Increase in the Number of Cargo Claims in Both Egypt and Sudan

In our capacity as P&I correspondents in both Egypt and Sudan, our team has noted an increase in the number of cargoes claims, particularly damages and shortages when it comes to foodstuff cargoes.

 We will first try to summarize some of the factors which contributed to this increase and then we will try to set up a few practical recommendations:

 The factors which contributed to the increase of cargo claims:

 1- The lifting of the sanctions in Sudan has encouraged trade with the country, so the number of vessels calling Sudan is increasing.

 2- The ports facilities in Port Sudan are not state-of-the-art facilities and therefore a good number of the vessels calling Port Sudan are older and may not have the proper on-board gears for operations.

 3- Sea conditions during the voyage and the washing of decks leads to leakage of seawater inside the holds, especially in the cases where hatch covers are not properly secured.

 4- Heavy weather conditions prevail in Port Sudan nowadays with torrential rains contributing to the damage of cargoes. Same weather conditions are prevalent in Alexandria as we are entering the season for heavy rains which may be a factor in claims of damaged cargo.

 5- Port Sudan is still affected by waves of strikes and on occasion tribal disturbances, causing substantial delays to the discharge/clearance of cargo and cargo operations. 

Recommendations:

1. Prior to loading cargo onboard the vessel at the loading port, an inspection should be made to ensure that all cargo spaces are clean and free of residues from previous cargo. If possible, a certificate should be obtained from the shipper confirming that the cargo spaces are suitable.

 2. A draft surveys should be arranged prior to and immediately after the loading of cargo.

 3. Hatches and cargo hold accesses should be properly jointly sealed after the completion of loading with the shipper at the loading port. An official certificate, signed by all the attending parties, should be issued in that respect.

 4. Prior to vessel’s arrival, the vessel’s agents should invite the receivers to attend the unsealing of the hatches and cargo hold accesses. An official certificate should be issued and signed by all attending parties.

 5. Initial and final draught surveys and/or Tally on vessel’s behalf should be arranged, preferably to be signed by both the Master and the receivers.

 6. Upon the completion of the discharge, all cargo spaces should be checked, and empty holds certificate(s) should be obtained from the receivers and/or vessel owners’ surveyors.

 7. If any damaged cargo cannot be discharged at port, it must be secured in a closed area to avoid further deterioration/wetness. 

 8. The monitoring of the discharging operations should take place.

 9.  In some cases, we would recommend the appointment of a protecting agent taking into consideration that disputes over the quantity of cargo depend on numerous factors, including how the quantity has been calculated at the load port (joint draft survey or shore scale), joint sealing of holds ... Same goes for the quality of the cargo including the condition of the hatch covers, rough weather encountered during loading and during the voyage.

 Unfortunately, the above recommendations will not entirely avoid/eliminate cargo disputes/shortage claims.  However, applying some of these will at least enable vessel’s interests/insurers/correspondents to build their defense in order to avoid or at least mitigate the loss.