P&I Claims Increase for Bagged Rice Shipments

By Eric Haun
Monday, June 16, 2014

According to estimates, of the nearly 475m metric tons of rice produced globally in 2013, the largest producers were China (30% of the total) and India (22%). However, most of the rice produced in these countries is consumed domestically. By contrast, the largest exporters of rice since 2008 have been Thailand, Vietnam, India and the US (at just under 10%). Overall, it is reckoned that only 5-6% of global rice production is transported internationally. Nevertheless, even this figure represents a significant volume of global trade.

In its latest loss prevention initiative, the American Club has published Transport Guidance for Bagged Rice, running to 70 pages, supplemented on the club’s website by animations and photographs by IDESS IT, Subic Bay, which works closely with the club on loss prevention matters.

Early editions of Lloyd’s Survey Handbook (circa 1950s) noted that rice, especially new crops, is liable to heat and sweat, with consequent loss in weight, also being susceptible to taint, and liable to damage by moisture due to improper ventilation.

The American Club’s new publication points out that, traditionally, rice was carried as break-bulk cargo on general cargo vessels, where the use of permanent wooden dunnage was designed to ensure proper ventilation. More recently, of course, we have seen containerized cargoes of rice.

As global demand for food has risen, most rice shipments are now made in bagged form on board traditional bulkers, which is the primary focus of this guidance.

Cargo claims have comprised, on average, about 25% of the American Club’s total exposure. Within this category, bagged rice claims in regions such as West Africa have topped the list of cargo claims met by the club’s members. While the club has pioneered innovative actions such as the use of the anti-suit injunction mechanism to significantly reduce and thwart the ability of cargo interests to present fictitious and exaggerated claims involving bagged rice and other cargoes, preventative measures are still the most useful tools against these potential exposures.

Transport Guidance for Bagged Rice draws upon the knowledge and experience which the club has accumulated from its own claims, from those who are engaged in the operation and/or chartering of ships for the carriage of bagged rice, and from surveyors’ professional experience on behalf of P&I insurers, and from owners and charterers alike.

The publication has nine sections, with three appendices covering a list of definitions, a list of important documents to be kept and maintained, and a sample of a bill of lading.

american-club.com
 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Week's Ocean-Going Shipbuilding Orders Sparse

Despite some media reports of more significant ordering, there is only one firm shipbuilding order to report in the drybulk sector, according to the latest Clarkson Hellas S&P Weekly Bulletin,

Star Bulk to Acquire 34 Drybulk Vessels

Star Bulk entered into a definitive agreement with Excel Maritime Carriers Ltd., and as a result, will acquire 34 drybulk vessels for an aggregate of 29.917 million

Russian Food Import Ban: Trucks Lose, Shipping Wins

Team Niinivirta, a Finnish family-run transportation firm, turned 60 this year, but its third-generation managers now don't know if the business will see Christmas,

News

Update to Fire Damage to Australian Patrol Boat

Armidale Class Patrol Boat HMAS Bundaberg suffered significant damage due to a fire which occurred on Monday, August 11, 2014 in Brisbane. The boat was undergoing

Water Monitoring to Continue at Western Gulf Ports

A water monitoring network that helps keep port traffic moving is the responsibility of the Conrad Blucher Institute (CBI) for Surveying and Science at Texas A&M University-Corpus Christi.

Green Marine, ACPA Partner to Reduce Environmental Footprint

Green Marine and the Association of Canadian Port Authorities (ACPA) have entered into a Memorandum of Understanding with the goal of jointly expanding efforts

Insurance

'Double Jeopardy – Trial by Media, Trial by Law' London Opening

BIMCO notes that the highly acclaimed "Double Jeopardy - trial by media, trial by law" first showcased at the BIMCO AGM in Dubai earlier this year is to be brought

HK's COSCO International Reports Strong Profit Growth

For the  six months ended 30th June 2014, shipping services provider COSCO International has announced that its 2014 Interim Results show strong profit growth with Net Profit up 45% YOY.

American Club Issues Steel Cargo Warning

The American P&I Club has updated its advice to members on the handling of steel cargoes. It has done so in consequence of some recent cases where the absence of

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0939 sec (11 req/sec)