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Introducing our new free publication: a practical guide to managing dry bulk cargo shortage fines and claims in Brazil
Solid bulk commodities dominate global seaborne trade by gross weight, highlighting the critical role of bulk shipping in international commerce. Handling these cargoes presents inherent risks and operational challenges for carriers, crews, and insurers. Certain dry bulk materials are naturally susceptible to losses from shrinkage, evaporation, and liquefaction, while substandard cargo handling equipment and mishandling during loading, unloading, and transhipment tend to exacerbate wastage.
The lack of standardised, internationally binding regulations for quantifying bulk cargoes and establishing permissible shortage allowances often leads to disputes during loading or discharging, frequently resulting in costly legal claims. Cargo shortage remains one of the most common and expensive issues faced by bulk carriers. Although individual claims may be relatively small, the high volume of shipments and the prevalence of ‘paper’ shortage claims add up to significant costs and resource expenditure.
Brazil plays a vital role in the global bulk trade, being a leading exporter of iron ore, soybeans, maize, and sugar. It also relies heavily on fertiliser imports to support its thriving agricultural sector. Over 80% of its exports and 50% of its imports are carried in bulk, accounting for more than two-thirds of the nation’s port throughput—underscoring the strategic importance of bulk trade to Brazil’s economy.
However, Brazil’s regulatory environment introduces additional challenges, including inconsistent laws, divergent standards for shortage allowances, uncertainties around subrogated claims, and a judicial backlog that delays cargo claims resolution.
Drawing on over 50 years of experience as P&I correspondents and surveyors at Brazilian ports, this free guide provides essential insights for shipmasters, shipowners, charterers, P&I clubs, and marine insurers. It offers practical guidance on navigating the domestic legal framework, relevant international conventions, and customs regulations related to cargo shortages. Key topics covered include carrier liability and limitations, measurement and quantification methods, allowable shortages, legal exclusions, dispute resolution procedures, and risk mitigation strategies.
Designed for easy navigation with clickable hyperlinks to related sections, this guide aims to serve as a valuable reference for industry stakeholders.
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