59 - 07/98 - Sugar Problems - Worldwide

We are aware of several current sugar damage claims which are giving rise to concern. In these cases small amounts of damage are noted but whole cargoes are being rejected. Large demands for security are then made. It is possible these unreasonable claims are being driven by a glut of sugar on the market at the moment.

 We are led to believe that due to good weather conditions in the southern hemisphere, countries exporting cane sugar are experiencing record harvests.This, coupled with reduced demand in the Asian markets, is leading to sharp falls in the price of sugar. Owners/claims handlers should be alive to the fact that receivers caught in a falling market may be extremely fussy about what they will and will not receive!

We would further refer Members to BULLETIN 1 - 04/97 - Sugar Claims ex Santos (Brazil) when similar trade related problems  also gave rise for concern.


Source of Information :

External through Karl Lumbers

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