Distressed Sugar Cargoes From Santos
Further to the fire, earlier in the year, at the Copersucar sugar terminal in Santos, Brazil, we have been advised that cargoes of distressed sugar are being offered for carriage to a refining company in the Middle East.
We understand that some owners have been requested to issue clean mates receipts and/or bills of lading in return for letters of indemnity from charterers or shippers. This practice should be avoided as such letters of indemnity may be treated as unenforceable under English law and Members may prejudice their P&I cover with the Club.
As the distressed sugar is reported to be very wet, there is a potential liquefaction risk associated with its carriage.
Members are recommended to contact the Club for advice should their vessel be fixed to load this cargo.