pi_circular Dry bulk Cargo riskCompliance & regulation Skuld
Members will be aware of the issues involving bulk mineral cargo liquefaction, which have recently been associated with bauxite cargoes originating from South Asia. New regulations have come in to force in Malaysia which members need to take note of. The Association is grateful to Messrs. SPICA Malaysia for assistance with this update. Bauxite cargo operation (Source: Brookes Bell) Bulk mineral cargo liquefaction This is a serious issue which the bulker sector has had to tackle for a significant period of time. With the early examples including coal shipments in the 1960s, in modern times the issues has been seen primarily to concern iron ore, nickel ore, fluorspar as well as bauxite cargoes. While bauxite has been brought in to a particular spot light due to a recent event involving the total loss of a vessel, including the tragic loss of a number of crew, the risk is pervasive and not confined to a particular cargo or region. Members engaged in the trade of cargoes that may be prone to liquefaction should continue to exercise rigorous risk analysis and management. The consequence of a total loss scenario involves liabilities in the tens of millions of USD. The Association has previously advised, in detail, on the issues and additional information and resources can be found in the "Further reading" section below. New Malaysian regulation Pursuant to a notice from the Kuantan Port Consortium of 9 February 2015, a new procedure was put in place for the appointment of surveyors and their entry in to the Kuantan port operational area. As will be noted that the particular shipper has to give permission for the surveyor to attend and inspect the stockpile of cargo intended for loading on a given vessel. There are also regulations in terms of escorting and security, as well as some small charges. We recommend that, whenever questions concerning the cargo arise, members always attempt to obtain permission from shippers to sample stockpiles. The key information to take on b
Liquefaction risks related to bauxite cargoes
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