Steely resolve

Effective Stowage And Loading Reduce Cargo Damage

expected to ramp up production in the coming years.

Meeting growing demand will put even greater pressure on an already squeezed global supply chain that has experienced massive upsets in recent years due to the Covid-19 pandemic and geopolitical issues. And on top of that, climate change goals are also impacting steel demand and output.

Nevertheless, charterers are likely to take advantage of low freight rates, with the Baltic Dry Index reaching its lowest in February 2023 since mid-June 2020. But those rates will not last for long as they traditionally rise following Lunar New Year before tailing off towards year-end. As charterers looks to move their steel cargoes quickly, risks relating to stowing, loading and unloading steel cargoes also increase.

A World Of Difference

Handling steel cargoes is different from handling other dry bulk. They are heavier, more rigid and more susceptible to damage. Stowing steel cargoes therefore requires more careful planning, more specialized equipment and greater attention to detail.

According to the GAC Group, a leading shipping and logistics services provider with more than seven decades of experience handling dry cargo, the average loading and discharging rate for steel cargoes varies between 4,000–8,500 metric tonnes/day compared with 15,000–20,000 metric tonnes/day for traditional bulk cargo. This discrepancy is not only due to the precarious nature of handling steel but also the various forms in which it can be shipped.

Most processed steel is transported as either cold-rolled or hot-rolled coils. But steel products traditionally used in construction projects such as profiles, girders, channels and sheet piling, are also often found on ocean-bound vessels. Raw steel products such as ingots, slabs, billets and rebars are another common sight in vessel holds.

There is no one-size-fits-all approach to steel loading. Different cargoes require different handling techniques and thus, specialized knowledge and equipment.

For example, steel cannot simply be loaded in a classic block stowage. Instead, the ship’s hold must be adequately prepared using dunnage to fix the cargo in place before being secured using wires, chains or steel bands.

Pyramid loading of steel coils is discouraged due to the difficulty of securing the pyramids and the increased risk of the cargo being crushed owing to weight disparities. Instead, coils should be loaded vertically in tight block stowage patterns on top of strong and secured pallets. To reduce the risk of damage during transport, wooden wedges can also be used to fill gaps between dunnage and steel and within the stowage, to reduce movement.

Weather damage is another critical issue. Steel is susceptible to weather conditions so hatches must be watertight prior to loading and have adequate ventilation in place to minimize the chance of cargo and ship sweating and rusting.

Vigilance is at the top of the agenda for loading and unloading. Dedicated port facilities for steel cargo transport have specialist stowage and securing equipment, as well as skilled stevedores capable of monitoring cargo conditions and providing timely guidance throughout the operation.

If not available, it is crucial that care and precision is taken by all parties, including the terminal and the ship’s master, to ensure the cargo is handled safely and securely.

Quick Turnarounds

With such a wide range of product types and issues that can impact the quality of steel cargoes, their safe loading and unloading from vessels is a complex task requiring experience, expertise and rapid turnaround.

“Quick turnaround times for vessels is vital for port operations due to the high demand for berths,” said Frank Xia, GAC China’s Shipping Director. “Any delays, no matter how minor, can affect waiting vessels and even lead to demurrage charges for charterers.”

“Steel is a complicated cargo and the implications of damage are very high and unpredictable. The various stakeholders involved - from vessel crew and stevedores to gear suppliers and transporters - must have the expertise to ensure the cargo is handled with utmost care,” added Sankar Narayanan, Senior Manager – Shipping at GAC India.

“As a ship agent, we support stakeholders by continuously monitoring cargo operations between the port and vessel to optimize productivity and turnaround times, readjusting our resources as needed.”

Preparation Is Key

While proper and effective stowage methods for steel cargoes are critical, proper preparation and operations planning are equally key.

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Prior to a vessel’s arrival, a loading master will prepare a preliminary stowage plan that includes lashing and securing methods for the vessel owner and charterer’s review. That plan will be the basis on which the decision about the best cargo stowage methods is made, taking into account factors such as the vessel’s stability and port rotations; cargo quantity, type, weight, size and stackability; and how watertight the hold is.

“Planning for effective stowage, no matter the cargo, is a meticulous process. In general, we plan to load the cargo in the bottom hold first, then on the upper deck. We also prioritize cargo that will be discharged later, as well as goods that arrive in large quantities or are more vulnerable to the impact of pressure resistance,” said Xia.

Local steel stowage requirements may be adjusted from time to time to improve operational safety. This was the case in Singapore in May 2022, when new steel stowage requirements were enforced to enhance the safety of port personnel while keeping standards of port services high.

It is therefore critical, from the planning stage, to work with a dependable ship agent with comprehensive understanding of local and international requirements related to the cargo and the vessel it is being loaded/unloaded.

“Our well-planned loading and discharging operational expertise enables us to adapt to the changing demands and requirements of the dry cargo industry,” said Narayanan. “Further, our market research tools, including commodity-based line-ups, delay analyses, tonnage updates and industry trends, help customers stay abreast and intelligently plan for operations.”

GAC’s operations planning efficiency was boosted by the launch in 2021 of its Pegasus portal to provide customers with real-time information about port infrastructure, services, mishaps, accidents, and delays. With access to data on 220,000 vessels and ports around the world, customers can predict port congestion, pick the best routes and make informed voyage decisions based on efficiency, time and financial considerations even before booking shipping services.

To further aid efficient operations planning, customers can also tap on GAC’s Hot Port News bulletin which monitors and provides daily updates on port conditions worldwide.

“Dedicated facilities at some of the world’s leading ports means that bigger shipments tend to see minimal delays. We are able to work with regional terminals, officials, stevedores and other stakeholders to ensure every aspect of the cargo is taken into account during the loading and unloading process,” said Lars Hardeland, GAC’s Group Operations Director –Shipping.

With port congestion and berth waiting times set to ease after two years of disruptions around the world, the pressure may be off to turnaround vessels as quickly as once anticipated.

However, a new revolution is taking place globally as operational effectiveness and stowing capacity catch up to rapidly rising demand of steel.

Concerns surrounding issues related to stowage and loading of steel cargoes remain. Despite this, expertise and trusted partnerships during loading and unloading operations can help mitigate the risk of potential cargo losses. At least, for now, terminals have the space, resources and support they need to carry out these operations effectively.