in port, written in chronological order. It is essential to know the specific form required by each port and make sure that all information is accurately documented. You can find this out by checking with the port authority of the location your vessel will be coming to port in.

How SOFs Protect Clients (and Vessel Agents) in Shipping

A well-prepared Statement of Facts actively protects clients from financial losses, legal disputes, and operational inefficiencies. But let’s not overlook one critical fact: a solid SOF form doesn’t just protect the client—it also protects us, the vessel agents.

When a dispute arises, or an invoice is questioned, the SOF serves as our shield. If a charterer claims a delay was due to mismanagement, or a terminal accuses the vessel of exceeding laytime, we need documentation to back up our records. Without it, we’re left relying on memory or incomplete logs, which can put both our credibility and our business relationships at risk.

Here’s a more specific look at how an SOF helps protect both entities:

Prevents Disputes About Delays

Discrepancies in shipping operations often lead to costly disagreements between parties—shipowners, charterers, cargo owners, and terminal operators. If a shipper challenges a cargo operations timeline or claims that delays were the vessel’s fault, the Statement of Facts serves as the official reference point.

Since the SOF is a legally binding document, it provides precise documentation that can prevent disputes before they escalate.

Learn more about specific documentation that is important to this process by reading our blog all about cargo manifests.

Backs Up Demurrage and Detention Claims

Demurrage and detention fees are some of the most common and frustrating costs in shipping. If a vessel is delayed due to terminal congestion, slow cargo handling, or customs clearance issues, the SOF provides essential evidence to support a claim for additional time allowances. Without a detailed SOF form, shipowners may end up paying for delays they had no control over.

For vessel agents, a clear SOF helps us avoid being blamed for demurrage charges that weren’t our fault. If a client accuses us of failing to keep operations on schedule, we can prove otherwise with a SOF that tracks every moment in port.

Tracks Port Performance for Future Voyages

Not all ports operate at the same level of efficiency. Some have chronic delays, slow cargo handling, or outdated equipment that affect a ship’s stay. SOFs provide valuable insight into port performance, allowing clients to make informed decisions about which ports are best for future calls and what to expect.

For vessel agents, this means we can proactively advise clients on which ports are more reliable, improving trust and strengthening our role as a valuable partner in their operations.

Prevents Unnecessary Fees and Financial Losses

A thorough SOF makes sure that shipowners, charterers, and cargo handlers are billed only for the actual time spent in port. This can prevent erroneous charges and costly delays in the future. By providing accurate information on cargo handling times, berth occupancy, and other port activities, SOFs help avoid unnecessary fees and financial losses for all parties involved.

What is a Vessel Agent’s Role in the Preparation of an SOF?

The accuracy of an SOF form depends entirely on how well we track and verify all the events during a ship’s stay. Here’s what goes into preparing an airtight statement:

1. Gathering Details from Multiple Parties

A vessel’s Statement of Facts isn’t created in isolation. It pulls data from a variety of sources, including:

• Terminal operators, who report on berth assignments and cargo operations.
• Stevedores, who track loading and unloading progress, including any delays.
• Port officials, who provide documentation on inspections, arrival and departure dates, and compliance checks.

Coordinating with all these parties can be challenging, especially when different groups report slightly different timestamps. That’s why it’s essential to keep detailed logs and confirm each entry before finalizing the SOF form. Utilizing digital tools like ACE manifests can help streamline reporting and ensure that all documentation is accurate and aligned with CBP requirements.

2. Tracking the Time Spent on Each Operation

Time tracking is one of the most critical aspects of preparing an SOF form. Every minute a ship spends in port has financial implications, and clients rely on vessel agents to document exactly how long each operation takes.

The most significant concern is calculating laytime, which determines whether a vessel has exceeded its allotted free time for cargo operations. If loading or unloading takes longer than expected, demurrage charges may apply, leading to disputes between shipowners and charterers. A small discrepancy—such as an incorrect timestamp for the completion of cargo operations—can lead to thousands of dollars in extra fees.

Additionally, tracking time accurately helps identify inefficiencies in port performance, which can be useful for clients planning future voyages.

3. Ensuring the SOF Form is Correct

Every SOF form must be completely accurate. Even minor errors, such as an incorrect cargo type or a misreported arrival time, can lead to:

• Legal disputes over delays or contractual obligations.
• Miscalculations in port fees and demurrage costs.
• Payment disputes between shipowners, charterers, and cargo stakeholders.

To prevent these issues, I make sure the SOF form is reviewed line by line, confirming that every statement matches the recorded events.

4. Verifying That All Events Occurred as Recorded

Accuracy is about making sure that everything recorded in the Statement of Facts reflects what actually happened. If a delay is noted, there should be a corresponding reason, whether it’s due to weather conditions, equipment failure, or labor strikes. If a ship had to pause cargo operations, the cause should be clearly documented.

Any discrepancies in the SOF can lead to disputes, especially when it comes to claims for demurrage or delays. I always cross-check entries with real-time logs, confirm timestamps with terminal and port authorities, and verify that every reported delay has a valid reason recorded in the SOF. A disputed statement can lead to penalties, contract disagreements, and unnecessary financial losses.

The bottom line is- a well-prepared Statement of Facts protects clients from unnecessary costs and legal headaches. Vessel agents must be meticulous in tracking ship’s stay details, verifying timestamps, and making sure the SOF is correct down to the last minute. Sounds tedious? Don’t worry, I have a solution for you to make it easier that I mention later on in this blog.

What Should be Included in a Statement of Facts?

We previously mentioned what a statement of facts includes above, but let’s take a deeper dive into its structure. While the exact format of an SOF form may vary from port to port, most follow a standardized approach.

Here’s what goes into a well-documented SOF:

Title and Identification

At the top, the document is clearly labeled as a “Statement of Facts” (SOF) to indicate its purpose. This makes sure that all involved parties immediately recognize it as an official record.

Parties Involved

An SOF typically lists the key stakeholders, including the shipowner, charterer, and port agent. It is usually prepared by the port agent or shipmaster and requires signatures from multiple parties to confirm accuracy. This includes:

• The master of the vessel
• The port agent
• A representative from the charterer, shipper, or receiver, depending on the cargo agreement

Having all relevant parties consistently sign off on the SOF form strengthens its role as an official record in case of disputes.

Cargo Details

This section provides specifics about the cargo, including the port of loading or port of discharge and the cargo type and its total quantity Cargo documentation must be precise, as errors in this section can lead to discrepancies with other shipping records, such as the bill of lading.

Dates and Times

Time tracking is one of the most critical components of an SOF, as it affects laytime calculations and potential demurrage claims. The following timestamps are recorded:

• Arrival and departure dates and times
• Time spent at berth
• Any recorded delays or operational interruptions

Without this data, it becomes difficult to prove whether delays were caused by port congestion, labor shortages, or external factors.

Cargo Operations

Loading and unloading cargo operations are documented in detail, including start and completion times, notes on any interruptions or delays, and equipment breakdowns or labor stoppages that may have impacted efficiency

This section is critical for vessel agents, as it helps determine whether laytime calculations are accurate and if demurrage charges are justified.

Weather Conditions

Weather plays a major role in cargo operations, and any weather conditions that impact efficiency must be recorded. Heavy winds, storms, or rough seas can slow down or halt loading and unloading activities, affecting both vessel turnaround time and cost.

Tugboat Usage

If tugboats assisted with maneuvering the vessel, their arrival and departure times are included. While this detail may seem minor, it’s important for tracking port service fees and verifying whether external assistance contributed to any delays.

Other Relevant Information

Finally, any additional details that may influence laytime calculations or potential demurrage disputes are included. This could cover:

• Customs inspections that slowed operations
• Equipment malfunctions or mechanical failures
• Any incidents that may have affected the vessel’s efficiency during its stay

By capturing this information, an SOF provides a comprehensive written record of a vessel’s activity, serving as an invaluable tool for both port agents and clients.

Common Challenges of an SOF

Preparing a Statement of Facts may seem straightforward—track the events, log the timestamps, and file the document. But anyone who has worked in shipping long enough knows that it’s rarely that simple.

Each port has its own processes, different stakeholders provide conflicting information, and unexpected delays can throw everything off schedule. A single missing detail or inaccurate entry in the SOF form can lead to serious financial implications, making it critical for vessel agents to navigate these challenges effectively.

Here are some of the most common challenges vessel agents face when preparing an SOF:

Incomplete or Conflicting Data from Multiple Parties

A Statement of Facts requires input from a wide range of sources, including port officials, terminal operators, stevedores, and vessel crew. However, these parties don’t always communicate efficiently, and their reports can contain discrepancies. One group may record a departure date at 10:00 AM, while another logs it at 10:30 AM. Similarly, a terminal may mark cargo operations as completed, but the vessel’s crew reports ongoing work.

Human Error in Manual SOF Preparation

Despite advancements in port technology, many SOF forms are still prepared manually, increasing the risk of errors. Handwritten reports, verbal communications, and outdated spreadsheets can lead to missing details, incorrect timestamps, and misreported cargo types.

Leveraging modern solutions like VECS (Vessel Entrance & Clearance System) can help streamline documentation and reduce the likelihood of costly mistakes.

Last-Minute Changes and Unexpected Delays

Shipping is unpredictable. A vessel may be scheduled to begin cargo operations at a certain time, only for sudden weather conditions to force a delay. Port congestion, equipment malfunctions, labor strikes, and customs holdups can all create last-minute changes that must be reflected in the Statement of Facts.

Also note that staying compliant with CBP regulations and ensuring accurate AES filings is critical in such situations—AES filings & CBP compliance can help vessel agents navigate these challenges efficiently.

Lack of Standardization Across Ports and Clients

Not all ports use the same format for SOF forms, and different clients may have their own reporting preferences. This lack of standardization makes it difficult for vessel agents to maintain consistency across different port calls.

Limited Time to Verify and Submit the SOF

A vessel agent’s workload is demanding, and preparing a SOF often happens under tight deadlines. By the time the vessel departs, the Statement of Facts must be finalized and signed off by the necessary parties. Rushing the process can lead to oversights, missed events, and inaccuracies that cause problems later.

A Statement of Facts is only as good as the accuracy of its information. Incomplete details, human error, unexpected delays, and a lack of standardization across ports all contribute to the challenges vessel agents face when preparing a SOF.

How to Improve an SOF with Automation

The challenges of preparing a Statement of Facts are clear—conflicting data from multiple parties, manual errors, last-minute delays, inconsistent formats, and tight deadlines. Each of these issues puts vessel agents at risk of disputes, financial losses, and operational inefficiencies.

This is where automation changes the game. Instead of relying on manual logbooks, spreadsheets, and scattered emails, vessel agents can use digital tools like Base to create structured SOF forms, reducing errors and keeping records accurate. Here’s how Base solves the biggest SOF challenges:

• Eliminates Data Discrepancies and Conflicting Reports: One of the biggest frustrations for vessel agents is getting different timestamps from terminal operators, stevedores, and port officials. With Base, real-time logging keeps all events recorded with accurate timestamps, reducing the need to chase down missing details.
• Reduces Human Error in SOF Preparation: Handwritten notes and manual data entry increase the risk of missing key events or entering incorrect timestamps. Base replaces outdated methods with structured, automated SOF templates, cutting down on human mistakes.
• Adapts to Last-Minute Changes and Unexpected Delays: Sudden delays from weather conditions, equipment malfunctions, or labor strikes can throw off a vessel’s timeline. With Base, these changes update instantly, keeping the Statement of Facts accurate.
• Standardizes SOF Formats Across Ports and Clients: Every port and client has different expectations for an SOF form, making standardization a major challenge. Base provides customizable templates that match each port’s requirements.
• Speeds Up SOF Verification and Submission: Tight deadlines often force vessel agents to rush through an SOF before the ship’s departure. Base streamlines the process by automating data collection and reducing the need for last-minute verification.

With Base, vessel agents can create SOF forms that are correct, reliable, and ready when needed, helping both clients and vessel agents avoid disputes, unnecessary fees, and operational inefficiencies.

Conclusion on Statement of Facts

Whether it’s tracking cargo operations, settling claims, or verifying delays, an accurate SOF form is what keeps vessel agents and their clients protected.

Without it, disputes can escalate, invoices can be challenged, and unnecessary fees can pile up. Every event matters, every detail counts, and every timestamp has significant financial implications. As vessel agents, we know that getting the statement right is more than just a best practice.

But preparing an SOF manually comes with challenges. Conflicting reports, different bill of lading information, last-minute changes, and human errors can make accuracy difficult to achieve. That’s why leveraging automation tools like Base makes all the difference. When you replace outdated processes with updated documentation, vessel agents can spend less time chasing missing information and more time focusing on keeping operations running smoothly.

Key Takeaways

• A Statement of Facts is a detailed official record of a ship’s stay in port.
• Vessel agents must track cargo operations, weather conditions, and delays accurately.
• A correct and thorough SOF protects clients from disputes and unnecessary costs.
• Automation tools like Base help vessel agents improve precise documentation and reduce manual errors.

Frequently Asked Questions