533 - 07/07 - Bagged rice shortage claims - Durban, South Africa

Bagged rice shortage claims are common at West Coast ports of Africa, but the Club’s correspondent in Durban reports of a notable increase in these claims in South Africa.

Shortage claims in the past have been infrequent and normally involved a small number of bags of rice missing from whole shipments, but there has been a marked increase in the number of claims and forceful demands for security by cargo underwriters.

In South Africa there has been an obvious increase in the number of shortage claims on ships where a surveyor was not present during the discharge and particularly where the ship did not conduct a tally. As soon as the receiver is aware that a ship is not conducting a tally, the receiver is very likely to lodge a claim for shortage.

Most ships are now discharging rice cargoes at leasehold berths and therefore the port no longer conducts tallies. The cargo is palletized on board and landed directly on to road transport and taken to a private warehouse for distribution. Shortage claims are now typically equivalent to a truckload or two. When shipping rice to South Africa, ensure a surveyor is appointed to be in attendance throughout the discharge and a private tally should be arranged. These steps should ensure evidence is available in order to prove that the full consignment of rice is landed in the event of a dispute.

Source of information:  P&I Associates (Pty) Ltd.

Durban, South Africa

Tel: +27 31 368 5050

Email: reida@pandi.co.za

The carriage of rice from the Far East to West Africa

The transportation of bagged rice by sea from the Far East to West Africa at this time of year results in claims for cargo damage caused by condensation. Members can find detailed advice on preventing this damage, including ventilation and other influencing factors, in the Loss Prevention FAQ database by logging on to the Club website. 

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