North P&I Club publishes briefing paper detailing the dangers of cargo liquefaction
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North P&I Club has released a new briefing paper exploring the insurance implications when solid cargoes behave like fluids and presenting typical responses to claims arising from cases of liquefaction.
Published 25 May 2022, A Most Dangerous Trade: The Problems of Liquefaction provides insight into the consequences of liquefaction, whereby solid bulk cargo behaves like a fluid, creating a free-surface effect that may, in certain cases, cause the vessel to capsize. The paper is written by David Richards, Director (Claims), North P&I Club.
Opening with an overview of the phenomenon in the maritime context, A Most Dangerous Trade describes how liquefaction risk might be overlooked initially and later identified during loading or mid-voyage – despite compliance with the International Maritime Solid Bulk Cargoes (IMSBC) Code. The paper goes on to investigate the insurance implications of liquefaction causing the loss of a ship – presenting typical claims responses from charterers and cargo interests – and outlines the role of P&I providers in covering such incidents.
About North P&I Club:
The North Group is a leading global marine insurer providing P&I, FD&D, war risks, hull and machinery, and ancillary insurance to over 250 million GT of owned and chartered tonnage. Through its Sunderland Marine brand, North also provides cover for fishing vessels, small craft, aquaculture risks and owners’ fixed premium. The S&P Global ‘A’ rated Club is based in Newcastle upon Tyne, UK with regional offices and subsidiaries in Australasia, China (Hong Kong and Shanghai), Greece, Ireland, Japan, Singapore and USA. North is a leading member of the International Group of P&I Clubs (IG), with over 12% of the IG’s owned tonnage. The 13 IG clubs provide liability cover for approximately 90% of the world’s ocean-going tonnage and, as a member of the IG, North protects and promotes the interests of the international shipping industry.