Page 35 - Insurance Times February 2016

tained at points remote from ship's rail and alterna- ing different receivers should be called in to estimate
tively at the time the cargo is put into stock on quay or in the quantities based on figures obtained by draught
barge. surveys, etc.

5) Since cargo stored in open prior to loading on to the

In such cases, variation between the weight indicated as vessel is exposed to rain and the moisture remains in

shipped and that actually loaded will occur. Since coal cargo for many weeks prior to loading, excessive

absorbs water, it is always traded on a dry weight basis weight i.e. in excess of 100 tonnes on a 4 weeks voy-

i.e.moisture content at both ends should be considered age may be discharged.

when payment is made to the seller. 6) It may be noted that when moisture drains out during

The loading, transportation and discharge of coke re- prolonged voyage, the cargo contains moisture which
sults in some degree of breakage, leading to a small may accumulate at the bottom of the cargo hold and
average size of lumps and a greater content of fine drain towards the hold bilges. This may also happen due
material, breeze and dust. Hence, careful sampling and to leakage into the cargo holds through hatch covers
testing according to acceptable procedure are necessary or from other openings. Hence, a cargo of coal con-
to determine the extent of such changes. taining up to 1% of its weight as moisture, may settle
in the bilges tank. Unless, proper sounding of bilges

How to deal with difference in weight tank is taken during draught survey, such accumulation
in bilge tank will be undiscovered. The cargo receiver

during voyage/transit will receive shortage of cargo but draught survey at

1) There will be no dispute if the total quantity of con- disport will not show any difference in quantity as from
signment loaded on to the vessel has arrived without load port since quantity of cargo settled in the bilge
any shortage. tank will appear in the disport draught survey.

2) If draught survey at discharge port shows excess cargo Risk factors
when compared to the quantity loaded at load port,

the same may have been caused due to absorption of The common hazards related to coal during its ship-

moisture or because more cargo was loaded than in- ment are as under:

tended. Self- heating/Spontaneous combustion

3) If cargo is short landed, the receivers of cargo should Entry of sea water into the vessel which may cause

file claim on the carriers. contamination of cargo

4) If the cargo is loaded in one port and discharged in Washing out of cargo during storage in open at the
another port, the difference in quantity without any
Port of loading and discharge due to cyclonic storm
valid reasons may be a paper loss but if the cargo is

discharged at several ports, then surveyors represent- Unexplained shortage, loss of calorific value, moisture

loss, multiple handling losses, blowing out of con-

signment (especially dust particles) during mid-

stream discharge/loading,lighterage and transporta-

tion of cargo by barges.

Theft, pilferage, rain and sea water damage , non-
delivery of cargo during storage in open and trans-
portation by open wagon/vehicle.

Underwriting Considerations

While accepting the risk, the following conditions
should be strictly adhered to:
O The risk under the policy will commence as per

Incoterms 2010.

The Insurance Times, February 2016 35

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