Refrigerated

Containers

CARGO
Refrigerated Containers
CONTENTS Analysis of Cargo Damage
For the purposes of this briefing, data covering a five year
Introduction................................................................................................... 01
period with regard to refrigerated container cargo claims was
Analysis of Cargo Damage...................................................................... 01
considered.
Deviation of Temperature & Atmosphere....................................... 02
The Cold Chain.............................................................................................. 03 The type of reefer container cargo can be categorised as
Maintenance of Refrigerated Containers........................................ 03 follows:
Bills of Lading & Agreements............................................................... 04 a) Living organic – fresh fruit and vegetable cargo kept
Typical Contracts & Agreements......................................................... 05 refrigerated.
Loss Prevention............................................................................................ 05 b) Non-living organic – such as frozen meat cargoes.
Caring for the Cargo................................................................................... 05
c) Inert – non-foodstuffs such as pharmaceuticals.
Defending a claim and mitigation of damage................................ 07
Glossary...........................................................................................................08 The analysis identified the breakdown of reefer container cargo
claims by cargo type as shown in Figure 2.

Introduction It is perhaps not surprising that a large proportion related to the

The carriage of cargo in refrigerated containers, also known as carriage of living organic cargoes, given the inherent
‘reefer’ containers, presents a number of challenges. sensitivities and unique challenges some of these cargoes
present.
The carrier’s responsibility may only be for the sea transit but
increasingly combined and multimodal bills of lading are used Furthermore, when all reefer container cargo claims were
and the carrier’s responsibility is extended from the point of considered for the period under review, 96% were related to
leaving the shipper’s premises up to delivery to the consignee. the claim category of ‘cargo - damage’.
Therefore this includes road or rail overland haulage and the As most of the cargo damage type claims involved living
periods of time the boxes are held at container terminals. Either organic cargoes as opposed to non-living organic and inert,
way, these are critical links in the cold chain. these were further analysed in order to identify the actual
Reefer cargoes are of a sensitive nature. In addition to the nature of the damage to the cargo. This is shown in Figure 3.
requirements to maintain the correct temperature of the cargo, It is apparent that in terms of number, a significant proportion
there is often the need to provide the correct atmosphere of the claims relate to temperature deviation.
within the reefer by means of Controlled Atmosphere (CA)
which presents further challenges. To analyse causation, claims data as reviewed by the Club’s
Loss Prevention Department over a representative period of
This briefing will identify and address the common problems time was considered.
encountered which can lead to the damage of cargo and
potential claims, as well as considering the basics of this type of Causative and contributory factors were identified in each case.
carriage. Figure 4 shows the distribution of what were considered to be
the causal factors.
The analysis identified two common issues:
1. Prolonged periods of time off-power – occurring at
terminals, shipper/consignee’s premises, overland haulage
and onboard the carrying vessel.
2. The technical malfunction of the refrigeration unit and/or
its control system and sensors. This included the
Controlled Atmosphere unit.
Both of the above ultimately result in the deviation of
temperature and/or atmosphere.

Figure 1: Integrated Reefer Continaer

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01 Cargo / Refrigerated Containers

Refrigerated Containers (cont.)
Shipper’s premises (post-stuffing)
Load port terminal or any intermediate ports
Onboard carrying vessel(s)
Discharge port terminal
Consignee’s premises (prior to de-vanning)
During any road or rail transfer

d. Inappropriate stowage within the container. There should

be no gaps of a magnitude that would allow short circuiting
of the air flow. The T-bar floor should be clean and clear of
any obstructions, and the maximum stowage height must
not be exceeded.
Figure 2: Reefer Containers - Number of Claims by Cargo Type
e. Hot/Warm stuffing. Reefer containers are generally not
designed to bring down the temperatures of warm cargoes
to the desired level – they are designed to maintain
temperature within the unit and cargo being loaded should
already be at the desired temperature. The exception being
some banana cargoes, where there is a common and
accepted practice of stuffing the container with the fruit at
ambient temperatures.
f. Advanced and premature ripening of climacteric cargoes.
Such cargoes generate high levels of ethylene during their
ripening process, and can emit a notable degree of heat
Figure 3: Living Organic Reefer Claims - Nature of Damage energy. These cargoes may also be ethylene sensitive, so if
one part of the cargo has ripened prematurely, the process
will accelerate at a rapid rate to the surrounding cargo.
Therefore fruit that has advanced maturity at time of
stuffing can possibly lead to significant damage to the rest
of the cargo.
g. Incorrectly set parameters such as temperature, or
confusing °C/°F can lead to incorrect conditions. Freezing
injury can cause just as significant damage as elevated
temperatures. Incorrectly set ventilation can also lead to
cargo damage and poor humidity control.

Figure 4: Reefer Cargo Claims Causation Analysis

Deviation of Temperature and Atmosphere

Temperature deviation of a reefer container can be caused by a
number of factors.
Some of the common causes of temperature deviation,
including Controlled Atmosphere (CA) deviation are listed
below (and in no particular order):
a. Malfunction of the refrigerated system, controller or its
Figure 5: Premature Ripening & Spoiling
components. This may include failure of a compressor, fan,
probes or loss of refrigerant.
The Cold Chain
b. Malfunction of the CA system, controller or its
Each cargo, and in particular living organic cargo, has specific
components. This may also include CO2 gas leakage.
carriage requirements. To ensure the cargo reaches its final
c. Prolonged periods of time off-power at any of the following destination (such as a supermarket) in perfect order, the correct
locations: conditions must be maintained throughout shipment, i.e. from

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02 Cargo / Refrigerated Containers

Refrigerated Containers (cont.)
harvest to point of sale. This is effectively ‘The Cold Chain’. referred to as the CSC.
There is a responsibility on the shipper to provide the correct The CSC requires that the container must be structurally safe
carriage instructions and a responsibility on other parties to and be thoroughly examined visually at least every 30 months
ensure these conditions are maintained. (or during the course of normal operations if subscribed to the
continuous examination program ACEP). A compliant container
In the case of living organic cargo, there may be a requirement
will be fitted with a valid safety approval plate (also known as a
to pre-cool and initiate the cold chain immediately upon
‘CSC Plate’).
harvesting. The shipper should ensure that the cargo has
already been cooled to the desired carriage temperature at the
point of stuffing the container (in some cases bananas may be
excepted, as explained earlier).
An essential part of maintaining the cold chain is to ensure the
reefer containers remains plugged into a reliable power source
and that times off-power are kept to a minimum.
Periods of time off-power are inevitable, such as when the
container is transferred from the truck power supply; moving
within the terminal; and loading/discharging onboard the
carrying vessel. But it is essential that power is restored in a
timely manner and that procedures are in place to ensure these
are undertaken.
Checking and recording temperatures and ventilation settings
at appropriate intervals is another important aspect of
maintaining the cold chain. Agreements should be in place with Figure 7: Container CSC Plate
the terminals and the carrying ship(s) to ensure regular
However, the CSC does not address the integral machinery of
inspections are carried out, operational logs are maintained,
refrigerated and controlled atmosphere containers.
and that appropriate action will be taken in the event of a
deviation from the desired conditions. Classification Societies, in their procedures for type approval
and initial certification, do detail the requirements for the
More detailed loss prevention advice relating to each link of the
refrigeration equipment. These standards state the minimum
cold chain can be found further on in this briefing.
performance requirements of the refrigeration system as well
as the thermal characteristics of the container and its
insulation. However, these are aimed only at newly constructed
reefer containers, and not enforced during the container’s life.
It is therefore down to the owner of the container to maintain it
and its equipment to a satisfactory standard, and carry out any
maintenance in accordance with manufacturers’ guidelines.
Service guides for the different makes and models of
refrigeration containers are generally readily available. The
scope of recommended maintenance differs between
manufacturers; some are quite basic and others relatively
comprehensive. Manufacturers also differ on maintenance
Figure 6: Monitoring of Reefer Temperatures intervals, with some calendar based and some working on the
Maintenance of Refrigerated Containers accumulated running hours of components.

The safe condition and maintenance of the refrigerated The very nature of the container trade means that it is very
container and its integral refrigeration equipment is the difficult to determine the future movements of a unit.
responsibility of the container owner. Unpredictable itineraries clearly make it difficult to monitor
running hours and satisfy arranged planned maintenance
There are recognised standards and appropriate regulation in
schedules. Container owners are usually encouraged to enter
place for the structural aspects of all containers used for sea
into service agreements with reliable manufacturer approved
transportation. These are laid down in the IMO International
companies with worldwide coverage.
Convention for Safe Containers 1972 (as amended), often

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03 Cargo / Refrigerated Containers

Refrigerated Containers (cont.)
Each reefer container should have a log book which records all Door to Door
planned maintenance, overhauls and repairs. This log book
A Combined Bill of Lading (BIMCO COMBICON) or Multimodal
may be kept with the container and found in a safe location
Bill of Lading (MULTIDOC 95) is generally used. The liabilities are
such as inside the control panel.
dependent on if the B/L covers from point of collection to point
It is apparent that there is a significant reliance on the pre-trip of delivery or is less onerous on the carrier, as well as if it is
inspection (PTI) which should be carried out before each use. known where the loss or damage occurred.
The scope of a PTI should consist of:
Liability if the stage at which loss occurred is known:
Auto PTI – a self-diagnostic program carried out by the
Onboard ship - Hague or Hague-Visby Rules
controller to check the status of components and probes.
Road Carriage - EU CMR 1956, UK RHA 1991 & relevant
Visual inspection of the container and its refrigeration (and
compulsory national laws
CA if applicable) system and components.
Operational check of the container and its equipment (which Liability if the stage at which loss occurred is not known:
be part of an expanded auto PTI, depending on type). Assume onboard ship - Hague or Hague-Visby Rules

The PTI is often carried out by a local authorised service The B/L should include the carriage instructions and the
provider (ASP), and in some cases can be arranged by the carrier’s obligation regarding these requirements.
container terminal.
There have been numerous instances where these instructions
On some models of reefer container, the details of the PTI may have not been sufficiently accurate. A common finding is that
form part of the event data download. the ventilation settings have been stated in percentages rather
than actual volumetric flow rates.
Bills of Lading & Agreements
The instruction with regard to the carriage temperature should
There are potentially a significant number of contracts and be limited to the carrier’s obligation to maintain a specific air
agreements in place between the various parties related to the temperature set point as this is generally the only controllable
carriage of containers. The flowchart on page 6 illustrates the temperature parameter.
typical agreements in use between shippers, liner operators,
slot charterers etc. The instructions may also include requirements for Controlled
Atmosphere (stipulating CO2 and O2 levels) and relative
BIMCO have a number of relevant charter parties and contract humidity.
templates and some of these will be referred to in this briefing.
The shipper should consider this accordingly when advising of
Two such important contracts that relate to the container and their carriage requirements.
directly affect the care of the cargo are the Bill of Lading (B/L)
and the Terminal Handling Agreement (THA). It is also common for some operators to have their own liner
bills of lading for this trade.
Bills of lading & network liability clauses
Dependant on the B/L issued, the carrier’s liability extends from Terminal handling agreements
either inside the ship’s rail, or from point of collection from the The liner operator will usually have agreed terms and
shipper up to the point of delivery to the consignee. conditions with the load, discharge and any intermediate
container terminals. This may take the form of a Terminal
The liabilities can be summarised as follows: Handling Agreement.
Port to Port Under this agreement, the container terminals should ensure
Hague or Hague-Visby Rules should apply reefer containers are connected to an appropriate power
Carrier has no responsibility outside of the ship’s rail source and that they are checked and temperatures logged at
prescribed intervals.
Agreements should be reviewed by the Club to confirm that
Members are not prejudicing club cover by any terms
contained in the agreement.
The liner operator, or the agency acting on behalf of the
operator, must ensure that accurate information is given to the
terminal planners in order for them to properly care for the
cargo.
Container terminals can often arrange repairs and pre-trip
inspections (PTIs) upon request.

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04 Cargo / Refrigerated Containers

Refrigerated Containers (cont.)
Typical Contracts & Agreements b. Prevent damage to reefer cargo caused by the breakdown
or malfunction of the container and its machinery.
Shipowner / c. Raise awareness of the need to understand the nature of
Shipper / Consignor
Bareboat Charterer the cargoes being transported and ensure that carriage
instructions are suitable.
Bill of Lading
Bill of Lading (Door to Door): NYPE Time 2. Assist in defending a claim resulting from reported damage
(Port to Port): Charter Party
CONGENBILL
COMBICON -
Combined BOXTIME
to cargo.
CONLINEBILL MULTIDOC 95 -
Multimodal Caring for the Cargo

Liner Operator

Haulage
Terminal Agreements Agency
Slot / Consortium
  Agreements
Handling
CMR – Europe
Agreements
Agreements
RHA 91 – UK

Road &
Slot Slot Swap Consortium Container
Charterer Partner Partner Terminals
Rail Agencies Harvesting and Shipper’s Premises
Haulage
Living organic cargo can be vulnerable to damage at an early
stage due to plant diseases, disorders, pests and infestation, as
well as being influenced by the weather.
Bill of Lading
Mixing of harvests within the same packaging can lead to
Port to Port / Combined /
Multimodal accelerated ripening of one batch due to the close proximity of
an already maturing fruit. Ethylene sensitive and ethylene
producing cargoes when close together can lead to the onset
of premature ripening.
Shipper / Consignor
Each living organic cargo has different levels of ethylene
sensitivity and ethylene production. For example, bananas
have a moderate ethylene production rate and a high
sensitivity to ethylene. Oranges have a very low ethylene
Loss Prevention production rate and a moderate sensitivity. Such characteristics
The following includes some of the common issues identified determine the suitability of carrying different cargoes together
with the carriage and care of reefer containers, and or storing them in close proximity.
recommendations for carriers but which may also apply to
other parties involved in the cold chain, from shipper to
consignee.
It has already been identified that the main causal factors of
reefer container cargo damage are:
i. Prolonged periods of time off-power
ii. The technical malfunction of the refrigeration unit
The aim of these suggestions is to:
1. Ensure the cargo is properly cared for at all stages of the cold
chain.
In particular: Figure 8: Premature Ripening of bananas of mixed harvests

a. Prevent damage to reefer cargo caused by prolonged

periods of time off-power.

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Refrigerated Containers (cont.)
With consideration to the above, the shipper should exercise As with all other stages of the carriage, ensure the electrical
good stock management, segregation and control allocation of power supply to the container is connected in a timely manner
harvest/batch codes. and is reliable.
Many cargoes require rapid pre-cooling or freezing within a Overland Haulage
given time upon harvest and before shipment, although there
is a common practice of loading bananas at ambient
temperatures which may very well be over +25°C.
A good understanding of the cargo characteristics by all parties
concerned will be of great benefit – utilise free services such as
www.cargohandbook.com and www.tis-gdv.de

Empty Release & Stuffing

A common finding is the failure to provide a power supply

during the road and/or rail legs of the transit. This is even more
damaging when the reefer container has not been transferred
expeditiously.
Always use trusted and reliable hauliers. They must be aware of
the importance of maintaining a power supply to the reefer
container they are transporting.
It is of great importance that the reefer container is fully A good haulier will carry out checks on the unit accordingly and
operational and suitable for the intended cargo. This will require provide an important document trail.
it to be clean and free from taint.
Ports and Container Terminals
At time of empty release, pre-trip inspections should be carried
out and properly documented.
The temperature and CA set points and the ventilation setting
should be set correctly at time of empty release, unless
otherwise agreed.
The stowage of the cargo within the reefer container would
normally remain the responsibility of the shipper. They should
be aware of the importance of correct stowage of the cargo
when stuffing, ensuring the stow height does not restrict air
flow, and avoid short circuiting.
It is also the shipper’s responsibility to ensure the carriage
instructions are accurate and unambiguous. Ventilation The review of claims data suggested that there numerous
settings should be stated in flow rates (such as m³/h and occasions where the reefer container remained off-power for
cbm/h) and not percentages. This is particularly important as excessive periods of time whilst at the container terminal.
the displayed percentages on the vent arrangement do not Load, discharge and intermediate container terminals must
necessarily equate to the same corresponding actual flow rate ensure that a reliable power supply is connected in a timely
from one type of container to another. manner upon arrival at or transfer within the port.
All parties should be aware of the fact that reefer containers are The location of the container whilst at the port may have an
generally not designed to bring down the temperatures of influence. Positioning reefer containers away from direct
warm cargoes to the desired level, and only maintain sunlight, heat and sources of taint should be considered.
temperature within the unit. Therefore, (with the exception of
some fruit cargoes such as bananas), the shipper must Terminals should regularly monitor and record the
appreciate that the cargo must be pre-cooled to the required temperatures and status of the reefers under their care.
carriage temperature at point of stuffing. An accurate document trail which records the movements of

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Refrigerated Containers (cont.)
the reefer container is valuable in the event of a claim. be regularly reminded of the importance of accurate record
Equipment Interchange Receipts (EIR) should be maintained. keeping and how it is vital evidence in proving they properly
cared for the cargo whilst in their custody. Random cross
The carrier or container owner should have a working
checking and verification of log taking practices can prevent
relationship with an effective and trusted maintenance and
such occurrences, not to mention the often underused practice
repair service provider with a worldwide network who can
of praising those who carry out their roles in effective and
attend at terminals on the fleet’s trade routes.
trustworthy manner.
The service provider can also carry out pre-trip inspections
In the event of reefer container breakdowns, ships should have
(PTIs) and auto-diagnostic programs. This will supplement the
adequate spares onboard and the relevant skills to carry out
planned maintenance carried out as per the reefer
emergency repairs to the reefer onboard.
manufacturer’s guidelines and documented accordingly.
The ship should also give prompt notification of reefer
Sea Transit problems or malfunctions that cannot be repaired onboard.

De-Vanning of Container

As is the case with container terminals, it is essential that the

electrical power supply should be established in a timely
manner upon loading. The consequences of a premature As with all other stages of the carriage, the consignee should
disconnection of the power supply at the discharge port should ensure the electrical power supply is connected in a timely
also be recognised. manner and is reliable for the period prior to de-vanning.
Another important factor is the reliability of ship’s power The consignee should check for any irregularities at time of
supply. Ship’s generators should be capable of operation to full delivery as prompt action may prevent or mitigate any cargo
design capacity and standby generators available in case of a damage.
need for unplanned maintenance during passage.
Defending a Claim and Mitigation of Damage
Effective onboard fuel treatment practices should be carried
out to provide further levels of reliability and to prevent related In the event of a cargo damage claim, the strength of the
mechanical breakdowns. defence is aided by good accurate records and documentation.

The ship’s electrical distribution system and container supply The following documents and information are all helpful when
sockets should be in good working order and undamaged. investigating the cause of damage, and in particular when
attempting to deduce if it is pre-shipment or a failure to care for
Regular monitoring and recording of the temperatures of the the cargo in transit, and if the latter at what point of the cold
reefer containers under their care should be carried out and chain this occurred:
properly documented. In the event of a claim these can be Data downloads from the reefer container – checking also
compared against the reefer unit download data and shipper’s
that there has been no inappropriate alteration or
mobile temperature devices.
manipulation of the data
There have been instances where the values as recorded by If fitted (and increasingly rare), Partlow charts
the crew and entered onto the ship’s own log have not Temperature record logs from the terminal and any holding
correlated with the other recording devices. These were shown
areas
to be erroneous and suggested that the onboard record
Temperature record logs from the carrying vessel(s)
keeping has in some cases been inaccurate or falsified.
PTI documentation
It should be recognised that repetitive tasks such as
Service reports and records of any repairs carried out
temperature monitoring of reefer containers can introduce
complacency on the part of the crew. As such, the crew should EIR documentation and tracking data

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07 Cargo / Refrigerated Containers

Refrigerated Containers (cont.)
Shipper’s mobile temperature recording devices (Ryan Short Circuiting: The effect of the air flow choosing the path of
recorder or TempTale for example); noting their position least resistance and not passing though the cargo. If there are
within or on top of the stow large gaps or chimneys within the stow, then the air is more
Bills of lading and carriage instructions likely to pass through these and not penetrate the cargo. This
reduces the unit’s capability to maintain the cargo at the
In some cases, the prompt appointment of a surveyor can be desired temperature.
very beneficial, not least for their ability to provide
contemporaneous independently verified evidence. This is BIMCO: Baltic and International Maritime Council - A shipping
most pertinent when the nature of the stowage of cargo within association whose main objective is to facilitate the
the container may be causative to the damage or a commercial operations of its membership by means of
contributory factor and evidence of such is needed before developing standard contracts and clauses, and providing
de-vanning takes place. quality information, advice, and education.

If the affected cargo is of a living organic type, then the Disclaimer

attending surveyor should be looking to record grower’s/ The purpose of this publication is to provide a source of information which is
harvest codes in order to identify any trends which may additional to that available to the maritime industry from regulatory, advisory,
and consultative organisations. Whilst care is taken to ensure the accuracy
suggest damage was of pre-shipment origin.
of any information made available no warranty of accuracy is given and users
of that information are to be responsible for satisfying themselves that the
The surveyor can also be effective in mitigating cargo damage
information is relevant and suitable for the purposes to which it is applied.
as not all may be affected or in some cases the cargo may In no circumstances whatsoever shall North be liable to any person whatsoever
attract a salvage value. Separation, segregation and for any loss or damage whensoever or howsoever arising out of or in
connection with the supply (including negligent supply) or use of information.
repackaging are salvage options to be explored.
Unless the contrary is indicated, all articles are written with reference to
An invaluable source of reference for the carriage conditions English Law. However it should be noted that the content of this publication
and characteristics of each type of reefer cargo can be found on does not constitute legal advice and should not be construed as such.
Members should contact North for specific advice on particular matters.
the online database developed and maintained by BMT
Surveys of Rotterdam: Published July 2013.

www.cargohandbook.com
More in-depth information on fruit and vegetable cargoes can
be found in Dr Anna Snowdon’s A Colour Atlas of Post-harvest
Diseases and Disorders - Volumes I and II.

Glossary
Controlled Atmosphere: This is a method of controlling the
oxygen (O2), carbon dioxide (CO2) and nitrogen (N2)
concentrations of the atmosphere within the reefer container.
This is in addition to the standard temperature control. O2
levels are lowered by the admittance of N2 supplied from an
integrated nitrogen generator. CO2 levels are raised by either
the natural respiration of the cargo or by introduction from a
separate CO2 bottle. Fresh air is admitted on demand though
an air solenoid valve.
Climacteric: Produce fruit cargoes which continue to ripen after
harvesting are classed as being climacteric. Examples of such
are bananas and pears. Conversely, fruits that do not further
ripen after harvest are termed non-climacteric such as oranges
and grapes.
Ethylene: A hydrocarbon gas and natural hormone emitted by
plants. It is closely associated with the speed and control of the
ripening of fruits post-harvest.

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08 Cargo / Refrigerated Containers