The use of flexible tanks (or flexitanks) to transport liquid bulk cargoes has grown significantly in recent years mainly due to reduced transportation costs when compared with a tank container. But this method, if not correctly managed, is easily prone to damage and once a flexitank is ruptured a total cargo loss usually occurs. This impacts not only on the insurer, the cargo owner and carrier but there is a very real risk of third-party and possible environmental impact as well. To help raise awareness and to reduce the risks, we have recently published a comprehensive best practice guide. This is aimed at underwriters, brokers and their clients and contains practical guidance to ensure cargoes transported by flexitanks arrive intact at their chosen destination.

The paper outlines a range of potential risks including poor stowage, incorrect installation, overloading, material deficiencies, transport issues and others. It goes on to highlight the potential impact which might include additional costs incurred over and above the loss of the cargo and consequential damage such as ESG or third-party issues. Checklists covering selection, preparation, installation and loading are also included.

One of IUMI’s central roles is to gather and share knowledge amongst the international marine insurance community to enhance the safety and efficiency of seaborne trade. For this paper, we thank our Loss Prevention Committee and our Professional Partner Battermann & Tillery for compiling such a comprehensive document.

“Flexible Tanks for Liquid Bulk Cargo: Recommended Best Practice” together with the three annexes are available to download from https://iumi.com/opinions/position-papers