The Britannia P&I Club recently hosted a webinar focused on managing and mitigating risks associated with soya bean claims. With industry experts offering practical strategies, the event aimed to equip shipowners and operators with the necessary knowledge to handle cargo-related challenges effectively.
The webinar was hosted by Captain Shajed Khan, Loss Prevention Manager at Britannia P&I Club, and featured expert speakers, Dr Nicholas Doddrell, Consultant Food Scientist from CWA International Consultancy, and Beatrice Cameli, Associate Director, Claims at Britannia P&I. One of the key issues discussed was the impact of long voyages on soya bean cargo between Brazil and China, which can take between five to eight weeks. A major challenge arises from the variation in cargo parameters between the loading and discharge ports including moisture content, high temperatures and foreign matter, often leading to issues such as mould growth, heat damage, and contamination.
Soya beans are a vital agricultural commodity, with major exports originating from Brazil and the US. However, Brazil has overtaken the US as the primary exporter due to shifting trade policies, including tariffs imposed during the Trump administration and evolving Chinese trade preferences. Dr. Nicholas Doddrell highlighted his extensive experience with soya bean claims, particularly on the Brazil-China route. The Brazilian export standard permits a maximum moisture content of 14%, whereas the recommended safe limit is 13%.
He told the webinar: “We have ended up with this perfect storm where there’s a large quantity of beans being exported from Brazil to China with high moisture contents that are at risk of deterioration over a long carriage.”
Given the sensitivity of soya beans to heat and moisture, several precautions must be taken to ensure cargo integrity. Ensuring the weather tightness of holds is essential to prevent water ingress, while proper maintenance and testing of the ballast system and bilge suction tests are crucial. The ventilation system must be monitored carefully to prevent excessive moisture build-up, which can lead to ship’s sweat, and the Dew Point Rule is commonly used to regulate this. Cargo holds should be meticulously cleaned and free from insects, paint flakes, rust, odour, and previous residue. Additionally, it is important to determine the necessity of fumigation before departure.
Hazards affecting moisture content include various loading methods, such as loading via pipes, which reduces monitoring opportunities, and loading from barges, which may increase wetting risks. Condensation risks from cargo sweat and ship’s sweat can contribute to excess moisture, while natural moisture levels can lead to biological degradation. External heating factors, such as fuel oil tanks, can contribute to temperature fluctuations, affecting oil and protein quality.
The webinar also covered steps to take in the event of cargo damage. Beatrice Cameli addressed the various types of claims that arise and the differences between handling cases under Chinese and English law. She emphasised the importance of evidence collection and the use of anti-suit injunctions in China to resolve disputes efficiently. “The key is to collect all the evidence and secure an early release of the vessel,” she advised.
The webinar provided valuable guidance for shipowners and operators navigating the complex challenges associated with transporting soya beans. By implementing best practices and proactive monitoring, stakeholders can mitigate risks and reduce the likelihood of costly claims.
The webinar is accessible here.
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