SOYBEANS

INTRODUCTION TO SOYBEANS
What are Soybeans

Soybeans are a variety of edible bean also known as Soybeans or Glycine

max.
Soybeans are also sometimes referred to as edamame, although this term
is usually reserved for immature Soybeans or the dish comprised of
steamed immature Soybeans.
This bean is native to East Asia, but is know widely cultivated and
consumed across the globe. Soybean products are used for human
consumption, animal feed, and variety of non-food consumer and
industrial products.

Why do we care?

Simply because Soybeans are one of the major cargoes shipped around
the world.
Soybean Products:

Soybeans have been a staple food in

many parts of the world for
thousands of years.
During that time, several different
products have been made using
Soybeans, allowing humans to
enjoy them in many different
dishes.
 Soybeans Trade:

Percentage Market total exports value is $50.6B

Country Million Country
Exports Metric tons Imports Of the
market % USA: Exports to China 64%, Mexico 6.6%,
USA 108,000 MT China 67% Japan 4.5%
Brazil 86,800 MT Netherlands 3.7% Brazil: Exports to China 76%, Spain 3.2%,
Argentina 53,400 MT Mexico 3.2% Netherlands 3.0%
China 12,200 MT Japan 3.0%
Argentina: Exports to China 86%, Egypt
India 10,500 MT Spain 2.5% 6.7%, USA 1.2%
Paraguay 10,000 MT Germany 2.5%
China: Exports to South Korea 33%, Japan
Canada 6,000 MT Russia 1.9%
26%, USA 19%
Ukraine 3,900 MT Indonesia 1.9%
Turkey 1.7%
Bolivia 3,300 MT South Korea 1.2%₁
Uruguay 3,200 MT₁

1. http://www.worldatlas.com/articles/world-leaders-in-soya-soybean-production-by-country.html
Soybeans in Bulk

Soybeans are, of course, a perishable commodity. The concept of ‘safe

storage’ is probably incorrect since there is no particular set of conditions
under which bulk Soybeans cannot be damaged.

There are two crucial aspects you should be careful of:

• Heat
• Moisture

The period of safe storage (before noticeable deterioration occurs) depends

largely on the initial MC, the temperature of the Soybeans at loading and the
subsequent storage conditions; higher temperatures and MC increase the rate
of deterioration.
Soybeans in Bulk

Fully matured Soybeans may be kept for a virtually unlimited time after
drying.
With a water content of 8%, Soybeans have a very good storage life and thus
also well suited to being transported for relatively long periods and in bulk.

Shipping is possible all year round, but should be as soon as possible after
harvest, in order to avoid transporting excessively old goods.

The year of harvest should therefore be ascertained before loading is begun.

Soybeans are generally transported as bulk cargo but occasionally also as
break bulk cargo in bags of woven materials or woven plastic bags.
Soybeans coming from certain countries, can be problematic

For example: Soybean cargoes that are loaded from Brazil, are usually transported
to the loading port by truck and railcar. For some of the riverine ports in the north,
cargo is usually received by river barges.
When at the port, the cargo is loaded by means of conveyor belts from the
warehouse to the vessel and there are times where the belts are wet due to
previous heavy rain.
This contributes negatively to the MC of the cargo.

Similar situation as in Brazil applies also to Uruguay.

International Grain Code 1991
International Grain Code 1991

It is worth noting that the IMSBC Code doesn’t cover the carriage of grain in bulk.
The specific requirements for the transport of grain are covered by the International Grain Code 1991.

The International Code for the Safe Carriage of Grain in Bulk (International Grain Code), adopted by
resolution MSC.23 (59), has been mandatory under SOLAS chapter VI since 1 January 1994.
The term "grain" covers wheat, maize (corn), oats, rye, barley, rice, pulses, seeds and processed forms
thereof, whose behavior is similar to that of grain in its natural state.
The International Grain Code applies to vessels regardless of size, including those of less than
500 gross tonnage, engaged in the carriage of grain in bulk and to which part C of SOLAS chapter VI
applies.
The purpose of the Code is to provide an international standard for the safe carriage of grain in bulk.
Loading Operations
Quality and Recognition of the Cargo₁

Usually the Master and the crew will recognize the type of
commodity being loaded, for example Soybeans or maize

BUT

Since they are not cargo specialists it is difficult for the Master
and the crew to recognize whether Soybeans cargoes are not
loaded ‘in apparent good order and condition’ as described in the
Bills of Lading.

This is predominantly due to the high speed at which the cargo is

loaded and that the quality of Soybeans can only be accurately
assessed by the laboratory analysis of representative samples
obtained throughout loading.
Quality and Recognition of the Cargo₃
CERTIFICATIONS

The Master will receive either:

 A quality specification for the Soybeans to be loaded or,

 Quality Certificate representing the average quality of the cargo loaded on board

Quality Certificate:

This certificate is usually issued to the cargo buyer after the Vessel has sailed, when the samples, obtained
by cargo superintendents/sampling attendants throughout loading on behalf of shippers, have been
composited and analysed.

Note that while a quality certificate can be requested from shippers, the Master may not receive analytical
information regarding the quality of the cargo being loaded and so will have to rely on a visual assessment
of the cargo condition during loading, which as explained above can be challenging for non-specialists.
Allowable Storage Time for Soybeans

Allowable storage time exceeds 300days:

MC (%) --- Grain Temperature (°F) ---
30° 40° 50° 60° 70° 80° • Allowable storage time is the storage
Approximate Allowable Storage Time (Days) period before quality loss is expected
11 %* * * * 200 140 to affect grain quality.
12 %* * * 240 125 70
13 %* * 230 120 70 40 • Airflow through the grain permits
14 %* 280 130 75 45 20 maintaining the grain temperature, but
15 %* 200 90 50 30 15 doesn’t extend the allowable storage
16 %* 140 70 35 20 10 time beyond that listed in the table.
17 %* 90 50 25 14 7
19 %190 60 30 15 8 3 • Allowable storage time is cumulative. If
21 %130 40 15 10 6 2 16% moisture soybeans were stored
23 %90 35 12 8 5 2 for 35 days at 50°F, one-half of the
25 %70 30 10 7 4 2 storage life has been used.
27 %60 25 5 5 3 1
HOLD AND PREPARATION BEFORE LOADING₁

The Vessel’s hold should be cleaned prior to loading a cargo of Soybeans. There are several grades of
cleaning.
For Soybeans the cleanliness required is generally regarded as one grade below hospital clean (which is the
stringent), namely ‘grain clean’.
‘Grain clean’ is by far the most common standard of cleanliness used in the transport and break bulk
cargoes, but note that is some cases instruction on hold cleaning may be provided by the charterer prior to
loading.
HOLD AND PREPARATION BEFORE LOADING₂

The US National Cargo Bureau suggests that in order for a hold to be certified ‘grain clean’, and thus fit
for loading a cargo such as Soybeans, the hold should be free of the following:
• Stains and residues of the previous cargo
• Loose rust scale and paint scale
• Any other contaminants
• Insect infestation
• Odors
• Moisture
For grain clean the washing of the holds may be conducted twice, with the first round of washing using
seawater and the second using freshwater. The extent of cleaning required is dependent on the previous
cargo carried.
Before loading it would be prudent for the Master to carry out a hose test to ensure that the hatch
covers and ventilation windows are weather tight.
DURING LOADING₁

Soybeans cargoes can be loaded in a number of ways:

• Directly from barges

• From flat warehouses
• From silos
• From trucks

In many cases, the cargo is transferred to the Vessel by conveyor belt and loaded by pipe.
If loading is conducted from barges, it is worthwhile that the crew note the number and/or names of the
barges and the holds into which each barge loads.

During loading we should:

• Recording the sequence of hold loading in all circumstances.
• Taking clear photographs of how the cargo is delivered to the vessel as well as how it is loaded will be
invaluable in the event of a claim.
DURING LOADING₂

Monitor Cargo Temperature:

The crew should record the cargo temperature at the time of loading.
This should preferably done with a digital thermometer and
thermocouple probe.

Such information will help cargo experts should problems arise in

determining how much the temperature has increased and it will be
providing information to assist cargo stability.

Further this information can be used by owners when defending cargo

claims at the discharge port.
Loss & Prevention Tips at the Load Port
Loss and Prevention Tips at the Load Port

Due to the recent problems with moisture of the Soybeans on shipment is a good idea to appoint a
local surveyor. The local surveyor should be briefed and asked to do the following:

• Ascertain what were the weather conditions that applied to this crop?
• Was there much rain?
• Inspect the cargo throughout loading, recording visual appearance, odour and in particular cargo
temperature throughout.
• Is the cargo in apparent good order and condition, or are there specific concerns about the condition
of the cargo?
• If so, the surveyor will need to assist the master in preparing letters or protests and/or clausing the
mate’s receipts and bills of lading.
• Was the cargo delivered by barge? If so, what was the route? Was the barge covered?
Loss and Prevention Tips at the Load Port

• Speak to the shippers and their superintendents to collect information about the pre-loading history
of the cargo. If the cargo is loaded from silos – what are the harvest dates? How long has the cargo
been in the silos prior to loading? Were intake samples tested for moisture from the lorry deliveries
to the silo? Are temperature logs available during silo storage?
• The cargo is loaded from barges, inspect the barge cargo prior to transshipment for signs of heating,
mouldiness, off-odors etc. and carry out a temperature survey in each barge prior to transshipment.
Where and when was each loaded? Are barge quality/moisture certificates available? When was the
cargo harvested?
• Observe and describe the sampling operations carried out by shippers superintendents. How and
where are they taking samples? At what sampling frequency? What final samples are being
prepared? Obtain a copy of the sampling protocol, if possible.
• Record weather information during loading, including rain and temperatures. In case of rain, is the
cargo adequately protected prior to loading?
Moisture-Ventilation-Fumigation
Soybeans are a Perishable Commodity:

Soybeans are, of course, a perishable commodity and one cannot expect to store them indefinitely.
The concept of ‘safe storage’ is probably incorrect since there is no particular set of conditions
under which bulk soybeans cannot be damaged.
However, the two crucial aspects are heat and moisture.
The period of safe storage (before noticeable deterioration occurs) depends largely on the initial
moisture, the temperature of the beans at loading and the subsequent storage conditions, higher
temperatures and MC increase the rate of deterioration.
Moisture₁:

The effect of MC on the shipment of Soybeans has been summed up in a House of Lords
Judgement (Soya G.M.B.H. Mainz Kommanditgesellschaft v. White, 1983) which held that:

 It is a natural characteristic of Soybeans when shipped in bulk that if the MC of the bulk exceeds
14 per cent, micro-biological action, the nature and causes of which are unknown, will inevitably
cause the Soybeans to deteriorate during the course of a normal voyage from Indonesia to
Northern Europe to an extent which will considerably reduce their value on arrival.
 With MC of between 12 and 14 per cent (below 12 per cent no micro-biological action occurs),
there is a risk that deterioration from micro-biological action can occur during the course of such
a voyage. Whether it does or not depends upon factors that remain unknown. The range of MC
between 12 and 14 per cent is referred to as the ‘grey area’.
Moisture₂:

The American Society of Agricultural Engineers (ASAE) has published definitive data on the
relationship between the MC of Soybeans and the equilibrium relative humidity of the surrounding
air at a variety of temperatures.

This data shows that Soybeans are in equilibrium with surrounding air at 25degrees at a MC of 13%
to 13.3% at 65% relative humidity.

This means that at 25 degrees, Soybeans with a MC higher than 13.3 % will have an increased risk
of being damaged during long term storage. Equally, Soybeans with a MC lower than 13.3 % at
25 degrees will have a decreased risk of being damaged; below 13% the risk is minimal.

At temperatures above 25 degrees, the MC must be lower than 13% for safe storage, while at
temperatures below 25degrees it can be higher.

From a loss prevention point of view as well as a claims handling perspective, however, we would
state that each cargo must be viewed individually.
Moisture₃:

Factors which we should check:

1. Age
2. Moisture content
3. Oil content
4. FFA (Free Fatty Acid) content
5. Temperature
6. Storage conditions
7. Transport history
Ventilation₁:

Soybeans are a living cargo so there will be a natural tendency for cargoes composed of them to
heat up because of biological activity.

Most natural organic products, including Soybeans, loaded in equatorial and tropical climates tend
to throw off warm, moist air during a voyage. While the Vessel remains in equatorial waters, there
is little risk of Vessel’s sweat occurring, as the Vessel remains at a temperature close to or above
the dew point. However, when the Vessel enters colder waters and the structure cools, there can
then be a significant risk of the Vessel’s sweat occurring. Vessel’s sweat can be prevented by
ventilating the cargo spaces.

Ventilation can remove the warm moist air thrown off by the cargo with drier outside air, before
sweat can form on the inside of the hold. However, the dew point of the outside air must be below
the dew point of the air in the hold. If the temperature in the hold is lower than the dew point of
the ventilating air, moisture in the outside air will deposit in the hold.
Ventilation₂:

When we should ventilate?

By measuring the dew point of the air in the hold and if this is higher than the air outside, then
ventilation should take place. Changing the air in the hold in this case will ventilate the cargo
space with little risk of consideration occurring.

Ventilation should be restricted if the dew point of the outside air is higher than the temperature
of the cargo. To ventilate under these conditions would cause condensation on the cargo when
the outside air with a higher dew point comes into the cargo spaces.

The temperature of the air both outside and in the holds should be regularly taken, along with
dew point readings.

By knowing these figures, the decision of weather to ventilate or not can be taken.
Ventilation₃:

However, ventilation only affects the surface of the stow, thus only removing heat from the top.
Owing to the nature of Soybeans cargoes, changes in temperature and humidity at the surface of
a fully laden hold will not be felt throughout the hold; changes at the surface of a grain type cargo
will not be felt by the material at the center of the hold.

It follows then that the condition of a grain type cargo, with the exception of the surface layers,
will be almost entirely dependent on the condition of the cargo at the time it was put into the
hold.

Thus, ventilation can be carried out at all the times that the dew point or temperature
determinations indicate, and this practice should be followed to maximize ventilation and reduce
risk of damage at the surface of the cargo.

It is not necessary to cease ventilating during the day or night, unless the outside air is unsuitable
in terms of dew point or adverse weather/sea conditions are imminent.
Ventilation₄:

The three-degree rule: says that a hygroscopic cargo should be ventilated when the temperature
of the outside air is at least 3°C below that of the cargo temperature taken at loading. This rule
avoids  the need to take readings in the holds after the voyage has commenced and relies on the
fact that the temperature of hygroscopic cargoes, except at their boundaries, changes very slowly
during a voyage. However it should be noted that one authority advises that the ventilation of
grain cargoes is likely to do more harm than good.
Fumigation:

Fumigation of Soybean cargo may be required because of insect infestation found at loading,
compliance with contractual specifications, or to issue a phytosanitary inspection certification.
voyage times between countries where Soybeans are grown and countries where Soybeans are in
demand, can range from three to six weeks.
Rather than undertaking a lengthy fumigation at the port of origin, Soybeans are normally
fumigated on passage. Recently, it has become apparent that fumigators are requesting much
longer fumigation times than has previously been the case.
Note that on most Handymax and Panamax Vessels, the fumigant is possibly of limited effect if only
applied to the surface of the stow, and would be far more effective if ‘trenched in’. For Vessels with
holds deeper than 20m, typically cape-size Vessels, the use of a recirculation system needs to be
considered.
Using a recirculation system can reduce the fumigation period on typical Handymax and Panamax
Vessels from 18 to 9 days or less.
Discharging Operations
Discharging Operation:

Discharge as quickly as possible:

The only thing that can be done to control the self-heating is to discharge the cargoes quickly as
possible and to place it in a silo where it can be properly cared for, or better, processed promptly into
oil and meal.
Suggestions to do at the discharge port:
1. In the event the cargo is loaded with a high MC above 12%, we suggest that a surveyor is
appointed at the discharge port to attend the Vessel throughout discharging operations.
2. The surveyors should take samples and gather evidence for preparation of any anticipated claims.
3. Segregate cargo and make sure the cargo of different specs in not mixed.
4. Monitor quantity of the different spec cargo discharged.
5. Keep all Vessel records and preserve documents, such as ventilation and log books.
KEY POINTS OF THE PRESENTATION
Key Points₁:

• The main cause of heating in Soybean cargoes is excessive

moisture. Thus, inquiries should be made in order to provide as
much information as possible on this point.
• Before engaging in this trade, members should always consider,
what their charterparty provides, but also what their sub-charter
provisions may be. It can be, especially for the time charterer, that
they will face different demands from their owners compared to
what the shipper/voyage charterer expect.
• For those members engaging regularly in this trade, it will be
appropriate to consider special charter provisions as well as load
port sampling regimes in order to manage the risks involved.
Key Points₂:

• Ideally, the following documents should be obtained for each cargo of Soybeans carried,
particularly so in the event that a claim for damage to the cargo is made:
1. Pre-loading survey report, if possible.
2. The moisture certificate, or certificate of quality, at shipment.
3. Copies of both the head charterparty and, if possible, any sub charterparty (assuming you are
acting for charterers); if acting for owners, only the head charterparty may be available.
4. Copy of the bill of lading.
5. Copy of the mate’s receipts.
6. Statement of Facts at load port.
7. Stowage plan (especially if loading from more than one port).

• Ventilation can be carried out at all times that the dew point of the temperature determinations
indicate, and this practice should be followed to maximize ventilation and reduce risk or damage at
the surface of the cargo. It isn’t necessary to cease ventilating during the day or night, unless the
outside air is unsuitable in terms of dew point or adverse weather/sea conditions are imminent.
Key Points₃:

• Often the shippers don’t provide any information to the Vessel on how to stow and protect the
cargo, leaving this to the Master’s discretion (subject to charter provisions between owners and
charterers). The aim of ventilation is to minimize any adverse changes that might result in moisture
damage to a cargo. A question may therefore arise as to whether a Vessel carried out sufficient
ventilation of the cargo and whether any of the alleged damage could be attributed to the
ventilation strategy adopted.
• The Vessel should always record the ventilation strategy followed during the voyage.
• Chinese Courts appear to attach great weight to these records and have often found against the
Vessel damage when there are no records to show the cargo has been ventilated.
• If the cargo appears sound on arrival, this can help to minimize any potential problems; cases have
occurred where the acceptance or refusal of the cargo has depended on the presence of a few kilos
of surface mould.
Key Points₄:

• When loading Soybean cargo, consider whether it is worthwhile appointing a surveyor to

assist at the load port. A specialist cargo surveyor may be particularly helpful in monitoring
the condition of the cargo during loading. Moisture and temperature readings of the cargo
as it is being put into the holds can provide an indication as to the likelihood of deterioration
of the cargo during the voyage.
Analysis of a Soybeans Case
Soybean Case₁:

• Before arrival the holds were washed with saltwater, chemicals, saltwater and rinsed with
fresh water.

• Arrival at San Lorenzo on 25th of April 2015. A hold clean inspection was passed by
independent and government inspectors on 28th April 2015. Holds 1,2,4 and 5 were
accepted for loading. A hold inspection report was issued.

• The Vessel berthed portside next to the terminal. The cargo was delivered by barge to the
terminal and then loaded on board by elevator.

• The was rain during loading. The Captain didn’t allowed the stevedores to load cargo
during rain.

• The loading was delayed several times. The stevedores advised that the delays were due
to the cargo being delivered to the terminal by barge.

• There were also delays during loading due to elevator failure/inconveniences and lack of
cargo.
Soybean Case₂:

• The Captain stated that the barges were discharging cargo to the terminal upriver in front
of the Vessel. Moreover the Captain noted that he was not an expert on Soybeans but he
said that the cargo appeared to be in a normal condition. (It was not noticeably wet or
discolored)

• No surveyors attended on board to sample or inspect the cargo during loading.

• The stevedores measured the cargo temperature and verbally advised that the cargo was
about 20degrees which temperature appeared normal.

• The cargo was not fumigated at San Lorenzo as there was further cargo to be loaded at
Necochea.

• The cargo loading was monitored by the crew and the Captain and no problems with the
cargo observed.
Soybean Case₃:

• No cargo quality documentation was received for the cargo. The Captain requested these
several times from the agent and was only provided with a Form for Cargo Information by
email about 5 days after sailing from San Lorenzo. This form was only stating that the MC
was not more than 13,5. No temperature limits or temperature information were included
in the Form for Cargo Information.

• No ventilation instruction was provided by charterers before or after loading at San

Lorenzo. Between San Lorenzo and Necochea, the cargo was ventilated to the three
degree rule.

• The temperature of the cargo was measured via sounding pipes and recorded during the
voyage to the next load port. The voyage to Necochea was about 3 days. The Captain did
not measured high temperatures so he didn’t have any concern about the cargo.

• The Vessel arrived at Necochea on 7th of May 2015 and waited to anchorage until 13th of
May 2015.

• Hold 3 was inspected by independent and government inspectors on 13 th of May 2015 and
passed for loading. A hold inspection report was issued.
Soybean Case₄:

• The cargo was loaded into Hold 3 from the terminal without any problem. The cargo was
delivered to the terminal by trucks which were covered. No surveyors inspected or
sampled the cargo on board during loading. The cargo was loaded by conveyor.

• Moreover Hold 5 was prepared for loading additional cargo on top of the cargo which has
been loaded into Hold 5 at San Lorenzo. The stevedores applied tarpaulin to the surface of
the cargo in Hold 5 for the further cargo to be loaded on top.

• A surveyor inspected Hold 5 and the tarpaulin. After the inspection the surveyor had not
passed Hold 5 for further loading of the cargo on the basis that the cargo that had been
already been loaded into the Hold at San Lorenzo was showing high temperatures.

• As a result the sailing was postponed for a joint survey. On 14 th of May 2015, surveyors for
Owners, Charterers, Voyage Charterers and Receivers inspected the cargo.

• The joint survey was the first time the cargo was inspected. The Vessel was provided with
4 samples after the survey at Necochea.

• The Captain was informed about moldy patches of cargo in Holds 1 and 2. As at San
Lorenzo, no cargo documentation was received for the cargo loaded at Necochea.
Soybean Case₅:

• Following completion of loading at Necochea, the Holds were fumigated on 15 th Of May

2015. According to the fumigation notice, the fumigation period was 10 days, during which
period the holds, manholes, ventilators, etc. were required to be completely sealed.

• The Vessel sailed on 15th of May 2015.

• No instructions were received from charterers or shippers regarding ventilation of the

cargo after the fumigation period, even though instructions were requested from
charterers. Therefore, after the fumigation period ended and from 26 th of May 2015
onwards, the cargo was ventilated to the three degree rule whenever possible.

• However, due to bad weather and spray on the hatch covers, it was only possible to
ventilate on 10 days of the 36 day voyage to Chittagong.

• On 12th of June 2015, the cargo holds were able to be opened for inspection of the cargo
surface and temperature measurements. Mouldy cargo was observed on the surface of
the cargo in Holds 1,2,4 and 5.
Soybean Case₆:

• The Owners in conjunction with shippers, taken the decision to remove the mouldy cargo
from the holds in order for the cargo to pass inspection by the health authorities at the
discharge port.

• Accordingly, on 13th of June 2015, the mouldy cargo was removed from Holds 1,2, 4 and 5
between 13 and 19 of June 2015.

• The Vessel arrived at the Chittagong on the 20th of June 2015.

Questions:

1. Which are the elements that defines the period time on which the safe storage of
Soybeans depends on?

2. Which Code covers the instructions of the safe carriage of Soybeans in bulk.

3. What Certifications do we need as Owners? What those Certifications should

include and why?

4. What is the grade of cleaning the holds required for the carriage of Soybeans?

5. What we should do during loading of Soybeans?

6. Which percentage of MC in Soybeans is considered as grey area and why?

7. What we should check about the moisture of Soybeans what are the factors that
affects the storage of Soybeans?

8. Why is important the ventilation of Soybeans during the voyage? What should
worry us? What we should be aware of? What is the 3 degree rule?