Dangerous Solid Cargoes in Bulk

A selection of articles previously Dangerous solid published by Gard AS cargoes in bulk DRI, nickel and iron ores

3 Contents

Carriage of dangerous cargo - Questions to ask before you say yes ...... 4 Understanding the different direct reduced iron products...... 7 Carriage of Direct Reduced Iron (DRI) by Sea - Changes to the IMO Code of Safe Practice for Solid Bulk Cargoes...... 8 The dangers of carrying Direct Reduced Iron (DRI)...... 11 Information required when offered a shipment of Iron fines that may contain DRI (C) ...... 12 Liquefaction of unprocessed mineral ores - Iron ore fines and nickel ore...... 14 Intercargo publishes guide for the safe loading of nickel ore...... 18 Shifting solid bulk cargoes...... 19 Cargo liquefaction - An update...... 22 Cargo liquefaction problems – sinter feed from Brazil...... 26 Liquefaction of cargoes of iron ore...... 27 India - Safe Shipment of Iron Ore Fines from Indian Ports...... 28 Indonesia and the Philippines – Safe Carriage of Nickel Ore Cargoes...... 30 Dangers of carrying Nickel Ore from Indonesia and the Philippines – Mandatory Notification Requirements...... 33 The carriage of nickel ore from the Philippines and Indonesia - The insurance position...... 34 New BIMCO Charterparty clause for solid bulk cargoes that may liquefy...... 35 IMSBC Code amendments regarding cargoes that may liquefy...... 36

Disclaimer

The information contained in this publication is compiled from material previously published by Gard AS and is provided for general information purposes only. Whilst we have taken every care to ensure the accuracy and quality of the information provided at the time of original publication, Gard AS can accept no responsibility in respect of any loss or damage of any kind whatsoever which may arise from reliance on information contained in this publication regardless of whether such information originates from Gard AS, its shareholders, correspondents or other contributors.

Gard News 197, Carriage of dangerous February/April 2010 cargo - Questions to ask before you say yes

The shipment of dangerous cargo is any time charter, particularly a long can be obtained from experts. With now commonplace in many trades. This one, shipowners should think carefully reference to the IMSBC Code, it should article is aimed at those operating in about which dangerous cargoes they be noted that a number of specific trades where the carriage of dangerous wish to exclude. Standard form time cargoes may be grouped together cargo is not an ordinary occurrence. charterparties usually contain a cargo under a general entry, e.g., mineral exclusion clause, but not all require the concentrates and metal sulphide Whilst cargoes can be legally shipowners’ prior written consent. It is concentrates. dangerous as well as physically up to the owner to name cargoes he dangerous, this article is written in the wishes to exclude from carriage and What are the dangers/hazards context of the latter. Unfortunately, it is worth doing some research (and posed by the cargo? there has been a number of cases in maybe obtaining expert advice) before Once the cargo has been correctly which crews and their ships have been doing so. It may be easier to expressly identified, the carrier should seek to lost because of dangerous cargoes state which cargoes are allowed under fully understand the dangers posed by (e.g., due to liquefaction) or have the charterparty, to the exclusion of all that cargo to the ship and crew. Beyond suffered harm from fires/explosions others without prior written consent. what is provided in relevant codes/ caused by dangerous cargoes.1 Regulations may require certain fire- regulations, research can be undertaken The sad truth is that there are some fighting arrangements or ships of with relevant industry bodies, the P&I ship operators who probably do not special construction/strengthening Club,3 flag state4 and port state. It is know they are carrying a dangerous for the carriage of dangerous cargoes important to be aware that codes such cargo because shippers misdeclare and for a document of compliance to as the IMDG Code and IMSBC Code them, in some cases deliberately. The be issued before dangerous cargoes may not be completely comprehensive. commentary below summarises some can be carried. Also, there may be For example, some ores, fines and of the main questions to be asked limitations on the quantity of dangerous concentrates that may liquefy may not before agreeing to carry dangerous cargo that the ship can carry, e.g., be identified as cargoes possessing that cargoes, perhaps starting with the most for structural/stability reasons and/or hazard in the IMSBC Code. If necessary, important question: who is shipping? because of restrictions under the IMDG expert advice can be sought. The cargo It is in the industry’s interest, and Code. On smaller ships, the simple may be dangerous by its very nature particularly the ships’ crews’, to avoid ability to safely segregate certain goods (for instance, it poses chemical hazards), doing business with so-called “rogue may be an issue. but others may only become dangerous shippers”. in certain circumstances. The carrier What are you asked to carry? should have a basic understanding of Who is shipping? It is all too common for dangerous how and why the cargo can become If the request to ship dangerous cargo goods to be misdeclared. It also dangerous - it may depend on the rate (or cargo which, given its description, happens that they get incorrectly at which it is loaded, its mass/density may be dangerous but not declared as or incompletely named. Different within a given cargo space, its moisture such) is made by a party with whom the companies, countries and trades may content, temperature or contact carrier has had no previous dealings also use different names for specific with certain solids/liquids/gases. It is or experience, investigations ought dangerous cargoes.2 It is important worth remembering that seemingly to be undertaken as to that party’s to establish the exact cargo you are safe cargoes can create dangerous experience in shipping such cargo, dealing with by obtaining details on situations; for example wood can cause and whether they have previously its physical and chemical properties, oxygen depletion with the obvious risk been connected with any accidents its hazards and origin. It is then a case that poses to those that may seek to or rogue shipments. Of course, rogue of referring to the relevant codes/ enter the cargo space. shippers can be expected to change regulations, such as SOLAS, BC names, so be aware of newly-formed Code and IMDG Code, to establish What does the ship/crew need to companies. If the request or order is the relevant carriage guidance. It is safely carry dangerous cargo? from time charterers, it is still important important to note, however, that the The ship may need to be of a certain to indentify and research the underlying cargo lists in the IMDG and IMSBC construction or strengthening for the shipper. In summary: is the party asking Codes are not exhaustive, which is carriage of dangerous cargo. It may to ship/shipping dangerous cargo why details from shippers on cargo also need special equipment, such reliable and trustworthy? properties and hazards are important. as fire-fighting apparatus, a nitrogen Care should be taken to refer to any generator for inerting, temperature What can you refuse to carry? amendments to the relevant codes/ monitoring, gas detection devices, Under a time charterparty, the charterer regulations and/or their very latest protective clothing for the crew. The has relative freedom to employ the version (only recently has a new BC crew will need to be provided with the ship on lawful trades and to load Code been introduced - now named relevant codes/regulations containing lawful cargoes, but shipowners can the IMSBC Code). Guidance can be guidance material on safe carriage and exclude their right to load certain sought from the P&I Club or other on responding to accidents involving cargoes. Therefore, before entering industry bodies and if necessary advice dangerous cargo (e.g., the Medical

© Gard AS, January 2014 5 First Aid Guide for Use in Accidents What does your contract say? and which should fall on the shippers/ Involving Dangerous Goods). Of course, Cargo exclusions in time charterparties charterers. In a recent case6 the and most importantly, the crew will have already been mentioned, but what English courts decided that a carrier’s need to know exactly what dangerous else does the charterparty say about right of indemnity against a shipper cargo they are carrying (and, indeed, the carriage of dangerous cargo? Is the was not limited to a situation where the answers to many of the questions master entitled to refuse to load, or, if the dangerous nature was the sole or posed in this article - and more). already loaded, to unload and dispose dominant cause of the loss, but where of dangerous cargo that is unsafe for in any event the damage would not What should the shippers provide? carriage at charterers’ time, risk and have occurred except for the peculiar The shippers should provide the exact expense? If the contract incorporates characteristics of the actual cargo cargo that the carrier has agreed to or will be compulsorily subject to the shipped.7 The position under English carry. The cargo actually presented Hague/Hague-Visby/Hamburg Rules, law can be contrasted with that under for shipment may well differ from that it should be noted that all these Rules US law, which appears to be more first declared/notified and the carrier contain provisions with regard to onerous for the shipowner.8 should check this before any cargo is dangerous cargoes. For example, the loaded. Obviously, this will be difficult Hague-Visby Rules provide (in Article IV If the Hague/Hague-Visby Rules apply, with packaged/containerised cargo, Rule 6): a claim by the carrier against the but at least external labels should “Goods of an inflammable, explosive shipper under Article IV Rule 6 would, be checked. Documentation should or dangerous nature to the shipment under English law, be defeated if the also match the cargo presented for whereof the carrier, master or agent carrier breached his duty to exercise shipment and that which the carrier of the carrier has not consented due diligence to make ship seaworthy has agreed to carry. Full and proper with knowledge of their nature and and that was a contributing cause of documentation is a key aspect in the character, may at any time before damage resulting from shipment of carriage of dangerous cargo and, again, discharge be landed at any place, or dangerous cargo. This is very relevant, no cargo should be loaded in absence destroyed or rendered innocuous by as shown in the case of the EURASIAN of this. Unfortunately, there have been the carrier without compensation and DREAM.9 In that case the English courts many instances in which shippers have the shipper of such goods shall be decided that a pure car carrier was simply failed to provide the required liable for all damages and expenses rendered unseaworthy as a result of the documentation.5 directly or indirectly arising out of operators’ failure to provide the vessel or resulting from such shipment. If with specific documentation dealing Documentary requirements are set any such goods shipped with such with the peculiar danger of fire on car out in the relevant regulations/codes knowledge and consent shall become carriers and the precautions to be taken and, essentially, form the basis of the a danger to the ship or cargo, they may to avoid such fires. information on the dangerous cargo in like manner be landed at any place, which the carrier needs as evidence that or destroyed or rendered innocuous by The stowage of dangerous goods is the goods/cargo is safe for carriage, the carrier without liability on the part of often an important factor in their safe to alert the carrier and his crew to the the carrier except to general average, carriage and it is worth considering relevant hazards, and to guide the if any.” who would be responsible for stowage carrier/his crew on safe carriage and under the contract. In a recent English how to react in the case of emergency. Can test for moisture content. court case (involving the negligent The information should be provided The applicable law and jurisdiction stowage of dangerous cargo next to sufficiently in advance to enable under the contract are also worth a ship’s bunker tanks),10 it was found precautions to be put into effect by the considering. Will these result in ready that where a charterparty allocated carrier. The shipper’s documentation access to justice in the event of a responsibility for the stowage to the should include analysis certificates dispute or casualty involving dangerous charterers, the shipowners had no for key safety parameters, such as the cargo? It should be kept in mind that responsibility to the charterers for moisture content, flow moisture point the law covering liability for loss/ damages consequent on improper and transportable moisture limit for damage arising out of the shipment of stowage, even if it rendered the a bulk cargo that may liquefy. The dangerous goods varies from country vessel unseaworthy. The outcome of shipper should provide the relevant to country. Under English common the case would almost certainly have declarations that the information law charterers/shippers would risk been different had the words “and provided is accurate. The information being in breach of an implied and responsibility” been added to clause provided should be truly representative absolute undertaking if they were to 8 of New York Produce Exchange form of the cargo actually loaded. Key safety load cargo without notice of its peculiar charter. parameters stated in generic material characteristics which endanger the ship, safety data sheets may not be specific unless the owners or their crew knew It should not be forgotten that, to the cargo to be loaded and should or ought reasonably to have known of when negotiating contract terms, be treated with caution in the absence them. In the context of cargo which the shipowner has an opportunity to of analysis certificates that are specific is known to be dangerous, English stipulate what the shippers/charterers to the cargo to be loaded. Sadly, there case law suggests that owners should are obliged to provide in advance of have been instances in which shippers’ be regarded as having contracted to loading dangerous cargo and what the certificates have been found not to bear risks which can be avoided by carrier is entitled to do if the shipper/ be truly representative of the cargo’s appropriate methods of carriage for charterer does not comply. This can key safety parameters, which is why it the goods of the relevant type (the be particularly relevant if the place of is extremely important for the carrier owners being expected to keep up to loading has a history of problem or not to place full reliance on them. If date with the correct carriage methods rogue shipments. Consideration can the carrier is in any doubt, he should but not to have the knowledge of also be given to making contractual consider arranging his own tests (see an expert chemist), but not the risks provision for full co-operation from below). In addition to documentation, produced by a particular cargo, which cargo interests, full access to the dangerous cargo in a packaged form are of a totally different kind (whether in cargo ashore for possible inspection/ should be properly packaged and nature or degree) from those attached sampling and for analysis at specific labelled by the shipper. to the carriage of the described cargo, laboratories which can be relied upon

© Gard AS, January 2014 6 to give accurate results (preferably Where/when is the carriage to/ Why should you take the risk? being at owner’s option to invoke such from? After reading this article you may ask provisions, whilst not relieving charterers Another important consideration yourself: “why should I take the risk of and cargo interests of the primary when asked to carry dangerous cargo carrying dangerous cargo”? No doubt obligation to provide full and accurate is the place/country of shipment. the vast majority of dangerous cargo documentation). Such provisions would Sadly, a number of countries have a is carried successfully and without need to be carefully considered on a poor reputation for the shipment of problem. On the occasions when case by case basis as the ultimate effect dangerous cargoes, probably due problems do occur, the consequences could be to make it more difficult for to a lack of internal controls and/ can be severe. A cautious approach is an owner to refuse to carry a cargo in or sanctions on shippers. P&I Club always to be recommended. As always, respect of which doubts still remain. circulars and articles can be referred prevention is better than cure. to for guidance in this regard. The What is your insurance cover? nature of the voyage and the ship’s Footnotes It is important to be aware that the remoteness from assistance should 1 See article “Liquefaction of carriage of dangerous cargo can, also be considered. A long voyage unprocessed mineral ores - Iron ore in certain circumstances, prejudice through predictably heavy weather may, fines and nickel ore” elsewhere in this the carrier’s insurance cover. There for example, raise additional concern. issue of Gard News. may be a warranty in the insurance Having considered these factors, 2 See for example the article contract that no dangerous cargoes decisions can be taken on how best to “Understanding the different direct will be carried, or that they will only safeguard the crew and the ship. reduced iron products” in Gard News be carried in accordance with relevant issue No. 178. regulations. In the absence of any How to manage the peculiar risks? 3 See Gard’s for example Loss warranty, a general duty of disclosure If the decision is that the ship can carry Prevention Circular No. 07-03, “The applies at the inception of an insurance dangerous cargo, it is worth spending dangers of carrying Direct Reduced Iron contract (see for example Rule 6 of time considering how the risks peculiar (DRI)”. Gard’s Rules for P&I cover). If a vessel’s to the dangerous cargo in question can 4 See for example the UK MCA Marine trade in dangerous cargo is not made be best managed and minimised. The Guidance Note MGN 107 (M) in known to the insurer and the insurer most important phase is pre-carriage reference to The Merchant Shipping could not be reasonably expected to and, as already mentioned, the carrier (Carriage of Cargoes) Regulations 1999. know of such trade, insurance cover should put in place his own checks to 5 See the article “Shipowners stand could be prejudiced. Similarly, a radical ensure that the cargo presented for firm against lack of proper BC Code change in the trade of the ship from shipment is safe for carriage.11 Finding documentation” in Gard News issue one which has, for example, involved out how and where a dangerous bulk No.193. the carriage of steel to one involving cargo susceptible to liquefaction has 6 CSAV v. Sinochem Tianjin Import the carriage of dangerous cargo in been stored and for how long is useful and Export Corp. (The ACONCAGUA) bulk could well be deemed to be an to know when moisture content of [2009] EWHC 1880 (Comm). alteration of the risk requiring disclosure the cargo is the key safety parameter. 7 See article “Has justice finally been to the insurer. Rule 7 of Gard’s Rules Performing the carrier’s own tests on done in the calcium hypochlorite for P&I cover (Alteration of Risk) sets the cargo can be as simple as the cases?” in Gard News issue No. 196. out the consequences of an alteration crew performing a “can test”12 but 8 See article “The DG HARMONY on of risk not disclosed to the Club: one if in any doubt proper representative appeal” in Gard News issue No. 191. being that the member has no cover for sampling and reliable analysis will 9 See article “An insight into the liability, loss, cost or expense caused or need to be considered. It goes without interpretation and implementation of increased by the alteration of the risk. saying that the crew will need to be the ISM Code” in Gard News issue No. properly briefed before loading, and 169. Gard’s P&I Rule 74 (Unlawful Trades etc.) all crew members should be aware of 10 CSAV v. MS ER Hamburg provides that: the location and dangers of the cargo. Schiffahrtsgesellschaft mbH & Co KG “The Association shall not cover It may be necessary to display signs (The ER HAMBURG) [2006] EWHC 483 liabilities, losses, costs or expenses prohibiting entry into spaces containing (Comm). arising out of or consequent upon the dangerous cargo and/or properly notify 11 See for example Loss Prevention Ship carrying contraband, blockade third parties involved in the carriage, Circular No. 15-08 “Loading of hot coal running or being employed in or on an such as stevedores and terminal at Maputo, Mozambique”. unlawful, unsafe or unduly hazardous personnel, about the dangerous cargo. 12 See the article “Shipowners stand trade or voyage”. firm against lack of proper BC Code Perhaps most importantly, the crew will documentation” in Gard News issue The words “unsafe or unduly hazardous need to know the warning signs that No.193. trade or voyage” may be of particular something is going wrong with the 13 See for example the article “P&I relevance in the context of carriage of cargo and how they should respond. incident - dangerous goods container dangerous cargo, and some guidance If an accident does occur, it will have overboard” in Gard News issue No. may be derived from the legal principles been prudent to have drilled the 179. which govern contracts of carriage. crew in the emergency procedures as 14 See for example the article “Facing Other Club Rules, such as Rule 8 the speed and thoroughness of the the challenge of fire at sea” in Gard (Classification and Certification of response can often make the difference. News issue No. 175. the Ship), requiring compliance with The lessons learnt from previous statutory requirements of the ship’s flag incidents are extremely valuable: they state, and Rule 73 (Nuclear Perils), which demonstrate the importance of proper sets out certain exclusions with regard risk assessment13 and quick access to to the carriage of nuclear material, may accurate information and expert advice/ also be relevant. assistance.14

Gard News 178, Understanding the May/July 2005 different direct reduced iron products

The term direct reduced iron, or DRI, emit hydrogen gas. Thus it must be original source of the material used has a generic meaning which covers a carried under inert conditions. Nitrogen to manufacture CBI is obviously of number of products with a variety of gas is normally used and is applied significance – if this can not be verified properties and hazards. to the holds by way of a temporary then the CBI should be treated in a manifold fitted to the tank top prior similar manner to DRI, BC 015. There has been a disturbing increase in to loading. Thermocouples must also the number of potential life threatening be positioned in the cargo on the tank DRI fines incidents involving the carriage of top and elsewhere throughout the These are the by-product of the DRI direct reduced iron (DRI). Gard Loss stow at different heights to monitor manufacturing process, pellets or Prevention Circular No. 07/2003 the temperature. Gas monitoring of briquettes, and are often 4mm in provided general advice on the carriage the holds, normally for hydrogen and diameter or less. Although smaller of this product.1 Since this circular oxygen, must also be undertaken than normal DRI pellets, this product is was issued Gard has received several throughout the voyage. The product essentially DRI pellets and will behave enquiries from members and clients must be kept dry at all times prior in a similar manner, so it should be asking about the carriage of this cargo to and during carriage. The product treated with the same caution: it should and the actions to be taken to prevent should be treated as DRI, BC 015. be kept dry at all times, the holds any problems occurring during the should be inerted and temperature and voyage. HBI – Hot briquetted iron gas monitoring should be carried out. This material is manufactured from One added potential hazard with this Disturbingly, some enquiries relate DRI product, which is compressed at product is that it may not have been to types of DRI which charterers and temperatures exceeding 650° C to stored under ideal dry conditions at shippers do not consider as dangerous form briquettes between about 90 and the plant, as should be the case with or restricted in any way. The terms 130mm long, 80 to 100mm wide and 20 normal DRI, and therefore there may used include “HBI”, “hot briquette”, to 50mm thick. This product is a much be wet pockets of DRI fines within the “fines”, “remet” and “metallic fines”. safer form of DRI than DRI pellets. It cargo, which can subsequently cause These terms may well be an accurate is far more resistant to overheating if problems during the voyage. Therefore, description of the specific product but it becomes wet. During a voyage it it should be treated as DRI, BC 015 and they are often used to avoid limitations can still generate small amounts of the storage history should be obtained. agreed in charterparties for the carriage hydrogen. Inerting is not required by of dangerous cargoes. the BC Code but adequate surface HBI fines ventilation is required. It should be This is a term used by shippers to It is important to note that the term DRI, treated as HBI BC 016, provided there describe ordinary DRI fines possibly in generally used in charterparties, has a is no additional qualification to the HBI an attempt to achieve a reduction in the generic meaning, covering a number (see below). carriage requirements as afforded to of products with a variety of properties real HBI. The fines can be either simple and hazards. It also covers a technical CBI – Cold briquetted iron DRI fines which have been completely description of a specific type of refined CBI is manufactured from the various misdescribed by the shipper, or fines iron ore. residual products produced during produced during production of HBI. the manufacture of associated ferrous If the fines have been produced after These products must be grouped under products and semi-refined raw materials the HBI briquetting process then it is the genus of direct reduced iron (DRI including DRI (DRI fines but also other possible that they may be in a relatively BC 015 or HBI BC 016) for the purposes residuals). Some manufacturers cold safe form and could be treated in of the IMO Code of Safe Practice for briquette their own DRI pellets so that a similar manner to HBI briquettes. Solid Bulk Cargoes (BC Code). This they can be fed into their particular However, if the fines have been article is intended to help masters furnace. CBI briquettes are produced produced prior to the HBI briquetting and owners understand what may or at temperatures below 650°C and process, they may potentially be similar may not be offered to them and what a binder is often used. Because the to a DRI pellet product. If the history of precautions should be taken. briquetting operation is carried out at the fines is not known then they should a temperature lower than is used for be considered as DRI fines and treated DRI – Direct reduced iron HBI, some of the critical characteristics in the same manner as DRI, BC 015. Normally in the form of sponge pellets of DRI, such as porosity, relatively large or lumps varying between 6 and 25mm surface area and a reactive surface, Remet fines nominal diameter, but often 8 to 12mm remain in the CBI to some degree. Thus This is another term used by shippers diameter. The IMO BC Code classes essentially CBI can have the same or to describe DRI fines. They are not “re- this product as “a material that is very similar properties to DRI pellets melted” fines, as the name could – and hazardous only when in bulk” (MHB). and should be treated in exactly the may be intended to – suggest, for the It can be found under the BC Code same manner, as the propensity to obvious reason that if the product had as BC015. If this product becomes overheat and generate hydrogen, been produced by a (re)melting process wet it can significantly overheat and if it becomes wet, still remains. The (which DRI is not) then it would not be

© Gard AS, January 2014 8 in the form of fines. If a ship is offered a VI and VII and of the IBC Code that manufacture, and without that evidence cargo of this description there is a very the master must be provided with all the ship is entitled to insist on applying high chance of the product being DRI relevant documentation related to the the more stringent requirements of BC fines and it should therefore be treated carriage of the intended cargo. Owners Code 015 to the loading and carriage. as DRI, BC 015. should be wary of any bulk cargo offered for shipment under trade names If the vessel has any doubts about Remet fines (HBI) or abbreviated names and always insist any particular DRI loading it is As with ‘remet fines’, remet fines (HBI) on a full product description, including recommended that independent advice should be treated as DRI, BC 015. technical and alternative names. Future be obtained from an expert. Gard is versions of the BC Code are likely to happy to assist in this regard, and in any Metallic HBI Fines maintain the current two categories of other way it can. As with ‘HBI fines’, metallic HBI fines DRI but differentiate between the two should be treated as DRI, BC 015. types by referring to them as DRI “A” This article was produced with the kind or “B”. assistance of Dave Hughes, Consultant Other names Metallurgist, Taylor Marine TR Little. Shippers have used other qualifications In summary, if any iron bulk cargo is for DRI fines which exclude the offered as “fines” and is described with Footnote abbreviation “DRI”, such as “Orinoco terminology such as “HBI”, “remet”, 1 See also the article “The dangers of iron remet fines” and “Orinoco remet or any other wording not found in the carrying direct reduced iron (DRI)” in fines in bulk”. These should all be relevant section of the BC Code, it Gard News issue No. 173. treated as DRI, BC 015. should be treated as a DRI product as detailed in the BC Code No. 015. The Conclusion onus is on the shipper to show that It is a requirement of SOLAS Chapters the fines have not originated from DRI

Member Circular Carriage of Direct Reduced No. 3/2010, 16 March 2010 Iron (DRI) by Sea - Changes to the IMO Code of Safe Practice for Solid Bulk Cargoes

Members will be aware of the general Following the above mentioned DRI (A), Briquettes, hot-moulded concerns that exist with regard to the incidents and their subsequent • a maximum limit on the moisture carriage of Direct Reduced Iron (DRI) investigation, the IMO Sub-Committee content of 1 per cent. by sea. These concerns have increased on Dangerous Goods, Solid Cargoes • cargo is to comprise essentially significantly since the loss of life arising and Containers (DSC) considered whole briquettes. Fines of less than from the carriage of DRI on board amendments to the relevant Schedules 6.35mm and dust are limited to 5 the YTHAN (2004) and the deliberate of the Code as part of a review of the per cent. sinking by the French Authorities of the Code. The Marshall Islands, Intercargo • concentration of hydrogen to ADAMANDAS (2003) with her cargo and the IG proposed that DRI Fines be measured throughout the and bunkers on board. should be individually classified and voyage. If it exceeds 25 per cent designated DRI (C) and both DRI (B) LEL appropriate precautions to be The explosion and accompanying and (C) should be carried under an taken. tragic loss of life on the Ythan resulted inert (nitrogen) atmosphere with a • surface ventilation only shall be from the interaction between the maximum allowable moisture content conducted as necessary. When vessel’s cargo of “HBI Fines” and the of 0.3 per cent in respect of DRI (C). mechanical ventilation is used, the fresh water (moisture) contained in the It was recommended by the DSC at fans shall be certified as explosion- cargo at the time of loading. At the its 12th session held in September proof and shall prevent spark time of the incident the IMO Code 2008 that these (and other minor) generation. of Safe Practice for Solid Bulk Cargo amendments be adopted by the IMO • wire mesh guards shall be fitted (the Code) categorised two types of through the IMO Maritime Safety over inlet and outlet ventilation DRI, namely hot moulded briquettes Committee (MSC). The MSC adopted openings. or hot briquetted iron (subsequently the recommendations in November re-designated as DRI (A)), and pellets, 2008 and the Code was renamed the DRI (B), Lumps, pellets, cold- lumps etc. (subsequently re-designated International Maritime Solid Bulk Cargo moulded briquettes as DRI (B)). The DRI/HBI fines cargo Code (IMSBC Code). • average particle size is limited to could not in reality be categorised as 6.35mm to 25mm. Fines of less than either (A) or (B) under the Code and the The main changes to the Code in 6.35mm and dust are limited to 5 expert advice was to treat it as the more relation to the carriage of DRI (A), (B) per cent. dangerous and reactive type of DRI (B). and (C) can be summarised as follows: • loading conveyors are to be dry.

© Gard AS, January 2014 9 • prior to loading, an ultrasonic test to top up the cargo spaces with Attached for assistance is a more or another equivalent method additional supplies of inert gas detailed summary of the carriage with a suitable instrument shall having regard to the duration of the requirements for DRI under the IMSBC be conducted to ensure weather voyage. Code but it should be noted that it tightness of the hatch covers and • the ship shall not sail until the is necessary to comply with all of the closing arrangements. master and a competent person are relevant provisions of the Code. • moisture content must be less than satisfied that: 0.3 per cent and must be monitored - all loaded cargo spaces are In light of the above, members, when during loading. correctly sealed and inerted, carrying DRI (B) or (C), should satisfy • any cargo that has already been - the cargo temperatures have themselves that the nominated vessel loaded into a cargo space and stabilised at all measuring is capable of maintaining oxygen levels which subsequently becomes points and are less than 65°C, at a concentration of below 5 per cent wetted, or in which reactions have and throughout the voyage. started, shall be discharged without - concentration of hydrogen in delay. the free space has stabilised The Code will remain recommendatory • carriage is only permitted under an and is less than 0.2 per cent by until January 2011 at which point it will inert gas blanket. volume. become mandatory. • the ship shall be provided with • Oxygen concentration shall be the means of reliably measuring maintained at less than 5 per cent If Members have any questions or the temperature at several points throughout duration of voyage. concerns relating to the carriage of DRI within the stow, and determining they should contact their Club. the concentrations of hydrogen DRI (C), By-products, Fines and oxygen in the cargo space • average particle size is less than All Clubs in the International Group atmosphere on voyage whilst 6.35mm, and there are to be no have issued a similar circular. minimizing the loss of the inert particles greater than 12mm in size. atmosphere. • the reactivity of this cargo is Any questions with regard to the above • the ship shall be provided with extremely difficult to assess due may be addressed to Nick Platt or the means to ensure that the to the nature of the material that Adrian Hodgson in Gard (UK) Limited requirement to maintain the oxygen can be included in the category. (+44 20 7444 7200) or Geir Kjebekk in concentration below 5 per cent A worst-case scenario should Gard Arendal (+47 37 01 92 52). can be achieved throughout the therefore be assumed at all times.

voyage. The ship’s fixed CO2 fire- • carriage requirements are largely Yours faithfully fighting system shall not be used identical to those for DRI (B), Gard AS for this purpose. Consideration including the 0.3 per cent limit on should therefore be given to moisture and carriage under an Claes Isacson providing vessels with the means inert gas blanket. Chief Executive Officer

All Types of DRI and non-working hatches shall be which be depleted of oxygen • Fines are now defined as particles kept closed. and/or contain a flammable up to 6.35mm (¼”) in size. • The cargo shall not be accepted atmosphere. • Cargo spaces shall be clean, dry when its temperature is in excess • The ship shall be provided with a and free from salt and residues of 65oC, or its moisture content detector suitable for measuring of previous cargoes. Wooden exceeds the permitted value, or if hydrogen in an oxygen depleted fixtures and combustible materials the quantity of fines exceeds the atmosphere and for use in a shall be removed. permitted value, where appropriate. flammable atmosphere. • The carrier’s representative • The cargo temperatures shall be • Cargo temperatures and is to have reasonable access monitored during loading and hydrogen concentrations in hold to stockpiles and loading recorded in a log. atmospheres shall be measured installations for inspection. • The cargo shall be trimmed in at regular intervals during the • Prior to loading, the shipper accordance with the relevant voyage. shall provide the Master with a provisions of the Code. • If the hydrogen concentration certificate issued by a competent • Adjacent tanks other than double exceeds 1 per cent or the cargo person stating the cargo is bottom tanks shall be kept empty temperature exceeds 65oC, suitable for shipment and that it during the voyage. appropriate safety precautions conforms with the requirements • Weather tightness shall be shall be taken. If in doubt, expert of the Code in terms of particle maintained throughout the voyage. advice shall be sought. size, moisture content and • The bilge wells shall be clean and • Bilge wells shall be checked temperature. dry and protected from ingress of regularly for the presence of • A similar certificate shall be cargo. water. provided after loading relating to • Precautions shall be taken to • All records of temperature, the whole consignment. protect personnel, equipment etc. hydrogen and oxygen • The shipper shall provide from the dust of the cargo. measurements, where comprehensive information on • During handling of the cargo, appropriate, are to be retained on the cargo and safety procedures “NO SMOKING” signs shall be board for 2 years. to be followed in the event of an posted and no naked lights or other • The hydrogen concentration shall emergency. ignition sources permitted. be measured in the holds prior to • No cargo shall be loaded or • Suitable precautions shall be taken opening the hatch covers. transferred during precipitation before entering cargo spaces,

DRI (A), Briquettes, hot-moulded • The moisture content shall be less than 1 per cent. • The cargo shall comprise essentially whole briquettes and the addition of fines shall be prohibited. • Fines shall comprise no more than 5 per cent by weight. • Weather deck closures and hatch covers shall be inspected and tested to ensure integrity and weather tightness. • Surface ventilation only shall be conducted as necessary and air shall not be directed into the body of the cargo. When mechanical ventilation is used, the fans shall be certified as explosion-proof and shall prevent spark generation. Wire mesh guards shall be fitted over inlet and outlet ventilation openings, and the escaping gases shall be unable to enter living quarters. • During discharge, the application of a fine spray of fresh water is permitted only when the cargo is to be stored in an open area.

DRI (B), Lumps, pellets, cold-moulded briquettes • The average particle size shall be from 6.35mm to 25mm, with fines no more than 5 per cent by weight. • The shippers’ certificate shall state the date of manufacture for each lot of cargo. • The certificate issued after loading shall confirm that the moisture content has not exceeded the permitted value. • The cargo shall be certified as having been aged for at least 3 days, or treated so as to achieve the same reduction in activity. • The cargo shall be kept dry at all times. Any cargo that has been wetted, or known to have been wetted, shall not be loaded. • Loading conveyors shall be dry. • Prior to loading, an ultrasonic test or another equivalent method with a suitable instrument shall be conducted to ensure weather tightness of the hatch covers and closing arrangements. • The moisture content shall less than 0.3 per cent by weight and shall be monitored during loading. • Any cargo that has already been loaded into a cargo space and which subsequently becomes wetted, or in which reactions have started, shall be discharged without delay. • The breakage of briquettes and lumps shall be minimised and the addition of fines shall be prohibited. • Carriage is only permitted under an inert gas blanket. • Prior to loading, provision shall be made to introduce a dry inert gas at tank top level. Nitrogen is preferred. All vents and openings shall be sealed to prevent the loss of the inert atmosphere. • On completion of loading of a cargo space it shall be immediately closed and sufficient inert gas introduced to achieve an oxygen concentration of less than 5 per cent throughout the cargo space. • The ship shall be provided with the means of reliably measuring the temperatures at several points within the stow, and determining the concentrations of hydrogen and oxygen in the cargo space atmosphere on voyage whilst minimizing the loss of the inert atmosphere. • The oxygen concentration shall be maintained at less than 5 per cent throughout duration of voyage. The ship shall be provided with the means to ensure that this requirement can be achieved throughout the voyage.

Consideration shall be given to topping up with additional supplies of inert gas: the ship’s fixed CO2 fire-fighting system shall not be used for this purpose. • The ship shall not sail until the master and a competent person recognised by the national administration of the port of loading are satisfied that: - All loaded cargo spaces are correctly sealed and inerted; - The cargo temperatures have stabilised at all measuring points and are less than 65oC; and - The concentration of hydrogen in the free space has stabilised and is less than 0.2 per cent by volume (i.e. 5 per cent LEL). • The cargo spaces shall remain tightly sealed and the inert condition maintained throughout the voyage. • The ship shall be provided with a detector suitable for measuring oxygen in a flammable atmosphere. • Oxygen concentrations shall be measured at regular intervals during the voyage. • During precipitation, all cargo discharge operations shall be suspended and holds containing cargo shall be closed.

DRI (C), By products, Fines • The average particle size shall be less than 6.35mm, and there shall be no particles greater than 12mm in size. • ”The reactivity of this cargo is extremely difficult to assess due to the nature of the material that can be included in the category. A worst-case scenario should therefore be assumed at all times.” • The cargo shall be kept within the permissible moisture content at all times. • The carriage requirements are identical to those for DRI (B), including the 0.3 per cent limit on moisture, with the following exceptions: - The shippers’ certificate does not need to state the date of manufacture of each lot of cargo; - The cargo shall be certified as having been aged for 30 days. - Any cargo that has already been loaded and which subsequently is exposed to additional fresh water or seawater over its natural moisture content and becomes wetted, or in which reactions have started and its temperature has exceeded 120oC, shall be discharged without delay.

Loss Prevention Circular The dangers of carrying No. 07-03 Direct Reduced Iron (DRI)

Since the International Group of P&I the briquettes are allowed to form an during loading should be monitored. Clubs’ Circular on Direct Reduced Iron iron oxide coating. These processes If the cargo temperature is above published in 1982, the dangers of DRI are intended to reduce or inhibit the ambient temperature, advice have somewhat disappeared from the oxidation process during transit. should be obtained from the local the limelight. Gard P&I has recently This additional process is dealt with Competent Authority. However, cargo been involved in several cases, which specifically in the BC Code. with a temperature in excess of 65oC have served as a stark reminder of should never be loaded. It is usual the dangers involved in carrying this Carriage Requirements for temperature thermocouples to be hazardous bulk cargo. placed within the cargo holds during Carriage requirements are set out in the loading for the monitoring of cargo IMO BC Code. Reference should also temperatures during carriage. It is Types of DRI be made to the latest published advice important that these thermocouples are DRI is the raw material used in the and carriage requirements approved tested prior to being positioned within production of steel in electric arc by the local Competent Authority and the cargo and their location within the furnaces, which form the majority of the issued by the shipper. The BC Code cargo recorded. steel production facilities worldwide. recommends that the shippers should DRI can be split into two distinct sub- provide specific instructions for the groups; cold moulded pellets or hot carriage of DRI, and these should either It is also recommended that the cargo moulded briquettes. The IMO Bulk be: should be properly trimmed in order Cargo (BC) Code deal with these two 1. That the cargo spaces be to reduce the amount of surface area types separately. Hot moulded DRI maintained in an inert condition, exposed to the atmosphere. Trimming briquettes are a more refined product, with the atmosphere containing also helps reduce the “funnel” effect formed by the further processing of less than 5 per cent oxygen. The by reducing the amount of void spaces cold moulded pellets. Both forms of hydrogen content of the cargo in the cargo where hot gases can move DRI are considered hazardous when spaces should be maintained at upwards while drawing in fresh air. carried in bulk and specific carriage less than 1 per cent by volume, OR requirements are listed in the BC Code. 2. That the DRI is manufactured or If the vessel has any doubts about treated with an oxidation inhibiting any particular DRI loading it is process to the satisfaction of the DRI properties and dangers recommended that independent Competent Authority. DRI in either form is similar to other advice be obtained from an expert. The steel structures in its susceptibility Association is only too happy to assist to rust (re-oxidise) in the presence If the atmosphere is inerted, the in this regard, and in any other way it of oxygen. The rate of oxidisation inerting agent must be nitrogen. can. is dependant, to a greater or lesser Carbon dioxide should not be used, degree, on the moisture content of the primarily because it can produce carbon For more information regarding Gard DRI and the atmosphere in which the monoxide, which is both toxic and loss prevention products, please DRI is carried. The oxidisation process flammable. Even on short sea voyages it contact Terje Paulsen, at phone number generates heat, which in bulk cargoes is recommended that the cargo be fully +47 55 17 40 85 or email terje.paulsen@ of DRI can be significant. The process of inerted. Passivation has been shown to gard.no. oxidation is accelerated in the presence effectively reduce oxidation, from fresh of moisture and is substantially water contamination, in the short term, increased if the water contains but, over time, the effective protection dissolved chlorides, as is the case with is reduced. It should be noted that seawater. The sponge-like structure there is little protection from the of DRI also inhibits the dissipation of rapid reactions caused by the ingress heat and DRI in bulk can therefore heat of salt water into the cargo spaces. rapidly in isolated pockets. It is therefore recommended that the carriage of DRI should always be undertaken under a nitrogen blanket. Hot iron when in contact with water The ship’s crew should carry out can cause a chemical reaction resulting effective monitoring of the atmosphere in the production of hydrogen, which in the cargo spaces. Records should is highly explosive in the correct be kept of the levels of hydrogen and quantities. The generation of hydrogen oxygen in each cargo space. is the most dangerous property of DRI and has led to several fatal explosions. In some manufacturing processes, the The condition of the cargo should DRI undergoes one of two processes be monitored during loading. Cargo called either ‘passivation’, whereby that is hot or damp should not be the briquettes are coated with loaded. It is also recommended sodium silicate or ‘ageing’ in which that the temperature of the cargo

Notice to Members Information required December 2012 when offered a shipment of Iron fines that may contain DRI (C) Background Charterers on the information to be the master. In addition to the general The process of manufacturing Direct requested to assist in the identification requirements, the entry for DRI (C) Reduced Iron (DRI) from iron ore of DRI cargoes and the correct, safe specifies the following: and the subsequent hot briquetting practices for carriage. procedures generate unwanted For the avoidance of doubt, it is the “Prior to loading the cargo, the by-products in the form of dust and position of the International Group of shipper shall provide the master with broken chips during most of the stages. P&I Clubs (IG) that cargoes with DRI in a certificate issued by a competent Some manufacturers recover these their descriptions should be declared person recognised by the National materials and offer them for shipment. using the appropriate Bulk Cargo Administration of the port of loading Historically, such cargoes have mainly Shipping Name (BCSN) for a DRI (C) stating that the cargo, at the time of originated from Venezuela and Trinidad, cargo and prepared, loaded and carried loading, is suitable for shipment; that it although shipments have also been in accordance with the provisions of the conforms with the requirements of this made from the US, Mexico and Libya. IMSBC Code. Code; that the moisture content is less This cargo has been responsible for a than 0.3%; and the temperature does number of casualties in the past, most Information to be obtained not exceed 65oC. The certificate shall notably the MV YTHAN in 2004, in before loading: state that the cargo meets the loading which six crew members lost their lives Cargo blends containing DRI (C) criteria in regards to ageing and during explosions that occurred in four can be identified by their chemical material temperature.” of her five cargo holds and which also composition, details of which must be resulted in the loss of the vessel. requested. The chemical composition “Prior to shipment, the cargo must include the total iron content shall be aged for at least 30 days This cargo was not specifically included (Fe), the metallic (or free) iron content and a certificate confirming this in previous editions of the Bulk (Feo) and the moisture content. This shall be issued by a competent Cargo Codes. Following extensive information should preferably be person recognised by the National discussion, a new schedule was drafted supported by a certificate from an Administration of the port of loading.” to encompass this material and was independent testing laboratory and included in the 2009 edition of the must relate to the cargo that is being “Shippers shall provide to the master, IMSBC Code, which became mandatory offered for shipment: in other words, prior to loading, comprehensive on 1 January 2011 (the latest version a “generic” analysis is not acceptable. information on the cargo and safety of the Code was issued this year). The The certificate should state the method procedures to be followed in the event entry is DIRECT REDUCED IRON (C) and standards that have been followed of emergency.” (By-product fines), and the definition when obtaining the samples that have of the material is based only on its been tested (preferably ISO 10835: “The cargo temperature shall be production, particle size and density, 2000) and the standards that have been monitored during loading and recorded without reference to the metallic iron or followed to determine the metallic iron in a log detailing the temperature moisture content. content (preferably BS ISO 5416 : 2006). for each lot of cargo loaded, a copy The date on which the sampling took of which shall be provided to the Despite extensive publicity, cargoes are place should also be checked to ensure master. After loading, a certificate still being offered and shipped that do relevance. shall be issued by a competent not have DRI in their descriptions, but person recognised by the National which in fact are blends that contain a The iron in a cargo of iron ore is Administration of the port of loading significant proportion of DRI (C) fines. chemically bound with other elements confirming that throughout the whole Descriptions have included reoxidised and therefore it contains no metallic consignment of fines and small particles iron fines, iron fines (blend), iron ore (or free) iron. If the cargo contains any the moisture content has not exceeded pellet chips, oxide fines, pond fines, metallic iron (Feo), then it must be a 0.3% and the temperature does not sludge fines, remets, clarifier slush DRI derivative: DRI (A) and (B) cargoes exceed 65oC”. and dust, spent iron fines and lodos. typically contain about 85% metallic Other similar cargoes include DRI in iron, whereas in blends containing DRI Exemptions from the the description, but are offered on (C) it can be as low as1% or 2%. requirements of the IMSBC Code the basis that they are not DRI (C) and Such blended cargoes should be For cargoes that are listed in Appendix therefore do not need to be carried in regarded as the hazardous commodity 1 of the IMSBC Code, such as DRI accordance with the DRI (C) Schedule DRI (C) and be carried in accordance (C), Section 1.5 allows a competent of the Code. Members should also be with the provisions of the Code. If in authority to authorize any other aware that, even if the cargo offered doubt, Members should consult their provision or exemption if satisfied that is not DRI (C), in some instances Association. such alternative provision is at least as stockpiles are adjacent and non DRI effective and safe as that required by cargo can become contaminated Having identified the cargo as DRI the Code. Three competent authorities with DRI fines. This circular provides (C), the IMSBC Code sets out the are recognised: the port State of guidance to Shipowners, Masters and information that must be provided to departure, port State of arrival and

© Gard AS, January 2014 13 the flag State. Prior to any shipment not breached and that the exemption relating to such cargoes must classify covered by such an exemption, the certificate is maintained on board each the material as Group A and B and recipient of the exemption must ship transporting the solid bulk cargoes thaccompanying test certificate(s) must notify the other competent authorities in accordance with the exemption. state the Transportable Moisture Limit concerned, who may or may not accept and actual moisture content of the that exemption. For cargoes that are offered for shipment. The certificate(s) should also transport in accordance with an refer only to the cargo that is being The IG is aware of at least three exemption as described above, the offered for shipment, i.e. not a generic countries that are offering DRI (C) loading, carriage and safety procedures measure obtained from previous cargoes with moisture contents up to must be clearly stated. In particular, shipments, and the standards that have 12% and with metallic iron contents the master must be advised of the been followed when obtaining the ranging from 1% to 60% for shipment ventilation rates and durations for each samples that have been tested. under exemption certificates issued cargo space; the required standard of by the competent authority of the port explosion protection of the ventilation The IMSBC Code also addresses State of departure, namely Venezuela, fans; details of the arrangement of cargoes that are not listed in Appendix Trinidad and Tobago and Mexico. It ventilation ducts into the holds; the 1 of the IMSBC Code and provides is not known whether any Tripartite method and frequency of monitoring that such cargoes can be carried Agreements have been made between the hydrogen concentrations in each under conditions which are defined by any of the other competent authorities cargo space; the method and frequency and subject to a tripartite agreement (port State of arrival and flag State). of monitoring the cargo temperatures between the competent authorities However, the IG is aware that at least in each cargo space; the criteria of the ports of loading and unloading two flag States do not permit any defining an emergency; the procedures and the flag State. However, if a cargo exemptions from the requirements to follow in the event of emergency; is described as iron ore fines, or one of the IMSBC Code in respect of the shipper’s contact numbers in the event of the other descriptions contained in carriage of any form of DRI. of emergency; and the procedures to the background section of this circular, follow before and during discharge. and is found to contain any metallic The Association recognises that the iron content (Feo), then it should be Code permits an exemption but The IMSBC Code schedule for DRI regarded as DRI (C) and be carried strongly advises Members to adhere to (C) sets maximum allowable moisture in accordance with the provisions of the carriage requirements as detailed in content as 0.3% for carriage. When the Code as the tripartite agreement the IMSBC entry for DRI (C). If Members cargoes are offered with moisture procedure is for cargoes not listed in choose not to follow this advice, they content in excess of this then they are Appendix 1 of the Code. should satisfy themselves that all of the not compliant, and at higher moisture three competent authorities named contents they may additionally pose a All Clubs in the International Group above have been notified and have realistic risk that they may liquefy in a of P&I Clubs have issued similar accepted the exemption, that the rules similar manner to certain iron and nickel guidelines. of the flag State Administration are ore cargoes. Therefore, any Declaration

Gard News 197, Liquefaction of February/April 2010 unprocessed mineral ores - Iron ore fines and nickel ore By Dr Martin Jonas, Brookes Bell, Liverpool.

Dr Martin Jonas considers some of the technical issues behind the casualties involving the carriage of unprocessed natural ores from India and nickel ore from Indonesia, the Philippines and New Caledonia.

Introduction Liquefaction of mineral ores, resulting in cargo shift and loss of stability, has been a major cause of marine casualties for many decades. Recent Figure 1: Liquefaction as a result of cargo compaction. In the solid state (left), the shear problems, already leading to several strength of the cargo is provided by the direct contact between the cargo particles. total losses this year, have primarily There are sufficient interstitial spaces to accommodate the inherent moisture and a proportion of interstitial air. As the cargo compacts under the influence of the ship’s involved the carriage of unprocessed motions, the volume between the particles reduces and interstitial air is expelled. natural ores such as iron ore fines from Eventually, the water pressure resulting from compaction presses the particles apart, India and nickel ore from Indonesia, potentially leading to them losing direct contact and a resulting sudden loss of shear the Philippines and New Caledonia. strength, i.e., a fluid state (right). The main cause of casualties and near misses is the poor compliance (see Figure 1). This suddenly reduces The lowest moisture content at which of shippers with the testing and the friction between particles, and thus liquefaction can occur is called the Flow certification requirements that are the shear strength of the cargo. Moisture Point (commonly abbreviated designed to ensure that cargoes are FMP). Its numerical value can vary loaded only if the moisture content is The effect of this process is a transition widely even for cargoes with the same sufficiently low to avoid liquefaction from a solid state to a viscous fluid description. It is not possible to predict occurring during the voyage.1 state in which all or part of the cargo the FMP of a given cargo from its can flatten out to form a fluid surface. description, particle size distribution Principles of liquefaction In this condition, cargo may flow to or chemical composition and the FMP Cargoes that are at risk of liquefaction one side of the ship with a roll one way therefore needs to be determined by are those containing at least some but not completely return with a roll laboratory testing separately for each fine particles and some moisture, the other way, progressively leading cargo provided by each shipper. although they need not be visibly to a dangerous list and potentially the wet in appearance. The most widely- sudden capsizing of the vessel. In cargoes loaded with a moisture known cargoes with this hazard are content in excess of the FMP, mineral concentrates, although many Cargo liquefaction will not occur liquefaction may occur unpredictably other cargoes can also liquefy, such as if the cargo contains a sufficiently at any time during the voyage. Some fluorspar, certain grades of coal, pyrites, low inherent moisture content and cargoes have liquefied and caused millscale, sinter/pellet feed, etc. sufficiently high interstitial air that, even catastrophic cargo shift almost in its most compacted state, there immediately on departure from the Although they often look dry in are still sufficient interstitial spaces to load port, some only after several appearance at the time of loading, accommodate all of the moisture so weeks of apparently uneventful sailing. these cargoes contain moisture in that the increase in water pressure is While the risk of liquefaction is greater between the particles. At the time of inhibited. during heavy weather, in high seas, and loading, the cargoes are usually in their while under full power, there are no solid state, where the particles are in direct contact with each other and, therefore, there is physical strength of resistance to shear strains. During ocean transport, cargoes are exposed to agitation in the form of engine vibrations, ship’s motions and wave impact, resulting in compaction of the cargo. This leads to a reduction of the spaces between the particles. If compaction is such that there is more water inside the cargo than there are spaces between the particles, the water pressure inside the cargo can rise sharply and press the particles apart Iron ore fines before and after liquefaction.

© Gard AS, January 2014 15 safe sailing conditions for a cargo with unsafe moisture content. Liquefaction can occur unpredictably even in relatively calm conditions on a vessel at anchorage or proceeding at low speed.

It is for these reasons that SOLAS and the IMSBC Code incorporate provisions intended to ensure that only cargoes with sufficiently low inherent moisture content to avoid liquefaction are loaded. Strict adherence to these provisions is the only safe way of carrying these types of cargoes.

SOLAS/IMSBC Code Regulations SOLAS requires that the shippers of bulk cargoes provide the Master in writing sufficiently in advance of loading with information on any special properties of the cargo, including the likelihood of shifting, and for concentrates or other cargoes which may liquefy additional information in the form of a certificate on the Flow table test. moisture content of the cargo and its Transportable Moisture Limit (commonly abbreviated to TML).2 whether or not the cargo offered for the moisture content of the test sample Cargoes which may liquefy shall only loading is a cargo that may liquefy.6 is truly the average moisture content of be accepted when the actual moisture This is a very important part of the the entire consignment.10 content is less than the TML.3 shippers’ obligation to provide appropriate cargo information, as it is Sampling for moisture content must Unlike the FMP, which can be not necessarily obvious from the cargo take place not more than seven days determined in the laboratory, the TML name or from a visual inspection of the prior to loading. Additional check is a parameter that is calculated, rather cargo whether the cargo may liquefy, tests should be conducted if there is than measured, as 0.9 times the FMP. and thus whether the Master should significant rainfall between sampling Thus, for example, a cargo with an FMP insist on a declaration of moisture and and loading.11 of, say, 10 per cent (as determined in TML prior to allowing the cargo to be the laboratory) has a corresponding loaded. In principle, any bulk cargo Shippers must declare the moisture TML of 9 per cent, this being 0.9 times that contains at least some moisture content separately for each cargo 10 per cent. and at least some fine particles is at hold of the vessel, unless sampling risk of liquefaction. The IMSBC Code has shown that the moisture content Thus, the maximum allowed moisture specifies that all such cargoes should is uniform throughout the entire content of a cargo at the time of be submitted for laboratory testing to consignment.12 In concentrates, the loading (the TML) is lower than the establish whether or not they possess moisture content is often sufficiently moisture content at which liquefaction flow properties.7 If such testing uniform, but in unprocessed ores such actually occurs (the FMP). This shows that the cargo possesses a flow as iron ore fines and nickel ore, the difference between the TML and the moisture point, then shippers must moisture content can vary significantly FMP is intended to provide a safety provide a certificate of moisture and throughout the consignment and margin to protect against variations of TML prior to loading, regardless of thus separate hold-by-hold moisture in moisture or FMP throughout the whether or not the cargo is specifically declaration is required. In actual cargo and to allow for measurement listed by name in the IMSBC Code as a shipping practice, few if any shippers uncertainties in the laboratory cargo that may liquefy. do declare a hold-wise moisture determination of moisture and FMP. content even in highly non-uniform It is essential that this safety margin 2) Certification of moisture content cargoes, and this is a cause for concern. is always preserved and thus cargoes The declaration of moisture content should never be accepted if the must contain a statement from shippers If more than one distinct type of cargo moisture content exceeds the TML, that this is the average moisture content is loaded commingled in the same regardless of by how much.4 of the cargo at the time the declaration cargo hold, e.g., if loading is from is handed to the Master prior to different stockpiles from a different Full details on the underlying testing start of loading.8 One important source of supply or with different and sampling procedures for shippers’ consequence of this is that the entire exposure to rain, then shippers must certification obligations under SOLAS cargo must already be available at the provide separate certificates for each are given in the IMSBC Code 2009 (and load port to be sampled prior to start type of cargo in each cargo hold. previously in effectively identical form of loading, rather than be delivered Similarly, shippers must carry out in its predecessor, the BC Code 2004)5. piecemeal throughout a protracted separate sampling and certification for In brief, the IMSBC Code specifies the loading process. The moisture content each substantial portion of material following: determination must be carried out on which appears to be different in truly representative test samples of characteristics or moisture content 1) Identification of hazard the entire cargo.9 This is an elaborate from the bulk of the consignment. The Prior to start of loading, the shipper process requiring full access to the moisture content must be below the must declare to the Master in writing cargo and careful planning to ensure respective TML separately for each

© Gard AS, January 2014 16 distinct parcel of cargo. Any portions requirements of the IMSBC Code indeed acknowledge that the cargo that are shown to have a moisture is essential in order to ensure that is a liquefaction hazard by supplying content above the TML should be only cargoes that are safe for ocean a moisture and TML certificate, albeit rejected as unfit for shipment.13 Thus, transport are loaded. The IMSBC Code frequently flawed, some shippers do if cargo is loaded from more than places the burden of certification on not, and without expert knowledge one source, it is not sufficient for the shippers, not on the Master. Without it is difficult for the Master to know average moisture content of all of the accurate information and certification that he should insist on a declaration cargo in each hold to be below the being provided by shippers, the Master of moisture and TML before allowing TML. One important consequence can not independently assess whether loading to commence. of this is that it is not possible to or not the cargo offered for loading compensate for the loading of a batch is safe to carry. This is because it is Implementing a sampling and of excessively wet cargo by then impossible to determine from a visual testing regime that complies with the loading additional drier cargo into the inspection or from ad hoc sampling provisions of SOLAS and the IMSBC same cargo hold. of cargo being delivered to the vessel Code, as summarised above, is a whether or not the moisture content technically much more demanding 3) Certification of TML of a cargo is below the TML. Cargoes task for unprocessed ores than it is As discussed above, the TML is derived with moisture above the TML typically for concentrate cargoes. The IMSBC mathematically from a laboratory look much the same as cargoes with procedures were designed with determination of the FMP. In principle, moisture below the TML. Clearly concentrates in mind and therefore there are several different alternative discernible alarm signals, such as have an implicit assumption of uniform test methods to determine the FMP: separation of free water on the cargo particle size and reasonably uniform three of them are described in full surface or muddy appearance of the moisture distribution throughout the detail in Appendix 2 of the IMSBC cargo, are only visible during loading entire cargo. Neither of these applies Code and the competent authority when cargoes have a grossly excessive to unprocessed ores. of the exporting county may approve moisture content. additional test procedures.14 In It is an unfortunate combination actual shipping practice, the only test Unprocessed ores - Iron ore fines that although sampling and testing method that is in widespread use is and nickel ore cargoes of unprocessed ores is a the flow table method, as described in There is a wide range of mineral technically more demanding task than paragraphs 1.1.1 to 1.1.4 of Appendix cargoes that may liquefy, and they for concentrate cargoes, the shippers 2. While the test method is not difficult, vary in their appearance and physical of these cargoes are typically relatively it contains a subjective element properties. One sub-group of small operators often lacking in the and needs to be carried out by an cargoes has a particularly dangerous knowledge, expertise and technical experienced analyst who is familiar with combination of risk factors, and infrastructure, and sometimes the the early signs of liquefaction in a test accounts for a large proportion of will, to comply with their SOLAS and sample. The critical part is the ability to recent casualties, near misses and IMSBC Code obligations. Because of reliably identify a flow state in the test contentious load port disputes during the unprocessed nature of the cargo, sample using the criteria given in the carriage of cargoes that may liquefy. shippers have only very limited control Code.15 It is a matter of some concern over moisture content and some that laboratories testing iron ore fines The cargoes in question are shippers may not actually be able to in India and nickel ore in Indonesia unprocessed ores, the most widely- supply cargoes that meet the SOLAS and the Philippines depart in many encountered of which are iron ore fines, requirements. important respects from the IMSBC mainly exported from India, and nickel Code test procedure without approval ore, mainly exported from Indonesia, Following are some of the technical from the respective competent the Philippines and New Caledonia. issues that need to be considered authorities and without conducting Unlike concentrates, these are simply by shippers when designing their systematic inter-laboratory comparisons dug out of the ground in open-cast certification procedures. to establish consistency of their results mines in mineral-rich, and often remote, with laboratories using the unmodified locations and are presented for ocean The physical composition of IMSBC Code method. transport with little or no processing. unprocessed ores varies significantly Thus, where concentrates have a highly even within a single open cast pit, For most processed ores, such as uniform particle size and physical and even more so as most cargoes concentrates, the TML depends consistency, unprocessed ores are very are mixtures of material dug out mainly on the technical details of the heterogeneous, consisting of a mixture from several, and sometimes very concentration process and does not of fine-grained ore, clay-like material, many, individual pits, which may be vary significantly between shipments. pebble-sized stones and the occasional distributed over a wide geographical For these cargoes, it is sufficient if larger lump. area. As a result, the TML may vary shippers carry out a TML test once greatly from one part of the cargo to every six months. However, if the For shipowners contemplating carriage another, but in an unsystematic and composition or characteristics of the of these cargoes, and for Masters unpredictable manner, which does cargo are variable between successive instructed to load them, a major not allow to simply test each source of shipments for any reason, then a difficulty is that neither iron ore fines material separately. new TML test is required each time.16 nor nickel ore have a specific listing Unprocessed ores such as iron ore in the IMSBC Code and thus it is not The moisture distribution throughout fines and nickel ore vary greatly in immediately obvious from consulting each cargo is typically highly non- composition not only from shipment to the Code that these are indeed uniform. The material is already shipment but also within each individual cargoes that may liquefy. Unless variable in moisture at the time it is shipment. Thus, for these cargoes, he is already aware of the potential dug out of the ground. Most mining shippers must carry out a new TML test hazards from other sources, the Master locations are in tropical countries with for every single cargo being loaded. is dependent on shippers correctly frequent heavy rainfall and the cargoes declaring the cargo as a liquefaction are typically transported in open lorries/ Close adherence to the above hazard. Although most shippers do wagons and stored in open stockpiles

© Gard AS, January 2014 17 leading to unpredictable increases in effort to establish the soundness of 13 IMSBC Code, Paras. 4.3.3 and 4.4.3. moisture. the test procedures used by Indian 14 IMSBC Code, Paras. 4.1.4 and 8.3. laboratories. Appendix 2 contains the actual test The IMSBC Code specifically states procedures to determine the FMP and that the ubiquitous test method for In Indonesia, the Philippines and TML, including the flow table method in TML determination, the flow table New Caledonia, mining locations Paras. 1.1.1 to 1.1.4. method, is unsuitable for materials are typically very remote indeed, 15 IMSBC Code, Appendix 2, Paras. containing particles above 7mm in and loading takes place at natural 1.1.4.2.3 and 1.1.4.3. size.17 This creates a dilemma for anchorages close to the mines, 16 IMSBC Code, Para. 4.5.1. laboratories testing unprocessed well away from any sophisticated 17 IMSBC Code, Appendix 2, Para. cargoes, which frequently contain infrastructure. The mines therefore 1.1.1. pebble-like stones above that size. generally operate their own flow Nickel ore, in particular, often has a table for TML testing in their in- very high proportion of lumps above house laboratories rather than using 7mm. Iron ore fines are generally independent laboratories. On closer somewhat finer, but some cargoes scrutiny, many of these in-house also have a significant proportion of laboratories have been found to lumps above 7mm. The most frequent be poorly equipped and to depart workaround to avoid this problem is significantly, and sometimes grossly, to screen out all particles above 7mm from the test procedures set out in the prior to analysis and to conduct the IMSBC Code. TML test only on the proportion that is below 7mm in size. When doing so, it is Footnotes essential that the particles above 7mm 1 See article “Carriage of dangerous are removed from both the sample cargo - Questions to ask before you submitted for TML testing and the say yes” elsewhere in this issue of Gard samples used to certify the moisture News. content of the cargo. Failure to do so 2 SOLAS, Chapter VI, Regulation 2, will systematically overstate the safety Para. 2.2. of the cargo and may therefore lead 3 SOLAS, Chapter VI, Regulation 6, to cargoes being accepted for loading Para. 2. that are actually unsafe. 4 The difference between moisture content and TML is a frequent source Because of the non-uniform nature of confusion, leading to nonsensical of unprocessed ore cargoes, samples statements such as “The TML of the from every single cargo need to cargo increased because of rainfall”. be submitted for laboratory TML The TML of a cargo depends on the testing. Shippers therefore need type and composition of the cargo, but to have a suitably equipped and is not affected by whether the cargo is qualified laboratory close at hand for wet or dry. The TML is similar to, say, a TML testing to achieve acceptable speed limit on a road. The speed limit turnaround times between sampling does not depend on how fast you drive, and certification. This differs from but you break the law if you drive faster shippers of concentrate cargoes, than the speed limit. who only need to submit one sample 5 The IMSBC Code may be applied every six months, and therefore do voluntarily from 1st January 2009 and not find it onerous to courier samples will become mandatory under the to reputable laboratories overseas. provisions of SOLAS from 1st January TML testing is a specialised task, and 2011. there are few laboratories worldwide 6 IMSBC Code, Para. 4.2.2.2. The who have a track record of obtaining IMSBC Code classifies cargoes that may reproducible results and participating in liquefy in cargo group A and requires inter-laboratory comparisons over many shipper to declare the cargo group. years. None of these are in the main 7 IMSBC Code, Appendix 3, Para. 2.1. exporting countries of unprocessed 8 IMSBC Code, Para. 4.3.2. ores. 9 IMSBC Code, Para. 4.4.1 to 4.4.4. 10 IMSBC Code, Para. 4.4.4. In India, shippers of iron ore fines used Paras. 4.6.1 to 4.6.6 give a set of to ignore their SOLAS obligations to recommendations for concentrate provide a TML certificate until quite stockpiles that specify the minimum recently. Independent laboratories number of sub-samples to be taken offering TML testing have only started to make up the representative to operate in the country after the sample. For a cargo of (say) 40,000 2007 monsoons. Although there are MT a minimum of 160 sub-samples is now many laboratories in India, all required. For cargoes that are more of them were started quite recently inhomogeneous than concentrates, and therefore there is little or no including iron ore fines and nickel ore, experience data available to assess collecting a sufficiently large number their reproducibility and consistency of sub-samples is even more important with leading international laboratories. than for concentrates. To date, there has been no centralised 11 IMSBC Code, Para. 4.5.2. accreditation or inter-laboratory testing 12 IMSBC Code, Para. 4.3.3.

Gard Alert Intercargo publishes February 2012 guide for the safe loading of nickel ore

The International Association of Dry Intercargo also points out that the so- Cargo Shipowners (Intercargo) has called “can test” is insufficiently robust recently published the “Guide for the as a means of checking cargo safety on Safe Loading of Nickel Ore”, which its own. aims to explain, through use of a flow- chart, how nickel ore can be safely A copy of the guide can be found shipped, within limitations, whilst raising here. We are grateful to Intercargo for awareness of the serious problem of their kind permission to reproduce the cargo liquefaction. It is targeted at the document. widest possible audience within the industry, including shippers, shipowners and masters. For additional information on cargo liquefaction, please refer to: In addition to a chart describing what to look for when loading nickel ore, the • Gard News articles “IMSBC guide recommends that: Code amendments regarding cargoes that may liquefy” and • Responsible shippers must “Cargo liquefaction - An update” not misrepresent cargoes. In published in Gard News no. 205, order to provide accurate cargo February/April 2012. declarations shippers should have in place procedures for sampling, • Gard Compilation on “Dangerous testing and controlling moisture solid cargoes in bulk DRI, nickel content of cargoes including and iron ores” – including a procedures to protect cargo on number of articles focusing barges from any precipitation and specifically on the risk of cargo water ingress. liquefaction published by Gard prior to June 2011. • Responsible shipowners must check that the cargo • Gard Loss Prevention Circular documentation is provided as no.06-11 “Cargo liquefaction required in the IMSBC Code. problems - sinter feed from Brazil”. • Before fixing, chartering departments should refer to their • Gard Alert “IMSBC Code - own internal procedures regarding Charterparty clause for solid bulk the acceptance of nickel ore cargoes” issued 21 September cargoes. 2011.

Gard News 150 Shifting solid bulk June 1998 cargoes

AN EXPLANATION OF THE vessel’s stability in a similar way to usually expressed as a percentage of PROCESSES AND DANGERS that described above. The gravest the moisture content. The IMO Bulk Solid bulk cargoes can shift by sliding consequence of shifting is capsize of Cargo Code referred to above adopts or liquefying, and whilst the factors the vessel, and this can happen when what is known as the Transportable involved in each of these processes multiple shifts occur with little return Moisture Limit (TML), and this is the are different, the potentially disastrous of cargo to original positions. This maximum moisture content of a cargo consequences are the same - listing or process can be very quick and obviously deemed safe for carriage by sea in capsizing and/or structural damage. disastrous. ships other than “specially designed ships”. It is defined as 90 per cent of Dense cargoes, e.g. ore concentrates, Sliding occurs when the cohesive the FMP. Cargoes prone to liquefaction have by definition a relatively high mass strength, or “stickiness” of the cargo, are those with a small particle size and to volume ratio, so even a small amount is insufficient to withstand the effects those which contain moisture as a result of shifted cargo can have a large of rolling. Cohesive strength varies of the way they are processed before mass. Coupled with the momentum according to moisture content and loading, e.g. iron ore concentrates and generated by a moving vessel the height of the stockpile. A good coal slurry or duff4. considerable forces can act upon the illustration of this is provided by sand. ship’s structure. This force will be even Wet or dry there is a limit on the height It is perhaps worth mentioning here greater when the cargo level within the of a pile of sand, but damp sand tends that solid bulk cargoes are increasingly hold is above the sea level outside the to permit a higher sand pile. A common being carried in Intermediate Bulk hold, so that the counter-acting force example of a cargo prone to sliding is Containers (IBC)5. The Association’s of buoyancy is absent. Add to this the grain2, which is particularly free flowing. experience with this type of carriage frequent occurrence of multiple or The International Maritime Organisation suggests that the dangers of shifting repetitive shifts and the result can be (IMO) Code of Safe Practice for cargo can be just as real. Solid bulk excessive plate flexing increasing the Solid Bulk Cargoes 1991 states (at cargoes which are prone to sliding have risk of cracking and failure. para 5.2.4.2) that “non-cohesive bulk been known to force the sides of even cargoes having an angle of repose3 rigid IBC’s to move and if there are In terms of stability1, shifting cargo can less than or equal to 30 degrees flow gaps within the stow, or the sides of the have numerous consequences. The freely like grain and should be carried stow are insufficiently shored, a general shift in cargo will cause a list if the cargo according to the provisions applicable collapse of the stow can occur. does not return to its original position to the stowage of grain cargoes”. with subsequent vessel movement. The stowage and carriage of grain is A CASE EXAMPLE - LIQUEFACTION Apart from increased draft concerns, governed by the IMO Grain Rules 1982 OF SCALE DUST the angle at which the vessel is listed which set out a number of requirements An increasingly common solid bulk will, if uncorrected, become that about including specific stability criteria. cargo is dust, commonly originating which the vessel rolls. This will usually There is also some industry authority to from industrial chimneys. Industry has mean that the righting lever for angles support a theory that sliding can also for some time been required to limit of heel towards the side the vessel occur when, due to downward moisture the pollutants discharged into the is listed will be less than that when migration, a saturated base layer environment and to this end chimneys the vessel is heeled from her upright (which need not be liquefied) is formed can be installed with filters. The material position, which in turn means that the allowing the upper, relatively drier layer, collected by these filters is generally force returning the vessel from angles to move against it. termed filter dust; material which builds of heel beyond the angle of list, back up on the inner chimney surfaces also to the same angle, will be less than Liquefaction of solid bulk cargoes gives rise to another type of dust - scale the force returning the vessel to the depends on particle size and dust. The contents of these substances upright had she not been listed. The distribution as well as moisture content. vary enormously and chemical hazards angle of deck edge immersion will The former determines whether are often associated with them. This is also be closer than that for an upright moisture can drain freely through the one of the reasons why many societies vessel and if this is reached stability will cargo, and will obviously change during in our greener world no longer allow also be reduced. A list will also tend to a vessel’s voyage due to vibration, them to be left stored and forgotten subject the vessel to greater angles of rolling, pitching and twisting. The on open slag heaps or in land-fill sites. heel and this may give rise to a domino effect of this movement is to break The option to be considered in many effect causing other cargo and objects down lumps of cargo and reduce the of today’s societies is re-cycling and it to break securings and/or to shift. Solid space between particles - effectively is this which has, to some extent, led to bulk cargoes that shift from one side of compacting the cargo. Moisture can the water transport of dust. the vessel to the other with the rolling then become trapped between cargo of the vessel, that is to say, cargoes particles and if there is sufficient The problems and dangers of watery behaving like a liquid in a part-filled saturation a flow state can develop. filter dust were last mentioned in Gard tank, will also give rise to a Free Surface The point at which this occurs is called News Edition 1046, and a recent case Effect, and this again will reduce the the Flow Moisture Point (FMP) and is involving scale dust suggests to us

© Gard AS, January 2014 20 that these problems and dangers are moisture content was said to be in the content above the TML should not be not fully understood and that essential region of 11 per cent but tests at the shipped. Remember that it may only be precautions are not being adhered to. discharge port determined a moisture necessary to reject parts of the cargo, content of nearly double this figure. but this should raise concern as to the The vessel in question loaded at safety of the remaining cargo. Algeciras, Spain, and the scale dust LESSONS LEARNT AND (6) The cargo space should be filled in bulk was to take up most of her PRECAUTIONS TO BE TAKEN as much as is practicable, but always centre hold. The majority of the scale It is perhaps fair to say that the within stability, stress and deck loading dust was noted by the master to be above vessel was fortunate to have constraints. A part-filled compartment is in open storage on land, unprotected completed her voyage without more more prone to shifting and has greater from the elements, and on closer serious incident. Having read the case space in which to allow shifting. examination, was found to have a high summary, the reader will probably be (7) Longitudinal separation (e.g. moisture content in parts. Whilst the able to find a number of areas where temporary bulkheads), and overstowing master was concerned as to the state essential additional precautions could (e.g. bulk bundles) can be effective in of the cargo, loading commenced, and have been taken. Outlined below are limiting the distance cargo can shift, the since this took place during periods a number of points which should be shift amount and forces involved. Expert of rainfall, moisture levels increased. considered when contemplating the advice is recommended to ensure No documents were produced by the loading of solid bulk cargoes suspected that these measures are appropriate. shippers to record the properties of the of having a propensity to shift. In addition, overstowing may not be scale dust, and when the master did (1) Carry out a visual examination of appropriate, and shifting forces are raise concerns with the various cargo the cargo and enquire as to the extent often underestimated thus risking the interests, including their surveyors, and duration of exposure to moisture failure of longitudinal separation. he was told that the loading of the (unprotected stowage on wet ground or (8) Cargo stows should be trimmed cargo during rain, and the wetting in wet weather). level right out to all sides of the cargo of the cargo, was normal and of no (2) Obtain and keep safe ship’s own compartment. It is appreciated that importance with regard to the quality of samples (the quantity should be trimming has its disadvantages, e.g. the cargo. sufficient for any necessary tests and increased time and cost at load and be properly labelled and recorded etc). discharge ports. However, it has more The loading of the cargo seemed to Do not just accept shippers’ samples, important advantages. Apart from be completed without further event unless these are taken in your/your reducing the or protest and clean bills of lading representatives’ presence. possibility of cargo shift, weight were issued. On the loaded passage (3) Request in advance of the vessel’s distribution and stability are improved. the vessel encountered moderately arrival, the shippers’ declarations with (9) Do not stow other cargoes heavy weather, causing heavy rolling regard to FMP, stowage factor, TML, containing moisture in same and pitching at times. Four days into moisture content, angle of repose, any compartment. the passage a series of splashing and chemical hazards and details which (10) Do not load during rain. If this banging noises were heard which may require safety precautions to be cannot be avoided have the moisture seemed to come from the hold taken7. If such documentation is not content re-tested to ensure that it containing the scale dust. Inspection forthcoming it should be demanded complies with point 5 above (it should of this hold revealed that the scale and a letter of protest to shippers be noted that some cargoes can be dust had become fluid and was and charterers should be issued. The damaged by exposure to moisture). splashing violently against the hold master can and should refuse to load (11) If possible, adjacent tanks to the sides. The inspection itself was not the cargo if the documentation is still compartment concerned should be without danger as a 5 - 6 metre geyser not forthcoming8. Remember that each empty. If they cannot be made empty, erupted from the booby hatch opened individual cargo is unique. Details of extra care should be taken to ensure for inspection. The resultant mess on cargoes previously carried, even if from that watertight integrity is intact. This the ship’s superstructure was the least the same origin, should not be relied recommendation also applies for the of the worries facing the master as on. whole compartment; hatch covers in shortly afterwards the vessel took on (4) Check the details of the shippers’ particular should be closely examined a list. Fortunately the vessel was able declaration carefully. The details should and tested (hose/chalk/day light tests). to compensate for this by careful and be accurate at the time the certificate (12) The vessel should not be too stiff in strategic ballasting and was able to is issued and the combination of a terms of her stability as this will cause reach the discharge port without further pre-dated declaration and suspected the vessel to roll quickly and perhaps serious incident. exposure to further moisture since violently. In saying this, the vessel needs the date of the certificate should an adequate metacentric height taking Further inspection at the discharge raise concern. Some ports have rain into account all the various factors port revealed that the forces involved gauges to assist in the quantitative which can lead to a reduction in this with the shifting of the liquefied scale assessment of the effects of rainfall on during the voyage. dust had resulted in the penetration of moisture content after certificates have (13) Bilges should be clean and empty, the cargo into an adjacent hold under been issued. If suspicions are raised, strums or rose boxes should be clear and above a moveable transverse grain the shipper should be requested to and lumber boards, where fitted, should bulkhead. Problems ensued with the perform the necessary tests. In any be intact. Bilge well grilles should be consignees who held the vessel liable event, loading should not commence covered with burlap. The pumps and for loss and damage to the cargo and again until the vessel itself is satisfied bilges should be tested in all respects the extra costs of discharging and that the cargo can be transported. (particularly alarms and non-return storing the fluid cargo. The surveyors It may be necessary for the ship to valves) prior to loading. Soundings are appointed by the owners learnt that perform its own tests9. Do not be led to be taken at regular the surveyors appointed on behalf of astray by shippers proclaiming that all intervals during the voyage and bilges shippers, had issued a “certificate” of is fine and normal and that the cargo pumped as necessary. Concerns as the moisture content at the loading quality will be unaffected. This is not a to the effect of cargo weight loss due port and given this to the consignees, quality issue, it is a safety issue. to moisture removal are understood, but not to the master. The certified (5) In any event, cargoes with a moisture but again there are more important

© Gard AS, January 2014 21 concerns. To protect owners’ position it Footnotes International Convention for Safety of is recommended that a record is made 1 For a guide to the basic principles of Life at Sea 1974 (as amended) Chapter of the amounts of moisture removed transverse stability (including definitions VI, Part A and specifically Regulation 2. via the bilges, and this can be done by used in this article) please refer to the 8 Charterers are obliged to load soundings. article in Gard News Edition 145, March only safe cargoes and without the (14) Weather routing is recommended 1997 (pages 14-18). necessary documentation this can in order to avoid heavy weather and/or 2 The term grain includes wheat, maize, not be determined. Laytime disputes sustained periods of it. oats, rye, barley, rice, pulses and seeds. may arise and it is recommended that (15) Always consult the relevant IMO/ 3 The angle which the cargo naturally, charterparties expressly stipulate that flag state/port state/company codes/ and of its own accord, makes with the time lost due to non-production of the guidelines/recommendations. Port horizontal. necessary documentation and/or due states in particular may impose 4 The IMO Code of Safe Practice for to reasonable measures taken by the stricter rules than those adopted Solid Bulk Cargoes 1991 (as amended) ship where the accuracy of document internationally, e.g. with regard to the lists some commodities which may details is reasonably suspected, is to be TML. liquefy. counted as laytime. Diversion to a port (16) If in doubt and assistance is 5 An IBC may be described as a of refuge may also be necessary and needed, the Association is always on disposable or re-usable receptacle it is recommended that charterparties hand. designed for the carriage of bulk make provision for charterers to bear commodities in parcels of 0.5 to 3.0 the costs and consequences of this In conclusion, shifting solid bulk tonnes. They can be of rigid (e.g. where caused without the owners’ cargoes can be costly, not least in fibre board) or flexible (e.g. bags) negligence. terms of money, but people’s lives. construction. 9 The IMO Code of Safe Practice for The dangers are real and are not to 6 December 1986 (page 13). Solid Bulk Cargoes 1991 sets out the be ignored - precautions need to be 7 As of 1st January 1994 it became a tests and procedures. adhered to. SOLAS requirement for the shipper to provide this type of information. See

Gard News 205 Cargo liquefaction - An February/April 2012 update

Solid bulk cargo liquefaction continues it is the shippers who are obliged The reasons behind inaccurate to be a hot topic for P&I Clubs and their under the IMSBC Code to declare that declarations and certificates are Members. There have been several a consignment is fully and accurately numerous and in Gard’s experience recent developments on which to described, that their given test these can range from a complete lack update readers. results are correct to the best of their of knowledge that the IMSBC Code knowledge and are representative of exists, a lack of understanding of the Background the cargo to be loaded. The answer, IMSBC Code, improper sampling The topic of cargo liquefaction gained and what lies at the heart of the and analysis procedures/equipment prominence in Gard News in the early problem, is inaccurate declarations and and even deliberate manipulation part of 20101 and since then Gard has certificates from shippers. This may of samples/test results. The latter is dealt with a large number of enquiries range from cargo being mis-declared particularly concerning and may arise and requests from Members to arrange as Group C (i.e., cargo not liable because shippers are unwilling or precautionary surveys. Despite the well- to liquefy), to inaccurate FMP (flow unable to provide cargo with a moisture publicised potential dangers, it appears moisture point)/TML (transportable content below the TML because to do that market forces are driving ships to moisture limit) figures and/or moisture so would require an investment in time/ carry cargoes that may liquefy and weak content. Judging by what has been costs to remove moisture. This may freight markets may make it difficult reported at IMO level, this appears to particularly be the case where cargoes for owners and charterers to pass up have had disastrous consequences in are simply shipped straight from the employment opportunities. some cases where it is likely that ships ground without any processing. and crews had relied on declarations/ Since early 2010, Clubs in the certificates being accurate. In 2010 Other problems and complications International Group of P&I Clubs (IG the IMO issued a circular5 referring to Whilst unreliable shippers’ declarations Clubs) have issued circulars alerting two serious casualties in the monsoon and certificates may be at the heart Members to the dangers and problems season of 2009 and many near-misses of the problem, this is complicated by of iron ore fines shipped from India on ships engaged in the carriage of several other problems, some of which as well as nickel ore shipped from iron ore fines. In that circular the IMO are discussed below. Indonesia and the Philippines.2 stated: “some shippers have in the Concerns have also arisen with regard past declared iron ore fines as iron ore, Successful shipment history to other cargoes and countries of which is a Group C cargo”. This was A number of shippers and charterers shipment, such as sinter feed from followed by the loss of 45 seafarers are quick to point out that many Brazil,3 chromite ore and mill scale. and three vessels carrying nickel ore cargoes have successfully reached The problems are often exacerbated from Indonesia and a submission by their destination without incident by commercial pressures, and in China to the IMO in March 2011 which and without owners having arranged difficult market conditions, owners stated that “According to the evidence their own precautionary sampling will feel under greater pressure from available, the direct cause of these and analysis. There may be numerous charterers and shippers seeking to accidents was the loss of stability as a reasons for this, such as the fact that persuade owners to avoid extra costs result of cargo liquefaction and shift cargoes are rarely homogenous in all and delays, such as may be caused in bad weather. However, the cargo holds, as well as the weather and sea by owners’ own surveys and tests on documentation provided to the masters conditions. Some voyage orders have cargo waiting to be shipped. Various indicated that the moisture content of been known to advise masters to avoid charterparty clauses have been seen the cargo samples was lower than the heavier seas/weather, which is rather in circulation that attempt to weaken, Transportable Moisture Limit (TML)”. impractical and ignores the fact that avoid, and/or restrain owners’ ability to take appropriate and necessary precautions, such as those set out in the aforementioned Circulars. This resulted in the IG Clubs recently producing a standard charterparty clause to assist owners in trying to resist commercial pressures that could lead to the International Maritime Solid Bulk Cargoes Code (the IMSBC Code) provisions and precautions related thereto being compromised.4

The heart of the problem Members may well ask why they should go through the time, cost and trouble of arranging their own survey, sampling and analysis of cargo, when Market forces appear to be driving ships to carry cargoes that may liquefy.

© Gard AS, January 2014 23 conditions can not always be accurately not determine if a cargo is fit to be However, it can be extremely difficult to forecast, particularly at a local level. loaded - this can only be determined by get cargo re-discharged at the place of Perhaps a significant factor is that the proper laboratory testing. To make this loading. This may be because of a lack TML is set at 90 per cent of the FMP, in clear, one of the revisions to the IMSBC of facilities to take cargo back: in some other words there is a 10 per cent safety Code agreed at the 16th Session of IMO remote locations cargo is bulldozed margin. A cargo may therefore have a Sub-Committee on Dangerous Goods, into barges from ashore and whilst moisture content above the TML, but Solid Cargoes and Containers (DSC 16) cargo can be off-loaded to barges with not so high as to reach the FMP. All was to make clearer the limitations of the ship’s cranes, shippers may have a this said, it is fair to say that the precise the ‘can test’ by adding to the IMSBC problem getting it back ashore. There reasons why some cargoes liquefy and Code a statement that “If samples may also be complications caused by some do not are not fully understood. It remain dry following a can test, the local customs regulations, which may is reasonable to assume that the IMSBC moisture content of the material may consider a cargo to be exported once Code has been drafted with this in mind. still exceed the Transportable Moisture loaded. Quite often, when owners find Sadly, it would seem that numerous Limit (TML)”. their ships with unsafe cargo on board, shippers and indeed some owners do lawyers are instructed and legal battles not feel obliged to comply with the Testing with charterers and others ensue. The IMSBC Code. It is not uncommon to Some shippers have questioned on-board rectification of cargo moisture hear that, following the rejection of whether the tests recognised by the levels is far from straightforward. Many cargo by one owner, the very same IMSBC Code are suitable for certain attempts, using various techniques, cargo is loaded onto another ship. cargoes, particularly if they have a have been carried out but with limited larger particle size and/or the cargo success, particularly in holds that are full. Sampling consists of only a small portion of The IMSBC Code includes provisions for fine material that may liquefy. Experts P&I cover sampling and there is often a problem advising Gard and the IG have been Whilst Gard does not see the P&I cover obtaining sufficiently representative able to successfully test numerous as a complication or problem as regards samples. Owners are often refused cargoes, using the different test liquefaction issues, Members may benefit access to shore stockpiles, if indeed methods, with reasonable consistency. from the clarification given below. there are any, as some cargoes are taken The lack of independent laboratories directly from the ground and loaded that are competent to perform testing, Gard has taken the decision not to the ship. Even if access to stockpiles especially with regard to the FMP/ to afford cover for the cost of is given, shippers may not make clear TML, is also a problem, not just in the precautionary surveys. Some say that which stockpiles will be used to load country of shipment, but world-wide. such surveys are a measure to avert the vessel. The number of samples With many competent laboratories or minimise loss. Subject to certain required for analysis also presents a located outside the country of shipment provisos, Gard’s Rule 46 provides cover logistical challenge (especially if the there can be significant delays and for “extraordinary costs and expenses laboratory is located overseas). For costs. Often owners take the decision reasonably incurred on or after the example, for a stockpile of 50,000 MT, to start loading pending laboratory occurrence of a casualty or event for the sampling according to the IMSBC Code analysis results, but this can also lead purpose of avoiding or minimising any requires 200 samples to be taken and to complications if such analysis shows liability on the Association”. Whilst it is then combined to at least 50 sub- the cargo to be unsafe. However, a lot debatable whether any event has taken composite samples. Owners trying to of good work has been done, notably place at the time a precautionary survey avoid delays by making early survey in India, where industry experts have is requested, the key point in Gard’s arrangements can also face the problem witnessed proper testing in a number view is that the primary purpose of such that, according to the IMSBC Code, the of independent laboratories, often surveys is to confirm that the cargo is time interval between moisture content through training by the very same safe for carriage and not to minimise testing and sampling shall not be more experts. any liability on the Club. than seven days. If unprotected cargo is affected by precipitation between Cargo already loaded In addition, Gard’s Rule 8 provides that testing and loading, further sampling If cargo is loaded and subsequent “it shall be a condition of the insurance and analysis would be required. It is also concerns arise as to its fitness for safe of the Ship that...) the Member shall worth mentioning here the danger of carriage, there is the obvious problem comply or procure compliance with Members and their crews over-relying of identifying within the bulk what parts all statutory requirements of the state on ‘can tests’. Whilst these may indicate of the cargo are unfit. Often, therefore, of the Ship’s flag relating to the...safe if cargo is unfit for shipment they can the whole bulk has to be discharged. operation...of the Ship”. The IMSBC Code is part of SOLAS (a statutory requirement) and under SOLAS the master has an overriding duty and authority not to load the cargo or to stop the loading of the cargo if he has any concerns that the condition of the cargo might affect the safety of the ship.

It should also be borne in mind that bulk carriers are not the only ships that carry dangerous cargo. Container ships carry many dangerous goods and the Club can not be expected to pay for surveys to check that the numerous dangerous cargoes are safe for carriage. For similar reasons as those outlined above, P&I cover is unlikely to respond to the cost of discharging an The on-board rectification of cargo moisture levels is far from straightforward. unsafe cargo.

© Gard AS, January 2014 24 So what costs does Gard cover? Clearly, high moisture content, are liable to seen surveyors and experts, especially the carriage of these cargoes may give flow. Thus any damp or wet cargo those from overseas, refused access to rise to various claims for which Defence containing a proportion of fine particles ports. Local authorities have also been cover may be available, including should be tested for flow characteristics known to have threatened legal action survey costs in connection with such prior to loading”.9 In addition, Group against the removal of samples from claims and incurred with prior approval C cargoes are defined in the IMSBC the country for testing overseas without from Gard. Cover may also be available Code as cargoes not liable to liquefy their prior approval (which is unlikely to if a survey is subsequently used in the and Group A cargoes are defined as be given anyway). defence of a claim that is covered by cargoes which may liquefy. The words P&I. That brings us to the more difficult emphasised tend towards a more What is being done to address the issue of Club cover where a Member cautious approach, which given the problems? does not follow the recommendations potentially disastrous consequences, is Alerting Members to the problems and made by the Club, notably those wholly appropriate. dangers has been a priority in the past set out in the International Group year. Members have then been able to of P&I Clubs circulars. As stated in At the 16th Session of the IMO Sub- raise the level of awareness within their those circulars “...if a Member fails to Committee on Dangerous Goods, Solid own organisations and with long term comply with the [IMSBC] Code or local Cargoes and Containers it was agreed, business partners. Whilst Gard tries to regulations when not in conflict with as a matter of principle, that if a cargo lend as much support to its Members the Code, they should also be aware may liquefy it should be categorised as it can, this is an industry problem that that they might be prejudicing Club as Group A. As mentioned above, needs to be addressed at a national cover. All of the Group Clubs have section 1.3 of the IMSBC Code deals and international level. similar Rules which in essence exclude with cargoes not listed in the IMSBC cover for liabilities, costs and expenses Code and if such a cargo may liquefy National level arising from unsafe or unduly hazardous the IMSBC Code requires preliminary As already mentioned, some states trades or voyages”.6 Until such time suitable conditions for carriage to be have recognised the problems and as Gard or the IG Clubs may decide set by three competent authorities, i.e., dangers of liquefaction and have to take a stricter line, Gard’s approach those in the port state of loading, the taken action. For example, The Indian has been to forewarn Members that flag state of the ship and the port state government, through the Directorate there is a grave risk of losing cover7 if receiving the cargo. Gard has yet to see General of Shipping (DGS), has issued a the Member knowingly carries unsafe any such ‘tripartite agreement’ issued number of Merchant Shipping Notices cargo, for example where independent in respect of nickel ore or indeed iron which generally support the IMSBC test results on samples show a moisture ore fines (despite IMO circular DSC.1/ Code. China is also understood to be content in excess of TML. Members Circ.66 recognising that iron ore fines in the process of drafting regulations. are also at significantly greater risk of are not listed but may liquefy). It is of course important for national prejudicing cover if unsafe cargo is provisions to be in uniformity with the loaded without any checks, or if the Local pressures internationally agreed IMSBC Code. Member loads unsafe cargo from a Mention has already been made of Where they broadly are, these can country where there is a history of commercial pressures. There are also be powerful points of reference for unreliable shippers’ certificates, doing local pressures, despite the fact that shippers attempting to compromise so solely on the basis of ‘can tests’ and some states, such as India, have taken safety. A number of states have also without independent sampling and the problem seriously and introduced made submissions to the IMO, with analysis.8 Of course, much depends national regulations in support of the various suggestions being made to on the facts of each case and there are IMSBC Code. For example, a circular address the problems (see below). likely to be a number of facts (notably recently issued by one Indian port whether or not the cargo is unsafe and/ authority, concerned with the effect International level or the shipper’s certificates are accurate) of loading stoppages on berthing Industry bodies, including the unknown to the Club at the time cargo schedules, required the production International Group of P&I Clubs, have is presented for shipment and Members by the owners’ P&I surveyor of test attended numerous meetings in the seek the Club’s position on cover. certificates together with a statement past year which recently culminated in by the surveyor that the cargo was fit joint industry papers being submitted Gard’s view is that it essentially boils down for loading. The circular went on to to the 16th Session of the IMO Sub- to a question of risk which one Member suggest that if, despite such certificates, Committee on Dangerous Goods, may be prepared to take, but which at a vessels subsequently stopped loading, Solid Cargoes and Containers. That certain level, the mutual membership of surveyors’ licences would be reviewed. session included a meeting of a the Club can not reasonably be expected This is a good example of the pressures Working Group on Amendments to the to share. Is it right that an owner who that local surveyors often face, not least IMSBC Code, including the evaluation does not follow the recommended since such pressure may cause them of properties of solid bulk cargoes. precautions, thus avoiding time, trouble to believe they are being asked to The meeting was attended by state and cost, should get the same level of choose between their own livelihood and industry representatives and on cover as one who does? and the lives of those on board ships. 22nd September 2011 it reported on It is worth emphasising here that a measures to improve safe transport Cargoes not listed in the IMSBC surveyor appointed by the Club on of cargoes that may liquefy. These Code behalf of the owners is not speaking measures are considered in more detail The fact that a number of cargoes that for the Club itself. Neither the Club in the article “Future IMSBC Code may liquefy, such as nickel ore and iron nor the owner can confirm whether or amendments regarding cargoes that ore fines, are not listed in the IMSBC not a particular cargo is safe to carry may liquefy”, which appears elsewhere Code causes uncertainty. However, the and it is not their obligation to do in this issue of Gard News. IMSBC Code recognises (in section 1.3) so under the IMSBC Code. Owners that some cargoes that may liquefy may should be aware that doing so could What can owners do in practice? be not be listed in it. The IMSBC Code prejudice any potential recourse against One might say that the IMSBC Code also states that “many fine-particled a shipper/charterer were something already provides a sufficiently sound cargoes, if possessing a sufficiently to go wrong. Local tensions have also basis on which to safely transport

© Gard AS, January 2014 25 solid bulk cargoes that may liquefy. - Make swift contact with Gard for Footnotes The agreed amendments to the guidance on specific cargoes/countries 1 See for instance the article IMSBC Code, which seem unlikely so that sampling and independent “Liquefaction of unprocessed mineral to come into effect until 2013 at the testing can be arranged to try and ores - Iron ore fines and nickel ore” in earliest, should serve to strengthen minimise delay. Gard News issue No. 197. the precautions to be taken, notably - Seek to clarify any improper 2 See Gard P&I Member circulars No. by shippers. Ultimately, however, much declarations/certificates with charterers 16/10 (iron ore fines) and No. 23/10 depends on shipper compliance and before the vessel arrives at the load (nickel ore). if there is insufficient confidence in the port. 3 See Gard Loss Prevention Circular No. reliability of shippers’ declarations and - Remember that the master will need 6/11. certificates, owners and their Clubs support/help locally and that this can 4 See Gard Alert of September 2011. will be hesitant to relax their own take time (sometimes days) to arrange. 5 DSC.1/Circ.66 (revised in 2011). precautions. So this is what owners can 6 Gard’s Rule 74 states: “The do, practically speaking: Before loading Association shall not cover liabilities, - Demand the proper IMSBC Code losses, costs or expenses arising out of Know what to expect documentation, including the shipper’s or consequent upon the Ship carrying - Understand the problems and declaration and certificates of moisture contraband, blockade running or being complications, such as those mentioned content and TML/FMP. employed in or on an unlawful, unsafe above. - Check shipper’s documents against or unduly hazardous trade or voyage”. - Chartering and operations the provisions of IMSBC Code. 7 In respect of for liabilities, costs and departments and most importantly - Do not accept for loading any cargo or expenses arising out of carrying unsafe ships’ crews should be aware of the parts of cargo until it has been properly cargo or out of non-compliance with dangers and precautions. tested and documented as safe to carry the IMSBC Code. - If they are not satisfied the cargo in accordance with the IMSBC Code. 8 Unless an independent expert is safe to carry, owners should - Support the master’s overriding customarily advising the Club/IG can be ultimately prepared to sail authority under SOLAS not to load confirm that the shipper’s documents without cargo and to deal with the cargo or to stop the loading of the are in accordance with the IMSBC the consequences (safer than the cargo if he has any concerns that the Code and acceptable based on alternative). condition of the cargo might affect the representative samples and proper safety of the ship. analysis from a competent laboratory. Pre-fixture/order 9 Section 2.1 of Appendix 3. - If the vessel is on time charter, check Conclusion whether the cargo is permitted under Inaccurate declarations and certificates the charterparty. Consider excluding from shippers appear to be at Any comments on this article can be it given the time/trouble/costs/risks the heart of the problem with the e-mailed to the Gard News Editorial involved. transport of cargoes liable to liquefy, Team. - If owners are prepared to carry these though it is recognised there are cargoes (in accordance with the IMSBC numerous complications. Whilst factors Code) discuss the owners’ expectations causing liquefaction may not be fully with the charterer well in advance. understood, the IMSBC Code adopts - Try to incorporate into the contract the a cautious approach, which is wholly charterparty clause recommended by appropriate, given the potentially the International Group of P&I Clubs. disastrous consequences. Until such - Do not accept any charterparty clauses time as the risks of liquefaction in a that may compromise the IMSBC Code given cargo can be identified with or prevent owners’ appointment of more certainty, the role of authorities certain surveyors/experts. in the ports of loading is vital to ensure that shippers comply with the IMSBC At fixture/order Code. If they do not, owners and their - Demand proper declaration of the P&I Clubs will have no option but to cargo and its Bulk Cargo Shipping continue to take their own precautions. Name. Owners who choose to run risks, - Consult the IMSBC Code. calculated or otherwise, may have to face the consequences on their own.

Loss Prevention Circular Cargo liquefaction No. 06-11 problems – sinter feed from Brazil

Several Members have reported for loading. Cargo should never be and, if the cargo is not excluded, to try problems with sinter feed cargoes accepted on the basis of the ‘can’ test and incorporate provisions that pass on loaded in Brazil. The ports of Ponta da alone. The test may indicate if the responsibility to charterers. If a Member Madeira and Santana have featured cargo is unfit for shipment but cannot does fix to carry sinter feed they are most prominently thus far. determine if a cargo is fit to be loaded advised to refer to the precautions set – this can only be determined by out in International Group Circular No. Sinter feed and liquefaction laboratory testing. Given an apparent 16/2010. Sinter feed is an iron concentrate lack of reliable testing facilities in containing fine particles and moisture Brazil, expert advice has recently Footnotes and, being similar to iron ore fines, is seen samples sent as far as the UK for 1 Gard News 197 Feb/Apr 2010 at risk of liquefaction, resulting in cargo testing, which can obviously result in “Liquefaction of unprocessed mineral shift and loss of stability. Liquefaction serious delays. It is worth emphasising ores - Iron ore fines and nickel ores”. is believed to have resulted in here the importance of avoiding the 2 See Gard Member Circulars Nos. numerous casualties, causing the loss loading of cargo and parts of the cargo 16/2010 and 23/2010. of many seafarers’ lives. This year two which have not been properly tested 3 Described in section 8 of the IMSBC International Group Member Circulars and documented as safe to carry in Code as a spot check a Master can have been issued, alerting Members accordance with the Code as it can be conduct if he is suspicious of the to the dangers of liquefaction and the difficult to discharge cargo once it is condition of the cargo precautions to be taken, specifically loaded, not to mention the practical with reference to iron ore fines and difficulty of identifying “unsafe” parts nickel ore. of the cargo that may have to be discharged. Problems The Association is aware of at least one Survey costs and P&I cover case where shippers have declared The primary purpose of surveys in sinter feed as a Group C cargo (not respect of cargoes such as sinter feed, liable to liquefy) under the IMSBC iron ore fines and nickel ore, is to Code. This is in clear contravention of confirm safe carriage. For that reason, the Code since sinter feed is classed as the Club does not cover the survey a Group A cargo (under the group entry costs and neither are they considered “Mineral concentrates”) which may a measure to avert or minimise loss, liquefy if shipped at a moisture content since if Members act in accordance with in excess of its Transportable Moisture the Code and satisfy themselves as to Limit (“TML”), and defined in the Code safe carriage there should no undue as 90% of the Flow Moisture Point, exposure under the P&I cover. The (“FMP”). There are also reports of lack survey costs may, however, be covered of local survey capacity, with surveyors in full or part if the survey is actively reportedly acting for shippers as well as used in defence of a P&I claim. shipowners – a clear conflict of interest, a lack of reliable testing facilities able to The Club will assist Members faced test for the FMP in accordance with the with these problem cargoes as best we methods set out in the Code. Shippers can. However, it is important to point are also presenting cargo to load from out that, if a Member fails to comply stockpiles that have not been sampled/ with the Code they may be prejudice analysed. Club cover. Rule 74 of Gard’s Rules excludes cover for liabilities, costs and Problems are exacerbated by heavy expenses arising from an unsafe or rainfall increasing the moisture content unduly hazardous trade or voyage. The of the cargo. As described in the above carriage of these cargoes may give rise circulars, the ‘can’ test is not meant to various claims for which Defence to replace or supersede laboratory cover may be available, including survey testing which is the responsibility costs in connection with such claims of the Shippers. Section 8 of the which have been incurred with the prior Code states that if the sample shows approval of the Club. signs of liquefaction, i.e. flat surface with evidence of free moisture, Advice and precautions arrangements should be made to have Members should carefully consider the additional laboratory tests conducted potential costs/risks of carrying this on the material before it is accepted cargo before entering into new fixtures

Loss Prevention Circular Liquefaction of cargoes No. 08-10 of iron ore

Background risk of liquefaction is greater during heavy good time to assist them in engaging the Members may be aware of the problems weather, in high seas, and while under full services of a competent and experienced that have arisen in recent times with power, there are no safe sailing conditions surveyor to act on the Member’s behalf to respect to the liquefaction of cargoes for a cargo with unsafe moisture content. assist the master both before and during of iron ore fines originating in India and Liquefaction can occur unpredictably loading operations in order to ensure loaded at Indian ports . However, similar even in relatively calm conditions on a that the cargo is loaded in compliance problems have been experienced in the vessel at anchorage or proceeding at low with SOLAS and that the IMSBC Code is past with similar cargoes elsewhere in speed. adhered to. the world and, as such, these cargoes must always be treated as liable to liquefy Given this unpredictability, it is of utmost Freight disputes regardless of their origin. importance that the length of voyage Although not directly connected with the and prevalent and forecasted weather safe transport of iron ore fines from India, Liquefaction of mineral ores, resulting conditions do not serve to encourage this seems like an opportune time to in cargo shift and loss of stability, has the carriage on ships of cargoes prone highlight this issue. been a cause of some major marine to liquefaction with a Transportable casualties for many decades. However, Moisture Limit in excess of that which We understand that some Chinese ports a spate of incidents leading to several is accepted as safe for carriage. It is for do not allow the discharge of low grade losses in recent times involving iron ore these reasons that SOLAS and the IMSBC iron ore without an import permit. This fines loaded in Indian ports has lead Code incorporate provisions intended to can cause considerable delay of vessels to considerable focus on the lack of ensure that only cargoes with sufficiently and disputes concerning, e.g. freight, compliance with the requirements for safe low inherent moisture content to avoid demurrage or deadfreight may arise in carriage of this cargo . There have also liquefaction are loaded. Strict adherence relation to iron ore from India. been incidents involving cargoes of nickel to these provisions is the only safe way of ore from Indonesia, the Philippines and carrying these types of cargoes. We understand that “China Chamber New Caledonia. of Commerce of Metals Minerals and Preventive measures Chemicals Importers and Exporters” The Southwest Monsoon generally Based on previous experiences with and “China Iron & Steel Association” prevails from June to September and respect to cargoes of iron ore fines notified their members in April of this mainly affects India’s west coast. The loaded from India, Members are advised year to stop importing iron ore with an Northeast Monsoon generally prevails to exercise extreme caution when loading Iron (Fe) content below 60%. This has from December to March and mainly such cargo on their vessels. It is important made it difficult to obtain import permits affects India’s east coast. The advent of that cargoes of iron ore fines unsuitable from the government through these two the Southwest Monsoon gives us good for shipment are identified and rejected Associations. reason to revisit this subject through this before coming onboard the vessel and circular. proper measures are taken to ensure that It is therefore recommended that before the cargo loaded on board complies with transporting Indian iron ore or iron ore Main causes of casualties SOLAS and meets the requirements of with less than 60% Fe content from other The main cause of the casualties and the IMSBC Code. Additional sampling countries into China, shipowners should near misses appears to be the poor will be required if the cargo is subject to check with the Charters/ compliance of some shippers with the sources of moisture during loading. Shippers/Cargo Receivers if the Chinese testing and certification requirements buyers have obtained the import permit that are required under SOLAS and the Although the IMSBC Code places the so as to avoid unnecessary disputes over IMSBC Code 2009 and designed to burden of certification on the shipper, in freight, demurrage and detention of ensure that cargoes are loaded only if many cases the information contained vessels. Similar caution should also be the moisture content is sufficiently low to in the certificates may be incorrect. exercised with respect to spot cargoes of avoid liquefaction occurring during the This may be due to failure to correctly low grade iron ore into China. voyage. Indian iron ore fines tend to be analyse the samples, or use of facilities left in the open prior to shipment, and not geared to properly test the samples, See Gard Loss Prevention Circular No. as a consequence, are entirely subject to or the test samples not being properly 10-07: Loading of iron ore fines in India. weather conditions during this period. representative of the cargo to be loaded. Liquefaction of cargoes of Iron ore The problems related to wet cargo and It is thus extremely important that the ship has also been addressed in Gard News its moisture content particularly worsen owner and master ascertain that the cargo 197 (Feb/April 2010) “Liquefaction of during the wet monsoon seasons. is suitable for sea transport. unprocessed mineral ores – Iron ore fines and nickel ore”, by Dr. Martin In cargoes loaded with a moisture Although exposure to moisture is Jonas, Brookes Bell, Liverpool. The content in excess of the Flow Moisture heightened during the monsoon article describes the SOLAS/IMSBC Point (FMP), liquefaction may occur seasons, ship owners should ensure that Code Regulations, Certification of TML unpredictably at any time during the the same level of caution is exercised / moisture content and principles of voyage. Some cargoes have liquefied and with respect to the loading of iron liquefaction. caused catastrophic cargo shift almost ore fines irrespective of the time of We are grateful to “Hai Tong and immediately on departure from the load the year. The Association strongly Partners” of Beijing, China for providing port, some only after several weeks of recommends Members to contact the the information with respect to the apparently uneventful sailing. While the local correspondent or the Association in Freight disputes.

International Group Member India - Safe Shipment Circular No. 16/2010 of Iron Ore Fines from Indian Ports

Introduction requirements including those under the not be commenced until the master As Members may be aware in 2009 two Code, relating to the loading, stowing, or the ship’s representative is in ships, the ‘Asian Forest’ and the ‘Black carriage and discharge of iron ore lumps possession of all requisite cargo Rose’, capsized and sank following and fines cargoes loaded at Indian ports information in writing as described liquefaction of iron ore fines cargoes are fully complied with. above. The master has an overriding which they had loaded in the Indian ports authority under SOLAS not to load of Mangalore and Paradip. There have International Maritime Solid Bulk the cargo or to stop the loading of been other incidents of liquefaction, Cargoes Code (IMSBC Code) the cargo if he has any concerns that particularly when loaded during or after The Code is issued under SOLAS 1974 the condition of the cargo might the Indian monsoon season, resulting and its Protocols, which have been affect the safety of the ship. in ships becoming unstable and being incorporated into the Indian Merchant forced to seek refuge. In other cases Shipping Act 1958 (as amended). The (B) Shipper’s Obligations cargoes loaded have been found to Code sets out the internationally agreed (1) Cargo Information have moisture content in excess of the provisions for the safe stowage and The shipper must provide the Transportable Moisture Limit (TML) prior shipment of solid bulk cargoes, including master or his representative in to the vessel’s departure and the ships cargoes that may liquefy, such as iron writing with all information and in question have been prevented from ore fines. Those cargoes not specifically documentation required under sailing by the local port authorities until listed are covered by Section 1.3 of the Code in sufficient time before the situation has been rectified leading the Code. It is currently advisory but loading to ensure that the cargo to substantial delays. becomes mandatory internationally on can be safely loaded onto, carried 1 January 2011. However in India it is and discharged from the ship The Indian Government through the already mandatory by virtue of M Notice (section 4.2.1). Ministry of Shipping, Directorate General No 9. of Shipping (DGS) conducted enquiries (2) Documentation into the sinking of the ships and Regulation VI/2, SOLAS 1974 requires The documentation must include: established a Committee to look into the shipper to provide the master or (a) a certificate/declaration the safe loading and carriage of iron ore his representative with all relevant certifying the moisture content lumps and fines from Indian ports. The information relating to the cargo of the cargo loaded in each of DGS has issued a number of Merchant sufficiently in advance of loading to the ship’s holds together with Shipping Notices, the latest of which is M enable precautions which may be a statement that to the best Notice No. 9 of 2010, dated 27th August necessary for the proper stowage and of the shipper’s knowledge 2010. The Group is in dialogue with the safe carriage of the cargo to be put into the moisture content is the DGS on a number of issues arising from effect. average moisture content of the M Notices and how they relate to the cargo. the International Maritime Solid Bulk Section 4 of the IMSBC Code sets out Cargoes Code (the Code). M Notice No. the obligations and responsibilities (b) a certificate certifying the TML 9 is being made law in India as part of imposed on the shipper for providing of the cargo together with the the new Carriage of Goods Regulations. information about the cargo. FMP test result prepared by a competent laboratory. The Indian Government also submitted Most importantly for cargoes that may a report to the 87th session of the IMO liquefy (Group A cargoes), certificates The Code requires that the interval Maritime Safety Committee (MSC) in should be provided evidencing the between testing for the Flow Moisture May 2010 reporting on the findings of its moisture content of the cargo at the Point (FMP) and loading be no more than investigation into the two casualties and time of shipment and the transportable six months for regular materials unless the actions that the Indian authorities moisture limit (TML). The TML is defined the production process is changed in had taken following the casualties in the Code as 90% of the Flow Moisture any way and the interval between testing together with various recommendations Point (FMP). The FMP can only be for the moisture content and loading relating to the carriage of iron ore determined by laboratory analysis of shall never be more than seven days. fines. The report was considered by the cargo samples. Any cargo with moisture However with irregular materials such 15th session of the Sub-Committee on content in excess of the TML should as iron ore fines every shipment should Dangerous Goods, Solid Cargoes and not be accepted for loading (unless on be checked. Masters should be wary of Containers (DSC) in September 2010. specially constructed or fitted ships). Iron moisture content certificates provided The DSC issued a Circular DSC.1/Circ 63 Ore fines does not have its own schedule by the shipper’s laboratory and moisture which sets out a number of conclusions in the Code but should be regarded as content percentages that are very close and recommendations relating to the being a Group A cargo. to the TML. If there is significant rain carriage of iron ore fines. between the time of testing and the time (A) Master’s Obligations of loading the shipper must conduct test In view of the incidents referred to The master or his representative checks (section 4.5.2) to ensure that the it is most important that Members should monitor the loading operation moisture content of the cargo is still less ensure that all local and international from start to finish. Loading should than its TML.

© Gard AS, January 2014 29 (3) Laboratories surveyor by the ship is not intended to cargo should never be accepted on the The shipper must identify the laboratory and does not relieve the shipper of his basis of the ‘can’ test alone. The test may used to conduct the tests on the obligations under the Code or local indicate if cargo is unfit for shipment but cargo samples. It is recommended regulations. cannot determine if a cargo is fit to be that masters check with the local loaded – this can only be determined by correspondents/appointed surveyors to The terms of the surveyor’s appointment laboratory testing. ensure that the laboratory is reputable should include the following: and competent. The number of such 3. If the master or his appointed surveyor laboratories in India is currently very (a) To assist the master with compliance is presented with any document seeking limited. with his obligations under the Code and their confirmation that the cargo is safe local regulations. to carry they should refuse to sign it. (4) Stockpiles (b) To contact and liaise with shippers The obligation under the Code is on the The shipper must identify the stock piles to identify the stockpiles from which the shipper to declare that the cargo is safe from which the cargo is to be loaded cargoes are to be shipped on the subject to carry and signing such a document and confirm in writing that the samples vessel and to ensure that representative could prejudice a Member’s rights of tested and in respect of which certificates samples are correctly taken in recourse against a shipper in the event of have been issued/declarations made accordance with sections 4.4 and 4.6 of a subsequent casualty. originated from those stock piles. the Code. (c) To take owners’ own representative 4. Report any commercial pressure to the (5) Barges samples for testing in an independent Association so that this may be taken up Where barges are used to transport competent laboratory. by the Group with the DGS. cargo to the ship they must be capable (d) To liaise with an independent expert of being individually identified by the to ensure that the laboratory conducts its 5. Members should consider how they master/ship/ appointed surveyor. tests in accordance with Appendix 2 of might protect themselves contractually the Code. before agreeing to carry iron ore fines Problems encountered with the shipment (e) To compare the shipper’s certificates cargoes, e.g. including an appropriate of iron ore fines from India with owners’ own test results for TML clause in any charterparty. Equally and moisture content. Masters should Members should not be pressurised into It is understood that Members have be wary of moisture content certificates entering into charterparties which restrict encountered a number of problems with provided by the shipper’s laboratory their right to fully apply the provisions shipments of iron ore fines from India, and moisture content percentages of the Code, appoint independent including:- that are very close to the TML. If there surveyors of their choice or take and test is significant rain between the time of cargo samples. • Cargoes being mis-described to avoid testing and the time of loading the application of the Code shipper must conduct test checks. 6. Members should refer to the Club any • Iron ore fines not being declared as (f) To monitor the loading operation from contractual and/or safe carriage concerns Group A cargo start to finish, paying particular attention it may have relating to the iron ore lumps • Certificates and declarations not to the weather conditions and the and fines loaded in India being provided presence of any moist cargo, particularly • Inaccurate moisture content and TML in barges. Consequences of a Member’s failure to certificates, resulting in unsafe cargo (g) To stop loading if further moisture comply with the Code being presented for shipment and/or can tests are conducted, as • Commercial pressure on masters necessary, on any parts of the cargo The risks of loss of life, damage to the not to delay shipment and to carry presented for shipment (sections 4.5.2 environment and loss of property are cargoes without the provision of and 8.4 of the Code). only too apparent, but if a Member fails accurate certificates (h) To monitor the stockpiles and/ to comply with the Code and/or local • Restrictive clauses in charterparties or barges to ensure that the cargo regulations they should also be aware • Cargo not being stock piled but presented for shipment is from the that they might be prejudicing Club delivered straight from the mine designated and tested stockpiles and/or cover. All of the Group Clubs have similar • Only one certificate being provided barges. This will involve keeping a careful Rules which in essence exclude cover when there is more than one distinct tally and identification of barges offered for liabilities, costs and expenses arising source of cargo for loading. from unsafe or unduly hazardous trades • Moisture content certification being (i) To ensure loading is suspended during or voyages. over seven days old periods of rain. (j) To carefully examine cargo offered All Clubs in the International Group of Recommended precautions for loading from uncovered barges and P& I Clubs have issued a similar Circular. 1. Loading should not be commenced if in any doubt of the moisture content until the master is in possession of conduct ‘can’ tests particularly when Any questions with regard to the above all requisite cargo information and rain has been experienced. The ‘can’ may be addressed to Nick Platt or Mark documentation/certificates that a shipper test is described in section 8 of the Russell in Gard (UK) Limited (Tel: +44 (0) is obliged to provide under the Code or IMSBC Code as a spot check a Master 20 7444 7200). local regulations and is satisfied that the can conduct if he is suspicious of the cargo is safe to load and carry. condition of the cargo, and is not meant Yours faithfully, to replace or supersede laboratory GARD AS 2. Following consultation with the testing which is the responsibility of Association, appoint a surveyor on behalf the Shippers. Section 8 states that if of the ship in advance of loading to the sample shows signs of liquefaction assist the master. It may in any event be - i.e. flat surface with evidence of free a local requirement to do so. However, moisture, arrangements should be it should be made clear to the port and made to have additional laboratory competent authorities, shippers and tests conducted on the material before Claes Isacson charterers that the appointment of a it is accepted for loading. Nevertheless Chief Executive Officer

International Group Member Indonesia and the Circular No. 23/2010 Philippines – Safe Carriage of Nickel Ore Cargoes

Introduction reports without having been permitted cargo samples. Such audits as it has As members may be aware in October the opportunity of independently been possible to carry out of mines and November 2010 three vessels the verifying such declarations and reports. equipment and testing and sampling ‘Jian Fu Star’, ‘Nasco Diamond’ and The Marshall Islands supported procedures suggest not. Accordingly ‘Hong Wei’ sank during the carriage Intercargo’s intervention and the Indian the reliability of the information and of nickel ore from Indonesia to China delegation outlined the actions that documentation which the shipper with the loss of forty four seafarers. the Indian authorities were taking to is required to provide under the The cause of the sinkings has not improve the safe carriage of iron ore Code which became mandatory yet been definitively determined fines cargoes loaded in India. internationally on 1/1/11, most notably but nickel ore, like iron ore fines and the Transportable Moisture Limit (TML) many concentrates, is a cargo which Specific Concerns Associated with the certificate and the Flow Moisture Point may liquefy, if the moisture content of Loading and Carriage of Nickel Ore (FMP), is questionable. the cargo exceeds the Transportable Moisture Limit (TML) when loaded. The loading and carriage of nickel ore (e) The composition and physical Liquefaction of such a cargo can result cargoes from both Indonesia and the properties of nickel ore vary in loss of stability which in turn can lead Philippines has given rise to the specific considerably from location to location. to a vessel capsizing. It is therefore very concerns set out below. Since the cargo is not homogenous possible that all three vessels were lost it is difficult to accurately determine as a result of cargo liquefaction. (a) Most mines are situated in remote the TML and moisture content of the locations and loading/port facilities cargo as a whole. Frequently shippers There have been a number of other are therefore non-existent or very will only provide one TML certificate recent reports of cargoes of nickel limited and loading equipment and for a cargo that has been drawn from a ore loaded in both Indonesia and the methods rudimentary. Cargo is stock- number of different sources and is not Philippines liquefying and causing loss piled, uncovered, on the beach and homogenous, which is contrary to the of stability to the carrying vessel but accordingly totally exposed to the Code. fortunately not resulting in the loss of prevailing weather conditions. the vessel. In one such case the carrying (f) Nickel laterite has high clay content. vessel grounded causing extensive (b) The traditional practice has been Because of this, testing the FMP of hull damage. Currently nickel ore is to ship nickel ore cargoes in the dry a sample using the usual flow table only loaded in four locations in the season, between February and May/ method can be subjective and the Philippines, Santa Cruz (Luzon), Surigao June when rainfall in past years was results questionable. If the flow table and Tubay (Mindanao) and Rio Tuba negligible. However in recent years method of testing is not suitable, (Palawan Island). anecdotal evidence suggests that the section 1.1.1 of the Code provides that distinct demarcation between the wet the procedures to be adopted should Liquefaction of some ore cargoes can and dry seasons has been substantially be those approved by the relevant be caused by the normal incidents of eroded and heavy rainfall is now authority of the Port State. a sea voyage, for example the motion experienced during the dry season. The of the ship in the seaway or vibrations stock-piles do not therefore benefit to (g) Vessels are invariably loaded whilst caused by the running of the main the same extent from solar-drying as in at anchor from barges or landing engine or other on-board machinery. the past. craft which have themselves been loaded from stockpiles situated on The International Group informally (c) The mines are not easily accessible the beach. The stock-piled cargo may raised its concerns about the loading due to their remoteness and it is well have been subject to rainfall after and carriage of nickel ore from therefore difficult for independent samples have been taken and tested, Indonesia and the Philippines, with the surveyors/experts acting for the vessel during transportation from the mine Indonesian and Philippine delegations to attend the mines and take samples to the beach and while stockpiled on that attended the 88th session of of the cargo to be loaded. the beach. The Code requires that the IMO Maritime Safety Committee the interval between testing for the (MSC) which was held between 24 (d) There are few, if any, independent moisture content and loading shall November and 3 December 2010. laboratories in Indonesia and the never be more than seven days but Intercargo made an intervention at Philippines. The mines generally have in many instances this period is not that session expressing its concerns their own laboratories but it is often observed. with respect to the hazards and risks not possible to determine whether associated with the carriage of cargoes the correct testing equipment is (h) There have been a number of that can liquefy such as nickel ore. In available and in a satisfactory condition reports of surveyors appointed on addition Intercargo pointed out that or whether they are following the behalf of vessel interests to take cargo some charterers and masters had been procedures laid down under the samples and conduct independent put under extreme pressure to accept International Maritime Solid Bulk testing, being subject to extreme shippers’ declarations and testing Cargoes Code (the Code) when testing pressure by shippers to accept the

© Gard AS, January 2014 31 results of the tests carried out by time before loading, to ensure that master/ship/appointed surveyor. the mines. In certain instances the the cargo can be safely loaded onto, ‘pressure’ has been nothing short of carried and discharged from the ship Recommended precautions physical intimidation. (section 4.2.1). 1. Loading should not be commenced until the master is in possession of International Maritime Solid Bulk (2) Documentation all requisite cargo information and Cargoes Code (IMSBC Code) The documentation must include: documentation/certificates that a The Code is issued under SOLAS 1974 shipper is obliged to provide under the and its Protocols. The Code sets out (a) A certificate/declaration certifying Code or local regulations (where not in the internationally agreed provisions the moisture content of the cargo to be conflict with the Code) and is satisfied for the safe stowage and shipment of loaded together with a statement that that the cargo is safe to load and carry. solid bulk cargoes, including cargoes to the best of the shipper’s knowledge that may liquefy, such as nickel ore. the moisture content is the average 2. Considering the recent casualties Those cargoes not specifically listed are moisture content of the cargo. Where mentioned above, members are covered by Section 1.3 of the Code. It a cargo is to be loaded into more than encouraged to consider reviewing became mandatory internationally on 1 one cargo space, the certificate or with the Managers steps that might be January 2011. declaration of moisture content shall considered to reduce the risk presented certify each type of material loaded into by this cargo before loading and in Regulation VI/2, SOLAS 1974 requires each space, unless, following proper any case, if the master is in any doubt the shipper to provide the master or sampling and testing it is apparent as regards the suitability of the cargo his representative with all relevant that the different types are uniform for loading, very serious consideration information relating to the cargo throughout the whole consignment. should be given to the appointment sufficiently in advance of loading to of a surveyor on behalf of the ship in enable precautions which may be (b) A certificate certifying the TML advance of loading to assist the master. necessary for the proper stowage and of the cargo together with the FMP However, it should be made clear to safe carriage of the cargo to be put into test result prepared by a competent the competent authority (which, in the effect. laboratory. The Code requires that the Philippines, is likely to be the Bureau of interval between testing for the Flow Mines), shippers and charterers that the Section 4 of the IMSBC Code sets out Moisture Point (FMP) and loading be appointment of a surveyor by the ship the obligations and responsibilities no more than 6 months for regular is not intended to and does not relieve imposed on the shipper for providing materials unless the production the shipper of his obligations under the information about the cargo. process is changed in any way and Code or local regulations (when not in the interval between testing for the conflict with the Code). Most importantly for cargoes that may moisture content and loading shall liquefy (Group A cargoes), certificates never be more than 7 days. However The terms of the surveyor’s should be provided evidencing the with irregular materials such as nickel appointment should include the moisture content of the cargo at the ore every shipment should be checked. following: time of shipment and the transportable Masters should be wary of moisture moisture limit (TML). The TML is content certificates provided by the (a) To assist the master with compliance defined in the Code as 90% of the Flow shipper’s laboratory and moisture with his obligations under the Code Moisture Point (FMP). The FMP can only content percentages that are very and local regulations (when not in be determined by laboratory analysis close to the TML. If there is significant conflict with the Code). of cargo samples. Any cargo with a rain between the time of testing and moisture content in excess of the TML the time of loading the shipper must (b) To contact and liaise with shippers should not be accepted for loading conduct test checks (section 4.5.2) to to identify the stockpiles from which (unless on specially constructed or fitted ensure that the moisture content of the the cargoes are to be shipped on ships). Nickel Ore does not have its own cargo is still less than its TML. the subject vessel and to ensure that schedule in the Code but should be representative samples are correctly regarded as being a Group A cargo. (3) Laboratories taken in accordance with sections 4.4 The shipper must identify the laboratory and 4.6 of the Code. (A) Master’s Obligations used to conduct the tests on the cargo The master or his representative should samples. However as stated above little (c) To take owners’ own representative monitor the loading operation from reliance can be placed on the results of samples for testing in an independent start to finish. Loading should not be testing conducted by mine laboratories competent laboratory which are likely commenced until the master or the and samples should be the subject of to be located outside the country. ship’s representative is in possession of independent testing by surveyors and all requisite cargo information in writing experts appointed on behalf of the (d) To liaise with an independent expert as described above. vessel. to ensure that the laboratory conducts its tests in accordance with Appendix 2 The master has an overriding authority (4) Stockpiles of the Code. under SOLAS not to load the cargo or The shipper must identify the stock to stop the loading of the cargo if he piles from which the cargo is to be (e) To compare the shipper’s certificates has any concerns that the condition of loaded and confirm in writing that with owners’ own test results for TML the cargo might affect the safety of the the samples tested and in respect of and moisture content. Masters should ship. which certificates have been issued/ be wary of moisture content certificates declarations made originated from provided by the mines laboratories (B) Shipper’s Obligations those stock piles. and moisture content percentages (1) Cargo Information that are very close to the TML. If there The shipper must provide the master (5) Barges is significant rain between the time of or his representative in writing with Where barges are used to transport testing and the time of loading the all information and documentation cargo to the ship they must be capable shipper must conduct test checks. required under the Code in sufficient of being individually identified by the

© Gard AS, January 2014 32 (f) To monitor the loading operation cargo should never be accepted on 6. Members should refer to the Club from start to finish, paying particular the basis of the ‘can’ test alone as it any contractual and/or safe carriage attention to the weather conditions and is difficult to accurately interpret the concerns it may have relating to nickel the presence of any moist cargo in the behaviour of the sample in the can ore cargoes loaded in Indonesia or the barges/ landing craft. and accordingly its moisture content. Philippines The test may indicate if cargo is unfit (g) To stop loading if further moisture for shipment but cannot determine if a Consequences of a Member’s failure to and/or can tests are conducted, as cargo is fit to be loaded – this can only comply with the Code necessary, on any parts of the cargo be determined by laboratory testing. presented for shipment (sections 4.5.2 The risks of loss of life, damage to the and 8.4 of the Code). 3. If the master or his appointed environment and loss of property are surveyor is presented with any only too apparent, but if a Member (h) To monitor the stockpiles and/ document seeking their confirmation fails to comply with the Code or local or barges to ensure that the cargo that the cargo is safe to carry they regulations when not in conflict with the presented for shipment is from the should refuse to sign it. The obligation Code, they should also be aware that designated and tested stockpiles and/ under the Code is on the shipper to they might be prejudicing Club cover. or barges. This will involve keeping declare that the cargo is safe to carry All of the Group Clubs have similar a careful tally and identification of and signing such a document could Rules which in essence exclude cover barges/landing craft offered for loading. prejudice a Member’s rights of recourse for liabilities, costs and expenses arising against a shipper in the event of a from unsafe or unduly hazardous trades (i) To ensure loading is suspended subsequent casualty. or voyages. during periods of rain. 4. Report any instance of commercial All Clubs in the International Group (j) To carefully examine cargo offered pressure exerted on or intimidation of have issued a similar Circular. for loading from barges/landing craft the master, surveyor or experts to the and if in any doubt of the moisture Association so that this may be taken Any questions with regard to the above content, conduct ‘can’ tests particularly up by the Group with the Indonesian/ may be addressed to Nick Platt or Mark when rain has been experienced. The Philippine authorities. Russell in Gard (UK) Limited (Tel: +44 (0) ‘can’ test is described in section 8 of the 20 7444 7200 or Geir Kjebekk in Gard IMSBC Code as a spot check a Master 5. Members should consider how they AS, Arendal can conduct if he is suspicious of the might protect themselves contractually (Tel: +47 37 01 91 00). condition of the cargo, and is not meant before agreeing to carry nickel ore to replace or supersede laboratory cargoes e.g. including an appropriate Yours faithfully, testing which is the responsibility of clause in any charterparty. Equally GARD AS the Shippers. Section 8 states that if Members should not be pressurised the sample shows signs of liquefaction into entering into charterparties - i.e. flat surface with evidence of free which restrict their right to fully apply moisture, arrangements should be the provisions of the Code, appoint made to have additional laboratory independent surveyors of their choice tests conducted on the material before or take and test cargo samples. Claes Isacson it is accepted for loading. Nevertheless Chief Executive Officer

International Group Member Dangers of carrying Nickel Circular No. 5/2012 Ore from Indonesia and the Philippines – Mandatory Notification Requirements

Background carriage of nickel ore cargoes from fail to notify the Managers that they This circular should be read in ports in Indonesia and the Philippines, plan to fix or charter a ship, or that a conjunction with the previous circular Members who plan to fix or charter ship has been ordered, to load nickel 23/2010: Indonesia and the Philippines a ship to load nickel ore from ports ore from a port in Indonesia or the – Safe Carriage of Nickel Ore Cargoes in Indonesia and the Philippines, or Philippines. dated January 2011 relating to the where under an existing fixture a ship safe carriage of nickel ore cargoes is ordered to load such cargo, must Conclusion and nothing in this circular supersedes contact the Managers at the earliest The objective of this notification the previous advice. The liquefaction opportunity and, where possible, procedure is to try and ensure Members of such cargoes has resulted in the provide the following information:- engaged in or contemplating the sinking of a number of ships with a loss carriage of nickel ore are made aware of many lives in the last 18 months. • Ship name of the dangers, the IMSBC Code Nickel ore is a cargo which may liquefy • Port/anchorage of loading and requirements, Club cover implications if the moisture content of the material estimated time of arrival and also provided with information on exceeds its Transportable Moisture • Date of intended loading measures available to mitigate these Limit (TML). Cargo liquefaction may • Charterer/shipper’s details risks, even if they cannot be entirely lead to a loss of stability, to the extent • Agent’s details excluded. that the ship may capsize. • Copy of the shipper’s cargo declaration and supporting All Clubs in the International Group Due to the numerous dangers and certificates. have issued similar circulars. difficulties associated with this particular cargo, the International Group is This will enable the Managers to Any questions with regard to the above actively involved with other industry provide Members with relevant may be addressed to Nick Platt or Mark bodies in discussions currently taking information on measures that might Russell in Gard (UK) Limited (Tel: +44 place within the International Maritime be taken to reduce the risk, as set out (0)20 7444 7200). Organisation (IMO) to determine if in the previous circular, such as the and how the International Maritime appointment of a local surveyor to Solid Bulk Cargoes (IMSBC) Code assist the Master, and the appointment Yours faithfully, can be amended to improve the of an expert, not necessarily to attend GARD AS safe carriage of nickel ore cargoes. in person, but to liaise and supervise Representatives from the International the local surveyor throughout. These Group also recently met with the measures may reduce the risks inherent Indonesian Administration in Jakarta, in the carriage of nickel ore cargoes but as part of an industry delegation, to are not a guarantee of safety. discuss industry concerns with regard Claes Isacson to the safe carriage of such cargoes If the Master is in any doubt whatsoever Chief Executive Officer from Indonesia. The issues discussed as regards the suitability and safety included the duty of a competent of the cargo then loading should be authority to oversee compliance by stopped. The Member should contact shippers of their obligations under the Managers immediately. Problems the Code in respect of reliable testing are likely to arise if the loading of and accurate certification of the cargo unsafe cargo is permitted. It may, for to be shipped. In the absence of an example, be difficult to discharge the early resolution to these discussions cargo due to the lack of facilities in the and the on-going risks to safety, loading port or complications arising Members considering the carriage from local customs regulations. of nickel ore from ports in Indonesia and the Philippines should note the As experience is gained as a result recommendations contained in this of these mandatory declarations, circular. the Managers aim to be in a better position to identify those areas, ports and shippers which present particular Mandatory Notification difficulties, including inaccurate cargo Requirement declarations. Whilst it remains the Members’ responsibility to ensure full compliance Possible Prejudice to Club Cover with the IMSBC Code and to take any Members should be aware that they measures necessary to ensure the safe may be prejudicing Club cover if they

Gard News 197, The carriage of nickel February/April 2010 ore from the Philippines and Indonesia - The insurance position

Advice should be sought regarding the machinery insurances can be found safety regulation in relation to hull and position under the P&I and hull and in §§ 3-8 to 3-13 of the Norwegian machinery policies, whereby a breach machinery policies before agreeing to Marine Insurance Plan. It seems clear of the Code may affect cover. See carry nickel ore from certain ports. from Brookes Bell’s article that a ship for instance § 3-22 and § 3-25 of the may be invited to load cargo with Norwegian Marine Insurance Plan. The The previous article in this issue of characteristics which have either been circumstances described by Brookes Gard News, by Brookes Bell, identifies misdeclared by the shippers, or which Bell indicate clearly that the insufficient the potential problems and dangers can not be ascertained accurately by and/or inaccurate testing performed by facing a shipowner who is asked to the tests which have, according to the shippers and the resulting inability load a cargo of nickel ore in the ports the shippers, been performed. In on their part to accurately state the and places mentioned in that article. such circumstances, it is likely that characteristics of the cargo as required Any owner who is asked to load such a Gard will take the view that the risk by the BC Code mean that such cargo is recommended to contact Gard being assumed by an owner who, requirements will almost certainly not in relation to either their P&I cover or nevertheless, agrees to load such a have been met. their hull and machinery cover, or both cargo is altered. if both are placed with Gard, for advice as to the position under the relevant Rule 74 of Gard’s P&I Rules (Unlawful insurance policy(s) if it is decided to trades, etc.) may also be relevant load the cargo on offer. insofar as the loading and carriage of misdeclared nickel ore can be Each case will be considered on considered to be an “unlawful, unsafe its own merits, but some general or unduly hazardous trade or voyage”. comments can be made. Firstly, it is essential that a shipowner identifies Furthermore, and although not stated accurately and informs the insurers of explicitly in Gard’s P&I Rules, it is a the nature and characteristics of the condition of cover that any dangerous cargo his ship will be carrying. Rule 7 cargo is carried in full compliance with of Gard’s P&I Rules for Ships deals with the IMO Code of Safe Practice for Solid a situation where the risk is altered. Bulk Cargoes (the BC Code). Similarly, A similar rule concerning hull and the BC Code may be considered as a

Gard Alert, New BIMCO Charterparty July 2012 clause for solid bulk cargoes that may liquefy

We refer to the Gard Alert “IMSBC bulk cargoes that may liquefy. A key Gard recommends that ship owners Code - Charterparty clause for solid feature of the clause is that it requires incorporate this clause into time bulk cargoes that may liquefy” charterers to provide owners with charterparties that allow for the carriage published in September 2011. written evidence from the shippers that of solid bulk cargoes that may liquefy the moisture content of the cargo does and in voyage charterparties fixed In the period following publication not exceed the Transportable Moisture for such cargoes. The new clause is of the above Gard Alert, BIMCO and Limit (TML). The clause also allows the quoted below and replaces the clause the International Group of P&I Clubs owners to take their own test samples previously recommended by Gard. worked together and developed a new of the cargo prior to loading and for the industry charterparty clause for solid master to be able to refuse to accept the cargo (or to sail if already loaded).

Solid Bulk Cargoes that Can Liquefy Clause for Charter Parties

(a) The Charterers shall ensure that all solid bulk cargoes to be carried under this Charter Party are presented for carriage and loaded always in compliance with applicable international regulations, including the International Maritime Solid Bulk Cargoes (IMSBC) Code 2009 (as may be amended from time to time and including any recommendations approved and agreed by the IMO).

(b) If the cargo is a solid bulk cargo that may liquefy, the Charterers shall prior to the commencement of loading provide the ship’s Master, or his representative, with all information and documentation in accordance with the IMSBC Code, including but not limited to a certificate of the Transportable Moisture Limit (TML), and a certificate or declaration of the moisture content, both signed by the shipper.

(c) The Owners shall have the right to take samples of cargo prior to loading and, at Charterers’ request, samples to be taken jointly, testing of such cargo samples shall be conducted jointly between Charterers and Owners by an independent laboratory that is to be nominated by Owners. Sampling and testing shall be at the Charterers’ risk, cost, expense and time. The Master or Owners’ representative shall at all times be permitted unrestricted and unimpeded access to cargo for sampling and testing purposes.

If the Master, in his sole discretion using reasonable judgement, considers there is a risk arising out of or in connection with the cargo (including but not limited to the risk of liquefaction) which could jeopardise the safety of the crew, the Vessel or the cargo on the voyage, he shall have the right to refuse to accept the cargo or, if already loaded, refuse to sail from the loading port or place. The Master shall have the right to require the Charterers to make safe the cargo prior to loading or, if already loaded, to offload the cargo and replace it with a cargo acceptable to the Master, all at the Charterers’ risk, cost, expense and time. The exercise by the Master of the aforesaid rights shall not be a breach of this Charter Party.

(d) Notwithstanding anything else contained in this Charter Party, all loss, damage, delay, expenses, costs and liabilities whatsoever arising out of or related to complying with, or resulting from failure to comply with, such regulations or with Charterers’ obligations hereunder shall be for the Charterers’ account. The Charterers shall indemnify the Owners against any and all claims whatsoever against the Owners arising out of the Owners complying with the Charterers’ instructions to load the agreed cargo.

(e) This Clause shall be without prejudice to the Charterers’ obligations under this Charter Party to provide a safe cargo. In relation to loading, anything done or not done by the Master or the Owners in compliance with this Clause shall not amount to a waiver of any rights of the Owners.

For more information about the new clause please go to www.bimco.org. For a collection of Gard’s previously published information on the topic of cargo liquefaction, please go to the “Cargo Liquefaction Spotlight” found under Preventing Losses on our website.

Gard News 205 IMSBC Code amendments February/April 2012 regarding cargoes that may liquefy

Amendments to the IMSBC Code Editorial and Technical Group meeting 6.35 mm being present. If there is any aiming to improve the safe transport in March 2012. In the meantime, it was doubt regarding whether a material of cargoes that may liquefy have been also agreed, albeit with resistance from is Group A or Group C, it should be agreed by the IMO. industry (specifically those representing submitted for testing for flow properties. ship interests), that the existing DSC Ultimately, the revisions to the circular The article “Cargo liquefaction - An circular concerning iron ore fines would may simply lead to more shippers update”, which appears elsewhere be revised. This circular (DSC.1.Circ/63, trying to avoid declaring iron ore fines in this issue of Gard News, makes dated 7th October 2011) introduces as Group A cargo and to more owners reference to works at the IMO during what can best be described as a seeking expert advice on each cargo. the past year which have culminated in temporary definition of iron ore fines: joint industry papers being submitted a cargo “mainly constituted by iron Nickel Ore to the 16th Session of IMO Sub- bearing minerals with a size up to 6.35 With regard to nickel ore, a draft Committee on Dangerous Goods, mm”. The revised circular also goes on new schedule proposed by France Solid Cargoes and Containers (DSC to provide that “if there is a question categorising this cargo as Group A was 16). The session included a meeting about the applicability of this circular accepted in principle by the Working of a Working Group on Amendments for a specific particle size distribution of Group and will be forwarded to the to the IMSBC Code whose report sets iron ore, advice should be sought from Editorial and Technical Group for out a number of agreed amendments the competent authority of the port of further consideration. to improve the safe transport of loading” and that “the Master should cargoes that may liquefy, including the observe current best practice when Ship design following: handling and carrying this cargo, such It is also worth mentioning that the as the use of specifically designed filters Working Group considered the issue - Clarification that the “competent to protecting the cargo holds bilge of developing alternative requirements authority” shall operate independently covers to stop the ingress of this fine on the prevention of accidents through from the shipper. Amendments to the cargo into the bilge”. ship design. Further consideration IMSBC Code aiming to improve the of this and any stability mitigation safe transport of cargoes that may As mentioned, these revisions met with measures following the occurrence of liquefy have been agreed by the IMO. some resistance from industry, as it was liquefaction were left for consideration felt somewhat premature to be making by other IMO Committees. In July 2011 - A requirement that the moisture revisions to a 2010 circular pending the Italian classification society RINA content and TML (transport moisture the findings of the Correspondence announced that it had “established limit) certificates be issued by an entity Group. Several obvious questions also rigorous design standards for the recognised by the competent authority arise. How is the master supposed to modification or newbuilding of dry of the port of loading. make an appropriate assessment of bulk cargo carriers to enable them to particle size distribution and can the carry fine ores safely at any moisture - A requirement that the shipper has in competent authority be relied on to content.1 It remains to be seen whether place procedures for sampling, testing make the correct assessment? What is the cost of modification of existing and controlling moisture content and a specifically designed bilge filter and ships (estimated at USD 3 million for a for these procedures to be approved by who should approve it? Supramax bulker) will be commercially the competent authority of the port of feasible, as the number of modified loading. It is difficult to answer these questions new builds is unlikely to provide here, but experts advising Gard and the capacity needed to meet world - A requirement that the shipper other IG Clubs take the view that demand for a long time to come. facilitates access to stockpiles for bilge covers can not and do not avoid the purpose of inspection, sampling liquefaction and that particle size is not The agreed amendments to the IMSBC and subsequent testing by the ship’s the issue - the issue is whether or not Code will probably only come into nominated representative. the cargo, or a part of it, may develop a effect in 2013 at the earliest. flow state at a certain moisture content. Iron ore fines Studies have shown that the potential More specifically, the DSC 16 Working to liquefy is principally governed by the Footnotes Group also agreed that an IMO behaviour of the very fine material in a 1 See www.rina.org/en/news/press/_ Correspondence Group should develop cargo (1 mm in size and smaller), and file/attacksnickel_eng.pdf. a new schedule(s) for iron ore fines not the sizing of the larger material. The and to consider test methods. This presence of particles greater than 6.35 Group, which is now functioning with mm in the cargo does not automatically input from industry, including the categorise the cargo as Group C. If it International Group of P&I Clubs (IG) contains a proportion of fine particles and experts customarily advising the IG under 1 mm it may be a Group A cargo, Clubs, will report to the next IMO DSC irrespective of particles greater than

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