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BIMCO Solid Bulk Cargoes that can Liquefy – BIMCO Clause

SSM Roundel

Steamship Mutual

Published: November 01, 2012

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The liquefaction of solid bulk cargoes (in particular, nickel ore loaded in Indonesia and the Philippines) is a significant issue and one that has caused, or at least contributed to, an alarming loss of life, vessels and cargo in recent years. For every serious incident, there will no doubt have been several near misses that have gone unreported. Many of these might have been prevented if cargoes had been accurately described, properly sampled and had documentation displayed independently verified transportable moisture limits (TML).

Notwithstanding the requirements of SOLAS and the IMSBC Code, wherein fine particulate minerals are classified as “Group A” hazards, issues are still arising. The majority of responsible owners are aware of the hazards of liquefaction but are, at the same time, often faced with considerable pressure, intimidation during loading and a lack of a firm mechanism allowing them to sample cargoes prior to loading.

In an attempt to address this, the International Group of P&I Clubs and BIMCO have developed an industry standard clause, which provides the following:

  • An overriding obligation for charterers to ensure that all solid bulk cargoes are presented for carriage in compliance with IMSBC Code and other applicable international regulations;
  • Prior to the commencement of loading, charterers must provide the Master, or his representative with documented information in accordance with the IMSBC Code;
  • Gives owners the right to take samples prior to loading and that these may be tested at an independent laboratory (as nominated by owners). Time and costs for charterers’ account;
  • Express provision for unrestricted and unimpeded access to cargo for the Master or owners’ representative for the purpose of sampling;
  • The Master may refuse to accept/load/sail and call for replacement cargo at his “sole discretion” if “using reasonable judgement” he considers there to be a risk (not limited to liquefaction) to the vessel, crew or cargo; and
  • An indemnity provision in favour of owners for losses, costs, expenses and liabilities that arise from charterers’ instructions or failure to comply with their obligations.

It is recommended that the clause be incorporated into time charters that allow for the carriage of solid bulk cargoes prone to liquefaction and voyage charters fixed for the same purpose. It can be accessed free of charge from the BIMCO website at: www.bimco.org/Chartering/Clauses/Solid_Bulk_Cargoes_that_Can_Liquefy.aspx

Members should contact the Club in the usual manner if they have any questions or concerns relating to this matter.

Article by Nathaniel Harding

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