The Swedish Club’s Casebook highlights a real-life incident involving damaged and rejected steel cargo.
What Happened?
A handymax bulk carrier loaded a shipment of steel pipes and coils in Asia for delivery to North America. Before loading, the vessel’s holds were cleaned, rinsed, and tested for weathertightness. Loading took place during intermittent rain, though the crew ensured that hatch covers were closed when necessary. Despite these precautions, several steel pipes were observed to be dented, rust-stained, or showing signs of oxidation even before departure.
After loading, marine tape was applied across hatch cross-joints to minimize water ingress. During the trans-Pacific voyage, the vessel encountered severe weather, including storms with winds reaching Beaufort Force 10. The cargo shifted, resulting in visible damage. Upon arrival at the discharge port, the consignee rejected the cargo due to extensive rust (both white zinc hydroxide and red rust) and physical damage, including bent, compressed, and torn pipe ends. Improper handling by stevedores during discharge—including forklift-related damage—further contributed to the rejection. The ship’s Master issued a formal Letter of Protest regarding the condition and handling of the cargo.
Cause of the Incident
Several factors contributed to the rejection of the cargo:
- Inadequate Ventilation: During the month-long voyage, natural and mechanical ventilation systems were not used due to the prevailing heavy weather. This allowed moisture to build up in the holds, leading to the formation of corrosion products such as zinc hydroxide and rust.
- Pre-Existing Cargo Damage: Some of the steel pipes loaded already showed signs of dents and rust. Inspections either failed to detect these issues or they were not properly addressed before loading.
- Insufficient Cargo Protection: While the steel bundles were wrapped and secured, the pipe ends remained exposed. The use of marine tape at hatch joints was not sufficient to protect the cargo from sea conditions and moisture ingress.
- Weather-Related Cargo Shift: The vessel’s encounter with heavy seas led to cargo movement, despite efforts to secure it. This added to the mechanical damage already present or developing.
- Rough Cargo Handling: During unloading, steel plates were placed over cargo to facilitate forklift operations. This caused pipe ends to be crushed, torn, and further corroded, aggravating the already compromised condition of the cargo.
Lessons Learned
- Ensure Continuous Ventilation: Even during adverse weather, make every effort to maintain some form of ventilation in cargo holds to prevent moisture buildup and corrosion.
- Conduct Thorough Pre-Loading Inspections: All cargo should be carefully examined for dents, rust, or other defects. Damaged items should be repaired, replaced, or clearly documented before acceptance.
- Fully Protect Vulnerable Cargo Areas: Pipe ends and exposed surfaces must be properly wrapped or sealed. Temporary measures like marine tape are inadequate for ocean-going conditions.
- Prepare for Heavy Weather: Strengthen cargo securing arrangements and use additional dunnage when rough weather is expected. Regular monitoring during the voyage is crucial.
- Handle with Care During Discharge: Discharging practices must be planned to avoid damaging cargo. Communication with stevedores about handling protocols is essential.
- Document Everything: Maintaining detailed records and issuing timely Letters of Protest help protect the shipowner’s and operator’s legal position in case of disputes.
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Source: Swedish Club
