Cargo losses are very high in tropical countries, especially in the third world. The damage to reefer cargo is substantial where ambient temperatures are high, and losses in these regions can be as much as 30-35%. This is due to many factors including a poor transport infrastructure, absence of sufficient cold storage facilities, poor marketing infrastructure etc.
Dubai has recently seen a spate of claims in respect of alleged damage to consignments of garlic imported from China. The garlic market in Dubai is controlled by a limited number of traders, one of whom is the main importer of Chinese garlic. The Chinese harvest season runs from July to August. The cargo is imported either in bulk on reefer vessels or in reefer containers.
The quality and condition of the garlic is particularly affected by temperature and moisture, as well by gases like CO2 produced by respiration of the living cargo. Any problems can result in the deterioration and reduction of storage life of garlic exposed to abnormal and unwarranted changes in temperature. The storage life of garlic is typically 6-9 months depending on the storage conditions. The shippers and/or charterers should provide vessel interests with clear carriage instructions regarding the temperature, humidity levels and ventilation exchanges.
Carriage instructions and difficulties for the vessel
A feature of the recent cases is that vessel interests have accepted carriage instructions from the shippers/charterers, that create compliance difficulties for the vessel. For example, in one case the instructions were:
1. Holds pre-cooled to minus 5°C before loading
2. delivery air temperature of 0°C during loading
3. carriage temperature of minus 3°C
4. humidity 60-65% CO2 below 1%
5. air exchange minimum twice daily
6. a return air temperature of minus 3°C must be achieved within 3 days of the
completion of loading.
Apart from the requirements regarding monitoring and record keeping, these instructions caused a number of difficulties for the vessel, even with the refrigeration machinery working perfectly. Most notable is the difficulty posed by high pulp temperatures at the time of loading.
The pulp temperature is the temperature inside the garlic bulbs.
The cargo is brought from its place of harvest to the port in open trucks and is at times stored on the quayside without cooling for a long period prior to loading. Garlic can begin to sprout if damp, giving off heat in the process. In at least one case the pulp temperature at the time of loading was between 28°C and 32°C. Due to the high temperature of the goods at loading, the required return air temperature can be reached 9 days after loading and for some cargo spaces as long as 13 days after loading. The vessel will be unable to bring the temperature down to the necessary level in the agreed 3 day period.
The claims
A charter party will often require the charterer and consignee to be given daily temperature reports from the vessel. When the consignee finds that the temperature requirements have not been fully complied with, the ship is held responsible for any alleged damage to the garlic even before the vessel arrives at the discharge port. It is common practice to threaten the arrest of the vessel and to demand a guarantee as security for the claim.
The damage the Consignee often alleges to have occurred is `internal sprouting' of the garlic. Samples of the garlic will be cut at random and an allegation of an unacceptably high rate of sprouting is made. Consignees might allege that, if the carriage temperature is not maintained at minus 3°C, the sprouting will increase.
This results in a reduced storage/shelf life of the garlic, forcing the consignee to sell the garlic at a reduced price. The alleged loss is quantified either as a percentage of the invoice value by the Consignees' Surveyor or by producing sales invoices at a later stage. Claims often run in to hundreds of thousands of American dollars.
Clausing is the process of adding clauses or phrases to the bill of lading rather than issuing a clean B/L.
It can be difficult to defend these claims in the United Arab Emirates, particularly when a clean bill of lading has been issued. Vessel interests face the difficult burden of proving that problems with the garlic would not have been apparent at the time of loading and so clausing would not have been an option because the damage was due to inherent problems. In many cases, it is suspected that the real cause of damage is the high pulp temperatures prior to shipment. Vessel interests may be left with no other option but to negotiate a settlement on the best terms possible.
Vessel interests are advised to take special precautions when loading garlic, particularly in China, but also elsewhere where pre-shipment conditions are likely to cause problems when complying with carriage instructions. Among the precautions that vessel interests can take are:
1. Not to accept carriage instructions that the vessel is likely to have difficulty in complying with. In particular, the requirement of a return air temperature should not be accepted as it can depend on factors beyond the vessel's control, for example pulp temperature or quayside storage. Required carriage temperatures should only be accepted as delivery air temperatures as this is under the vessel's control.
2. The acceptance of carriage instructions, particularly under a charter party, should be on the express condition that the garlic is dry and that the pulp temperatures are within an acceptable range at the time of loading. Vessel interests can reserve the right to reject for shipment a non-compliant cargo and insist the charterers/ shippers have it dried and/or cooled before shipment.
3. If there is no alternative but to ship garlic with high pulp temperatures, an appropriate remark such as "shipped at pulp temperatures...at shippers risk without responsibility for loss or damage howsoever caused" could be inserted in the bill of lading
4. Shippers should be asked to provide information and evidence at the load port as to where the garlic originated from, how old it is and how it has been stored ashore. Failing this, vessel interests should seek to obtain the same. Photographs, including `close-ups' of the garlic, can be taken and records of weather conditions prior to loading should be kept.
5. Pre-shipment inspections of the garlic, with a view to clausing the bills of lading, should include any signs of rotting, staining and wetting. Packing should also be inspected, including a check to see if sufficient ventilation is provided. If there is no routine monitoring of the pulp temperatures and the vessel suspects these to be high, a surveyor can be instructed to attend on the vessel's behalf. His inspection can include a check for internal sprouting.
6. Tight stowage should be avoided as this makes it more difficult for the refrigerated air to circulate and for gases to be vented off.
7. Monitoring equipment should be calibrated and in full working order. Full and proper carriage records should be kept.
8. With the shipper's approval, a small sample of garlic can be placed in the vessel's own stores. The temperature monitoring and records could provide a useful comparison to the garlic in the holds, and may be important at a later stage.
Our detail pages below examine some typical cases of damage to reefer cargoes and countermeasures against poor information transfer and communication.
Dubai has recently seen a spate of claims in respect of alleged damage to consignments of garlic imported from China. The garlic market in Dubai is controlled by a limited number of traders, one of whom is the main importer of Chinese garlic. The Chinese harvest season runs from July to August. The cargo is imported either in bulk on reefer vessels or in reefer containers.
The quality and condition of the garlic is particularly affected by temperature and moisture, as well by gases like CO2 produced by respiration of the living cargo. Any problems can result in the deterioration and reduction of storage life of garlic exposed to abnormal and unwarranted changes in temperature. The storage life of garlic is typically 6-9 months depending on the storage conditions. The shippers and/or charterers should provide vessel interests with clear carriage instructions regarding the temperature, humidity levels and ventilation exchanges.
Carriage instructions and difficulties for the vessel
A feature of the recent cases is that vessel interests have accepted carriage instructions from the shippers/charterers, that create compliance difficulties for the vessel. For example, in one case the instructions were:
1. Holds pre-cooled to minus 5°C before loading
2. delivery air temperature of 0°C during loading
3. carriage temperature of minus 3°C
4. humidity 60-65% CO2 below 1%
5. air exchange minimum twice daily
6. a return air temperature of minus 3°C must be achieved within 3 days of the
completion of loading.
Apart from the requirements regarding monitoring and record keeping, these instructions caused a number of difficulties for the vessel, even with the refrigeration machinery working perfectly. Most notable is the difficulty posed by high pulp temperatures at the time of loading.
The pulp temperature is the temperature inside the garlic bulbs.
The cargo is brought from its place of harvest to the port in open trucks and is at times stored on the quayside without cooling for a long period prior to loading. Garlic can begin to sprout if damp, giving off heat in the process. In at least one case the pulp temperature at the time of loading was between 28°C and 32°C. Due to the high temperature of the goods at loading, the required return air temperature can be reached 9 days after loading and for some cargo spaces as long as 13 days after loading. The vessel will be unable to bring the temperature down to the necessary level in the agreed 3 day period.
The claims
A charter party will often require the charterer and consignee to be given daily temperature reports from the vessel. When the consignee finds that the temperature requirements have not been fully complied with, the ship is held responsible for any alleged damage to the garlic even before the vessel arrives at the discharge port. It is common practice to threaten the arrest of the vessel and to demand a guarantee as security for the claim.
The damage the Consignee often alleges to have occurred is `internal sprouting' of the garlic. Samples of the garlic will be cut at random and an allegation of an unacceptably high rate of sprouting is made. Consignees might allege that, if the carriage temperature is not maintained at minus 3°C, the sprouting will increase.
This results in a reduced storage/shelf life of the garlic, forcing the consignee to sell the garlic at a reduced price. The alleged loss is quantified either as a percentage of the invoice value by the Consignees' Surveyor or by producing sales invoices at a later stage. Claims often run in to hundreds of thousands of American dollars.
Clausing is the process of adding clauses or phrases to the bill of lading rather than issuing a clean B/L.
It can be difficult to defend these claims in the United Arab Emirates, particularly when a clean bill of lading has been issued. Vessel interests face the difficult burden of proving that problems with the garlic would not have been apparent at the time of loading and so clausing would not have been an option because the damage was due to inherent problems. In many cases, it is suspected that the real cause of damage is the high pulp temperatures prior to shipment. Vessel interests may be left with no other option but to negotiate a settlement on the best terms possible.
Vessel interests are advised to take special precautions when loading garlic, particularly in China, but also elsewhere where pre-shipment conditions are likely to cause problems when complying with carriage instructions. Among the precautions that vessel interests can take are:
1. Not to accept carriage instructions that the vessel is likely to have difficulty in complying with. In particular, the requirement of a return air temperature should not be accepted as it can depend on factors beyond the vessel's control, for example pulp temperature or quayside storage. Required carriage temperatures should only be accepted as delivery air temperatures as this is under the vessel's control.
2. The acceptance of carriage instructions, particularly under a charter party, should be on the express condition that the garlic is dry and that the pulp temperatures are within an acceptable range at the time of loading. Vessel interests can reserve the right to reject for shipment a non-compliant cargo and insist the charterers/ shippers have it dried and/or cooled before shipment.
3. If there is no alternative but to ship garlic with high pulp temperatures, an appropriate remark such as "shipped at pulp temperatures...at shippers risk without responsibility for loss or damage howsoever caused" could be inserted in the bill of lading
4. Shippers should be asked to provide information and evidence at the load port as to where the garlic originated from, how old it is and how it has been stored ashore. Failing this, vessel interests should seek to obtain the same. Photographs, including `close-ups' of the garlic, can be taken and records of weather conditions prior to loading should be kept.
5. Pre-shipment inspections of the garlic, with a view to clausing the bills of lading, should include any signs of rotting, staining and wetting. Packing should also be inspected, including a check to see if sufficient ventilation is provided. If there is no routine monitoring of the pulp temperatures and the vessel suspects these to be high, a surveyor can be instructed to attend on the vessel's behalf. His inspection can include a check for internal sprouting.
6. Tight stowage should be avoided as this makes it more difficult for the refrigerated air to circulate and for gases to be vented off.
7. Monitoring equipment should be calibrated and in full working order. Full and proper carriage records should be kept.
8. With the shipper's approval, a small sample of garlic can be placed in the vessel's own stores. The temperature monitoring and records could provide a useful comparison to the garlic in the holds, and may be important at a later stage.
Our detail pages below examine some typical cases of damage to reefer cargoes and countermeasures against poor information transfer and communication.