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
with hold dirt
damaged and/or empty cargo bags
rips to cargo bags caused by stevedores hooks
Members whose ships are trading with bagged cargo have a greater exposure to
cargo damage claims.
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
securing arrangements during the voyage
test hold bilge suctions and check effectiveness of non-return valves
thoroughly clean the hold bilge wells, which should then be covered with
burlap and sealed
conduct an accurate cargo tally at the load port
ensure the cargo quantity, as agreed between shore-based and ship tally,
is accurately represented on mates receipts and bills of lading
ensure stevedores utilise correctly designed bag hooks and do not roughly
handle the cargo
collection of spilt cargo promptly for re-bagging
ensure hatch covers are fully closed prior to the onset of rain
monitor the dew point of the cargo hold during the voyage
ensure correct ventilation management throughout the voyage
conduct frequent visual inspections of cargo whilst the ship is in transit or at anchor
always follow the enclosed space entry procedures before entering a cargo hold
ensure there is effective security and theft avoidance
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
port, they should immediately contact the club for assistance.

Ian Price, Director of Loss Prevention

+44 20 3320 8807
ian.price@ctplc.com

Ian joined Charles Taylor in September 2012

as the director of loss prevention for the
Standard Club.
Ian is a master mariner with a total of
40 years experience in the shipping
industry. He commenced his seagoing
career in 1971 as a navigating cadet with
a major British shipping company, being
promoted through the ranks to Master
prior to continuing his career ashore in 1987.
Whilst employed ashore, he has worked
predominately in the field of marine
operations and ship management, in various
worldwide locations, and has held positions
as port captain, marine/operations
superintendent, operations manager and,
for the last 11 years, managing director
for one of the worlds foremost ship
management companies. Through both his
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
Eric Murdoch

Yves Vandenborn
Christophe Vaes

Christine Mills

Senior Surveyor
Julian Hines
Marine Surveyor
Andrew Morris

STANDARD SAFETY
SETTING THE STANDARD FOR SERVICE AND SECURITY

NAVIGATION
SPECIAL EDITION

June 2012

IN THIS ISSUE

Recent
Publications
Job:
15843 Standard Safety - Seedcake_AW
Operator: Phil
Date:
Server: studio 2
Set-up:

SETTING THE STANDARD FOR SERVICE AND SECURITY

October 2011

CARRIAGE OF
SEEDCAKE
Chris Spencer:
Telephone:
E-mail:

Director of Loss Prevention

+44 20 3320 8807
chris.spencer@ctcplc.com

IN THIS EDITION

What is seedcake?

Types of seedcake

Self-heating and spontaneous combustion

Sources of heat in the hold

Documentation

Hold cleanliness

Loading, stowage and segregation

Hatch covers

Ventilation

Hazards of oxygen depletion

Discharge

Emergency procedures

Duties of the cargo officer

10
10
11

Training standards
Bridge work

The Collision Regulations (COLREGS)

Keeping a lookout COLREGS Rule 5

Fatigue

Electronic Chart Display and Information System (ECDIS)

Pilotage issues

Other navigational concerns

Navigational audits

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
ample evidence of this. A number of factors are investigated using
case studies to illustrate the problems and consider what can be done
to curb the increasing frequency of navigational incidents. There are
many such case studies available, some of which are published by
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
incident: not only can it result in fatalities and pollution but can have a
substantial impact on the reputations of those concerned.

navigational
incidents and
collisions are
increasing
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
pilots are not well trained or the master and the bridge teams are not
properly monitoring what is happening when under pilotage, or a
combination of both. Only occasionally is the cause of a navigational
incident a mechanical failure.

Carriage in containers
Distillers Dried Grain and DDG with Solubles
P&I cover

12

Appendix 1 Details of the properties, loading and carriage

requirements for each type of seedcake

14

Appendix 2 Requirements of the IMSBC Code for the loading

of dry bulk cargoes

14

Acknowledgements

15

Form for cargo information for solid bulk cargo

^ Seedcake cargo with water damage

INTRODUCTION
The Standard Club loss prevention programme focuses on
best practice to help avert those claims that are considered avoidable.
This edition of Standard Cargo addresses the safe and correct carriage
of seedcake cargo. Due to their oil and moisture content, this cargo
can present a significant fire risk due to self-heating and spontaneous
combustion therefore; the procedures described here should be
followed in order to prevent such casualties.
Members should refer to the latest edition of the IMO International
Maritime Solid Bulk Cargoes (IMSBC) Code, which provides the
statutory requirements for carriage and which supersedes any advice
given in this document. The IMSBC Code, which was mandatory
from 1 January 2011, is a revision of the IMO BC Code and should
be the first point of reference for guidance on the carriage of solid
bulk cargo.

Standard Cargo,
Carriage of Seedcake
October 2011
What is Seedcake
Documentation
Carriage in containers
Hold cleanliness
P&I cover

STANDARD CARGO
SETTING THE STANDARD FOR SERVICE AND SECURITY

March 2011

Chris Spencer: Director of Loss Prevention

Telephone:
+44 20 3320 8807
E-mail:
chris.spencer@ctcplc.com

BULK Cargoes
HoLD PreParaTIoN
aND CLeaNINg
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
awareness will assist in preventing claims for cargo loss, cargo
contamination, additional survey costs, delay to ships, and in
preventing disputes over offhire and charterparty issues.
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,
and failing to adhere to good practice can result in substantial claims.
A lack of knowledge, often originating in chartering or commercial
departments, can also be the underlying cause of major claims.

^ Coal loading

The first reference source for the carriage of bulk cargo should be the
International Maritime Solid Bulk Cargoes Code (IMSBC), issued by
IMO. It was revised and reissued in 2009. It is a requirement that a
copy of the Code should be onboard a bulk carrier, and the revised
Code is mandatory under SOLAS from 1 January 2011. Nothing in
this Standard Cargo guide is intended to differ from the advice given
in the Code, and the advice given in the Code should always be the
first point of reference. It has not been possible to include preparation
advice here for all bulk cargo, and the IMSBC should therefore be
consulted whenever any question arises.

^ Coal discharge

^ Washing down a cargo hold

15843 Standard Safety - Seedcake_AW.indd 1

Navigational incidents and

collisions are increasing
Other navigational concerns
Navigational audits

Proof: 06
Proof Read by:
October 19, 2011 12:52 PM
neil: from previous
First Read/Revisions

STANDARD CARGO

2
3

Standard Safety,
Navigation special edition
June 2012

19/10/2011 13:28

Standard Cargo,
Bulk Cargoes
hold preparation and cleaning
March 2011
SMS
Maintenance
Hold cleaning, washing down
and drying equipment
Requirements for cargoes
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
Registered in England No. 2561548
Telephone: +44 20 3320 8888 Emergency mobile: +44 7932 113573
Email: pandi.london@ctplc.com Website: www.standard-club.com
Please send any comments to the editor: Ian Price
Email: ian.price@ctplc.com Telephone: +44 20 3320 8893

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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
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
consequence of or reliance on them. You are advised to seek specific legal or
technical advice from your usual advisers about any specific matter.