Containership Charter Market Could See New Spike as Ships Slow Down for New Emissions Regulations

By Mike Wackett (The Loadstar) – The containership charter market could see a new spike this year, as liner operators look to redesign their networks to compensate for ships reducing speed…

By Mike Wackett (The Loadstar) – The containership charter market could see a new spike this year, as liner operators look to redesign their networks to compensate for ships reducing speed...

World Maritime University 2022 Seafarer Survey

The IMO’s World Maritime University (WMU) in Sweden is calling all Seafarers who are currently working on any commercial ship, or have worked on such ships at any time after…

The IMO’s World Maritime University (WMU) in Sweden is calling all Seafarers who are currently working on any commercial ship, or have worked on such ships at any time after...

Shipping’s New ESG Rules Could Starve Millions

by John Konrad (gCaptain) A new report found that more than 75% of ships will not meet the International Maritime Organization’s (IMO) new Environmental social and corporate governance (ESG) index…

by John Konrad (gCaptain) A new report found that more than 75% of ships will not meet the International Maritime Organization’s (IMO) new Environmental social and corporate governance (ESG) index...

TT Club publishes ‘Book it right and pack it tight’

Insurance and risk management firm TT Club says “Book it right and pack it tight” provides guidance for preparing unitized consignments of dangerous goods for carriage by sea.

By Peregrine Storrs-Fox 

It cannot be overstated how critical it is to maintain good practice when shipping dangerous goods. Thursday was the 10th anniversary of the fateful Atlantic crossing of the MSC Flaminia that cost the lives of three seafarers and resulted in extensive damage to cargo and the ship.

The forensic investigations and litigation that followed the MSC Flaminia incident adequately demonstrate the complexity of shipping dangerous goods through the maritime supply chain in terms of regulation, practices and expectations. The 2018 judgment in the liability phase of the litigation provides excellent analysis of logistics workflow and is recommended reading for that alone.

The court determined that the shipper had failed to take account of the nature of the cargo and the specific circumstances of this shipment. Equally, it found that the non-vessel operating common carrier (NVOCC) had failed to act on the extensive information available from the shipper and specifically did not disclose key information about the cargo to the carrier. Following this reasoning, both the shipper and NVOCC were found strictly liable under the U.S. Carriage of Goods by Sea Act (COGSA). The matter remains subject to appeal, unresolved 10 years on, displaying one of the long-tail consequences of such incidents.

Regulation responds to incidents

Aside from the litigation, there were lessons learned from this tragic incident that were subsequently incorporated into the relevant regulations, the International Maritime Dangerous Goods Code (IMDG Code). In two iterations of the IMDG, new United Nations numbers were created for this type of product, within subdivision Class 4.1 for polymerizing substances, followed by additional requirements for cargoes classified in this way to be transported under temperature control. However, the process of amending the IMDG Code (and related United Nations recommendations on the transport of dangerous goods, commonly known as the U.N. model regulations or “Orange Book”) is a lengthy one, and these changes took several years to become mandatory. Worryingly, TT Club was alerted at the end of 2021 that the subject commodity was still being declared incorrectly under the previous Class 9 U.N. number.

Errors, misunderstandings, misdeclarations, and inadequate packing and securing lie at the heart of many significant incidents, both at sea and in storage facilities. As ultralarge container ships have continued to increase in size — the largest currently more than three times the capacity of MSC Flaminia — the potential for economic, human and environmental impacts rises in proportion.

IMDG Code 101

The IMDG Code was initially developed as an international code for the maritime transport of dangerous goods in packaged form approaching six decades ago. The aspiration was to improve practices, enabling the safe carriage of dangerous goods and mitigating the risks of disasters, injuries, loss of assets and environmental damage. Furthermore, training for all those involved in entering dangerous goods cargo into the maritime supply chain has been mandatorily applicable since Jan. 1, 2004, under the Safety of Life at Sea (SOLAS) Convention.

Since its initial introduction, the IMDG Code has been updated on a biennial cycle to maintain pace with the ever-changing needs of the industry as well as respond to the lessons learned from incidents. Amendments to the IMDG Code typically originate from two sources: proposals submitted directly to the International Maritime Organization by member governments or industry bodies with consultative status, as well as amendments to take account of changes to the U.N. model regulations, which set the basic requirements for all transport modes.

Needless to say, ensuring compliance with the latest mandatorily applicable version of the IMDG Code is essential as a minimum standard for all those shipping dangerous goods by sea. Indeed, the MSC Flaminia judgment even made clear that the regulations merely set the baseline, an important statement for any entity or individual inclined to rely solely on the “letter” in relation to consigning dangerous goods.

‘Book it right and pack it tight’

Recognizing the importance of getting it right, TT Club has again teamed up with the U.K. P&I Club in order to support all participants in the maritime supply chain in publishing a detailed guidance document on the IMDG requirements: “Book it right and pack it tight.” This version of the guidance reflects the updates in Amendment 40-20 of IMDG, which has been available to be applied voluntarily since Jan. 1, 2020, but became mandatory on June 1 of this year. 

“Book it right and pack it tight” provides key insights for all participants in the freight supply chain responsible for preparing unitized consignments of dangerous goods for carriage by sea. The guide is intended to support shippers, forwarders, shipping line booking personnel and those who pack dangerous goods into cargo transport units (CTUs) in the technical aspects of the IMDG Code. The aspiration is to influence behaviors and levels of compliance by assisting all involved to understand their own duties and the duties of their contractual partners through the global supply chain.

The guidance is split into two parts. Part A of the guide breaks down the process of preparing and booking the cargo into practical steps and explores the roles and requirements of those involved in each step:

  • Step 1: Classification of dangerous goods.
  • Step 2: Selection of packaging.
  • Step 3: Marking and labeling the packages.
  • Step 4: Preparing the transport document for booking with the shipping line.
  • Step 5: Applying the segregation rules.
  • Step 6: Packing the cargo transport unit.
  • Step 7: Producing the cargo transport unit-packing certificate.

Part B provides background information to the IMDG Code, classification and references to further materials.

Cargo integrity matters

Closely related to the issues specific to dangerous goods are the broader issues of packing cargo in general. While the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) remains nonmandatory international law, it is clearly referenced from the IMDG Code. 

Equally, “Book it right and pack it tight” refers to the CTU Code as the definitive industry code of practice on how to pack and secure cargo of all types in cargo transport units, imploring all operators to adopt the principles therein, thus improving operational practices.

Peregrine Storrs-Fox is the risk management director for the TT Club, a provider of mutual insurance and related risk management services to the international transport and logistics industry. 

Congressmen Introduce Bill to Eliminate Carbon Emissions from Ships Calling in U.S.

With the IMO yet to finalize its climate change strategy, two Congressmen from California have introduced a bill seeking to eliminate greenhouse gas emissions from international ships calling at U.S….

With the IMO yet to finalize its climate change strategy, two Congressmen from California have introduced a bill seeking to eliminate greenhouse gas emissions from international ships calling at U.S....

 Slow Steaming May Be The Surest Way For An Aging Fleet To Meet Ever Changing Emissions Standards

By Sarah McFarlane LONDON, July 11 (Reuters) – If shipping is the beating heart of global trade, its pulse is about to get slower. Faced with uncertainty about which fuels to use in the…

By Sarah McFarlane LONDON, July 11 (Reuters) – If shipping is the beating heart of global trade, its pulse is about to get slower. Faced with uncertainty about which fuels to use in the...

IMO MEPC78: Here’s What You May Have Missed

The International Maritime Organization has concluded its latest meeting of its key Marine Environment Protection Committee (MEPC), known as MEPC78. The IMO’s MEPC is made of all 175 member states…

The International Maritime Organization has concluded its latest meeting of its key Marine Environment Protection Committee (MEPC), known as MEPC78. The IMO’s MEPC is made of all 175 member states...

IMO Concludes MEPC78

The UN International Maritime Organization’s has concluded its latest meeting of its key Marine Environment Protection Committee, known as MEPC78, held virtually from IMO headquarters in London. The IMO’s MEPC…

The UN International Maritime Organization’s has concluded its latest meeting of its key Marine Environment Protection Committee, known as MEPC78, held virtually from IMO headquarters in London. The IMO’s MEPC...

World Ocean Day brings shipping decarbonization top of mind

A red and white container ship is traveling on the ocean with the shoreline in the background.The International Maritime Organization and a California congressman look for strategies to lower emissions on World Ocean Day.

A red and white container ship is traveling on the ocean with the shoreline in the background.

Using just-in-time shipping to optimize speeds on ocean voyages could save 14% on fuel consumption, according to a new International Maritime Organization study.

Global and local organizations and governments are looking for ways to decarbonize shipping. Wednesday, World Ocean Day, FreightWaves looks at the IMO study released Tuesday and news that a California congressman plans to introduce a clean shipping bill in June.

Leaders of the IMO’s Marine Environment Protection Committee are meeting in London this week to discuss regulations and how to decarbonize shipping globally.

The IMO’s current target to reduce the shipping industry’s total greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels falls short of the Paris Agreement.

Impacts of just-in-time shipping on emissions

The study looked at how using just-in-time shipping for the entire voyage, for the last 24 hours and for only the last 12 hours of the trip impacted fuel consumption and GHG emissions.

The results concluded that shippers could save an average of:

  • 14.16% on fuel consumption per voyage while optimizing speed for the entire journey.
  • 5.9% on fuel consumption while optimizing speed for the last 24 hours of the voyage.
  • 4.23% on fuel consumption while optimizing speed for only the last 12 hours of the voyage.

“This indicates that implementing just in time over the last 12 hours of a voyage can already greatly contribute to fuels and emissions savings,” the IMO said.

Decreasing fuel consumption is something that benefits shippers’ bottom lines and the environment.

The study was commissioned by the IMO-Norway GreenVoyage2050’s Global Industry Alliance to Support Low Carbon Shipping and undertaken by MarineTraffic and Energy and Environmental Research Associates.

“In fighting climate change, global shipping has a steep mountain to climb, and we need to pull all levers to deliver in line with the Paris Agreement. The study underlines that while we work to accelerate and scale the availability of the future green fuels, in the short-term significant emissions reductions can be achieved by bringing vessels, terminals and ports together to exchange standardized data and facilitate just-in-time arrivals,” Andreas van der Wurff, port optimization manager at A.P. Møller – Maersk and chair of the Low Carbon GIA Ship-Port Interface workstream, said in a statement.

California congressman aims to decarbonize shipping

The U.S. is lagging behind Europe and other regions when it comes to decarbonizing carbon-intensive sectors such as shipping. Rep. Alan Lowenthal, a Democrat serving California’s 47th district, aims to change that.

Lowenthal, who represents the Port of Long Beach, announced Wednesday that he plans to introduce a bill sometime in June that is aimed at “zeroing out pollution from all ocean shipping companies that do business with the U.S.”

The soon-to-be introduced clean shipping bill seeks to:

  • Protect the health of communities near ports.
  • Address environmental injustice.
  • Provide solutions to the climate crisis.

“I have worked to clean up the maritime industry for my whole career, dating back to my earliest days on the Long Beach City Council,” Lowenthal said. “This bill continues that struggle. We must face the fact that we are at a tipping point in the climate crisis; we must move beyond fossil fuels, including in ocean shipping.”

Lowenthal continued: “For too long, the federal government has turned a blind eye to the immense pollution created by the shipping industry and failed to create regulations to clean up the industry. We have made progress, but communities like mine still suffer under the impacts of shipping on their air, oceans, climate and health. The technology now exists to end port pollution and clean up the shipping industry.”

Click here for more FreightWaves articles by Alyssa Sporrer.

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All Eyes on IMO’s MEPC78

All eyes will be on the International Maritime Organization (IMO) when its Maritime Environmental Protection Committee (MEPC) convenes virtually next month for its MEPC78 meeting (June 6 – 10). Though…

All eyes will be on the International Maritime Organization (IMO) when its Maritime Environmental Protection Committee (MEPC) convenes virtually next month for its MEPC78 meeting (June 6 – 10). Though...