Supramax vessel with nickel ore on board sinks near the Philippines.

A Supramax-class dry bulk vessel carrying nickel ore sank Friday morning near the Philippines, according to freight market sources.

The 2010-built 57,367 dwt MV Emerald Star was on the way to Lianyungang in North China from the Indonesian port of Buli with nickel ore on board when the incident happened.

According to S&P Global Platts ship and trade flow tracking software cFlow, the vessel had departed Buli on October 8 and was last observed in the Philippine Sea on October 12.

The vessel reportedly sank at around 0700 hours local time, according to a source tracking the matter.

Dubai-based Stellar Ocean Transport, which owns the vessel, could not be reached for comment.

So far, 12 crew members have been rescued, while 14 were still missing, according to the first source.

The MV Densa Cobra, a Capesize vessel, which is currently sailing close to area of incident, is helping in the rescue efforts, according to the source.

“The cargo on board was nickel ore and it is easily liquefied,” a shipbroker source said.

In liquefaction, soil-like material is transformed from a solid dry state to fluid state. Dry bulk cargoes such as iron ore fines, nickel ore and various mineral concentrates, are materials that may liquefy, according to ship registrar and classification society DNV GL.

Shipowners’ organization BIMCO had published a special circular in 2012 containing a clause suitable for use in charterparties which may involve the carriage of bulk cargoes, such as nickel ore and iron ore fines, that are at risk of liquefying when there is excess moisture levels.

According to the clause, “the [ship’s] Master is entitled to refuse to load cargo or sail if he considers, in his sole discretion using reasonable judgment, that there is a risk to the safety of the crew, vessel or cargo.”

If the cargo loaded is found to have a moisture content more than that of the Transportable Moisture Limit, the master can refuse to sail or stop the loading of the cargo, according to the BIMCO clause.