1025 - 02/15 - Sampling of Bauxite Cargoes - Malaysia

Further to our LP Bulletin 1017, we received the following update from the local correspondent in Singapore.

Owners and Charterers have continued to lift bauxite cargoes with various levels of inspection, sampling and analysis taking place, although not in all cases. Shipper’s reluctance to allow the inspection of stockpiles remains almost universal and concerns about the condition of the cargo are still present.

Reports from Kuantan suggest that the Port Authority is in a process of implementing new regulations, specifically for P&I Surveyors appointed for vessels lifting Bauxite and Iron Ore shipments. Even though a formal announcement has not yet been made, local representatives have been advised that the following requirements will become mandatory:

1) Formal notification to the port that Owners have appointed surveyors to inspect cargo in vessels’ holds and on stockpiles;
2) Formal notification to the port from the Shippers that surveyors have been appointed to inspect cargo on the wharf and at the stockpile. (This appears to refer to Owners’ Surveyors);
3) Surveyors must produce both letters to the Port and will be escorted at all times by Port Police;
4) There will be charges according to 3) above.

Considering the fact that until now the Shippers have been generally unwilling to allow access to stockpiles, it appears highly unlikely that they will agree to the appointment of P&I surveyors. If that is the case and the surveyor fails to produce a letter of appointment from the Shipper, the port authorities have confirmed that the surveyor would not be allowed to inspect cargo on the wharf or at the stockpile.

Members can contact Spica Services Malaysia for the latest developments if their ships are ordered to load bauxite or iron ore from Malaysia.

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