JANUARY 28, 2011 CIRCULAR NO. 06/11 TO MEMBERS OF THE ASSOCIATION Dear Member: INDONESIA AND THE PHILIPPINES: SAFE CARRIAGE OF NICKEL ORE CARGOES Members are referred to the Member Alert of December 16, 2010 which provided some preliminary observations and advice in regard to the carriage of nickel ore and other bulk cargoes prone to liquefaction. Since then, an extensive exercise in consolidating relevant advice has been undertaken by the International Group, the product of which is the present Circular which sets out, as will be seen, a detailed disquisition on the subject of nickel ore cargoes and the best practice to be adopted in handling, loading and carrying them. This Circular can be read in conjunction with the Member Alert. This contained ancillary commentary on the liquefaction of unprocessed mineral ores, including a memorandum by Dr. Martin Jones of Brookes, Bell, Liverpool. The present Circular contains a definitive discussion of the problems of such cargoes and the means by which they may safely be carried. Introduction As Members may be aware, in October and November 2010 three vessels the JIAN FU STAR, NASCO DIAMOND and HONG WEI sank during the carriage of nickel ore from Indonesia to China with the loss of forty-four seafarers. The cause of the sinkings has not yet been definitively determined but nickel ore, like iron ore fines and many concentrates, is a cargo which may liquefy, if the moisture content of the cargo exceeds the transportable moisture limit (TML) when loaded. Liquefaction of such a cargo can result in loss of stability which in turn can lead to a vessel capsizing. It is therefore very possible that all three vessels were lost as a result of cargo liquefaction. There have been a number of other recent reports of cargoes of nickel ore loaded in both Indonesia and the Philippines liquefying and causing loss of stability to the carrying vessel, but fortunately not resulting in its loss. In one such case, the carrying vessel grounded causing extensive hull damage. Currently nickel ore is only loaded in four locations in the Philippines, Santa Cruz (Luzon), Surigao and Tubay (Mindanao) and Rio Tuba (Palawan). Liquefaction of some ore cargoes can be caused by the normal incidents of a sea voyage, for example the motion of the ship in the seaway or vibrations caused by the running of the main engine or other onboard machinery. The International Group informally raised its concerns about the loading and carriage of nickel ore from Indonesia and the Philippines, with the Indonesian and Philippine delegations that attended the 88th session of the IMO Maritime Safety Committee (MSC) which was held between November 24 and December 3, 2010. INTERCARGO made an intervention at that session expressing its concerns with respect to the hazards and risks associated with the carriage of cargoes that can liquefy such as nickel ore. In addition INTERCARGO pointed out that some charterers and masters had been put under extreme pressure to accept shippers’ declarations and testing reports without having been permitted the opportunity of independently verifying such declarations and reports. The Marshall Islands supported INTERCARGO’S intervention and the Indian delegation outlined the actions that the Indian authorities were taking to improve the safe carriage of iron ore fines cargoes loaded in India. Specific Concerns Associated with the Loading and Carriage of Nickel Ore The loading and carriage of nickel ore cargoes from b