Palm Oil Cargo Problems

Transshipment of cargo like CPO (Crude Palm Oil) and other palm products (palm olein, palm stearin) is performed at the terminals of Odessa and Chornomorsk ports. The main problems with palm products cargo can be generally divided into three main categories:

1. Problems related to cargo quality

2. Problems related to cargo quantity

3. Problems with ship equipment designated for palm oil products. In particular, the problems may be the following:

• The discrepancy of temperature from the Heating Instruction during the voyage and before the discharge (underheating).

• The discrepancy of temperature from the Heating Instruction during the voyage and before the discharge (overheating).

• Cargo loading in improperly prepared tanks (not clean tanks, with residues of cargo, scales of rust).

• Unsuitable tanks coating.

• Admixtures contamination of cargo parcel especially if cargo loaded in the same tanks from several ports or re-loaded from one tank to another.

• Lack or problem with proper ship heating equipment for palm products carriage.

• The difference in calculations between the Vessel figure and shore quantity shortage.

• Different cargo density.

• Problems with cargo transshipment with ship hoses, pipeline equipment (during the winter period). Case study We handled a case with CPO cargo problem which was discharged at the port terminal during the winter period. During our inspection, it was found that due to cold weather cargo was in solid condition and temperature regime was not in line with heating instructions. This resulted in problems with ship transshipment equipment (ship hoses) designated for palm oil products during discharge operations. As a result, delay in discharge operations occurred. We handled the dispute with cargo receivers and have found a relevant solution.


Due to our involvement, the vessel sailed without delay. The Club’s LOU was agreed and accepted. Sum of claim was reduced significantly.

P&I Correspondents recommendations:

• Appoint a qualified surveyor for palm oil products in advance in order to make relevant measurements and calculation, check ullage reports, assist Master in dispute with charterer/receivers/terminal, etc. • Master should prepare The Letter of Protest to charterers/terminal and lodge it to all parties concerned, Letter issued without any responsibility for the terminal’s density, shore quantity calculation and with reference to the Vessel's Ullage Report before discharge commencement and with a detailed list of delays and/or stoppages by shore reason. • In case of shortage on Letter of Protest, make a statement that all Сargo was discharged in accordance to the Bills of Lading quantity and the Vessel’s Ullage reports before and after the discharge commencement, the vessel is NOT responsible for shore calculation. • Master should prepare time sheet of all developments with the ship/cargo. • Temperature logs during the voyage should be completed properly as per cargo heating Instructions. • Clean tanks certificates should be issued upon completion of discharge of full cargo for all vessel tanks. • All ship transshipment equipment (hoses, pipeline) should be maintained in working condition. • If necessary, take cargo samples to make an analysis at the internationally recognized independent laboratory.