A report from the Swedish Club reveals a significant challenge in bulk grain shipping—wet damage is a leading cause of cargo loss, resulting from moisture ingress and structural failure.
Incident Summary
Across the industry, damp cargo remains a serious threat. The Swedish Club, in cooperation with key maritime stakeholders, has identified wet damage as the single largest source of loss and cost within bulk cargo claims—surpassing all other causes. While exact case details differ, common factors have surfaced time and again. Damaged hatch covers, poor ventilation, and unmitigated exposure to humidity consistently contribute to spoiled grain during transit.
Upon arrival at the discharge port, the vessel’s cargo holds were opened, and the cargo was visually inspected by the cargo receiver. No signs of damage or water ingress were observed at this stage, and discharge operations commenced using grabs into trucks, with simultaneous unloading from all cargo holds. The cargo was transported to the receiver’s facility and deposited into a single grain intake pit for transfer into silos.
As discharge progressed, a surveyor representing the cargo receiver identified a thin layer of wet, discoloured cargo at the bottom of Hold 1, near the tank top. The crew made efforts to segregate this small volume of wet cargo by placing it into plastic drums. Despite these efforts, the stevedores halted operations. After a delay of several days, agreement was reached to continue discharge with a renewed focus on segregation.
Although operations resumed with the intention of separating wet from sound cargo, the process soon broke down. Within a few truckloads, wet and dry cargo were mixed together. This failure was compounded by the fact that all cargo—segregated or not—was dumped into a single grain intake pit at the receiver’s facility, further contaminating the sound cargo.
Analysis and Receiver’s Response
Laboratory analysis confirmed that the wet cargo had been contaminated with seawater. No food safety testing was conducted, but the lab deemed the tested samples unfit for human consumption. Although the analysis applied only to selected samples, the cargo receiver extended the conclusion to a much larger volume of cargo from Hold 1, far exceeding the quantity of actually contaminated material.
Based on the clean bill of lading and the presence of wet cargo at discharge, the cargo receiver arrested the vessel and demanded EUR 2,000,000 in security for alleged losses. However, a subsequent investigation revealed that the primary issue stemmed from poor cargo handling practices during discharge—specifically, the failure to effectively segregate the wet cargo, resulting in extensive cross-contamination.
A full inspection at the vessel’s next port, after unloading, identified the source of water ingress as a corroded pipe that had gone unnoticed during earlier inspections at the loading port.
Despite claiming extensive losses, the receiver was only able to provide limited documentation to justify selling approximately 7,000 tonnes of cargo as animal feed. The matter proceeded to London arbitration and was ultimately settled amicably at approximately 15% of the original claim amount.
Lessons Learned
- Prioritize Secure Hatch Cover Maintenance: Faulty hatch covers are among the top offenders, allowing water to penetrate cargo holds. Regular inspections—including seal checks and pressure tests—are essential to ensure watertight integrity.
- Implement Rigorous Moisture Management: Bulk grain is highly sensitive to moisture. Ship operators should employ effective drying and ventilation protocols, monitor cargo hold humidity, and take preventative measures, especially in tropical or rainy zones.
- Train and Enforce Best Practices: Crew members and loading staff must understand cargo handling standards, identify early warning signs of wet damage, and act preemptively. Checklists, drills, and clear protocols help maintain consistency across voyages.
- Enhance Insurance and Documentation: Shipping companies should clearly document cargo condition before and after loading—and ensure insurance covers both pre-existing and voyage-related moisture losses. Accurate documentation helps streamline claims and reduce disputes.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Swedish Club
