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RIGHT ON TIME SHIPPERS LET THE TRAIN TAKE THE STRAIN ADR 2023 READY TO ROLL DEALING WITH DISRUPTION ALTERNATIVES IN MARINE FUEL

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I N F O R M AT I O N

D A N G E R O U S

S O U R C E

G O O D S

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I N T E R N AT I O N A L

P R O F E S S I O N A L

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UP FRONT 01

EDITOR’S LETTER

Is globalisation coming to and end and, if so, how do you feel about it? To recap, for those who haven’t been paying attention, globalisation across industrial sectors, including the chemical industry, has been unstoppable for several decades now, supported not least by the re-emergence of China as a global manufacturing centre as its economy opened up, and allowed by the wide availability of low-cost ocean transport across all trade routes. Over the past two years, though, that has all changed. The Covid-19 pandemic has exposed underlying weaknesses in the global trade system. Intermittent lockdowns disrupted supply chains, reduced end-user demand, and highlighted the tight labour supply situation in many parts of the world. Then there was the grounding of the containership Ever Given in the Suez Canal, which illustrated very clearly the immense vulnerability of global supply chains that drive world trade and globalisation – and how quickly those companies that rely on those trades can fall into financial difficulty. That incident also threw the spotlight on the container liner operators, who by now were finding that the severe disruption, longer transit times and port congestion were actually making them a whole lot of extra cash. Vessels were waiting for weeks

inflated) rates for slots. For once in their lives, they were making some serious money – and perhaps not surprisingly that aroused the ire of those who were paying more but getting a much poorer service, with late deliveries and increasing reluctance on the part of the carriers to accept what they see as ‘difficult’ cargoes. That often means dangerous goods, which require extra care in handling and stowage, and heavy containers in general – which covers pretty much all tank containers. Indeed, we have also heard reports that the carriers are refusing all third-party containers, using their precious capacity only (or primarily) for their own cargo. Some have put part of their earnings into investments in other links in the supply chain, suggesting perhaps that they are looking to take more control over cargo. There has been some push-back: a few anti-trust cases have emerged, mainly involving smaller, regional operators. And the US Congress worked pretty quickly (by its standards) to get the Ocean Shipping Reform Act passed. That goes some way towards addressing shippers’ concerns but only for US-based companies and, as NACD says in this issue, does not really go far enough. It also fails to address

off some ports, unable to get into a berth to load or discharge, prompting operators to reduce sailing speeds – there was not much point going full steam ahead if the ship was just going to hang around at the end of its trip, and going slower meant lower fuel bills. That resulted in an effective reduction in carrying capacity, allowing operators to command higher (some might say

other shortcomings in the international supply chain caused by inadequate or ageing transport infrastructure. We seem to be in the position now that the cost of moving goods around the world has become so high that it might make sense to source them locally, even if the cost of those goods is higher. Have the lines shot themselves in the foot? Time will tell. Peter Mackay

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02 UP FRONT

JOHN V CURRIE 12 DECEMBER 1941 – 13 JUNE 2022

IT WAS WITH great sadness that we learned of the death at the age of 80 of John V Currie, known to all as Jack, at his home in New York state in June. For those in the hazardous materials world, Jack was best known as CEO and owner, along with his wife Lara, of Currie Associates, which offered training and consultancy services and also administers the Council on Safe Transportation of Hazardous Articles (COSTHA) and the International Vessel Operators Dangerous Goods Association (IVODGA). Jack was a familiar face at the regulatory meetings, representing COSTHA and IVODGA members at the relevant sub-committees of the IMO in London and at the UN Sub-committee of Experts in Geneva. But those activities were only part of his near 50-year career in

development and implementation of reasonable and prudent controls in the transport of hazardous materials, working with legislative and regulatory staff at state, federal and international levels, speaking as an industry expert at several hearings conducted by the US Senate and US House of Representatives, developing learning materials and training courses, and ensuring that COSTHA and IVODGA provided industry with the information and tools it needs to ensure compliance. With his extensive contacts and infectious personality, Jack was adept at bringing people together and getting them to share their experiences and concerns. He was also generous with his knowledge, aware that it is only by passing on the learnings of a lifetime career that subsequent generations will be able to continue to improve safety

hazardous materials. Graduating from the New York State Police (NYSP) Academy in 1965, he spent 30 years with the force, retiring in 1986 as Technical Sargent in charge of the state-wide Hazardous Materials Enforcement Unit. He subsequently lent his expertise to the American Trucking Associations (ATA) and Digital Equipment Corp (DEC) before founding Currie Associates in 1990. Throughout his career, Jack was eager to play his part in the

in the transport of hazardous materials. Through it all, Jack was an adventurous soul and those who knew him will perhaps not be surprised to learn that as a young man he was a member of the US Olympic bobsleigh team and also owned a restaurant. Jack and Lara retired for the last time in 2020 to spend time with their family, friends and dogs. HCB sends its sincere condolences to Lara and to their children and grandchildren.

HCB MONTHLY | JULY-AUGUST 2022

UP FRONT 03

CONTENTS VOLUME 43

•

NUMBER 07

UP FRONT

HGK launches latest addition

Safe as houses

Letter from the Editor

Going for gas

Obituary – Jack Currie

Utkilen opts for dual-fuel

See through the fog

30 Years Ago

News bulletin – tanker shipping

Understanding mist hazards

One Time, In Full

Learning by Training

Canada checks AN regulation

48 50

The wrong profile TANKS & LOGISTICS

How supply chain disruption affects risk

Not so flexible CHEMICAL DISTRIBUTION

ITCO responds to MSC plans

Chemicals can’t wait

Get behind the wheel

NACD applauds OSRA passage

Here comes the flood Houston expansion will generate traffic

Blackmer pumps for phenol

Five card trick

Fort Vale adds rail equipment

Seaco’s view on North America

News bulletin – chemical distribution

One for the team Hoyer builds for Evonik Talk to the truck SAP adds Implico concept

News bulletin – tanks and logistics

Gas fleet tables

Look to the centre Collaboration the route to net zero

Conference diary

Tomorrow’s tank barge

Managing Editor Peter Mackay, dgsa Email: peter.mackay@chemicalwatch.com Tel: +44 (0) 7769 685 085 Advertising sales Sarah Smith Email: sarah.smith@chemicalwatch.com Tel: +44 (0) 203 603 2113 Publishing Manager Sarah Thompson Email: sarah.thompson@chemicalwatch.com Tel: +44 (0) 20 3603 2103

Canada publishes registration proposals

News bulletin – regulations

Not otherwise specified

NEXT MONTH 45

Cash back rewards Stolt Tankers enjoys recovery

Late corrigenda for IMDG Code

BACK PAGE

COURSES & CONFERENCES 22

Fleet for the future 18

Roy Boneham on FRP tanks

Who goes there? 36

TANKER SHIPPING LPG operators look ahead

Stop press 34

Things will get better

Azelis continues on acquisition path

WP15 finalises ADR 2023 Letter to the editor

Catch that train 13

REGULATIONS That’s a wrap

A sticky problem

Not done yet CBA looks at Brexit impact

ECTA acts on driver shortage

What’s new in storage terminals IBC manufacturing update

SAFETY Incident Log

Publishing Assistant Francesca Cotton Designer Petya Grozeva Chief Operating Officer Stuart Foxon Chief Commercial Officer Richard Butterworth

European road tanker review 46

TSA Insight magazine

CW Research Ltd Talbot House Market Street Shrewsbury SY1 1LG

ISSN 2059-5735 www.hcblive.com

HCB Monthly is published by CW Research Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect. ©2022 CW Research Ltd. All rights reserved

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30 YEARS AGO A LOOK BACK TO JULY 1992

THE JULY 1992 number of HCB was not badged as a North American issue in particular, as it is today, but it still led with a report from contributor Susan Saltzman on discussions at the HMAC Annual Conference, which had taken place in May in Arlington, Virginia. These days HMAC is DGAC and its annual event has shifted to the fall but in those days it was the main event for learning about North American regulations. And the 1992 conference generated a significant surprise. Mexico, which had hitherto only regulated rail transport in its domestic affairs and even that not very stringently, announced that it was to adopt the provisions in the US Hazardous Materials Regulations (HMR) for road transport in the country. The impetus for this change of heart appeared to have come from the deadly pipeline explosion in Guadalajara in April, which killed more than 300 people – although quite why a pipeline incident should lead to road regulations remains unclear. In his comment piece, editor Mike Corkhill wondered why the Mexican authorities had not take the step after the even more deadly LPG explosion in Mexico City in 1984. He also noted that there was to be a very short implementation period, with industry given only six months to comply, and pondered if this – not unprecedented – kneejerk reaction by the regulators was going to lead to good regulation. Mexico was not alone in taking such steps, though its counterparts in Canada had allowed some time for reflection after the Mississauga train derailment in 1979, which released a large cloud of chlorine and necessitated the evacuation of nearly a quarter of a million people.

HCB MONTHLY | JULY-AUGUST 2022

That incident had also spurred the nation’s chemical industry to clean up its act and, in order to demonstrate that to the public, had come up with the idea of ‘Responsible Care’. That concept was quickly taken up south of the border and by 1992 the US Chemical Manufacturers Association (CMA) made adherence to the programme a condition of members. With its own regulatory regime more well established, the US was at the time keeping up to date with technical developments and, as Al Roberts, associate administrator at the Research and Special Programs Administration (RSPA, the forerunner of PHMSA), explained, one priority was to get those new-fangled IBCs covered in HMR. The July 1992 issue also contained a feature on IBCs, mainly the metal units still then widely used. Two other rulemakings going through the regulatory mill involved the idea of adopting IMO’s requirements for marine pollutants for all transport modes in the US, and the first appearance in HMR of provisions requiring the training of personnel involved in the movement and handling of hazardous materials. On his retirement from RSPA some years later, Al Roberts took up the invitation to become president of HMAC, so he could continue to use his expertise in the field; in 1992, Susan Saltzman had also recently retired from her long-standing role as hazardous materials consultant at the Du Pont Company and had started offering her own expertise as a consultant to the wider industry. Her efforts to improve regulatory compliance were recognised during the HMAC Annual Conference when she was named recipient of that year’s George L Wilson Award.

UP FRONT 05

30 YEARS AGO A LOOK BACK TO AUGUST 1992

THIRTY YEARS AGO HCB had a bigger editorial team and a publisher hungry for income so we did not get any time off over the summer and had to get together another full issue to go out in August – notwithstanding the widespread absence of readers that month, particularly in much of Europe. Still, as ever there was plenty to talk about, beginning with the European Commission’s belated realisation that, if the seemingly unstoppable increase in the volume of freight traffic were to be handled, more use should be made of shortsea shipping. Today, the advantages offered by greater use of ro-ro and ro-pax vessels around the coast of Europe seem to be being discovered all over again, as a way not only of avoiding road congestion and the endemic driver shortage but also of reducing greenhouse gas emissions in the transport of freight. Elsewhere in the August 1992 issue there was a lot of coverage of the bulk liquids storage sector, with reports from the ILTA conference and trade show in Houston in June. There was one presentation made there that was perhaps an early indication of the way that the chemical industry was going in its adoption of the Responsible Care principles, with Union Carbide’s European logistics director Peter Pilkington explaining how Cefic was developing its Safety and Quality Rating System (SQRS) in the chemical distribution chain. That system has over the years morphed into SQAS, applying to all sectors of the chemical logistics chain and these days also covering issues surrounding security and sustainability. In 1992, Cefic was already planning to establish the Chemical Distribution Institute (CDI) to service the Terminal Rating System

(TRS), with the aim of having it up and running by mid-1993. It took a little longer than that and, initially, CDI only dealt with the maritime sector. Its remit soon widened, however, and it is still offering terminal audits through the CDI-T scheme around the world. Pilkington also mentioned that Cefic was working closely with the US Chemical Manufacturers Association (CMA) to ensure that standards and procedures in the US and Europe would be comparable. Further south, the government of the Australian state of Victoria was still investigating the devastating fire at the Terminals Pty storage terminal at Coode Island, Melbourne; part of that investigation included consideration of the possible benefits of moving the chemical storage facilities – of which there were seven at Coode Island – to another location. In the event, that relocation never happened and the ‘island’, which has been connected to the mainland since the 1930s, remains a focus for port and terminal activities. In 1992, the Victoria police were strongly considering sabotage as the cause of the fire, which started in a storage tank containing acrylonitrile but spread rapidly through a common vent system to other tanks containing benzene, cyclohexane, phenol and other chemicals; it created a dense and toxic cloud that floated over nearby residential areas before being dispersed by strong winds. As an adjunct to our report on that incident, HCB also noted that the responders had to invent ways to deal with the massive volume of firewater run-off from the site, something that had to be learned all over again when the Buncefield oil depot in the UK went up in flames in 2005.

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ON TIME, IN FULL BY PAUL GOOCH

MOVE YOUR ASSETS!

IN 1996 WE we were invited to speak at a Lloyds–Richardson Lawrie conference in London on the chemical industry’s expectations from the chemical and gas tanker market. At the time we had responsibility for Dow

There was no question it was an impressive piece of state-of-the-art marine engineering, but the design raised some questions: 1. What was the new-build cost of such a vessel? With all the shipbuilding

Chemical Europe’s logistics, which included bulk marine chartering. In

subsidies and tax breaks at the time such a question was almost impossible

preparing for the presentation we engaged our network in the industry to

to answer, but the consensus view of the experts we contacted was well

research the subject.

north of $100m (in 1996). We asked ourselves if the chemical industry, ever

By chance the timing of our research coincided with the delivery to Stolt Parcel Tankers of the M/T Stolt Innovation, the first in a series of ten

focused on cost control, would be able to afford it? 2. However, more importantly, the configuration of 42 integral and four

37,000-tonne so-called Innovation-class chemical parcel tankers that would

deck tanks was intriguing. The total tank capacity amounted to 38,600 m3,

be delivered through 1998. The new ship incorporated features that set new

which meant that, given the number and range of tank sizes, there were

standards of environmental protection, safety and operating efficiency. M/T

inevitably some very small tanks in the configuration. We learned during

Stolt Innovation had 42 integral and four deck cargo tanks, all constructed

our research that it was estimated that chemical parcel tankers spent

from solid stainless steel, and all fitted with separate pumps and pipelines

approximately 40 per cent of available time (remember that number!)

and able to handle hazardous and corrosive cargoes (IMO Type 1).

in port, loading and discharging, and moving from one tank terminal to

There was some wry speculation at the time that, with all the tanks and

another. Perhaps naively we thought chemical parcel tankers were designed

fittings in stainless steel, when the lifetime of the hull expired they could

to move large volumes of bulk chemicals from A to B, as safely, efficiently,

simply build a new hull around the tanks…

and timely as possible. Lots of small tanks would seem to be inconsistent

HCB MONTHLY | JULY-AUGUST 2022

UP FRONT 07

with this concept - and in the case of Stolt potentially competing with its own ISO tank business. But we digress.

2. The huge hopper railcar fleets in the US are a feature of polymer logistics on that continent. Hopper cars have traditionally made approximately four turns per year. Again, there are special business

WHAT’S SO SPECIAL ABOUT ’40 PER CENT’?

reasons for this number, partly caused by the use of the cars as horizontal

We recently read in CIPS Supply Management News a report from David

silos at production facilities, but customers also hang onto them for

Correll, a research scientist at the MIT Centre for Transportation and

inventory storage, which doesn’t support utilisation of the assets.

Logistics, about the 80,000 shortfall of truck drivers in the US. He reports

3. ISO tanks on intercontinental traffic make three to four trips per year

that whereas drivers are allowed to drive up to 11 hours per day, they

and, despite all the efforts to reduce empty repositioning, when cleaning

actually drive for around six and a half hours per day. Around 40 per cent of

and maintenance and finding compatible cargoes in their characteristically

their time is spent waiting to pick up or drop off cargo at warehouses.

triangular trades is taken into account, utilisation of the assets is modest.

So the problem is not necessarily a shortage of drivers, but the hours of

However, intra-continental turns, usually based on intermodal operations,

driving and, hence, the sub-optimal utilisation of both the human and

are significantly better.

physical assets. Carriers who are managing dwell times and turning their assets faster will ultimately, probably be preferred partners for shippers.

Supply chain managers are facing significant challenges as they cope

Achieving success in this respect often requires ‘harmonising’ operations

with the effects of the pandemic, lockdowns in China, sky-high freight

between shippers, brokers, and tracking companies. The old chestnut of

rates, and the war in Ukraine as they together impact various supply chain

collaboration raises its head again.

issues such as product availability, supply demand balances, and disrupted international trade. Despite digitisation initiatives, efforts to improve

Interestingly JB Hunt’s Shelley Simpson, (CCO and EVP of People and

visibility and predictability, attention to risk management, supplier due

Human Resources), speaking at a recent FreightWaves event, Future

diligence, contingency planning etc, our belief is that much of their time

of Supply Chain, addressed the same issue of asset utilisation and

in the near future will be spent on battening down the hatches, going back

collaboration. Simpson reported that roughly one-third of drivers’ time

to basics, keeping it simple, strict cost control, and staying focused on

each day is unproductive due partly to unnecessary waiting times but also

customers and suppliers.

the inability to efficiently match freight with capacity through collaborative processes. Unfortunately, there are many other examples of under-utilized logistics

Amongst all their current challenges they might want to include consideration of how they could more effectively and efficiently move their assets! 40 per cent seems to be a number offering plenty of potential.

assets - too many to mention in this article. However, to name just a few: 1. Lars Jensen of Vespucci Maritime reported this week on the HapagLloyd’s recent quarterly results. As usual Lars dug into some of the small

Paul Gooch

print and compared their first quarter-on-quarter volume growth between

The Logical Group GmbH

2019 (pre-Covid) and 2022. Shipped volumes grew by 2 per cent, whereas

3 April 2022

their container fleet grew by 19 per cent. We know there are good reasons for this with logistics bottlenecks and dislocated supply chains, but this disparity

PS – It’s good to see that M/T Stolt Innovation is still safely plying her trade,

in growth is stunning and a reflection of the industry as a whole today.

last seen at anchor in the US Gulf, waiting to enter the port of Corpus

Obviously port dwell times are having a severe impact on container utilisation.

Christi. More lost time?

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08 UP FRONT

LEARNING BY TRAINING by Arend van Campen

INFOWARS

FINALLY AFTER TWO years of lockdowns, panic, Covid restrictions, lost friendships and other drama, the 2022 StocExpo was allowed to take place again in Rotterdam. A great event it was too. People were more relaxed, having survived the pandemic, but an uneasy feeling of uncertainty could be noticed. I wrote earlier about the Uncertainty Principle, so today I don’t want to scare you, but I’d like to tell you about probabilities and the way we people can create and influence them. A strange and little known science behind this is probability theory. Let’s say you are requested to perform a job or assignment for a client, but can’t attend because you are mixed up in a legal battle at home. Or, let’s assume you actually do not want to do that job, because you are afraid of the warzone you will be working in. There are three options: 1 - You cancel the job and lose your client; 2 - You make up an excuse; 3 - You tell your client the truth and confirm that, because of your situation, you won’t be taking the assignment, despite having confirmed it earlier. How does probability work? Can probability be decreased or increased by us? Yes! We live in a complex reality. Complexity Theory states that maximum control of a situation can only be achieved with a

of information. Basically it demonstrates that only ‘truth’ delivers more probabilities and thus your chances of being understood. People and companies attending StocExpo are not yet dealing with these useful sciences. People design reductionistic engineered solutions to mechanistic problems but can’t comprehend the significance of information theory just yet. This will become troublesome, because the uncertainty principle that prohibited people from attending this important gathering remains unaddressed. We can design a smart valve, a robotic device to measure material stress or create an alarm system when a shore tank may be overfilling. We can build the fastest electric cars and have computers do the difficult and tedious work for us, but as long as we don’t understand how reality works, we will always be reactive, rather than pro-active. This is due to the way people are educated and trained. Recently I trained several groups in Africa about information as energy, to teach them that they can predict ‘disorder’ and decreased probabilities if there were an information deficit in their operations. They immediately understood. However, when I explain this to Masters of Business or Masters of Science, they don’t believe me. They continue

maximum of relevant information. The author Anthony Wilden writes: ‘We understand that information can be as real as matter-energy.’ This may simplify your understanding or grasp of what I am writing about and have been writing about in this magazine for some time, namely: information is the energy to steer and control reality. You can make the choice to raise the probabilities by increasing the quantity and quality

writing analytical papers and manuals, which can never contain all relevant information because they will always be too late. This is the latest in a monthly series of articles by Arend van Campen, founder of TankTerminalTraining, who can be contacted at arendvc@ tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com.

HCB MONTHLY | JULY-AUGUST 2022

09 UP FRONT

Tank Storage Conference & Exhibition 2022 Presented by TSA

The UK’s leading event for the bulk liquid storage sector

22 September 2022 Coventry Building Society Arena, Coventry, UK Event registration

www.tankstorage.org.uk/conference-exhibition

CHEMICALS CAN’T WAIT USA • NACD PRESIDENT ERIC R BYER APPLAUDS THE PASSAGE OF THE OCEAN SHIPPING REFORM ACT BUT WARNS THAT THERE IS PLENTY MORE TO BE DONE TO FIX THE US’S TRANSPORT SYSTEM IN FEBRUARY 2021, the cracks in the US supply chain became an issue of concern for more than just the American importers and exporters who were already struggling with ocean cargo delays and rising costs. A polar wave that swept through North America hit Texas particularly hard, resulting in immense strain on the power grid, frozen pipelines and deaths, and forcing many businesses to shut down. Businesses did what they could to face the

nation’s supply chain infrastructure. Still reeling from the Covid-19 pandemic and shutdowns, this new threat meant inventories of chemicals began falling for the first time since the great recession and that shipping delays could soon lead to shortages. Chemical distributors process, formulate, blend, re-package, warehouse, transport and market chemical products for over 750,000 customers and were among the industries considered essential during the Covid-19

disruption, with many preparing for a challenging quarter. But by March, chemical distributors realised that what began as a shortage of shipping containers and labour at certain West Coast ports, exacerbated by weather, was quickly morphing into a dangerous and long-term breakdown of the

crisis. Any shipping delays distributors experience have broad implications for the entire supply chain. It immediately became apparent that continued lengthy delays in glycerine, a common ingredient in pharmaceutical drugs, including Covid-19 vaccines and other medications, as well as

HCB MONTHLY | JULY-AUGUST 2022

chemicals needed for soaps, detergents, household and industrial cleaners, could not only slow economic recovery but also jeopardise public health. The National Association of Chemical Distributors (NACD) and other shippers in the US called on the Biden administration and lawmakers on Capitol Hill to immediately take action to clear the intermodal freight bottlenecks that were slowing the import and export of goods, straining American businesses, and threatening serious shortages for consumers. More than a year later, on 16 June 2022, President Biden signed S.3580, the Ocean Shipping Reform Act of 2022, into law, empowering the Federal Maritime Commission (FMC) to hold ocean carriers accountable for high shipping rates, anti-competitive practices and arbitrary decision-making. A PERFECT STORM Before the shipping crisis emerged, long port delays were not common in the US. But labour shortages and increased demand for goods resulting from coronavirus shutdowns and government spending, severe weather, antiquated port infrastructure, and rail and

CHEMICAL DISTRIBUTION 11

trucking issues left too long unaddressed, created the perfect storm in the US and across the oceans. Government stimulus increased consumer spending on goods at a time when fewer services were available, resulting in a surge of imports. International shipping became much less reliable, with delays for some shipments reported to be as much as 150 days. By October 2021, freight prices had skyrocketed by more than 400 per cent along the most critical routes and many shelves were left empty across the country. Ocean carriers were levying exorbitant detention and demurrage fees on customers for containers even though shippers were physically unable to retrieve freight from the ports due to congestion, labour shortages and limited port hours. Carriers – who cemented historic, recordbreaking profits during the pandemic – began refusing transport of hazardous substances essential to everyday health and safety. Antiquated port infrastructure, railroad and ocean shipping mergers and consolidations, a lack of competition in the freight rail industry, and the ongoing truck driver shortage only worsened the situation.

• Shift the burden of proof for demurrage and detention charges to the international ocean carriers • Require international ocean carriers to report to FMC regarding how many empty containers are being transported • Stop retaliation by international shipping companies against exporters and importers • Improve management of chassis, the specialised trailers used to transport ocean containers over the road.

PATH TO PASSAGE In March 2022, President Biden announced a “crackdown on those companies overcharging American businesses and consumers” in his State of the Union address. This set a marker of oversight and reform of the global ocean shipping industry as a key administration priority. On the path to passage of the Ocean Shipping Reform Act (OSRA), the US Congress showed a level of bipartisan consensusbuilding not regularly seen today when the House passed the version of the bill that the Senate had unanimously passed earlier. With President Biden’s signature in June, OSRA addresses many of the elements of the perfect storm that helped to spur and

NO SINGLE SOLUTION In the first months of 2022, nearly 85 per cent of NACD members who responded to to the Association’s latest ocean cargo survey were still reporting problems with importing or exporting freight by water (down from 100 per cent in the fall of 2021). Far too many respondents are still experiencing price increases far in excess of the inflation rate, long delays to receive their freight and resulting lost revenues. It is still difficult to ship hazardous material products and delays for imports of materials defined as hazardous have increased by almost 10 per cent. As we begin to navigate the second half of 2022, new challenges are arising that threaten to impede any forward momentum. On the west coast of the US, negotiations between dockworkers and our country’s largest ports were not locked down before the contract expired on 1 July. Both sides are committed to reaching an agreement, but if talks do break down the disruptions could be calamitous to an already-stressed supply chain. At the same time, import volumes at east and Gulf coast ports continue to surge, leading to record numbers of ships anchoring outside of many of those ports. Once cargo is moved off ships, timely, safe and reliable freight rail and truck transportation is essential in ensuring products reach their final destination on time.

progress in addressing freight rail issues, although the agency still has its work cut out for it to reform the rail system and increase competition. Over-the-road transportation by truck is also in a precarious situation in the US. Our nation’s long-acknowledged truck driver shortage is directly impacting chemical distributors’ ability to provide on-time product delivery now more than ever. The slow replacement of retiring drivers contributes to the shortage because commercial drivers are not permitted to move goods between states until they have reached 21 years of age. Compounding the issue, state-level rules went into effect in California that could force two-thirds of the truck drivers serving our largest ports in Los Angeles, Long Beach and Oakland off the road, at least temporarily. The truck driving industry has traditionally relied on independent contractors. California AB 5 sets up a three-part test truckers must pass to be considered contractors; if those conditions are not met, they must be categorised as employees. OSRA passage is a welcome first step to address the supply chain crisis. Shippers across the country are eagerly anticipating swift implementation of the law. However, it’s clear that there is no single solution to solve our ongoing supply chain crisis. While the US government worked quickly to pass OSRA, the US chemical distribution industry has been trying for too many presidential administrations and sessions of Congress to get a comprehensive infrastructure package passed that could modernise port infrastructure. There has been some initial relief on the shipping prices and delays, but we aren’t out of the woods yet. NACD continues to urge for greater freight rail competition and a strong and engaged STB to improve the efficiency and effectiveness of our nation’s freight rail system. We’ve known for years that the truck driver shortage was hitting

exacerbate this crisis, including, among other improvements: • Stop international ocean carriers from unreasonably declining American cargo • Direct FMC to investigate ocean carrier business practices and apply enforcement measures

Many US Class I railroads operate as near-monopolies and can charge whatever rates they want to transport cargo. NACD has long advocated for a strong and engaged Surface Transportation Board (STB), the federal agency overseeing our nation’s railroads. Recently STB has begun to make

critical mass, and year after year have worked to get the DRIVE-Safe Act passed to increase the pool of eligible drivers. These issues must be addressed to truly fix America’s broken supply chain and keep critical goods moving across the US and throughout the world. www.nacd.com

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HERE COMES THE FLOOD INFRASTRUCTURE • MASSIVE INVESTMENT AT THE PORT OF HOUSTON PROMISES TO DELIVER A LOT MORE PRODUCT. MATLACK LEASING SUGGESTS HOW ALL THIS MIGHT BEST BE TRANSPORTED THE HOUSTON AREA represents the largest petrochemical manufacturing region in the US and the Port of Houston is the country’s largest exporter of petroleum, oil and chemical products. In terms of waterborne tonnage, it is the nation’s largest port – and about to get even busier thanks to a $142.5m investment as part of the Infrastructure Investment and Jobs Act, known as Phase 3 of Project 11. Project 11 is a six-phase programme to upgrade the waterway and infrastructure between Houston and Galveston, including the dredging, widening and modernisation of the Houston Ship Channel, which is already home to some 200 public and private terminals. The work anticipates demographic growth and increased demand for imports, as well as the

HCB MONTHLY | JULY-AUGUST 2022

larger vessels arriving in Houston through the newly widened Panama Canal. According to the Port of Houston, the work will not only add greater capacity but will also maximise operational performance, while integrating new technologies to add value, promote sustainability and improve resilience. What this means for the bulk liquid supply chain is that there will be an increase in the number of intermodal containers, tank containers and bulk refined products and chemicals to be handled in and transported through the Port of Houston, with a corresponding need for an increase in the availability of appropriate transport equipment. In particular, says Matlack Leasing, this will mean higher demand for tank chassis and chemical trailers (MC 307, DOT 407, DOT 412,

etc) and drop-frame tank container chasses to move the inbound and outbound cargoes. PLAN AHEAD Anticipating this increased demand, Matlack says that working with a local lessor to provide the necessary chemical transport equipment can offer flexibility during the expansion phase and to cope with the need to increase locally operating fleets in the post-construction period. “For chemical manufacturers, distributors and logistics companies, building relationships now will provide the equipment required to take advantage of future business opportunities flowing through the Port of Houston and in the Gulf Coast region,” Matlack says. There are some basic considerations when moving chemicals on the roads, with the proper equipment vital: MC 307 and DOT 407 tank trailers offer stability, a high load-bearing capacity and stainless steel tanks, lined if needed, to accommodate hazardous chemicals. “Always use the proper equipment for your product and route,” Matlack warns. It is also important to have an experienced driver or operator who knows - and, importantly, follows – state and federal regulations applicable to the transport, storage and handling of hazardous materials. There are some other considerations particular to doing business in the Gulf Coast region, not least the regular hurricane and flooding events that take place along the coast. As we have seen in recent winters, snow and ice are not unknown this far south. “When transporting chemicals, it’s important to know forecasted weather conditions, emergency routes and parking areas that will accommodate chemical trailers and tank chassis in an emergency,” Matlack advises. Matlack Leasing specialises in providing tank trailers and tank chassis under lease arrangements, with an extensive fleet of different types of tank. It also has older tanks suitable for in-plant use or for long- or short-term storage of product. www.matlackleasing.com

CHEMICAL DISTRIBUTION 13

NOT DONE YET BREXIT • THE UK’S DEPARTURE FROM THE EU AT THE START OF 2021 COINCIDED WITH SOME VERY DIFFICULT EXTERNAL CONDITIONS. HOW ARE THINGS 18 MONTHS LATER, FECC AND CBA ASKED? IN THE PAST few decades, rapid globalisation brought with it a major shift in chemical manufacturing, with production capacity migrating east. A highly optimised, efficient and cost-effective global supply chain allowed international chemical corporations to invest in new facilities, not least in China, which now accounts for some 40 per cent of global chemical revenue. Globalisation feeds off the availability of lower land and labour costs, resulting in lower unit costs and increased competitiveness. But it also rests on the possibility to deliver that product to users efficiently, raising risks as a result of an extended supply chain that has to be dependable, efficient and economic. Those risks were highlighted by the emergence of Covid-19 and the resultant lockdowns, port closures and congestion and volatility in both prices and in consumer demand. For chemical distributors and traders in the UK in particular, those problems were compounded last year by the country’s final departure from the EU; their trade body, the Chemical Business Association (CBA), collaborated with the European umbrella organisation Fecc, of which CBA is a member, in a webinar on 20 June to examine how Brexit had affected CBA members so far. CBA was represented on the webinar by its supply chain lead Lisa Robertson, its regulatory affairs specialist Elain McGavin,

different conditions applying for trade with Northern Ireland, something that continues to cause disagreement and ongoing discussions between the UK and the EU. “Other disruptions, such as strikes, political issues, Covid lockdowns and the Ever Given blocking of the Suez Canal for six days impacted the supply chain,” Doggett added. “A rise in energy costs, volatile supply, a massive increase in freight rates and inflation continue to challenge the global supply chain, as well as shortages in drivers, raw materials and equipment. Most recently, we have been facing another global crisis following the Russian invasion of Ukraine. The consequences of this are far-reaching and have wrought further havoc on the already disrupted global supply chain.” DEVIL IN THE DETAIL Many UK exporters are still reporting issues with supply chain disruption both for European and domestic movements, including border

delays, extended delivery times, additional paperwork, delays in shipping and increased freight costs. One of the key issues since January 2021 is the incorrect use or misunderstanding of the requirements for Incoterms, the set of internationally recognised three-letter trade terms, which were not relevant when the UK was still in the EU. An additional issue is that, when leaving the EU, it was the UK’s intention that its domestic regulations would strongly resemble those of the EU. However, the UK would not blindly follow the EU’s footsteps and would actively make decisions with its own best interests at heart. There has been a divergence in regulation, as the EU has made amendments to its regulations, while those in the UK have mainly been at a standstill. At the moment, it is unclear how they will advance. This legislative process proves challenging for international trade. In the case of chemical regulation and Reach, for example, Northern Ireland operates under EU regulation (EU REACH and CLP NI), whilst the UK operates under its own regulation (UK REACH and CLP GB). Chemicals and their supply chains are of major importance for society and the economy. Fortunately, they are on the agenda of politicians and decision-makers. The future will hold more uncertainty and change. Businesses, as well as regulations, will have to keep working to keep up. www.chemical.org.uk www.fecc.org

technical director Douglas Leech, and CEO Tim Doggett, who explained what happened on 1 January 2021: “Overnight, considerations such as rules of origin, commodity codes and Incoterms became standard requirements for trade between the UK and EU. Additionally, the Northern Ireland Protocol resulted in

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14 CHEMICAL DISTRIBUTION

based in Lebanon and Belgium. The company is an independent distributor of specialty chemicals, particularly for industrial markets. The deal will expand and strengthen Azelis’ position in this sector and enhance its geographical footprint in the Middle East, the Levant and sub-Saharan Africa. “This acquisition is an important milestone in our strategy to reinforce our market leadership in the region,” says Dr Müller. “Chemical Partners is a very strong fit to our product portfolio and geographical footprint, significantly strengthening our lateral value chain and positioning us to service more customers and grow with our principals. I look forward to seeing our teams join forces and everything that they will accomplish together.”

AZELIS HAS AGREED to acquire the distribution assets of Chemo India and Unipharm Laboratories, which handle specialty chemicals and ingredients for the CASE, lubricants and pharmaceutical sectors in India. The acquisition will strengthen Azelis’ industrial chemicals portfolio and its footprint in the pharmaceuticals market. “This acquisition is a sound strategic decision that increases the exceptional assets we already have in the Indian industrial chemicals and pharma markets,” says Laurent Nataf, CEO/president of Azelis Asia Pacific. “We anticipate many synergies will arise, allowing us to establish an

distributor of ingredients in the flavours and fragrances (F&F) market in India. The acquisition will provide Azelis with a strong platform in the sector in the Asia-Pacific region, following other acquisitions in the US and France last year. Mumbai-based Ashapura is the leading distributor of F&F ingredients in India, representing more than 225 principals. Owners Ajaykiran and Nayan Gudka will remain to lead the business post-integration. “Acquiring a majority stake in Ashapura is an important element of our global growth strategy that completes our F&F offering across all regions following the group’s

LOOK WEST In the Americas, Azelis has agreed to acquire a majority shareholding in ROCSA Colombia, a specialty chemical distributor active in the life sciences and industrial chemicals sectors in South America. The acquisition will represent a strategic expansion of Azelis’ global footprint and reinforces its growth strategy in the region. “Through the acquisition of ROCSA, we are proudly entering into South America with a market-leading company,” says Dr Müller. “This strategic platform provides Azelis with significant foothold in the market, as well as the opportunity to expand with our customers and principals, in line with our strategic vision in the region. Together, our combined capabilities and expertise will bring forth a compelling range of new and innovative solutions.” Carlos Yaipen, CEO of ROCSA Colombia, comments: “We are looking forward to joining forces with the Azelis team, to serve our customers and principals even better, and expand in the region together. Our marketleading regional expertise, together with Azelis’ strong global network brings us a powerful international reach, which will

attractive combined comprehensive offering that enables us to provide even more innovative solutions and formulation services, enhancing our value proposition to customers and principals.” Also in India, Azelis has agreed to acquire a majority stake in Ashapura Aromas, a leading

acquisitions of Vigon and Quimdis, and allows us to become a market leader in the F&F industry with Ashapura as the cornerstone of our F&F platform in Asia Pacific,” says Hans Joachim Müller, Azelis CEO. Azelis has also agreed to acquire Chemical Partners and its affiliate Chempart Polymers,

benefit our diverse range of principals and customers. We look forward to leveraging Azelis’ leadership in sustainability, digitalisation and innovation, and we’re confident that ROCSA will thrive under Azelis’ ownership.” www.azelis.com

FIVE CARD TRICK ACQUISITIONS • AZELIS HAS CONTINUED TO FEED ITS APPETITE FOR ACQUISITIVE GROWTH, WITH FIVE RECENT DEALS ILLUSTRATING ITS GLOBAL AMBITIONS FOR EXPANSION

HCB MONTHLY | JULY-AUGUST 2022

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

BRENNTAG PARTNERS IN SAUDI

Brenntag has initiated a partnership with Saudi chemical distributor Al-Azzaz Chemical Co via a 75/25 joint venture. Brenntag is represented in the deal by its UAE-based joint venture Trychem, in which it took a majority stake in 2015. “Saudi Arabia is by far the largest market in the Middle East and a key market for Brenntag with a very attractive specialties chemical distribution market size and favourable geographic position in the region,” comments Henri Nejade, COO of Brenntag Specialties. “Therefore, I am excited to partner with Al-Azzaz Chemicals. This joint venture will further strengthen our position in the entire Middle East region.” Fahad Al-Azzaz, CEO of Al-Azzaz Holding, adds: “Partnering with Brenntag’s global presence is a natural next step in our growth journey. We look forward to joining our experience and specialty expertise with Brenntag to deliver a better and tailored service to our customers.” Al-Azzaz Chemical was founded in 1984 and focuses on the distribution of specialty chemicals in Saudi Arabia, particularly in the food, pharmaceutical, plastics, material science and petrochemicals sector. corporate.brenntag.com/en/ HELM IN THE SOUTH PACIFIC

Helm has entered into a 50/50 joint venture with South Pacific Chemical Industries (SPCI), a privately owned industrial chemical manufacturer, processor and service provider based in Singapore and Malaysia. Within the new partnership, SPCI will contribute its extensive knowledge in the production of inorganic chemicals, while Helm will provide its supply chain know-how and commercial expertise through its global market presence. “Being not only a distributor, but a trusted producer in Asia through the help of SPCI

HCB MONTHLY | JULY-AUGUST 2022

is a tremendous breakthrough for Helm,” says Stephan Shnabel, Helm’s CEO. “We are very much looking forward to the steps ahead in this venture. The cooperation will strengthen Helm´s portfolio of inorganic chemicals and enables us to build an even stronger positioning in the south-east Asian markets.“ In particular, Helm says, SPCI’s location in Singapore offers it the potential to develop a local distribution hub to help it orchestrate its activities in the region. www.helmag.com SAFIC ADDS ADDITIVES

Safic-Alcan has acquired European Additives, a German chemical distributor specialising in plastics additives. Established in 2006 by Jürgen Wittler in Köln, European Additives handles anti-oxidants, UV stabilisers and flame retardants, with principals in Asia and Europe. “Jürgen and his team will join Safic-Alcan Deutschland, ensuring continuity for clients and suppliers alike,” says Dr Matthias Pfaffernoschke, managing director of Safic-

Alcan Deutschland. “We are very much looking forward to have them onboard and continue the success story.” “The acquisition of European Additives reinforces our activities in Germany and provides further opportunity to grow across our geographies, thanks to their own brand model,” adds Yann Lissillour, CEO of Safic-Alcan Group. www.safic-alcan.com IMCD GROWS IN CHINA

IMCD has agreed to acquire Welex SA Holdings (China) Ltd and related businesses. Welex is a specialty chemicals distribution company representing a wide range of leading global suppliers. It achieved revenues of some €39m last year and operates from offices in Hong Kong, Beijing, Shanghai, Guangzhou and Qingdao. “The addition of Welex opens the door for us to diversify our coatings, paint and ink business, enter the fast-growing agrochemical market and develop into the highly valuable speciality

CHEMICAL DISTRIBUTION 17

compounding application. In particular, we gain the geographical expansion across China with a strong presence in the southern part,” says Andreas Igerl, managing director of IMCD China. “This is an important milestone for us as we continue our growth momentum with the diversification of our business.” The transaction is expected to close after 31 October this year. www.imcdgroup.com GOOD YEAR FOR BIESTERFELD

Biesterfeld has reported strong results for 2021, with revenues of almost €1.4bn compared to €1.0bn in 2020 and EBIT doubling from €43m to €88m. “We can look back on an extraordinary financial year 2021, which was affected by the impacts of the Covid-19 pandemic and a very challenging market environment,” says group CEO Thomas Arnold (picured right). Biesterfeld anticipates further uncertainties this year, primarily due to the tense geopolitical and global economic situation, with ongoing disruptions in supply chains, limited availabilities and rising costs. Nevertheless, is projects a positive earnings outlook for the year, as Arnold says: “We are watching the situation carefully and we feel confident that in 2022 we will pursue our international growth path on the basis of our application-based technical competence and consulting expertise as well as our trusting and long-established relationships with suppliers and customers. Our acquisition in south-east Asia, in particular, is already having very positive effects.” www.biesterfeld.com UNDER THE KRAHN UMBRELLA

Krahn Chemie has brought the AmphoChem and Pemco Additives companies, acquired in February 2021, into Krahn Nordics. Chatarina Schneider, managing director of Krahn Nordics, explains: “After the acquisition,

we quickly realised together with the local employees that a merger in a new organisation will significantly facilitate the cooperation of both companies, especially with regard to organisational aspects. We are pleased to be able to appear and operate under a uniform name and as part of the internationally positioned chemical distribution company Krahn Chemie, from now on.” The acquisition of Pemco Additives also brought UK-based Petrico into the fold and this has now been renamed Krahn UK, taking a further step towards a uniform brand presence across Europe. “Petrico has built a trusted reputation in the lubricant market and nothing changes but the name. We will continue to support our valued customers and suppliers whilst promoting the Petrico brand of products throughout wider Krahn regions,“ says Andrew Lamb, managing director of Krahn UK. www.krahn.eu

BARENTZ BANKS CZECH

Barentz has acquired ACE Trade, a Czech distributor of specialty ingredients for the personal care, homecare and industrial markets. ACE Trade, which was founded in 1988, will continue to operate under its own name while certain activities are integrated into the existing Barentz CZ operation. “ACE Trade CZ has built a very strong position as distributor in the Czech Republic market,” says Pavel Kratochvil, executive vice-president of Barentz CZ. “They have proven their added value, particularly in the personal care and homecare markets, where they have shown great results in developing customized formulations. Their focus on knowledge and entrepreneurship strongly connects with our Barentz business principles and values.” www.barentz.com acetrade.cz CALDIC EXPANDS PHARMA LINE

Caldic has acquired Active Pharmaceutica, a value-adding pharma distribution company supplying the Brazilian market, with completion of the deal due in the second half of this year. The acquisition, Caldic says, will help it increase its focus on life science and accelerate growth in Latin America. “Active Pharmaceutica has established a strong foothold in the Brazilian pharmaceutical sector with a unique value-add proposition that is fully aligned with Caldic’s strategy,” says Rodrigo Gutierrez, CEO of Caldic LATAM. “This acquisition will provide technical knowledge and capabilities to the Caldic organisation in Latin America which, combined with our strong position in pharma in North America and Europe, will further enhance our global position in this strategic market.” www.caldic.com

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FLEET FOR THE FUTURE GAS FLEETS • WITH DEMAND STRONG AND THE POTENTIAL THAT NEW TRADES WILL EMERGE FROM THE ENERGY TRANSITION, GAS SHIP OWNERS ARE SITTING PRETTY AND SITTING TIGHT THERE WAS A TIME, around thirty years ago, when LPG was being touted as the fuel of the future. Comparatively low in emissions, with a well established supply chain, LPG could offer a cleaner way of fuelling the future. To some extent that vision paid off, with domestic use of LPG for cooking and home heating still increasing in many developing countries in Asia. But those forecasts of growth in LPG demand did not take account of other developments, that only emerged this century. In particular, the use of LPG as an alternative to naphtha as a petrochemical feedstock was already in the market, but the emergence of shale gas fracking, particularly in North

America, generated significant new volumes of LPG for the world market, bringing down the price and making it a more attractive alternative. Also in the petrochemical area, the growth of propane dehydrogenation (PDH) as a relatively easy route to the production of polypropylene added hugely to propane demand – and continues to do so – especially in China. Additionally, and as a result of the shale gas boom, the emergence of ethane as a stand-alone product has driven more long-haul trade, with US ethane moving by ship to Europe, India and China. That emerging ethane trade has necessitated the development of new types

of gas carrier, with containment systems based on LNG rather than LPG transport, given the low cryogenic temperatures required, and ships of rather larger capacity than typical very large gas carriers (VLGCs) used for propane and butane. These very large ethane carriers (VLECs) are also generally configured to use ethane as fuel and there are an increasing number of VLGCs now being built to use LPG as fuel, with some operators, notably BW LPG, retrofitting their existing vessels. Gas tanker operators are also well placed to take advantage of changing trades as the energy transition develops. For instance, ammonia is being touted as one alternative fuel that will be easy to adopt, either for direct consumption as fuel or via fuel cells to generate electric power. There are several plans in place to move ‘green’ ammonia from production sites around the world to northern Europe, a task for which medium-sized LPG tankers are well suited, since they are already involved in the trade. PLAYING WITH THE BIG BOYS The growth of US LPG exports has been remarkable. In 2015, total US production of LPG was 66m tonnes, of which 18m tonnes was exported; by 2020, production had grown 36 per cent to 90m tonnes but, with domestic consumption essentially flat, exports had surged by more than 250 per cent to 46m tonnes. According to the US Energy Information Administration (EIA), 2023 projections show a further 17 per cent growth in production to 105m tonnes with exports rising 28 per cent to 59m tonnes. Some of that additional output from the US (as well as from Canada, at a lower level) has been used to fill a gap caused by a shortfall in Middle East exports, particularly at those points in recent years when oil production has been curtailed to support the oil price, leaving less associated gas available for fractionation. But with Opec+ recently upping output to

 OPERATORS ARE STILL INVESTING IN NEW CONSTRUCTION IN THE VLGC SECTOR, WHERE ADDITIONAL LPG VOLUMES ON LONG-HAUL TRADES ARE ADDING SIGNIFICANTLY TO DEMAND

HCB MONTHLY | JULY-AUGUST 2022

TANKER SHIPPING 19

compensate for the shortfall in the availability of Russian product, there is now more LPG moving out of the Middle East once more. For VLGC operators, that is important, as the shipping routes from North America to Asia are longer than those from the Middle East to Asia, which has added significantly to tonne-mile demand, particularly in the period since 2019. Not surprisingly, VLGC operators have responded to that additional demand (and rising freight rates) by placing more orders for new ships. Additions to the VLGC fleet have averaged around 20 per year between 2017 and 2022 but the orderbook points to the delivery of 43 newbuildings in 2023 alone, which will take the global VLGC fleet up to 378 ships by the end of that year. BW LPG does, though, note that the number of potential demolition candidates will start picking up again next year, based on the age profile of the current fleet. TRICKLE-DOWN EFFECT Newbuilding activity is also expected to pick up in the mid-size LPG tanker sector next year, with Exmar pointing to more than 30 new ships on order, equivalent to 30 per cent of the existing fleet. These will also be mainly dual-fuel ships, with the US the largest provider of LPG liftings. Mid-size vessels are also the workhorse of the global ammonia trades and are currently experiencing a sharp uptick in tonne-mile demand as the conflict in Ukraine is causing a shift in the trade to longer-haul routes. Navigator Gas notes that it is not just ammonia that is being affected by the Ukraine conflict, with a similar impact on LPG and petrochemical gases. The company, which operates primarily in the Handysize sector, also reports that, with surging tonne-mile demand across all LPG tanker segments, the degree of substitution between them has shrunk. Increased US exports of LPG are

 THERE IS NEWBUILDING INTEREST IN THE LARGER VESSEL SIZE RANGES, BUT FEW ORDERS ARE COMING IN FOR SMALLER SEMI-REF AND FULLY PRESSURISED CARRIERS AT THE MOMENT

positive for larger gas carriers, in turn reducing competition from other size categories within the LPG shipping segment. This dynamic also applies to the Handysize segment: when ethylene capable vessels are employed in ethylene or ethane trades, and when fully refrigerated vessels are employed in ammonia trades, there are fewer vessels competing for LPG and the more straightforward petrochemicals, which in turn is positive for the semi-refrigerated sub-segment of the Handysize vessels. In the small gas carrier segment – which BW Epic Kosan defines as all fully pressurised

past five years the average annual scrapping rate has been 2.0 per cent and there are currently some 26 small gas carriers of 30 years of age or more in operation, equivalent to 4.8 per cent of the active fleet. However, given the ongoing firm demand for gas tanker tonnage and the small orderbook in the smaller vessel sectors, and despite a recent improvement of scrap prices, it would not be surprising if owners are minded to keep their ships trading, especially as the future may deliver yet more employment opportunities. The tables on the following two pages show a

carriers and those semi-refrigerated ships below 13,000 m3 capacity – total fleet growth has been very restricted since 2016 and looks set to continue in the same vein at least for the next two years. It expects fleet growth this year to be 2.2 per cent, though this could be reduced by further demolition activity; over the

summary of the major LPG tanker operators’ fleets, taken largely from published information. Given the structure of the business, individual ships may be included more than once, against their owner, manager and/or pool operator, so the total number of ships indicated will not sum to the actual fleet size.

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20 Major fully pressurised and semi-refrigerated LPG tanker fleets, July 2022 Number of ships FP <3,000

FP >3,000

SP/FR <10,000

SP/FR >10,000

Total capacity (m3)

Average age

Anadoluhisan

33,000

Anthony Veder

186,270

Notes

Includes 17 LEGs, 6 LEG/LNGs; also 3 LNGs

B-Gas

Benelux Overseas

BW Epic Kosan

Carboflotta

6 43

53,925

17,850

531,421

Plus one VLGC

36,557

36,324

Plus large inland fleet

Daiichi Tanker

19,200*

n/a

all ethylene carriers

Elcano

20,522

Eletson Gas

282,038

Evergas

250,000

39,816

334,006

3 x 40,000, 3 x 7,200 n/bs

285,900

2 x 15,000 m3 due 22/23

91,319

281,300

141,000

Chemgas Shipping

Exmar

GasChem Services

Geogas Trading

Harpain Gas

Hartmann Gas Carriers Hyproc Shipping Iino Gas Transport Iwasaki Kisen Kumiai Navigation Mitsubishi Chemical Naftomar Navigator Gas

Most operated by GasChem

47,602

Mostly coastal vessels

4,392

Japanese coastal ships

9,842*

5,211

n/a

Japanese coastal ships

132,225

300,000

Plus two VLECs

891,238

n/a

30,327

Mostly Japanese trades

Pacific Gas

100,000

Ethylene carriers

Paradise Navigation

38,000

Pelagic Partners

16,962

Petredec

304,684

SCF Group (a)

41,200

Schulte Group

271,622

13 ethylene carriers

Shinomiya Tanker

9, 622*

Japanese coastal ships

Sloman Neptun

95,519

Solvang

153,556

Stealthgas

257,500

Nippon Gas Line

Investment fund

9 ethylene carriers All ethylene carriers

Seapeak

59,698

Transgas (a)

57,032

Unigas

303,718

Schulte/Sloman/Ultragas

28,017

Chinese domestic trades

Wideshine Enterprises *dwt (a) 2020 data HCB MONTHLY | JULY-AUGUST 2022

ex Teekay Gas

TANKER SHIPPING 21 Major fully refrigerated LPG tanker fleets, July 2022 Number of ships <40,000

Astomos Energy Avance Gas Bernhard Schulte BW LPG Carboflotta Dorian LPG Eastern Pacific Eneos Ocean Evergas Exmar GasChem Services Geogas Trading Hartmann Gas Carriers

4070,000

>70,000

Total capacity (m3)

Average age

Notes

Company statement

1,097,200

1,478,585

3,171,580

115,112

1,687,000

3 11

20 1

650,283

685,202*

168,757

VLECs

1,419,549

4 nb due 2022/23

5 VLECs, 2 VLGCs on order 10

37,000

Hartmann vessels

1,159,500

Two 40,000-m3 due 2023

Helios LPG Pool

73,000

1,756,000

Dorian/Phoenix pool

Idemitsu Tanker

Iino Kaiun Kaisha

216,954*

411,683

‘K’ Line (a)

480,573

KSS Line

1,282,000

2 VLGCs due 2023

Kumiai Navigation

381,213*

1 VLGC due 2025

Kuwait Oil Tanker Co

408,588

Latsco

699,112

252,317

n/a

329,770

173,600

n/a

232,332

NYK Line (a)

517,853*

n/a

Pacific Gas

870,000

inc 2 VLECs

Naftomar Nakilat Navigator Gas Neu Gas

PCL

155,613

1,937,220

6 x 93,000 due 2023

660,499

Prime Marine

237,930

SCF Group (a)

70,000

797,367

ex Teekay Gas

329,441*

Also coastal FP ships

Petredec Phoenix Tankers

Seapeak SK Shipping Solvang

Thenamaris

1,070,900

304,000

248,793

Unique Shipping

399,440

Zodiac Maritime (a)

265,956

Transpetrol

*dwt (a) 2020 data WWW.HCBLIVE.COM

LOOK TO THE CENTRE SUSTAINABILITY • THE GLOBAL SHIPPING INDUSTRY IS A COMPLEX ECOSYSTEM AND IT IS NOT EASY TO BRING EVERYONE TOGETHER TO ADDRESS EMISSIONS REDUCTION. ONE PROJECT IS GETTING THERE AFTER A COVID-RELATED delay of nearly two years, the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) was formally opened by its CEO, Bo CerupSimonsen, in late May. The Center was founded in 2020 as a not-for-profit platform to help the maritime industry come together to address the environmental challenges it faces and to take real action to steer the sector on a course to achieve zero-carbon operations, while continuing to meet the needs of global supply chains. There are plenty of ideas and ongoing projects involving such aspects as: alternative fuels and improved energy efficiency; regulatory and financial measures; and operational enhancements. However, these all require extensive re-engineering or a significant change of mindset among industry and the regulatory and financial authorities. One problem is that this range of perspectives and potential solutions can cause confusion among the various stakeholders involved. The maritime industry is sorely in need of high-level agreement on what is to be done and coordinated action to implement solutions agreed across the sector. One aspect mitigating against concerted effort is that the maritime industry is a very complex ecosystem, with many different operating models is the various shipping sectors. In addition, the Center has identified three value chains that will be fundamental to directing decarbonisation actions. INTERDEPENDENCE DAY Firstly, it is important to realise that the well-to-wake marine fuel value chain

HCB MONTHLY | JULY-AUGUST 2022

encompasses exploration; transportation; processing; transport of fuel to the fuelling spots and consumption by the ship operator. These are interdependent components that need to be functional simultaneously to avoid bottlenecks and shortages of equipment or fuels. There are also important commercial considerations and, today, vessel operators lack sufficient price-competitive alternative fuels to allow them to commit to charter agreements that include a premium for emissions reduction. Decarbonisation also has to be a focus for the shipbuilding chain, from the procurement of raw materials to end-of-life recycling. Ships have to be specifically designed so as to minimise greenhouse gas emissions, through a variety of ways, and to maximise the re-use of materials after demolition. Reducing the uncertainties that are currently making owners shy away from investments in new, fuel-efficient ships will require incentives and financing mechanisms. In this context,

market-based measures such as carbon pricing can motivate a new era of shipbuilding that accelerates the transition to a low-carbon and zero emissions maritime sector. In the ship operation phase, there are multiple levers to reducing CO2 emissions, such as: optimising the size and speed of ships, using hydrodynamic designs and dual-fuel engines, or moving to bio-fuels and electric power. Ports have a crucial role to play in supporting these trends, through the provision of the necessary infrastructure for storing and bunkering alternative fuels and the provision of shore power. Speaking about how MMMCZCS can help shape the future, Giorgio Guadagna, who is seconded to the Center from Stolt Tankers, the only specialist chemical tanker operator to be a member, exemplifies it as “an amazing one-of a kind experiment”. He continues: “There are a lot of collaboration and cooperation projects emerging throughout the industry, but I don’t think any others have a physical space where partners and employees come together to work on these initiatives. “Researching, preparing for and implementing alternative fuels is such a huge and complex task, so there are projects at the centre focusing on the short to medium term, and others looking further down the line,” Guadagna adds. Decarbonisation of the maritime industry is moving fast, with implications for global fuel demand. We will no doubt be hearing a lot more about the Center’s work in the coming years. www.zerocarbonshipping.com

TANKER SHIPPING 23

attract long-term capital for further investments in newbuildings,” StoltNielsen adds. Group operating profit for the first half of the financial year came in at $1.3bn, compared to $1.0bn last year, with the second quarter recording the company’s highest net profit since 2007.

STOLT TANKERS’ SECOND-QUARTER financial results, covering the three months to end May, illustrate the extent to which the chemical tanker market has continued its improvement, with rates firming on the back of strong demand and tight supply after swing tonnage moved out of the market and few newbuildings are being added. Operating revenues for the three months totalled $365.4m, 27 per cent up on the $287.0m recorded a year earlier. Operating profit increased from $12.6m to $40.8m. The six-month figures show a 24 per cent

trades, revenues rose by $14.2m year-on-year due to additional capacity entered into the Caribbean trade and strong regional markets in Asia. Commenting on the figures, Niels G Stolt-Nielsen, CEO of parent company Stolt-Nielsen Ltd, says: “The second quarter continued where the first quarter ended with growing demand and a shrinking orderbook for new ships, with the positive momentum continuing to build in the chemical tanker market. Our tanker trading team is standing firm on contract renewals and spot fixtures to

LOOKING GOOD For the next 12 to 18 months, Stolt Tankers expects a continued steady recovery of the chemical tanker markets, building on the economic recovery during 2021 that followed the worldwide economic downturn caused by Covid-19. Although there are concerns around the macroeconomic impact of rising interest rates on the back of rapidly rising inflation, the outlook remains optimistic for the chemical tanker segment due to a favourable supply/ demand balance, as demand for chemical tankers continues to grow while the orderbook for new ships remains at an all-time low with limited yard capacity available in the near to medium future. “I expect our positive momentum to carry through the rest of the year. Stolt Tankers should continue to see rising freight rates that will outpace the rise in fuel costs,” Niels G Stolt-Nielsen says. “Although we are starting to enjoy improving returns on our investments, we cannot ignore the many external challenges that lie ahead. The war in Ukraine is increasingly impacting energy supplies, particularly in Europe. Excess liquidity in the private sector following many years of quantitative easing, together with postpandemic demand, has driven up inflation, which is now being amplified by rapidly rising oil and gas prices. “To curb inflation central banks are raising interest rates, which, if taken too far, will inevitably lead to a global recession,” StoltNielsen adds. “We are monitoring the potential impact these factors could have on our

rise in revenues to $679.9m and a 257 per cent increase in operating profit at $65.8m. In the deepsea trades, cargo volumes were up by 7.2 per cent year-on-year and, along with an increase in operating days and higher bunker surcharge revenue, resulted in a $117.9m increase in revenues. In the regional

capitalise on the tightening market, and we are moving in the right direction. “However, considering the historically low freight levels and weak returns that the chemical tanker industry has seen for many years now, we still have a long way to go until our returns through the cycle are sufficient to

businesses. We remain cautious when making new investments, ensuring that the return hurdles account for higher inflation and funding costs in the future, and we are maintaining our focus on debt reduction to strengthen the balance sheet.” www.stolt-nielsen.com

CASH BACK REWARDS MARKET • STOLT TANKERS DID VERY WELL IN THE SECOND QUARTER THOUGH GLOBAL VOLATILITY AND GEOPOLITICAL UNCERTAINTIES MAKE IT HARD TO PLAN FOR GROWTH GOING FORWARD

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TOMORROW’S TANK BARGE NEWBUILDING • HGK SHIPPING IS CONTINUING TO GEAR UP TO MEET CHANGING ENVIRONMENTAL CONDITIONS ON EUROPE’S INLAND WATERWAYS, AS ILLUSTRATED BY ITS LATEST NEWBUILDING HGK SHIPPING HAS put its latest new tank barge into service, following a naming ceremony in Rotterdam on 15 June. The innovative Type C tanker Synthese 18 was built in Romania at the Santierul Naval Orsova shipyard and outfitted at the Scheepsreparatiebedrijf De Gerlien van Tiem shipyard in Druten, the Netherlands. The new vessel will be used to transport liquid chemicals on the Rhine and its tributaries. This newest addition to the HGK fleet combines a design that is optimised for shallow water operations together with a diesel-electric drive system. “Thanks to our strategic programme for constructing new vessels, we’re laying the foundation for inland waterway shipping, which will meet the current and

future requirements for sustainable and reliable transport operations,” says Steffen Bauer, CEO of HGK Shipping. “We’ll then manage to organise the transformation process towards providing decarbonised inland waterway shipping together with industry.” “Synthese 18 marks a real milestone in transporting liquid chemicals on European waterways,” adds Norbert Miexner, who heads HGK Shipping’s liquid chemicals business unit. “It will enable us to maintain our role as a reliable partner for industry even during periods when water levels are low.” INNOVATIVE ARRANGEMENT This latest new tank barge is designed for a maximum payload capacity of 2,700 tonnes but

is designed in such a way that it can still carry a 300-tonne load even if the water depth is just 1.05 metres. This arrangement will help ensure reliable supplies for the chemical industry in future, even if the water level on the river Rhine is critically low, as it has been increasingly often in recent years. The shallow draught is made possible by the optimised uplift features of the vessel’s hull, which has been achieved by an ingenious arrangement if such components as the loading system and the drive technology. The vessel, which is 110 metres long and 11.45 metres wide, was developed at HGK Shipping’s Design Center, as have all other recent additions to the company’s fleet, and was designed in close cooperation with the transport management experts at Wijgula in Druten, which will operate the vessel with freight. “Numerous practical optimisation measures have been included in the design of Synthese 18,” explains Tim Gödde, director of the Ship Management business unit at HGK Shipping. “Our shipbuilding engineers cooperated closely with the turnkey shipyard from the very first ideas in 2020. Together, we’ve managed to significantly reduce the CO2 emissions per tonne-kilometre even further. Although the shape of the bow and stern are unconventional – among other things, the vessel is equipped with a so-called bulbous bow – the intelligent power management system ensures that the power that is available (1,200 kW) is fed in and used in the best possible manner. The stainless steel tanker demonstrates that a combination of sustainability and reliability of supplies doesn’t have to conflict with a high tonnage level per trip.” HGK Shipping, part of Häfen und Güterverkehr Köln, is a long-standing partner of the chemical industry and supplies various industries with light and heavy liquid chemical products as well as non-hazardous liquid goods. The fleet of tankers in the company’s Liquid Chemicals business unit transports some 6m tonnes of liquid goods annually on the river Rhine and its tributaries, in the German north-west canal region as well as in Belgium, France and the Netherlands. www.hgk.de

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GOING FOR GAS NEWBUILDING • UTKILEN IS AWARE THAT IT CANNOT WAIT FOR DECARBONISATION TO HAPPEN, IT HAS TO MAKE ITS MIND UP ABOUT HOW TO ADDRESS EMISSIONS REDUCTIONS NOW NORWAY-BASED CHEMICAL tanker operator Utkilen is investing more than €125m in the decarbonisation process, ordering four new tankers and retrofitting some of its existing fleet with dual-fuel engines. Four 6,700-dwt chemical tankers have been ordered at Shipyard Icdas in Turkey for delivery starting in early 2024. The new ships will be fitted with multi-fuel engines and are designed with an optimised hull form; they will also be constructed so as to be allow the use of battery power and shore power connections, which could make them completely emissions-free. Utkilen notes that much of the equipment for the newbuildings will be sourced from Norwegian suppliers, including Framo,

Wärtsilä, Høglund and Scanjet. The company also notes that there have been very few newbuildings arriving in the shortsea market in northern Europe in recent years. In addition, four modern ships in the existing fleet are to be retrofitted to be able to run on LNG or liquefied biogas (LBG). “We have owners who invest long-term. In a time of great uncertainty in relation to future green technology, we choose to make large investments that will considerably reduce our carbon footprint already in 2022,” says Siri-Anne Mjåtvedt, CEO of Utkilen. “There is currently a lot of talk about hydrogen and ammonia but for us, who transport chemicals primarily in northern Europe, this technology is not ready yet,” Mjåtvedt adds. “We choose to focus on accessible, eco-friendly and flexible technology. Half of our core fleet will be able to use LNG and biogas (LGB) when the newbuildings are delivered.” GOOD FOR THE CUSTOMER That is not to say that Utkilen is ignoring other options. While the newbuildings and retrofitted existing ships will be able to run on

LNG/LBG as well as gasoil, it will keep an eye on the potential use of methanol or ammonia. “Biogas is available in our trade area. With LNG propulsion, we can give our customers the opportunity to reduce the footprint of their cargo by choosing to mix biogas into the fuel,” Mjåtvedt comments. “We also hope that the customers now will follow up with facilitating shore power connection in the ports, so that together we can make our red-painted ships even greener.” Utkilen itself is keen to operate with concern for the environment but it is also alert to the fact that many of its customers are under regulatory of commercial pressure to follow suit. “Utkilen chooses to use expensive but eco-friendly technology also because this is important for our customers,” Mjåtvedt says. “Most of the ships in Utkilen’s fleet are built after our own specification and design, in good quality to be able to operate for almost 30 years. We believe this is a sustainable solution. We are continuously working to reduce the energy consumption of existing ships, as well as building new ships with eco-friendly technology.” Utkilen, headquartered in Bergen, was established in 1967 and currently operates a fleet of 22 chemical tankers ranging in size from 6,000 dwt to 20,000 dwt; most of its work is in northern Europe but four 20,000-dwt stainless steel vessels are active in global trades under the Stream brand. utkilen.no

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NEWS BULLETIN

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EPS GOES FOR AMMONIA

Eastern Pacific Shipping (EPS) has ordered a dual-fuel gas carrier at Hyundai HI that will be the first vessel to be fitted with the MAN Energy Solutions G60 two-stroke ammonia engine. The size of the newbuilding has not yet been confirmed but will be at least mid-sized and potentially a very large gas carrier (VLGC). Delivery could be as early as 2025. The use of ammonia as an alternative marine fuel shows great promise as it eliminates carbon dioxide emissions, EPS says. However, there is no engine commercially available in the market today that can use ammonia as a marine fuel. Ammonia-ready vessels currently on order will be able to switch from other alternative marine fuels but will still require a major engine retrofit once ammonia engines become commercially accessible. “We believe that our industry will need to rely on multiple solutions to steadily lower and eventually eliminate emissions. That’s why it is critical for us to constantly invest and develop various alternative marine fuels in order to offer the right solution to the right segment at the right time,” says Cyril Ducau, CEO of EPS. “The use of ammonia as a marine fuel is the next logical step for EPS and the industry. I am pleased that EPS, MPA, HHI, and ABS have come together on what will certainly be a pivotal moment in our energy transition.” www.epshipping.com.sg AMMONIA IDEAS IN JAPAN

Mitsui OSK Lines (MOL) has launched a joint project with Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding to develop and build a gas tanker to be fuelled by ammonia. The partners envisage a mid-size ammonia/LPG tanker equipped with an engine that can run mainly on ammonia, allowing it to achieve net-zero CO2 emissions while underway. The concept under development is a 40,000-m3 carrier, the same size as the LPG

HCB MONTHLY | JULY-AUGUST 2022

carriers currently employed in ammonia service, which means it will be able to call at most ammonia loading and receiving ports. The partners expect delivery of the new vessel around 2026. www.mol.co.jp FUEL CELL FUTURE BY TECO 2030

TECO 2030, a Norway-based marine engineering firm, has revealed its Hy-Ekotank hydrogen-powered tanker concept, developed in partnership with Ektank, Shell Shipping & Maritime and DNV. Such a tanker would produce zero emissions while at berth and achieve complete elimination of greenhouse gas emissions during voyage, making a significant contribution to meeting the EU’s ‘Fit for 55’ and Green Deal initiatives. “We’re working with our customers and across sectors to accelerate the transition to net-zero emissions,” says Stephen Brown, technology manager at Shell Shipping & Maritime. “We will contribute to a net-zero world, where society stops adding to the total

amount of greenhouse gas emissions in the atmosphere. We’re partnering with customers, businesses, and others to address emissions. This pioneering fuel cell concept will reduce carbon emissions in the maritime sector. We’ll continue to drive innovation to provide the cleaner energy that our customers need.” “We are humbled to work on Hy-Ekotank with Ektank, Shell and DNV, as we believe these partners are a perfect match. With a cargo owner, shipowner, classification society, and a fuel cell provider, we will show the world what hydrogen is capable of doing for the maritime shipping industry. Remember it is all about eliminating emissions, and increasing value-adding activities,” says Tore Enger, Group CEO of TECO 2030. teco2030.no PROMAN STENA TAKE METHANOL ARRIVALS

Proman Stena Bulk has taken delivery of Stena Pro Patria, the first of six methanol-powered MR tankers being built by Guangzhou

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Shipyard, and a sistership, Stena Pro Marine; another IMOIIMeMAX tanker, Stena Promise, is due for delivery later this year. The first 49,990-dwt newbuilding bunkered methanol in Ulsan before sailing to Trinidad for a naming ceremony and to begin work transporting methanol for Proman. “The delivery of Stena Pro Patria represents a major milestone for the success of our joint venture with Stena Bulk, as well as sending an important message to the market that methanol is a reliable and available marine fuel that can reduce global shipping emissions in the short, medium and long term,” says David Cassidy, CEO of Proman. “The vessel’s state-of-the-art fuel consumption and engine technology are important steps towards more sustainable shipping. It will be vital as new low-emission fuels emerge to also focus on energy efficiency.” Erik Hånell, president/CEO of Stena Bulk, adds: “It is only through collaboration and partnership that we can meet our climate goals. Today’s announcement of a jointly built methanol-powered vessel coming into commercial use is a great example of our successful partnership with Proman, and we

hope the first of many major milestones.” “Vessels such as the Stena Pro Marine demonstrate to shipowners and policymakers that the industry can take proactive and immediate steps on the decarbonisation pathway,” says Anita Gajadhar, managing director of Proman Shipping, Marketing & Logistics. “Proman and other producers are ramping up investments in low-carbon methanol technologies and renewables projects to meet rapidly expanding customer demand. As regulators continue to propel much-needed maritime decarbonisation, including the EU’s ‘Fit for 55’ legislative package, these vessels underline the importance of a regulatory framework that relies on one certification methodology for alternative fuels and accurate emission measurements of all fuels.” www.stenabulk.com NAVQUIM IS BACK

De Poli Tankers Holding has been renamed Navquim Holding, following Sogestran’s acquisition of De Poli in April. The new name harks back to Sogestran’s Spanish subsidiary. Navquim’s 15 stainless steel chemical tankers

are being gradually renamed, with the first, Alessandro DP, now called NQ Magnolia. Navquim’s chartering and operations activities remain based in Marbella, Spain, while ship management is in Barendrecht, the Netherlands. Sogestran reports that it has injected working capital into the new company to allow the company to be competitive on the purchasing and chartering sides and will invest further to renew and expand the fleet. www.navquim.com STEALTHGAS SHOWS CAUTION

Stealthgas has recorded first quarter revenues of $35.9m, down 4 per cent on the same period last year, largely as a result of the spin-off of its product tanker operations. That also reduced voyage and operating expenses and this, along with reduced exposure to the spot market, helped Stealthgas post net income of $7.6m, compared to $0.8m a year ago. “During the first quarter the improving LPG market continued its upward trend and we managed to capitalise, posting … one of the best quarterly results in many years,” says board chairman Michael Jolliffe. “We also managed to contain cost pressures particularly related to crew and bunker prices that continue to push our cost base. “That being said, we continue to operate in a challenging geopolitical environment with the war in Ukraine and the Covid-19 pandemic, particularly with regards to the situation in China, still ongoing creating more uncertainty for the future,” Jolliffe adds. “Now we can also add economic uncertainty as a result of high inflationary pressures and rising interest rates. How all this will affect the LPG shipping market and whether we will be able to benefit from any change in trade patterns remains to be determined, as this is a market that is still seeking direction.” www.stealthgas.com

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NOT SO FLEXIBLE SUSTAINABILITY • CLAIMS THAT FLEXIBAGS OFFER A SUSTAINABLE ALTERNATIVE TO TANK CONTAINERS ARE SIMPLY NOT TRUE, ITCO HAS STRESSED MEDITERRANEAN SHIPPING COMPANY (MSC), the largest container liner operator and reportedly cash-rich after the boom in freight rates over the past year, has announced a move into the flexibag market, offering this as an alternative for the shipping of non-hazardous liquids in bulk. MSC says it

tank container sector. In a statement issued the following week, the International Tank Container Organisation (ITCO) has attempted to rebut MSC’s claims, with its president, Reg Lee, aiming to correct what he called “a number of misconceptions”. For instance, MSC says that flexibags are

is the first carrier to offer an in-house service, including the selection and fitting of flexibags at its own depots. Announcing the new service on 9 June, MSC made a number of claims about flexibags, particularly in terms of their sustainability advantages, that have drawn the ire of the

single-use and fully recyclable, which makes them a good choice for use with edible cargoes. Lee counters that flexibags are neither eco-friendly nor sustainable: each flexibag is made of plastics films consisting of polyethylene and a polypropylene sleeve; it weighs more than 40 kg – equivalent to around

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7,500 single-use shopping bags – and will most likely end up being disposed of in landfill rather than being recycled. A tank container, on the other hand, can transport several cargoes each year over a lifetime of at least 20 years; moreover, at the end of its life around 90 per cent of a tank container can be easily recycled through a well established material recovery service. Indeed, Lee says, flexibags cannot be fully recycled, even if the receiver takes care to do so. While solid plastics are readily recyclable, the thin films that make up the flexibag itself are not easily or economically recyclable. As such, Lee says, most flexibags will simply be dumped in a landfill, most probably still contaminated with their cargo, further endangering the environment. CLEAN BEFORE DISPOSAL MSC further states that there is no need to clean a flexibag after use, unlike a tank container that has to be taken to a cleaning

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station before its next load. This is, Lee says, both misleading and incorrect. While a flexibag that has contained, say, wine might be able to be shredded safely for reprocessing in an empty-dirty state, any flexibag that has carried chemicals or petroleum products – even non-hazardous materials – will need to be thoroughly drained and cleaned or safety of handling, prior to being sent to landfill or incineration. Conversely, the controlled and monitored cleaning of tank containers allows them to safely carry high quality goods repeatedly. Again, Lee says, MSC’s claim that flexibags represent “less packaging than conventional ISO tanks” is simply false. Tank containers are, themselves, the packaging for transport and no additional materials are required. Flexibags, on the other hand, must have liners made of varying materials for the dry box, bulkheads and potentially heating pads – in addition to the single-use multi-layered flexibag itself.

 MSC’S DECISION TO OFFER A FLEXIBAG SERVICE SEEMS TO RUN COUNTER TO ITS COMMITMENT TO SAFETY IN THE MARITIME SUPPLY CHAIN AND ITS CLAIMS ARE, ITCO SAYS, INSUPPORTABLE

The full cost of packaging and recycling a flexibag is rarely taken into full consideration by shippers, Lee says, as it is usually the full responsibility of the consignee or receiver to voluntarily recycle the flexibags or dispose of the dirty flexibags in landfills. Few processes or laws are in effect to trace the flexibags from cradle to grave, and waste is not controlled as is the case with tank containers. Ultimately, Lee says, the responsibility for the environmental stewardship of the bag is lost along the supply chain, without traceability. The shipper, who purchases and introduces the 40 kg of plastics into the world, has no responsibility for what subsequently happens to it upon delivery. This is entirely different to a tank container shipment, where the tank container operator retains responsibility for the environmental stewardship of the tank container - and of its cargo residue and of its cleaning. The operator accepts full responsibility right through the supply chain, and welcomes auditing at every stage. HIDDEN HAZARDS There are other hazards involved in the use of flexibags, which again may not be well known. They carry an additional risk from a confined space entry point of view, as destination handlers all over the world need to remove contaminated flexibags from the container

and place them in a skip for disposal. Lack of procedures and controls globally could put workers at risk. This is not the case for tank containers, where audited safety procedures minimise and control the risk to workers. ITCO also emphasises that the carriage of bulk liquid cargoes by road requires special driver training because of the risks associated with the surge movement of liquids inside the containers. Specialist tank container trucking companies carry out extensive training to educate their drivers about the danger of liquid surge inside the tank container and the effect this has on the stability of the vehicle. There is generally no such training among conventional dry-box trucking companies used to transport flexibags, making their carriage potentially unsafe. In this regard, flexibags are unsatisfactory in terms of road safety both for drivers of the vehicle and the public around them, due to the risk of liquid surges that affect braking and stability. This might lead to rollovers for drivers unused to liquid cargoes. “A tank container remains the safest and most environmentally acceptable method of containerised bulk liquid transport,” Lee says. “Every 40 kg plastics flexibag that is manufactured represents a needless addition to the burden of plastics in the global environment, because the same liquid cargo could be repeatedly carried instead by tank container.” Given all these safety and environmental issue – which have been well rehearsed within the logistics sector – it seems odd that MSC should have chosen June not only to launch its flexibag service but also to join ICHCA International, with its Chief EHSQ Officer, Dirk van de Velde, saying: “MSC has determined the Environmental, Health, Safety and Security Quality Governance topics (EHSQ) that are most relevant to our business, we have identified our priorities and are building on communication with the maritime stakeholders. Our membership of ICHCA is a logical step following this assessment and the expansion of our activities. We want to help address the increasing risks and calamities in the maritime supply chain today.” www.itco.org www.msc.com

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GET BEHIND THE WHEEL DRIVER SHORTAGE • ECTA IS CALLING FOR AN INDUSTRY-WIDE EFFORT TO OVERCOME THOSE SUPPLY CHAIN INEFFICIENCIES THAT ARE EXACERBATING THE PERSISTENT LACK OF DRIVERS THE SHORTAGE OF heavy goods vehicle drivers is now endemic across Europe and North America. It is an especial problem for the chemical sector, with those young people coming into the transport industry no longer being attracted to the chemical driver job with its special requirements and obligations. As a result, every year more drivers are retiring than are joining the ranks. The European Chemical Industry Council (Cefic) and the European Chemical Transport Association (ECTA) published a best practice guidance document two years ago, offering practical recommendations for tackling the shortage of drivers. However, ECTA says, low engagement from most chemical shippers has made the situation worse – and it is has been further impacted by the current Ukraine crisis. ECTA is unequivocal of its criticism of current working practices in the chemical supply chain, saying that today’s chemical loading unloading processes in road transport are “broken”. In some 30 per cent of loading and unloading operations, gate-to-gate time exceeds three hours. This means that drivers are being confronted by longer and more unreliable waiting times at loading and unloading sites and this is one more reason prompting many to quite the job. Further, while unnecessary waiting time impacts driver productivity, it can also have a negative effect on safety, health and the environment. “This trend is worsening day by day and can no longer be resolved through waiting time demurrages,” ECTA says. “If no immediate actions are taken, the supply of chemicals will be disrupted even further.”

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THE ROAD AHEAD “The ‘over-optimisation’ at loading and unloading sites over the past years has happened at the expense of increased driver flexibility,” ECTA stresses. “This one-sided process optimisation approach is no longer sustainable when it comes to truck drivers’ productivity and job attractiveness. Assuming we can eliminate the current lost driver time, we can retain chemical truck drivers more easily and increase the capacity of chemical drivers by 10 per cent. We should also realise that the chemical driver shortage is worsened by the heavy demands on the labour market. Such driver demands like e-commerce drivers have less strict requirements and do offer a better work-life balance.”

ECTA is calling for immediate action and recommends, for instance: • Adjusting site inventory level requirements • Revising opening hours at loading/ unloading sites • Taking responsibility for outsourcing site operations • Making slot booking more flexible • Handling drivers with more respect • Supporting initiatives for digital gate registration. ECTA now wants to give drivers a voice, through a neutral app where they can leave their experiences at each site. That could generate data to allow a ‘score’ to be assigned to each site – and perhaps be extended to cleaning stations, intermodal terminals and port terminals. ECTA could then highlight to best and worse performing sites, which could encourage poor facilities to improve their operations. ECTA is calling on all stakeholders to join forces to improve the attractiveness of driving as a career and the productivity of existing drivers. “We all need to ensure that chemical truck drivers are treated with respect and are considered as a very valuable resource to transport chemicals in a sustainable and efficient way,” ECTA concludes. www.ecta.com

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NOTE: IF THERE IS A ONE PAGE FEATURE (LEFT HAND SIDE) NEXT TO AN ADVERT THEN YOU NEED TO MOVE THE “SECTION SLUG” OVER TO THE OTHER SIDE SO THE READER KNOWS WHAT SECTION THEY ARE IN. IF TWO ONE PAGE FEATURES ARE SIDE BY SIDE, BUT THEY BELONG

TAILORED LOGISTICS. TO DIFFERENT SECTIONS THEN YOU

On proven paths and new ways. NEED TO HAVE A “SECTION SLUG” ON BOTH SIDES

As one of the world‘s leading logistics services providers in handling and transporting liquid products, we are the first point of contact for the chemicals, gas, mineral oil and foodstuffs industries. By road, rail and sea, from road tankers to IBCs, from equipment leasing to intelligently networked Smart Tanks, we will find the optimum solution for you. We do this by using our expertise to pioneer our own new pathways that take you forward in a customised way. How can we help you? www.hoyer-group.com

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operations. These too have their shortcomings: cavitation or an increase in viscosity can put the pump’s rotor out of alignment. Blackmer believes that a better alternative is its LD17 series of centrifugal pumps, available in 11 models to suit different site configurations, flow rates and temperature ranges. Blackmer designed the LD17 pumps from the seal outwards, as this is where 90 per cent of pump failures occur. The pumps also feature a stiffer, heavy-duty shaft and larger bearings, which help prevent vibration damage while also delivering the widest operational window. Flow rates of up to 320 m3/hr are possible, with high-temperature models able to handle product at up to 400°C.

PHENOL IS AN important product in the chemical value chain and is widely moved in bulk around the world. It does, though, present some challenges, not least in transfer operations, due to its dermal corrosivity properties and also its high freezing point of 32°C. As it falls towards that temperature, it becomes viscous, causing problems with pumping.

temperature, while also being able to prevent leaks and spills. In the past, sealed ANSI centrifugal pumps have been in general use in phenol transfer operations. The drawback of these basic types of pump lies in the mechanical seals, which can fail through vibration or as a result of the radial load that they experience. Not only is this expensive, with seals costing around

CHANGE FOR THE BETTER Blackmer reports a successful installation of its LD17 pumps at a phenol producing plant in the north-east US, which had been experiencing repeated failures in the mechanical seals on its centrifugal pumps. The pump was sited in a corner of the facility, where off-spec phenol was transferred to a bottoms tank for later re-use in the production process as needed. The company found that, at temperatures close to its freezing point, the pump would experience vibration and radial deflection of its impeller and shaft, leading to seal damage. There was also an issue with the location of the pump: in the case of seal failure, a leak might not be spotted for some time, allowing phenol to leak to the ground; in winter this would freeze while in summer it would gather in a slushy puddle. In either case, it was difficult to clear up and posed a health hazard for workers. The operator decided to replace its existing pump with a Blackmer LD17 unit, as it had

In particular, pumps and piping used to move phenol have to have steam jacketing in order to prevent the phenol crystallising and freezing, which would stop the pump from working and also necessitate a tricky cleaning job. As such, pumps need to have an optimised flow rate and maintain a high

$3,000 each, but it presents a hazard, since the pump will need to be flushed and cleaned of phenol before it can be handled to replace the seal. Some operators have avoided these issues by using a seal-less pump, such as a canned-motor pump, in phenol transfer

experience with the brand in other applications. The new pump, fitted with double mechanical seals, was installed in 2017 and has operated without issue since then, with no leaks reported and no need to replace any of the seals. www.blackmer.com

A STICKY PROBLEM PUMPS • OPERATORS HANDLING PHENOL KNOW IT CAN BE A TRICKY SUBSTANCE TO TRANSFER. THAT IMPOSES GREAT STRESSES ON THE PUMPS USED, SOMETHING THAT BLACKMER IS ADDRESSING

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THE FUTURE OF RAIL? SAFE WITH US. ON BOTH SIDES

At Fort Vale, we’ve never felt at ease fulfilling ‘existing requirements’ - we prefer to think years ahead, so that when you buy our equipment, you know it will still be viable in 10 or even 20 years time. You could call it future-proofing - we just call it common sense. Available from 2022, the Fort Vale Gas RAILTYT Product Range is made to the highest standards, ensuring quality, safety and security well into the 21st century. Manufactured in stainless steel (anything less increases the likelihood of corrosion) ensures longevity of equipment whilst minimising down time and M&R costs. The Y-valves have a lockable handle function for security and safety, whilst they are bellows operated and are rated to a MAWP of 30Bar - higher than any others on the market (see what we mean about future-proofing?). Safety, reliability and significantly increased flow rates - all with global support from Fort Vale. Not every company can do this. Not every company is Fort Vale. FORT VALE. FOLLOW THE LEADER. Visit us at www.fortvale.com

and access equipment, with versions that suit the requirements of both the European and American markets in the most demanding environments. Over the last ten years, we have made ever-increasing inroads into the supply of equipment for the rail transport market.

TWO YEARS OF Covid and what do you get? Well it would seem that we get chaos, if one is to glance at the headlines and the state of air travel in Europe at present. But it isn’t all doom and gloom – other modes of freight transport

Ukraine, and the EU suggesting a stopgap solution to utilise the European rail network to get the grain out, and it certainly suggests that the rail network is as vital as it has ever been.

MAKE AN OFFER Which begs the question, what can Fort Vale bring to the rail industry? It may help to give some background. Founded in 1967, Fort Vale quickly established itself as a supplier of valves to the petroleum industry, its products being praised for their excellent build quality, innovative design and ability to withstand the toughest environments. Success in one field led to applying those same qualities to other areas and Fort Vale is now the world’s leading manufacturer of valves and fittings for the safe transport of liquids, powders and gases. The company’s emphasis has always been one of continual improvement – incremental change borne out of research and experience that leads to a world-beating product, using the best materials and technical know-how derived from the last 50 years of operation. Ostensibly, we are just applying the lessons we have learned over that time period. The problem is the same across all spheres – how to load a wagon safely and securely, with minimum ingress, and then let it out again, safely and securely, with minimum egress. A rail car or rail wagon is essentially the same type of freight tank that is used on railroads, but the terminology, equipment and regulations differ between the US/Canadian rail industry and the European rail industry – European rail wagons are manufactured in accordance to Regulations concerning International Carriage of Dangerous Goods by Rail (RID), while US rail cars and equipment are manufactured in accordance with Association of American Railroads (AAR). Similar to road transport, the rail wagon/rail

are getting back to normal without any problems at all. In fact, rail freight is proving adept at solving logistical nightmares that road, air and sea cannot, with usage back to pre-pandemic levels in the UK. Add to that the considerable shortfall in wheat yields because of the war in

The rail wagon market is a highly diverse sector, both in terms of customer specifications and geographical operating conditions. Fort Vale has many years of experience in designing valve solutions for liquid and gas transport globally, which has enabled us to produce a range of robust valves

car is a stainless steel or carbon steel pressure vessel surrounded by insulation and mounted on a bogey. Liquid rail wagons/rail cars will be carbon steel if carrying oils and fuels, or stainless steel if carrying chemicals. Rail wagons/rail cars are also manufactured to allow the transport of gases. These are

CATCH THAT TRAIN RAIL EQUIPMENT • RAIL HAS PROVEN ITSELF AS A RELIABLE TRANSPORT MODE DURING RECENT DISRUPTIONS, BRINGING A FOCUS ONTO TANK CAR EQUIPMENT. FORT VALE’S ASHLEY LEACH* EXPLAINS

HCB MONTHLY | JULY-AUGUST 2022

TANKS & LOGISTICS 35

higher pressure tanks and use specialised equipment different to that of the liquid tanks - so producing equipment that satisfies these requirements is anything but simple. As a part of all this, equipment has to be able to withstand internal and external pressures – we take great pride in the longevity of our products – they are designed to last, with minimum maintenance. WHAT RAILROADS NEED In 2012 we were approached by a US client to look into producing rail equipment for that market. We have always had the ability to produce short-run and bespoke projects and, as the equipment trials progressed, it was obvious that our knowledge could be of considerable benefit – those trials led to our original Rail Product Range in 2014. This in turn led to a European range being introduced in 2018. Building on this, the company has announced a new LPG Rail Product Range for 2022 – the new range represents an increase

 FORT VALE’S NEW RANGE OF STAINLESS STEEL EQUIPMENT FOR RAIL TANK CARS PROMISES TO GIVE OPERATORS BETTER PERFORMANCE, GREATER FLEXIBILITY AND A LONGER WORKING LIFE

in corrosion resistance, flow rates and overall effectiveness - including a hydraulic bottom discharge valve; LPG bellows-operated Y-valves; bottom discharge with hydraulic indicator, bottom discharge with mechanical indicator, hydraulic pump, bottom discharge and pump assembly. One of the biggest advantages over competing systems is that the equipment is manufactured from stainless steel – this improves corrosion resistance and ensures longevity while minimising downtime and M&R costs. The Y-valves have a lockable handle function for security and safety, are bellows-operated and rated to a MAWP of 30 bar (as are the bottom discharge valves), which is comfortably higher than any others on the market and therefore safer to use. The Y-valves also offer significantly increased flow rates compared with other models due to the CFD-optimised internal geometry. Other features include a Direct Drive Linkage that is always centralised to the poppet; hydraulic indicators that signal if the hydraulic system is in danger of failing (though standard indicators are also available); a low profile pump design, which is 10 kg lighter than conventional designs and gives greater flexibility for positioning on the wagon; and an innovative anti-cavitation plate that reduces the risk of cavitation. Cavitation

is the rapid formation and collapse of vapour bubbles within a liquid, when they collide with internal surfaces it causes the valve to wear. The CFD-optimised internal geometry means quicker discharge times and a substantial increase in flow rates. A wide range of sealing materials is available for complete cargo compatibility. Shear studs as standard, which ensures that the tank seals in the event of a collision. Industrystandard mounting flanges enable fitting to current wagon designs without the need for alterations. It is the cumulative effect of all these minor improvements and innovations that enable these products to be so effective and, as a company, Fort Vale will continue to improve and innovate in the quest for perfection – it’s the Fort Vale way. All aboard? MANAGEMENT CHANGES Fort Vale has recently announced a transition at the top of its Netherlands operation, with Terry Clough, managing director of Fort Vale BV due to retire at the end of August. “Terry has worked for Fort Vale for over 34 years and has made an enormous contribution to developing the business in The Netherlands,” the company states. “His technical expertise, loyalty and dedication have led to continuous business growth, making Fort Vale BV the successful operation it is today. Terry also played a significant role in pushing Fort Vale to develop a range of products suitable for the European rail market and helping us become a globally established supplier in this industry.” Ton Stam will replace Clough as managing director on 1 September. He moves up from his role as European sales manager, based in the UK, but was previously with Fort Vale BV and has a total of 18 years with the company. “Ton is well known amongst our customers and over the last three years has been helping develop business across the tank container, rail and road transport sectors,” Fort Vale says. *Ashley Leach is technical sale engineer at Fort Vale. www.fortvale.com

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36 TANKS & LOGISTICS

THINGS WILL GET BETTER TANK LEASING • HOW HAVE RECENT SUPPLY CHAIN DISRUPTIONS AFFECTED TANK LESSORS IN NORTH AMERICA? HCB SPOKE TO RON DOYLE, SEACO’S VP MARKETING & CONTAINER SALES, AMERICAS, TO FIND OUT

HCB: How has supply chain disruption affected the tank leasing sector? Do delays caused by factors such as port congestion and driver shortages (especially in the US) mean demand increases? RON DOYLE: The market experienced a spike in leasing activity towards the end of the third quarter 2021 as a result of customers seeking to reduce the risk of expected tank imbalances across the globe and ensure their products continued to move. There is something of a dichotomy in the market: albeit softening somewhat very recently, port congestion combined with driver shortages increases demand due to the supply chain inefficiencies; on the other hand, limited vessel space and higher ocean freight rates reduce demand. Customers see no reason to increase international tank containers in their fleet if they cannot get space from carriers or can source regionally to avoid historically high ocean freight levels. Subsequently, customers are not returning units and the majority anticipate an uptick in imports/exports as congestion issues ease and freight costs return to a more ‘normal’ level. They prefer to maintain their current fleet size in the short term, expecting increased demand and activity in 2023.

 AVAILABILITY OF THE APPROPRIATE EQUIPMENT WILL BE KEY TO HANDLING THE ADDITIONAL VOLUMES OF CHEMICALS EXPECTED

HCB MONTHLY | JULY-AUGUST 2022

Shippers are well aware of the tight market globally for equipment and, even with the current economic uncertainty of a recession, the overall expectations are that business will recover and international activity will ramp up as the congestion issues continue to improve. As many look to source materials and products on a much more regional level, avoiding transpacific and transatlantic movements, we have seen more North American firms seek tanks for storage and domestic traffic than ever before.

HCB: Has Seaco been able to increase its rates in view of demand changes? Are operators/shippers taking more tanks from lessors? RD: Rates are on the rise, driven more by an increase in original equipment costs (OECs) than as a result of increased demand at this time. In terms of newbuild tanks, Seaco continues to invest strongly in this asset class and across all tank types in line with market demand. HCB: What is your view of the outlook for the tank leasing sector in the near- and medium term, given the potential for economic and geopolitical uncertainty? RD: Most customers believe their fleets are well sized for the near term (next six months) and that they do expect to increase their fleet or replace older tanks with newer tanks in 2023 and beyond (medium term). For specialty chemicals and most raw materials and with many of their final products somewhat recession-proof these will be in continued demand no matter the economic uncertainty. www.seacoglobal.com

SECTION SLUG 37

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38 TANKS & LOGISTICS

ONE FOR THE TEAM WAREHOUSING • HOYER’S SUPPLY CHAIN SERVICES DIVISION IS HELPING EVONIK IMPROVE ITS SUPPLY CHAIN AND REDUCE ITS CARBON FOOTPRINT THROUGH A NEW FACILITY IN ESSEN THE HOYER GROUP has handed over a newly commissioned logistics site in Essen, Germany to its client Evonik. The two companies worked closely together in the concept design of the facility, which meets Evonik’s high demands for safety, customer orientation, quality and efficiency in the handling of liquid chemicals and finished products. Hoyer used a dedicated team of experts from its Supply Chain Solutions unit to play its part in the project. This division of the group, one of the leading specialists in the transport and handling of liquid dangerous goods, provides customers in the chemical and gas industries with committed expertise in on-site and warehouse logistics. The new logistics centre, which is located adjacent to Evonik’s production facility and is being operated by Hoyer, features state-ofthe-art equipment so that the receipt, storage and picking of products are semi- or fully automated as far as possible. The flow of goods through the facility is monitored

HCB MONTHLY | JULY-AUGUST 2022

digitally by the seamless tracking of SSCC18 pallet numbers. This increases efficiency in processing and personnel deployment, thus simplifying and speeding up the complex value-added chain of the chemical industry: a critical success factor in this sector. It is also the first time that Hoyer has used driverless transport systems in a warehouse. In addition, there are semi-automatic storage and retrieval devices, with the option of driving forward full automation of the warehouse. FACE THE CHALLENGE “We understand the challenges our customers face – and support them with customised solutions to meet these successfully,” says Björn Schniederkötter, Hoyer CEO. “Safety and efficiency set the parameters in this respect. We welcome the fact that Evonik shares our concepts of value. In addition to a dedicated protection and prevention concept, the new location inspires confidence through efficient work lines,

state-of-the-art equipment, intelligent software and energy-efficient plant.” The new logistics centre is Evonik’s largest international finished product warehouse for palletised goods; its location, approach routes and processes were worked out in detail by Evonik and Hoyer so that Evonik can easily transfer finished products from its manufacturing complex, its largest in Europe, across the boundary to the logistics centre. This precise planning will contribute towards Evonik’s targets in terms of emissions reduction, saving some 3m tonne-km of road transport per year (equivalent to around 3,000 truck journeys) and reducing CO2 emissions by 210 tonnes per year. In-plant vehicles are fully electric, while the use of LED lighting also contributes to emissions reduction. The ramp-up in volume terms to the target filling level will be achieved in the second half of this year, Hoyer promises. The warehouse offers 27,000 pallet spaces on 19,000 m2 of floor space for 18,000 tonnes of products. Hoyer’s Supply Chain Services division offers a range of services to the chemical supply chain, including on-site logistics, filling and blending, contract warehousing, tank container storage, project development and integrated logistics solutions. In addition, it operates its own logistics sites in Europe and the Middle East. www.hoyer-group.com

SECTION SLUG 39

40 TANKS & LOGISTICS

bi-directional communication between the office and the driver. The data collected allows advanced fleet tracking and monitoring, full transparency of delivery status and easy access to load results, unload results and trip event information.

“IN RECENT TIMES, supply chains have become more compartmentalised than ever,” states Volker Braun, managing director and CTO of Implico Group. “Consequently, product moves through many hands before it reaches its destination. To streamline their operations and make smart decisions, liquid bulk traders need maximum transparency, collaboration, and information flow within their partner networks. Connected Truck provides exactly that – comprehensive, accessible, and in

as part of SAP’s industry cloud portfolio for the oil, gas and energy sectors, through the SAP Store. Using the SAP Integration Suite, the capabilities of the SAP Business Technology Platform (BTP) can be combined with SAP S/4HANBA. The Connected Truck solution establishes a direct link between the truck driver and the back office. “This is a game-changer for trip planning and reconciliation for bulk deliveries,” Implico says. “It gives all parties

ENABLE INTELLIGENCE SAP is expanding its vertical solutions to industry, with the aim of enabling companies to become what it calls “intelligent enterprises”. Its ecosystem of cloud-based solutions leverage SAP BTP, with advanced technologies, and are interoperable with SAP’s intelligent suite. Implico Group is collaborating with SAP to create offerings that meet specific secondary distribution industry requirements to provide customers with tools to help achieve positive business outcomes. “Complementing our portfolio, Connected Truck by Implico Group enables all-new forms of collaboration for secondary distribution,” says Jean-Marc Delbos, director of SAP’s Oil, Gas, and Energy Industry Business Unit. “The solution is a prime example of how the collaboration between our organisations can deliver value for customers. We look forward to continued collaboration with Implico to create innovative cloud solutions and applications for energy leaders who want to drive cost-effective and sustainable growth in their industry.” Implico is a partner in the SAP PartnerEdge® programme, which provides the enablement tools, benefits and support to facilitate building high-quality, disruptive applications focused on specific business needs – quickly and cost-effectively. Implico is also a Microsoft Gold Partner and a member of the Oracle Partner Network in the field of terminal automation systems. Implico has

real time.” Braun is explaining the reasoning for Implico to put its Connected Truck solution

involved a comprehensive overview of the operation. Also, it facilitates a quick, aim-oriented, and purposeful exchange.” For daily business, Connected Truck provides ‘smart-trip’ execution with mobile support, eliminates information gaps, provides real-time process visibility and allows

been offering innovative IT systems for the downstream sector for more than 35 years, with the aim to empower storage, distribution and retail companies to excel in their digital transformation journeys. www.implico.com www.sap.com

TALK TO THE TRUCK DIGITISATION • SAP HAS ADDED IMPLICO’S TRUCK COMMUNICATION SYSTEM TO ITS CLOUD PORTFOLIO, HELPING HAULAGE FIRMS AND THEIR CUSTOMERS BY OFFERING GREATER VISIBILITY

 IMPLICO’S CONNECTED TRUCK DOES WHAT IT SAYS: CONNECTS THE TRUCK WITH THE OFFICE

HCB MONTHLY | JULY-AUGUST 2022

EQUIPMENT AVAILABLE FOR LEASE OR SALE WORLDWIDE

OUR MOST DIVERSE TANK FLEET THE RIGHT TANK FOR THE RIGHT CARGO Seaco offers a modern and diverse tank fleet, suitable for the storage and safe transportation of hazardous and non-hazardous bulk liquids, gases (including Cryogenics) and bulk powder products. Why choose Seaco: • • • • • •

www.seacoglobal.com

Quality build Fully intermodal T11-T75 tank types Dedicated technical team support Flexible leasing plans Customised tank solutions available Global network of specialised depots

OVER 50 YEARS OF TANK CONTAINER LEASING EXPERTISE. VISIT SEACOGLOBAL.COM AND SPEAK TO YOUR REGIONAL TANK SPECIALIST

NEWS BULLETIN

TANKS & LOGISTICS

VTG ON SALE AGAIN

VTG is on the brink of being sold again, six years after Morgan Stanley Investment Partners (MSIP) and Joachim Herz Stiftung acquired a majority share. The two parties have agreed to sell their 72.55 per cent holding to the Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP), which will take equal shares. The deal values VTG at some €7 bn. “The growth of Europe’s rail freight market is backed by a modal shift to rail as a key enabler of the decarbonisation of supply chains,” notes Khadem Al Remeithi, executive director of ADIA’s Infrastructure Department. “This investment in VTG aligns with our continued focus on pursuing infrastructure opportunities backed by strong energy transition-related tailwinds. For this transaction we have worked hand-in-hand with GIP, a long-standing partner, to invest in a market leading business with an established track record.” Adebayo Ogunlesi, chairman/CEO of GIP, says: “We are excited by this investment and the opportunity to leverage GIP’s deep industry expertise in the rail sector to build on a market-leading European transport infrastructure platform. This acquisition is aligned with GIP’s energy transition and decarbonisation strategy as the European rail sector is set to benefit from significant policy support as one of the most deliverable and cost-effective near-term decarbonisation levers available to governments for meeting net zero targets in transport. This transaction complements other recent high quality investments to place GIP in an excellent position in the current macroeconomic environment. We look forward to partnering with ADIA and working with them to develop this unique platform.” Christoph Oppenauer, managing director of MSIP, adds: “MSIP had identified VTG early on as a remarkably resilient transport asset with

HCB MONTHLY | JULY-AUGUST 2022

a stable track record and viewed it as having strong growth potential. Through multiple transformational measures and consistent portfolio alignment, MSIP believes it has prepared the company for the next stage of its growth story.” Hamburg-based VTG currently has some 88,500 rail cars in its portfolio, the largest privately owned fleet in Europe; it comprises tank wagons, intermodal wagons, standard freight wagons and sliding-wall wagons as well as about 5,000 tank containers. Besides hiring out rail freight wagons and tank containers, it also provides multimodal logistical services and integrated digital solutions. Completion of the transaction is subject to customary closing conditions. www.adia.ae www.vtg.com MORE FOR MILKYWAY

Lingang Special Logistics, a joint venture between Lingang Group and Milkyway Chemical Supply Chain Service, has opened a new warehouse complex in the Shanghai Lingang Logistics Park in the Yangtze estuary.

The complex features five warehouses with a total capacity of 7,800 m2 for dangerous chemicals, including cold storage, temperaturecontrolled areas and dedicated areas for the storage of gases. It offers links to air, sea, rail, road and river transport. The partners plan to add other services, including distribution, export packing, import inspections and a bonded area. “The launch of Lingang Special Logistics will provide essential hazardous chemical supply chain services for high-end manufacturing and industries such as new energy vehicles, chip semiconductors and biomedicine in the new area, greatly alleviating the cost and safety problems of cross-district storage and supply for enterprises,” says Yuan Guohua, chairman of Lingang Group. Milkyway embarked last year on an aggressive global expansion plan and reports that it is progressing well. The Singapore branch, opened late last year, has already garnered contracts with several multinational chemical producers, including BASF, Dow, Arkema and ChevronPhillips, for local logistics services. Branches in the US and Germany

TANKS & LOGISTICS 43

were established during the first quarter, offering air and sea forwarding as well as tank container operations. Milkyway is due to launch its new airfreight service between China and Budapest shortly, servicing European companies in the electronics, automotive and chemical industries. Further new branches in Houston, San Francisco, Hamburg and Milan are being planned. “By promoting its process of globalisation, Milkyway realises part of the vision, which is to prosper the industry and become the catalyst for domestic chemical companies becoming global giants,” Milkyway states. www.mwclg.com KENAN CONSOLIDATES

Kenan Advantage Group has begun combining its five fuels transport operating companies under one brand, KAG Energy. The five existing brands, Kenan Transport, Advantage Tank Lines, Klemm Tank Lines, Petro Chemical Transport and KAG West, together offer the largest fleet of tank trucks in North America, with operations in the US, Canada and Mexico. “By creating this entity and combining these subsidiaries into one company, we further strengthen our exceptional services to our

customers while making sure we are better unified as ‘One Team’ under KAG Energy,” says Jason Platt, executive vice-president of KAG Energy. Platt acknowledges that the transition will take time: it is not merely a question of rebranding its trucks but of capturing the best practices of each operating group and combining its marketing and customer-facing services. In addition, merging the five fleets will allow better utilisation of its employed drivers and independent contractors, which will be significant in dealing with the challenge of the driver shortage. www.thekag.com STOLT MOVES TO RAIL IN SAUDI

Stolt Tank Containers (STC) has signed an MOU with Saudi Arabia Railways (SAR) with a view to shifting transport of its tank containers off the roads and onto rail. “Many of our customers in the region have experienced strong market growth in recent years,” remarks Hans Augusteijn, president of STC. “This, coupled with high levels of ongoing investments in local infrastructure makes this transition a sensible decision that will benefit both customers and the planet. Using rail to transport our tanks will not only

improve our service offering, it is also more environmentally sustainable than transporting goods by road. “In 2020, we announced our ambition to reduce the carbon footprint of our transportation partners by 40 per cent (relative to 2008 levels) by 2030,” Augusteijn adds. “The agreement with SAR supports that ambition and our long-term strategy to offer a flexible choice of transport mode to our customers when they ship their bulk liquids with us. We are also working across our other markets to develop alternatives to road transport to safely move our tank containers around the globe.” www.sar.com.sa www.stolttankcontainers.com HOYER INTO HYDROGEN

Hoyer has begun distributing liquefied hydrogen to service stations across Europe as part of its full-service portfolio of service station logistics. The move follows the consolidation earlier this year of its fuel distribution and gas logistics operations. “We have specialists with expertise both in supplying service stations and in gas logistics. We have operated both business areas safely and reliably for many decades,” states Richard Thompson, commercial director of Hoyer’s Gas & Petroleum Logistics division. By combining its know-how in handling gases with experience in digital, systemsupported supplies to service stations, Hoyer now also offers automated, prediction-based product inventory management and supply logistics for H2 as well. Thompson adds: “We can now provide service station network owners with our management services both for fossil fuels and also for alternative fuels. We undertake prognostic planning and full implementation for both product types, all from a single source, and of course with productspecific expertise.” www.hoyer-group.com

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8-10 NOVEMBER 2022 | RAI AMSTERDAM

YOUR PLATFORM IN EUROPE TO MEET THE GLOBAL CONTAINER INDUSTRY

Organised by:

COURSES & CONFERENCES 45

CONFERENCE DIARY Things are beginning to settle down but the ongoing global Covid-19 pandemic continues to cause cancellations or postponements of some events. HCB is endeavouring to keep on top of developments but readers should check the dates and locations shown below as things can change rapidly.

AUGUST CExpo Logisti-K AUGUST 9-11, BUENOS AIRES

FECC Congress

SEPTEMBER 13-16, NEWPORT NEWS

Annual meeting of the European Association of Chemical Distributors

39th annual networking and training meeting sponsored by the Virginia Association of Hazardous Materials Response Specialists

14th international exhibition for logistics technology and equipment

www.fecc-congress.com

www.expologisti-k.com.ar/en/

Gastech 2022

ChemEdge

International conference and trade show for the LNG and LPG industries

www.virginiahazmat.org/annual-hazmat-conference/ SEPTEMBER 5-8, MILANO

AUGUST 16-19, INDIANAPOLIS

Virginia Hazmat Conference

SEPTEMBER 5-7, SITGES

Conference for the North American chemical distribution sector

www.gastechevent.com

www.nacd.com/education-meetings/

IMHX 2022

Pumps & Valves Asia SEPTEMBER 14-16, BANGKOK

Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com

meetings/2022-chemedge/

SEPTEMBER 6-8, BIRMINGHAM

Achema

International material handling and logistics exhibition

AUGUST 22-26, FRANKFURT

www.imhx.net

Exhibition and conference for the specialty chemicals sector

SMM

SCHC Annual Meeting SEPTEMBER 17-22, ARLINGTON, VA

Annual Meeting of the Society for Chemical Hazard Communication www.schc.org/meetings

www.achema.de

SEPTEMBER 6-9, HAMBURG

Megatrans

30th biennial exhibition and conference for the global shipping industry

Tank Truck Week SEPTEMBER 18-21, HOUSTON

NTTC’s Annual Tank Truck Show & Maintenance Seminar

AUGUST 24-26, MELBOURNE

http://smm-hamburg.com/en

Biennial trade show for the freight sector in Australia and internationally

Labelmaster DG Symposium

www.megatrans.com.au/

SEPTEMBER 7-9, CHICAGO

17th annual Dangerous Goods Symposium hosted by Labelmaster’s DG Exchange

CVSA Annual Conference

PPC Fall Meeting AUGUST 28-30, NASHVILLE

www.dgexchange.com/

Bi-annual meeting and tradeshow of the Petroleum Packaging Council

Annual meeting of the Commercial Vehicle Safety Alliance

CHEMTREC International Hazmat Summit

www.cvsa.org/events/cvsa-annual-conference-and-

www.ppcouncil.org/upcoming-meetings.php

SEPTEMBER 12-14, NEW ORLEANS

exhibition/

SEPTEMBER

Biennial forum for parties involved in the safe transport, handling and use of hazardous materials

TSA Conference & Exhibition

https://tanktruck.org/Public/Events/Tank-Truck-

www.chemtrec.com/news-events/chemtrecBulk Tanker Day

international-hazmat-summit

SEPTEMBER 2, MELBOURNE

Week/Public/Events/Tank-Truck-Week.aspx

SEPTEMBER 18-22, RAPID CITY, SD

SEPTEMBER 22, COVENTRY

21st annual meeting of the UK Tank Storage Association www.tankstorage.org.uk/conference-exhibition/

13th annual road tanker event hosted by the National Bulk Tanker Association

FIATA World Congress

www.nbta.com.au/bulktankerday/

Annual congress of the International Federation of Freight Forwarders Associations

SEPTEMBER 13-16, BUSAN

www.fiata.com

Hazards Australasia 2022 SEPTEMBER 25-27, MELBOURNE

Conference on process safety management in the chemicals sector www.icheme.org/career/events/hazards-australasia/

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

3/5/22

Vehicle Type

Substance

Details

Source

Sytne, road tanker fuel Rivne, Ukraine

Road tanker with unspecified load was involved in collision with bus and car on Kyiv-Chop highway in Dubno district; vehicles caught fire after the crash, which injured six people

MENA FN

3/5/22

Whitaker, road tanker tar Pennsylvania, US

Driver of tank truck hauling tar lost control on River Road near Rankin Bridge; tanker overturned, spilling some cargo; driver not badly hurt; roads closed during response

WPXI

9/5/22

nr Khopoli, road tanker propylene Maharashtra, India

Driver lost control of tanker with propylene on exit slip from Pune-Mumbai expressway; tanker overturned, hit two cars and other vehicles; water applied to prevent ignition; four people injured; road closed

Hindustan Times

11/5/22 Deerlijk, truck gas cylinder Belgium

Roofer noticed problem with gas canister on truck; after parking, he and driver went to investigate when the canister exploded, killing one; nearby building damaged; responders removed remaining gas cylinders

VRT

12/5/22 Teysin, truck munitions Khabarovsk, Russia

One person killed, seven injured by explosion during unloading of munitions from truck at military base in far east of Russia; explosion sparked large fire

Moscow Times

16/5/22 Fall River, freight train hazmat Massachusetts, US

Freight train, said to be carrying hazardous materials, derailed at slow speed after hitting fallen tree; train remained upright but loco’s fuel tank was ruptured, releasing diesel to track; no injuries reported

WHDH

16/5/22 Stroud township, truck Pennsylvania, US

Tractor-trailer hauling pool chemicals overturned, spilling some of its load; several firefighters needed hospital treatment after inhaling fumes; officials monitoring nearby creek that runs into wildlife refuge

WNEP

18/5/22 Thane, road tanker aniline Maharashtra, India

Road tanker with 10 t ethyl benzyl aniline for Ratnagiri crashed on Ghodbunder Road while ascending flyover; fuel tank was ruptured but cargo tank not impacted; crane had to be brought in to move wreck

Times of India

19/5/22 Chandrapur, road tanker diesel Maharashtra, India

Road tanker with diesel collided with truck carrying logs on Chandrapur-Mul road; fire broke out after crash; nine people believed to have died in the blaze; fire brigade took an hour to attend

Economic Times

19/5/22 Palghar, road tanker LPG Maharashtra, India

Gas tanker overturned on Mumbai-Ahmedabad highway after driver lost control; major escape of gas cargo (assumed to be LPG); no injuries reported; severe traffic disruption during response

Times of India

21/5/22 nr Tawa, road tanker edible oil Maharashtra, India

Road tanker carrying 12,000 litres cooking oil overturned on Mumbai-Ahmedabad highway; driver hurt in crash; locals arrived to collect spilling oil; police had difficulty controlling crowd

Economic Times

23/5/22 Weber county, truck Utah, US

magnesium chloride

Significant response to incident, presumably involving crash of truck though details are sketchy, that resulted in spillage of magnesium chloride and diesel fuel; both spills were mitigated quickly by fire personnel

KUTV

26/5/22 Harmar, freight train Pennsylvania, US

petroleum products

NS freight train stuck dump truck near sewage treatment plant; 17 cars derailed, of which nine fell into creek, four leaking some petroleum distillates; USCG closed Allegheny River to traffic; no major impact on water

Pittsburgh Post-Gaz

31/5/22 Pokhara, road tanker aviation fuel Nepal

Road tanker with aviation fuel from Nepal Oil Corp overturned near runway of Pokhara airport, spilling part of its load; flights suspended during response, which involved crane on the runway

Deccan Herald

1/6/22

South Benfleet, road tanker aviation fuel Essex, UK

Road tanker with 38,000 litres aviation fuel caught fire at roundabout on A130; pictures showed it still upright but the trailer completely gutted; intensity of fire caused damage to road, street lights; no injuries

BBC

4/6/22

Edéa, road tanker fuel Littoral, Cameroon

Road tanker collided with truck on Douala-Yaoundé highway, sparking fire that consumed both vehicles, killing five people; investigation opened into cause of accident

Journal du Cameroun

pool chemicals

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Vessel

Substance

Details

Source

6/5/22

Tuzla, Turkey

Gulf Petroleum 4

carbon dioxide

Explosion during maintenance work on chemical tanker (13,000 dwt, 2009) caused rupture of CO2 cylinder; four or five people, mainly crew members, suffered inhalation injuries and required hospital treatment

FleetMon

23/5/22 Algoa Bay, unknown oil E Cape, South Africa

Oil spill reported as a result of ship-to-ship transfer of oil; not clear from reports if this was cargo transfer or bunkering operation; SAMSA officials boarded at least one vessel involved, pollution response units activated

The South African

23/5/22 Delaware River, CMT Y Not 6 scrap Delaware, US

Major fire broke out off Bombay Hook Point on deck barge carrying discarded household appliances and other scrap; six fire boats attended; no injuries reported, no pollution sighted

Maritime Executive

27/5/22 Montreal, Chem Hydra chemicals Quebec, Canada

Chemical tanker (17,050 dwt, 2009), with cargo of chemicals from Trinidad for Hamilton, Ontario, grounded on soft bottom in St Lawrence River; refloated same day, berthed at Ste-Catherine for inspection

FleetMon

27/5/22 Caribbean Sea Cetus unknown

USCG, Caribbean Coast Guard responded to distress signal from product tanker (2,350 dwt, 1982) north of Aruba; tanker said to be sinking after engine failure; crew abandoned ship, two missing; no sign of vessel

Maritime Bulletin

HCB MONTHLY | JULY-AUGUST 2022

SAFETY 47

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

Details

Source

28/4/22 Lahore, warehouse chemicals Pakistan

Major fire destroyed chemical warehouse in Hamdard Chowk area; reports suggest short-circuit was the cause; no injuries reported but machinery and other equipment were destroyed in blaze

Daily Times

1/5/22

Erbil, oil refinery crude oil Iraq

Missile attack on refinery sparked fire in one storage tank; second missile landed within the fence but caused no damage; security personnel reported finding launch pad in Nineveh Plain

MENA FN

8/5/22

Sialkot, fuel depot gasoline Punjab, Pakistan

Short-circuit said to be cause of fire that broke out in two storage tanks at fuel depot; 15 fire service vehicles attended, bringing fire under control in an hour

Urdu Point

Fire broke out at Impact Chemical Technologies plant, possibly during mixing of toluene and methanol; one worker needed treatment for flash burns; one vehicle destroyed but building not damaged

KTSM

Six workers died after explosion, fire at Melamin plant, reportedly during transfer of flammable material; operator cited human error; shelter-in-place advised due to dense black smoke

15/5/22 Balikpapan, oil refinery gasoline EK, Indonesia

One person killed, five injured – some contract personnel – by fire in hydroskimming unit at Pertamina refinery in East Kalimantan; fire extinguished in an hour

ANI

16/5/22 Burutu, pipeline crude oil Delta, Nigeria

Dozens of locals injured by explosion on Nigeria Agip pipeline, where people had earlier been collecting leaking condensate at a nearby village

Vanguard

17/5/22 Signa, Firenze, Italy

Fire broke out at Rindi-Polimeri plant overnight; plant was unoccupied at the time and police are investigating; facility was severely damaged but no injuries were reported

Italy-24

19/5/22 Ulsan, oil refinery oil South Korea

Eight people, including seven contractors, were injured by explosion during testing of alkylation unit at S-Oil refinery following maintenance; blast was felt in nearby buildings

Yonhap

26/5/22 Paradip, pipeline crude oil Odisha, India

IOC pipeline ruptured near IOCL Township, spilling some 15,000 litres crude oil; fire crews, IOC personnel worked to plug leak, mop up spilt oil; cause unclear, investigation underway

Orissa Post

11/5/22 Midland, Texas, US

chemical plant

methanol, toluene

12/5/22 Kocevje, Slovenia

chemical chemicals plant

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improve the safety and security of activities involving AN.

FOLLOWING THE DEVASTATING explosion in the port of Beirut, Lebanon on 4 August 2020 (above), which involved the detonation of more than 2,000 tonnes of ammonium nitrate (AN), many countries around the world have been examining their own regulatory oversight and industry best practices. Transport Canada’s Transportation of Dangerous Goods (TDG) Directorate was one of those, and it has now published the results of its review of the current regulatory landscape and best practices, both domestic and international, regarding the storage, handling, and transport

fertiliser in Canada, its report says, mirroring the experience in other countries. The storage, handling and transport of AN in Canada are subject to a regulatory framework at the federal level, involving not only Transport Canada (TC) but also Natural Resources Canada (NRCan), Environment and Climate Change Canada (ECCC), and the Canadian Border Services Agency (CBSA). In addition, land use planning and zoning, building standards, construction design and fire prevention requirements are enforced by the various provinces, territories and municipalities

ACCIDENT RECORD AN is stored in various locations across Canada, often close to population centres. Some of these are dedicated facilities, such as at manufacturing sites or mines, but others may be less well managed, at ports, construction sites or farms. AN can be stored in bulk (unpackaged) or in packages of different sizes, but in both cases it must be segregated from other chemicals and kept in clean, closed and dry containers or warehouses. TC identified a total of 165 incidents involving the transport or storage of AN since 1990, mostly taking place in the provinces of Alberta and Quebec. Of that number, 102 occurred during transport by road or rail and the remainder happened during handling at a facility. One of the most serious incidents took place near Walden, Ontario in 1998, when the driver of a truck carrying 18,000 kg of

of ammonium nitrate. While the AN used in the explosives industry has a well-defined regulatory framework, efforts should be made to better understand the role of federal, provincial, and municipal authorities in establishing the requirements pertaining to the management of AN used as

through Building and Fire Codes, raising the potential for different standards in different parts of the country. As part of its review, TC also identified numerous industry best practices and documents, both domestic and international, that could be adapted in Canada to

explosives (part of which was AN prill mixed with fuel oil) lost control and ran off the road; a spark ignited a fire in the truck which, after about 35 minutes, led to an explosion that created a 30-metre crater in the road and triggering tremors that could be felt 10 km away. Fragments of the truck were blow up to

AMMONIUM NITRATE • THE DEVASTATING EXPLOSION IN BEIRUT IN 2020 PROMPTED MANY COUNTRIES TO EXAMINE THE STORAGE OF EXPLOSIVES. CANADA HAS IDENTIFIED SOME ISSUES

HCB MONTHLY | JULY-AUGUST 2022

SAFETY 49

2.7 km away. Fortunately there were only minor injuries sustained during the incident, mainly relating to exposure to AN. As a result of that incident NRCan considered reducing the maximum permitted load size of explosive during transport. TC also looked at the potential for AN to be used maliciously in terrorist attacks. Given its widespread use, AN can be stolen relatively easily and has been used in a number of well documented attacks in Oklahoma City, Oslo, London, Hyderabad and New Delhi, among others. To address this global security issue associated with AN-based bombs, global efforts have been taken to require access control and accountability in the production and use of AN worldwide. REGULATORY LANDSCAPE In Canada, federal regulations cover many aspects of safety and security in the transport, storage and handling of AN, with NRCan regulating all aspects through the Explosives Act and the Explosives Regulations 2013. The security requirements focus on suppliers and control access, sale and inventory to ensure that AN is not intentionally misused. The safety requirements ensure that workers are adequately trained for their tasks and that storage installations have safety plans in place with emergency procedures that reduce the likelihood of harm to people or property is minimised. National standards also exist that set out additional safety requirements. In transport, federal regulations cover all modes, either specifically covering dangerous goods (the TDG Regulations) or each mode (for instance, the Railway Safety Act). Where no federal authority exists, such as in the case of fire or building codes, federal models and guidelines have been developed to guide provincial and municipal practices. These federal models do not prescribe requirements but, rather, articulate best practices and provide example regulations that may be adopted. In instances where provincial authority is shared with the municipalities, again using the example of fire or building codes, provinces put in place model codes which a municipality may adopt, but are free to add additional safety requirements. Moreover, a municipality may

adopt the federal fire code model and adapt/ modify it according to specific needs. For example, land-use planning and zoning are governed by provincial/territorial legislation and implemented by municipalities. The latter are responsible for preparing and adopting planning instruments in their respective jurisdictions, such as official plans and by-laws. This allows municipalities to control use of their territory and provides them with a regulatory zoning framework, which includes details pertaining to lot size, suitable use, and the height of buildings. In this way, municipalities regulate the location of AN within their jurisdiction and specify the conditions under which AN-related activities may be undertaken. In the case of construction standards and fire prevention, storage facilities containing AN of Division 5.1 in quantities of more than 1,000 kg are subject to provisions set out in the National Building Code (NBC), National Fire Code (NFC) and National Farm Building Code (NFBC). These form the basis for all provincial/territorial and municipal codes but, to have legal force, have to be adopted by local authorities. Most provinces/territories have done so but, for example, while New Brunswick and Manitoba follow the 2010 editions of NFC and NBC, six other provinces and territories have updated to the 2015 edition; in addition, Quebec has its own codes based on the 2010 editions and British Columbia, Alberta and Ontario have their own codes based on the 2015 editions. TC’s review looks into the resulting differences in requirements and states: “Since such variances exist, a more comprehensive analysis of municipal and provincial codes would be useful in assessing whether the specific AN storage requirements satisfy safety and security best practice for storage.” CONCLUSIONS AND PROPOSALS Summing up its findings, TC says that the

of practices and international best practices. Nevertheless, there may be opportunities for further enhancement. In particular, the Ammonium Nitrate Storage Facilities Regulations, which falls under the Railway Safety Act, differs from the TDG Regulations in terms of the classification and identification of AN-based fertilisers, which can cause miscommunication. The Ammonium Nitrate Storage Facilities Regulations also only apply to federally regulated railway companies, thus missing a large number of users, manufacturers and distributors, include out-of-date safety distances and allow storage facilities to be constructed from combustible materials. The multi-jurisdictional approach to the regulation of AN also creates some challenges for the regulated community, TC says. For example, when looking at storage facilities, a regulated party must comply with regulations at the federal, provincial and municipal level. Moreover, some of these regulations only apply in specific situations: storage facilities containing less than 1,000 kg of Division 5.1 AN or any amount of Class 9 AN have no specific safety or security requirements and, unless covered by municipal land-use planning requirements, could even be located in a densely populated area. Indeed, as municipalities may adopt or modify the various applicable codes, there may be significant variations across the country, making it difficult to assess the impact of controls. Due to such variance, a more comprehensive analysis is being undertaken to assess whether AN storage meets adequate safety and security standards across the country. TC concludes that the management of AN is a complex and cross-cutting matter. It now plans to examine regulations under its authority to enhance regulatory clarity and maintain alignment with the UN Model Regulations, collaborate with industry,

regulatory framework in Canada is a shared jurisdictional responsibility and requires a strong collaborative approach between federal, provincial and municipal levels of government. Overall, it was determined that Canada’s AN regulatory framework is robust and is supported by industry’s comprehensive codes

provinces and territories to raise awareness and advise on the safety aspects pertaining to AN activities, and to create a one-stop shop to answer questions about the regulatory framework surrounding ammonium nitrate and promote awareness. tc.canada.ca

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zones where fire and explosion hazards may occur, which includes those resulting from an aerosol mist.

DIESEL IS A COMPARATIVELY low-hazard substance, at least in terms of its flammability, compared to other fuels. Indeed, some regulations provide specific relief for diesel, prompted in part by its importance in the transport industry and in other sectors. Under some conditions, however, diesel can be extremely flammable. The UK Health & Safety Executive (HSE) has been investigating the conditions under which mists and sprays

Its investigation centres on diesel since this is perhaps the most widely used example of such fluids and is often transferred under pressure in elevated pipework, an arrangement that can, in the event of a breach of containment, result in a mist being expelled. Industry manages the hazards by removing or replacing equipment that might cause ignition in areas where a flammable mist might be created. However, HSE says, industry

RESULTS SO FAR In order to get a better understanding of the hazards involved, HSE has partnered with industry in the MISTS2 research project, which aims to generate experimental data on the formation and ignitability of diesel mists so that realistic hazardous area classifications can be developed. As part of MISTS2, explosive atmospheres and fire safety experts at HSE’s Science and Research Centre undertook large-scale experiments investigating the extent of ignitability in diesel mist sprayed vertically downward. Their results showed that mist generated at 5 bar gauge through a 1 mm orifice remains ignitable for over 4.75 m. Ignition resulted in propagating flash fires, with the intensity of burning decreasing with distance from the release point. “The experimental results are improving our understanding of mist hazards,” HSE comments. “This will assist validation of mist dispersion and ignitability models, helping industry improve their guidance and standards to prevent fires and explosions of ignited mists such as diesel.” The research is continuing but HSE considers that the results obtained so far indicate a need for revision of existing guidance and standards, such as that included in the Energy Institute’s (EI) EI15 guide, the part of its Model Code of Safe Practice that deals with hazardous area classification for installations handling flammable fluids. In particular, HSE concludes, there seems to be a need for a “significant increase in size of zone” that might be required below a vertically oriented mist release, rather than a larger

of diesel – and other fluids, including hydraulic oils and lubricating oils – at temperatures below their flashpoint can result in jet fires, flash fires or explosions. HSE notes that incidents involving the ignition of mists have caused significant damage and multiple fatalities in the past.

guidance on the hazardous area classification needed to identify these risks is limited, with most such guidance focusing on flammable gases. Nevertheless, in the UK there is a legal requirement under the Dangerous Substances and Explosive Atmospheres Regulations 2002 (DSEAR) for facilities to classify areas into

radius around it. There also appears to be a difference in behaviour depending on the location and energy of the ignition source; this consideration will be a particular focus of continuing work. www.hse.gov.uk

SEE THROUGH THE FOG MISTS • AEROSOL MIST HAZARDS ARE NOT WELL UNDERSTOOD. HSE HAS DELIVERED SOME FINDINGS OF CONCERN AS IT CONTINUES ITS EXPERIMENTS WITH DIESEL MISTS

HCB MONTHLY | JULY-AUGUST 2022

SAFETY 51

THE WRONG PROFILE RISK • DISRUPTION IN GLOBAL SUPPLY CHAINS, GEOPOLITICAL STRESSES AND ECONOMIC AND SOCIETAL UNCERTAINTIES ARE ALTERING SUPPLY CHAIN RISK PROFILES. TT CLUB EXPLAINS MORE THE CHALLENGES INHERENT in today’s international trade and the supply chains that service it are painfully obvious – higher prices of energy and food, shortages of and delays in delivering manufactured goods, dynamic changes in markets and sourcing regions. The ongoing effects of the pandemic, with its associated lockdowns and the war in Ukraine are proving catalysts to ignite underlying economic and environmental trends that will continue to fuel long-term changes in the pattern of global supply and demand. As a specialist in providing insurance and risk management services to the international transport and logistics industry, TT Club is convinced that a thorough understanding of

the practical risks is vital in mitigating the dangers to safety and security that are a consequence of these dynamic factors. “We are suffering from a disappearing ability to absorb short-term shocks to the supply chain because of fundamental societal and geopolitical changes to the global equilibrium,” commented Dorota Jilli, a senior underwriter at TT Club, speaking at the Annual Conference of the European Sea Ports Organisation (ESPO) in Valencia in July. “Yes, Covid and the war are disruptive and are driving up prices but the longer term trends of production cost increases in Asia and stricter demands of ESG mean that cheaper goods and transport services are features of a past global economy.”

CHANGING RISK In her presentation, Jilli explained in detail some of the prevalent risks that operators face in this changed environment. Abandoned cargo is more prevalent, with delays resulting from port congestion and lockdown closures meaning the incidence of consignee bankruptcy or goods being unwanted due to loss of markets is higher. This is particularly concerning when dangerous goods are left in storage for excessive periods as the tragic incidents in Beirut last year and in Chittagong more recently attest. “Trends in cargo theft are also in flux with more essential goods such as food and beverages being targeted and luxury goods and electronics not so much as in the past,” commented Jilli. “Cargo at rest, either at ports or inland staging areas, some of which have been hurriedly pressed into service as overflow facilities, is increasingly subject to theft. With shippers looking for ‘workarounds’ to reduce costs or avoid congestion, thieves have been quick to adapt their methodologies and the use of online means of deception and insider recruitment are now both more common.” TT sees the correct use of data to analyse these trends as being of crucial importance and is utilising its own claims experience along with theft reporting agency information to maintain and expand the all-important industry awareness of the evolving dangers. This, in addition to the developing technologies to support the supply chain and offer predictable and resilient sourcing without the geopolitical risks of foreign suppliers and other disruptions, is seen as a primary mitigator in the management of the developing, modern, longer-term risk profile. Jilli concluded, offering wise advice to those operating in current and future global supply chains: “It is important to ensure that adequate risk assessments are undertaken across the full breadth of your operation in order to understand thoroughly the various risks and, where appropriate, develop mitigating actions and controls, together with effective continuity plans to protect your business.” www.ttclub.com

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THAT’S A WRAP ROAD • WP15 HAS FINALISED THE CHANGES THAT WILL APPEAR IN ADR IN 2023 AND HAS ALREADY STARTED MAKING THE NEXT ROUND OF AMENDMENTS. THERE SHOULD BE FEW SURPRISES THE UN ECONOMIC Commission for Europe (ECE) Working Part on the Transport of Dangerous Goods (WP15), which oversees the ADR Agreement and its technical annexes, held its 111th session this past 9 to 13 May, with Ariane Roumier (France) in the chair and Alfonso Simoni (Italy) as vice-chair. As has become the normal pattern, the meeting was held in hybrid format with representatives from 26 signatory countries and an observer from Egypt attending either in person or online. Also in attendance were representatives from the EU, the Intergovernmental Organisation for

for entry into force in the 2023 edition of ADR. Indeed, there were only a handful of working documents presented, mainly addressing ongoing issues; however, with the backlog of work caused by Covid-related restrictions, the spring Joint Meeting of RID/ADR/ADN Experts (HCB June 2022, page 44) had agreed a large number of late changes, which took up most of WP15’s time. As it was, WP15 confirmed most of those amendments adopted by the Joint Meeting and all other agreed amendments will be held over to the 2025 edition of ADR.

International Carriage by Rail (OTIF), the Transport Community, the EuroMed Transport Support Project (TSP) and eight non-governmental organisations. In more normal times, this spring session would be the last opportunity to make final changes to the amendments already adopted

BEFORE THE BALL Prior to getting down to the serious work at hand, WP15 welcomed the accession of Armenia (above) to the ADR Agreement, bringing the number of contracting parties to 53. Armenia’s neighbours, Azerbaijan, Georgia and Turkey, are all ADR contracting

HCB MONTHLY | JULY-AUGUST 2022

parties. WP15 reminded those 13 countries that have not yet ratified the protocol of amendmentof 1993 to do so in order that it can come into effect. WP15 also heard about the outcomes of the last session of its parent body, the Inland Transport Committee (ITC), in February. WP15’s secretariat was invited to report each year to the ITC on aspects of its work related to the circular economy and sustainable transport; WP15 also welcomed the endorsement of the ministerial resolution on enhancing resilient transport connectivity in emergency situations. In line with this, WP15 encouraged ADR states to use telematics in the transport of dangerous goods. It also noted Switzerland’s problems in the implementation of the guidelines on the use of electronic data interchange, as it had reported at the Joint Meeting, and asked that body to schedule a session of the informal working group on telematics in order to discuss the issues raised, including the possibility of adopting a step-by-step approach. ITC had also discussed the possibility of translating ADR into Arabic, which will require funding; the EuroMed TSP said that discussions had continued with the secretariat and the situation was looking optimistic – it hoped that a way could be found to translate the 2023 text into Arabic within the EuroMed

REGULATIONS 53

funding. WP15 noted that various options have been proposed that could result in an Arabic update on a biennial basis and also the translation of ADR into other official UN languages, including Spanish, in the future. WP15 also suggested that it would be useful to have a print version of the Arabic translation of ADR, in addition to an online version. JOINT MEETING DECISIONS The Working Party considered all the amendments proposed by the spring Joint Meeting session, adopting them for entry into force on 1 January 2023, with some changes. To recap, these mainly relate to: • Introduction of a new ‘SV’ mark to identify those tanks in flammable liquefied gas service that are fitted with a safety valve • A new special provision TE26 requiring the fitment of an instant closing, automatic stop valve for tanks intended for the carriage of flammable refrigerated liquefied gases, assigned to UN Nos 1038, 1961, 1966, 1972, 3138 and 3312 • A definition and construction requirements for extra-large tank containers • Numerous revised and new standards, and • Various transitional provisions. OTIF had noticed an irregularity in the applicability of the SV mark, insofar as the new provisions provided relaxation for tanks

with a capacity of less than 3,000 litres, whereas similar provisions for other applications refer to ‘not more than 3,000 litres’. The Working Party accepted it would be sensible to maintain consistency and changed the original text accordingly. It was noted that the revised version of EN 14025 would not be published before 1 June 2022 and therefore it was decided to withdraw reference to that standard in the 2023 edition of ADR; this will now be included in the amendments to enter into force in 2025. It was further noted that a number of other revised standards had not yet been published at the time of the meeting, though their appearance was promised before 8 June. This relates to EN 12245, EN 12252, EN 14912 and amendment A1 to EN 13094:2020. Draft amendments relating to these standards were adopted, providing they were published by 8 June; if not, they would again be held over to the next edition. Liquid Gas Europe had spotted an error in the text adopted in the new 6.8.3.2.9.1, which relates to safety valves for gas tanks. There was a conflict with the provisions in 6.7.3.8.1, which is referred to in a Note to the new paragraph. The Working Party accepted the error but did not adopt the solution offered by Liquid Gas Europe; instead, it decided to revert to the provisions of the 2021 edition of

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ADR, replacing the reference to 6.7.3.8.1 with a reference to 6.7.3.8.1.1 and deleting the Note. The secretariat had prepared a full list of the amendments adopted by the Working Party at its previous session, which was confirmed subject once more to the timely publication of referenced standards. The secretariat also provided two documents containing corrections to the draft amendments already adopted for entry into force in 2023. [A full list of the changes in ADR 2023 will be presented in a forthcoming issue of HCB before the end of this year.] In addition, the secretariat provided a document containing some amendments adopted by the Joint Meeting that are intended to enter into force in the 2025 edition of ADR. These include the following: 1.Revisions to special provision 650 to extend the relief offered for paint residues and wastes of UN 1263, PG II to water-based paints shipped under UN 3082 and to permit their mixed loading. P650 will be added in column (6) of the Dangerous Goods List against UN 3082. 2.Amendment of 4.3.2.2.3 to give more detail on the permitted level of filling for tanks carrying liquids at a temperature above 50°C if the provisions of 4.3.2.2.1(a) to (d) are to be disapplied. 3.Textual amendments in 6.8.2.1.20(b) 1; “strengthening members” is replaced by “strengthening elements” in the first paragraph; and in the last paragraph “that are used as strengthening elements” is added after “surge plates”. Both changes apply to the left-hand column. The first of these, which was prompted by a plea from industry, has since been reflected in a multilateral agreement under ADR, M346, initiated by Germany. This has, as of late June, been counter-signed by France allowing it to be used in transport within and between those two countries; other parties are likely to sign up too. It will expire in July 2025, once the change is made in ADR. ELECTRIFIED VEHICLES The International Organisation of Motor Vehicle Manufacturers (OICA) organised a presentation on the construction criteria and

HCB MONTHLY | JULY-AUGUST 2022

safety features of a battery electric freight vehicle and had even brought such a vehicle along to allow the Working Group to see it in real life. OICA invited those delegations who would like more information to join the informal working group on electrified vehicles. An update on the work of that group was provided by the Netherlands; its remit is to develop provisions for insertion into ADR to allow the use of battery electric vehicles (BEVs) and hydrogen fuel cell vehicles for the carriage of dangerous goods in EX, AT and FL vehicles. The presentation noted that this work is complex, not least since these vehicles are still under development. The informal working group has determined that the electric drive system on BEVs is as safe as or even safer than drive systems used with internal combustion engines, as the entire system runs at a lower temperature. While there are some concerns over the safety of lithium ion batteries, they have proven to be reliable in other types of vehicle (such as passenger cars and buses) for several years. The working group felt that, as the fire risks are lower than those considered in the current regulations for AT vehicles, it would be appropriate to allow the use of BEVs as AT vehicles as soon as possible, ideally in the 2023 edition of ADR, and it offered some proposals for amendment.

The informal working group was still working on its proposals for FL vehicles and work on EX vehicles would take longer; hydrogen fuel cell vehicles are yet to be addressed and more consideration is needed before the group’s work can be finalised. Germany felt it premature to include provisions to allow BEVs as AT vehicles, saying that there were a number of issues still to be addressed. OICA supported the proposals, while offering a number of observations that would help align the provisions with UN Regulation No 100 (Uniform provisions concerning the approval of vehicles with regard to specific requirements for the electric power train) and with other technical language. Perhaps bearing in mind ITC’s encouragement for WP15 to take note of the logic of the energy transition and the development of renewable energy sources, the Working Party did adopt some amendments in Chapter 9.2, particularly a new 9.2.4.6, to permit the use of BEVs and hybrid vehicles as AT vehicles, subject to UN Regulation No 100, as amended at least by the 03 series of amendments. At present, FL and EX vehicles are specifically excluded. The informal working group further recommended an update to referenced standards for automotive electrical cables,

REGULATIONS 55

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found in 9.2.2.2. It noted that existing references to ISO 6722 parts 1 and 2 and ISO 14572 will be replaced by a new family of standards under ISO 19642 that take account of technological development. It proposed adding references to those standards alongside the existing standards. The Working Party felt this was sensible and made the changes in 9.2.2.2.1 and 9.2.2.2.2. MISCELLANEOUS PROPOSALS The secretariat noted that the UN Subcommittee of Experts on the Transport of Dangerous Goods had made a correction to packing instruction P200 in the 22nd revised edition of the UN Model Regulations and invited the Working Party to make the same correction in the 2023 edition of ADR. The correction relates to table 2, where in the column headed ‘Special packing provisions’

updating. Firstly, the reference to Amendment 39-18 of the IMDG Code is changed to Amendment 40-20, which is already in use. Footnote 6 also reproduces the text of 5.4.2 of the IMDG Code, which was been amended in Amendment 40-20; the changes are largely editorial, though in 5.4.2.2, at the end of the Free DG Label ID poster with every orderother” is deleted. first sentence, “one to the Another small change stems from a proposal by OTIF, which noted that, following the adoption for a new definition for ‘extralarge tank-container’, this should be included in the model report on occurrences during the carriage of dangerous goods in 1.8.5.4. This will now be added as a new number 18 in section 6 of the model report. At the previous session of WP15, Germany put forward a radical proposal to delete the supervision requirements in Chapters 8.4 and 8.5 on the grounds that these provisions are

there is an ‘a’ in the first row but not the second; the second row should also show ‘a’, which it now will do. The secretariat also noted that footnote 6 in 5.4.2 of ADR contains a reference to the same section in the International Maritime Dangerous Goods (IMDG) Code, which needed

already covered in Chapter 1.10. Its paper remarked that it is only the road mode that Tel: +44 provisions (0)870 850 51 has additional on50 supervision, Email: sales@labeline.com whereas considerably larger volumes of dangerous goods can be carried by rail or www.labeline.com inland waterway vessels. Further, the separation of security and supervision

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requirements in ADR can cause practical problems and increases the workload without adding any discernible value in safety terms. Germany’s proposal had drawn some comments before the meeting started and, in light of those comments, it was presented for discussion only. That discussion was inconclusive, with mixed views on the benefits of the changes suggested. A further proposal may or may not be forthcoming. On a similar topic, Norway and Sweden followed up on discussions at the previous two sessions of WP15, where they had contended that the provisions of 1.1.3.6 are inconsistent with the purpose of Chapter 1.10. They now made a formal proposal to make the security provisions applicable to all substances and articles listed as high consequence dangerous goods, in any volume, even when carried in accordance with 1.1.3.6. While some delegations wanted yet more time to consider the implications of the proposed change, others were strongly in favour and it was that group that won the day. The change that has been adopted relates only to Class 1 goods and involves an amendment to the first indent of 1.1.3.6.2, which will now read: - Chapter 1.10 except for high consequence dangerous goods of Class 1 (in accordance with 1.10.3.1) and except for Class 7 excepted packages of UN Nos 2910 and 2911 if the activity level exceeds the A2 value. INTERPRETATION OF ADR Sweden wanted to know if the provisions of Chapter 8.2 allow the theoretical part of ADR training to be conducted remotely by an instructor. There was a difference of opinion on this ostensibly simple point, though several delegations favoured changing the provisions in Chapter 8.2 to define a clear framework for the delivery of such distance learning, in particular in order to monitor the active presence of participants throughout the duration of the courses delivered and to ensure that distance learning courses are of equivalent quality to in-person courses. It seems that this issue falls under the remit of the Joint Meeting’s informal working group on e-learning rather than being just relevant to

HCB MONTHLY | JULY-AUGUST 2022

road transport. No action was taken at this point. Another paper from Sweden sought to prompt discussion of security during the transport of explosive substances and articles. At present, Sweden said, it is possible to carry quite large amounts of ‘theft-attractive’ Class 1 goods in sheeted EX/II vehicles. The explosives industry and Swedish police have expressed the opinion that such goods should always be carried in closed vehicles. Sweden also sought views on the existing requirements in S1(7) for locks and the meaning of ‘devices, equipment or arrangements’ to prevent theft in 1.10.3.3. There was little support for the idea of making the use of closed vehicles mandatory. However, there was some support for clarifying the provisions for locking load compartments, perhaps by reference to a standard. Sweden will look into this and revert with a proposal. As to the last question, some delegates suggested that the provisions have been drafted in an intentionally broad manner to leave operators to make the most appropriate choice depending on the configuration of the vehicle and the goods being transported. The use of an alarm

system is not a requirement under 1.10.3.3 but could be part of national regulation. Norway picked up on the discussion of closed vehicles, noting that, in 1.2.1, the definition says they are a vehicle “having a body capable of being closed”. In an informal document Norway showed a picture of a simple trailer, an approved EX/II vehicle, with a hard top canopy made of fibre-reinforced plastics. Such hard tops are usually installed by a third party rather than the original trailer manufacturer. Norway asked for the experts’ opinion on whether this should be regarded as a ‘closed’ or ‘sheeted’ vehicle. Once more a fairly straightforward question led to a divergence of opinion; WP15 promised to return to it at its next session, while also looking to see whether the different language versions of the definitions needed to be aligned. France sought some clarification about the carriage of pyrotechnic substances. Special provision V2(1) in 7.2.4, applicable to the carriage of pyrotechnic substances or articles, such as those shipped under UN 0191, 0194 and 0196, states that they shall only be loaded on to EX/II or EX/III vehicles. The table in 7.5.5.2 defines the maximum permissible net

REGULATIONS 57

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mass of explosive substances per transport unit EX/II or EX/III. Further, 5.4.1 requires the transport document to indicate the total net mass of explosive contents. However, by definition in 2.2.1.1.1(a), pyrotechnic substances do not have any explosive contents, their effect being generated by a non-detonating self-sustaining exothermic chemical reaction. Those delegations that expressed a view were of the opinion that the quantity of pyrotechnic substances should be taken into account in calculating the net explosive mass and that this would not only apply in 7.5.5.2 but also in 1.1.3.6 and the provisions relating to tunnel restrictions. The Working Party agreed it would be useful to clarify the definition of ‘net explosive mass’ in ADR, which is taken directly from the UN Model Regulations. Therefore, the matter should also be raised with the UN Sub-committee of Experts. Austria reported what it said was a ‘formal problem’ that had been detected during a roadside check, in which the certificate of approval for the vehicle was not in the same

layout as that shown in 9.1.3.5; the noncompliant certificate included additional security features to protect against forgery. Poland mentioned in an informal document that the use of such security features is mandatory on public documents under Free DG Label ID poster with every national regulations andorder suggested that 9.1.3.3 be revised to allow for the use of holograms, UV printing or guilloche patterns as security features. The Working Party did not feel that the use of such security features affected the validity of certificates and there was general support for Poland’s idea of an amendment to clarify the position. WP15 invited Poland and other countries that use security features on their certificates to provide information to the secretariat so it can be published on the UN ECE website, in order to avoid misunderstandings during enforcement and inspection activities. (0)870 850 50 51is TheTel: next,+44 112th session of WP15 Email: sales@labeline.com due to take place in Geneva from 8 to 12 Novemberwww.labeline.com 2022; it has not been decided if this will be in-person only or once again in a hybrid format.

A Guide to Exemptions from the International Carriage of Dangerous Goods by Road

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LETTER TO THE EDITOR ROY BONEHAM HIGHILGHTS A POTENTIAL WEAKNESS IN THE NEW PROVISIONS FOR FRP TANKS I WRITE AS a former industry representative member of the UN Committee of Experts on the Transport of Dangerous Goods Portable Tank Working Group which took place in the mid-1990s. It was responsible for producing what we see today as Chapters 4.2 and 6.7 in the UN Recommendations on the Transport of Dangerous Goods Model Regulations (the so-called Orange Book) and the international and national modal regulations. I write, too, as someone with nearly 54 years’ experience in the transport of dangerous goods in one capacity or another and who saw his first ISO tank container in around 1972. I would also like to recall that for a period I served as the Safety Officer for a container shipping line. At the behest of Russia, proposals were introduced at the UN Subcommittee of Experts on the Transport of Dangerous Goods a few years ago for the removal of the prohibition on using other than metallic materials for the construction of portable tanks (typically in the form of ISO tank containers) intended for the transport of dangerous goods. Discussions about these proposals have been ongoing for a number of years but we are now at a stage where, for example, the International Maritime Organisation (IMO) needs to face the challenge of whether the provisions adopted by the UN Sub-committee of Experts for inclusion in the Model Regulations should be also adopted into the IMDG Code. This would make it possible for portable tanks with shells made of fibre-reinforced plastics (FRP) materials to be used in the

is wholly inadequate as a test representative of the conditions at sea on long haul voyages such as, for example, from Santos, Brazil to San Francisco, USA, and that a 48-hour test or longer would be more appropriate to represent conditions at sea. Would your readers support this point of view? I am aware of at least one international organisation representing seafarers with observer status at the IMO that shares my concerns. It seems to me that nothing should be done to increase the risk of fires spreading on container ships which, sadly as I write, appear to be occurring at the rate of one a month or more, many of which also appear to have some roots in irregularities with the transport of dangerous goods. Moreover, is it not the case that cargo and freight container insurers, when they realise that this minimal test could possibly soon become international law for maritime transport, might start to refuse to insure them? I was involved in the operation of a small fleet of such ISO tank containers in the late 1970s and early 1980s for the transport of nondangerous goods in the sea mode. They worked well though they had to be withdrawn after about ten years because of shell cracking. That was a long time ago now and I am sure the FRP materials available today will afford a longer life in sea transport. Nevertheless this experience of mine should not be overlooked. The conditions they will endure in maritime transport are far different to those they endure in road

maritime mode for the transport of dangerous goods as a new chapter of the Code, thereby overturning the longstanding restriction in the Code that tank shells should only be made of metallic materials. In the text published in the Model Regulations it is recommended that a prototype external fire resistance test of 30 minutes duration be performed. I am not privy to the discussions going on at IMO level but it has long seemed to me that this fire test proposed for

transport, for example. Should there be a limit on the lifetime of these tank containers used in the maritime transport mode?

HCB MONTHLY | JULY-AUGUST 2022

Roy Boneham New Alchemy Training & Consultancy rboneham@hotmail.co.uk www.newalchemy.co.uk

REGULATIONS 59

STOP PRESS MARITIME • IMO MADE SOME LATE CHANGES TO THE CURRENT IMDG CODE, WHICH SHIPPERS NEED TO BE AWARE OF IF THEY ARE NOT TO FALL INTO ACCIDENTAL NON-COMPLIANCE AMENDMENT 40-20 TO the International Maritime Dangerous Goods (IMDG) Code has been available for use since 1 January 2021; it was due to become mandatory at the start of 2022 but the International Maritime Organisation (IMO), aware of the ongoing impact of the Covid-19 pandemic on the maritime supply chain, allowed an extension to that transitional period to 1 June 2022. Just before that date, IMO published a Corrigenda document, running to seven pages in the English version, that includes a significant number of corrections to the adopted texts. Most of these are purely

editorial in nature, although some are more substantial. There are two in particular that revise existing text. Concerning radioactive materials, there is a new paragraph 2.7.2.3.4.3 relating to low dispersible material: A solid material sample representing the entire contents of the package shall be immersed for seven days in water at ambient temperature. The volume of water to be used in the test shall be sufficient to ensure that at the end of the seven-day test period the free volume of unabsorbed and unreacted water remaining shall be at least 10% of the volume of the solid

test sample itself. The water shall have an initial pH of 6 to 8 and a maximum conductivity of 1 mS/m at 20°C. The total activity of the free volume of water shall be measured following the seven-day immersion of the test sample. That addition has necessitated some renumbering of nearby paragraphs. There is another significant change in Chapter 4.1, which brings the IMDG Code into line with other modal regulations. Paragraphs 4.1.2.2.1 and 4.1.2.2.2 are deleted, with the provisions combined into a new 4.1.2.2 concerning the inspection and testing of metal, rigid plastics and composite intermediate bulk containers (IBCs). The change is not material but does bring the provisions more clearly into line with other international and regional texts. CHECK THE DETAILS Aside from those two changes mentioned above and the editorial corrections, there are a number of smaller corrections that dutyholders need to be aware of. For instance, in Packing Instruction P802, special packing provisions PP79, “hydrochloric acid” is replaced by “hydrogen fluoride”. In Packing Instruction IBC08, paragraph (3), “21HZ” is replaced by “21HZ1”. In Packing Instruction LP622, the list of outer packagings is amended. In the Dangerous Goods List in Chapter 3.2, for UN 1056, “SW1” is deleted from column (16a), and “399” is added in column (6) against UN Nos 0030, 0255, 0456, 0511, 0512 and 0513. That new special provision 399 is added in Chapter 3.3, reading: For articles that meet the definition for DETONATORS, ELECTRONIC as described in appendix B and assigned to UN Nos. 0511, 0512 and 0513, the entries for DETONATORS, ELECTRIC (UN Nos. 0030, 0255 and 0456) may continue to be used until 30 June 2025. IMO has also taken the opportunity provided by this Corrigenda document to update some of the contact information for the designated national competent authorities, with new details for France, Germany and Spain. The Corrigenda can be found in full at: wwwcdn.imo.org/localresources/en/ publications/Documents/Supplements/English/ QM200E_180522.pdf.

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transport, handling or transport of dangerous goods, did not have sufficient information to understand the risks of some products and operations, or the means to collect such information, and did not have the tools to assess risk and properly evaluate priorities for the risk-based oversight programme. This, CESD said, presented a public safety risk. Since then, Transport Canada developed a national risk-based system to prioritise its oversight activities but, in 2020, CESD observed that the information available was outdated and incomplete, undermining the effectiveness of the programme.

TRANSPORT CANADA HAS published its proposals for the introduction of a registration system for companies and sites involved in the transport of dangerous goods. The proposals have been in development for several years,

were notified to Transport Canada; only 84 of those took place at a site included in Transport Canada’s oversight system – in other words, 96.6 per cent of the reported incidents occurred at places that were unknown to Transport

WHAT’S THE PLAN? Having held informal consultations with industry, Transport Canada (TC) has now published its proposals in Canada Gazette Part I; they involve the amendment of the Transportation of Dangerous Goods (TDG) Regulations to require persons to register themselves and their ‘TDG Sites’ with a new online registration database administered by TC, and to provide data related to their transport of dangerous goods activities at those sites. The aim of this process is to provide TC with a more comprehensive picture of activities involving dangerous goods taking place across the country, including at those sites of which it is currently unaware. Further, the registration database would support TC’s risk-based analyses and risk scoring, which would help TC to prioritise sites for inspection. TC is proposing a limited and specific registration requirement, in order to address the objective for establishing the ‘where’, ‘what’ and ‘how much’ of dangerous goods in Canada. To start with, TC needed to define what it means by a ‘TDG Site’. A new definition will be inserted to Part 17 of the TDG Regulations to indicate that a Site is a place where dangerous goods are imported, offered

designed to address an issue first identified by an internal audit in 2006 – the lack of information available to Transport Canada on the number, location and identity of sites where dangerous goods are being handled. Indeed, between 2009 and 2011, some 2,500 reportable on-site dangerous goods incidents

Canada and therefore had not been inspected. The issue was put into stark perspective as the result of a 2011 audit by the Office of the Commissioner of the Environment and Sustainable Development (CESD), which said that Transport Canada was unaware of who exactly was involved in the import, offering for

for transport, handled or transported, but does not include a means of transport. In cases where a building or premises are contained within a larger facility, such as a port or airport, the Site would be the building or premises itself and not the larger facility, unless the Site and the facility are the same.

WHO GOES THERE? FINANCIALS • TRANSPORT CANADA IS PLANNING TO SET UP A REGISTRATION SYSTEM SO THAT IT CAN HAVE A BETTER GRASP OF WHO IS DOING WHAT WITH DANGEROUS GOODS IN THE COUNTRY

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REGULATIONS 61

WHAT’S A SITE? For marine transport, the definition of Site includes locations where dangerous goods are being loaded and unloaded but would not include a warehouse or a vessel, even if docked at the port. A common-use terminal would be registered as a Site. For ports where there is no terminal, the port would be registered as the Site. In the context of air transportation, since dangerous goods are loaded onto and unloaded from aircraft at a company’s respective common-use cargo terminal, the location that would be registered would be associated with the cargo terminal. For smaller airports with no distinct cargo terminal, the airport would be registered as a Site. In these cases, any road vehicle (such as aircraft refuellers) or aircraft sitting at the

 TRANSPORT CANADA IS AIMING TO PLUG A KNOWLEDGE GAP IN ITS ABIITY TO EFFECTIVELY INSPECT AND MONITOR THE TRANSPORT AND HANDLING OF DANGEROUS GOODS ACROSS ITS TERRITORY

airport would not be considered as Sites. In addition, warehouses storing dangerous goods to be used by the airport would not have to be registered as Sites as this type of storage would not be considered as ‘in transport’ as per the TDG Regulations. For rail transport, Sites would include any rail terminal that receives dangerous goods to be loaded on a train as well as any Site where dangerous goods are offloaded from a train and transferred to another means of transport. Sites would also include rail yards where rail cars are coupled into a train. Warehouses where dangerous goods are stored (not in transport) and sidetracks do not fall under the scope of Site. There will be a new obligation on consignors, who would have to register locations where dangerous goods are prepared for and/or offered for transport. For the oil and gas industry, Sites would be the terminals, refineries and distribution centres where dangerous goods activities are conducted with the intent of being transported. Extraction premises, such as

wells and well pads, and retail premises, such as gas stations, are exempted from the regulations. The registration requirement for each site includes location and contact details, including the name of a point of contact, the type of activity taking place, the classes and divisions of all dangerous goods involved, and the mode(s) of transport involved. In addition, for higher risk dangerous goods, sites will also have to register the relevant UN number(s), Emergency Response Assistance Plan (ERAP) number, and the quantity and number of consignments involved in the previous year. All information will have to be updated or confirmed once each year. GETTING OUT There are a number of exemptions proposed. Those that handle dangerous goods under the Special Cases listed in Part 1 of the TDG Regulations (other than 1.16 and 1.22) or those dangerous goods exempted under a special provision in Schedule 2 are not in scope, nor are those handling selected lower risk dangerous goods, such as retail stores, mail services and courier companies. Also out of scope are those handling dangerous goods in cross-border operations that do not operate a TDG Site in Canada, including foreign carriers, as well as self-employed truck owner-operators. The proposals were published on 25 June and there is a 70-day consultation period ending on 3 September 2022. After that, TC will review comments made with the aim of publishing its final rule in Canada Gazette Part II in the first half of 2023, once the database itself is completed and fully accessible. After the entry-into-force of the new requirements, existing sites will have one year to complete their registration. In the meantime, TC plans to conduct training on the new requirements to its TDG inspectors and provincial/territorial inspectors before the amendments come into force. Once they are enforcing the new provisions, it is likely a graduated approach will be taken, with non-compliant sites being given time to complete their registration and, after that, subject to fines of up to C$1,000.

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NEWS BULLETIN

REGULATIONS

CANADA REVIEWS RAIL TANKS

Transport Canada has opened a consultation period on the draft revision to CAN/CGSB43.147, the safety standard that sets out the requirements for the design, manufacture, maintenance, qualification, inspection, marking, selection and use of rail tank cars. Among the changes in the new edition – which will replace Transport Canada standard TP 14877, published in 2013 – are a schedule for the phasing out of legacy tank cars in toxic inhalation hazard (TIH) service and the addition of an ‘H’ delimeter for the newer specification of TIH tank cars. The update will also remove the TC114 class, enhance the specification of Class 113 tank cars in cryogenic flammable liquid service, and make other changes, including closer alignment with US regulations. The consultation period closes on 7 August, after which Transport Canada will seek to incorporate the new standard in the Transportation of Dangerous Goods Regulations. CANADA UPDATES CARTRIDGES

The Canadian General Standards Board (CGSB) has published a new edition of its standard CAN/CGSB-43.123, ‘Aerosol Containers and Gas Cartridges for Transport of Dangerous Goods’. The new edition, which will supersede the 2017 version, aligns with the 21st edition of the UN Model Regulations and the current US Hazardous Materials Regulations; it also adds requirements for the new TC-2P2, TC-2P1 and TC-2Q2 specifications for gas cartridges intended for use with LPG and with foodstuffs and soaps. There are also revised requirements for the transport of containers intended for disposal or recycling. The new standard came into force immediately on its publication in April but stakeholders may continue to use the 2017 edition during a six-month transitional period that ends on 31 October 2022.

HCB MONTHLY | JULY-AUGUST 2022

PHMSA CONSULTS ON E-DOCS

The US Pipeline and Hazardous Materials Safety Administration (PHMSA) has opened a consultation on the potential use of electronic communication as an alternative to current paper-based requirements for hazard communication. PHMSA is considering a revision to the Hazardous Materials Regulations (HMR) that would authorise performance-based electronic communication of shipping papers, train consists, dangerous goods manifests, notifications to the pilot in command (NOTOCs) and emergency response information, as well as administrative documentation such as special permits, approvals and registrations. PHMSA notes that HMR currently requires hazard communication to be maintained as physical, printed materials during transport. However, it believes that there are already widely adopted technologies that could replace the existing system, while also offering opportunities for improved emergency response and oversight. In a Request for Information, published on 11 July, PHMSA seeks input to help it determine the most effective mechanisms and potential impediments to the

adoption of electronic hazard communication. PHMSA would like comments by 9 September. USPS TIGHTENS BATTERY REQUIREMENTS

The US Postal Service (USPS) has revised its regulations for mailing hazardous materials, Publication 52. The changes now require shippers to separate hazardous materials that require marks or labels from other mail – this provision applies to all hazardous materials. There are other changes related specifically to devices containing or packed with lithium batteries. The mailing of pre-owned, damaged or defective electronic devices containing (or packed with) lithium batteries is restricted to surface transportation only. Specific markings are required on mail containing lithium batteries in or with pre-owned, damaged or defective electronic devices: ‘Restricted Electronic Device’ and ‘Surface Transportation Only’. IATA WINDS DOWN THE WINDOWS

The International Air Transport Association (IATA) is to discontinue its e-Reader and the associated single-licence Windows downloads as from the end of 2023. This has been a

REGULATIONS 63

popular platform for several years, says leading distributor Labeline, but the move to a platform that allows users to access IATA publications via any device will provide much more flexibility. Labeline says that, for now at least, existing Windows downloads will still be accessible but once its stock of licences has been exhausted, new subscribers will have to create a ‘Bookshelf ’ account to access IATA publications. It also says that the existing e-Reader system will be available for the 63rd edition of the Dangerous Goods Regulations, which covers 2022, and the ninth edition of IATA’s Lithium Battery Shipping Regulations. BCGA CLARIFIES UK POSITION

The British Compressed Gases Association (BCGA) has published a new Guidance Document (GN48) on type approval and conformity assessment of transportable pressure equipment in the UK. The document aims

to clarify the post-Brexit legislation in the UK for such equipment. The document can be freely downloaded from the BCGA website at https://bcga.co.uk/ publications/gn48-type-approval-andconformity-assessment-of-transportablepressure-equipment-in-the-uk-2022/. US LOOKS AT OFFSHORE SAFETY

The US Coast Guard (USCG) has updated a policy letter on guidelines for transporting hazardous substances on offshore support vessels (OSVs) to reflect significant changes in the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code) that came into force on 1 January 2021. The IBC Code is applied to OSVs through the International Maritime Organisation’s (IMO) Resolution A.673(16), which takes into consideration the unique design and service characteristics of the vessels. It also limits the

quantity of hazardous and noxious liquid substances that can be carried on OSVs. The changes updated carriage requirements for a significant number of products and therefore have an impact on ship type, tank type and toxicity classification, as some products previously classified as non-toxic have been reclassified as toxic. Due to the changes, any ship carrying hazardous chemicals or noxious liquid substances will need a new Certificates of Fitness (COF) and Noxious Liquid Substances (NLS) certificate. The USCG Office of Design and Engineering Standards Hazardous Materials Division (CG-ENG5) released an updated policy letter on 16 May that includes the revised carriage requirements for cargoes of hazardous and noxious liquid substances for OSVs. The policy letter is intended to guide voluntary compliance until the new international standards are fully incorporated into the US Code of Federal Regulations (CFR).

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64 BACK PAGE

NOT OTHERWISE SPECIFIED PLAY NICELY Accidents happen to even the most careful of us. After all, you may consider yourself to be a safe driver – and perhaps you are – but what about that guy heading your way on the wrong side of the road with a crazed look in his eyes? But we do what we can and, if we put ourselves in harm’s way, we probably only have ourselves to blame if our death certificate reads ‘misadventure’. And stories like those are also meat and drink to us here on the back page. Here’s a ‘for instance’. In early July, hundreds of people turned out for the Battle Creek Field of Flight Air Show and Balloon Festival (there’s enough words in there to warn most of us off) in Battle Creek, Michigan. The event is held at a small airport and one of its highlights (?) is a truck racing two aircraft on the runway. This year’s race didn’t go so well, especially not for the driver of the truck, known as the ‘Shockwave Jet Truck’ (what could possibly go wrong?). The truck, which belongs to the event’s organisers, is (or, more accurately, was) equipped with three flame-shooting jet engines and capable of reaching speeds of more than 350 mph (560 km/hr), and was a favourite at air shows and drag racing events across the country. The son of the truck’s owner, who was driving it at the time, was not so lucky this time round: as he chased the two aircraft down the runway, there were more than flames from the engines coming out of the rear of the truck. It then exploded in a fireball, killing him on the spot. Rather begrudgingly, it seems, the rest of the afternoon air show was cancelled out of respect, though that respect didn’t last into

HCB MONTHLY | JULY-AUGUST 2022

the evening, when activities were back in full swing. UNSOUND OF SOLE But it’s not necessary to get up close and personal with a fire-breathing jet engine to come to harm, even happy-clappy events can cause problems. Back in June, 25 people had to be treated for burns in northern Switzerland as they walked across hot coals as part of a company team-building exercise (three words that should never be seen together in the same sentence). Such ‘fire-walking’ is fairly common in motivational courses and events like these, having been culturally appropriated from places where it is a rite of passage. Usually it ends well but on this occasion 13 of those who were burned had injuries severe enough to warrant a hospital visit. Police were investigating if the coals were set up wrong or whether the group was walking across the coals in the wrong way. We would say the latter: try wearing shoes next time. SMOKED OUT Drugs and Colombia are almost synonymous, but our final story this month concerns not the local ‘marching powder’ but the rather more innocuous marijuana. The local cops in Bello, a suburb of Medellin, decided to come down hard on dealers and pot smokers and, after a couple of weeks, had confiscated around 1.5 tonnes of the stuff. What to do with it all? Why not take it out into the fields and set fire to it? Nice idea, except the wind changed, blowing a sweet-smelling cloud across the town. Some places had to evacuate – perhaps pretty slowly.

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WE LEAD. OTHERS FOLLOW. It’s a simple theory, but one that has helped us to succeed for 55 years - hard work, dedication and innovation - coupling those core values with our industry-leading safety, precision and quality gives us an advantage over competitors. We have always believed that the best way to lead is from the front, by setting an example - by being leaders, not followers. We stake our reputation on the verifiable technical integrity of our range of products. That’s why we built our own 3rd party approved Test Laboratory – we conduct cycle & endurance tests, air & liquid flow tests and flame & explosion tests. Successful and profitable tank operation relies upon the technical integrity of each and every component. We ensure precision throughout so that you can rely on the performance of our valves and your tanks. FORT VALE. FOLLOW THE LEADER. Visit us at www.fortvale.com