Swedish Club reported an incident involving cargo discolouration discovered during loading operations. The case highlights issues related to cargo condition, documentation, and communication between stakeholders.
What Happened
A vessel loaded soya beans in South America. During loading, it was found that approximately 7–8% of the cargo had purple spots on the beans. Following a joint survey, the Master initially claused the mate’s receipt to reflect the condition. This action was protested by the shipper, and the charterers and sub-charterers were involved to resolve the issue. Ultimately, the mate’s receipts were issued clean in exchange for Letters of Indemnity. At the discharge port, no claims were raised, as the receiver had already been informed of the discolouration before shipment.
Why It Happened
The incident occurred due to pre-existing discolouration in the soya beans prior to loading. Although the cargo defect was identified at the loading port, commercial pressure and disputes between parties led to the issuance of clean mate’s receipts against Letters of Indemnity. The situation underlines how cargo condition issues, when not formally recorded, may be shifted into commercial rather than operational risk management.
Actions Taken
The matter was resolved through issuance of Letters of Indemnity, and the receiver accepted the cargo without claims at discharge, having been notified of the condition in advance.
Lessons Learned
- Cargo condition should be carefully inspected and documented at the loading port.
- Early communication with all stakeholders helps prevent disputes and claims later in the voyage.
- Masters should ensure that cargo defects are properly reflected in documentation to protect against liability.
- Letters of Indemnity should not replace proper cargo inspection and recording but may be used cautiously as a last resort in commercial disputes.
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Source: Swedish Club
