Thursday, October 20, 2011

Cargo damage & claims:- Reason of reefer cargo losses ,damage investigation & preventive measures

In commerce and manufacturing, there are many uses for refrigeration. Refrigeration is used to liquify gases - oxygen, nitrogen, propane and methane, for example. In compressed air purification, it is used to condense water vapor from compressed air to reduce its moisture content. In oil refineries, chemical plants, and petrochemical plants, refrigeration is used to maintain certain processes at their required low temperatures (for example, in the alkylation of butenes and butane to produce a high octane gasoline component). Metal workers use refrigeration to temper steel and cutlery. In transporting temperature-sensitive foodstuffs and other materials by trucks, trains, airplanes and sea-going vessels, refrigeration is a necessity.
Dairy products are constantly in need of refrigeration, and it was only discovered in the past few decades that eggs needed to be refrigerated during shipment rather than waiting to be refrigerated after arrival at the grocery store. Meats, poultry and fish all must be kept in climate-controlled environments before being sold. Refrigeration also helps keep fruits and vegetables edible longer. 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.

Whenever any cargo damage occurs, answers are sought as to why, where and when it occurred, reinforcing the commitment that whoever is responsible for damage is also accountable for it.

Ironically, most reefer cargo damage occurs not because of technical reasons, but due to poor communication systems, management practices or administrative procedures. Most of these losses could have been avoided if appropriate checklists had been made and strictly adhered to, and the systems followed. Weak links in the chain of information need to be strengthened.

ITIC (International Transport Intermediaries Club) Claims Review reports that there have been an increasing number of claims (varying between US$15,000 and $150,000 in value) resulting from reefer containers either being left unplugged at the load or discharge port or being carried at the incorrect temperature.

Documents are fundamental in the investigation of a claim involving damage to cargo. They will be examined by the technical surveyors and may be used as evidence in subsequent legal proceedings. The following documents are likely to be important in the event of a claim:

Ship's log
bill of lading
Mate's receipts and attached record of the inspection of the cargo prior to and
during loading
deck log of loading and unloading
stowage plan
engine room log
any documentation arising from disputes during unloading and/ or the receipt of
cargo.
Photographs and video recordings can provide crucial additional evidence to
support statements in the logs and inspection reports.

It is important to understand how to keep cargo fresh . Ensure that your cargo travels in an unbroken cold chain from the point of origin to the final destination, in close coordination with leading reefer container carriers and service providers. Any observations that indicate the cargo temperature is high or that the cargo was delivered in a damaged or deteriorated condition should be supported, if possible, by further evidence. This evidence might include photographs taken during the pre- shipment inspection or results of reports by cargo surveyors.

As soon as any question is raised over the condition of the cargo, the ship's Master should begin to document the events surrounding the discovery of the defective material, along with the nature and possible extent of the alleged defects.

If possible, loading or unloading of the vessel should be halted and the hatches closed until a cargo surveyor is present. Ideally, the cargo should be inspected and sampled while it is still in the hold or during discharge. This will allow the surveyor to determine the nature of the damage and whether it is related to its position in the hold.

Once the cargo has been discharged into the store, the process of relating any damage to its location in the hold is more difficult. This can be impossible unless the cargo is adequately labelled. Therefore, if loading or unloading must continue, the Master should ensure that as it leaves the hold each cargo unit is labelled with the hatch number and deck as well as its location. The deck log should also record the destination of the material and the agent responsible for handling it.

When a problem is identified during loading or unloading, for example if the temperature of the cargo is too high, loading or unloading should stop until the cargo has been inspected by a specialist surveyor. If the dispute concerns the quality of the product, it will probably be necessary for at least one specialist surveyor to examine the cargo to establish its current quality and determine the nature and cause of any defects.

If it is suspected that the defects result from maritime causes, an expert in ship operations should assess, for example, physical damage from movement of the cargo or from contamination with seawater, fuel oil or bilge water. If the defects can be attributed to the initial quality of the material when loaded or to the way the product was stowed and carried onto the vessel, a specialist surveyor is necessary.

Specialist reefer surveyors offer customised reefer solutions, ranging from single corridor port-to-port to multiple corridor door-to-door solutions with full end-to-end visibility. Many of the surveyors appointed by local shipping agents are general marine surveyors, often with a seagoing background. They are not necessarily skilled in the evaluation of, say, the quality of fish cargo. Masters and agents are advised to check the expertise and qualifications of the surveyors carefully to ensure that their technical background and experience are appropriate for the particular job.

As a general rule a single surveyor should not be commissioned for both a cargo survey and a survey of the vessel's condition. Since the skills required for each type of assessment are different, it is unlikely that one person would have experience in both areas at the levels of expertise required. For example, a fish cargo surveyor should have a background in food science and experience in the inspection of food products, ideally in assessing the quality of frozen fishery products.

Our detail pages below examine some typical cases of damage to reefer cargoes and countermeasures against poor information transfer and communication.