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CARGO ALERT - BAGGED RICE CARGOES FROM THAILAND
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The BIMCO Marine department has been informed that Thailand, in order to increase its export trade, intends to release stockpiles of rice accumulated from harvests dating as far back as 2005. According to the American P&I Club, Thailand has in excess of 12 million tons of rice in its stockpiles, and it is expected that the country will seek to export a large portion of them.
Members engaged in the bagged rice trade between Southeast Asia, West Africa and points in between are strongly advised to take the necessary precautionary and preventive measures to best protect themselves from unnecessary cargo quality, shortage and sweat/condensation claims that are inherent with bagged rice cargoes.
It would be prudent for members to arrange precautionary preload surveys to ensure that a duly qualified surveyor will attend the loading operations and conduct the necessary tally and/or draft surveys.
It is recommended that randomly selected bags be periodically weighed to verify the represented weights and to avoid potential shortage claims. As there are older rice stockpiles, the pre-shipment moisture content of these cargoes to be loaded would have to be seriously taken into consideration; cargo quality certificates should be closely reviewed and assessed and, if warranted, representative cargo samples should be jointly obtained with charterer and/or cargo interests to preserve and support an inherent vice defense.
The American P&I Club has also recommended that members should take steps to ensure, inter alia, that:
- the governing fixture or charter party is appropriately worded to allocate the risk and responsibilities of properly loading, stowing, dunnaging and/or discharging the cargo upon the charterer, and that the fixture includes sufficient wordings to preserve any rights of indemnity or contribution from charterer for the breach of any such responsibilities;
- the charterer and/or its agents use proper dunnage to afford sufficient protection and insulation from the hold walls, and minimize any potential condensation from changes in temperature;
- precautionary surveys are arranged at the discharge port(s) to complement the preventive measures undertaken at loading; and
- the member immediately notify relevant parties with respect to any events which give rise to a potential exposure to the vessel during loading, during the performance of the voyage and/or during discharge.
Members are urged to follow the general principles set out above in light of the recent developments in Thailand, and as part of an overall loss prevention approach for the carriage of bagged rice cargoes out of Thailand. BIMCO contact: marine@bimco.orgSource: Bimco.org (08.05.13)
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