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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

MES Delivers Bulk Carrier STH Athens

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 60,000 dwt type bulk carrier M.V. STH Athens (MES Hull No. 1898) at its Chiba Works on August 27,

Break Bulk in Rotterdam on the Way Up

The opening of a new break bulk terminal is one of the many developments and investments in the break bulk sector in the port of Rotterdam; a sector that has

Collaboration Helps Save 2 from Sinking Yacht

The U.S. Coast Guard, the Alpena Sheriff's Department and several good Samaritans are assisting two men aboard a 42-foot sailboat that began taking on water early

News

Sunken Towboat Lifted from Neches River

A towboat that sank in Texas' Neches River August 21, and caused a temporary closure of the waterway, was lifted out of the water Wednesday Evening. T&T Marine,

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

The Maritime Person of the Year

The Massachusetts Maritime Academy’s annual salute to ‘the person of the year’ this year spotlights McAllister Towing and Transportation Co. and its leadership team.

Insurance

Mariners Dread Port Calls

Seafarer social media site Crewtoo, part of KVH Industries, Inc., has published the results of its second Crewtoo Seafarers Happiness Index report detailing job satisfaction at sea.

Coast Guard Responds to Delaware River Grounding

The Coast Guard is overseeing salvage efforts Tuesday for a motor vessel aground on the Delaware River. The 328-foot Netherlands-flagged motor vessel, Bermuda Islander,

Marine Claims & Casualty Investigation Conference

HINODE Maritime Events is conducting the "Conference on Handling Marine Claims and Investigating Marine Casualties". According to the organisers, the program

P&I Clubs

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Coast Guard Responds to Delaware River Grounding

The Coast Guard is overseeing salvage efforts Tuesday for a motor vessel aground on the Delaware River. The 328-foot Netherlands-flagged motor vessel, Bermuda Islander,

Maritime Tribunal Rejects Plea to Free Italy's Marines

An international maritime tribunal on Monday rejected Italy's request that India provisionally release two marines accused of killing two Indian fishermen, a setback

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | 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: 1.7833 sec (1 req/sec)