Bulk Cargo Insurance

Cover for bulk commodities shipped in bulk carriers — coal, iron ore, grain and minerals.

About Bulk Cargo Insurance

Bulk cargo refers to commodities loaded directly into a ship's hold without packaging — typically dry bulk (coal, iron ore, grain, fertiliser, cement) or liquid bulk (crude oil, petroleum products, chemicals). South Africa is a major bulk exporter: Richards Bay Coal Terminal is one of the world's largest coal export facilities, while Saldanha Bay handles iron ore from the Northern Cape. Bulk cargo insurance covers the shipper's risk of cargo loss or damage in transit, including during loading and discharge. Standard Institute Cargo Clauses (C) provide named-perils cover, while Clauses (A) provide all-risks cover most suitable for high-value bulk shipments.

Commodity Examples

Coal

Iron ore

Grain (maize, wheat, sorghum)

Manganese ore

Chrome ore

Fertiliser

Cement

Sugar

Main Risks

•Cargo shift in heavy seas
•Moisture damage (grain, fertilisers)
•Contamination during loading/discharge
•Total loss of vessel and cargo
•Port strike delays
•Spontaneous combustion (coal)

Recommended Cover

Institute Cargo Clauses (A) — all risks recommended
War and strikes extension for certain trade routes
Cargo interest liability
Delay cover for perishable bulk

Incoterms Note

Under CIF or CIP terms, the seller is responsible for marine cargo insurance. Under FOB or CFR, the buyer bears the risk once cargo is on board — and should arrange their own marine cargo insurance.

Frequently Asked Questions

Is bulk cargo insurance compulsory for SA exports?

Marine cargo insurance is not legally compulsory in South Africa, but it is commercially essential. Most trade finance facilities, letters of credit and commodity contracts require evidence of cargo insurance. Richards Bay Coal Terminal and Saldanha Bay port operators strongly recommend insurance for all bulk shipments.

What is the difference between ICC (A), (B) and (C) for bulk cargo?

Institute Cargo Clauses (C) cover only specific named perils (fire, sinking, collision). ICC (B) adds additional risks including earthquake and sea water damage. ICC (A) provides all-risks cover and is the most comprehensive — recommended for high-value bulk commodities. Most SA bulk exporters use ICC (A) for iron ore and coal shipments.

Does bulk cargo insurance cover losses during loading at Richards Bay or Saldanha?

Yes — most marine cargo policies cover the cargo "warehouse to warehouse," including during loading operations at the port of origin. Confirm with your broker that your policy covers the loading port and discharge port operations, not just the sea voyage.

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