MOISTUR CONTNT
Published 21 April 2017
Member Advisory
As set out in our Circular dated 25 November 2016 the Association has come across
various claims arising out of soybeans with excessive moisture content being loaded
in Brazil and discharged in China.
This circular aims to provide an update on loading/storage conditions at Brazilian
ports, especially in Santos and Paranagua, and also ports in Argentina.
Image of Terminal ADM39 at
Santos, where grains are loaded
Storage condition in Argentina
In the last sowing season several provinces of the country experienced heavy rains
(for example, relevant areas of Buenos Aires / Santa Fe / Córdoba). Some crop areas
were affected by flooding, especially soya and maize which have been harvested or
will be harvested soon.
After the harvest there can be different scenarios for the subsequent storage:
a. Silo bags in the field;
b. Cells or silos (either owned by the farmer or from a third parties, including grain terminals);
c. Occasionally the harvest is loaded onto trucks and sent to the grain terminals.
Many of those storage areas are provided with dryers. The grain terminals are also
provided with dryers on which they process the grains to achieve the condition/quality
required by the traders. They all store the grains in closed spaces (silos or cells) and
no outdoor storage is noted.
Owners are better protected if the moisture content of the cargo to be loaded can be
certified. If there are cargo claims at the discharge port, owners may be able to argue
that the cargo damage occurred due to high moisture and owners may be able to rely
on exceptions such as "inherent vice" to defend the cargo claim.
However, we remind members that whether such argument would stand is subject to
the local law of the discharge port. Members are referred to our circular, see attached
link.
The Association has checked with the local correspondent in Brazil who advised that
that it would be possible to appoint a surveyor to take samples during loading and to
have the cargo analyzed for moisture content. The result could be obtained on the
same day. In order to mitigate the risk of claims we would recommend such surveys
to be conducted.
The Association is grateful to Brazil P&I and Pandi Liquidadores S.R.L. for
contributing to this article.
Diclaimer
The above article has been produced by or in cooperation with correspondents or other external sources
and is reproduced here with their kind permission for general information purposes only. Reference is
made to the Legal disclaimer governing use of this website.