4th Maritime Congress Preventative Measures to...

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

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

Cargo Water Damage

Leaking Hatch Covers

Ultrasonic Hatch Cover Testing

Water Ingress Via Air Vents

Leaking Ballast Tanks

Water Ingress Via Bilge System

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

Infestation

Heat Damage to Agricultural Products

Problematic Cargoes - Coal

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


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 Claims

General Cargo

■ General cargo damage

■ Water damage

■ Cargo damage

■ Cargo stowed on deck

■ Inadequate lashings

■ Poor stowage and securing

■ Shortage

■ Bagged commodities

Water Damage

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

Inadequate Lashings

Poor Stowage and Securing of Cargo

General Cargo – Lashings / Seafastenings


■ Keep records of all lashing calculations to help defend any

subsequent claims


■ Take numerous photos of the stowage, dunnaging and lashing

arrangements to help defend any subsequent claims

Shortage – Bagged Commodities - Tallying

Shortage – Bagged Commodities - Pilferage

Thank You

Any Questions?

www.westpandi.com

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