Carriage of Soybean Cargoes

Best Practices for the Carriage of Soya Beans: Managing Risks and Avoiding Claims 

Introduction 

The export of soya beans from South America to the Far East, particularly from Brazil to China, has grown steadily in recent years and is expected to remain strong through 2026. Brazil has firmly established itself as the world’s largest soya bean exporter, underpinned by record production forecasts and sustained demand from China, the world’s largest importer. 

While global soya bean exports were already projected to increase through 2024 and 2025, this continued growth brings with it heightened risks during transportation, particularly in relation to cargo deterioration, self-heating and moisture-related damage, which continue to generate claims on a seasonal basis, typically aligned with the South American harvest cycle. 

The impact of climate change, including unseasonal and intense rainfall, has further increased the inherent moisture content of soya bean cargoes and exacerbated these risks. Against this backdrop, this article outlines best practices to help mitigate claims arising from the carriage of soya beans. While the focus is on shipments from South America to the Far East, the principles discussed are equally applicable to other grain and oilseed cargoes. 

  

Background 

The United States and Brazil remain the two largest producers and exporters of soya beans globally. However, China has increasingly turned to Brazil as its primary supplier, a trend that has accelerated in recent years due to trade frictions with the US and, more recently, due to clear commercial advantages. 

In November 2025, the Club’s local correspondent in Brazil (Proinde) reported that China had imposed a temporary ban on Brazilian soya beans and suspended five Brazilian facilities operated by major trading companies due to alleged contamination. In the same month, BIMCO reported that, following renewed US-China trade negotiations, China had agreed to purchase 12m tonnes of US soya beans during the remainder of 2025 and up to 25m tonnes per year over the following three years.  

Despite this, recent market developments indicate that China is set to further increase imports of Brazilian soya beans during the first half of 2026. This shift is driven by a combination of abundant Brazilian supply, competitive pricing and favourable tariff treatment compared with US-origin cargoes. 

Brazilian soya bean exports typically gather pace from February as the new harvest reaches export terminals, peak during March and April, and then decline towards the end of the second quarter. A typical voyage from Brazil to China via the Cape of Good Hope takes approximately 35 to 40 days. During this period, the cargo remains vulnerable to moisture migration, self-heating and deterioration, particularly where there are loading delays, extended inland transportation or prolonged storage prior to shipment. 

By contrast, the US exports a significant proportion of its soya beans via the Gulf of Mexico, benefitting from comparatively shorter transit times to East Asia through the Panama Canal and a more mature transport and storage infrastructure. In Brazil, however, export logistics have struggled to keep pace with the rapid expansion of inland farming regions. Congestion, weather-related disruptions and extended barge or truck transit times remain common, particularly during peak export periods. 

These logistical challenges are further compounded by differing quality and moisture standards between load and discharge ports. In particular, variations between Brazilian export standards and Chinese discharge criteria can lead to disputes over whether cargo deterioration occurred pre-shipment or during the voyage, complicating claims handling. 

Soya bean cargo is inherently susceptible to self-heating due to its natural oil and moisture content. Prolonged storage ashore, extended inland transportation or delays at load ports increase the likelihood of deterioration before loading. Once on board, elevated moisture levels combined with long ocean voyages can result in discolouration, mould growth, decomposition, foul odour, caking and heat damage. 

Against this evolving commercial and climatic backdrop, robust loss prevention measures remain essential to minimise exposure to cargo claims. 

  

Loss prevention advice 

To mitigate the risks associated with the carriage of soya beans, the following key measures should be considered: 

Before loading: 

• Ensure that cargo holds are prepared to ‘grain clean’ standards. The holds are required to be dry, clean and free from any odour or contaminants that could potentially spoil the shipment. 

• Check the weathertightness of hatch covers, preferably by the ultrasonic test method, and keep records of these tests. 

• Ensure that all the ballast tanks adjacent to the cargo holds are pressure tested to ascertain watertight integrity. 

• Examine the condition of cargo hold ventilators, access hatches, manhole covers, and air and sounding pipes, and ensure that these are properly maintained with no signs of leakage. 

• Test the cargo holds’ bilge suction and check for any backflow through the non-return valve. Also, test the cargo hold water ingress alarms and dewatering system (if fitted) for proper functioning. 

• Ensure that the bunker tanks adjacent to the cargo spaces that require heating are identified and that measures agreed upon with the ship’s Chief Engineer to ensure that fuel oil is heated to the minimum pumpable temperature are implemented. Bunker planning should be done in advance and steam supply valves should be closed for empty bunker tanks. 

• Obtain a grain and oilseeds quality certificate¹ sufficiently in advance of loading to ascertain the grade and oil/moisture content of the cargo intended to be loaded. Particular attention should be paid to declared moisture content in light of increasingly stringent discharge port acceptance criteria. 

• Consider appointing a surveyor to conduct a preloading survey of the cargo. 

• Obtain clear instructions on cargo ventilation from the shippers/fumigators/charterers and seek timely clarifications if the instructions are contradictory. Forward any instructions from fumigators to charterers and ask for confirmation that owners should comply. If there are any concerns, Members should contact the Club for advice. 

During loading: 

• During the loading process, it is important to visually inspect the cargo regularly to ensure that it is in apparent good order and condition. Check the grain colour and odour for signs of infestation and contamination. Take date- and time-stamped photographs to document the condition of the cargo. 

• Ensure cargo temperature is monitored at regular intervals using a calibrated probe. If elevated temperature or damaged cargo is detected, notify the Club. In such circumstances, the Club will assist in appointing surveyors and experts to carry out cargo sampling and testing. It is recommended that the cargo is representatively sampled according to the sampling methods of the Federation of Oils, Seeds & Fats Associations Ltd (FOSFA) for oilseeds. 

• Ensure that the loading sequence is recorded in all circumstances and that it complies with the stowage, trimming and stability requirements outlined in the International Grain Code. 

• Ensure that the hatch covers are kept closed during periods of precipitation. The weather forecasts should be monitored closely. If cargo is found to be wetted, photographs of ineffectively covered cargo prior to loading, as well as any wetted loading equipment, should be obtained. A letter of protest (LOP) should be issued by the Master and any wetted cargo rejected. Any delays to the loading process should be detailed in the logbook and LOP. 

• In addition to the above-mentioned guidelines, Members with ships loading soya beans in Brazil are recommended to refer to Proinde’s practical guidance on loading soya beans in Brazil. 

During voyage: 

• Soya beans, like other grain and oilseed cargoes, are usually fumigated in transit to prevent insect infestation. The fumigator should provide detailed documentation, including the type of fumigant, method of application, dosage, exposure duration and method of residue disposal. The commonly used fumigants are aluminium or magnesium phosphides, which come in pellet form. These pellets are spread uniformly on the cargo or inserted beneath the layers using retrievable sleeves. It is important to comply with IMO recommendations on the safe use of pesticides in ships applicable to the fumigation of cargo holds (MSC.1/Circ.1264, as amended by MSC.1/Circ.1396). 

• Ensure that the cargo ventilation is conducted with due consideration to the best seamanship practices, fumigator’s instructions and voyage orders. It is recommended to assess the situation every four to six hours, since changes in weather and sea conditions may affect when ventilation should be undertaken. 

• The decision to ventilate should be based on either the ‘Three Degree Rule’ or ‘Dew Point Rule’ when the weather/sea conditions permit. For hygroscopic cargoes such as soya beans, the Three Degree Rule is normally recommended. Alternatively, the control of moisture in the cargo holds can be done by using dehumidifiers. 

• Ensure that regular checks of ambient and cargo temperatures are conducted throughout the voyage, and maintain a detailed ventilation log. In addition to recording ventilation periods, this log should also include reasons for not ventilating, such as bad weather, fumigation, etc. 

• When carrying heat-sensitive cargoes such as soya beans, it is recommended to isolate the electrical supply leading to the cargo holds. 

• There have been several incidents of soya bean cargo damage due to bunker tank heating. Ensure that temperature records for bunker tanks during the voyage are duly maintained. 

At discharge port: 

• Ensure that all relevant parties are invited to attend the vessel when the hatch covers are opened to inspect the cargo surface for any signs of damage or condensation. Record the condition of the cargo with associated date- and time-stamped photographs. 

• If the vessel experiences a delay, notify the Club, issue an LOP and put the charterers on notice. If the delay may result in cargo damage, the Club will appoint competent surveyors to witness the hatch opening and to check the appearance and temperature of the cargo. 

• In such circumstances, it is recommended that representative samples of the cargo are taken following the same FOSFA guidelines that were employed when loading. Segregate any damaged cargo to minimise claims. 

• Ensure that the subsurface temperatures are regularly monitored, using calibrated probes to assess signs of cargo heating. If necessary, partially open hatch covers to improve air circulation, but only under safe conditions. 

• The cargo should only be discharged in favourable weather conditions, and the hatch covers of all non-working holds should remain shut. If rain is imminent, cargo operations should be suspended and the working hatches promptly closed. 

• During discharge, if any cargo damage is observed, notify the Club. The Club will assist in appointing a suitable and experienced local surveyor and/or expert. The pattern, type and extent of the damage should be documented to assist those who may be appointed by the Club to investigate the cause. 

• Ensure photographs are taken at regular intervals throughout the discharge operation. Additionally, maintain written records throughout, including remarks on how the cargo was handled and details of spillages (if any). 

  

Conclusion 

By following the guidelines outlined above, Members can significantly reduce the risk of damage to soya bean cargoes during loading, carriage and discharge. Nevertheless, external factors such as climatic volatility, congested export corridors, political dynamics and differing international standards can continue to pose challenges. In such cases, thorough documentation and strict adherence to best practices are critical in defending claims and ensuring successful delivery. 

To further protect against claims, careful attention should be paid to the drafting of charterparty clauses, particularly those related to the fumigation and cleaning of cargo holds. Particular attention should also be paid to the drafting of charterparty clauses relating to cargo condition, fumigation responsibilities, ventilation instructions and hold preparation. 

Members are encouraged to retain all key documentation, including bills of lading, mate’s receipts, grain quality certificates, survey reports, temperature and ventilation logs, and contemporaneous photographs, to support any subsequent claims handling. 

For more safety advice and guidance, check out our Ask an Expert video with CWA below.  

Click here to watch 

  

 
 
 

¹ Grains and oilseeds, such as soya beans, are regulated by the International Code for the Safe Carriage of Grain in Bulk (International Grain Code) instead of the International Maritime Solid Bulk Cargoes (IMSBC) Code. However, processed products such as soybean meal (SBM) would fall under the individual schedule of SEEDCAKE of the IMSBC Code, whereby it would be the shipper’s obligation to provide a cargo declaration form per section 4.2 of the Code.