Loss Prevention Bulletin

The Carriage of Rice

Introduction Types of Rice
Rice is a sensitive cargo and claims arising from the carriage There are many varieties of rice that may be presented for
of rice are not unusual. However, it is equally common for shipment and their characteristics can differ. However, in
cargo interests to blame the vessel for any shortages, damage general terms all rice grains or “kernels” are covered with, and
or deterioration irrespective of the actual cause. protected by, layers of bran. The bran itself is surrounded by
a hard outer husk or hull which may also be referred to as
In particular, the reasons why rice may deteriorate on passage
chaff.
need to be understood so that, where possible, action can be
taken to carry and deliver the cargo in sound condition. The description of the rice will largely depend on the degree
of processing. The proportion of broken grains may also be
stated. The most common types of rice are summarised
below:
Paddy rice/raw paddy/rough rice
Rice grains which have not been de-husked.
Brown rice/cargo rice
De-husked rice that has not been milled or “polished”, leaving
most of the bran on the grain.
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Parboiled
Rice that has been soaked in hot water or steamed prior to
being dried, de-husked and polished.

Bagged rice cargoes frequently give rise to claims for shortage and / or
damage

Endeavouring to minimise shortages is equally important,

particularly in countries where short delivery may result in
heavy fines.
To minimise the possibility of claims due to quality or quantity
issues, this Loss Prevention Bulletin contains guidance on the
problems associated with the carriage of rice and the
precautionary measures that may help to reduce such losses.
The carriage of bagged rice cargoes from South East Asia to
West Africa gives rise to the majority of incidents experienced
by the Club and claims for shortage and/or damage due to
cargo wetting and deterioration are not uncommon. Although
the guidance in this Bulletin is principally aimed at this trade,
the following precautionary measures should be considered
Parts of a grain of rice
whenever rice is carried regardless of where it is loaded or
discharged.
Traditional dunnaging arrangement

Under-milled/semi-milled/reasonably well milled Bagged Rice

De-husked rice which has been polished but where streaks of
The most common type of rice shipped by sea is milled white
bran are still evident.
rice in bags. Brown rice is transported in much smaller
White rice/milled/over-milled/wholly milled quantities.
De-husked rice that has been polished to remove the bran. It Rice is generally packed in 20 kg, 25 kg or 50 kg woven
may be glazed with glucose and talcum to improve its polypropylene bags. The use of jute bags is now less frequent.
appearance, or coated with a film of oil (eg “Camolino” rice).
Broken rice
White rice damaged during processing comprising of whole
Preparation Prior to Loading
grains together with a percentage of broken grains. Hold Cleanliness
Prior to arrival the holds should be thoroughly cleaned, washed
and dried. Any traces of previous cargo should be removed and
Size of Rice
close attention should be paid to making sure that areas which
In addition to the type of rice, the shipment details will usually are difficult to reach (eg underdeck framing) are free of such
state the grain size: residues. After washing down with seawater, the holds should
be rinsed with fresh water to eradicate all traces of chlorides
Short grain or round rice
from the steelwork. This is particularly important as chlorides
Small, round grains that become glutinous when cooked,
may combine with any sweat (condensation) that may develop
often used to make rice pudding and similar dishes. Grain
on passage. If a silver nitrate test is subsequently carried out,
length is 5.2 mm or less.
the results are likely to be positive and may provide cargo
Medium grain rice interests with an opportunity to allege that seawater entered the
Rice between 5.2 mm and 6.0 mm in length considered to be holds during the voyage and caused cargo damage.
ideal for making dishes such as risotto and paella.
All loose paint and rust scale should be removed, bearing in
Long grain rice mind that higher, more inaccessible areas of the cargo holds
Long and slender grains exceeding 6.0 mm in length which are at greater risk of developing such problems. The reverse
do not stick together during cooking. side of pipework and other structures within the holds should
 Loss Prevention Bulletin

also be checked for loose paint and scale that may be

concealed.
Since rice is susceptible to taint, all holds should be well
ventilated until they are odour-free. Should any signs of
infestation be found, the services of a specialist pest control
company may be needed. Any particular hold preparation

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requirements specified by the charterer or shipper should be
addressed well in advance. Holds which have not been
properly prepared may result in delays and additional expense
if they are rejected by the shipper’s surveyor on arrival.
Pre-Loading Checks
Cargo hold bilge wells should be inspected, cleaned and
tested, ensuring that all bilge well non-return valves are
functioning correctly. Bilge line isolation valves in the machinery
space should always be kept shut when the hold bilge
Typical athwartships ventilation channel. However, experts question whether
pumping system is not in use. ventilation channels are necessary at all
It is essential that the checks are made to verify that hatch
covers and the sealing arrangements on hold ventilators and longitudinal channels are usually formed in line with the
hold accesses are completely weathertight. Ideally the hatch ventilators. Single bags are then positioned across the
covers should be tested using ultrasound equipment, but if ventilation channels every fifth tier to key the stow together,
not available a hose test should suffice. In addition to spaced five to ten bags apart. Experts, however, question
preventing water ingress, the hatch covers also need to be whether these channels are necessary at all as there is now
weathertight for the purpose of preventing toxic gas from scientific evidence showing them to be ineffective. What limited
escaping if the cargo is fumigated on completion of loading. air circulation they provide can be counterproductive as
Hatch coaming drain channels, drain pipes and non-return ventilation channels provide a route for warm, moist air to rise to
valves should be free from cargo residues, rust scale and paint the top of the hold, increasing the possibility of sweat in that area.
flakes. Drain pipe non-return valves should be tested to ensure Dunnage
they are functioning correctly. To minimise the risk of costly claims caused by ship sweat it is
The operation of the hatch covers should be checked to essential to prevent contact between the bags and any
confirm that they can be closed promptly if rain threatens to adjacent steelwork.
interrupt cargo work, rather than finding out at the last minute In the absence of cargo battens or spar ceiling, suitable
that the operating system does not work as intended. dunnage should be placed against all frames and plating inside
If safe, practicable and permitted by local regulations, the the cargo holds to protect the bags from ship sweat which, in
ballast tanks bordering empty cargo holds should be addition to forming on vertical surfaces, may trickle
hydrostatically tested for water leakage by overflowing them downwards over the lower hoppers and form pools of water
on deck. However, such a test should not be carried out if an on the tank tops.
adjacent hold contains cargo in case of unexpected outflows. The dunnage should be laid so as to allow any sweat that
forms on cold surfaces to run off freely into the bilges without
coming into contact with the adjacent bags. Standard
Stowage and Dunnage dunnaging practices have been developed for this purpose,
Stowage although the precise arrangements may vary depending on
To avoid the possibility of taint, rice should not be stowed the port of loading, and the type and availability of dunnage
together with cargoes having a strong odour such as coffee and other protective materials. Dunnage disposal
or fishmeal. Such products should be stowed in another arrangements at the discharge port should also be considered
compartment fitted with a separate ventilation system. as some countries do not allow certain types of wood,
particularly bamboo, to be removed from the ship.
It has long been the custom to build air gaps into the stow to
aid ventilation, typically creating two longitudinal and three Traditional Dunnaging Arrangement
athwartship channels approximately 15 to 20 cms wide. The Traditionally, bamboo poles are laid fore and aft on the tank
athwartships ventilation channels are normally situated under tops in rows not more than 20 cms apart. A second layer of
the centre, forward and aft ends of the hatch square, and the bamboo poles is then laid on top at right angles and the two
 On completion of loading the entire surface of the stow should
be covered with kraft paper, not just the area within the hatch
square.
Allied Maritime Dunnaging Arrangement
As an alternative to bamboo poles and matting, plastic sheets
and styrofoam boards are sometimes used as a barrier to
prevent the bags from touching the hold steelwork. This is
generally known as the Allied Maritime system which is
becoming more common. At least one layer of kraft paper
should be laid on the tank tops and the lower hoppers
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followed by a layer of plastic sheeting. Styrofoam boards are

then placed against the side shell plating and also covered
with plastic sheeting. Although styrofoam boards may be laid
against internal bulkheads, their use in this area is not generally
required as the formation or passage of ship sweat is unlikely.
Internal bulkheads may therefore be covered with plastic
sheeting and kraft paper. Kraft paper or plastic sheeting should
then be laid across the full surface of the stow.

Rattan mats used in the traditional dunnaging arrangement

However, there is a fundamental flaw in this dunnaging system
as although this method protects the cargo from any ship
sweat that may form on the shell plating, it does not raise the
layers are interwoven or tied together to form a grid, making bags clear of the tank top or lower hoppers, leaving the bags
sure that water can still run towards the bilges unhindered. at the bottom of the stow susceptible to damage due to sweat
Similar bamboo grids should be laid against the lower hoppers running down the lower hoppers and accumulating on the tank
and the side shell plating, but not necessarily against internal top. Similarly, the careless use of plastic sheeting or the
bulkheads as the formation or passage of ship sweat is unlikely presence of creases in the sheets may hamper the drainage
in these areas. The bamboo poles should be inspected to of any sweat that may form during the voyage or bring it into
verify that they are clean and dry. Any young, green bamboo direct contact with the cargo. Due to the potential for cargo
poles should be rejected as they may be crushed by the to come into contact with sweat using this dunnaging
weight of the stow and release moisture which may stain the arrangement, its use is not recommended.
bags. Thin bamboo poles may not provide sufficient General Dunnaging Considerations
separation between the steelwork and the cargo and should As ship sweat does not usually form on internal hold
not be used. Insufficient quantities of bamboo poles will bulkheads or the engine room bulkhead, the principal purpose
produce large gaps between adjacent poles and may not of dunnage in these locations is to provide a barrier between
prevent bags from touching the hold steelwork. Consequently, the cargo and the steelwork to prevent rust staining and to
checks should be made before loading to ensure that sufficient protect the bags from minor physical damage. The dunnage
materials of acceptable quality are available for dunnaging may consist of kraft paper, matting or plastic sheets. However,
purposes. if the forepeak tank is to be ballasted with cold water, sweat
Timber may sometimes be used instead of bamboo, laid out may form on the forward bulkhead of No 1 hold, requiring
as “double dunnage” in a similar manner to the bamboo poles, additional dunnaging in this area.
again with the first layer running fore and aft. The wood should Although kraft paper is used extensively in the dunnaging of
be of sufficient thickness, clean, dry, resin-free and without bagged rice cargoes, its limitations need to be recognised.
damage or odour. Kraft paper is used to minimise the possibility of damage due
The bamboo dunnage on the tank top, lower hoppers and on to rust staining and abrasion but provides little protection
the side shell plating should be covered with reed or rattan against wetting. Once saturated, kraft paper is easily damaged.
mats, or with kraft paper. Areas of steelwork where the On some occasions the shipper may attempt to save costs by
formation of ship sweat is unlikely (eg bulkheads between reducing the quantity of dunnage, for example by providing
holds), or where sweat migrating to the bilges will not generally only one layer of bamboo poles. In such an event the master
pass, need only be covered with matting or kraft paper when should issue a letter of protest immediately.
the bags are loaded to protect against staining, chafing and
minor physical damage.
 Loss Prevention Bulletin

The Allied Maritime dunnaging arrangement

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Styrofoam boards and plastic sheeting used in the Allied Maritime dunnaging arrangement
Moisture Content, Temperature and Sampling necessary to arrange for samples to be taken jointly with cargo
interests and sent to a mutually acceptable laboratory for
Moisture Content accurate analysis. The Club’s local correspondent should be
The moisture content of rice is an important factor in its able to advise which laboratories are suitable.
successful carriage. Rice is a hygroscopic commodity that can
either absorb or release moisture. Excessive amounts of Temperature
inherent moisture reduces storage life and increases the risk The surveyor should check and record the temperature of the
of mould, discolouration, decay, malodour and caking (ie when rice regularly throughout loading. Rice delivered to the vessel
rice grains stick together). “Moisture migration” from the directly from the mill after processing may be significantly
warmer to the cooler parts of the cargo may also occur, warmer than rice has been stored in a warehouse, possibly
possibly causing the cargo to deteriorate in the latter areas. It resulting in cargo deterioration or self-heating on passage. If
is therefore important that the rice is not unduly moist when concerns arise during loading that the temperature of the rice
presented for shipment and is kept as dry as possible may be excessive, the Club should be contacted for advice.
throughout loading, on passage and during discharge. Records showing the temperature of the rice during loading
When harvested, rice still in its husk will have a moisture will also be required if the vessel is planning to ventilate the
content of up to 30%. The rice will then be dried, either cargo holds using the “Three Degree Rule”.
mechanically or naturally, the former method being more Sampling
effective. On completion of drying the rice will generally have Representative samples of rice taken periodically during
a moisture content of less than 20%. Milling and additional loading can be of assistance in defending claims if the cargo
processing reduces the moisture content still further. deteriorates on passage. However, a full time sampling team
The moisture content of a rice cargo should not exceed 14% would need to be present throughout the entire loading
at the time of shipment. Typically the moisture content will be process for the samples to be truly representative of the cargo
between 12% and 14%. Since any figure certifying the as a whole.
moisture content will always be an average amount, it should Rain
be borne in mind that some of the rice may have a moisture Since rice is highly susceptible to water damage, it is good
content up to 0.5% higher. Some shippers may attempt to practice to keep all hatch covers closed during cargo
export rice before it has dried sufficiently for shipment, mixing operations other than the holds being worked. The weather
it with rice with a lower moisture content to obtain an average conditions should be monitored closely throughout, ideally
of 14% or less. In such cases the rice with a high moisture using the 3 cm radar (if permitted by the port) to provide early
content may still deteriorate and damage other rice in the warning of approaching rain so that cargo operations can be
immediate vicinity while on board. Rice with a moisture content suspended and the hatch covers closed in good time. The use
of 13% can usually be stored for approximately 12 months. of tarpaulins or hatch tents over open hatches is not
Since rice is sold by weight, unscrupulous shippers may not recommended as they often fail, resulting in water pouring on
be particularly concerned if the moisture content is to the cargo.
unacceptably high at the time of shipment. They will also be A close eye should be kept on rice arriving by truck or barge,
aware that if the excessive moisture content causes the rice particularly if not protected by tarpaulins, looking for any signs
to deteriorate on passage, the receiver will usually allege that that the bags may have been exposed to rain. If wooden
the vessel failed to ventilate the cargo correctly. barges are used, checks should be made to confirm that the
Given the claims-sensitive nature of bagged rice, it is bags have not been affected by water leaking through the hull.
customary to appoint a local surveyor. The local surveyor will On some occasions the charterer may ask the master to load
often be equipped with a portable moisture meter to test and rice during rain in exchange for a Letter of Indemnity (LOI),
record the moisture content of the rice prior to and during sometimes referred to as a “Rain Letter”. The master should
loading. Portable moisture meters need to be calibrated not agree to such a proposal as the charterer may still maintain
specifically for rice and may only be accurate to +/- 0.5% even that any subsequent deterioration of the cargo was due to
when functioning correctly. It is not unusual to find inaccurate inadequate ventilation on passage rather than rain damage.
portable moisture meters being used, therefore the results More importantly, and irrespective of a Letter of Indemnity,
obtained from them should be treated with caution. intentionally loading rice during rain may prejudice Club cover
If the average moisture content of the rice is declared to be on the grounds that such an act was imprudent or improper
over 14%, or if the portable moisture meter readings taken by contrary to the provisions of Rule 19(1).
the local surveyor indicate a moisture content approaching this
figure at any stage, the Club should be informed as it may be
 Loss Prevention Bulletin

Cargo Space Ventilation Ventilation needs to be considered whenever the hatch covers
are shut and the holds contain rice, regardless of quantity. This
Since rice is hygroscopic and readily absorbs and releases
also includes periods in port if the hatch covers are closed due
moisture, it is essential that correct ventilation procedures are
to rain, or if the vessel is required to anchor at the discharge
followed in order to:
port prior to berthing. However, if the cargo is fumigated on
• Remove moist air from the cargo holds, and departure the holds should remain sealed and ventilation
• Prevent the formation of ship sweat which may wet and should not take place until the end of the waiting period
damage the cargo. specified by the fumigation contractors.
Since these two requirements are interlinked, the principles of The formation of ship sweat is highly likely when passing
ventilation need to be understood and applied correctly to through colder waters regardless of the ventilation method
ensure that the cargo is discharged in good condition. employed, such as passing South Africa when trading
Tests and Checks between South East Asia and West Africa. This reinforces the
Prior to loading the entire ventilation system for the cargo holds need for careful dunnaging to prevent contact between the
should be checked. Where fitted, the hold fans should be cargo and any steelwork on which sweat may form or pool.
tested to ensure that they are functioning correctly. Mechanical
In order to defend any claims for cargo damage it is essential
ventilation rather than natural ventilation tends to be slightly
more effective in achieving sound outturns. that the vessel maintains a detailed ventilation log, including
temperatures and times of starting and stopping ventilation.
Ventilation Requirements These may be used to demonstrate that the cargo was
Ventilation of the cargo spaces should be carried out properly ventilated in accordance with industry best practice
according to either the “Dew Point Rule” or the “Three Degree whilst on board. If it was not possible to ventilate as required
Rule”. Due to the difficulty of obtaining accurate dew point due to the weather conditions, such details should also be
measurements from within closed holds, the “Three Degree recorded. Similarly, copies of any fumigator’s instructions
Rule” is considered to be a more robust method for regarding the length of time the holds should remain sealed
determining when ventilation should be carried out. should be retained as it may be necessary to show that the
Consequently, cargo temperatures should be taken and vessel could not ventilate at a critical time during the voyage.
recorded throughout loading to enable this rule to be applied.
Detailed guidance on the two ventilation rules can be found in When weather and sea conditions permit, and if a full risk
the Club’s Loss Prevention Bulletin “Cargo Ventilation and assessment has been carried out and it is deemed safe and
Precautions to Minimise Sweat”. practical to do so, consideration may be given to opening
sliding or folding hatch covers slightly to aid ventilation of the
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When a bag rests against steel that has been wetted damage will result
 cargo when required. This may be beneficial during extended • Prevent stevedores from using equipment that may cause
stays at anchor while awaiting a discharge berth. cargo damage

Bilge Soundings • Ensure the cargo is stowed in accordance with industry best
Cargo hold bilge soundings should be taken and recorded practice
twice daily. If water is found to be accumulating in the bilges, • Arrange for bags to be weighed at random to check that
the source should be investigated at the earliest opportunity. If they are not underweight
it is necessary to pump out the bilges, a written record should • Reject torn bags
be maintained of the quantity of water pumped overboard.
• Decline bags which appear to be contaminated (eg water,
oil, foreign matter)
Loading Operations • Refuse any bags exhibiting signs of deterioration (eg damp,
mould, rot, discolouration, unpleasant odour)
Charterer’s Instructions
In some cases the charterer may provide the vessel with • Assist the master to clause the Mate’s Receipts and Bills of
written instructions regarding the loading, stowage, carriage, Lading as necessary
ventilation and discharge of the rice. Reasonable instructions, When bags have been rejected, a careful watch should be
including demands for ventilation channels, should always be kept to ensure that no attempt is made to hide the rejected
followed as evidence of non-compliance may weaken the bags under sound cargo about to be loaded in the hope that
vessel’s position if the cargo deteriorates on passage. they will not be noticed. This can be a particular problem when
loading from barges.

To avoid possible conflicts of

interest, Members should appoint a
protecting agent rather than relying
on the charterer’s agent. Similarly,
the sharing of surveyors and tally
clerks with cargo interests to save
on costs is not recommended.
Invariably the clerks will be
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appointed by cargo interests and

the cargo figures will often favour
the appointing party to the
detriment of the owner.

If possible, the master should ask to

see the appointment details of the
surveyors and tally clerks instructed
by cargo interests to ascertain
The number of bags in each sling should be determined by accurate tallying
precisely who they represent.
Subject to crewing levels and compliance with hours of rest
regulations, the vessel should also endeavour to conduct its
Surveyor and Tally Clerks own tally, comparing the ship’s figures at the end of each shift
Members are advised to appoint their own surveyor and tally with those produced by other parties. Details of reputable
clerks at the load port. The surveyor should be instructed to: surveyors and tally clerks may be obtained from the Club’s
local correspondent on request.
• Check the condition of the rice
• Monitor and record the moisture content and temperature Since rice may be pilfered or lost en route to the vessel, the
of the rice cargo should be tallied during loading rather than at the
warehouse or barge loading facility prior to delivery.
• Confirm that all dunnaging material is suitable and properly
laid If it is found that tally clerks are assuming that each sling or
 Loss Prevention Bulletin

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Bags should be carefully slung to avoid damage

net contains a standard number of bags rather than ashore for delivery to the receiver. Such bags should be clean,
determining the exact quantity, a letter of protest should be dry and suitably stowed for the voyage.
issued.
Cargo Separation
Cargo Damage If the vessel is to discharge at more than one port or if there
Any bags presented that are wet, damp, stained, torn, are several receivers, it is essential that the different parcels of
malodorous or contaminated should be rejected and replaced rice are separated both horizontally and vertically to minimise
with sound cargo. Bags damaged during loading or found with the possibility of the incorrect number of bags being
loose stitching should be returned ashore for repair or discharged.
replacement. Stevedores should be warned against using
Infestation of Cargo
hand hooks when stowing the cargo to avoid piercing the
Rice cargoes are susceptible to infestation, particularly if stored
bags and spilling the contents. They should also be instructed
for several months before shipment. Rice transported to the
to use slings that will not damage the bags. Final stowage of
vessel aboard barges that have not been properly cleaned
bagged rice should always be carried out by hand.
may be exposed to a similar risk. Should the cargo exhibit any
If any bags are damaged during loading in spite of such signs of infestation (eg beetles, weevils, moths, rodents), the
precautions, for example by the extensive use of hand hooks Club should be notified immediately as expert advice may be
contrary to the vessel’s instructions, the Mate’s Receipts required.
should be claused accordingly. It is essential that any clauses
Cargo Fumigation
added to the Mate’s Receipts are accurately reproduced on
It is common for rice cargoes to be fumigated on completion
the Bills of Lading regardless of whether they are to be signed
of loading. The instructions of the fumigation contractors
by the master or by an authorised third party. Consideration
should be strictly followed, and warning notices should be
should be given, where commercially possible, to clausing the
placed on all hold access arrangements stating that fumigation
Bills of Lading with the words “London Arbitration and English
is in progress and that entry is prohibited. Reference should
law to apply”. This can be useful if cargo interests attempt to
be made to MSC.1/Circ.1264 “Recommendations on the Safe
use a legal forum that may be sympathetic to their claim.
Use of Pesticides in Ships Applicable to the Fumigation of
Empty bags will normally be provided by the shipper so that Cargo Holds” as amended. The cargo holds should remain
rice spillages during discharge can be re-bagged and landed sealed and ventilation should not resume until the end of the
waiting period specified by the fumigation contractors. It has Copies of all cargo documentation (eg cargo quality
been reported that some rice shipments from Thailand, certificates if provided, tally reports, statements of fact, cargo
Myanmar and Vietnam have been fumigated with methyl manifests, stowage plans, letters of protest, photographs,
bromide while in transit, contrary to IMO recommendations Mate’s Receipts, Bills of Lading) should be retained on board.
that methyl bromide should only be used in port with no crew
Photographs
on board. If cargo interests state that they plan to fumigate the
Ideally, high resolution digital photographs of the dunnaging
holds during the voyage using methyl bromide, permission
arrangements should be taken prior to loading. Photographs
should not be granted and the Club should be contacted for
of the stow and the ventilation channels (if built) should also
advice.
be taken at regular intervals during loading. All photographs
One of the most common fumigants in use is phosphine which should be captioned or catalogued so that the hold and the
is a colourless and extremely toxic gas, which smells of garlic location within the stow can be identified. Such evidence may
at low concentrations. Aluminium phosphide tablets or pellets prove to be very useful in helping to defend any claims that
are placed on the surface of the cargo and release phosphine may arise at the discharge port.
gas after reacting with moisture in the air, leaving behind
Letters of Protest
deposits of grey-white powder on top of the cargo. Since the
If it becomes necessary for the master to issue a letter of
presence of residues may cause difficulties with some
protest during loading or discharge, as many details as
receivers and/or the stevedores at the discharge port, it is
possible should be included regardless of the recipient (eg
recommended that the fumigation contractors are asked to
shipper, receiver, charterer, stevedores, agent). Remarks of a
use small bags or sachets of aluminium phosphide specially
general nature should be avoided as they may weaken the
designed to capture such deposits. It should also be noted
owner’s case in the event of a subsequent cargo dispute.
that the United States Environmental Protection Agency does
not permit any processed commodity, such as milled rice, to A letter of protest may be warranted in the following
come into contact with aluminium phosphide residues. circumstances, but the list is not exhaustive:

IMO recommends that fumigated cargo is discharged by • Rice which appears to be visibly wet, mouldy or heated
mechanical means only. However, this is practically impossible • Vessel’s crew and/or surveyor prevented from taking rice
in the case of bagged rice. samples
Sealing Cargo Holds • Insufficient dunnaging material provided to the vessel
To minimise the risk of shortage claims it is advisable for the • Dunnage supplied in a dirty or wet condition
vessel’s surveyor to seal the hatch covers and hold accesses
• Poor quality dunnage being used (eg small diameter or
upon completion of loading, preferably witnessed by the
young bamboo poles)
surveyor appointed by cargo interests. Prior to closing the
hatches it is recommended that high resolution digital • Dunnage not laid in accordance with standard industry
photographs are taken of the cargo stow and dunnaging practice
arrangements. • Bags damaged by the use of hand hooks or inappropriate
slings
Draft Survey
If the weight of the cargo is to be entered on Bills of Lading • Cargo not stowed in accordance with industry best practice
either in place of, or in addition to the number of bags, initial • Damaged cargo not replaced with sound cargo
and final draft surveys should be undertaken at both the load • Signs of cargo infestation
and discharge ports. Again, the surveyor representing cargo
• Signs of cargo deterioration
interests should be invited to attend. Invitations should be in
writing and, if possible, should include a sentence stating • Pilferage by stevedores or other parties
“Please be informed that the findings and results of the draft • Cargo operations continuing during rain
survey will be considered joint and binding”. • Tally clerks using an assumed figure for the number of bags
Records in each sling or net
A comprehensive log of all cargo operations should be • Cargo loaded from or discharged to wet facilities (eg wharf,
maintained by the vessel including details of any stoppages. trucks, barges)
 Loss Prevention Bulletin

• Cargo tallied anywhere other than on board or alongside the All tallies should take place on or alongside the vessel.
vessel (eg warehouse) However, it is not uncommon for receivers to tally the cargo
• Failure of receiver’s surveyor to sign the vessel’s outturn only when it arrives at their warehouse, increasing the risk of
reports cargo being lost or pilfered en route. The master should issue
a letter of protest should such a situation arise, making it clear
If any letters of protest regarding the condition of the cargo are that the receiver’s tally was not conducted on board.
issued at the load port, the Mate’s Receipts and Bills of Lading
should be claused accordingly. In the event of a shortage claim that leads to litigation or
arbitration, the methods employed to tally the bags may be
scrutinised. As far as possible the following information
Discharging Operations regarding the tallying operation carried out on behalf of the
vessel and by all third parties should be recorded:
Surveyor and Tally Clerks
To minimise the possibility of shortage or quality claims, • Details and times of any cargo holds discharged
Members are advised to appoint a local surveyor and a tally concurrently
company at the discharge port. The local Club correspondent • The number of tally men per hold acting for the vessel and
will be able to provide details of independent local survey and for each third party respectively
tally companies that they consider to be reputable and
• The location of the tally men (eg in the hold, on deck, on the
trustworthy. Since cargo interests will almost certainly make
quay)
similar arrangements, the master should record the details of
all surveyors and tally companies appointed and who they • The tallying methods used (eg whether the bags were
represent. Subject to resources and compliance with hours of counted individually or if it was assumed that each sling or
rest requirements, a further tally should be carried out by the truck contained a certain number of bags)
crew to monitor the figures produced by the tally companies • Whether the third party tallies were carried out individually,
acting for the vessel and cargo interests respectively. It is also or if there appeared to be collusion between them regarding
recommended that Members appoint their own protecting the number of bags discharged.
agent rather than the agent acting for the charterer.
Photo courtesy of: ETIC/Africa P&I Services

The large number of bags involved means accurate detailed tallying is necessary
 Unsealing Cargo Holds corresponds with possible contact with steelwork. If
The surveyor appointed by cargo interests should be invited surrounded on all sides by sound cargo, the bags may have
to attend when the vessel’s surveyor removes the seals at the been damaged before loading by rain or while on board a wet
discharge port. Once the hatch covers are opened, high barge. Alternatively, cooling at the edges of the stow or
resolution digital photographs of the cargo surfaces and pockets of self-heating may have produced a temperature
coamings in each hold should be taken before the bags are differential resulting in moisture migration, or the rice itself may
discharged. Such photographs will provide clear evidence of have been excessively moist on loading resulting in localised
the apparent condition of the top of the cargo on arrival and deterioration. Water damage to bags on the tanktop, lower
may help to refute any subsequent allegations of hatch cover hoppers and at the ship’s sides is usually indicative of contact
leakage. with ship sweat.

With multiple discharge ports it may be worthwhile re-sealing If various bags are found to be discoloured or stained brown,
the holds containing cargo after each intermediate discharge checks should be made to determine whether they were
port as there have been instances in the past where vessels stowed against a hot surface such as heated fuel oil tanks.
arriving with unsealed holds have been fined by Customs. Parboiled rice seems to be more susceptible than others to
Local port agents should be consulted in this respect. this type of damage.

Cargo Condition Glazed white rice may be affected by caking if the coating was
If the top tier of bags or the kraft paper covering the surface not properly applied or was otherwise defective, rather than
of the stow show signs of water damage or water stains, the due to excessive moisture.
location of the damage in relation to the hatch coamings, Any evidence of damage or deterioration should always be
hatch vents and hatch cover cross joints should be recorded photographed, recorded and reported to the company
and photographed. Fresh rust stains or streaks on the inside immediately. The surveyor acting on behalf of the ship should
of the hatch coamings, on the underside of the upper hoppers also investigate the damage to ascertain whether it was
or on top of the bags or kraft paper may signify sea water caused by the vessel, a third party or an inherent vice of the
ingress on passage. Testing for chlorides with silver nitrate will cargo. Depending on the extent, severity and cause of the
generally indicate whether or not this was the case. damage, it may be necessary to appoint an expert to provide
further advice.
Any damp or water damaged bags found during discharge
should be recorded and photographed, noting their precise If rice is seen to suffer damage after it has been discharged in
location within the stow and whether the staining/wetting sound condition (eg if bags are left standing on the quay during
Photo courtesy of: ETIC/Africa P&I Services

Photo courtesy of: ETIC/Africa P&I Services

Moisture found behind plastic sheeting used in the Allied Maritime dunnaging Kraft paper showing rust spots and signs of having been wetted and then dried
arrangement
 Loss Prevention Bulletin

Photo courtesy of: ETIC/Africa P&I Services

Traditional dunnaging arrangement with evidence of the passage of moisture over the lower hopper

rain or if bags on trucks or barges are not promptly covered sign such outturn reports, adding any qualifying comments as
with tarpaulins during rainfall), the master should issue a letter necessary. Both sets of tally figures will almost certainly differ
of protest as a precaution. each day. However, this is not necessarily a cause for concern
unless the difference is large. In such an event, or if the figures
If rice is loaded in very cold conditions (eg Northern China in
are identical, the local Club correspondent should be
winter) and is discharged in a much warmer location, cargo
contacted for advice.
sweat may form on the bags during discharge or after landing
ashore. Such bags should not be placed into storage until the Cargo Faces
sweat has dried off. The officer in charge of the cargo watch should ensure that
Outturn Reports the stevedores discharge the bags evenly and do not leave
The tally clerks should be instructed to prepare an outturn any high, exposed, vertical cargo faces. Unsupported cargo
report documenting the number of sound bags and the faces often collapse, resulting in fatalities, injury and cargo
number of damaged bags discharged each day. The type of damage.
damage should be specified (eg torn, damp, wet, mouldy, Cargo Sweepings
stained or caked). The records should also state the number When sweepings are re-bagged, the new bags are often over-
of bags filled with sweepings from the hold, pilfered, lost filled to the point where they may exceed the weight of a
overboard during cargo operations, found empty, or gifted by standard sound bag by a significant margin. If the amount of
cargo interests to third parties. sweepings on board is large, this may result in an apparent
If the master is asked to approve daily outturn reports shortage. Similarly, counting errors may arise if tally clerks
produced by tally clerks acting for cargo interests, he should assume that each sling or net contains a specific number of
sign them “for receipt only”. However, if cargo interests are bags rather than determining the actual quantity. If either
willing to endorse the vessel’s tally records, the master may practice is observed, a letter of protest should be issued.
Photo courtesy of: ETIC/Africa P&I Services

High unsupported cargo faces should be avoided due to the danger of collapse

Pilferage and Theft from returning. Any holds not being worked should be closed
The risk of rice being pilfered or stolen in many discharge ports and accesses locked.
is well recognised. Typically, stevedores inside the cargo holds
Should pilferage begin to escalate beyond control, the vessel
will cut open bags and transfer the contents into small plastic
may threaten to close the hatch covers and suspend cargo
bags, concealing them under their clothing when they leave
operations until all parties agree an appropriate course of
the ship. While one may sympathise with those who take a
action. However, such a step should not be taken lightly and
small quantity of rice to feed themselves and their families, it
both owners and the local Club correspondent should be
is not uncommon for such a practice to be organised by local
consulted first. If it is necessary to halt cargo operations due
racketeers and for stevedores to make several trips ashore
to pilferage, the stoppage should be kept to a minimum as the
with pilfered rice during the same shift.
port authority may order the vessel to vacate the berth if there
Stevedores who are challenged can be threatening or violent are other vessels waiting to discharge, or may impose a fine
and may also try to intimidate security personnel so that they for occupying a berth while idle.
can continue their pilfering activities unhindered. On a
If these measures fail to reduce pilferage, the master should
somewhat larger scale there have also been cases where rice
has been discharged directly into trucks operated by thieves issue a letter of protest holding cargo interests responsible for
rather than the receiver. such losses and circulate it to all interested parties.

In order to control pilferage it is recommended that Members Records

appoint their own security guards, preferably with dogs, as a A comprehensive record of cargo operations should be
deterrent. Although it is unlikely that such measures will maintained by the vessel throughout discharge, including
eliminate the risk, it is possible that potential thieves may look details of all stoppages.
for an easier target elsewhere. Photographs
Anyone seen inside a cargo hold who does not appear to be High resolution digital photographs of the cargo and discharge
a stevedore should be asked to leave. If pilferage is observed, operations should be taken throughout. However, this may not
those involved should be told to stop and security personnel be possible in some ports where the stevedores may react
should be instructed to escort them ashore and prevent them aggressively.
 Loss Prevention Bulletin
Photo courtesy of: ETIC/Africa P&I Services

Large quantities of sweepings may give rise to an apparent shortage due to overfilling of bags

Rice in Bulk Dust

Dust can be produced during loading operations, although
International Grain Code
usually less than for bulk grain. However, it may be advisable
The safe carriage of rice in bulk is governed by IMO’s to protect sensitive equipment such as radar scanners and for
“International Code for the Safe Carriage of Grain in Bulk”, also personnel on deck to wear suitable Personal Protective
known as the “International Grain Code”. To meet the required Equipment (PPE) such as safety goggles, dust masks and long
stability requirements, holds are usually filled so that there is sleeved overalls.
minimal or no free air between the top of the stow and the top
Surveyor
of the hold. In partly filled holds the cargo may be covered with
In common with rice in bags, rice is equally claims-sensitive
tarpaulins or similar and either overstowed with bags or other
when carried in bulk. Members are again advised to appoint
suitable cargo. In both cases this makes ventilation difficult.
an independent surveyor and their own agents at the load and
However, standard ventilation procedures should still be
discharge ports to protect their interests. The surveyor should
followed and recorded.
be instructed to:
Hold Preparation • Conduct initial and final draft surveys
In addition to ensuring that the cargo holds are cleaned in
• Check the condition of the rice
accordance with the section on Hold Cleanliness, all steelwork
coatings inside the holds should be in good condition (eg tank • Monitor and record the moisture content and temperature
tops, hopper tanks, topside tanks, undersides of hatch covers, of the rice
ladder rungs, vent pipes). In addition, the charterer or shipper • Check for any infestation or contamination of the rice
should be asked whether they have any specific hold cleaning • Reject any unsound rice
requirements to minimise the possibility of delays and • Provide the vessel with sealed cargo samples taken
additional expenditure at the load port. throughout loading from all holds
Bilge plates should be covered with burlap (hessian) cloth or • Seal the cargo holds on completion of loading/unseal the
similar to prevent rice from entering the bilge wells. cargo holds prior to discharge
 Loss Prevention Bulletin

• Assist the master to clause the Mate’s Receipts and Bills of

Lading as necessary

Appointing a single surveyor or port agent to act for both cargo

interests and the vessel is unwise as the surveyor will be
inclined to favour the former. Employing independent security
guards at the discharge port is recommended. Cargo interests
should be invited to attend all draft surveys and the
sealing/unsealing of the holds.

Bagging upon Discharge

Bulk rice will sometimes be bagged on the wharf under the
ship’s hooks. Cargo interests and their surveyors will often
produce daily outturn reports stating the number of bags
discharged. When presented with such reports the master
should add suitable remarks to make it clear that the amount
of cargo discharged was not measured accurately and was
based on a theoretical weight per bag (usually 50 kg).Bagging
machines are notoriously inaccurate and need to be re-
calibrated and the weight of bags rechecked on a regular
basis, ideally at least once an hour. As far as possible,
surveyors should weigh bags produced by bagging machines
at random to check for anomalies.

Records and Photographs

A comprehensive log of all cargo operations should be kept
by shipboard personnel including details of any stoppages. A
photographic record should also be maintained, ideally taking
high resolution digital images of the rice being loaded, the top
of the stow in each hold before the hatch covers are closed,
the condition of the cargo when the hatch covers are opened
at the discharge port and at frequent intervals during discharge.

Members requiring further guidance should contact the Loss

Prevention department.

West of England Insurance Services (Luxembourg) S.A., Tower Bridge Court, 226 Tower Bridge Road, London, SE1 2UP
Loss Prevention Dept: T: +(44) (0)20 7716 6106 F: +(44) (0)20 7716 6061 E: loss.prevention@westpandi.com W: www.westpandi.com