London P&I Issues Warning on Bagged Rice Cargoes

Press Release
Thursday, March 28, 2013

The London P&I Club has advised shipowners to seek advice before loading bagged rice cargoes in view of the inherent risks associated with the trade and an increase in the severity of claims in recent years.



In the latest issue of its StopLoss Bulletin, the club notes that poor freight markets have seen an increase in the number of owners employing their ships in the bagged rice trades. It says the size of individual consignments being shipped from southeast Asia to the Middle East and sub-Saharan Africa has also increased, magnifying inherent risks and contributing to an elevation in the severity of claims notified to the club. Moreover, owners often have to settle claims in the first instance before seeking a contribution from charterers, where possible.


 
The club says the fact that bagged rice is usually shipped nowadays on conventional bulk carriers up to supramax size introduces a greater practical challenge for owners. “In addition,” it notes, “there has been little improvement in efficiencies at ports of loading and discharge. The combined effect of port congestion and lengthy voyages from the Far East to West Africa often results in cargoes remaining on board for prolonged periods.



“Prolonged storage onboard increases the risk of condensation and damage where there is a high pre-shipment moisture content or poor stowage or ventilation during the voyage. Certificates of quality upon shipment usually record pre-shipment moisture levels and may provide scope to rely on an inherent vice defence. However, inadequate stowage or ventilation will increase owners’ exposure to bill of lading claims.



“Handling damage and cargo shortages also tend to be endemic in this trade. In some ports, the stevedores may be in a monopoly position, meaning there is no competition, and ship operators effectively have no choice. Stevedores are usually unskilled and provided with only rudimentary equipment for slinging bagged cargo loads. They often receive bonuses for prompt discharge, with the result that preservation of the cargo can be sacrificed in the interests of maintaining a quicker cargo outturn.



“Pilferage at some West African ports is also widespread. In addition, owners can encounter difficulties with inaccurate tallies. Both loading and discharging operations require careful supervision, including performance of tallies and cross-checking figures with other interested parties. It is usually best to appoint independent surveyors who can dedicate their time to these tasks. Sealing cargo-hold openings and performing draft surveys may also assist in defending shortage claims.”



The club urges owners entering this trade to give careful consideration to the allocation of risk under the relevant charter party, as well as to the suitability of the ship and the capabilities of the hold ventilation system. It says members should notify the club in advance of loading rice cargoes to discuss appropriate loss prevention measures.”

 

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

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Maritime Safety

NZ Report: Human Error to Blame for Rena Grounding

New Zealand's Transport Accident Investigation Commission (TAIC) published its final report into the grounding of containership Rena in October 2011. The TAIC’s

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

NOAA: US to See More Floods from Sea Level Rise

Most of U.S. coast may see 30 or more days a year of floods up to 2 feet above high tides. By 2050, a majority of U.S. coastal areas are likely to be threatened

Insurance

DSG Marine Asks Shipowners to Consider Fixed Premium P&I Cover

P&I Insurance Seminar for Owners and Charterers held in Mumbai DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I Facility,

US Obamacare Impacts the Global Marine Industry

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
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: 0.2090 sec (5 req/sec)