Essential advice on how to avoid claims arising from the transportation of steel cargo

Avoiding claims from the transportation of steel cargo is the subject of a new guidance publication by The American P&I Club
Avoiding claims from the transportation of steel cargo is the subject of a new guidance publication by The American P&I Club

The handling, stowage and transportation of steel cargo has been an ongoing focus of P&I loss prevention activity. The American P&I Club has published its latest publication: Transport Guidance for Steel Cargoes, which is a detailed guide (downloadable in pdf format below) running to some 100 pages with a view to offering a comprehensive overview of how to avoid claims arising from the carriage of these cargoes from a variety of related perspectives.

The frequency and costs of steel cargo related claims experienced by the American Club between 2000 and 2015 have been substantial. During this period, steel cargo claims have accounted for an astonishing US$ 15.4 million in financial losses to the Association.

Shortages in landed quantities accounted for the largest frequency of claims incidents, but were generally not as costly. Wetness and contamination related damages accounted for 23% of the frequency of steel cargo claims and 40% of the cost of steel cargo claims. Also, cargo shift, stowage and inclement weather were significant contributors to damages to steel cargo which led to claims incidents accounting for almost 30% of the frequency and 32% of the cost of steel cargo claims during this same time period.

The Transport Guidance for Steel Cargoes provides loss and claims prevention guidance to vessel owners, ship managers, seafarers, shippers, charterers and others engaged in the trade of transportation of steel cargo by ship. Furthermore, the guidance excludes the transport of steel cargoes carried on deck, steel products carried as required by the International Maritime Solid Bulk Cargoes (IMSBC) Code and steel cargoes carried in containers.

There are a number of types of damages that steel cargoes can experience as specified in the hatch covers, hold structures, ventilation systems, bilge systems and relevant piping systems that may affect the integrity of the cargo holds as a whole should be in a satisfactory condition.

The Guidance focuses specifically on hazards and hazard contributors/mechanisms that lead to damages to steel cargoes and to other situations arising, that are described and summarised.

Download the 100 page publication: Transport-guidance-for-steel-cargoes

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