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 today, 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.