Recent P&I claims in the Algerian bulk sector demonstrate that certain trades and jurisdictions carry an elevated risk of shortage claims. These claims are often not the result of actual cargo loss but arise from inefficiencies in the discharge and measurement process, such as spillage, inconsistent tallying, inaccuracies in weighbridge systems, and discrepancies in load port figures.
While many jurisdictions apply a customary loss allowance, this principle is not consistently applied in Algeria, particularly by private importers and their insurers. As a result, claims are frequently pursued even in cases of relatively small discrepancies.
Once a shortage claim is alleged, security is often demanded at an early stage, sometimes even before completion of discharge. Failure to provide security, often by way of a bank guarantee, may result in the vessel being arrested.
When disputes are subsequently handled, they are in practice often settled in order to avoid protracted proceedings, which may last several years. This means that there is a structural risk in this trade and a proactive approach is essential to limit the exposure. Continued discharge monitoring—such as joint draft surveys, continuous surveyor attendance and accurate tallying —can help limit exposure, while early coordination with charterers and P&I Clubs on security and claims strategy is key to preventing escalation.
NNPC Marine Insurance supports clients with insight into high-risk trades and assists in proactive risk management, including prevention, preparation, and claims strategy alignment. For further information, please contact claims@nnpc-marine.com.
