Insurer Highlights Risk of Cargo Damage From Heating Bunker Fuel

The Swedish Club said it had received several claims for sensitive cargo that was damaged due to being next to fuel tanks.

In a new report, marine insurer The Swedish Club has drawn attention to several cases of claims made for cargo damaged by heat from adjacent bunker tanks, advising shippers to be aware of the kind of cargo coming aboard ships.

Bulk carriers are most susceptible to having damaged cargo, said Loss Prevention Officer Joakim Enström, as the vessels carry sensitive contents such as wheat, rice, and maize.

Foodstuffs such as soybeans can begin to suffer damage when temperatures reach 40 or 50 degrees Celsius, he said, which can cause cargo to become discoloured, cake, carbonize, mould or even in some cases catch fire.

"If sensitive cargo is loaded in the aft cargo hold the crew must plan so that the cargo doesn't suffer heat damage," he said, especially as adjacent service and settlings tanks can reach 90 degrees Celsius.

Operators may also experience cases of shippers attributing damaged cargo to heating tanks when in reality the cargo was prepared incorrectly, Enström said, highlighting a case involving a shipment of rice which was found to be discoloured and moisture-damaged upon arrival.

Upon further investigation, the discolouration was found to have likely been caused by high moisture content at the loading port.

"The best defence is to have procedures for how the bunker tanks should be heated," Enström said, along with having crew keep extensive records.

"The better and more detailed records are, the easier it is to determine the cause of the damage."

Earlier this month, it was reported that insurers are also grappling with the possibilities of heightened insured losses due to the industry move towards mega-containerships.