The North P&I Club has released a new brief exploring the insurance implications when solid cargoes behave like fluids and outlining typical responses to claims arising from liquefaction cases.
Published today, 25 May 2022, A Most Dangerous Trade: The Problems of Liquefaction provides an overview of the consequences of liquefaction, whereby solid bulk cargo behaves like a fluid, creating a free surface effect which can, in some cases cause the vessel to capsize. The document is written by David Richards, Manager (Claims), North P&I Club.
Opening with an overview of the phenomenon in the maritime context, A Most Dangerous Trade describes how the risk of liquefaction can be initially ignored and later identified during loading or mid-voyage – despite compliance with the Maritime Code. International Solid Bulk Cargo (IMSBC). The paper then examines the insurance implications of liquefaction causing the loss of a vessel – outlining typical responses to claims from charterers and cargo interests – and describes the role of P&I providers in covering such incidents. .
A Most Dangerous Trade: The Problems of Liquefaction is available now.
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