The Carriage of Containers on Dry Bulk Carriers

The ongoing difficulties in the container logistics chain have led to importers and exporters exploring alternative methods of getting their products to market. One method involves the deployment of dry bulk carriers for the carriage of containers.

There are numerous technical, operational, regulatory, and contractual issues to consider before engaging in this trade. Members should refer to our industry news article on the subject for more information.

A Material Change in Risk

The carriage of containers on vessels not designed for that purpose is considered by the Club to be a material change to the risk originally accepted.

As such, Members considering, or already engaged in, this trade must contact their underwriter if they have not already done so, in order to reduce the potential for Club cover to be prejudiced.

Members should also contact the vessel’s Flag State and Classification Society for their advice and any documentary changes that may be required. Class and Flag approval will be required for cover.

In addition, Members must engage, at their own expense, an appropriate expert acceptable to the Club to provide them with advice on, and assistance with, the technical aspects of preparing dry bulk carriers for the carriage of containers. This step should help Members ensure that all Classification Society and Flag State requirements are complied with.

The club’s underwriting, P&I, FD&D, and loss prevention departments are available to provide support and advice to any Members considering this trade.

COLIN GILLESPIE
DIRECTOR (LOSS PREVENTION)
The North of England P&I Association Limited / North of England P&I DAC

CIRCULAR REF: 2021/018