China: Distillers Dried Grains and Solubles
During recent weeks the Club has experienced cases where cargo receivers in China have alleged that cargoes of Distiller’s Dried Grains with Solubles (DDGS) loaded in the US are off-specification.
The cargo is not homogenous and depending upon production processes and the cargoes origin, DDGS can naturally range from dark brown to pale yellow. The Chinese market prefers pale/golden DDGS, and cargo deviating from this colouring is giving rise to claims.
Members with vessels loading DDGS in the USA should be vigilant during the loading process and ascertain the precise specification, including colour, of the cargo prior to loading. Photographs taken can be a good form of contemporaneous evidence and in the event that significant differences in colour are observed, the Club should be immediately notified and Letters of Protest issued to all appropriate parties. Consideration should also be given to appointing an independent surveyor to monitor the condition of the cargo and assist the Master in clausing bills of lading.