Fertilizers from China

Loading urea in China can have complications and claims arise regularly. In this article we look briefly at some of the main problems.

Urea in China is normally loaded in bulk or bagged form.  Bagged loading is quite straightforward while for loading of urea in bulk, 2 methods are employed.  The first method entails the use of large steel meshed screens (mesh openings 2 cms x 2 cms) placed over the hatch squares.  Stevedores standing on top of these screens cut open individual urea bags and the urea drops into the hold through the mesh.  Caked cargo is usually broken down manually using shovels, mallets, etc.

In the second method, bags are cut open on steel screens placed on top a conveyor belt.  The conveyor belt transports the urea to the storage area after passing it through a grinder unit.  Grabs are then used to load this cargo on board.

A number of claims and disputes have arisen as a result of these methods including cargo shortage, and claims relating to caking, impurities, such as plastic from the bags, and wet damage. 

Caking issues have resulted in forced change of discharge ports and the cancellation of cargo sale contracts has given rise to large claims in the past.  Large claims have also arisen where plastic debris from bags has damaged agricultural equipment.

Quantity Disputes

For bulk loading, the bill of lading quantity is ascertained by draught surveys arranged by the shipper.  It is normal for the shipper’s draught surveyors to protect shipper’s interests.  The bill of lading quantity therefore may not reflect the actual loaded quantity.  Disagreements over sea water density, draught readings, ballast water soundings, ballast water density and calculated constants are commonplace.  In cases where such disagreements arise, it is usual to shift the vessel to anchorage during negotiations.

Owners should try to reach an agreement with charterers beforehand that the quantity reflected on the mate’s receipts or bills of lading should be ascertained by a joint draught survey amongst owners, charterers and shippers. Preparations for draft surveys should be thorough. Please refer to North’s loss prevention guide on the subject.

Stevedores should not place screens on the hatches until the draft survey is completed and figures agreed. 

After the final draught survey and in case of short loading, shippers should be requested to load the balance cargo.  If shippers agree to load, the Master must then ensure he is satisfied with the loaded quantity either by a bag tally or monitoring drafts.  If a shipper refuses to load, the Master must note protest with all parties immediately.

Cargo Caking and Impurities 

Fertilizer is frequently caked when it arrives at the vessel. It is not always easy for stevedores to get this cargo to crumble. As a result and due to the size of the mesh, it is common to find caked cargo smaller than 2cms in the cargo holds.  Larger pieces can also enter through gaps in the hatch cover and mesh.  It is also common for plastic strips (usually from bags) and sometimes entire bags to find their way into the cargo.  Stevedores will usually remove these larger pieces and impurities on a regular basis – however, collecting all plastic debris is very difficult

Loss Prevention

Since both caking and impurities are perceived to be an unavoidable problems due to the loading method employed, owners should try to reach an agreement with the charterers beforehand so that the mate’s receipts and bills of lading can be claused accordingly. This is the most effective way of protecting ship’s interests.

Crew members should be vigilant and monitor the loading at each hold. Any cargo that cannot easily be broken up should be rejected and plastic strips or bags should be pointed out to stevedores for removal.  Regular checks should also be carried out on the condition of the cargo inside the hold.   Regular photographs of the condition of the cargo are likely to be useful in the event of a dispute.

In relation to wet damage the large steel screens placed on the top of hatch openings take a long time to deploy and remove.  In case of the sudden onset of rain, the hatch covers may not be closed in a timely manner. As such weather forecasts should be carefully monitored to allow hatches to be closed in time before the onset of rain.  Radars can sometimes be effective in detecting the presence of rain.  Non-essential hatch covers covering holds with cargo inside should be kept closed.