- This is to inform our Principals and their good members that the increase in import of bagged sugar in Bulk, Coal, Wheat, DAP & Grain in Pakistan had given open ground for these commodities major importers to play with the findings and to come-up with a bogus/ artificial shortage damaged cargo claim.
- There are few major and regular importers of aforesaid commodities as such are the ones controlling the local market concurrently.
- Normally for solid bulk cargoes the figure so calculated as per the final draught survey is what forms the basis for any excess or shortage, however, It is getting quite common these days that the surveyor raise disputes in the draught survey results and with varying results, they use this as a pretext for rejecting draught findings and raise their claims on the basis of ground/ delivery figures in which usually there is no participation on behalf of the vessel and shortages can be easily manipulated by the stevedores.
- In Pakistan, we do not have a case law on draught survey in this jurisdiction, however, note that under clause (m) of Article IV (2) of Carriage of Goods by Sea Act, 1925, the carrier is not liable for the wastage in bulk or weight or any loss or damage arising from inherent defect, quality or vice of the goods.
- It is an adaptation and practice being followed and accordingly in cases of dispute in draughts surveys, the claimants have opt to claim on ground figures and courts had considered final weighment figures.
- Note that in case there is a dispute of shortage of cargo and in deviation in Initial and Final Draught Reports the Courts then normally consider the Final Outturn Report (FOTR).?FOTR?is the final check/weighing of cargo by Port, once the cargo is discharged from the ship and delivered to the consignee.
- There is no permissible transit loss allowance for solid bulk cargoes in this region and we have cases where the cargo as per draught survey has been in line with the Bill of Lading quantity, but still the local agents illegally & forcibly detained the vessel and pressurized the owners of the vessel for the settlement of a claim for short-landed-cargo according to the shore/weighbridge figures.
- NO standard Club LOU is of acceptance in the cargo shortage matters and if we do convince them, then it is going to be more like a promissory note, confirming payment/ agreement of 100% claim settlement within 05 working days.
- In case the claim s not to be settled amicably, owners may secure the claim by a bank guarantee or deposit of the security amount. The bank guarantee is usually accepted by courts as well as by the claimants.
- We recommend P&I attendance on-board/on-ground, as these precautionary measures have recently become mandatory to avoid bogus/abnormal paper claims. If one compares, the costs involved for P&I services are way to less in light of the exposure and the high value claims we have dealt in recent times.
