Cargo - General Cargo

 

Loading and Discharing Procedures

Shortage Claims

Damage Claims

Loading and Discharging Procedures

General cargoes are usually shipped in manageable quantities that can be checked, although the larger the overall quantity and the smaller the individual cargo units, the greater the problems associated with verification. Such cargoes are susceptible to theoretical loss in a similar way to bulk cargoes if there are undetected tallying errors and depending upon the nature and packaging of the cargo, and security at the discharge port, pilferage can be a source of actual loss. The following procedures are necessary to establish the evidence necessary to handle such claims:

 

1.      Accurate loading and discharge tallies should be made. These can be carried out either by the ship's personnel or by professional tallying companies. At ports where tallying is known to be of poor quality, and if large quantities of cargo are involved, it is recommended that the crew perform an additional tally of the cargo as it is discharged from the vessel. Often the only tally that is recognised as evidence of the quantity discharged, is that performed by the official tallying organisation at the port of discharge. If that situation exists, it is vitally important that those who may be carrying out an independent tally on behalf of the carrier should, if possible, work closely with the official tally clerks. In particular, as and when discrepancies appear between the official and unofficial tallies, these should be addressed and resolved immediately before inaccurate figures find their way into the official record.

2.      To minimise pilferage the vessel’s security procedures should be followed closely to prevent unauthorised personnel from gaining access to the vessel. Masters and officers should make every reasonable effort to ensure that all persons visiting the vessel are suitably identified and have legitimate business on board. Points of access to the vessel should be limited to the minimum necessary for safe and efficient working of the vessel, and controlled by reliable gangway watchmen who should have clear instructions concerning their duties. Deck watch keeping should be enhanced during cargo operations, including periodic visits into the holds themselves if it is considered safe to do so, to ensure that the opportunities for pilferage are minimised.

3.      In certain areas of the world, particularly parts of the Far East, West Africa and South America, robbery often involving the use of firearms is a serious problem. Additional precautions are then necessary, including extra lighting of the vessel at night, the lifting of gangways whenever they are not required and regular patrols of the vessel to prevent access either from the quay or by boat. Communication arrangements in the event of an emergency should be established in advance so that the potential for loss of time in summoning assistance is minimised.

  

Shortage Claims

The following investigations should normally be carried out in the event of an alleged short delivery of cargo:

 

1.      The loading tallies should be checked by the agents at the loading port.

2.      The mate's receipts should be obtained and checked against the relevant bills of lading.

3.      The discharge tally and outturn report should be checked by the agents at the discharge port together with the ship's manifest and records of the customs authorities.

4.      Cargo tracers should be sent out to the agents at other ports of call in case cargo has been mistakenly discharged elsewhere. Thorough searches for the missing cargo should be made, both on board the vessel itself and at the discharge port. Checks should be made to ensure that there is no cargo of similar nature at any port that has been landed and categorised either as excess cargo, or cargo for which there are either no or incorrect marks.

 

The following additional documents will normally be required by the Club:

 

1.      The original bills of lading and mate’s receipts.

2.      The charter party, if any.

3.      The Subrogation certificate, if the claim is made by cargo underwriters or a recovery agent.

                         

4.      Evidence of the cargo value, such as the seller's invoice or details of the sound market value at the port of discharge.

5.      A claim note or other documentary evidence showing how the claim is calculated and the items it comprises.

6.      Evidence of loss, such as a port outturn report.

 

Depending on the type and size of the claim, additional enquiries may be necessary. For example, in the case of bagged cargo, it is often necessary to establish whether empty bags were included in the tallies, whether sweepings were collected and how their weight was calculated, and whether the bags for sweepings were the same size as the original bags. Obviously, requirements will vary considerably from case to case, but the guidelines given above should cover most types of claim.

 

Damage Claims

If cargo damage occurs during loading, the voyage or during discharge, the Club and its local correspondents should be notified immediately so that a surveyor can be instructed to inspect the cargo at the first available opportunity.

 

As with other cargo problems the initial notification should contain as much information as possible so that the Club can quickly make a preliminary evaluation of the seriousness and complexity of the claim and determine whether specialist surveyors or other experts should be instructed.

 

Damage claims at the discharge port can often be avoided by appropriate clausing of the mate’s receipt and bill of lading that represents, amongst other things the condition of the cargo on loading. This is particularly so in relation to finished steel products, or other high value cargoes capable of inspection prior to loading, or where an inspection may confirm the goods are properly packed and in such a condition to withstand the ordinary events of the contemplated voyage. However, because the clausing of mates receipts and bills of lading may have a direct effect on the shippers ability to sell the cargo loaded or draw down on a letter of credit it cannot be stressed too strongly that any clausing of the mate’s receipt or bill of lading does reflect the apparent order and condition of the good at the time of loading so far as is visible from a reasonable inspection such as would be expected of the carrier at the time of loading. Masters or Chief Officers are not expected to be experts in the attributes of the goods loaded, and therefore if in doubt whether to clause the mate’s receipt or bill of lading, or if so, as to the wording of any clausing, advice should be sought from the Club and /or Club’s local correspondent.

 

In addition to details of the circumstances and extent of any apparent damage to the cargo set out in the initial notice sent to the Club, clarification whether the vessel is on charter, and if so, the terms of the charter in relation to the loading, stowage and discharge of the cargo may be relevant. In many cases, the charterparty will provide that the charterers are responsible for loading, stowing and discharging the cargo. Therefore, where the damage is caused during loading or, for example, as a consequence of a collapse of the stow during the voyage, or on discharge, it is important that not only the cargo shippers or consignees be notified and invited to attend a joint survey but also the charterers. It is particularly important that investigations are undertaken at an early stage to establish what if any involvement the master or chief officer may have had with the loading, stowage or discharge operation and if any alteration to charterer’s plans has been proposed or made at the suggestion or insistence of the master or chief officer. Although a difficult area, responsibility for loading or stowage or discharge can shift from charterers back to the vessel owner dependent on whether there has been interference by the master or chief officer in the method of or planned loading, stowage or discharge of the cargo. Information in relation to and investigation of these issues are key not only to minimising claims but also protecting rights of recovery from charterers or third parties for any claims made under the bill of lading that are settled.