“About” or “Absolute”? Why 3% Can Make or Break a Cargo Claim

 “About” or “Absolute”? Why 3% Can Make or Break a Cargo Claim

Are You Sure Your Master’s Cargo Declaration Protects You?

• Can one word like "about" save you from a costly short delivery claim?
• Do Masters always need to qualify declared cargo quantities in optional load clauses?
• Could a 2% cargo shortfall end up in arbitration due to missing legal wording?

 

Clause Breakdown: The Power of “About” in Cargo Declarations

In the world of dry bulk chartering, precision matters — but sometimes, ambiguity works in your favor. A seemingly small word like “about” can significantly impact liability for cargo shortfalls.

Let’s break down the issue:

The Legal Interpretation

If a charter party (CP) states a cargo quantity “about 78,600 MT” or includes an Owners’ option to declare the final cargo figure, and the Master uses qualifying language such as “about” or “approximately” in the cargo declaration, the law often implies a tolerance margin of ~3%. This acts as a buffer, protecting Owners from short delivery claims — so long as the shortfall is within the accepted margin.

🔍 Example:
If a CP states:

“78,600 MT, 5% more or less at Owners’ option”
And the Master declares:
“Approximately 78,600 MT”

Then, under English law, a 3% allowance is likely to be granted if cargo loaded falls short (e.g., 76,242 MT). This interpretation is supported by past case law and BIMCO commentaries.

However, if no qualifying term is used (i.e., the Master declares “78,600 MT” plainly), and there’s no mention of “about” in the CP or no valid Owner’s option, then no such margin applies. Any shortfall may only benefit from a de minimis defense — typically just a few tonnes.

Common Pitfalls in Practice

• Master forgets to add "about" or "approx." in the cargo declaration.
• Operators fail to brief Masters on the importance of mirroring CP wording.
• Charter party omits flexibility, locking Owners into fixed obligations.
• Inconsistent documentation between CP, NOR, BLs, and Mates Receipts.

 

Actionable Steps for Shipping Professionals

For Owners / Operators:

1. Ensure the CP includes qualifying terms like “about” or “Owner’s option”.
2. Brief Masters carefully before cargo declaration — emphasize wording.
3. Include sample phrases in Master’s voyage instructions.
4. Align cargo documents (SOF, B/L, NOR, etc.) with CP terms.
5. Document everything — protect yourself in case of claims.

For Charterers:

1. Check declared quantity carefully against CP terms.
2. Challenge vague declarations when margins appear abused.
3. Track shortfalls beyond 1-2% and prepare for legal argument if needed.

 

Conclusion & Call-to-Action

In bulk shipping, small words carry big legal consequences. As seen here, the inclusion — or omission — of "about" in your cargo declaration can mean the difference between a defensible shortfall and a costly claim. Stay ahead by mastering the details that matter.

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⚖️ Disclaimer:

This article is intended for general informational purposes only and does not constitute legal advice. Readers should consult legal professionals for advice specific to their situation. References to case law and interpretations are based on common industry practices and may vary by jurisdiction.