Loss Prevention Guidance on Preventing Bulk Shortage Claims

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  • Bulk cargo shortage claims arise when the quantity stated in the Bill of Lading (B/L) differs from the quantity received at the destination.
  • Common causes include inaccurate measurements, improper stowage, mishandling, spillage, theft, and moisture-related weight loss.
  • Preventive measures involve proper cargo measurement, record-keeping, compliance with regulations, and effective monitoring at all stages.
  • A checklist is provided to help shipowners and crew mitigate risks and respond effectively to claims.

BEFORE LOADING

Preparations

  • Risk Assessments: Assess cargo type, geographical conditions, and weather risks.
  • Planning & Instructions: Obtain detailed stowage and handling instructions from the shipper.
  • Letter of Indemnity (LOI): Verify and consult with the Club before accepting LOIs.
  • Cargo Hold Cleanliness: Maintain photographic evidence of cleaned holds and bilges.
  • Bilge Management: Regularly clean, dry, and properly cover bilge wells.

DURING LOADING

Supervision & Documentation

  • Monitor Cargo Operations: Designate a crew member to oversee loading.
  • Segregation & Marking: Ensure proper segregation to avoid quantity confusion.
  • Sealing & Protection: Close holds during delays to prevent losses.
  • Weighbridge Accuracy: Request weighbridge certificates and check calibration.
  • Independent Surveyor: Appoint a surveyor for inspection and documentation.
  • Draft Surveys: Conduct accurate draft surveys with proper measurements.
  • Hold Volume & Stowage Factor: Verify measurements to countercheck cargo amount.
  • Bill of Lading (B/L): Accurately state cargo quantity and ensure correct unit measurements.
  • Hatch Sealing: Document and verify hatch sealing post-loading.

DURING THE VOYAGE

Cargo Protection Measures

  • Moisture Management: Monitor bilge soundings and document bilge discharge.
  • Hold Seals Inspection: Regularly check and document seal integrity.
  • Ventilation: Follow Dew Point and Three Degree Rules for moisture control.
  • Damage Prevention: Record any instances requiring access to cargo holds.

DURING DISCHARGE

Discharge Monitoring & Verification

  • Draft Survey: Compare outturn quantity with B/L figures.
  • Surveyor Appointment: Verify seal integrity with receiver representatives.
  • Photographic Documentation: Record spillage due to rough handling.
  • Accurate Port Discharge: Prevent excess unloading at multiple ports.
  • Bilge Discharge Reporting: Ensure bilge water discharge is accounted for in survey reports.

NOTIFICATIONS

Handling Shortage Claims

  • Immediate Notification: Inform cargo owners and shippers of any discrepancies.
  • Letter of Protest (LOP): Issue if loading figures differ from shore figures.
  • Loss Mitigation: Take preventive steps and involve surveyors for investigation.

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Source: Britannia P&I Club