Loading bagged sugar in Brazil

The Sugar Charter Party 1969 [revised 1977], which governs most shipments of sugar from Brazil, imposes fairly onerous terms on the shipowner. This, coupled with the relevant Brazilian legislation means that the loading of bagged sugar can be a very difficult operation for the vessel’s Owner and Master.

Clause 14 of the C/P stipulates that the stevedores are “considered as Owner’s servants”. Unfortunately, the stevedores themselves, earning extremely low salaries, are only concerned with the speed of loading. The faster the bags are loaded, the larger their monthly wage. The condition of the bag and its contents do not receive a thought.

Under Brazilian Law, the only recognised tally is that carried out by the official unions who are employed by the shippers. No other tally is recognised nor, indeed, permitted. Unfortunately, the union tally clerk will normally accept the figures on the docket delivered by the truck driver. This does little to assist the Master and the Owners who, in accordance with Clause 15, are obliged to employ the shore tally clerks.

Notwithstanding the abovementioned problems, there are a number of preventative measures that the Owners and Master can adopt.

The appointment of local surveyors will assist. Their role is twofold. First, they are able to oversee the loading operation around the clock – and exercise the right to reject where necessary. Secondly, they can act as a useful ‘link’ when comparing ship’s figures and those of the shore tally clerks. Of course, the crew are entitled to – and should – carry out their own tally in the vessel’s holds, employing their own tally clerks if necessary.

Tallies should be compared at least once per day. Should there be any discrepancy whatsoever, the shippers can be alerted immediately. Whatever the discrepancy, a letter of protest should be issued.

Whilst there is no obligation on the shipper to alter the shore tally – and no legal way of forcing it to do so – the letter of protest can sometimes assist carriers in their attempts to persuade the shipper to provide additional bags to bridge the gap between the ship and shore tallies.

The results of both light and loaded draft surveys can also be included in any discussion with the shippers to demonstrate both the accuracy of the ship’s figures and the Master’s genuine efforts to accurately ascertain the quantity of bags loaded. In addition, Owners should attempt to include the vessel’s charterers in any such discussion to exert further pressure on the shippers.

The cargo is often stored in open and unprotected areas where it is exposed to the elements. If there is any doubt as to the condition of a bag, it should be rejected. Any torn bags, or those with substandard stitching, should also be rejected. The crew, or the surveyors appointed to assist, would be wise to mark all rejected bags to ensure that the shipper does not attempt to reload them at a later stage.

Upon completion of the loading operation, the hatches should be sealed in the presence of representatives of all interested parties.

Whilst the loading of bagged sugar in Brazil can be extremely difficult for the reasons outlined above, constant monitoring can result in a smooth and claim-free operation.

Originally published in Newcastle P&I Association’s Full Ahead magazine, April 1996

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