Bulk Distributor Jan/Feb20 | Page 2

2 B ULK D ISTRIBUTOR Shipper January/February 2020 Book it right, pack it tight A raft of guidelines – and warnings – about potentially dangerous cargoes were published either side of Christmas and New Year. Insurance mutuals are urging the container shipping industry and participants in the global supply chain it serves to give ever more serious attention to the causes and consequences of ship fires, jointly issuing a guide outlining the responsibilities of all stakeholders in reducing risk. 1 January this year saw mandatory enforcement of the latest version of the IMDG Code, Amendment 39-18. As the incorrect declaration, packing, handling and stowage of dangerous goods of all types is seen as a primary cause of many container ship fires, UK P&I and TT Club have once more collaborated in publishing guidelines under the title ‘Book it Right and Pack it Tight’. The guide provides key insights for all actors in the freight supply chain responsible for preparing unitised consignments for carriage by sea. It gives an overview of the practical duties and responsibilities under the IMDG Code for each stakeholder. Stuart Edmonston, UK P&I’s loss prevention director, stated: “As mutuals, our chief aim is to minimise risk for our members and the industry we serve. The recent spate of container ship fires with the consequent loss of life, damage to ships and cargo, and trade disruption has been a major concern to ourselves and TT Club. UK P&I continues to participate in initiatives that focus on the capability to detect, suppress and extinguish fires at sea. However, we share our sister organisation’s desire to tackle the causes of such fires at source.” TT Club sees its core contribution as seeking significant improvements in cargo declaration and packing. “As so often the case, fires and explosions are merely the ‘tip of the iceberg’ of problems, which are inherent throughout the supply chain,” observed Peregrine Storrs-Fox, TT Club’s risk management director. “There are far too many errors in classification and declaration of commodities to be transported. These are often amplified by poor decisions and practices relating to packaging, packing, segregation and securing. Such errors severely compromise safety in a variety of ways, but most critically when the goods should rightly be described as dangerous in a regulated sense and, here, in compliance with the IMDG Code.” For carriers Uffe Ernst-Frederiksen, head of cargo management at Maersk Line and chairman of the Cargo Incident Notification System (CINS) said he found the publication to be “tremendously useful and if only people would read one book this year that it should be this one.” The recent spate of container ship fires has been a major concern to insurance mutuals Through its ‘Cargo Integrity’ Campaign TT Club has been for some time seeking to enhance awareness of the issues and to urge implementation of more rigorous practices relating to entering cargo into the supply chain. Its support of, and participation in CINS, is one such initiative. CINS comprises representatives of container shipping lines that together control over 85 percent of the world’s container slot capacity. A recent CINS report, which should be seen as complementary to ‘Book it Right and Pack it Tight’, demonstrates substantial effort by the industry to bring understanding to the complexities involved in the ship stowage processes. It seeks to develop a commonality of approach in order to improve safety. Entitled ‘Safety Considerations for Ship Operators Related to Risk-Based Stowage of Dangerous Goods on Containerships’, it underlines the irrefutable fact that proper declaration is a paramount prerequisite. One of the expert companies involved in the preparation of the CINS Risk Based Stowage report was Exis Technologies, whose input was focused around its detailed knowledge of the IMDG Code Dangerous Goods List and stowage requirements. In collaboration other industry experts Exis categorised each commodity on the list by UN Number, placing it in the appropriate ‘risk zone’ as defined by the CINS Stowage guidelines. In order to encourage the use of these guidelines, Exis has gifted the Hazcheck Risk Zone Data online as a free resource to all involved across the container supply chain. Seed cake 17 - 19 March, 2020 De Doelen ICC Rotterdam Europe's Only Chemical Supply Chain Conference Book Online now and get 20% off with our exclusive code: BULK20 www.logichemeurope.com [email protected] More specifically, CINS also published new guidelines on the carriage of seed cake in containers. ‘Seed Cake’ is the term used for pulp, meals, cake, pellets, expellers and other similar cargo, where edible vegetable oils have been removed from oil-bearing seeds, cereals or commodities with similar properties. It is principally used in animal feeds. Oil and moisture in seed cake cargoes can cause self-heating. Microbiological self-heating, driven by the inherent moisture content, can raise the temperature of the cargo to a point where oxidation of the residual oil occurs. While all self-heating is usually initially slow, CINS points out, oxidative self-heating can be much faster than microbiological heating and may raise the temperature high enough for the cargo to ignite spontaneously. The carriage of seed cake cargoes continues to cause confusion and the potential for misdeclaration remains high, CINS maintains. The guidelines, published jointly with the International Group of P&I Clubs, identifies practices intended to improve safety and to ensure that it is declared, packaged and carried properly. www.ukpandi.com www.ttclub.com www.cinsnet.com Modest outlook for container market T he outlook for the container shipping market remains soft despite the welcome boost of the ‘phase one’ trade agreement signed by the US and China, according to Drewry’s latest Container Forecaster report. Drewry is now predicting that world container port throughput will increase by 3.3 percent in 2020, following an estimated 2.3 percent rise last year. The current year forecast represents a downgrade of 0.7 points on the previous outlook given at the end of September 2019. “A swift and amicable end to the US-China trade dispute has the potential to give the global economy a boost,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster. “However, that outcome is still only a tantalising possibility and much more work is needed to be done to secure a more permanent trading arrangement between two countries that have a number of seemingly intractable differences to resolve. “It’s a step in the right direction that removes one layer of uncertainty, but as with previous truces the foundations are flimsy and there is still a reasonably high chance that hostilities will be resumed,” he added. The report also highlights the risk of further protectionist policies on the container market.