Brazil

Soya bean exports tainted

China has recently refused the discharge from vessels carrying soya bean meal loaded in Brazil on the ground the cargo is tainted with pesticides. The shipping documents and inspections at loadport did not reveal this contamination. It is uncertain whether the ownership of the cargo has passed to the Chinese receivers but the cargo is being returned and will result in substantial losses. Shipowners should ensure their charterers have the financial ability to meet the cost of additional freight, hire and delays, as recourse against the shippers in Brazil will likely be very time consuming.