Ele lite era) Standard Cargo Special Edition: Misdeclared Cargo The Standard The Standard 9 for service and security The shipment of an undisclosed cargo can bea shipowner's worst nightmare and, in some scenarios, canlead to amajor casualty, putting the safety of the ship's crew, hull, cargo and the environment at risk. +656506 2852 Yyves.wendenborn@ctple.com Tathis edition The misdeclaration of cargois not The Standard Club ill continue anew phenomenon. There werea toinvestigate misdeclared cargo umber ofhigh-profileincidents inthe incidents with its members and we 1990s where calciumhypochloritewas will publish further special bulletins suspectedto be the cause, forexample, over thenext year highlighting best 1L_Introduction 2. Misdeclaration of Dangerous Cargoes~ Calcium Hypochlorite ynsmandOrgunreton ACONCAGUAInDecembe’ 1938 and E REE rSeptember oi What the & The Plcub experioncnof - San industry woe glo repondte these incidents with Iegislative changes, and many carriers subsequently refused tocarry dangerous goods, recently the Standard Club has been involved inanumber of multimilion dollar incidents caused by misdeclared cargo, and specifically nvolving calcium hypochlorite on container ships. 7 Rights ofrecoveryinrespectof misdeclared dangerous cargoes Inthis special edition of Standard Cargo we want to draw your attention toseveralrecent incidentsinvolving the misdeclarationof dangerous goods shippedincontainers. Adam Jackson of CWAstarts offthe articles, by explaining the dangers associated with calcium hypochlorite. Weill then explain carrier led initiative CINS, endorsedby the Standard Club thats looking to resolve container incidents. EnamHussainand Annie O'Sullivan willdiscuss two Standard Club case studies and James Bean wil finish off this specialedition by explaining member's rights ofrecovery in respect of misdeclared dangerous cargoes.Misdeclaration of Dangerous Cargoes— Calcium Hypochlorite ‘Adam Jackson MChem Hons, MELMRSC ‘wa ¥442072428444 cami@ewa.ukcom Sources MV HansaBranderbur, 2 Aseries of fires and explosions on container ships at seahas highlighted the dangers surrounding the misdeclaration and incorrect packaging of dangerous cargoes. = Anestimated 10% of container cargoes arebelievedtobelistedin thelnternational Maritime Dangerous Goods (IMDG) Code = Cargoes such ascalcium hypochloritehavebeen implicated inhigh-profilefireand explosion Incidents, oftencaused bya ‘misdeclaration onthe cargo manifest = Calcium hypochlorite isnot the ‘only cargo thathas ledto fire and ‘explosion incidents on board ‘container ships when misdeclared cormispackaged Introduction Calcium hypochlorite is one ofan ‘estimated 10% of container cargoes believed to be listed inthe international ‘Maritime Dangerous Goods (IMDG) Code. Amisdeclaration of oneof these ‘cargoes onthe manifest canleadto ‘mishandling by the crew, who are uninformed ofthe potentially ‘dangerous goods carriedaboard the ‘vessel and therefore donot stow these ‘cargoes in accordance with the IMDG Code. Thiscan put the vesselandcrew indanger andhas been citedasacause ‘of some high-profile fire and explosion incidents. Calcium hypochlorite=the facts Calcium hypochlorite is commonly Usedinwater treatment asa isinfectantand bleaching agent andis ccarriedas.a white or yellowish solidin powder, granule or tablet form.Calcium hypochlorite is known under elarge ‘urnber of dfferentnames andcan be shipped ina variety of grades represented by separate UN numbers. ‘The IMDG carriage guidelines are broadly similar forall six UN numbers for different calcium hypochlorite ‘grades, with calcium hypochlorite ‘hippedunder UNnumbers 1748 and ‘2880 having the highest chlorine ‘strength and being the most lable to ‘thermally degrade. Calcium hypochlorite’ an oxidising substance that undergoes exothermic ‘decomposition (releasing gaseous chlorine, oxygenandheat) when ‘exposed to temperatures between 530°C and 55°C orin the presence of impurities such as powdered metals or ‘certain organiccompounds. Oxygen vill sustain and exacerbate any fire already causedby the decomposition reaction, and gaseous chlorine's toxic vierespiration.Source MY Hansatrandenbur, Inincidents when calcium hypochlorite has been suspectedas the cause of fires or explosions, suchas onboard the ZIMHAIFA in June 2007, CMA DJAKARTAin July 1999, ACONCAGUA, in December 1998 or RECIFE in September 1991, the containers carrying calcium hypochlorite may not have been stowedinaccordance with the IMDG Code. = TneIMDG Code enforcesstrict quantity imits on both the innerand ‘outer packaging of calcium. hypochlorite = Calcium iypochiorite can be carried inreefer containers, although, itis highly corrosive tothe metal framework f the reefer containerin the presence of moisture = Innormalcarriage conditions, containers carrying calcium hypochlorite should only be stowed ‘ondeck, away from sources of heat suchas bunker tanks ordirect sunlight (this equally applies when the containers are ashore) ~ Containers shouldalso be stowed to allow the maximum amount of air Circulation facilitating cooling Calciumbypochloriteis not the only cargo thathas led to fireand explosion incidents on board container ships when misdeclared or mispackaged. Atthe point of manufacture, a corresponding material safety data sheet (MSDS) should be available forthe goods, which willinclude informationabout potential hazards, the correct UN number for the goods ‘and the corresponding IMDG classification. In order tocombatissues ‘caused by the misdeclaration of cargoes carried on container ships, the IMO madeita requirement for freight forwarders todeclarecargoes as per ‘heir "proper shipping name" according totheIMDG Code. Carriers should be vigilantand ifthe assigned cargoname cannot be found within the IMDG Code or the MSDS does not containthe correct regulatory information, then assistance should be sought. Careful checking of cargo declarations and their corresponding MSDS shouldassist in curbing further fire and explosion incidents on board. container ships limiting the already excessive numberof incidents that have occurredin recent years.The Cargo Incident Notification System and Organisation Astatistical view on the misdeclaration of cargo (Cét. Dirk Vande Velde, Msc C50 3235453315, vandevelde@imediog be Background ‘The Cargo Incident Notification ‘Systemand Organisation (CINS) was ‘createdin November 2010 by CMA CGM, Evergreen, Hapag-Lloyd, Maersk Line andthe Mediterranean Shipping ‘Company after multiple serious cargo incidents, endangering people's ives ‘onboardand the environment. These triggered the creation of a partnership, ‘enabling the container lines toreceive arapidelertinthe case of worrying incident andallowing them to manage the elatedrisks. The total number of CINSmembersis 27, representing over {60% of the container shipping industry. ‘The TT Cluband the international Group of P&|Clubsare alsoinvolvedin the project as advisory members of, the CINS Committee. The Container ‘Owners Associationisactingas@ ‘neutral host for the database. = Data about cargo that has or ‘couldhave caused anaccident is fedinto the CINS database by the ‘members, = Analysisof this dataaliows ‘greater awareness of areas of concern ~ This has shown thatone of the ‘main causes ofincidentsis the ‘misdedlaration of cargoip. Sees oer i re 3 Theintention of CINS is toallow the stern Souctiredcaptureey caical a FMocnaton etn tacos = Setnnor nents Alteran sooutcargthaetter hao out povecausedonsstdantateditathe a enbace wa awreneppicrton fanaa copuaresaate dtowsprouuctonofetatistesand ientresionotingustrytende TNs Otheroutcomesotheintatve could wilstoprondctheshpowmersann, Gachongesimlegelstonsratherste theevdercotobeckuptnencameil produce ecomendovonsand cose aryelearpattrnsemergemcatng Eoreperaiona ne carro vereus thatfurther action ought tobetaken —_levols. either atindustry or regulatory level. TheavailableCINS statisticsare already showingtrendsand guiding -—At theheartof this initiativeisa quest shipownersonhowtoactinorderto fer qualty~bothinterms of service change the culture, makecontainer __ delivery, ensuring the cargo arrives in shipping saferandensurecargoarrives sound conditionontimeand also atits destination improving the way in whichall parties in the maritime industry carry out their Theanalysis of the CINS data, obligations and communicate. tis performedby the TT Club specialists, hoped thatit will enhance the safety of isrevealing in that the numbertwo cargo carriage inthe supply chain and cause of incidents, afterleakages, reduce the isk to people involved, is the misdecleration of cargo. assets and the environment. This revelations resultingin increased numbers of carriers beingin favour of measures unprecedented in the shipping industry, suchas mandatory auditing and registration of shippers comparable with the International Air Transport Association (IATA).The P&I club experience of misdeclared cargoes Enam Hussain, Syndleate Calms Director +442055208821 ‘Sham husseinGDetple.com ‘Annie O'Sullivan, ‘Claims Executive $442035202508 annie osulivandctpe.com Recently, there have been a number of claims caused by misdeclared cargo and specifically involving calcium hypochlorite. Itisimportant to highlight this trend and the inherent dangers of misdeclared cargoasit can compromise the safety of crews and vessels. Calcium hypochlorite Inarecent case involving amisdeclared ‘cargo of calcium hypochlorite, the ‘cargo was wrongly stowedasa directresuit ofthe misdeclaration Inthis particularcase, the vessel had properly loaded and stowed various dangerous goods;however, the cargo ofcalejumhypochiorite was not declaredas an International ‘Maritime Dangerous Goods (IMDG) ‘cargo. While awaiting piot for ‘entry into the port of Tema, the crew noticedawhite cloud followedbya large yellow flame andthen alarge ‘explosion. The expiosion was the resultof the decomposition of the ‘whitening agent’. The dust cloud was raised from an initial decomposition, which ignited the reefer containers. ‘Salvors were instructed toassist and toensure the safety ofthe crew.A thermal nd atmospheric investigation ‘was undertaken anda flooding process ‘was used until the vesselwas able to ’be brought alongside the container discharge facility to offload the ‘dangerous cargo. Thermalimaging was used tolocate the source of theheat. ‘The shipment of an undisclosed ‘cargo canbea shipowner'sworst nightmare. Inthe event that ‘damage is caused, owners willhave ‘the right torecover against the shipper and/or the charterer. Beware other unexpected causes offires onboard Caicimhypochlorteisonlyoneof many types ofcargo that can cause irrevocable damage fundeciared Inarecentease, thn, ight white stroke was discoveredincargohold to. ofamember'scontainer vessel during journey between Ho Chi Minh City, Vietnam and ong Kong “Thevessel was abo to progertyload and stow dangerous oods:however, the cargo of tapiocain cargo hold ‘no. dnadnot been declared as 8 Sengerous good. The MDG Code doesnotlst specific entries for tapioca:however.tiswidely known tobe susceptbleto sel-hesting ‘The temperatures of thesmoking containers were recordedat between ‘32°C and 37.1°C. Other containers registered28°C. Experts were instructed to attend at Hong Kong, ‘The smoking containers wereremoved ~andinspected on the barge alongside. During the unioading of some containers, there wasan outbreak coffire at the base of one container, ‘The container was discharged and loweredinto the seato submerge the base and extinguish the fire.Rights of recovery in respect of misdeclared dangerous cargoes ‘Contracts of carriage Charter parties IRisanestabished principlethata “Theleading textbooks assert ‘shipperisunderadutynottoload ‘unanimously that, inappropriate dangerous cargothat might damagea circumstances, the implied duty also ‘ship without the carrier'sknowiedge and —_appliestocharterers even where they consent. Allcontracts of carriage ‘arenot the actual shippers of the cargo. betweena shipper andcarrier should number of charterparty forms contain incorporatethisdutyeitheras express express clauses dealing with dangerous ‘orimpliedterms,andsometimes both. cargo, the breachof which cangiverise ‘The implied duty underEnglishcommon _toanindemnity toan owner for liabilities lewisabsoluteandrequiresashipper arising asaresult of shipping dangerous Jamesean, not toload dangerous cargothatislikely goods. uchliabilties caninclude the Syndicate Director todamagethe ship, orexposetheship ship's proportionof generalaverage, +442055208611 ‘or cargoto the isk of detention and, salvage costs, particular averageand James beanGietple.com ‘delay. Inaddition, the carriers damages forloss ofuseto the shipand ‘empoweredat any time to unload, her cargo, whichhasthe potential to destroy orrenderacargoinnocuous,as_runintomilions.. the circumstances may require, without payment ofcompensation. ‘Notwithstanding that a shipperis under duty not toload dangerous ‘cargo that might damage aship without the carrier's knowledge or consent, the carrier's and/orits subrogatedinsurers! prospects of meaningfulrecovery for {heir losses arelikely tobe sim where the shipper is uninsured or abrass plate ‘companyin China Concluding thoughts “These recentcasesindicate Ananawerto these questonsis not the dangers nvolveawith tasytofind andindustry bodies such tmisdeclarationofdangerousgoods. asthe CINS itive ar spreading Whydoshippers misdeciare those” awareness about those malpractices. ‘cargoes? Do they wish toavoid paying The Standard Clubhas endorsed this ‘the higher dangerous goodfeesthat _initiativeinits quest for safer seas ‘carriersimpose? Do they wishto andships. ‘evade the carriage requirementson Ifyouwishtodiscussthetopicfurther, _packingand quantity invoked by the please contact: IMDG? Ordo they simply notcare ‘about the risks they subject the ship ‘Yves Vandenborn, andcrewto? Director of Loss Prevention, +65 6506 2852 ywes.vandenborn@ctple.comFollow us on Twitter “© @StandardPandl