Cargo claims have comprised, on average, about 25% of the American Club's total exposure. Within the cargo claims category, bagged rice claims in regions such as West Africa have been the most prevalent type of cargo claims encountered by the American Club's Membership. While the American Club has pioneered innovative actions such as the use of the anti-suit injunction mechanism to significantly reduce and thwart the ability of cargo interests to present fictitious and exaggerated claims involving bagged rice and other cargoes, preventative measures are still the most useful tools to prevent against these potential exposures.
Therefore, the American Club has developed the document Transport Guidance for Bagged Rice, that draws upon the knowledge and experience which we have derived from our own claims, from those who are engaged in the chartering of ships for the carriage of bagged rice as well as from surveyors whose professional experience on behalf of P&I insurers, owners and charterers alike is of particular relevance. As a further supplement to our Guidance, we present here relevant animations, photographs and other information on the best practices for the carriage of bagged rice.
Hardcopies of Transport Guidance for Bagged Rice can be obtained from the Club Managers free of charge by contacting Dr. William Moore, Senior Vice President – Loss Prevention, at [email protected].
Introduction to Ship and Cargo Sweat
Condensation damage due to ship sweat and cargo sweat is a significant risk to bagged rice cargoes. This animation provides a summary of how condensation forms as a result of ship sweat and cargo sweat.
The following pictures demonstrate the consequences of cargo and ship sweat on bagged rice cargoes.
Animations & Photographs
Standard forms associated with Transport Guidance for Bagged Rice
Please find below references to specified standard forms used for the transport of bagged rice with their references to these forms in the Transport Guidance for Bagged Rice.
1. Humidity-Temperature-Cargo Ventilation Record Book form: Reference is made to Section 5.7 and Table 5.2 of the Transport Guidance for Bagged Rice; a template of the Humidity-Temperature-Cargo Ventilation Record Book is provided.
2. Bill of Lading Form for Bagged Rice: Reference is made to a standard worded bill of lading as discussed in Section 8 and an example is presented as Appendix 3 of the Transport Guidance for Bagged Rice, with a template of the Bill of Lading Form for Bagged Rice presented.