Philippines: Liquefaction of Nickel Ore from Surigao

Update – 23 July 2015

A further bulk carrier is reported to have experienced cargo liquefaction after loading nickel ore in the Philippines.

Members are reminded of our previous advice (below) and to notify the Club when planning to fix or charter a vessel to load nickel ore from the Philippines or Indonesia.

• Circular Ref: 2011/009 – Indonesia and the Philippines – Safe Carriage of Nickel Ore Cargoes
• Circular Ref: 2010/038 – India – Safe Shipment of Iron Ore Fines from Indian Ports

The Club has published comprehensive advice about liquefaction which can be read using the links below:

• North’s Loss Prevention Briefing here.
• North’s Liquefaction Hot Spots here.
• North’s Cargo Wise poster here.

IG Charter Party Clause for Bulk Cargoes that may Liquefy – 2 September 2011

As part of the IG’s response to the continuing problems faced by members when fixing to carry IMSBC Code Group A cargoes (those with a propensity to liquefy), the Claims Co-op SC has produced a comprehensive charter party clause that it considers suitable to protect the interests of members.

QUOTE

Solid bulk cargoes are to be presented for carriage, loaded, (and where necessary trimmed) only so far as lawful and harmless, and always in compliance with all applicable international regulations, including IMSBC Code 2009 (as may be amended from time to time). All time taken in complying with such regulations, or as a result of non-compliance shall be for Charterer’s sole time and expense (whether as hire or as laytime/demurrage as applicable). Charterers shall be responsible for any and all additional costs, expenses and liabilities whatsoever incurred in such compliance or as a result of any non-compliance. The Charterers are to provide certificate(s) of test from a laboratory which must be approved in advance by Owners at Owner’s absolute discretion, and such certificate(s) of test must show the TML (transportable moisture limit) and FMP (flow moisture point) and moisture content. Such certificate(s) are to be presented to Owners and Master prior to, and as a condition, of the commencement of loading. The Master shall also have the right in his absolute discretion to refuse to accept cargo on board or, after loading, to refuse to sail, where in his reasonable opinion, there is a risk (including but not limited to the risk of liquefaction of the cargo) which could jeopardise the safety of the vessel on the voyage. The Master shall also have the right in his absolute discretion to demand that such cargo be offloaded from the vessel. Such refusal and/or demand to offload shall not be a breach of charter and Charterers shall be responsible at their sole time and expense (whether as hire or as laytime/demurrage as applicable) for all steps required to make the cargo safe and/or to allow the vessel to sail to the satisfaction of the Master. In any event, Charterers are to allow Owners or their representatives to take samples of cargoes prior to, and as a condition, of loading and Owners shall be entitled to test such samples and/or appoint surveyors and/or experts to act on their behalf always at Owner’s discretion. Charterers agree to pay and indemnify owners for all costs and consequences incurred as a result of charterer’s orders to load solid bulk cargoes which are or which prove to be non compliant and all the time taken up by the steps outlined in this clause shall be for Charterer’s account and Charterers shall be responsible at their sole time and expense (whether as hire or as laytime/demurrage as applicable). This clause is always without prejudice to the obligations of Charterers to provide a safe cargo and in relation to loading and nothing done or omitted to be done by the Master or Owners pursuant to this clause shall amount to a waiver of any rights of Owners.

UNQUOTE

North has amended the wording very slightly (shown as italics in the text). 

The clause has been prepared by the IG to protect members’ interests in its current form.

Should members be requested to ammend the wording in any way they are advised to contact the Association for assistance.

In addition to the above Members should familiarise themselves with the specific hazards associated with the particular port of loading/practice of the trade. For Nickel ore loaded in Indonesia/Philippines and Iron ore fines Ioaded in India, this information should include the relevant sections of the IG Circulars;

Circular Ref: 2011/009 – Indonesia and the Philippines – Safe Carriage of Nickel Ore Cargoes

Circular Ref: 2010/038 – India – Safe Shipment of Iron Ore Fines from Indian Ports

Please contact Loss Prevention for more information.