Soya Bean Claims in China - Practical Advice

These claims tend to recur on an annual basis associated with the harvest cycle of soya beans. Similar claims can also occur with other grain cargoes.

The purpose of this article is to draw attention to these claims, how they occur and what steps may be taken to protect your interests in the event of a dispute.

The Problem  

Grain cargoes in general and soya beans in particular, have a risk of going mouldy on board the ship during the voyage. Most cargoes are loaded in apparent good order and condition but there is an inherent vice – the soya beans have a tendency to deteriorate from self-heating unless cargo loading temperatures are low and average moisture content is low.

There are known limits for temperature and moisture content. Cargoes below these limits are described as stable – they can be stored for a long time without self-heating. Cargoes above these limits are unstable – they are at risk of damage from self-heating.

The ‘Damage’ Process

Soya beans are stable below 11.5% moisture and 25°C. Soya bean cargo damage claims are frequent because most cargoes are shipped above 11.5% and are loaded at temperatures of 30°C or higher. Recent Brazilian cargoes have a reported average moisture content of 12.6% and are loaded in ambient temperatures over 30°C – this means the risk of self-heating is high.

The table below shows how the risk of self-heating increases with average moisture content and cargo temperature.

Most cargoes out-turn in apparent good order and condition and are accepted without claim. But many cargoes will self-heat before arrival at the discharge port and there will be cargo damage. If the voyage is delayed this risk increases.

Certificate of Quality

Under the contract of sale, the sellers will usually have taken representative cargo samples on loading. These will be tested for average moisture content and the results are recorded in the load-port certificate of quality. Prior to loading, the Master should request a copy of the certificate or get the shippers to state in writing the average moisture content of the cargo.

• The average moisture content of the sample can be useful to compare with the certified average.
• Further tests can be carried out on the samples in the event of a claim.
• The samples may show that the cargo has not discoloured significantly from loading to discharging.
• North’s loss prevention briefing recommends having a local surveyor to obtain samples on loading and to keep a continuous (photographic) record of the loading.

Loss Prevention on the Voyage

Ventilation records must always be kept to avoid suggestions that ventilation is responsible for cargo damage.

For all agricultural cargoes, the three degree rule should be used. It should be noted that ventilation can take place at any time – night or day – when the outside temperature is at least three degrees below the cargo temperature on loading.

Always be careful if venting at night to ensure that weather conditions will not lead to water ingress.

It is important to note that:

• Self-heating is completely unaffected by ventilation
• Ventilation can, at best, minimise the extent of ship’s sweat/condensation in the top few centimetres of cargo. It will not cause nor prevent self-heating below the surface layer.

For more information see North’s loss prevention guide Cargo Ventilation.

Problem at the Discharge Port

If caking, discoloration, and/or visible mould are found at the discharge port China Inspection and Quarantine (CIQ) will take samples for testing. The results are not given to the ship operator.

Chinese lawyers usually seek to settle by negotiation. Requests for large security amounts against threats to arrest and detain the ship are common. Without evidence from the load port and on the voyage the ship’s negotiation position is weak – good evidence will strengthen this position.

Thanks to Brookes Bell Group for providing assistance with this article.