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Shipowner Avoids $800,000 Damages In Cargo Contamination Claim

Situation

A chemical tanker was fixed on a voyage to load a cargo parcel from a South American port. Upon completion of loading first foot portion, samples drawn from the cargo tank were declared off-spec, and the vessel was held responsible for the cargo contamination. The Quantity of the cargo was 1677 MT with a total value of around USD 800,000.

Solution

The vessel master had taken shoreline sample during the loading. With the ShipIn platform installed, the sampling operation was captured and digitally logged. The undisputable digital evidence, accessible in real-time on the ShipIn platform ashore, led to eventual admission by the terminal that the cargo was off spec in shore tank and that the vessel was not at fault.

Having the ShipIn platform on the vessel was a definite plus in this cargo contamination case. The terminal argued that no one witnessed the Master taking this sample. We noted that we had digitally logged the events which supported our case and led to the admission that the cargo was off spec on loading. Quantity of cargo was 1677mt with a value of around $465/mt. Of course, we would have argued the amount down with mitigation elements, but that would have been an arduous process without the best of results and would still have resulted in a substantial loss.

– SVP Commercial Operations

Results

ShipIn’s FleetVision™ Platform helped the shipowner avoid $800,000 in losses. The real-time collaboration between Ship and Shore and the availability of undisputed visual information prevented further losses due to potential delays caused by this incident. The Captain and Crew on board were spared frustration from the dispute, and man hours in the office that would have been allocated towards root cause analysis, corrective actions and claim negotiation were reprioritized to more impactful projects.

Cargo Contamination on a Chemical Tanker

  • Operational Incident Prevention
  • Lack of Visibility
  • External Malpractices
  • Real-Time Visibility
  • Seamless Ship-Shore Collaboration
  • Digital Logging of Events
  • Visual Source of Truth
  • $800,000 Cargo Claim Eliminated
  • 100s of Man-Hours Saved
  • Enhanced Commercial Reputation

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