The London P&I Club news alert
The London P&I Club has recently issued alert regarding distresed sugar cargoes from Santos. The Club had previoulsy reported a fire broke out at the Copersucar Sugar Terminal in Santos a few months ago. The Club has recently received reports that cargoes of distressed sugar are being offered for carriage to a refining company in the Middle East. A significant proportion of the distressed sugar is reported to be very wet, due to the fire fighting measures.
Usually sugar is listed in the IMSBC code as a Group C cargo based on the moisture content being 0% – 0.05%, however, it is possible that the moisture content of the distressed sugar, if affected by the firefighting measures, could exceed the moisture content levels specified in the IMSBC Code. |
Operators should note that this changes the properties of the cargo from one with a low moisture content that is not ordinarily prone to liquefaction, to a cargo which may liquefy during a voyage. Liquefaction of cargo results in cargo shifting and loss of ship stability, a major cause of marine casualties. In the circumstances, Operators should consider carefully the properties of any distressed sugar cargo being loaded in Santos and take appropriate steps to safeguard the ship where necessary. |
The London P&I Club advises operators that even if a sugar cargo with a moisture content above expected levels proves to be safe to load, they should take care to clause the bills of lading and mates receipts appropriately. Operatros should note that there have been reports that charterers/shippers are offering letters of indemnity in order to avoid the clausing bills of lading/mates receipts and that the Club recommends that such practices be avoided given the issues that may arise, including potential concerns over Club cover.