London P&I Club news alert
The London P&I Club has issued news alert regarding a fire occurred at Terminal Acucareiro Copersucar (“TAC”) (Copersucar Sugar Terminal) in Santos, Brazil. So far, sources report that the fire has destroyed approximately 180,000 tonnes of sugar and, based on current assessment, there is no expectation that TAC will be operational for at least six months. Given that TAC capacity accounts for approximately one quarter of all sugar exported from Santos, this is likely to have a significant impact not only to vessels en route to load sugar in Santos but also for the foreseeable future.
It is possible that vessels originally scheduled to load sugar from TAC will either be deviated to the Port of Paranagua (south of Santos) or lined-up to load from other bulk cargo export facilities, such as Cosan, TEAG, TGG and TERMAG. Alternative suppliers are already reported to be operating close to their maximum capacity.
The London P&I Club suggests for vessels which are at or en route to load sugar at Santos or are ordered to do so in the future under existing charterparty arrangements can expect some delays and may wish to approach their usual Club contact for advice and assistance. In the meantime, operators considering fixing a voyage to Santos may wish to give the above due consideration when negotiating contract terms.