Gard Issues Urgent Warning on Nickel Ore Shipments from the Philippines
Gard, a leading marine insurance provider, has issued a critical alert regarding the dangers associated with transporting nickel ore, particularly from the Philippines. This warning follows a recent maritime tragedy in which a bulk carrier capsized and sank while carrying nickel ore, resulting in the loss of crew members. Although the exact cause of the incident remains under investigation, it has reignited concerns about the safety of nickel ore shipments from the region.
The phenomenon of liquefaction, where mineral ores shift and cause a loss of stability, has historically been a significant factor in maritime accidents. According to Intercargo’s ‘Bulk Carrier Casualty Report 2015-2024’, the loading and transport of nickel ore from the Philippines have been ongoing safety concerns. Instances of cargo being loaded in a dangerously wet state, often due to misdeclaration and poor moisture management by shippers, continue to pose risks. Despite the last major casualty linked to liquefaction occurring in 2019, the recent incident serves as a stark reminder of the ongoing threats faced by crews and vessels transporting Group A cargoes globally.
Challenges in Nickel Ore Shipment Practices
A report from Gard’s correspondent, Pandiman, outlines several critical issues surrounding nickel ore shipments from the Philippines. The country has 14 active nickel ore mining areas, with Gutalac Zamboanga being a recent loading site for the ill-fated vessel. Surigao and its surrounding islands are among the most active loading regions, where several vessels have previously run aground.
Concerns have been raised regarding the reliability of loading certificates issued by local mines. Independent laboratory analyses often reveal discrepancies in moisture content and Flow Moisture Point (FMP) compared to the figures provided by mining companies. This inconsistency raises alarms about compliance with the International Maritime Solid Bulk Cargoes (IMSBC) Code.
Infrastructure issues further complicate the situation. Nickel ore is typically stockpiled in open areas near the foreshore, lacking dedicated jetties or port facilities. Loading is conducted offshore using uncovered barges, exposing the ore to environmental elements. Additionally, changing climate patterns have blurred the lines between dry and wet seasons, leading to increased rainfall and wet cargo conditions.
Access to mining sites and laboratories is often restricted, limiting opportunities for independent verification of cargo safety. In some cases, vessels have had to withdraw from loading due to the inability to confirm the safety of the cargo under the IMSBC Code.
Case Study Highlights Risks of Liquefaction
Gard recently managed a case involving a charterer whose vessel experienced liquefaction of nickel ore three days after departing Surigao for China. Fortunately, the vessel reached a port of refuge in the Philippines. Investigations revealed that the shipper’s documentation, including the Shipper’s Declaration and moisture content certificates, were inaccurate. All documents had been prepared solely by the mining company, raising concerns about their validity.
Additionally, the sub-charterparty included a clause that limited the Master’s ability to conduct further testing of the cargo after loading. This clause attempted to shift statutory responsibilities from the shipper to the vessel and crew, contradicting mandatory provisions of the IMSBC Code. Owners and charterers are advised to review their charterparty terms carefully to avoid incorporating similar clauses that undermine safety obligations.
Members of Gard are reminded of the mandatory notification requirements when planning to fix or charter a ship to load nickel ore from the Philippines or Indonesia. Gard’s geofencing alerts are designed to provide support by highlighting the risks associated with liquefaction and recommending precautions to mitigate these dangers.
In conclusion, the risks associated with nickel ore shipments from the Philippines are significant and ongoing. Discrepancies in cargo declarations, lack of independent testing, and inadequate oversight by competent authorities contribute to the dangers faced by vessels and crews. Shipowners and charterers are urged to exercise caution and ensure compliance with safety regulations to protect lives and property at sea.
