pi_circular Cargo riskInsurance & claims Skuld
Introduction High value South American soybean claims continue: soybean carriage advise revisited 2016 The Association has recently experienced a number of high value cargo claims in respect of soybeans loaded in South America, mainly Brazil, Uruguay and Argentina, all of which were discharged in China. This article will discuss in " Section one " the problems associated with soybeans and the dichotomy between local regulations at the load port and different obligations at the discharge port facing the master when issuing bills of lading covering this cargo. It will also explore how those differences impact on the owners' obligations under the charter party. In " Section two " the article will review relevant load port background information on soybeans and practical loss prevention tips. Normal, sound soybeans Skuld would like to thank Brookes Bell who has provided technical guidance and contribution for the preparation of this article. Section one Moist soybeans, regulations at the load port and obligations at the discharge port The common connection The Association has faced a number of substantial claims arising from cargo loaded at Santos, Brazil and Montevideo and Nueva Palmira in Uruguay. The common connection for these claims is self-heating due to high moisture content, which can result in discolouration, mouldy and burnt cargo. The main reason for the high moisture content is that South American countries, such as Uruguay, Argentina and Brazil, allow for soybeans with a maximum moisture content of 14% to be loaded on vessels. In most of the soybeans cases registered with the Association recently, cargo was loaded in Santos with moisture content as high as 13-14%. The high moisture content found in the beans recently is partly attributed to the weather phenomenon known as "El Niño", bringing with it torrential rains in the southern part of Brazil, whereas the centre-west area of the country has sustained drought. Although the local statistics for 2016 are n
Brazil and Uruguay: Soybeans with high moisture content
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