The London P&I Club has reiterated its advice for shipowners, operators and charterers to address risks linked to loading flexible intermediate bulk containers (FIBCs) containing dry chemicals, following several reported incidents involving hold fires and cargo damage on bulk carriers and general cargo ships. Many of these cases have occurred in Chinese ports.
According to the Club, improper storage and handling of FIBCs, also known as jumbo bags, can lead to substantial claims. Non-compliance with International Maritime Organization (IMO) regulations and guidance on the storage and handling of jumbo bags could also jeopardise P&I cover.
The London P&I Club is part of the International Group (IG) of P&I Clubs, which shares large claims through a pooling agreement and secures additional cover through a reinsurance arrangement known as the General Excess of Loss (GXL) programme. This structure allows the clubs to collectively handle incidents where losses can exceed $100m, with reinsurance extending up to $2bn or more.
A major cargo fire or contamination event linked to improperly handled FIBCs could potentially escalate to this level, meaning such risks are not only a concern for individual members but could also have wider implications for the entire IG pool.
In addition to cargo loss, chemical spills or fires linked to FIBCs may trigger environmental liability exposure, particularly if contamination spreads to waterways or port areas. Such incidents can lead to clean-up costs, third-party claims and regulatory penalties.
P&I cover is designed to respond to these environmental liabilities, but the scale of potential costs underlines the importance of strict compliance with handling regulations and the proactive risk management measures highlighted by the London P&I Club.
Industry concerns about shipboard fires are not limited to bulk carriers. Recent high-profile incidents on roll-on/roll-off and car carrier vessels have highlighted growing fire risks linked to cargo, including electric vehicles and other hazardous goods. These cases have prompted insurers to call for improved onboard detection systems, crew training and better segregation of dangerous cargoes.
To support the industry in understanding risks associated with FIBCs, the Club has produced a video case study featuring a fictional bulk carrier, MV Calm Sea. The resource is designed to help vessel owners, operators, charterers, crew and port agents recognise potential hazards, liabilities and correct handling practices.
Ian Barr (pictured above), chief claims officer at the London P&I Club, said that operators of bulk carriers and general cargo vessels are increasingly receiving requests to load jumbo bags alongside breakbulk and steel cargoes or to store different chemical bags in the same hold.
“In cases of different bagged chemicals being stowed together, chemical contamination and reactions can lead to on-board vessel fires, which can result in the total loss of the entire contents of the hold and large claims. Serious problems also occur when FIBCs are stored incorrectly with breakbulk or steel cargoes, which can damage the integrity of the jumbo bags and cause significant spillage leading to delays, fines or claims,” Barr said.
Barr noted that while these cargoes may appear harmless, they can be dangerous if not handled and stowed correctly. He urged owners, operators, charterers and Masters to use the training resource and seek guidance from their P&I Club or industry experts when preparing stowage plans and loading FIBCs.
P&I cover could be affected if operators fail to comply with regulations adopted by the Flag State relating to the storage of jumbo bags. This includes adherence to IMO conventions and codes, such as the International Convention for the Safety of Life at Sea (SOLAS), the Cargo Securing Manual (CSM), the Code of Safe Practice for Cargo Stowage and Securing (CSS) Code and the International Maritime Dangerous Goods Code (IMDG).
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