DEAD FREIGHT CLAIMS .docx

Dead freight claimed by claimed by vessel not honored by charterer charterers sbulk carrier guide

In a recent case study it is found dead freight claimed by vessel not honored by charterers. Charterers not put on notice for poor stowage and not providing vessel with full cargo Urea in bulk. What went wrong?: The shippers were unable to provide vessel

with full cargo. The vessel had indicated the full capacity in the NOR as per stowage factors advised by the shipper. On completion of loading Urea in bulk it was ascertained that one hatch had still some space left to load. The complete cargo as per NOR was also not provided. The vessel then notified agents and issued a dead freight claim, but due to paucity of time and last minute departure arrangements the vessel only managed to get the agents to acknowledge the deadfright protest for receipt. Vessel however did not put the shippers and other concerned parties on notice for the deadfreight and sailed from the port with only an acknowledgement from the agent.

Fig:Dead Freight claim partly loaded condition This deadfreight claim however was not honoured by the shippers after vessels departure from the loadport. It is customary in the bulk trades for the charter party to allow for the actual weight to be

more or less (MOL) than the proposed weight by a margin of approximately 10%, in either the charterer’s option (MOLCO) or the owners’ option (MOLOO). If the weight loaded is less than the agreed margin, the charterers are deemed to be in breach of contract and liable for deadfreight. This however requires the Owners to present the deadfreight statement to the shippers in the load port prior departure.

Fig: Fully loaded bulk Urea In order to support a dead freight claim it is necessary to prove that the charterer or shipper are aware that the vessel could carry more cargo and are given reasonable opportunity to provide the balance before the vessel left the loading port. It is therefore essential that 

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The NOR specifies the quantity of cargo that the vessel can load. Letter of protest is issued to the charterers in the load port deadfreight claim form is completed and presented to the shipper and charterer The Master informs the owners or commercial operators and office, that full cargo has not been provided by the shippers. Vessel not to depart port without obtaining specific guidance from Charterers. The Master should seek guidance from the owners or commercial operators and obtain approval before the B/L is endorsed for dead freight due.

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Contract of carriage at sea & bulk carriers required documents

Goods are carried by sea under a contract of carriage between the shipper and the shipowner. The shipper may employ a forwarding agent to arrange the transport, while the Shipowner may employ a loading broker to control the allocation of space and advertise the service, and to make the loading arrangements and prepare documents on the shipowner's behalf . When a shipper wants to send a particular cargo with a particular ship on a scheduled service, a "shipping note" for the consignment is completed by the shipper and forwarded to the shipowner or his agent. This note will have to contain a brief description of the commodity. The loading broker then compiles a list of the consignments intended for shipment, the booking list. This is sent to the ship to enable the Master to plan the stow and to the stevedore to arrange the loading. The shipper may receive a "booking note", which specifies that the carrier reserves space for a specified volume and kind of cargo in a named vessel between named ports. The broker may also issue a "calling forward notice" to the shipper, advising him of the time and place at which he is to deliver the goods. When the cargo is delivered to the warehouse or to the ship, a receipt for that cargo must be obtained by the shipper. When the cargo is placed onboard, this is called a "mate's receipt". This receipt acknowledges that the goods ha ve been loaded and have been properly and carefully handled, loaded and stowed. If there are any damages to the goods before loading, this will be recorded on the receipt, and it is no longer "clean". In some trades, it is customary for the shippers to have a "boat note" following the cargo. When the "boat note" is signed by the cargo officer aboard the ship, it becomes a "mate's receipt". With many shipping companies it is the practice to give an official "mate's receipt" irrespective of the fact that a boat note may be provided by

the shipper. Modern practice is to present a copy of the shipping note as the boat note, which when endorsed, become the "mate's receipt". Special tally companies are engaged by the shipowner to check or keep record of all cargo loaded into and discharged from a vessel. This is an essential part of cargo work in order to prevent claims upon the ship for so-called "short" discharge, i.e. when some of the cargo is missing. It is sometimes customary for the shipper or consignee to provide his own tally clerks, particularly with cargoes of a straight nature, such as bags, bales etc. A copy of the "mate's receipt" will be returned to the shipowner, so that a "bill of lading" can be issued to the shipper. The "bill of lading" acknowledges that the goods have been "shipped in apparent good order and condition" if the "mate's receipt" is clean. Otherwise, comments are transferred to the "bill of lading". This document is issued under all forms of shipping, scheduled or not. The complete list of cargo loaded, as compiled from the "bills of lading" form the "manifest" of the ship. Customs regulations at most ports require at least one copy of the manifest and copies are also required for stevedores at discharging ports. While cargoes are in transit, they may be sold so that the goods change ownership. Such a sale will be represented by the "bill of lading" changing hands. At the port of discharge, the consignment will be handed over to the party presenting the original "bill of lading".

Shipper’s Declaration

A Shipper’s Declaration is required under the IMO Code of Safe

Practice for Solid Bulk Cargoes (BC Code) to be made by the shipper of a hazardous solid bulk cargo, e.g. coal, for the guidance of the master. It outlines the cargo’s characteristics, including (for coal): • transportable moisture limit (TML); • estimated stowage factor (SF);

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angle of repose; contractual sizing; contractual sulphur content; IMO category for ocean transportation purposes.

The Shipper’s Declaration also lists any special precautions required

and states where emergency procedures may be found, e.g. in the Coal section of the BC Code, and reproduces relevant extracts. A Master’s Response Sheet may be issued by a shipper to the

master after loading a hazardous bulk cargo in an effort to obtain information on the behaviour of the cargo during the voyage, where this behaviour does not corres pond to that stated on the Shipper’s Declaration. Masters are to ensure they/their officers always take steps/measures to satisfy themselves that the condition of the cargo presented for loading accords with the description of the cargo in the documents given to the ship - mate’s receipts / bills of lading / cargo manifest etc. If the B/L contains inaccurate or misleading statements about the quality or quantity of the cargo it covers, then Owners will be liable for the consequences, at least in the first instance. The Master’s main concern must be, to see that this cannot happen. Therefore it is essential that the Master clauses directly on the bills the correct condition of the quality and quantity of cargo if these two items have not be properly described in the document presented to him for signing. If he wants assistance with the wording to be used in the clausing, he should call the commercial office who may engage the local P & I representative for advice. If this is not acceptable to Charterers / Shippers then they will need to find other cargo to load which does accord with the description which they want to appear in the Bills of lading. Masters are also to ensure that the current charter party for the voyage is onboard and understood by all Officers, this includes notifications to be made when a potential dispute arises. The timing of such notifications is critical in such cases, if time constraints due

to onboard operations, a telephone call to the Commercial Operator will suffice until a formal email with relevant backup detail can be sent. It may not always be easy for the Master to separate the differing responsibilities with regards to the commercial operations of the vessel. If in doubt, always refer to your management office  /commercial operator for clarification clarification and support. support. ========================================== ==========================================

Checks when signing a bill of lading - bulk carrier guide

Quantity of Cargo

: a) The Master must not sign a B/L acknowledging the receipt of goods which he knows have not been loaded. Unfortunately, the measurement of bulk cargoes with precise accuracy is for all practical purposes impossible, and so the problem frequently arises of deciding at exactly what point the Master can say that the B/L figure is incorrect.

This usually depends on many factors, such as type of cargo, the size of ship and conditions in the port, but common practice is that, if the B/L figure differs from the ship’s figure by more than 0.5%, then the Master must query the accuracy of the B/L figure. b) If the discrepancy between ship and B/L figures exceeds 0.5%, every effort must be made to establish the reason for the difference. If this is not possible, then the Master is to adopt one of the following courses :

delete the B/L figure and insert the ship’s figure, initialling the

alteration, or

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endorse the B/L with the reservation “x tons in dispute:, or

refuse to sign it, but pass it to the agents with the appropriate instructions in writing, or advise the company immediately and contact the local P & I correspondent

c) If the B/L figure is within 0.5% - of the ship’s figure, (as established by draught survey and/or volumeric calculation), then it is probably in order to sign it. However, if the B/L figure is in excess of the ship’s figure by more than 0.1%, the Master should issue a letter of protest to Charterers and Shippers, notifying Owners of what he has done. d) The above will also apply when the vessel is employing an Early Departure Procedure.

Description & Condition of Cargo

The Master must satisfy himself that the description of the cargo contained in the B/L is accurate, and complies with the description of that given in the charterparty or voyage orders. He should also ensure that, if any part of the cargo is not in good condition, he should clause the B/L accordingly, (e.g. condition of steel product cargoes). If in doubt, the Master must advise the vessel’s Operator and where appropriate call in the local P & I Surveyor.

Date of B/L

The Master must not sign an inaccurately dated B/L.

Description of Voyage

a) The Master must not sign a B/L for a voyage or destination which is patently inconsistent with any Charter Party governing his vessel’s employment, or with his  voyage instructions.

b) Unless specifically instructed by Owners to do so, the Master must not sign B/L’s for a port or destination which his ship is physically incapable of reaching in safety. c) The Master must not sign a B/L which explicitly forbids transhipment if he knows that this is envisaged by Charterers, or that it is inevitable through physical restrictions such as draft. d) The Master must not sign a B/L which he knows contains fraudulent information, e.g. false port of discharge. In all the above circumstances, he should notify the office immediately.

Terms and Conditions

a) Most forms of B/L in common use for bulk cargoes incorporate such words as “This shipment is carried under and pursuant to the terms of the C/P dated ….between ….and ….and all terms, clauses, exceptions and conditions thereof apply to and govern the rights of the parties concerned in this shipment”. Whenever possible, the blanks are to be filled in. If this is resisted, then the Master is to protest in writing to both Shippers and Charterers, notifying Owners. b) Certain forms of B/L contain no such provision. This does not matter provided the B/L does incorporate the Hague Rules or HagueVisby Rules in some form or other.

Payment of Freight

a) A B/L which contains no reference to freight having been paid in whole or in part is a receipt only for cargo, but a B/L marked  “Freight Paid” or “Freight “Freight Prepai Prepaid” d” may constitu constitute te a receipt receipt for both cargo and freight money.

b) Accordingly, the Master is only to sign such a B/L where:

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he is specifically instructed to by the Company (or where appropriate, Time Charterers – but not Voyage Charterers), or

he has good evidence that the freight has indeed been properly paid and received by Owners (or Time Charterers), e.g. a direct instruction by telex from the Company, Owners or Time Charterers.

c) Unless one of the above conditions is satisfied, the Master must not sign the B/L without first deleting the relevant words and initialling the alteration. If this proves impossible, he is to pass it to the agent with a written instruction not to issue it without explicit instructions from the company. IF THE MASTER HAS ANY QUERIES AT ALL RELATING TO THE SIGNING OF BILLS OF LADING, HE SHOULD NOT HESITATE TO CONTACT THE COMMERCIAL OPERATOR AND/OR MANAGEMENT OFFICE IMMEDIATELY ========================================== =============== Checklist to show stability, hull strength, draft, trim, suitability of cargo for a bulk carrier

The conditions of stability, hull strength, draft and trim of bulk carriers at sea and on arrival / departure at / from port and during loading / unloading cargo, bunkering and water ballast exchange, should be worked out, ensuring safety of the vessel. Safety of the cargo vessel depends on proper GM, stress calculation and other factors as being within appropriate Limits. Following are the check item confirming stability and hull strength of cargo ship:

1. The GM value within acceptable limits as specified in the loading manual and in compliance with IMO rules upto arrival next port? 2. GZ curves of the vessel to be fully understood, and their characteristics confirmed 3. Expected weather and sea conditions, to be taken into consideration when confirming stability & hull strength 4. Free surface effects and any sloshing effects for the planned passage to be taken into consideration. 5. Any restrictions specified in the loading manual to be taken into consideration. 6. Values of bending moments, shearing forces and torsional stresses at sea to be within acceptable limits upto arrival next port. 7. The sailing draft to be within applicable loadline or port/passage limits/restrictions. 8. Air draft limitations due to bridges, cargo handling equipment or other obstructions to be assessed as necessary.

9. The cargo density in accordance with maximum permissible values and precautions as per the loading manual to be followed. 10. Forward draft limit (per loading manual) to prevent slamming to be confirmed. 11. Propeller immersion ratio to be assured.

12. Trim and draft changes during voyage in fresh or brackish water such as rivers, canals and lakes, to be taken into consideration. 13. Squat due to shallow water effect to be taken into consideration. 14. Safe under keel clearance to be assured . 15. Fuel oil and fresh water consumptions to be taken into consideration.

Check items

Following are the guideline to check suitability of loading/ unloading solid bulk cargo i) Cargo holds and hatch openings are suitable for cargo operations ii) Holds are clearly numbered on hatch covers/ coamings iii) Hatch covers, hatch operating systems and safety devices are in good operational condition iv) List indication lights, if fitted, have been tested prior to arrival and are operational v) If applicable, loading instrument is certified and operational vi) Propulsion/auxiliary machinery is in good operational order vii) Mooring equipment is in good functional order Search

Fig: Bulk carrier encountering rough sea conditions

Home ||| Bulk Cargo ||| Cargo ||| Planning ||| Care ||| Safety Safety||| ||| Self unloaders Deterioration of bulk carriers hull and consequences of hull damage /forward flooding

Hull damage

Deterioration of ships hull / structure through corrosion, fatigue and damage is identified as a principal factor in the loss of many ships carrying cargo in bulk . Failing to identify such deterioration may lead to sudden and unexpected accident. Bulk carrier crews may be unaware of the vulnerability of these vessel types. The consequential loss of a ship carrying heavy cargo can be expected to be very rapid, should a major failure occur.

Progressive flooding in the forward region

Spaces forward of the collision bulkhead will, in the event of flooding, significantly affect the trim of the ship and reduce freeboard at the bow. In rough weather condition this further threatens the ship as open seas come inboard and impact on hatch covers and other fittings that protect the water or weathertight integrity of the ship. Hull plating in the region of the bow protects the fore peak tank and other spaces as do air pipes and ventilators. If any of them are damaged the ship's ability to resist further escalation of flooding is compromised.

Fig: Structural failure and flooding of bulk carrier Early warning

Bilge well high water level alarms in all cargo holds , or in conveyor tunnels, as appropriate , giving an audible and visual alarm on the navigation bridge and cargo control room can give warning of ingrss of sea water and should be dealt with promptly.When it occurs or is likely to occur, masters should quickly assess damage to their ships by being alert to water ingress and its consequences. The following guidelines are given to assist them in this assessment.

Measuring cargo temperature

Temperature of cargoes like coal and grains should be regularly checked in order to detect signs of heating. Temperature should be obtained by lowering a thermometer into the sounding pipes on the port and starboard sides at the after end of each hold. An additional temperature pipe should be sited beside the hold ladder at the fore end of the hold. A thermometer for each position should be placed at a designated place and withdrawn immediately when readings are required. The most accurate and reliable readings can be obtained by making sure that the thermometers are lowered to a level, which is well below the surface of the cargo, and that they are left in position for several minutes. Where possible there should be a thermometer for each position and thermometers should be left in place permanently and withdrawn rapidly when readings are required. Mercury thermometers are considered to be less satisfactory for taking cargo temperatures unless fitted with a maximum temperature indicator and reset before the taking of each reading, and one authority recommends the use of suitably calibrated pyrometers. When carrying coal it is necessary to test the air in the holds for hazardous gases. If the cargo was fumigated before departure from the loading port and if fumigation is continued in transit, regular checks should be made for leakage of the fumigant for so long as it remains active.

Bulk carrier losses in the early 1990s were dramatic: ships sank rapidly, often with the loss of all lives. Many were old and had suffered structural damage. A study by IACS (International Association of Classification Societies) found that after flooding in the foremost hold, the bulkhead between this hold and the adjacent hold can collapse from the pressure of cargo and water, leading to progressive flooding and sinking.

Indication of unusual motion or attitude of bulk carriers and risk management / evacuation If a ship takes on an unusual trim or heel, or if her motions become changed, breach of the hull envelope should be suspected immediately: i) Unusual collections of water on decks may be indicating trim or heel abnormality. ii) Sudden changes of heel or trim will indicate flooding or in smaller ships with lighter cargoes it may indicate cargo shift. Handling water ingress problems in bulk carrier, investigation and countermeasures Based on experience of accidents with lesser consequences it was concluded that the casualties occurred through local structural failure leading to loss of watertight integrity of the side shell followed by progressive flooding through damaged bulkheads. Any prudent Master may wish to investigate any suspected water ingress more closely but preparations for evacuating the ship should be made instantly and concurrent with any investigation. Survival and safety procedure for bulk carriers Particular emphasis has been placed on being ready for early evacuation or abandonment of the vessel. For ships carrying highdensity cargoes this is of importance while they are at sea. There may however be cases where abandonment may be the worst option and for bulk carriers as with other ship types this is most probably true in the event of grounding.

Damage investigation and countermeasures for bulk carriers Damage to side shell, externally through contact with docksides or tugs and, internally from impact by cargo dislodging equipment during discharge, can result in initiating fractures and/or fatigue of the structure. In single side-skin bulk carriers, bulkheads, trunks and ballast tank boundaries, can present "hard spots" that concentrate forces where the change in construction occurs (e.g. longitudinal to transverse framing). This may lead to undetected fractures. Structural standards & strengthening of bulk carriers Deterioration of ships hull / structure through corrosion, fatigue and damage is identified as a principal factor in the loss of many ships carrying cargo in bulk . Failing to identify such deterioration may lead to sudden and unexpected accident. Bulk carrier crews may be unaware of the vulnerability of these vessel types. The consequential loss of a ship carrying heavy cargo can be expected to be very rapid, should a major failure occur. Monitoring hull stresses during rough sea conditions The stresses upon the structure of bulk carriers are at their extreme limit in heavy seas; this is the time when most bulk carrier losses have been recorded. The IMO, therefore, recommended fitting hull stress monitoring systems on bulk carriers over 20,000 tonnes to minimise the dangers associated with longitudinal stresses due to vessels bending and pitching in a seaway and possibly triggering fatigue failure and above.

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Home ||| Bulk Cargo ||| Cargo ||| Planning ||| Care Care |||  ||| Safety Safety||| ||| Self unloaders Precautions against hazards of bulk cargo which may liquefy

Certain cargoes, such as concentrates and some coals, contain moisture that can cause the cargo to liquefy (for example, copper concentrates and certain grains including sago and tapioca can show the same characteristics as a liquid).

What is Liquefaction? Liquefaction?

In a fine grained, moisture laden cargo the spaces between cargo grains are filled with both air and water. Whilst at sea the cargo is subject to forces due to the vibration and rolling of the vessel. These forces cause the inter-grain spaces to contract. The water in the spaces between grains is subject to a compressive force but as it is a liquid it cannot be compressed. This has the effect of reducing the inter-grain frictional force that holds the cargo in a solid state. Where enough moisture is present the reduction in inter-grain friction due to the ship’s motion and v ibration can be sufficient to cause the cargo flow like a liquid i.e. to liquefy.

Consequences of Liquefaction

The most significant consequence for the vessel resulting from liquefaction is cargo shift leading to loss of stability. This may produce dangerous angles of list and in some instances the resulting loss of stability can be such that the vessel and the lives of those onboard are lost. It is therefore imperative that seafarers are aware of the types and condition of cargo that may give rise liquefaction.

SOLAS Requirements

The International Convention for the Safety of Life at Sea (SOLAS)

Chapter VI – Carriage of Cargoes - provides the general framework for the carriage of all cargoes.

Masters Duties

SOLAS Chapter VI Part B, Regulation 6.2, states that “Concentrates or other cargoes which may liquefy shall only be accepted for loading when the actual moisture content of the cargo is less than its TML.” Therefore, a master should not accept such a cargo for loading without first receiving the appropriate documentation certifying the moisture content and TML of the cargo with the moisture content shown to be less than the TML.

Terminal Representatives Duties

SOLAS Chapter VI Part B, Regulation 7 deals with the loading, unloading and stowage of bulk cargoes and introduces the Code of Practice for the Safe Loading and Unloading of Bulk Carriers (BLU Code). The BLU Code is included as a supplement of the IMSBC Code. The BLU Code, although primarily concerned with arrangements between the terminal and the ship to ensure safe and efficient cargo operations in port, does under section 3.3.3 state that: “The terminal representative should be satisfied that the ship has been advised as early as possible of the information contained in the cargo declaration as required by chapter VI of SOLAS 1974 as amended.” A question confirming that the cargo information has been received is also included in the recommended ship shore safety checklist at Appendix 3 - question 12 - of the BLU Code. Terminal representatives bringing commercial pressure on masters to load their vessels before receiving the shippers cargo declaration are acting in contravention of the BLU Code and therefore SOLAS. Masters are urged to resist such pressures. It is a master’s responsibility to ensure that the vessel is safely loaded; and where the shipper’s cargo declaration has not been received the master has no idea of the likely properties of the cargo to be loaded. If such declaration is not forthcoming a master should not commence

loading and should immediately notify owners. Members should contact the Association for advice in such circumstances. The loading and carriage of cargoes that have the potential to liquefy takes place every day, all over the world and the vast majority of voyages pass off without incident. However, the potential consequences of loading a cargo that is unsuitable for carriage due to its moisture content are of such seriousness that vigilance when dealing with these cargoes can never be relaxed. Familiarity with the IMSBC Code and an awareness that its Annexes are not exhaustive is important. Always bear in mind that some cargoes do not appear in the IMSBC Code and that these cargoes may liquefy. The best way to protect both the crew and the owner’s interests is by ensuring that the provisions and advice of the IMSBC Code are followed at all times and by being vigilant before, during and after loading. There are reports of iron ore sinter feed (or sinter feed) shipments from Brazilian ports, including Ponta da Madeira, Tubarao and Itaguai, liquefying en route. Some Brazilian shippers declare sinter feed as a Group C cargo, under the IMSBC Code. This categorises the cargo as not being prone to liquefaction, so shippers do not have to provide test results for moisture content, Transportable Moisture Limit (TML) and Flow Moisture Point (FMP).

Fig:Bulk carrier American Mariner at sea

Sinter feed is clearly listed in the IMSBC Code as Iron Concentrate, under the schedule for Mineral Concentrates. All cargoes covered by this schedule are Group A cargoes and are prone to liquefaction. Due to vibration and compaction of cargo within the ship, even apparently dry cargoes may liquefy into a semi-fluid state. A liquefied cargo can flow with the ship's roll but, when the ship rolls back, it does not completely return to its original stowage space. This may result in reduced stability and damage to the structure. SOLAS Chapter VI Regulation 6 states that: "Concentrates or other cargoes which may liquefy shall only be accepted for loading when the actual moisture content of the cargo is less than its transportable moisture limit. However, such concentrates and other cargoes may be accepted for loading even when their moisture content exceeds the above limit, provided that safety arrangements are to the satisfaction of the Administration..." IMSBC Code Group A cargoes are susceptible to liquefaction during a voyage even if they are trimmed. Compaction of the cargo can reduce the space between the cargo particles and increase the water pressure. The water rises to the surface, at the same time reducing the friction between the particles and generating a free flow state. This free flow state does not develop if: 

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The cargo contains small enough particles that restrict the movement of cargo by cohesion the cargo particles are large enough to allow free passage of water between empty spaces between the particles the moisture content is so low that even compaction does not cause a flow of liquid.

Problem with Mill Scale

Mill Scale, a by product of hot rolled steel-making, is a bulk commodity liable to liquefaction, like iron ore fines. Mill Scale and

Mill Scale Fines possess a transportable moisture limit (TML) and have thus been confirmed as Group A cargoes, which should not be accepted for loading without the shipper having certified the moisture content and TML. Due to the high density of the cargo, the IMSBC Code requires that it should be trimmed flat for the voyage, distributing the weight evenly over the tank top - wet base cargoes are prone to shifting, as the bottom liquefies and the top of the stow becomes free to slide over the base.

Cargo liquefaction cases resulting in total loss

The recent tragic loss of the 2005-built Vietnamese bulk carrier and 22 of its crewship, which was reportedly carrying a cargo of nickel ore from Morowali, Indonesia to China, sank on 25 December 2010 underlines the urgent need for greater enforcement of regulations and testing of cargoes that may liquefy. In December 2010, following the loss of three bulk carriers and 44 crewmembers in short succession, all owing to cargo liquefaction, the industry was reminded of the dangers associated with the carriage of hazardous cargoes, however, the recent loss demonstrates that the message has still not got through. Shippers and cargo interests have been called upon to conduct an urgent review into the testing and safety processes involved in shipping of hazardous cargoes following the spate of accidents and fatalities in 2010. Some shipowners reportedly still do not have the relevant experience or knowledge in interpreting the IMSBC Code and are accepting cargoes, which are unsafe. The industry needs reassurances of the competent authorities in the exporting countries that their procedures and processes have integrity and transparency as they are the key to ensuring that seafarer's lives are not put in danger. At the 16th Session of IMO's Sub-Committee on Dangerous Goods, Solid Cargoes and Containers (DSC) in September 2011, industry associations worked together to help strengthen and clarify the

requirements requirements of the IMSBC Code for accurate information relating relating to the carriage of cargoes that may liquefy, such as nickel ore.

INTERCARGO Issues Nickel Ore Guidance

The International Association of Dry Cargo Shipowners, INTERCARGO has issued a formal guidance document, which aims to guide and inform Shipowners, Masters and other industry stakeholders regarding the particular risks associated with carrying Nickel Ore. In response to the loss of four Bulk carrying vessels and 66 seafarers in little under 12 months INTERCARGO has sought to highlight the potential dangers of carrying Nickel Ore cargoes. The guide gives practical advice to shippers, shipowners and charterers. The guide also points to other areas of assistance including from a vessel's P&I Club. The Club would like to remind Members of its own extensive information regarding the carriage of Group A cargoes and especially those regarding Nickel Ore in particular. (Source: UK |P&I |CLUB)

Problems of non-compliance with IMSBC code

In the wake of some tragic accidents occurring in the last quarter of 2010 in spite of the fact that the IMSBC Code containing measures to be adopted aimed at preventing the liquefying of bulk cargoes that affect the ship stability becoming mandatory, the concerns continue in the face of non-compliance by some shippers and ship operators. The dangers that high-density liquefied bulk material poses on ship safety include increased structural load due to movement of the cargo and the rather dramatic effect on ship stability. Though the structural problem remains a serious issue requiring attention, the stability related issues also needs consideration. ========================================== ==========================================

Handling bulk coal - hazards involved

Vessels shipping coal should at all times carry on board instruments for measuring methane, oxygen and carbon monoxide gas concentrations, so that the atmosphere within the cargo space can be monitored. The instrument should be regularly serviced and calibrated so that it can provide the crewmembers with reliable data about the atmosphere within the cargo space. Care needs to be exercised in interpreting methane measurements carried out in the low oxygen concentrations often found in unventilated cargo holds.

The catalytic sensors normally used to detect methane rely on the presence of sufficient oxygen for accurate measurement. This phenomenon does not affect the measurement of carbon monoxide or measurement of methane by infrared sensor. However, additional guidance should be sought from the manufacturer of the instrument.

Fig: Bulk Coal Discharging An instrument required for measuring methane, oxygen and carbon monoxide concentrations should be fitted with an aspirator, flexible connection and a length of tubing, thus enabling a representative sample to be obtained from within the square of the hatch. Stainless steel tubing approximately 0.5m in length and 6mm

nominal internal diameter with an integral stainless steel threaded collar is often preferred. The collar is necessary to provide an adequate seal at the sampling point. A suitable filter should be used to protect the instrument against the ingress of moisture as recommended by the manufacturer. The presence of even a small amount of moisture would compromise the accuracy of the measurement Australia is the world's largest coal exporter with an estimated 240 million tonnes exported every year. Other significant coal exporters include the USA, Canada and South Africa. Major coal importing countries include Japan, Korea, the UK, Germany, India and Italy to generate electricity. There are four categories of coal: Coal Slurry

This is a mixture of solid coal containing water and is obtained as a by-product during mining. The coal particle size is usually less than 1 mm. It is regarded as a cargo that may liquefy due to its high moisture content. Coal Duff 

This is a mixture of coal and water with the largest coal particles around 7 mm. Less liable to liquefaction than coal slurry, but does require its moisture content to be monitored. Coke

Solid residues obtained by distillation of petroleum products, or half burnt coal with less gas content but with a tendency to absorb moisture at up to 20% by weight. Small Coal

Contains particles of coal less than 7 mm in size; small coal is likely to develop a flow state due to its high moisture content. According to IMO classification, coal is considered MHB. Three

characteristics of coal need to be considered: Methane Emission

Most coals emit methane, which is highly explosive if a gas concentration of 516% is present in atmosphere. A naked flame or spark is sufficient to ignite it. Methane is lighter than air and so it flows towards the top empty part of the cargo compartment and may even travel to adjacent compartments, including a hatch top. Coals that emit methane should be monitored carefully and, if the methane level becomes unacceptable, surface ventilation should be carried out as recommended by the IMSBC Code. Spontaneous Combustion

Some coals are liable to spontaneous combustion due to the presence of moisture that causes exothermic oxidation (a reaction that results in production of heat) of coal at ambient temperature. If this heat is not dissipated, the temperature rises and the coal may ignite. Corrosion

Some types of coal react with water to produce acids that can cause excessive corrosion of the ship's structure, known as `cargo corrosion'. As a result of the chemical reaction during the process of forming acid and then corrosion, colourless and odourless gases such as hydrogen are produced. Precautions for Carriage of Coal

General precautions for the carriage of coal include: 1. The Master should be informed about the cargo in the `Cargo Information Form' ( ie. Shipper's Declaration/Cargo Information ) and the material safety data sheet (MSDS) prior to loading.

2. The precautions that need to be taken depend upon the information provided, eg if the cargo is liable to emit methane,

then the Master should refer to the IMDG Code to obtain the loading, stowage and carriage information.

3. It is, therefore, imperative that the cargo information be supplied to the Master prior to commencing loading, or they may not allow the operation.

4. Before loading cargo: i) Bilge wells should be cleaned, residual cargoes removed, suction tested and covered with taped down double wrapped burlap. ii) Hatch top wheels and associated equipment should be greased to ensure that no sparks are caused during opening and closing. iii) Electrical cables, cargo hold lights and any other electrical instruments within cargo holds should be checked for insulation damage to ensure that they are safe for use in an atmosphere containing explosive gases. On bulk carriers, as no lighting is needed, the fuses should be pulled to isolate electricity. iv) Ships that carry coal are required to carry instruments to measure: a) Methane, oxygen and carbon monoxide levels in cargo holds b) cargo hold temperature (between 0-100°C) c) the pH of bilge water. o

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The installation of these instruments or the taking of measurements, should be possible without entering the cargo space. Arrangements should also be made to calibrate and test the instruments.

5. Extra monitoring should be implemented when coal is loaded in holds adjacent to hot areas, such as heated fuel DB tanks and engine room bulkheads.

6. The ideal place to monitor the temperature of the load is the centre of the stow. If the temperature is measured from the side, top or corners of the hold it must be remembered that the temperature at the centre of the cargo will be several degrees higher.

7. A no smoking policy should be fully implemented on the ship and hot work should not be allowed, particularly in the vicinity of cargo compartments.

8. Except where the shipper provides specific instructions to ventilate the cargo, compartments containing coal should only be ventilated for the first 24 hours after departure from the loading port. There should be regular monitoring of atmosphere to check the concentration of pH of bilge water. Ventilation should only be continued if the amount of methane rises above the acceptable level. Coal should also be ventilated prior to discharge owing to the danger of the build-up of gases that could be ignited by a spark from the opening of the hatches.

9. The gases may escape the cargo compartment to adjacent stores, mast houses, etc. These spaces should also be monitored on a regular basis.

10. A higher pH value reading indicates the likelihood of increased corrosion. In such cases the bilges should be kept dry by pumping out any accumulated water. However, records should be kept in the deck logbook for the quantity of bilge water discharged to justify any claims of cargo shortage.

11. If any suspected problem is observed during the passage the shipper should be contacted, not only to update their information but also to seek any clarification. Special Precautions for Coals Emitting Methane

If the shipper has declared that the cargo is liable to emit methane or the methane concentration in the cargo compartment is above 20% of the Lower Explosive Limit (LEL), the following additional precautions should be taken: 

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Surface ventilation should be maintained hatch covers should not be opened until the accumulated gases have been removed. Hatch covers should then be opened carefully ensuring no sparks are initiated all enclosed spaces such as store rooms, tunnels and passageways, etc, should be thoroughly monitored for methane enclosed hatch covers should be ventilated.

Special Precautions for Self-Heating Coals

If the shipper has declared that the cargo is liable to self-heat, then the following additional precautions should be taken: 

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If required, the Master should seek additional guidance from the shipper on the adequacy of the existing precautions if analysis of the atmosphere of the cargo compartment indicates an increased carbon monoxide concentration, then

i) the hatch covers should be closed after loading and additional seals applied ii) surface ventilation should be kept to minimum iii) carbon monoxide concentration should be regularly measured and recorded iv) if the hold temperature exceeds 55°C or the carbon monoxide concentration rises steadily, expert advice should be sought. Special precautions for handling bulk coal - IMSBC code guideline Loading bulk coal : The IMO Code of Safe Practice for Solid Bulk Cargoes includes

detailed recommendations for the safe loading and carriage of coal cargo. It states that coal may heat spontaneously and that some coals may be liable to self heating which could lead to spontaneous combustion. The section ‘General requirements for all coals’ stresses the most important advice for the safe loading and carriage of coal:

Cargo temperature is to be monitored (not more than 40 c deg), the methane content to be monitored (not excess of 10% of the LEL). In this respect, please be guided that your vessel is provided with the necessary instruments to calibrate.

Fig: Bulk Coal Loading

The ship shall be kept upright during loading of this cargo. This cargo shall be so trimmed to the boundaries of the cargo space that the angle of the surface of the cargo with horizontal plane does not exceed 25 deg. This cargo shall be kept as dry as practicable. This cargo shall not be handled during precipitation. During handling of this cargo, all non working hatches of the cargo spaces into which the cargo is loaded or to be loaded shall be closed

Fig: Bulk Coal Discharging Vessels shipping coal should at all times carry on board instruments for measuring methane, oxygen and carbon monoxide gas concentrations, so that the atmosphere within the cargo space can be monitored. The instrument should be regularly serviced and calibrated so that it can provide the crewmembers with reliable data about the atmosphere within the cargo space. Care needs to be

exercised in interpreting methane measurements carried out in the low oxygen concentrations often found in unventilated cargo holds. The catalytic sensors normally used to detect methane rely on the presence of sufficient oxygen for accurate measurement. This phenomenon does not affect the measurement of carbon monoxide or measurement of methane by infrared sensor. However, additional guidance should be sought from the manufacturer of the instrument. An instrument required for measuring methane, oxygen and carbon monoxide concentrations should be fitted with an aspirator, flexible connection and a length of tubing, thus enabling a representative sample to be obtained from within the square of the hatch. Stainless steel tubing approximately 0.5m in length and 6mm nominal internal diameter with an integral stainless steel threaded collar is often preferred. The collar is necessary to provide an adequate seal at the sampling point. A suitable filter should be used to protect the instrument against the ingress of moisture as recommended by the manufacturer. The presence of even a small amount of moisture would compromise the accuracy of the measurement. Avoid all unnecessary handling, even the removal of wet clothing. If handling is necessary, then it should be as gentle as possible. Enclose the survivor in a plastic bag or blankets or preferably both. It is important that the head, but not the face, is well covered. Place in a warm area with a temperature not exceeding 22øC. Never attempt to give any fluids by mouth to an unconscious casualty.

Bilge precautions: Bilge wells shall be clean, dry and covered as

appropriate, to prevent ingress of the cargo.

Hazard

Coal May be create flammable atmospheres, may heat spontaneously, may deplete the oxygen concentration, may corroded metal structures. Can liquefy if predominantly fine 75% less than 5 mm coal.

Weather precautions: Unless the vessel is specially constructed,

the Moisture content of the cargo shall be kept less that TML during voyage.

Stowage & segregation: This Cargo shall be separate from goods

of classes 1,2,3,4,5 n IMDG Ventilation:  Following the special precautions in IMDG

Hold cleanliness: Clean and Dry as relevant to the hazards of the

cargo.

Special Precautions

1. Coal emitting methane 2. Self-heating coals 3. Gravity-field self-unloading bulk carrier

Carriage

In respect of coals liable to spontaneous heating, the Code recommends that the hatches should be closed immediately after completion of loading in each cargo space. The atmosphere in the cargo spaces should be monitored and, if the carbon monoxide level shows a steady increase then the cargo spaces should be completely closed down. The covers could also be additionally sealed with suitable sealing tapes.

Discharge: No special requirement

Clean up

In the case that the residues of this cargo are to be washed out, the cargo spaces and the other structures and equipment which may have been in contact with this cargo or its dust shall be thoroughly swept prior to washing out. Particular attention shall be paid to bilge wells and framework in the cargo spaces. The fixed bilge pumps shall not be used to pump the cargo spaces, because this cargo may make the bilge system inoperative. Coal Loading Port - Tanah Grogot; Berau; Tg. Buyut; Sampit/Indonesia Coal Discharging Port - Paiton / Indonesia; Rayong, Ko Si Chang/Thailand

Case Study

(Britannia P and I Club Volume 17: number 2: June 2010) An incident on board one of member vessel in Indonesia highlights the risks of self-heating and spontaneous combustion of coal cargo, as well as the hazards of loading from barges. Most Indonesian coal has a maximum particle size in excess of 7mm and accordingly the transportable moisture limit (TML) is not normally a problem. Fire experts, Messrs Burgoynes, have dealt with 18 incidents involving overheating coal off Kalimantan (Indonesian Borneo) in the last two years. The majority of cases involved the loading of low-grade coal with temperatures in excess of 55°C. They advise that there are apparently a number of operators who are shipping coal without following accepted industry good practice. Such operators may mis-declare cargo as not being prone to self -heating or provide no details of the self -heating or methane-emitting characteristics of the cargo.

Unless loading is closely monitored the problems are usually only seen after the cargo has been loaded. Once loaded, it is difficult to arrange for the removal of the coal due to the lack of suitable facilities, i.e. floating cranes and empty barges, in the region. The Master should insist that the shipper provides a cargo declaration that is consistent with the requirements of the International Maritime Solid Bulk Cargoes (IMSBC) Code, and should not load cargo without having received the required declaration. The IMSBC Code requires the shipper (or agent) to provide cargo details, including: 

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moisture content sulphur content particle size information on whether the cargo may be liable to emit methane or self-heat, or both.