Preventative Measures to Mitigate against Dry Cargo Claims 4 th Maritime Congress Szczecin, 8 th June 2016 Capt. Simon Rapley
Preventative Measures to
Mitigate against Dry Cargo
Claims
4th Maritime Congress
Szczecin, 8th June 2016
Capt. Simon Rapley
Introduction
■ Simon Rapley of the West of England P&I Club’s Loss
Prevention Department
■ Master Mariner, ex. Ship’s Captain
■ 30 Minute presentation
■ Preventative measures to mitigate against dry cargo claims
■ Bulk cargo claims
■ General / project / container cargo claims
Number of Claims by Type – Typical Pattern
Collision/FFO/Grounding 40%
Cargo 25% Injury/Illness
20%
Other
5%
Pollution
10%
Dry & Wet Cargo Claims
■ Total cost of all cargo claims 2015/2016: approximately
US$ 16,000,000
■ Total number of all cargo claims files opened: 1,600
■ Typical dry bulk cargo claims:
■ USD 640,000 solid bulk cargo self-heating issues
■ USD 450,000 damage to corn in bulk
■ USD 240,000 damage to trailers on a RORO
■ USD 235,000 shortage of 280t of DAP
■ USD 180,000 damage to a steel cargo
Bulk Cargo Claims
■ Water damage
■ Contamination
■ Infestation
■ Heat damage
■ Problematic cargoes
■ Shortage
Cargo Water Damage
■ The principal sources of cargo water damage
■ Leaking hatch covers
■ Water entering the hold via air vents
■ Cracks / holes in ballast tanks surrounding cargo holds
■ Cracks / holes in ballast tank vent and sounding pipes passing through
holds
■ Leaking ballast tank manhole cover seals
■ Water entering the hold via the bilge line
■ Condensation (sweat), forming on the cargo or ship’s structure
Ship and Cargo Sweat
■ Sweat can form on cargo or the ship’s structure when there is a
temperature differential between load and discharge port
■ Temperatures and dew points have to be carefully measured
and ventilation controlled to prevent the formation of sweat
■ General Rules –
■ Cold to Warm – Don’t ventilate
■ Warm to Cold – Ventilate
Cargo Contamination
■ Cargo contamination can occur due to:
■ Ineffective cleaning of the holds between cargoes – take particular care
with areas on top of framing that may be difficult to reach, such as under
the hatch coaming and cross decks - entire fertilizer cargoes have been
rejected when grain residue from a previous cargo has been found
■ Rust and flaking / blistered paintwork
■ Contamination from ashore, e.g. bag remnants
Problematic Cargoes – Nickel Ore
November 2010 - “Nasco Diamond” – Built: 2009, GT: 32,900,
Class: CCS, Flag: Panama. Loaded in Indonesia. Sank off Japan. 5
rescued, 20 lost
Problematic Cargoes – Nickel Ore
December 2010 - “Hong Wei” – Built: 2001, GT: 28,000, Class: NK,
Flag: Panama. Loaded in Indonesia. Sank off northern
Philippines. 16 rescued, 8 lost
Shortage Claims – Errors in Draught Surveys
Un-factored weights
■ Often surveyors forget to include
the bilge water in the machinery
spaces, chain lockers etc. which
can be substantial
■ Sediment can accumulate in the
double bottom tanks of vessels
regularly ballasting in rivers or
estuaries. The extra weight can
give rise to an apparent increase
in the quantity of cargo onboard
The Effect of Squat on Draught Surveys
■ Squat occurs when a vessel has limited under keel clearance and there
is water flowing past the hull, such as at a river berth
■ The vessel will then be subject to a change of trim and bodily sinkage,
the magnitude of these depending on:
■ The underkeel clearance
■ The cross section of the hull in relation to the cross section of the river
(blockage factor)
■ The shape of the hull – full form vessels being affected more
■ The speed of the water flow
■ It is difficult to quantify the actual sinkage and change in trim for any
given condition
■ Full form vessels such as OBOs will trim by the head, fine line vessels
will trim by the stern
■ A passing vessel may exacerbate the problem
Further Factors Affecting Draught Survey Accuracy
■ Inaccuracies in the hydrostatic data and the tank sounding tables,
these may be calculation errors or due to subsequent changes to the
ship’s structure
■ Un-pumpable / unaccounted for ballast if the vessel is down by the
head (bow)
■ Leaking tank valves; tanks that are overflowed during cargo
operations may leak prior to the final draught survey
■ Moisture migration to the cargo hold bilges while on passage
■ Unsymmetrical hull deflection – more likely on smaller loaded
vessels due to the proportionally larger engine room, pushing the
location of maximum sag forward of midships
Further Factors Affecting Draught Survey Accuracy
■ Set in hull shell plating between the
upper and lower ballast tanks on
older vessels can lead to actual
displacements less than shown in
the hydrostatic data for a given load
draught (therefore less cargo
onboard than expected)
■ The position of the hatch covers can
affect the hull deflection, particularly
on small vessels where hatch
covers, when open, may be stowed
at one or both ends of a single hold.
Ideally the hatches should be closed
for all draught surveys
General Cargo
■ General cargo damage
■ Water damage
■ Cargo damage
■ Cargo stowed on deck
■ Inadequate lashings
■ Poor stowage and securing
■ Shortage
■ Bagged commodities
Cargo Damage
■ Pre–existing damage should be carefully noted on the Mate’s
Receipts and Bills of Lading
■ Cover may be prejudiced if the Bill of Lading knowingly contains an
incorrect description of the cargo condition
■ Letters of Indemnity (LOI) for pre-existing damage should not
be accepted as the use of an LOI will prejudice cover
■ Where bags, crates, bales of cargo etc. that are presented for
loading are damaged, or are damaged by stevedore handling,
these should be rejected and replaced with sound cargo
Cargo Stowed on Deck
■ Cargo must be suitable for stowage on deck
■ Contract of carriage must specify that the cargo can be carried
on deck
■ Contract of carriage must exempt the carrier from liability for
cargo loss or damage
or
■ Carrier has rights, immunities, limitations under the Hague,
Hague – Visby (specifying deck cargo) or Hamburg Rules
■ Check with Underwriters first to ensure cover is in place
General Cargo – Lashings / Seafastenings
■ Keep records of all lashing calculations to help defend any
subsequent claims
General Cargo – Lashings / Seafastenings
■ Take numerous photos of the stowage, dunnaging and lashing
arrangements to help defend any subsequent claims