THE BRITANNIA GROUP WHITE PAPER CLIMATE CHANGE IMPACT ON SOLID BULK AND GRAIN CARGOES 2 | THE BRITANNIA GROUP | WHITE PAPER CLIMATE CHANGE CONTENTS INTRODUCTION 3 IMPACT OF CLIMATE CHANGE ON CARGOES 4 VARIABILITY IN CARGO AVAILABILITY, COMPOSITION AND QUALITY 5 DETERIORATION OF CARGO QUALITY AND CLIMATE CHANGE 9 IMPACT OF PROLONGED VOYAGE 18 OPERATIONAL AND TECHNICAL FACTORS TO CONSIDER 20 BIBLIOGRAPHY 22 CLIMATE CHANGE OUR PARTNER FOR THE ISSUE Triglav Maritime provides bespoke, comprehensive consultancy services focusing on risk management, loss prevention, as well as marine vetting and assurance matters. The founder, Capt. Ostrowicki has 34 years of combined command and shore-based experience. He has sailed on bulk carriers, general cargo and container ships. His shore-based experience includes ship operations and marine vetting of dry cargo ships, tankers and gas carriers, as an operations manager, marine vetting director and loss prevention manager. Capt. Ostrowicki provides expert advice on risk management and safety management processes. In addition to marine incident and claim investigations, he performs management reviews, ISM and TMSA audits and in-depth risk assessments through data analysis. He has also authored several publications. 3 | THE BRITANNIA GROUP | WHITE PAPER CLIMATE CHANGE Among the cargoes likely to be affected are grains and solid bulk. Many of these cargoes are highly sensitive to moisture, temperature, and stowage conditions. Climate variability is altering harvest quality, increasing the likelihood of cargo being loaded with elevated moisture or latent damage. Once at sea, prolonged voyages, more humid environments, and unpredictable weather patterns heighten the risk of mould growth, fermentation, and caking, potentially leading to deterioration, cargo rejection, and disputes over liability. RISING TEMPERATURES, SHIFTING RAINFALL PATTERNS, AND MORE FREQUENT EXTREME WEATHER EVENTS AFFECT NOT ONLY SHIPS, PORTS AND MARITIME INFRASTRUCTURE, BUT MAY ALSO IMPACT THE QUALITY AND BEHAVIOUR OF CARGOES WHEN TRANSPORTED ACROSS THE WORLD’S OCEANS. This means a change in risk exposure to cargo claims, with new challenges in both frequency and severity of claims. This publication focuses on the impact of climate change on the risks associated with solid bulk and grain cargoes. It also points out the practical steps which may be taken and provides recommendations on mitigation strategies. 3 INTRODUCTION To better understand the phenomena associated with climate change and their impact on the shipping industry, please also refer to the previous two parts of the Britannia climate change series: • Climate Change: Severe Weather and its Impact on Shipping Risks • Climate Change: Impact of Droughts and Flooding on Shipping Risks 4 | THE BRITANNIA GROUP | WHITE PAPER CLIMATE CHANGE 4 ON THE RIGHT IS A SIMPLIFIED SUMMARY OF THE FORESEEABLE IMPACT OF CLIMATE CHANGE ON GRAIN AND SOLID BULK CARGO. IMPACT OF CLIMATE CHANGE ON CARGOES STAGES OF OCEAN LOGISTICS PROCESS Cargo cultivation, production, preparation Inland transport, distribution, delivery Port of discharge, unloading Ocean voyage Port operations, loading, trimming, stowage Inland transport and storage CLIMATE CHANGE EXAMPLES OF DISRUPTION FACTORS, EFFECTS, RISK IMPLICATIONS Increasing temperatures, more frequent droughts, floods, and storms affect yield, quality, and moisture content of commodities. Higher likelihood of latent cargo defects at loading (e.g. high moisture