Standard Cargo

Bagged Cargo Claims

Setting the Standard for Service
andSecurity
October 2012

With no sign of improvement in market conditions and in an effort to secure the best
freight rates, a number of owners are trading their ships to ports and carrying cargo
for which the ship may not be ideally suited or their crew sufficiently experienced.
In particular, the club has seen an increase in the number of ships carrying bagged
cargo to ports where the incidence of stevedore rough handling and pilferage are high.
The carriage of bagged cargo is a risky trade which most owners have historically
chosen to avoid. The increase in voyages to these ports has led to a rise in the
number of claims for the club, which may impact upon rates at the next renewal.

The clubs investigations of these incidents at the discharge port have found:
loading figures that do not match discharge figures, resulting in cargo shortfall
wet and mouldy cargo showing the effect of condensation damage
contaminated cargo, such as cargo having leaked from bags and/or being mixed Ian Price, Director of Loss Prevention
with hold dirt +44 20 3320 8807
damaged and/or empty cargo bags ian.price@ctplc.com
rips to cargo bags caused by stevedores hooks

Members whose ships are trading with bagged cargo have a greater exposure to Ian joined Charles Taylor in September 2012
cargo damage claims. as the director of loss prevention for the
Standard Club.
To reduce the risk of cargo damage, the following loss prevention checks are
recommended for the master:
test hatch cover water tightness before loading and monitor the effectiveness of Ian is a master mariner with a total of
securing arrangements during the voyage 40 years experience in the shipping
test hold bilge suctions and check effectiveness of non-return valves industry. He commenced his seagoing
thoroughly clean the hold bilge wells, which should then be covered with
burlap and sealed
career in 1971 as a navigating cadet with
conduct an accurate cargo tally at the load port a major British shipping company, being
ensure the cargo quantity, as agreed between shore-based and ship tally, promoted through the ranks to Master
is accurately represented on mates receipts and bills of lading prior to continuing his career ashore in 1987.
ensure stevedores utilise correctly designed bag hooks and do not roughly
handle the cargo Whilst employed ashore, he has worked
collection of spilt cargo promptly for re-bagging predominately in the field of marine
ensure hatch covers are fully closed prior to the onset of rain operations and ship management, in various
monitor the dew point of the cargo hold during the voyage worldwide locations, and has held positions
ensure correct ventilation management throughout the voyage
conduct frequent visual inspections of cargo whilst the ship is in transit or at anchor as port captain, marine/operations
always follow the enclosed space entry procedures before entering a cargo hold superintendent, operations manager and,
ensure there is effective security and theft avoidance for the last 11 years, managing director
for one of the worlds foremost ship
These procedures, if followed, should go far to prevent cargo damage. However,
should members suspect a problem during loading or en route to the discharge management companies. Through both his
port, they should immediately contact the club for assistance. seagoing and shore based experience Ian
has extensive knowledge across the range
of tanker, dry bulk and liner trades.
 Standard
Cargo
Director of Claims
Brian Glover

Director of Loss Prevention

Ian Price

Surveyors, London Surveyors, Singapore Team Administrator

Chief Surveyor Yves Vandenborn Christine Mills
Eric Murdoch Christophe Vaes

Senior Surveyor
Julian Hines

Marine Surveyor
Andrew Morris

Standard Safety,
STANDARD SAFETY
SETTING THE STANDARD FOR SERVICE AND SECURITY
Navigation special edition
June 2012 NAVIGATION
SPECIAL EDITION
June 2012
navigational
IN THIS ISSUE
2 Training standards

incidents and
3 Bridge work

Navigational incidents and

4 The Collision Regulations (COLREGS)
5
6
Keeping a lookout COLREGS Rule 5
Fatigue collisions are

Recent
6
7
Electronic Chart Display and Information System (ECDIS)
Pilotage issues increasing
8 Other navigational concerns

collisions are increasing

9 Navigational audits
9 Conclusion
This issue of Standard Safety is focused solely on navigation. Claims
relating to poor navigation are the largest single cause of claims in
terms of cost, and the clubs experience in recent years provides
The club has investigated the number and cost of navigational
incidents over the past ten years and the facts are alarming at many
levels. In the past five years, there have been 85 claims of over $1m of
which over 50% were directly related to navigational issues. Of these
claims, 42% were due to collisions, 32% were due to damaging fixed
and floating objects such as buoys, berths, breakwaters, mooring
dolphins and cranes, and 15% were due to ships grounding. Of these
major incidents, 16% occurred when the ship was under pilotage.
This is a significant figure and the inference could be that either the

Other navigational concerns

Publications
ample evidence of this. A number of factors are investigated using pilots are not well trained or the master and the bridge teams are not
case studies to illustrate the problems and consider what can be done properly monitoring what is happening when under pilotage, or a
to curb the increasing frequency of navigational incidents. There are combination of both. Only occasionally is the cause of a navigational
many such case studies available, some of which are published by incident a mechanical failure.
Flag States and are in the public domain. These, we believe, should
form part of a companys loss prevention programme since it is far
better to learn from the mistakes of others than experience them
yourself. The biggest risk that a shipowner faces is a major navigational

Navigational audits
incident: not only can it result in fatalities and pollution but can have a
substantial impact on the reputations of those concerned.

Job: 15843 Standard Safety - Seedcake_AW Proof: 06 Proof Read by:

Operator: Phil Date: October 19, 2011 12:52 PM
Server: studio 2 Set-up: neil: from previous First Read/Revisions

Standard Cargo, Standard Cargo,

October 2011
STANDARD CARGO
SETTING THE STANDARD FOR SERVICE AND SECURITY
Carriage of Seedcake March 2011
STANDARD CARGO
SETTING THE STANDARD FOR SERVICE AND SECURITY
Bulk Cargoes
CARRIAGE OF
SEEDCAKE
October 2011 BULK Cargoes
HoLD PreParaTIoN hold preparation and cleaning
aND CLeaNINg
Chris Spencer:
Telephone:
Director of Loss Prevention
+44 20 3320 8807
Chris Spencer: Director of Loss Prevention
Telephone: +44 20 3320 8807

E-mail:
IN THIS EDITION
2 What is seedcake?
2 Types of seedcake
4 Self-heating and spontaneous combustion
March 2011
What is Seedcake
chris.spencer@ctcplc.com E-mail: chris.spencer@ctcplc.com INTRODUCTION
As part of the Loss Prevention programme, the Standard
Club publishes Standard Cargo series as a means of focusing on
best practices in the carriage of cargo.
This publication is aimed at helping masters, ships cargo officers,
shore superintendents and chartering managers understand the
requirements of hold preparation before loading bulk cargoes. Such

SMS
awareness will assist in preventing claims for cargo loss, cargo

Documentation
4 Sources of heat in the hold contamination, additional survey costs, delay to ships, and in
6 Documentation preventing disputes over offhire and charterparty issues.

7 Hold cleanliness Preparation of a cargo hold is not just a question of sweeping, cleaning
or washing down the hold. There are a number of matters to consider,
7 Loading, stowage and segregation
and failing to adhere to good practice can result in substantial claims.
8 Hatch covers A lack of knowledge, often originating in chartering or commercial
^ Seedcake cargo with water damage departments, can also be the underlying cause of major claims.

Maintenance
8 Ventilation

Carriage in containers
8 Hazards of oxygen depletion INTRODUCTION The first reference source for the carriage of bulk cargo should be the
The Standard Club loss prevention programme focuses on ^ Coal loading International Maritime Solid Bulk Cargoes Code (IMSBC), issued by
9 Discharge best practice to help avert those claims that are considered avoidable. IMO. It was revised and reissued in 2009. It is a requirement that a
This edition of Standard Cargo addresses the safe and correct carriage copy of the Code should be onboard a bulk carrier, and the revised
9 Emergency procedures
of seedcake cargo. Due to their oil and moisture content, this cargo Code is mandatory under SOLAS from 1 January 2011. Nothing in
9 Duties of the cargo officer can present a significant fire risk due to self-heating and spontaneous this Standard Cargo guide is intended to differ from the advice given
combustion therefore; the procedures described here should be in the Code, and the advice given in the Code should always be the
10 Carriage in containers first point of reference. It has not been possible to include preparation
followed in order to prevent such casualties.

Hold cleanliness Hold cleaning, washing down

10 Distillers Dried Grain and DDG with Solubles advice here for all bulk cargo, and the IMSBC should therefore be
Members should refer to the latest edition of the IMO International consulted whenever any question arises.
11 P&I cover Maritime Solid Bulk Cargoes (IMSBC) Code, which provides the
12 Appendix 1 Details of the properties, loading and carriage statutory requirements for carriage and which supersedes any advice
given in this document. The IMSBC Code, which was mandatory
requirements for each type of seedcake from 1 January 2011, is a revision of the IMO BC Code and should
14 Appendix 2 Requirements of the IMSBC Code for the loading be the first point of reference for guidance on the carriage of solid
bulk cargo.
of dry bulk cargoes

P&I cover and drying equipment

14 Acknowledgements
15 Form for cargo information for solid bulk cargo
^ Coal discharge

Requirements for cargoes

^ Washing down a cargo hold

15843 Standard Safety - Seedcake_AW.indd 1 19/10/2011 13:28

Case studies

The Standard Cargo is published by the managers London agents:

Charles Taylor & Co. Limited
Standard House, 1213 Essex Street, London, WC2R 3AA, UK Follow us on Twitter #StandardPandI
Registered in England No. 2561548
Telephone: +44 20 3320 8888 Emergency mobile: +44 7932 113573 The information and commentary herein are not intended to amount to legal or
technical advice to any person in general or about a specific case. Every effort
Email: pandi.london@ctplc.com Website: www.standard-club.com is made to make them accurate and up to date. However, no responsibility is
assumed for their accuracy nor for the views or opinions expressed, nor for any
Please send any comments to the editor: Ian Price consequence of or reliance on them. You are advised to seek specific legal or
Email: ian.price@ctplc.com Telephone: +44 20 3320 8893 technical advice from your usual advisers about any specific matter.