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Monday, 26 August 13
CARRIAGE OF COAL CARGOES FROM KALIMANTAN, INDONESIA - WEST OF ENGLAND P&I CLUB
 The Club has recently been advised by consulting scientists and engineers Dr J H Burgoyne and Partners (International) Limited that the number of incidents involving the self-heating of coal cargoes loaded in Kalimantan (Indonesian Borneo) is increasing. In the past two years Burgoynes have dealt with twenty-three such cases, ten of which have taken place in the last three months.
Low rank (geologically immature) coal, such as loaded off Kalimantan, is particularly susceptible to self-heating and may spontaneously combust if loaded at a temperature in excess of 55°C. Shippers and local suppliers have sometimes delivered coal to vessels off Kalimantan at a temperature close to this figure. Coal awaiting shipment is often stored in barges close to the anchorage areas where it may be exposed to strong winds and rain. Such conditions may promote self-heating, and barges containing coal with a temperature exceeding 55°C have sometimes been encountered.
However, not all operators appear to be aware of the risks and some vessels have only identified the problems after the cargo has been loaded. Once on board it is not easy to remove the coal due to the lack of discharging facilities in the region.
Mandatory notification and survey requirements
Notification
In accordance with the Club’s bye-laws, Members are required to notify the Managers before agreeing to carry a cargo of Kalimantan coal to ensure that they are full acquainted with the risks beforehand and so that any concerns regarding the contractual terms of carriage may be addressed. In particular Members should consider incorporating an express right in all such contracts to inspect the cargo ashore and in barges prior to shipment, to reject cargo which is too hot or otherwise unsafe and to have heating or unsafe cargo removed from the vessel. Members may also seek to preserve rights of indemnity against other parties in case they incur liability or loss as a result of shipping a self-heating coal cargo.
Survey
Members are also required to appoint a surveyor at the load port to provide assistance to the Master. The surveyor should be instructed to check that no significant self-heating problems are evident, confirm that the coal is suitable for loading, verify that all arrangements aboard the vessel are satisfactory and ensure that the measures for testing cargo space gas concentrations and cargo temperatures are in order and meet the applicable provisions of the International Maritime Solid Bulk Cargoes (IMSBC) Code. The instructions should also require the surveyor to assess the apparent condition of the cargo and make suitable recommendations to the Master as to whether the mates receipts and bills of lading should be claused.
Failure to fulfil either of these requirements may prejudice cover.
IMSBC Code
The International Maritime Solid Bulk Cargoes Code contains a comprehensive entry regarding the carriage of coal. Although some of the requirements are summarised below, Members should refer to the IMSBC Code itself for full details and ensure that the provisions are strictly followed.
Cargo Declaration
Although there are many good shippers and mining operations in Kalimantan, it is reported that not all are providing adequate cargo declarations. Some of the declarations have been found to misrepresent the cargo by either stating that the cargo is Category A (a reference to the 1990 version of the Code of Safe Practice for Solid Bulk Cargoes meaning it does not self-heat or emit methane) whilst others provide no details on the self-heating or methane emitting properties of the coal.
SOLAS Chapter VI and the IMSBC Code state that the shipper should provide the master or his representative with appropriate information sufficiently in advance on the properties of the cargo and recommendations regarding its safe handling, stowage and carriage so that the necessary precautions can be taken. In particular, the IMSBC Code requires the shipper to provide, in writing, the moisture content, sulphur content and particle size of the cargo, and information on whether it is liable to self-heat or emit methane, or both. A “Form for Cargo Information for Solid Bulk Cargoes” may be used for this purpose, an example of which can be found in Section 4 of the IMSBC Code. The master should insist that the shipper provides a cargo declaration that is consistent with the requirements of the IMSBC Code and should not load the cargo without it.
Loading and Carriage Requirements
In order to avoid problems of self-heating during the voyage and possibly while loading, the temperature of the cargo should be checked beforehand. Although not required by the IMSBC Code, an infra-red thermometer is an ideal tool for this task. Infra-red thermometers are relatively inexpensive and easily obtainable, and their use is recommended. The instrument may be used to “scan” the surface of the cargo prior to and during loading, allowing the master to be alerted if the temperature readings are found to be high. Vessels should also reject cargo exhibiting clear signs of self-heating such as barges containing smouldering coal.
During loading the holds should be sealed if a delay of more than an hour is anticipated. On completion of loading the cargo should be trimmed reasonably level to the boundaries of the cargo hold to prevent the development of fissures. Fissures increase the surface area of the cargo exposed to the air and thereby the risk of self-heating. Each hold should be closed immediately on completion, and hatch sealing tape may be applied to the hatch covers as an additional precaution. Only natural surface ventilation is permitted, limited to the absolute minimum time necessary to remove any methane which may have accumulated. Any vents that lead below the level of the cargo should be sealed as the introduction of air into the body of the cargo may promote self-heating.
The IMSBC Code states that personnel should not enter the cargo holds during the voyage due to the presence of methane and the possible hazards of toxic carbon monoxide gas and the depletion of oxygen if the cargo starts to self-heat. If it is essential to enter a hold, self-contained breathing apparatus must be worn and enclosed space entry procedures followed.
For bulk cargoes such as coal which are liable to emit toxic or flammable gas or lead to the depletion of oxygen, the IMSBC Code and SOLAS Chapter VI require the ship to carry an Administration approved gas detector. The gas detector must be capable of measuring levels of methane, oxygen and carbon monoxide inside the holds without having to enter them. Gas detectors must be regularly serviced and calibrated in line with manufacturers’ recommendations, and ships’ personnel should be trained in their use. The IMSBC Code also requires vessels carrying coal to be provided with a means of measuring the pH values of cargo bilge samples.
Since coal emits carbon monoxide gas if it begins to self-heat, monitoring the amount of carbon monoxide inside a cargo hold is the most effective method of detection. Sampling points should be fitted to both sides of each cargo hold, either to the coaming or to the hatch covers, to ensure flexibility in the event of heavy weather. As far as practicable the same sampling points should be used when testing the atmosphere inside the cargo holds to ensure consistency.
The IMSBC Code also recommends that the ship monitors the temperature of the cargo in the holds from external locations during loading and while on passage, although the development of a hot spot in the coal may not be detected unless a temperature probe is located nearby. All gas detector and temperature readings should be recorded while loading and during the voyage.
Under normal conditions each cargo hold should be sampled daily and surface ventilation should be stopped at least four hours prior to sampling. If the carbon monoxide level is found to exceed 30 ppm, samples should be taken twice daily. If the readings exhibit a steady rise over three consecutive days or reach 50 ppm, a self-heating condition may exist. In such an event the cargo hold including the ventilation arrangements should be completely sealed.
The IMSBC Code further advises that the master should contact the company immediately if it appears that the cargo has started to self-heat. In addition the shipper should be notified and the Club should be informed as it may be necessary to appoint an expert to assess the situation and provide additional advice.
Such information should include:
-- Identity of the cargo spaces involved; monitoring results covering carbon monoxide, methane and oxygen concentrations
--If available, temperature of the cargo, location and method used to obtain results
--Time gas sample taken (monitoring routine)
--Time ventilators opened/closed
--Quantity of coal in hold(s) involved
--Type of coal as per cargo information, and any special precautions indicated on information
-- Date loaded, and ETA at intended discharge port (which shall be specified)
--Comments or observations from the ship’s master
In the event of a fire, boundary cooling of the affected holds should commence immediately and the master should consider heading towards the nearest port. Again, the Club should be notified without delay as the attendance of an expert may be necessary.
In the event of any queries, please contact the Claims or Loss Prevention department.
The Club is grateful to Burgoynes for the provision of information leaflets on “Self-heating of coal cargoes – Kalimantan, Indonesia” and “Gas Detectors” which form the basis of this Notice to Members. Copies of both leaflets are available on the Club’s website.
Source: West of England P&I Club / Hellenic Shipping News
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Sunday, 18 August 13
INDO - INDIA FREIGHT EXPECTED TO BE FIRM NEXT WEEK - VISTAAR
COALspot.com - The freight market was up this week with the BDI gaining more than 10 pct due to strong Cape Sector.
The BDI was closed at 1,102 p ...
Friday, 16 August 13
US COAL PRODUCTION SLIGHTLY UP ON WEEK
COALspot.com – United states the world’s second largest coal producer produced totaled approximately 20.10 million short tons (mmst) of ...
Thursday, 15 August 13
CAPESIZE : TRENDS SOMETIMES SHIFT WITH NO PRIOR WARNING - FEARNRESEARCH
Handy
The influence of the summer holidays across Europe was felt in the Atlantic basin this week. Very little activity and a growing list of avail ...
Wednesday, 14 August 13
ANOTHER WEEK IN THE RED FOR DRY BULK CARRIERS - INTERMODAL
Chartering (Wet: Stable- / Dry: Stable- )
Another week in the red for Dry Bulk carriers with the market losing further steam as fewer an ...
Tuesday, 13 August 13
AUSTRALIA NEWCASTLE COAL EXPORTS JUMP 30.61 PERCENT ON WEEK
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port up 30.61 per cent week on week to 2.95 million mt for ...
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- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Oldendorff Carriers - Singapore
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Independent Power Producers Association of India
- GVK Power & Infra Limited - India
- Indian Oil Corporation Limited
- International Coal Ventures Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Sojitz Corporation - Japan
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Billiton Holdings Pty Ltd - Australia
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- Sree Jayajothi Cements Limited - India
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- McConnell Dowell - Australia
- GMR Energy Limited - India
- Chettinad Cement Corporation Ltd - India
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Malabar Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- European Bulk Services B.V. - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- TeaM Sual Corporation - Philippines
- Baramulti Group, Indonesia
- Economic Council, Georgia
- London Commodity Brokers - England
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- Metalloyd Limited - United Kingdom
- Africa Commodities Group - South Africa
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Asmin Koalindo Tuhup - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Romanian Commodities Exchange
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Orica Mining Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- Gujarat Mineral Development Corp Ltd - India
- Mintek Dendrill Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- Indika Energy - Indonesia
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- Kartika Selabumi Mining - Indonesia
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Maheswari Brothers Coal Limited - India
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Mjunction Services Limited - India
- Aditya Birla Group - India
- CNBM International Corporation - China
- Renaissance Capital - South Africa
- Singapore Mercantile Exchange
- Karbindo Abesyapradhi - Indoneisa
- Rio Tinto Coal - Australia
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Electricity Authority, New Zealand
- Iligan Light & Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Trasteel International SA, Italy
- VISA Power Limited - India
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- Planning Commission, India
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- The University of Queensland
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- TNB Fuel Sdn Bhd - Malaysia
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- LBH Netherlands Bv - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- Marubeni Corporation - India
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- Bulk Trading Sa - Switzerland
- Star Paper Mills Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Agrawal Coal Company - India
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Commodity Traders Exchange
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Barasentosa Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Globalindo Alam Lestari - Indonesia
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Simpson Spence & Young - Indonesia
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