CARGO


Carriage of soya beans


This article first published April 2019 the Standard Club and can be found at https://bit.ly/2WlBuvd www.standard-club.com


INTRODUCTION


The Standard Club has seen an increase in claims activity relating to the carriage of soya bean cargoes in the past few years. This is especially evident in the trade of this cargo between Brazil and China.


BY BRETT HOSKING SENIOR CLAIMS EXECUTIVE


With the first harvest of the year in Brazil taking place in January/ February and delivery of cargoes in the northern hemisphere in Spring, the club has collaborated with CWA to produce the following bulletin on best practices specifically pertaining to the carriage of soya bean cargo. It provides advice on how to ship this cargo in the most prudent manner to reduce the risk of cargo claims, providing some useful case studies of various claims activities and top tips to help protect members involved in the carriage of this cargo.


AKSHAT ARORA SENIOR SURVEYOR


56 | The Report • June 2019 • Issue 88


The International Maritime Solid Bulk Cargoes (IMSBC) Code contains useful information under the heading of ‘Seed Cake’, which also pertains to soya bean derived products. The club’s previous bulletin (https://bit.ly/2DJMBqy) on seed cake cargoes contains general information regarding the stowage of bulk agricultural cargoes.


BACKGROUND


The bulk soya bean trade between South America and China has never been greater. In 2018, approximately 83.8 million tonnes of soya beans were exported to China from Brazil alone, an increase of 23.1% when compared to exports in 20171


. Exports from


South America were boosted by the trade war between China and the United States, which resulted in a steep tariff of 25% on US soya bean imports. However, the soya bean import landscape may change once again for China as it enters into further talks with the US in an attempt to reach a trade deal2


.


The import and export of soya beans can be impacted by various external factors and these political shifts represent the latest impact on the soya bean market. Other factors to have affected the trade include meteorological and economic factors. The club has experience of a various claims being presented including some claims of more of an opportunistic nature. A general awareness of market conditions is therefore helpful.


1 https://macaudailytimes.com.mo/more-demand- fromchina-increases-soy-exports-from-brazil.html


2 https://www.channelnewsasia.com/news/business/ china-buys-us-soybeans-a-day-after-trade- talkstraders-11196936


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