P&I CLUB: DRY BULK, CONTAINERS LEAD CARGO CLAIMS

P&I CLUB: DRY BULK, CONTAINERS LEAD CARGO CLAIMS    Dry bulk and containerized cargoes are the two leading categories of cargo for claims, according to detailed statistics compiled by the U.K. Protection and Indemnity Club.
   Over the 1987-2001 period, cargoes heading the large P&I club’s claims settlement table were dry bulk ($110 million), containerized ($82 million), steel ($79 million), bagged bulk ($65 million), oil products ($57 million), reefer-bulk ($55 million) and crude oil ($41 million).
   The U.K. P&I Club, the world’s largest P&I club, has published detailed statistics of cargo and other claims over the 14-year period to 2001. Because the club insures about one-fifth of the worldwide fleet, the U.K. P&I Club believes its analysis of claims is representative of the merchant shipping industry, said spokesman Martin Rowland.
   When analyzing “large claims” — claims of more than $100,000 — over the period 1987-2001, the club said cargo claims accounted for 41 percent of all large claims by number, but only 27 percent by value.
   Over the same period, the club dealt with more than 2,400 large cargo claims, costing $678 million. This was “easily the largest category” for the club, it reported.
   Similarly, crew claims were 24 percent by number and 15 percent by value. Pollution claims were 5 percent by number and 17 percent by value. Collisions produced 5 percent of large claims by number and 10 percent by value.
   “With worldwide cargo claims running at nearly $8 million a week and operating conditions becoming steadily tougher, best practice in the carriage of marine cargoes is a massive concern to the merchant shipping industry,” the U.K. P&I Club said.
   The mutual noted that, at the same time, cargoes are becoming more sophisticated and require more care.
   The club said wet and physical damage and contamination were the main sources of claims, accounting for about 60 percent by number and nearly $370 million of costs. They were followed by shortage, heat and frost damage, loss overboard, theft and sinking. Bad stowage was the leading cause with 283 large cargo claims, followed by hatch cover leakage (236), bad handling (189) and condensation (107).
   The UK P&I Club has published a guide to provide practical and up-to-date advice to help club members reduce their exposure to cargo damage. The guide — “Carefully to Carry” — comprises a series of articles based on best practice over a wide range of topics. It deals with solid and liquid bulk, refrigerated, containerized and other cargoes.