Steel Cargo Claims

STEEL CARGO CLAIMS / VENTILATION PRACTICES
Ttransit related damage to steel cargoes on account of improper ventilation practices and
condensation related issues. While most Masters and Chief Officers are no doubt aware of
the importance of ventilating cargoes during the voyage, it has become increasingly more
common to find officers that are not aware of the specific requirements for proper ventilation
of steel cargoes.
In many cases, vessel Masters and/or Chief Officers are of the opinion that steel cargoes are to
be ventilated as much as possible during periods of good weather. This practice, of course,
gives no consideration to the prevailing humidity conditions, dew points and temperatures. In
most cases, when ventilation is carried out in this manner without proper regard for dew point
and relative humidity, condensation in the form of cargo sweat and/or ship's sweat will form
resulting in potentially significant cargo claims.
Condensation related claims on steel cargoes, especially those delivered to the United States,
have in the past proven to be costly and time consuming to defend. Over the past 2 years,
high steel prices in the United States, due in part to the demand for steel in China and an
increase in the domestic demand for steel, have resulted in a good secondary market and an
overall low occurrence of significant cargo claims. The present trend, however, is for steel
prices and demand to drop in the United States. As steel prices drop, the potential for costly
steel cargo claims increases due to lower demand and a weak secondary salvage market.
Vessel Owners should take steps to insure that their Masters and Chief Officers are aware of
the proper steps to be taken in order to determine whether ventilation of a steel cargo is
necessary. In order to determine whether or not to ventilate a cargo hold loaded with a steel
cargo, the dew point of the outside air should be compared to the dew point of the air within
the hold. Owners should insure that their vessels are provided with a hygrometer (an
instrument consisting of both a wet and dry bulb thermometer that is utilized to determine
dew point/relative humidity). Furthermore, inexpensive portable wet/dry bulb thermometers
should be placed in each cargo hold in order to determine the dew point of the air in the cargo
hold. A sling psychrometer can also be utilized to measure dew point in the cargo holds.
The basic dew point rules relating to ventilation are as follows:
If the dew point of the air inside the cargo hold is lower than the dew point of the outside air,
ventilation should NOT be carried out.
If the dew point of the air inside the cargo hold is higher than the dew point of the outside air,
ventilation should be carried out.
Consideration should be given to the surface temperature of the cargo, particularly when
cargo is loaded in a cold climate and designated for discharge in a warm climate. Although it
is often difficult to accurately determine the surface temperature of steel cargoes during the
voyage without the use of expensive thermocouples, it should be noted that the temperature of
steel cargoes would increase slowly during a given voyage. In cases where steel cargoes are
loaded in cold climates (such as Baltic Sea and Russian/Ukrainian ports) and designated for
delivery in warmer climates (such as the U.S. Gulf of Mexico or South America), there will
be little to no need for ventilation and steps should be taken to insure that the warm outside air
is not introduced into the hold. If this warmer air is introduced into the hold, condensation
will form on the surface of the relatively colder steel cargoes.
As a general rule, cargoes loaded in a cold climate and being transported to a warmer climate
should NOT be ventilated. Conversely, cargoes loaded in a warm climate and being
transported to a colder climate should be ventilated.
It is essential that vessel's carrying steel cargoes maintain a clear and concise record of the
temperature, dew point, humidity and prevailing weather conditions be maintained in the form
of a ventilation log. A proper bilge sounding log should also be maintained in order to
document any increase in bilge levels due to condensation formation. Without the benefit of
such records, defending Owner's interests against claims of condensation related rust damage
claims is difficult.
Vessel Owners that intend to employ their vessels in the steel cargo trade should be aware of
the potential for these costly condensation damage related claims and insure that their Masters
and officers take the proper steps to prevent condensation formation during the voyage.

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STEEL CARGO CLAIMS / VENTILATION PRACTICES

The basic dew point rules relating to ventilation are as follows:

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