Rice cargo has always been problematic in Nigeria, at least from the point of view of Owners, their insurers and consequently, their correspondents, but arguably not from that of Receivers. This is perhaps because Receivers are in a position to profit from their consignment, over and above that which will ordinarily come to them from the sale of that consignment.

There are a number of reasons for this. Firstly, rice, by it’s very nature, is a particularly problematic cargo to stow. Damage can arise from its moisture content (inherent vice) or ‘ship’s sweat’ and other consequential factors such as bad or defective ventilation in holds, bad weather, insecure hatch covers amongst others. Moisture causes caking, liability for which Owners and therefore their insurers invariably have to bear. This provides an avenue for Receivers to present inflated cargo damage claims and in so doing, cause delay to the vessel through it’s arrest, often at the point of completion of discharge in order to secure their claims through us.

Secondly, it does not help matters that although Charterers have the duty to appoint Port Agents, due to the relationship between Charteres and Receivers (the importers of rice have formed a strong cartel in Nigeria), Receivers more often than not influence the choice of agent to the ship so as to ensure that the agents appointed protect their interests, to the deteriment of the Shipowner.

In order to address this problem:

1. Owners should exercise due diligence to make their vessels seaworthy at the start of every voyage. They should particularly ensure high maintenance of the vessel especially the holds, ventilators and hatch covers.
2. Owners should seek recommendations from their Club correspondents within jurisdiction on choice of port agents and be able to reto the choice by the Charterer of a particular agent.

3. Owners’ insurance Clubs should ensure the use of efficient correspondents whose surveyors can perform all necessary services pertaining to rice cargo including proper stowage condition inspection, keeping of proper shipside tallies, cargo damage surveys (where necessary) which will include conducting salinity tests on cargo damaged by water and joint warehouse surveys (where necessary).

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