Loss Control & Dispute Resolution
Liquid Cargo Loss Control & Dispute Resolution
In complex maritime trade, managing liquid cargoes demands unparalleled precision. Discrepancies in quantity and quality can lead to substantial financial losses, legal entanglements, and reputational harm. Our specialized services are meticulously designed to address these challenges, ensuring accuracy, compliance, and overcoming significant commercial losses.
Quantity and Quality Disputes
Quantity and quality disputes often arise due to discrepancies between the loaded and unloaded cargo or when the cargo fails to meet quality specifications. Our expert Master Mariners assist the vessels at the loadport and during unloading operations to alleviate and investigate such claims due to:
- Measurement errors: Inaccurate ullage measurements or failure to account for temperature variations
- Contamination: Improper tank cleanliness and residues from previous cargoes or improper operations during loading multiple grades
- Incorrect handling: Failure to maintain proper temperatures or segregation
- Presence of free water or water settling during the voyage
Cargo Shortage Claims
Cargo shortage claims lead to significant commercial losses. These claims can result from:
- Physical Losses: Due to cargo leakage, in-transit evaporation, or excess ROB
- Paper Losses: Errors in measurement or calculation
To minimize shortage claims, our expert Master Mariners ensure:
- Accurate measurements using dedicated closed-system gauging, taking multiple temperature readings to calculate Gross Standard Volume (GSV) and related corrections.
- Qualified consultants: Our expert Master Mariners attend the joint load and discharge surveys
- Customary Trade Allowance (CTA): Incorporate and verify the CTA (typically 0.3% to 0.5%) in contracts to account for acceptable losses
- Vessel Experience Factor (VEF): Monitor VEF to identify measurement discrepancies over multiple voyages
- Verification of free water in cargo and calculations
These measures ensure that claims are minimized and disputes are resolved efficiently.
Transit Losses
Our expert Master Mariners conduct assessments and calculations to ascertain transit losses that occur during transportation due to various factors such as:
- Evaporation: Volatile cargoes with higher Reid Vapor Pressure (RVP) can lose volume through vaporization
- Leakage: Faulty valves or tank integrity issues and failures
- Insufficient settling time for water: Water entrained in cargo settles down during the voyage
- Cargo used as fuel: In some cases, cargo may be burned as fuel, reducing the delivered quantity
Incorrect Calculations
Our tremendous experience and knowledge in tanker operations and design allow us to assess and verify possible incorrect calculations of cargo quantities can lead to disputes and financial losses related to:
- Ullage measurement errors: Inaccurate readings due to non-central ullage openings or failure to account for trim and list.
- Temperature-related errors: Not adjusting for volume expansion due to temperature changes.
- Calibration issues: Using outdated or incorrect tank calibration tables.
Cargo Filtration and Laboratory Testing
We routinely work with our reliable vendors for the advanced on-site active filtration of various CPP and chemical cargoes to remove the presence of physical contaminants, water, and other contaminants, rendering the grade off-spec.
With our partnered laboratory and petrochemical experts, we ensure the highest testing standards for various oils, chemicals, gas, and fuel samples from the vessel/facilities as per the industry standards, including advanced forensic testing.