Saturday, August 30, 2025

Hidden Draft Restrictions: Why 417 MT Can Decide Millions in Dry Bulk Shipping

🚒 Hidden Draft Restrictions: Why 417 MT Can Decide Millions in Dry Bulk Shipping

A group of men standing in water

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Have you ever booked full cargo intake—only to discharge less due to “unexpected” draft restrictions?
Do you know why ignoring HOG/SAG (Hogging/Sagging) adjustments in your pre-stow plan can trigger disputes?
Can a few centimeters of draft miscalculation really lead to off-hire, demurrage, or lost trust between Owners and Charterers?

If you said “yes” to any of these, today’s post is for you. Let’s unpack how draft restrictions at canals like Panama—and overlooking HOG/SAG factors—affect real-world shipping outcomes. ⚖️

 

Clause Breakdown – Draft Restrictions & Cargo Intake

In our case, the vessel loaded at Puerto BolΓ­var with a booking of 80,300 MT. But due to Panama Canal draft limits, the final cargo intake had to be adjusted to 79,883 MT—a shortfall of 417 MT.

Why did this happen?

  • Draft Restriction: The Panama Canal Authority imposes strict maximum drafts for safe passage. Even a small excess can prevent a vessel from transiting.
  • HOG/SAG (Hogging & Sagging): The vessel’s longitudinal bending causes differences in draft readings at midships vs. ends. Ignoring this during cargo planning can lead to overestimation of permissible intake.
  • Density (SWD vs. FW): Departure drafts (14.79m @ seawater) vs. arrival drafts (15.20m @ brackish/fresh water) further impacted calculations.

πŸ‘‰ In simple terms: Even if on paper the vessel “fits,” real-world water density, trim, and HOG/SAG must be factored in.

Real-Life Scenario 🌍

A Panamax fixed coal from ECSA to China with a declared intake of 70,000 MT. Due to underestimated fresh-water draft in the Panama Canal, ~1,000 MT had to be lightered offshore. Disputes arose: Charterers argued Owners mis-declared capacity, while Owners pointed to port restrictions not accounted for in the CP.

Industry References

  • BIMCO Commentary: Draft clauses must specify who bears risk of restrictions en route (ports/canals).
  • Case Law: The Aello [1961] reminds us: Charterers warrant that nominated ports (or canals) must be safe for the vessel, considering draft.

 

πŸ› ️ Practical Guidance – Owners, Charterers & Operators

For Owners:
Always disclose realistic intake, factoring draft, HOG/SAG, and density.
Train crew to apply trim/HOG/SAG corrections properly when providing pre-stow plans.
Insist on independent draft surveys at loading ports for accuracy.

For Charterers:
Confirm draft restrictions at all route chokepoints (Panama, Suez, Mississippi, etc.).
Avoid fixing “maximum intake” without considering seasonal draft variations.
Clearly allocate who bears risk/costs of lighterage in CP clauses.

For Operators:
Cross-check voyage intake against Notices to Mariners & Canal Authority updates.
Communicate openly with Masters—ensure JOG/SAG corrections are reported upfront.
Keep stakeholders updated on even small discrepancies (417 MT matters!).

 

🌟 Conclusion + CTA

The humble draft number may look like technical detail, but it governs cargo intake, safety, and profitability.
A missing HOG/SAG correction or overlooked draft restriction isn’t just a math error—it’s a business risk that can cost time, trust, and millions.

πŸ‘‰ Friends, have you ever faced a shortfall because of canal/port draft restrictions? How did you resolve it?
πŸ’¬ Share your story in the comments.
πŸ”— Like, Comment, Share, and Follow ShipOpsInsights with Dattaram for more practical wisdom that keeps our shipping journeys safe, efficient, and human-centered. 🚒⚓

 

⚠️ Disclaimer: This blog is for educational and informational purposes only. It is not intended as legal advice. For specific cases, always consult qualified maritime legal professionals.

 

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