Carriage of Philippines nickel ore cargo leads to another tragedy in Marine Insurance P&I Club News 30/01/2026 The loss of the bulk carrier ‘Devon Bay’, and the tragic loss of life, serves as a further reminder of the significant risks associated with the carriage of nickel ore from the Philippines. The Incident ‘Devon Bay’ loaded a cargo of nickel ore at Gutalac Port, Zamboanga del Norte, Philippines, for carriage to Yangjiang, China. While on passage, the vessel reportedly capsized approximately 141 nautical miles west of Pangasinan, due to a suspected loss of stability. Initial media reports referred to the cargo being iron ore; however, it has since been confirmed that the cargo was nickel ore. Loading Location and Cargo Origin The cargo was loaded at Gutalac Port in the Southern part of the Philippines. It is understood that the port is connected to the Gutalac Nickel Project and the Zamboanga Nickel Corporation. Like many Philippine nickel laterite mines, this is an open‑cast operation where ore is extracted close to the surface and stored in uncovered stockpiles. These stockpiles are typically exposed to heavy rainfall and are often re‑handled multiple times before loading. As with many such ports in the Philippines, at Gutalac it is reported that stockpiles are located close to the shoreline and loaded onto barges, which then transport the cargo to vessels at anchor. The mine is relatively new and has only recently reopened following concerns in the past about environmental issues. Why Philippine Nickel Ore Is High Risk Philippine nickel laterite is a Group A cargo under the IMSBC Code. It is typically inhomogeneous, consisting of fine clay and silt particles mixed with coarse gravel, with low permeability and low shear strength. These characteristics mean the cargo has a strong tendency to retain moisture making crew supplementary testing difficult to analyse. A particular concern is that the moisture content is often very close to the Transportable Moisture Limit (TML), leaving little margin for error in any testing conducted. Limitations of Sampling and Testing Sampling and testing practices at many Philippine mines remains poor. Sampling is frequently carried out on static stockpiles, which is the least reliable method, as it introduces bias and does not ensure all particle sizes are equally represented. Best practice is to sample from a falling stream during stockpile construction. The flow table test (FTT) is the most commonly used method to determine the TML of Philippine nickel ore. However, this method is unsuitable for Philippine nickel ore cargo and may produce inaccurate results, as we outline in this earlier article: Let it flow! The limitations of the flow table test Certificates are often issued based on testing conducted by the mine’s in‑house laboratory, without independent verification, further increasing the potential for inaccurate or unreliable declarations. It is therefore recommended that Members seek expert geotechnical assistance during the loading of these cargoes. Shipboard Testing – A Note of Caution Masters and crews are encouraged to conduct can tests. However, for Philippine nickel ore, can tests have limitations which crew and attending surveyors must be aware of, and these tests can indicate an apparent low risk even when moisture content is high because of the previously mentioned high clay content. The can test should not be used to assess if a cargo is safe to load and is only a supplementary