HCB Magazine April 2023

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LOADS OF MONEY TRADE KEEPS LOGISTICS OPERATORS IN GOOD BUSINESS GAS TANKERS WIN IN ENERGY TRANSITION WHAT DISTRIBUTORS WANT INVESTING IN PACKAGING

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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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MAKE SMART CHOICES WHEN CARRYING LIQUIDS In public relations, you live with the reality that not every disaster can be made to look like a misunderstood triumph.

Christopher Buckley

International Tank Container Organisation (ITCO) Reduce, Re-use, Recycle with an ISO Tank

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UP FRONT 01

EDITOR’S LETTER

When it first became apparent that the path to decarbonisation would involve a complete transition in the use of energy, there was understandable alarm throughout the hydrocarbon supply chain. Many players in that chain, not least storage terminals but also the tanker shipping business and the road tanker sector, rely on traditional hydrocarbon fuels for a large slice of their income – without that, how are they going to survive?

What is now becoming clear is that people (and businesses, institutions, transport operators and the rest) will still need energy – it’s just that this energy will be in a different form. Full decarbonisation, it would seem, is going to rely fundamentally on renewable electricity, sourced from wind, solar or hydro generation (and perhaps nuclear too, though there is still reluctance to go down that route).

Where is that renewable electricity likely to be generated?

For solar, the most reliable sources are likely to be in the Middle East and North Africa, Australia, South America and southern Europe. The next question is: how do we get that carbon-free electricity to users in northern Europe, North America and other major regions of population and industry?

It is not really feasible to imaging shipping massive storage batteries around the world by sea so other solutions are being found.

a process in which the only by-product is oxygen. Hydrogen can be moved though not easily at the scale that will be needed, so there will have to be another step – either by combining that hydrogen with nitrogen to make ammonia, or by using a carrier: another chemical that can be combined with the hydrogen, moved to the destination and then dehydrogenated. In either case, the resulting product can be moved fairly easily in bulk by sea.

Spookily, the potential areas of production of and demand for these new fuels based on renewable energies are, respectively, very similar to the existing areas of production and demand; as such, the supply chains involved will occupy a largely unchanged pattern and differ only in the products being moved. No crude oil, fuel oil and gasoline any longer, but hydrogen, ammonia, liquid organic hydrogen carriers (LOHC) and, perhaps, green methanol. Usefully, that means the storage terminals needed to handle the export and import of energy will likely be mostly in the same places as they are now, though some re-engineering will undoubtedly be needed.

Those likely to benefit most from this shift are in fact operators of LPG carriers (especially those designed to work in the ammonia trades) and chemical tankers. There is undoubtedly going to have to be some work to be done, especially in ensuring the safety of carrying ammonia in VLGCs and the regulation of

What it comes down to is how to most efficiently and safely ‘move molecules’, as the saying has it, though ‘moving electrons’ is probably more accurate. What’s the best way to convert renewable electricity into something that can be moved easily?

There are several options, which mostly start with using the electricity to produce hydrogen through the hydrolysis of water,

LOHC transport in chemical tankers, but some of that work is already in hand.

Those sectors of the supply chain performed very well last year and, given the prospects for the energy transition, look well placed to benefit more in the years ahead.

Peter Mackay

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UP FRONT 02

TSA

CONTENTS

Tank Storage Associa on

TANK STORAGE VOLUME 42

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www.tankstorage.org.uk

NUMBER 10

UP FRONT Letter from the Editor 30 Years Ago Learning by Training How was it for you?

Labelmaster survey results

40TH ANNIVERSARY SPECIAL Golden years NACD hits 50 next year Fellow celebrants ILTA gets to 40 too Prime mover Seaco and the tank container business Change is a challenge Exis and its roots in HCB Who calls the tune?

TT Club and the role of insurers

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Right on time Gebrüder Weiss offers ETA TANKS & LOGISTICS Down the hatch ITCO advises on tank entry Over the hills Hupac ups traffic despite problems News bulletin – tanks and logistics

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CONFERENCE & EXHIBITION 2023 08 11

STORAGE TERMINALS Dedicated to fuel Inter improves Gothenburg terminal Building resilience Oikos responds to diesel changes News bulletin – storage terminals

The UK’s leading event for the bulk liquid storage sector 21.09.2023

DIGITISATION All over the world IMT’s solar-powered solution On a mission Chemical Express rides the digital wave Get connected Implico links truck to terminal Keep on tracking Savvy extends connectivity Caps get smart Packwise ready to roll Get with the program ICHCA wants port harmonisation

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Editor–in–Chief Peter Mackay, dgsa Email: peter.mackay@hcblive.com Tel: +44 (0) 7769 685 085

SUSTAINABILITY Pulling together Antwerp cluster targets CO² reductions Deep in data Abbey finds the upside of lockdown Better get ready ABS looks at the future for fuels Flex those specs Stena Bulk reduces emissions again Green river Batteries for barges CHEMICAL DISTRIBUTION Rebooting Responsible Care Fecc offers tools for implementation

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Empty quarter CBA survey reveals the worst News bulletin – chemical distribution

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COURSES & CONFERENCES Eyes in the skies DGOT offers online alternative Conference diary

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SAFETY Incident Log Master plan Labelmaster gets the data straighter News bulletin – safety

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REGULATIONS Testing, testing GHS experts stay in line

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BACK PAGE Not otherwise specified

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Campaigns Director Craig Vye Email: craig.vye@hcblive.com Tel: +44 (0) 208 371 4014

NEXT MONTH North America special issue -S torage terminals -L and transport - I nland waterways - Regulations

Managing Editor Stephen Mitchell Email: stephen.mitchell@hcblive.com Tel: +44 (0) 208 371 4045 Designer Jochen Viegener

Commercial Director Ben Newall Email: ben.newall@hcblive.com Tel: +44 (0) 208 371 4036

Production Manager Binita Wilton Email: binita.wilton@hcblive.com Tel: +44 (0) 208 371 4041

21 September 2023

Cargo Media Ltd Marlborough House 298 Regents Park Road London N3 2SZ

ISSN 2059-5735 www.hcblive.com

HCB Monthly is published by Cargo Media 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.

Coventry Building Society Arena, Coventry, UK Discover the event: www.tankstorage.org.uk/conference-exhibition WWW.HCBLIVE.COM

UP FRONT 03

CONTENTS VOLUME 44

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NUMBER 04

UP FRONT Letter from the editor

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30 Years Ago

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Learning by Training

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TANKER SHIPPING Silver linings Gas ships enjoy trade boost

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Incident Log

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Use what you’ve got

CHEMICAL DISTRIBUTION

Keep the seas clean

What it all means

ISU members stay hard at work 28

REGULATIONS 31

Get ready to win Brenntag posts record results

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News bulletin – chemical distribution

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News bulletin – tanker shipping

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Blue for you Mauser adds to production capacity

News bulletin – regulations

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Small expectations

Clad all over

Greif sees demand decline

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News bulletin – industrial packaging

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COURSES & CONFERENCES

Prepared for the worst Follow the gas

Publishing Manager Sarah Thompson Email: sarah.thompson@chemicalwatch.com Tel: +44 (0) 20 3603 2103

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TANKS & LOGISTICS

Advertising sales Sarah Smith Email: sarah.smith@chemicalwatch.com Tel: +44 (0) 203 603 2113

PHMSA responds to petitions

Small but sensitive Air Sea clarifies LQ packaging

Managing Editor Peter Mackay, dgsa Email: peter.mackay@chemicalwatch.com Tel: +44 (0) 7769 685 085

Wrap it up

Not otherwise specified

INDUSTRIAL PACKAGING

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Globalstar, Ovinto team up on tanks

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Handovers and takeovers

Preem keen on low-carbon shipping

Survey shows industry is ready

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BACK PAGE

Sirius about sustainability

New tank cladding from Lamilux

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Careful with that outlet CSB raises alarm on pressure relief

Done deal

Get a wiggle on EPS tries carbon capture for size

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Maritime groups share risk information

IMCD puts succession in place

The long haul Odfjell surfs a rising market

News bulletin – tanks and logistics

Investment group buys Univar 10

Pink and proud HGK’s latest barges for Covestro

Suttons navigates global conflicts

The world according to Azelis 06

Everything everywhere GEFO’s latest low-water barge for BASF

SAFETY

Start making sense

Conference Diary 22

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

NEXT MONTH Tank container fleet review Storage terminal expansions

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Middle East logistics Inland waterway regulation

CW Research Ltd Talbot House Market Street Shrewsbury SY1 1LG

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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. ©2023 CW Research Ltd. All rights reserved

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30 YEARS AGO A LOOK BACK AT APRIL 1993

THIRTY YEARS AGO, something big was about to happen to the world of dangerous goods transport regulations. Increasingly frustrated by modal and international disharmony, the regulators were getting to grips with the matter and planning to sort things out.

At the time, the ICAO Technical Instructions were “a beacon of light in the multimodal morass,” as editor Mike Corkhill described it. By contrast, RID and ADR – whose origins predate that of the UN Model Regulations – were still using ‘Item numbers’ to identify substances, as well as a rather complicated system of ‘marginals’. Keeping the IMDG Code up to date was proving difficult and its unwieldy format – four loose-leaf volumes of regulations plus another supplement – although designed to avoid the need for a full biennial reprint, was sometimes two full updates behind the other rulebooks. All this made it very difficult for shippers and carriers to comply with all the relevant rules at the same time.

The UK was planning to propose to IMO that the IMDG Code should be reformatted in line with the UN Model Regulations and ICAO Technical Instructions, and published in two bound volumes; meanwhile, a working group had recently convened in Paris to consider a comprehensive restructuring of ADR to bring that similarly into line – and adopt UN numbers, which would make

Another interesting move in the world of ADR came with a report from Cefic on progress being made in the preparation of a set of instructions for use by the emergency services in the event of an accident, which would replace the instructions in writing in marginal 10 385. Cefic was urged to press on with the work so that its set of instructions – which became known as ‘Tremcards’ – could be available from 1995. These did prove successful but managing a library of Tremcards for different hazards was cumbersome and, around 20 years later, ADR was revised again with one single set of instructions in writing covering all hazards.

Another interesting development in 1993, again pointing towards the way things are now, was the increasing use of satellite communication to improve the safety and efficiency of the transport of dangerous goods. Much like today, with increasing congestion and – at the time – growing opposition to more road building in Europe, a focus on improving efficiency had developed. We reported then on the European Community’s ‘Drive’ R&D programme, looking into the use of new satellite communications and computer-based technology.

That same process is still in play, though these days we tend to talk about digitalisation and low earth orbit connectivity. Back in 1993, several trials were being conducted, involving projects such as Citra

life a lot easier. It became evident that such a restructuring would require a revamp of the procedure for revising the technical annexes to ADR and it would be necessary to convene a conference of the contracting parties – which led later in the year to the infamous ‘1993 Protocol’ which, sadly, remains to be ratified by all contracting parties.

(which was an early GPS application), Combicom (focusing on combined transport), Frame, IFMS, Metafora and Portico, the latter based on Inmarsat-C. Meanwhile, Eurovos and Hoyer were already implementing the Euteltracs system. While some level of European coordination was seen as important, it was only once the authorities got out of the way that industry really took to the concept.

HCB MONTHLY | APRIL 2023

UP FRONT 05

LEARNING BY TRAINING

by Arend van Campen

FAKE NEWS, FALSE INFORMATION

THE AMERICANS BLEW up the Nord Stream Pipeline in stealth cooperation with Norway, writes Seymour Hersch in an article on Substack. (In case you missed it, you can read the article here: https:// seymourhersh.substack.com/p/how-america-took-out-the-nordstream.) What struck me was that not one mainstream media outlet mentioned or wrote about it. Denials were uttered by the usual TV reporters and politicians.

Those who follow my columns know that I always write about the importance of information. Another example: those who manipulated the information at Twitter, under orders of FBI, their political friends that supported the Democrats and their candidate Joe Biden, are now facing prison. What they did was undermining free press, free speech and thus influencing masses to vote based on false information, propaganda and lies.

Imagine if our industry would lie? What would happen to our HSE standards and compliance obligation? Can our industry escape lying?

Of course not, so what we are now observing is that those who lie will go even deeper into their lies. To save face, they will never admit they were lying, so the disorder accelerates dramatically.

Remember the equations I designed based on this law of physics: Information Deficit = Entropy (disorder). It is therefore crucial for our survival to realise that we are responsible as part of nature for what we

cost of others: people, the environment, society, ecological balance, etc. The protection of the environment, social cohesion, and human and non-human life are secondary objectives. A goal can be achieved only for some if others can’t.

B. Positive Interdependence: Sustainable An economic or industrial goal, personal ambition, production process or political ideology can be achieved for everyone (all stakeholders). Protection of the environment, social cohesion and human and non-human life are principal, central and shared objectives.

C. Path Dependency The tendency of a past or traditional practice or preference to continue even if better alternatives are available. Understanding that dynamic adaptability is the very basis for sustainability and continuity, path dependency directly conflicts with that.

These three descriptions can be applied to the war in Ukraine. Russia stopped the massacres inflicted by Ukrainian forces in the Donbass.

But this news, these facts, remain under-reported by the mainstream media because the cause of the conflict, the goal of the conflict is not to be known by the general public. This makes the mainstream media more dangerous and even more deadly than an army.

Because of wilful false and fake news, many people die and destruction of cities is enabled. Journalists who are engaging in

do and not do. There are two types of mistakes: an error of commission and an error of omission. The former can be corrected, but the latter can’t be because one didn’t do what should have been done. Social Interdependence Theory comes to mind: A. Negative Interdependence: Unsustainable An economic or industrial goal, a personal ambition, production process or political ideology can only be achieved for some, but at the

deliberate propaganda should be in jail, just like those at Twitter.

Journalists, presenters or late night show hosts who ignore facts must be held accountable wherever they come from.

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.

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SILVER LININGS

to a quarterly high of 5.0m tonnes in the fourth quarter.

ACCORDING TO SHIPPING consultant Drewry, global seaborne trade in LPG increased by 3.5 per cent last year to 116.4m tonnes, with a 4.0 per cent increase in tonne-mile demand for LPG transport capacity. There was also healthy growth in tonne-mile demand for ammonia shipping, due to a shift in supply chains as a result of the Russia-Ukraine conflict.

The shift in LPG trade patterns is a slower process but the growth of US exports continues unabated, rising another 3.4 per cent over 2021 to reach a record high of 53m

US propane exports in the core Asian markets of China, India, Japan and South Korea.

Demand is still rising in those countries, led

by China’s petrochemical industry and new propane dehydrogenation (PDH) plants, but the pace of growth slowed last year as a result of the return of Covid-related restrictions and the consequent slump in end-user demand.

Overall, according to BW LPG, the major name in the very large gas carrier (VLGC) segment, the increase in LPG exports from the Middle East last year, led by new volumes from Iran and Saudi Arabia, mostly covered

PRESSURE POINTS By contrast, seaborne trade in the main petrochemical gases was tempered by weakening industrial demand and uncertain economic conditions, with olefin trade dropping 0.6 per cent year-on-year to 16.1m tonnes. This mainly affected the smaller end of the LPG carrier market.

While olefin trade was weaker, priceadvantaged exports from the US rebounded in the fourth quarter of 2022, reports BW Epic Kosan (BWEK), the main player in the fully pressurised and small semi-refrigerated segments. Of that incremental volume, more than two-third was headed for Asia, something of a turnaround compared to the first half of the year. Total ethylene exports from the US reached 1.2m tonnes in 2022, a 64 per cent increase compared to 2021 and mainly reflecting the new capacity at the

tonnes, not far short of half of all LPG on the water. Recovering refining activity in the Middle East led to a 15.3 per cent increase in LPG exports from that region, reaching 43.6m tonnes. Analysts note that, while the Middle East is the main source of LPG for the Asia-Pacific region, it faces competition from

increased demand in the Far East. That growth was concentrated on China, where imports rose by 6 per cent to 24.6m tonnes, and Japan, which saw imports rise from 10.1m tonnes in 2021 to 10.9m tonnes. By contrast, Indian LPG imports were flat at 17.7m tonnes, though rising through the year

Enterprise/Navigator joint-venture export terminal at Morgan’s Point, Texas. This increase also benefitted the Handysize sector, where Navigator Gas is the dominant player.

There is also evidence of cargoes shifting into larger vessels in certain trades, such as LPG imports into Sri Lanka and LPG exports from

GAS TANKERS • PROPANE AND AMMONIA ARE BOTH IN GREAT DEMAND IN THE NEW ENERGY ECONOMY, WHICH WORKED TO THE BENEFIT OF GAS SHIP OWNERS LAST YEAR

HCB MONTHLY | APRIL 2023

TANKER SHIPPING 07

Iraq, where volumes last year were up by 15 per cent.

VLGC DEMAND According to BW LPG, around 85 per cent of US exports last year – 45m tonnes – were carried on VLGCs, which marked only a small increase (3.4 per cent) over the 2021 figure, suggesting there was more work for smaller vessels. The company does, though, expect a rebound this year, with a forecast VLGC export volume of 54m tonnes, which would be 55 per cent higher than the volume just five years previously.

VLGC exports from the Middle East jumped last year by 17.6 per cent to 37m tonnes, the operator calculates, on the back of rising volumes from Iran and Saudi Arabia. BW LPG expects this to be flat in 2023.

Product prices are a key driver for international trade in LPG; Avance Gas notes

 OPERATORS HAVE BENEFITTED FROM CHANGING TRADE PATTERNS OVER THE PAST YEAR

that fourth quarter LPG production in the US was 5 per cent up year-on-year while demand was 7 per cent lower and that, despite an increase in exports, US inventories increased by 18 per cent between the end of 2021 and the end of 2022. This situation is keeping domestic propane prices low and opening significant arbitrage to international markets, allowing a very attractive freight margin.

Consequently, spot rates for VLGCs more than doubled between the end of September 2022 and the start of December, reaching some $130,000/day, though ending the year just below $100,000/day.

Another factor in the strength of the VLGC market, particularly on US-Asia trades, has been the persistent congestion in the Panama Canal, which has added to waiting times and effectively reduced the available capacity of VLGC tonnage. Data from Kpler indicates that, in the fourth quarter 2022, an average of 26 VLGCs were waiting for more than three days to enter the Canal, with waiting times for the new, larger locks averaging more than 20 days in both directions during November. As a consequence, it has been noticeable that a

number of newbuilding orders placed recently have involved designs capable of transiting the Canal through the old locks.

THE MIDDLE GROUND Navigator Gas reports that vessel utilisation through 2022 was in line with expectations, averaging 89 per cent and ending the year around 94 per cent, boosted by long-haul ethylene cargoes from the US to Asia as arbitrage opened up. Throughput at the joint venture ethylene export terminal reached nameplate capacity, prompting the joint venture partners to consider further expansion.

The Handysize market was also affected by the closure of the port of Yuzhnyy in Ukraine, which is normally the source of some 15 per cent of global seaborne ammonia trade. As higher natural gas prices discouraged the increase in ammonia production in Europe, imports were sourced from further afield, and Navigator Gas responded by doubling the number of its ships trading in ammonia to ten vessels by the end of 2022.

Exmar also notes a similar trend, with its midsize vessels increasingly deployed moving

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ammonia from the Middle East and Far East to Europe. It has responded by placing orders for four midsize LPG/ammonia carriers for 2024/25 delivery, two in a joint venture with Seapeak, and all featuring dual-fuel propulsion; the two ordered for its own account have the option of running on ammonia.

According to Exmar, average timecharter equivalent earnings per day in 2022 were higher across the board than in 2021, with VLGC rates up 13.9 per cent at $32,389, midsize rates up 3.7 per cent at $23,910, small fully pressurised rates up 14.8 per cent at $6,999 and larger fully pressurised rates up 8.6 per cent at $8,550.

THE SUPPLY SIDE The increase in VLGC earnings in recent years has prompted a lot of interest in newbuilding, resulting in an orderbook at the start of 2023

 THERE IS PLENTY OF WORK AVAILABLE FOR GAS CARRIERS IN ALL SIZE SEGMENTS

HCB MONTHLY | APRIL 2023

of 69 vessels, equivalent to around 20 per cent of the current fleet. Most of those – at least 44 – are due for delivery this year, pointing to a fleet growth of around 14 per cent; this compares to a forecast by Clarkson Research of trade growth of just 3.6 per cent. The US Energy Information Administration (EIA), however, predicts a 16 per cent increase in US LPG exports.

Avance Gas notes that the pent-up demand for VLGC scrapping continues to be a key factor to watch, with 15 per cent of the existing fleet being older than 20 years.

However, it says, these older ships are likely to remain in service either until market fundamentals deteriorate or sanctions related to Iranian exports are lifted. In addition, new environmental regulations imposed by the International Maritime Organisation (IMO) from the start of this year, focusing primarily on energy efficiency, could cut effective VLGC capacity by between 1.5 and 2.0 per cent through the wider use of slow steaming and the need to take vessels out of service for retrofits. On the other hand, congestion at the Panama Canal appears to be easing

somewhat, although Avance Gas says that uncertainty over waiting times makes it difficult to reliably schedule shipments and this, along with higher canal fees, is incentivising routing ships either around the Cape of Good Hope or eastbound through Suez.

Further ahead, Avance Gas says, another 26 VLGC newbuildings are scheduled for delivery in 2024 and 2025. There is very limited space to add more orders for 2024 delivery and higher newbuilding prices are also putting a cap on demand for contracting in general.

Navigator Gas says there are only two Handysize newbuildings on order, which should be beneficial to the market, and it sees little potential for any new orders to be delivered before 2026.

Excluding Chinese-flagged ships, BWEK says there are 352 pressure vessels currently active, including three newbuildings delivered during the fourth quarter of 2022; the orderbook stands at 17 ships, of which 12 are due for delivery this year. This points to an increase in fleet capacity of 5.5 per cent out to the end of 2025, while there are currently 17

TANKER SHIPPING

ships, representing 3.2 per cent of capacity, that are 30 years old or more and are prime candidates for demolition.

RESULTS ROUND-UP BW LPG achieved timecharter equivalent income of $567.7m for 2022, a 22 per cent increase on the 2021 figure; EBITDA rose 31 per cent to $407.7m and after-tax profit was 28 per cent higher at $238.6m. For 2023, the company remains optimistic amid high volatility. Key underlying drivers include strong US and steady Middle East export growth, the startup of more PDH plants in China post-Covid, and continued shipping inefficiencies from heavy dry-dock schedules and Panama Canal congestion. BW LPG also notes that the market is currently highly sensitive to any sudden demand spikes, which can quickly boost rates.

Avance Gas saw operating revenue increase by 20.8 per cent in 2022 to $254.5m; operating profit was up 43.6 per cent at $135.6m and net profit increased from $32.1m in 2021 to $89.0m. It says 2022 was the strongest market

since 2015, although 2023 started weak due to seasonal factors.

This year will see a large number of VLGCs delivered, as noted above, but Avance Gas says it is “cautiously optimistic” on the freight outlook, as it believes the potential oversupply of vessels will be only temporary.

Navigator Gas achieved total operating revenues of $473.8m in 2022, a 16.6 per cent increase over 2021, with operating income coming in at $60.7m compared to a loss of $3.0m in 2021 as a result of impairment charges related to a revaluation of its fleet.

Navigator’s 2022 net profit came in at $54.9m.

Exmar’s LPG shipping activities generated revenues of $141.4m in 2022, up from $137.7m in 2021, with EBITDA ahead by 24.5 per cent at $81.6m, operating profit up 78.7 per cent at $42.7m and net profit up 57.0 per cent at $16.8m. The company says the improvement is due to higher freight rates as well as lower operating costs. Exmar says the VLGC segment, where it has three vessels, has “promising” prospects for 2023, despite the expected newbuilding deliveries, on the

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back of forecast increases in LPG production and exports; it is also optimistic of market conditions in the midsize segment, despite the substantial orderbook due to enter the market.

Stealthgas reported revenues of $152.8m for the full year 2022, up 1.7 per cent on the previous year, as improving market conditions pushed up earnings, despite a reduction in its LPG fleet size. The company achieved a net profit of $34.3m compared to a loss of $35.1m in 2021, which was affected by impairment charges largely related to the spin-off of its non-LPG shipping activities. Adjusted net income rose from $10.2m in 2021 to $36.7m.

“I am very pleased to report best ever annual profit for Stealthgas,” says CEO Harry Vafias. “In a difficult environment with rising interest rates and a smaller fleet, we managed to earn total net income of $0.90 per share. These results give us the energy we all need to continue to push for more noteworthy results and to strengthen the company and our balance sheet even further!”

Stealthgas has been slowly reducing the average age of its fleet while also increasing the average size of its ships; more activity in that regard has taken place during the first quarter of 2023, with the sale of Gas Prodigy (2003, 4,900 m3), Gas Spirit (2001, 4,100 m3) and Gas Galaxy (1997, 3,300 m3) to third parties. Revenues from those disposals will be reflected in the company’s first quarter figures, countering an impairment charge taken in the fourth quarter 2022. By contrast, the youngest ship in the Stealthgas fleet, Eco Blizzard, has a cargo capacity of 11,000 m3 and four other relatively young vessels are in the 22,000-m3 range.

BWEK reported 2022 revenues of $362.3m, up 9.1 per cent on the 2021 figure, with EBITDA up 4.9 per cent at $118.2m and net profit ahead by nearly 80 per cent at $21.4m.

“The fourth quarter saw strong utilisation of over 95 per cent, rounding off a stronger year overall,” says CEO Charles Maltby.

“Our improved results were driven by a tighter market and our increasing average vessel size,” Maltby adds. “Positive earnings momentum continues as we head through the first quarter of 2023, driven by increasing supply of LPG and domestic demand.”

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EVERYTHING EVERYWHERE

warning system to protect against bridge collisions and also an echo sounder-based depth line recording to help optimise cargo carrying capacity.

GERMAN INLAND AND shortsea tanker specialist GEFO took delivery of its latest newbuilding at the end of 2022 – and it was quite special. Canaletto was designed to work in extreme low water conditions, especially at the critical points in the Middle and Upper Rhine, with the ability to manoeuvre safely in just 30 cm of water with a cargo of 500 tonnes.

This is at least 50 per cent more than conventional tankers in this size.

The ship concept was developed by GEFO in cooperation with Rostock-based Neptun Ship Design, in accordance with the requirements of BASF; GEFO will now operate the vessel for BASF on a long-term basis.

The design was tested and optimised in

standard, allowing it to call at all loading and discharge sites and to navigate the canals of western Germany.

Further optimisation is found in the cargo arrangement, with eight stainless steel tanks, two of which have a special coating and are completely segregated. This allows the tanker to carry a wide range of chemicals at the same time as aggressive acids and bases.

As might be expected in today’s market, Canaletto has been fitted with hybrid dieselelectric propulsion, which generates emissions well below the latest EU Stage V standard for NOx and particulate matter emissions. In addition, the vessel features specially developed water-cooled marine

LAST PIECE OF THE JIGSAW GEFO is planning to launch a further eight stainless steel tank barges this year, two of them shorter at 86 metres long. These too will be optimised for low-water operations and comply with the EU Stage V emissions standard. The investment in the new vessels is the final part of a €400m fleet renewal and expansion programme that has included 26 newbuildings in total, including ten seagoing tankers, and the acquisition of 13 modern tankers on the secondhand market.

Once the latest newbuildings are delivered, GEFO will have a total fleet of 150 owned and chartered tankers, of which 25 are seagoing vessels – including the recent addition of six 3,800-dwt and four 7,500-dwt stainless steel tankers. The gas tanker fleet will also be expanded to 24 units this year, following the arrival of three newbuildings last year and two scheduled additions in 2023.

The fleet is deployed in five business units, one covering seagoing chemical trades and

model tests at the Duisburg Development Centre for Ship Technology and Transport Systems, maximising efficiency through a combination of size, hydrodynamics, flow resistance and propulsion. At the same time, its overall dimensions – 110 metres long with a beam of 11.45 metres – are

batteries that, by use of an intelligent power system, mean that all-electric sailing is possible for part of the time, and that power demand while at berth is fully covered.

Canaletto also features some innovations that enhance safety during operation. It is equipped with a newly developed early

four for inland operations on the Rhine and ARA region – coated chemicals, stainless steel chemicals, gas and oil. Last year GEFO transported some 17m tonnes of liquid chemicals and mineral oil products and generated turnover of some €650m. www.gefo.com

BARGES • GEFO’S LATEST NEWBUILDING SERIES RESPONDS TO SHIPPERS’ EXPECTATIONS THAT INLAND TANKERS WILL BE EFFICIENT, SUSTAINABLE AND HAPPY TO WORK IN LOW WATER

HCB MONTHLY | APRIL 2023

TANKER SHIPPING 11

PINK AND PROUD INLAND SHIPPING • KEEPING PRODUCT MOVING ON THE RHINE WHEN THE WATER IS LOW REQUIRES INNOVATIVE THINKING, AS DISPLAYED IN HGK’S TWO NEWBUILDINGS FOR COVESTRO HGK SHIPPING AND charterer Covestro have put the new tank barge Courage into service, supplying Covestro customers in western Germany with finished products. A sister vessel, Curiosity, is due for delivery this month.

Both tank barges are designed to work in low water conditions and include a number of innovative elements for efficiency and sustainability. They have an efficient dieselelectric drive system, which can reduce CO2 emissions by up to 30 per cent compared to current vessels in service; emissions of particulate matter and other pollutants are also much lower. They have also been designed to be readily converted to run on hydrogen or other future fuels.

“It’s our goal to make our supply chains even more sustainable and more reliable around the globe,” says Hanno Brümmer, head of supply chains and logistics, EMEA at Covestro. “This also provides positive effects for our customers, because it enables them to

improve their sustainability footprint too.

We’re therefore extremely delighted to have a strong partner in the field of logistics alongside use in the shape of HGK Shipping.”

KEEP IT MOVING The development of these tank barges represents a new milestone for the Duisburgbased inland shipping specialist HGK, as CEO Steffen Bauer explains: “Both Courage and Curiosity are expressions of our overall innovative capacity. The exchange of ideas with Covestro, which involved very close cooperation and was characterised by trust at all times, formed the basis for this too. We’re very proud to continue to navigate the future of inland waterway shipping with the most modern and most innovative vessels in our portfolio.”

The new barges are designed primarily to transport finished products manufactured by Covestro to its customers along the Rhine but,

by using adjacent canals, they can also reach the Covestro plant in Brunsbüttel. To do that, they have been designed to operate in very shallow water, as low-water events on the Rhine are becoming more frequent. Being able to operate when the water level at Köln is just 40 cm provides a safeguard for uninterrupted supply of goods. This is very important for Covestro, which operates production facilities in Leverkusen, Dormagen and Krefeld-Uerdingen; some 30 per cent of the materials produced at these plants is shipped along the Rhine so the new barges will reduce the risk of supply disruption.

HGK Shipping has also taken the opportunity – for the first time – to paint the new vessels in its customer’s corporate colours, which makes them easy to recognise, even from quite a distance away. The names Courage and Curiosity and the pink livery were chosen to reflect Covestro’s core values: curious, courageous and colourful.

HGK Shipping is part of Häfen und Güterverkehr Köln AG, which began life as a port operator owned by the City of Cologne; it has now developed into a integrated transport and logistics service provider with operations across Europe. HGK Shipping is, the group says, the largest inland waterway shipping company in Europe, with a fleet of some 350 ships, including owner-operated vessels, transporting liquidm chemicals, liquefied gases, dry bulk products and breakbulk cargo. www.covestro.com www.hgk.de

12 TANKER SHIPPING

half of all lifted volumes and COA renewals were being done at an average uplift of 26 per cent. “A substantial number of our contracts are subject for full renegotiation in 2023 and present market momentum is expected to favour our position,” the company states.

During the fourth quarter, Odfjell redelivered four pool vessels, two stainless steel ships of 25,200 dwt and two 41,600-dwt coated ships; it received the first of a series of 26,000-dwt nebuildings under timecharter from Asakawa, the remaining six of the series being scheduled for delivery between this year and 2025.

DESPITE A DEPRESSED chemical manufacturing environment, a number of factors collided to ensure that chemical tanker markets remained strong last year, particularly in the second half, as recent reports are confirming. Odfjell Tankers has reported full-year timecharter earnings of $651.4m for 2022, an increase of 29.4 per cent over the 2021 figure. EBITDA rose almost 55 per cent to $372.4m and 2021’s net loss of $37.0m was

contributed to the tight chemical tanker supply. While decreasing slightly through the fourth quarter, demand has remained at healthy levels, supported by increased volumes of products being transported over longer distances.”

Odfjell terminated its coated pools and Chempool 40 during the third quarter, as a result of which total volumes lifted declined, though lifted volumes per commercial

PROSPECTS ARE GOOD Looking ahead, the market is clouded by contradictory economic indicators and significant geopolitical unrest. In the US, for example, living costs have increased while unemployment remains low, so the economic outlook is uncertain.

Nevertheless, Odfjell says, the chemical tanker market has historically been resilient to macroeconomic contractions and it believes the same will be true in this cycle. Healthy performance in the chemical tanker sector belied the downward trajectory in global chemical production, as a result of destocking, high production costs and reduced downstream demand. This position is unlikely to unwind in the near term but at least China’s economy does seem to be improving.

Signals from the vessel supply side are encouraging, though: there are few chemical tankers on order and limited capacity for further contracting; high newbuilding prices and uncertainty over future environmental standards are also discouraging operators from placing new contracts; new IMO efficiency regulation and longer trading routes as a result of the Ukraine conflict have also effectively taken capacity out of the market, while the EU ban on Russian refined products looks set to increase product tanker trading distances and

turned into a net profit of $132.9m.

“Rounding off a year of firming freight rates, chemical tanker rates remained strong across all major trade routes in 4Q22,” Odfjell reports. “Swing tonnage in our market was at low levels due to high margins in the clean petroleum product (CPP) trades. This

revenue day increased, pointing to improve efficiency and healthy utilisation.

There has also recently been a marked shift in the attitude of charterers to the use of contracts of affreightment (COAs), Odfjell says, noting that COA space is limited. As a result, COA nominations represented almost

keep swing tonnage in the CPP market.

There has been a slow start to 2023 in the spot market but improved terms under COAs renewed recently should translate into first quarter earnings being in line with or slightly below the fourth quarter 2022, Odfjell says. www.odfjell.com

THE LONG HAUL MARKET • CHEMICAL TANKER OPERATORS ENJOYED A FIRMING MARKET IN 2022 AND, DESPITE SOME CONTRADICTORY SIGNALS, THE NEAR TERM OUTLOOK REMAINS FIRM, AS ODFJELL EXPLAINS

HCB MONTHLY | APRIL 2023

RAS

SECTION SLUG 13

finally purchasing. In the past, he noted, service, companies, de Haan asserted, are able marketing was largely confined to the first two stages, with sales functions covering the rest.

RISK & HAZARD MANAGEMENT In an ever-connected world, though, this will change, with marketing covering everything up to and partly including evaluation while sales will largely be concerned with just the actual final purchasing stage.

While digitisation refers to creating a digital version of analogue and/or physical items, such as paper documents, images and sounds, digitalisation refers to enabling, improving and/or transforming business operations, functions and models and processes by leveraging digital technologies coupled with a broader use of digitised data “turned into actionable knowledge with a specific benefit in mind”. Digital transformation is “the profound and accelerating transformation of business activities, processes, competence and models to fully leverage the changes and opportunities of digital technologies and their impact across society in a strategic and prioritised way”, he explained.

To build a successful digitalised business, companies need to “create the right mindset” and have a shared understanding of where they want to go and what they want to achieve. They Only riskleadership facing an organisation is well understood can it be effectively managed. Key to the mustwhen also putthe the right in place and “launch a group focused on digital successful identification, assessment and management of risk is engagement with the right people, transformation”. Meanwhile, by using an using theplatform, right processes at an the right time. We believe we are different to many of our competitors e-commerce they can establish online presence; increase exposure; allow their and our approach is distinctive, we don’t always walk the well-trodden path but look at each client’s sales team to focus on strategic customers; particular risk context and develop a tailored solution, working in partnership with our client. and benefit from lower costs to serve. They can also gain access to much more usable We work aspects information, with theacross platform all offering them of risk, from Quantitative Risk Assessments and Predictive & generally enhanced convenience and efficiency.

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GET A WIGGLE ON CARBON CAPTURE • TIME IS RUNNING OUT IF THE MARITIME INDUSTRY IS TO MEET ITS EMISSIONS REDUCTION TARGETS. EASTERN PACIFIC IS TAKING A PUNT ON VALUE MARITIME’S FILTREE SYSTEM EASTERN PACIFIC SHIPPING (EPS) has successfully installed Value Maritime’s (VM) fully integrated carbon capture solution on its MR tanker Pacific Cobalt. The project is, EPS says, a first for an oceangoing vessel and paves the way for the concept’s industry-wide adoption.

VM’s Filtree system, which filters sulfur and 99 per cent of particulate matter, includes VM’s Carbon Capture & Storage (CCS) module

capture more than 200 tonnes of CO2 in a single voyage. Once the tank is full, the chemical will be pumped out in port and delivered to end users, such as greenhouses or synthetic fuel producers, who will be able to release the CO2 on demand. The CO2 can also be placed into carbon sequestration networks. The chemical will then be returned to the vessel for reuse

that can capture up to 40 per cent of CO2 emissions from the vessel’s main and auxiliary engines.

The CO2 is captured in a special chemical that is stored in an onboard tank that has been re-coated during a recent retrofit. The tank now provides sufficient storage space to

and to capture more CO2.

HCB MONTHLY | APRIL 2023

TIME TO GET TO WORK “For us to hit IMO 2050 and net zero targets, we need to start moving the needle significantly now,” says Cyril Ducau, CEO of EPS. ”To ensure that we are able to make a

significant difference, we have been developing a portfolio of solutions across various vessel types. Advanced decarbonisation technology, like the CCS system from Value Maritime, offers a concrete solution that can be implemented on existing vessels. The result is an immediate carbon emission reduction while removing the need to wait for the development and rationalisation of alternative green fuel infrastructure.”

“Indeed, 2023 is the year of change for sustainable shipping,” agrees Maarten Lodewijk, co-founder and director of Value Maritime. “EPS is leading the charge of shipping companies that have already started the transition to a greener fleet. Thanks to them, we have now succeeded in bringing our filtering and carbon capture technology to the tanker market. A special thanks should go to the installation team who completed this project within a narrow window and with the utmost professionalism.”

The installation of the prefabricated gas filtering system commenced in mid-January 2023 in Rotterdam. It took 17 days to complete and was managed jointly by EPS’s and VM’s sea and shore staff.

The Filtree system has now been installed on more than 20 vessels and is soon to be fitted on a number of containership newbuildings, which will also feature the modular CO2 capture and storage system.

Classification society ABS has recently granted approval in principle (AiP) for the onboard carbon capture system, confirming that the system is compliant with ABS’s rules for building classing marine vessels and their requirements for onboard Carbon Capture and Storage (CCS).

John McDonald, COO and executive vice-president of ABS, says: “Carbon capture onboard is a critical technology in the industry’s push for net zero. We are proud to be able to use our experience to support innovative ideas like Value Maritime’s Filtree System that gives clients more options in the marketplace. The Filtree system follows ABS onboard carbon capture requirements and promises to materially advance the adoption of this technology at sea.” www.epshipping.com.sg www.valuemaritime.com

TANKER SHIPPING 15

SIRIUS ABOUT SUSTAINABILITY RENEWABLES • THERE IS NO POINT GOING TO GREAT LENGTHS TO PRODUCE GREEN ENERGY IF THE MEANS TO GET THAT ENERGY TO MARKET IS NOT CARBON-LIGHT. PREEM AND SIRIUS ARE WORKING ON IT PREEM, SWEDEN’S LARGEST energy company, has put a lot of effort into leading the transition towards a sustainable society. It plans to be producing 5m m3 of renewable fuels a year by the end of this decade and to be climate-neutral by 2035, which is quite a target for a company operating two refineries.

While it has a nationwide network of 520 service stations, almost 80 per cent of Preem’s output is exported, mainly to north-west Europe. To meet its stated decarbonisation targets, the transport of that product will have to be managed carefully.

Preem has worked with local shipping company Sirius Shipping, which is headquartered on the island of Donsö near

Gothenburg, for some time and is now extending that cooperation with a long-term timecharter for the 9,200-dwt product/ chemical tanker Olympus, which will be used mainly to distribute products, as well as deliver green feedstocks and renewable commodities to Preem’s refineries. The 2006-built tanker will commence the charter during the second quarter.

ALL-ROUND SAVINGS Sirius Shipping points out that the vessel’s design and equipment meet high demands with regards to safety, quality and efficiency, with a special focus on long-term sustainability and low environmental impact.

The use of selective catalytic reduction (SCR) on the main engine and a Catamiser on the auxiliary engines considerably reduces CO2 emissions, while NOx emissions can be kept below 2 g per KWh. The Catemiser technology, which is in effect an SCR unit surrounded by heating coils to recover waste heat while reducing NOx in exhaust gases, allows residual heat to be recirculated and used onboard, reducing energy consumption (especially during winter operations in Scandinavia) as well as emissions during loading and discharge in port. This is good for the environment but also, as managing director Jonas Backman notes, good for the bottom line.

A lot of these benefits derive from a major retrofit to the tanker carried out in 2010, as a result of which it became the first vessel in the world to reduce its NOx emissions by 90 per cent to some 100 tonnes per year; the work also cut 100 tonnes of bunker fuel off operating costs and saved 300 tonnes of CO2 from being released to the atmosphere.

Similarly, while operating for Preem, Sirius’ vessels apply slow steaming, adjusting their passage speed to minimise the time spent at anchor outside port, while also reducing fuel consumption, increasing safety and tempering the environmental impact of shipping operations.

“We are very pleased with the choice of this environmentally friendly tanker vessel,” says Tryggve Berlin, Preem’s shipping manager. “Preem’s sea transportations make up a large and important part of the company’s operations. This is why we have, as in all our procurement processes, put a lot of emphasis on the vessel meeting high sustainability demands.”

Sirius Shipping takes a similar view, being open to all manner of technologies.

“We look at LNG propulsion, ballast and wastewater treatment, onboard energy recycling, cold ironing, biodegradable lubricants and many other measures,” says Backman. “We transport oil and chemicals in a sensitive environment. Our vision is for our ships to emit no harmful substances at all.” www.preem.se www.siriusshipping.eu

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NEWS BULLETIN

TANKER SHIPPING

tankers, while Air Water will also look at whether dairy farms can use the LBM in place of LNG for their own heating and energy needs. www.mol.co.jp www.waterfront-shipping.com MILKYWAY INTO SHIPPING

MOL INTO METHANOL

Mitsui OSK Lines (MOL) has held a naming ceremony for the dual-fuel methanol carrier newbuilding Cypress Sun at the Hyundai Mipo Dockyard. The 49,999-dwt carrier is able to run on methanol or conventional heavy fuel oil and is a sister ship to Capilano Sun, which was delivered in 2021. Both were ordered against long-term contracts with Waterfront Shipping, the methanol tanker specialist.

Following delivery, MOL will now have one of the world’s largest fleets of methanol carriers, with 19 ships, and also five of the 23 methanol dual-fuel tankers in service.

Methanex and Mitsui OSK Lines (MOL) have meanwhile successfully completed the first ever net-zero voyage fuelled by bio-methanol.

MOL’s product tanker Cajun Sun, operated by Methanex subsidiary Waterfront Shipping, sailed from Geismar, Louisiana to Antwerp using a blend of bio-methanol and natural gas-based methanol, achieving net-zero greenhouse gas emissions on a lifecycle basis.

“We’re proud to bring the marine industry a tangible solution to transition towards net-zero

HCB MONTHLY | APRIL 2023

emissions through our blended methanol product using bio-methanol produced from renewable natural gas at our facility in Geismar,” says Mark Allard, Methanex’s senior vice-president, Low Carbon Solutions.

“As the world’s largest methanol producer, we are establishing a network of relationships with leading renewable natural gas suppliers and assessing other pathways, including carbon capture and storage and e-methanol, to provide solutions for the marine industry and other customers.”

MOL has also begun a joint study with Air Water on the use of liquefied bio-methane (LBM) derived from cattle manure as an alternative to LNG for vessel propulsion. The study will form part of an LBM technology research and development programme approved

by Japan’s Ministry of the Environment.

LBM will be produced by Air Water from cattle manure in the Tokachi, Hokkaido; Air Water and MOL will then confirm that LBM can be transported, supplied and utilised without problem and using existing equipment.

MOL will trial the fuel on one of its coastal

Milkyway Chemical Supply Chain has taken an 80 per cent shareholding in Zhoushan Zhonggu Shipping, marking its entry into the chemical tanker market. Milkyway notes that the maritime transport of chemicals is in a state of flux, with major new crackers and downstream projects coming onstream in China and chemical production in Europe and America variable in response to price movement. In order to be able to provide an agile service to its customers, especially for coastal transport in China, Milkyway felt the need to be able to offer a chemical tanker option.

Zhoushan Zhonggu Shipping currently operates four 4,000-dwt stainless steel chemical parcel tankers on domestic coastal service for chemical producers, with 80% contract coverage.

Milkyway says the addition of a shipping business to its existing domestic chemical warehousing, transport and distribution services and its international sea, air and rail freight forwarding business will create a one-stop-shop for the entire chemical supply chain, from raw materials to finished product. It says it will invest in the business, expanding the fleet and service area.

Jeff Wang, vice-president of Milkyway, adds: “We will rapidly expand our tanker fleet, build our talent team and serve our customers.” An “exciting” shipbuilding programme will be announced next year. www.mwclg.com NYK’S DUAL-FUEL VLGC DELIVERIES

Kawasaki Heavy Industries (KHI) has delivered the 84,000-m3 dual-fuel VLGC Lantana Planet

TANKER SHIPPING 17

to NYK. A sistership, Lupinas Planet, was completed this past September and both are under charter to Astomos Energy.

The new vessel is the fourth dual-fuel LPG carrier to be built by KHI; it is equipped with a selective catalytic reduction system and an exhaust gas purification system to meet Tier III NOx emissions standard and allow it to navigate in emission control areas. For flexibility in operations, the LPG fuel tanks are located on the ship’s upper deck, allowing LPG bunkering to be carried out independently of cargo loading, while there is also a piping system to connect the fuel and cargo tanks to allow the transfer of LPG cargo for use as fuel when necessary.

Since the launch, NYK has further extended its newbuilding programme at KHI with a fifth order for a dual-fuel VLGC. The new unit, designed for the transport of LPG and ammonia, is scheduled for delivery in 2026. In addition to the LPG dual-fuel engine, the ship will have a shaft generator that can generate electricity during the voyage by using the rotation of the shaft that connects the main engine to the propeller. Since the diesel generator can be stopped during normal seagoing transit, realising full navigation with LPG fuel will be possible except for the use of a small amount of pilot fuel. www.nyk.com NGL ENERGY SHIPS OUT

NGL Energy Partners has reached agreements to sell its marine assets for $111.65m in cash; the transaction, which was expected to close by the end of March, includes 13 towboats and 25 tank barges that serve a range of customers in the US Gulf Coast region, including major oil refineries, transporting crude oil and refined products. NGL sees the marine assets as non-core and the sale will be used to reduce debt and leverage.

The buyer has been identified as Campbell Transportation Company, which is active in the transport of liquid and dry bulk goods by inland waterway throughout the US. Following the closure of the deal, Campbell will have more than 60 towboats at its disposal, together with 95 tank barges and around 1,150 other vessels. www.barges.us www.nglenergypartners.com ABU DHABI IN ORDERING MODE

ABGC, a joint venture between Al Seer Marine and BGN International, is reported to have booked two LPG carrier newbuildings at Hyundai Samho for early 2026 delivery, in a deal reported to be worth around $197m. The joint venture already has two 86,000-m3 LPG carriers on order at Hyundai Heavy Industries.

ABGC was set up last year between the Dubai-based shipping company and Dubaiheadquartered energy trader BGN and has already acquired two smaller LPG carriers on the secondhand market.

Al Seer Marine itself is separately expanding its tanker fleet, ordering four IMO II/III tankers from K Shipbuilding for some $175m.

Delivery of the ships, due by the end of 2024, will take Al Seer’s fleet up to 12 vessels. alseermarine.ae K LINE LOOKS AT CARBON DIOXIDE

K Line has signed bareboat and timecharter contracts for two 7,500-m3 liquefied carbon dioxide carriers with Northern Lights, a Norway-based joint venture that is developing carbon capture and storage projects. The ships are due for delivery in 2024 and will be put to use lifting CO2 from industrial emitters, including the Norcem Brevik and Hafslund Oslo Celsio carbon capture facilities, and carrying it to the Northern Lights CO2 receiving terminal in Øygarden, Norway.

“K Line has a long history of creating innovative shipping solutions. Together with their ability to overcome changing business conditions and working to ensure safe and reliable operations, this will be key for making this groundbreaking and pathfinding collaboration a success,” says Børre Jacobsen, managing director of Northern Lights. norlights.com www.kline.co.jp

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18 TANKS & LOGISTICS

LAMILUX COMPOSITES, A leading specialist in fibre-reinforced composites, has launched what it describes as a revolutionary tank cladding material. The new material, developed and manufactured in Germany, is about five times stronger and 30 per cent lighter than other tank cladding materials, Lamilux says.

Lamilux X-treme is a fibre-reinforced composite material with the maximum possible content of reinforcement fibres in a highly elastic epoxy resin matrix. The outstanding toughness this produces saves operators time and money by reducing maintenance and repair costs and also container downtime.

Tank containers of all kinds are subjected to very high mechanical loads during loading

world’s roads and seas, the material remains visually appealing and maximises the durability of the entire structure. The operator also saves on running costs, as the tank container has a significantly lower deadweight than one with a conventional exterior shell.

Lamilux describes the four advantages of using its X-treme tank cladding: • Reduced maintenance and repair costs • Maximum durability and less downtime • High-quality appearance even under tough conditions • Reduced operating costs due to lower tare weight.

YOU GOT THE LOOK It’s not just about the time and money needed

being damaged, so they will last a lot longer before needing any repairs. It means that tank containers can retain their new look much longer and represent the customer’s brand much better.

Lamilux fibre-reinforced composites are produced in a continuous, automated production process. The separate production lines ensure minimum delivery times while providing consistently optimum quality, which can be reproduced at any time. The X-treme product range can be made in widths of up to 3 metres, and the length of sheets or rolls can be changed to meet the customer’s needs.

Lamilux Composites will be taking the new product out to meet the market at next month’s Transport Logistic trade fair in Munich, where it will have a booth within the ITCO Village in hall B4.

Lamilux Composites GmbH has been producing fibre-reinforced plastics for around 70 years. The medium-sized company is the leading European producer thanks to its technologically advanced continuous production process, large manufacturing capacities and wide product range. Lamilux supplies customers around the globe in a wide range of sectors, including construction,

and transport, whether they are used as containers on a cargo ship or as tank containers on trains or on a truck. This is where Lamilux X-treme comes in: it provides safe and energy-efficient transport of tank containers.

Even under the harshest conditions on the

to fix damaged containers, although this is certainly annoying. Mostly, when the cladding of a tank is damaged, it is repaired with the use of patches or partially replaced with new cladding. This results in containers looking like patchworks and far from ‘as new’.

Lamilux X-treme protects containers from

automotive, refrigerated store room and cell construction, and many other industrial sectors. In 2021, Lamilux and its workforce of some 1,300 employees achieved a turnover in excess of €300m. The family-managed company is based in Rehau, Bavaria. www.lamilux.com

CLAD ALL OVER TANK CLADDING • LAMILUX HAS BEEN WORKING HARD TO FIND THE SWEET SPOT BETWEEN WEIGHT AND STRENGTH WHEN IT COMES TO EXTERNAL CLADDING FOR TANK CONTAINERS

HCB MONTHLY | APRIL 2023

CHEMICAL DISTRIBUTION 19

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20 TANKS & LOGISTICS

AHEAD OF THE Transport Logistic show in Munich, which starts on May 9, the organisers polled registered exhibitors and previous visitors – more than 2,500 people altogether – to get their views on the current and future state of the European logistics sector. While there was some pessimism, as might be expected, overall the feeling is that the industry is in a robust position.

According to the Trend Index, one in three respondents to the survey expects an economic downturn but two-thirds of them are already prepared for it. Also, some three-quarters of respondents expect further

The biggest challenge for the industry is the shortage of skilled labour and drivers. In addition, smaller companies are harder hit by inflation, and price and competitive pressure.

Larger companies see themselves challenged more by the shortage of energy and raw materials, as well as disruption in the logistics value chain. These are mainly macroeconomic, demographic or geopolitically induced problems that exert little influence on individual companies.

It is against this background that the Trend Index identifies the challenges facing the logistics industry.

expected service providers (38 per cent) are more challenged than shippers (28 per cent).

Perhaps this is down to the image of the industry: more than 40 per cent of respondents did not describe logistics as an attractive employer, though nine out of ten respondents would recommend their own company.

In addition to the shortage of skilled labour and drivers, rising inflation (29 per cent) and growing price and competitive pressure (28 per cent) are putting a strain on more than one in four companies. These issues are among the biggest challenges for two thirds of small and medium-sized companies. The order of priority is different for large companies where, after the ever-present staff shortage problem, the shortage of raw materials and energy (31 per cent), and disrupted supply chains (26 per cent) are the other main concerns.

Urban logistics may offer a roadmap to a cleaner, smarter and faster future for the logistics industry as a whole; important here are collaboration with other players, the use of alternative drives, pooling across service providers and shifting the flow of goods.

“Many of our challenges need more collaboration in the logistics chain,” explains Axel Plass, president of the German Association of Freight Forwarders and Logistics (DSLV). “At Transport Logistic in Munich, it’s quick and easy for us to bring everyone involved together. We jointly develop ideas with suppliers, shippers and consignees.

This ensures the best possible joint use of resources.”

In a post-Covid world, getting back to face-to-face meetings is crucial in developing collaboration, the event organisers say. Stefan Rummel, managing director of Messe München, puts it this way: “Logistics can assume its place as the third-largest industry with confidence. Each individual company can contribute to that by drawing positive attention to the successes. Logistics companies tackle

disruptions in supply chains. Most think they can cope with a further escalation in disruption as a result of the war in Ukraine without any economic consequences. Overall, the lesson is that the logistics sector can solve its own problems – and those of others - if it is allowed to do so.

SOLUTIONS THROUGH COLLABORATION Across all sectors and company sizes, every second respondent is affected most by problems due to staff shortages. The shortage of drivers aggravates the situation for almost one in three companies, though as might be

problems and optimise processes. In an age when resources are becoming increasingly scarce, that is more important than ever. At Transport Logistic, the logistics industry can demonstrate over four days how attractive and innovative it is.” transportlogistic.de

PREPARED FOR THE WORST SURVEY • A SHORTAGE OF SKILLED LABOUR AND A MARKET ENVIRONMENT SHAPED BY INFLATION ARE THE MAIN TAKEAWAYS FROM A NEW MAJOR SURVEY BUT INDUSTRY IS READY

HCB MONTHLY | APRIL 2023

CHEMICAL DISTRIBUTION 21

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22

dioxide and nitrous oxide. Demand for the movement of LNG and hydrogen is also on the rise as alternatives to traditional fossil fuels.

Customers represent a diverse range of organisations and sectors, including energy and gas providers, industrial companies, hotels, medical businesses, beverage makers, and others.

GLOBALSTAR EUROPE SATELLITE Services, Ireland-based subsidiary of Globalstar Inc, has recently deployed a satellite-based, internet of things (IoT) tracking solution, leveraging Ovinto’s smart asset monitoring system. The equipment has been fitted to cryogenic tank containers being used by a major industrial gases supplier to ensure the safety of LNG and other hazardous gases as they are transported around the world.

The gas producer has adopted the Ovinto Sat monitoring system, which in this application is enabled by Globalstar’s worldwide satellite coverage and its STX3 chipset, which Globalstar says is the smallest

information, the Ovinto sensors could also measure the internal temperature and pressure in the tank. Furthermore, the customer found Ovinto Sat’s configurability and user-friendly dashboard to be significant factors in its decision.

In addition, alternative systems that were trialled were unable to provide uninterrupted tracking data due to their reliance on GSM technology; some were too complex for speedy implementation or lacked an intuitive user interface. The ruggedness, low power consumption and long battery life of Ovinto Sat units were further valued features, especially as the containers tank long and

SAFE AND SOUND To be able to provide valuable data, it is critical to be able to continually monitor the pressure inside the tank containers to ensure the safe transport and delivery of the liquefied gases being exported. Tank containers get stacked during transport and storage so the sensor devices need to be affixed to the outside of the container, inside a rugged domed casing, to keep a continuous line of sight with the satellite network In Low Earth Orbit, so data on the environmental characteristics of the container flow uninterrupted as they traverse the globe.

“The Globalstar satellite system remains the best solution on the planet on account of its coverage, minimal latency, low power and, as a result, its affordability,” says Frederick Ronse, managing director of Ovinto.

It is also crucial to be able to do this safely and Ovinto Sat complies with the highest possible ATEX standard certification for explosion prevention. Further, because it’s powered by long-life batteries, Ovinto Sat allows customers to monitor materials in unpowered environments including rail tank cars and containers.

“We are continually amazed by the myriad of ways in which satellite IoT-enabled solutions based on Globalstar are used to improve people’s lives, businesses and the environment,” comments Mark O’Connell, general manager of Globalstar EMEA & APAC. “And we’re tremendously proud that, together with our valued partner Ovinto, we’re enabling the safe delivery of cleaner energy solutions to

and lowest power consuming satellite IoT chipset on the market; this includes multifunction sensors to monitor the product in transit.

The gas producer began deploying Ovinto Sat four years ago. Compared to earlier solutions, which could only provide location

arduous journeys by sea.

The gas producer now has a fleet of 600 tank containers, each fitted with an Ovinto Sat sensor device; every new tank added to the fleet is also equipped with the system. The tanks are used mainly for the worldwide export of argon, nitrogen, oxygen, carbon

ever more customers.”

Those who want to see the system up close can visit Globalstar on Booth A.3 647 at the Transport Logistic show in Munich from 9 to 12 May. www.globalstar.com www.ovinto.com

FOLLOW THE GAS TRACKING • THE INTERNATIONAL TRANSPORT OF INDUSTRIAL GASES POSES CHALLENGES IN TERMS OF MONITORING AND TRACKING. GLOBALSTAR AND OVINTO HAVE BEEN WORKING ON THE ISSUE

HCB MONTHLY | APRIL 2023

CHEMICAL DISTRIBUTION 23

Logistics Simplified

Chemical logistics, a division of Goodrich, has grown rapidly over the years and now boasts of an impressive list of customers.

Chemical logistics' activity segments include equipment adjuncts such ISO Tanks, Swap Tanks, Lined Tanks and a state of the art storage and distribution facilty loated at the Free Trade Zone in Jebel Ali.

CHEMICAL STORAGE FACILITY JAFZA Storage of Chemicals under class 3,6 8,9 & Non-regulated.

Drum / IBC Filing

SERVICES OFFERED ISO TANKS Chemical carriage (hazardous & non-hazardous) Tailormade solutions specific to the need T11 ISO Tanks with capacities between 24 KL to 26 KL

Temp controlled storage Transloading from ISO-ISO/ Flexi & Road Tankers

T14, T20, T22 & T50 Tanks are available on dedicated basis.

Dedicated Technical Team to provide support in all situations and contingencies

ISO tank cleaning , storage & repair depot alongside thru Road tanker cleaning

SOC Tank Management

Blending and Heating Tanks

Complete End to End Logistics SWAP BODY TANKS for carriage of higher payloads

GOODRICH OWN OFFICES & NETWORK PARTNER OFFICES AFGHANISTAN | ALGERIA | ANGOLA | AUSTRALIA | BAHRAIN | BANGLADESH | BELGIUM | BRAZAIL | BRUNEI | CAMBODIA | CAMEROON | CHINA | DJIBOUTI | EGYPT | GHANA | GEORGIA JAPAN

GERMANY | GREECE | HONG KONG | INDIA | INDONESIA | IRAQ | ISREAL | ITALY | IVORY COAST |

| JORDAN | KAZAKHSTAN | KENYA | KUWAIT | LATVIA | LEBANON | LIBYA

NETHERLANDS |

LITHUNIA | MALAYSIA | MEXICO | MOROCCO | MYANMAR |

OMAN | PAKISTAN | PHILLIPINES | POLAND | PORTUGAL | QATAR |

ROMANIA | RUSSIA | SAUDI ARABIA SENEGAL | SINGAPORE |

SLOVENIA | SOMALIA | SOUTH AFRICA | SOUTH KOREA | SPAIN | SRI LANKA | SUDAN | TAIWAN | TANZANIA | THAILAND | TUNISIA | TURKEMINSTAN | TURKEY | UAE |

UKRAINE | UNITED KINGDOM |

UZBEKISTAN | USA |

VIETNAM | YEMEN

24

START MAKING SENSE

THE ONGOING CONFLICT in Ukraine has had a significant impact on chemical supply chains, both within Europe and globally. Normal patterns of trade have been compromised and many long-established routes have been disrupted. While we can analyse the short-term impact, the long-term effects are yet to be fully understood.

The impact the conflict has had on the physical transport of chemicals in eastern Europe cannot be over-stated. The country is a major transit point for pipelines and links that carry raw materials in and out of Europe.

materials and have resulted in a significant increase in energy costs. This has had a huge effect on chemical supply chains in Europe and beyond, leading to shortages and price increases for a wide range of chemical products. These, in turn, have had cascading effects on multiple industries that rely on these chemical inputs.

EUROPE LOSES SHARE In order to protect chemical plants in Europe from costly shutdowns, new supply chains to source raw material and feedstocks from

have forced many chemical producers in the region to pass these costs on to customers and end users, ultimately making these producers less competitive and attractive when compared to alternatives from Asia or the Americas.

This has all come at a time of reduced deepsea ocean rates, which have recently stabilised to the lowest levels since pre-Covid.

In addition, chemical logistic costs within the EU (and UK) are at an all-time high, due in part to the issues already discussed, and the lingering effects of Covid and Brexit, which further reduce the affordability and appeal of European chemical producers.

As a result, there has been a downturn in demand and, as a result, overall production at many sites has decreased. The loss of manufacturing output has further reduced the competitiveness of European chemical manufacturers, who are unable to bring the economies of scale necessary to reduce cost, when compared to rivals, or their own manufacturing, in other regions.

The conflict has damaged or shut down many of these transit links, leading to disruptions in the supply of key feedstocks for many chemical production processes.

The sanctions imposed on Russia in response to its invasion of Ukraine have led to restrictions on previously accessible raw

other locations have had to be quickly established, often at greater expense to the chemical producers.

The increasing costs of feedstock has been compounded by the skyrocketing price of energy. As an already highly energy-intensive industry, soaring energy prices within Europe

The impact on the global supply chain is far reaching. We are only in the early stages of what could be a complete shift in numerous supply chains, which have been long established and unbroken for many decades.

In the medium to long term, we can expect to see manufacturers shift their sourcing of

CONFLICT • SUTTONS INTERNATIONAL IS CONTINUALLY REVIEWING THE SITUATION IN UKRAINE TO ENSURE ITS CUSTOMERS EXPERIENCE MINIMAL DISRUPTION AS SUPPLY CHAINS ARE IMPACTED

HCB MONTHLY | APRIL 2023

TANKS & LOGISTICS 25

chemical products necessary for their operations away from the now higher cost European manufacturers to alternative suppliers outside of Europe.

NAVIGATING THE CHANGE One important action Suttons International took in response to the invasion of Ukraine was to immediately stop all Suttons tanks carrying out import and export business to and from Russia. It is continuously working with its customers to provide logistics solutions for the transport of alternative and ethically sourced products from other areas of the globe, to help with the immediate disruptions caused by the sanctions.

Another way in which Suttons International is helping its customers navigate these issues is through the use of strategically located bulk storage locations to hold buffer stocks of critical raw materials. This way Suttons can

keep its manufacturing customers constantly supplied with raw materials and finished products, further offsetting the unpredictability of the ongoing conflict.

Suttons is committed to the UK:EU market and to supporting its customers who require shortsea logistics. The UK-based logistics provider is working with customers to develop the most cost-effective way to move products between the UK and Europe, to help them remain competitive. Likewise, thanks to its global network with depots and offices across the US, South America, south-east Asia, Japan and China, Suttons can support any customers that are unable to retain their existing supply chains and help with the planning and distribution of products from new locations.

Suttons is also proactively investing in the use of advanced visibility tools that will allow it to understand the fluctuations within the

supply chain and more effectively utilise its assets to support customers, with the aim of keeping their costs down.

Furthermore, Suttons’ skilled and effective operations team is aligned to its customers’ manufacturing schedules and commercial forecasting. This enables it to ensure that tank availability and vessel capacity meets customer demand, to keep products moving and to keep any potential disruptions to the minimum.

Fundamental changes are occurring across chemical supply chains. The political and economic situation caused by the Ukraine conflict has cast uncertainty on the long-term viability of the European chemical supply chain, which is still feeling the lingering effects of Covid and Brexit. The high energy costs are a particular frustration which must be overcome in order to stabilise and restore confidence in the industry. www.suttonsgroup.com

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NEWS BULLETIN

TANKS & LOGISTICS

with its own tank and dry containers, providing a one-stop-shop solution with highly competitive rates.

“We are very excited to launch our domestic trucking services in Dubai,” says Dennis Wong, deputy CEO of Legend Group. “We believe this new venture will enable us to expand our reach in the region and help us better serve existing customers, as well as new ones.” www.legendlogisticsltd.com MORE SPACE FROM DACHSER

DEN HARTOGH PLUGS IN

Den Hartogh has taken delivery of its first battery-electric truck, a Volvo FM unit. This is, Den Hartogh says, the lightest possible electric truck with maximum load capacity, and marks an important step on its mission to reduce transport-related CO2 emissions by 25 per cent by 2025 and be fully CO2-neutral by 2050.

“These are serious ambitions,” says Pieter den Hartogh. “We want to minimise our impact on the environment and work as sustainably as possible. For that reason, we are continuously looking for opportunities to enable us to reduce our emissions. We do that with electric as well as LNG-powered trucks. The addition of the Volvo FM Electric is a new milestone.”

“The Volvo FM truck will be used in the Rotterdam cluster where we implement the dedicated last and first mile of our intermodal transport,” adds Joep Aerts, business unit director, liquid logistics. “We load and unload tank containers at our big customers. This means that we have relatively short trips, with the truck returning to the site every evening so that it can be charged at night. This is a way of using electric transport at all our bigger international intermodal hubs.”

HCB MONTHLY | APRIL 2023

While the new truck will go into service immediately, it cannot yet be used for ADR transport. “Legislation still lags behind reality,” Aerts says. “However, we hope to see a change in the legislation soon.”

Not only does the new truck help Den Hartogh reduce its carbon footprint, the vehicle itself is designed with sustainability in mind, the chassis being manufactured from fossil-free steel. “We’ve had a partnership with Volvo Trucks for years,” says Pieter den Hartogh. “It’s these kinds of things, together with Volvo’s alternative powertrains, which mean that we are keen to work together in the transition to becoming CO2 neutral.” www.denhartogh.com LEGEND OFFERS UAE TRUCKING

Legend Shipping, a wholly owned subsidiary of Legend Group, has launched a domestic trucking service in Dubai. The service will initially provide transport for clients in the region that are located near the UAE ports.

Legend says it plans to build up the fleet and expand routes to several ports, storage terminals and refineries in the Middle East to deliver high-quality complementary services along

Dachser has started work on an expansion of its storage capacity in Rottenburg am Neckar, near Stuttgart, with a new warehouse located next to its existing site in the Ergenzingen-Ost industrial park. The 11,500-m2 building, expected to start operations in August 2023, will offer storage solutions to customers from the pharmaceutical, chemical, food, electronics and consumer goods sectors.

“By adding a new warehouse to our branch, we are addressing the high demand among local businesses for storage space and related services, as well as for closely interconnected distribution in Germany and the rest of Europe,” says Marco Geiger, branch manager in Rottenburg am Neckar. “That means we’ll be able to offer a broader range of services to our existing customers in the region while also appealing to prospective customers looking for a key strategic and forward-thinking partner.” www.dachser.com PETREGAZ ADDS TO LPG FLEET

Petregaz, a subsidiary of the Petredec Group that distributes LPG in southern Africa, has acquired the LPG trucking assets of OneLogix; the deal is effective from 1 April. The acquisition of 35 additional trucks will allow Petregaz to expand its supply chain capabilities and its customer base.

Matthew Costello, managing director of

TANKS & LOGISTICS 27

contribution to greater road safety and environmental protection.” Talke will bring additional units into its fleet over the coming months, ensuring that the fleet remains at the cutting edge of technology. www.talke.com EXSIF NOW IN DUBAI

Petregaz, says: “We are thrilled to have entered into this transaction. The addition of these assets to our business together with a focus on a high standard of service delivery will significantly enhance our logistical capabilities which are key to the reliable supply of LPG in Southern Africa. We will build on key focus areas including security of supply of LPG in Southern Africa as well as provide supply chain excellence to Petregaz’s valued existing and potential new clients.” petregaz.com SOUTH COAST RECOGNISED

South Coast Logistics, the Ireland-based intermodal transport operator, has been recognised with the SME Company of the Year Award at the 2023 Logistics & Transport Awards.

“I am thrilled and honoured that South Coast has been awarded with the prestigious Logistics and Transport Company of 2023 award at the Logistics & Transport Awards. It is a remarkable accomplishment for our entire team and a testament to their hard work and dedication,” says Richie O’Flynn, commercial director of South Coast Logistics (above).

“Along with our staff, we owe much of our success to our sister company, Specto, which maintains our extensive fleet to the highest possible standards.” www.southcoast.ie NEW TRUCKS FOR TALKE

Talke is in the midst of a major road fleet renewal project, taking some 150 new tractor units into service in the coming months to update its haulage operations in Germany, Poland and Luxembourg. The Actros L units from Mercedes Benz are fitted with the latest safety systems and driver aids, as well as offering a reduction in fuel consumption of up to 4 per cent compared to earlier models through the use of a significantly improved drive train. The first trucks joined the Talke fleet early in March.

“We are proud to add the latest and safest Mercedes Benz models to our fleet,” says Talke’s managing director, Christoph Grunert.

“Investing in the latest technology demonstrates our commitment to the highest safety and environmental standards. By renewing our fleet, we are making an important

Exsif, a leading tank container leasing company, has extended its global footprint with the opening of a new office in Dubai, designed to provide better service for customers in the Middle East and India. Exsif now has a presence in 19 countries around the world and a fleet of more than 70,000 tanks.

The new office will be headed by Daniel Bleymann, vice-president, Middle East and India, who moves over from Exsif ’s offshore tank rental business. In his new role, Bleymann will represent both tank container leasing and offshore tank rental businesses. He can be contacted by email at daniel.bleymann@exsifww.com.

In other news, Exsif has recently been recognised by specialty chemicals producer Nouryon as one of its top global sourcing partners in the area of supplier reliability.

Recipients in this category were recognised for exceptional supply reliability, collaboration, and close partnership with Nouryon while facing a challenging supply and demand environment.

Speaking at the awards event in Rome this past February, Nouryon CEO Charlie Shaver said: “Our suppliers are vital to Nouryon’s success, and we value their resilience as well as their commitment to pursuing innovation, reliability and sustainability, despite facing a challenging supply chain environment. It is through our close collaboration with suppliers that we are able to continue to innovate and grow with customers, support our strong market position and drive sustainable growth for our company.” www.exsif.com

WWW.HCBLIVE.COM

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WHAT IT ALL MEANS OPINION • THE RECENT DOWNTURN IN EUROPEAN CHEMICAL OUTPUT HAS IMPACTED SUPPLY CHAINS. HCB SPOKE TO AZELIS TO FIND OUT WHAT THIS MEANS FOR LOGISTICS PROVIDERS AZELIS IS ONE of the major chemical distributors in the world and is supported by a global laboratory network. Dr Heli Kilpala (below), the group’s strategy and digitalisation director, and group SHEQ and sustainability director Maria Almenar (opposite), spoke to HCB about the current market and what plans Azlis has for the future.

already active as well as regional expansion.

Many serial consolidations in distribution are in an excellent position to do that, thanks to their solid financial performance. On the chemical manufacturing side, we have seen divestment and merger activity that result from manufacturer’s new strategic focus and positioning in the market.

HCB: Have market conditions made further consolidation in the chemical distribution sector more likely?

Azelis: Traditionally, mergers, acquisitions and other deal activity likely will drop in an economic downturn, especially after record highs in M&A volume and value of deals. Many factors determine the level of industry consolidation, and not all potential acquirers will be in the same position.

Today, buyers’ ability to acquire a business is relatively strong thanks to both the level and mix of capital available to buy. More consolidation

HCB: How and where can distributors find greater efficiencies, such as through wider digitalisation?

activity is expected from those companies that have, in recent years, enjoyed excellent profitability, ensuring high cash flow generation.

Serial consolidators in chemical distribution continued to accelerate their M&A activity in the last years in their efforts to broaden their market coverage in markets where they are

HCB MONTHLY | APRIL 2023

Azelis: There are many areas where distributors can find greater efficiencies. To mitigate the impact of higher supply chain costs, distributors can optimise their supply chain networks, including regional warehouse operations, purchasing of logistics services, consolidating supplier orders, and optimising customer service levels.

Furthermore, the leading distributors collaborate with their suppliers in planning forecasting through a supportive system of shared information and joint practices to meet customer needs. These collaborative planning, forecasting, and replenishment approaches (CPFR) are already commonplace in many industries but underdeveloped in chemicals.

Digitalisation offers new opportunities to grow the business and create internal efficiencies. Distributors can digitalise their product information and innovations and create new customer intimacy by making them available to customers anywhere, anytime. At Azelis, we have rolled out customer portals across 104 markets globally.

We now apply new digital marketing approaches to grow our top line by targeting customers with personalised offerings, activating sleeping customers, and acquiring new customers.

We organise more digital meetings, so digitalisation has changed our way of working quite significantly already for the better.

Advanced chemical distributors are bringing in new applications to help collaborate around innovations and solve technical application challenges remotely. At Azelis, we have developed an in-house built application, the e-Lab, for this purpose. Furthermore, in internal operations, distributors can apply machine learning to bring operational efficiency to people’s daily work to cut down operational, mundane data entry work.

Creating and managing a huge amount of product information poses potentially a significant challenge for any chemical distributor. At Azelis, we already deploy an AI-enabled system to reduce the workload of people involved in this process.

HCB: How is the energy transition impacting distributors?

CHEMICAL DISTRIBUTION 29

Azelis: Sustainability is one of the three growth drivers of our strategy, next to digitalisation and innovation. Our commitment to sustainability is central to who we are, what we do, and how we create value.

Our sustainability strategy Action 2025 comprises four pillars: People, Products and

Innovation, Governance, and Environment. For each of these four pillars, we have developed ambitious goals and KPIs. Under the environmental pillar of our sustainability strategy, we have committed to reducing our Scope 1 and Scope 2 carbon intensity and working with our supply chain to reduce Scope 3 emissions. We are devoted to decarbonising our operations and supply chain by continuously improving energy efficiency and developing partnerships with our principals to help reduce the carbon footprint of products, services, and processes.

We at Azelis have always wanted to set the pace in sustainability. The current macroeconomic circumstances caused by the war in Ukraine and Russia have heavily influenced crude oil prices, so the entire chemicals industry has now realised we are too heavily dependent on fossil fuels. In general, there is now in Europe a higher sense

of urgency to decarbonise, and Azelis is more than ready to continue the decarbonisation journey. In terms of Scope 3 emission, we must rely on the commitments of our business partners, being in the middle of the supply chain. Before we start up a collaboration, we do require transparency of data to assess whether it aligns with our ambitions in terms of decarbonisation.

To further decarbonise our own operations, we have started a yearly fund to invest in carbon mitigation technologies such as solar panels and state-of-the-art equipment that is less energy consuming. Wherever we can, we source electricity from renewable sources. We will, moreover, start working with carbon absolute targets, requiring us to disclose absolute emissions, thereby taking our commitment to the decarbonization of our operations even further. www.azelis.com

Proud to be a leading innovation service provider of specialty chemicals and food ingredients.

At Azelis, we’re rethinking the role of a traditional distributor, offering a blend of expertise, ambition and experience and creating innovation through formulation. We’re fueled by our purpose to make the world a better place, while empowering the growth ambitions of our partners through a range of sustainable formulations, innovative solutions, and pioneering digital platforms.

Find out more about us, visit azelis.com or scan the QR code. visit azelis.com www.sustainalytics.com/legal-disclaimers

Top 5th percentile of 14,500 companies rated

30

and customers globally.”

Sam Feinstein, private equity partner at Apollo, comments: “Univar is a global leader in specialty chemicals and ingredients distribution, fuelling a vast array of industries with innovative, safe and sustainable solutions. In recent years, David and his team have made tremendous progress enhancing the customer experience, and we believe Univar can accelerate its long-term strategy as an Apollo Fund portfolio company. We look forward to leveraging our extensive experience in the sector to support management in this exciting next phase.”

The transaction is expected to close in the second half of 2023, subject to customary conditions and approvals. Foltttlowing the transaction, Univar will be delisted from the NYSE and will continue to operate under its current name as a privately held company.

UNIVAR SOLUTIONS HAS agreed to be acquired by funds managed by Apollo in a deal that values the company at some $8.1bn.

Under the terms of the deal, Univar shareholders will receive $36.15 per share in cash, representing a 20.6 per cent premium to the closing stock price on 22 November.

The transaction also includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

“We are pleased to have reached this agreement with Apollo, which will provide

forward and achieves our goal of maximising value for Univar Solutions shareholders.”

That review had also led Univar to explore other options, including an unspecified arrangement with Brenntag, which was ultimately rejected by the Board.

David Jukes, president/CEO of Univar Solutions, adds: “Over the last three years, we have transformed the company, putting the customer at the centre of all we do, which has solidified our position as a leading valueadded service and solution provider. This

WHAT IT MEANS FOR THE MONEY News of the planned transaction arrived not long after Univar Solutions reported record financial results for 2022. Net income hit its highest ever figure, $545.3m, which was up 18.4 per cent compared to 2021, and adjusted EBITDA also reached a new record, rising 31.1 per cent to $1.05bn.

“In 2022 our organisation reached highwater marks in our financial results, customer satisfaction, employee engagement, and safety,” says David Jukes. “We believe our operating agility and deep industry expertise, coupled with our service model that puts the customer at the centre of all we do, is driving outstanding results. And we believe that our balanced capital allocation strategy, anchored to meaningful capital returns to shareholders, will enhance long-term shareholder value.”

That performance was achieved despite what was a relatively weak fourth quarter, with adjusted EBITDA falling in the US, Canada and EMEA divisions and rising only in Latin America, where it was boosted by recent

immediate and certain cash value for Univar Solutions shareholders,” says Chris Pappas, chairman of the Univar Solutions Board of Directors. “The Board’s decision follows a comprehensive review of value creation opportunities for Univar Solutions. We are confident this transaction is the right path

transaction reflects the success of our strategy and delivers substantial value to our shareholders. In Apollo, we are pleased to gain a partner to support continued investment in our portfolio and I look forward to working closely with their team as we grow Univar Solutions and serve our key suppliers

acquisitions and operating efficiencies. Univar said initially that it expects adjusted EBITDA for 2023 to be in the $900m to $930m range, down on last year, though the deal with Apollo is now likely to affect its consolidated results in terms of debt and taxation. www.univarsolutions.com

DONE DEAL ACQUISITION • UNIVAR SOLUTIONS HAS FOUND ITSELF A NEW HOME UNDER THE CARE OF INVESTMENT FUND MANAGER APOLLO, WHICH IS PAYING MORE THAN $8BN FOR THE DISTRIBUTOR

HCB MONTHLY | APRIL 2023

CHEMICAL DISTRIBUTION 31

HANDOVERS AND TAKEOVERS SUCCESSION • IMCD HAS FIRMED UP ITS LEADERSHIP FUTURE WHILE ALSO CONTINUING ON ITS PATH OF GROWTH THROUGH SELECTIVE ACQUISITIONS

THE SUPERVISORY BOARD of leading international chemical distributor IMCD Group has nominated Valerie Diele-Braun to take over the role of CEO from January 2024, replacing Piet van der Slikke, who earlier announced his intention to retire. Diele-Braun has been a member of IMCD’s Supervisory Board since June 2020 and is currently CEO of CABB Group, a leading global fine chemicals and life science manufacturing company.

The appointment is subject to the approval of shareholders at the company’s AGM on 26 April; once approval has been given, DieleBraun will step down from the Supervisory

 IMCD GROUP HAS LINED UP VALERIE DIELE-BRAUN TO TAKE OVER AS CEO NEXT YEAR

Board and join the Management Board on 1 October. Van der Slikke will remain with the company in an advisory role until 1 April 2024.

“I’m delighted to welcome Valerie to our Management Board,” says van der Slikke.

“Thanks to her role in the Supervisory Board, we have been able to work together in the last three years, in which she came across as an inspiring colleague with a catching mix of energy, experience and personality. I am looking forward to a smooth hand-over, supporting her to lead IMCD in its ambition for sustainable growth.”

Janus Smalbraak, chair of the Supervisory Board, adds: “Valerie brings a wealth of experience in our sector, leading with an international view and mindset. She has a track record of driving long-term business growth. While managing commercial as well

as financial performance, Valerie has a keen eye for the sustainability requirements in the industry. Her nomination is the outcome of a thorough succession process. With Valerie we have found an excellent candidate to ensure the continuation of IMCD’s strong management, driving the business in the future ahead.”

CONTINUED EXPANSION IMCD Group has also recently announced two very different acquisitions. IMCD South Africa has agreed to acquire CPS Chemical Oil-Tech, a distributor of raw materials to the petroleum, additive, grease manufacturing and related segments. CPS is described as an asset-light operator, its eight employees generating revenues of some €12m in the financial year to end February 2022.

“Joining forces with CPS Oil-Tech will enable IMCD South Africa to offer its customers an increased product offering, through the valued strategic principals that CPS Oil-Tech already represents,” says Ryan Harrison, managing director of IMCD South Africa. “Furthermore, the business unit will become stronger due to the increased expertise and technical knowledge of its staff supporting our continuous efforts and ambitions to further expand within the Sub-Saharan Africa region.”

The deal, which is subject to customary closing conditions and regulatory approval, is expected to close in the second quarter.

IMCD UK has acquired Orange Chemicals, a distributor of performance chemicals throughout the UK and Ireland. Orange Chemicals was founded in 1976 and is based in Winchester; last year it generated revenues of some €30m.

“Orange Chemicals brings a highly complementary portfolio of suppliers, products and customers, in addition to excellent industry relationships, expertise and a proven track record of steady growth.

Joining forces with Orange Chemicals will enable IMCD UK to expand our customer offering and consequently accelerate our growth ambitions throughout the UK and Ireland,” says Paul Hanbury, managing director of IMCD UK. www.imcdgroup.com

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GET READY TO WIN FINANCIALS • BRENNTAG ACHIEVED RECORD RESULTS LAST YEAR, WITH ITS CORPORATE STRATEGY DELIVERING AHEAD OF EXPECTATIONS. THIS YEAR PROMISES TO BE TOUGHER BUT HAS STARTED WELL

by the end of 2022 it had generated additional annualised EBITDA of €249m compared to 2019, ahead of the €220m originally planned for 2023. Brenntag is now moving onto its second transformational phase, ‘Strategy to Win’, which will further sharpen the differentiated profiles of its two divisions and accelerate growth exceeding market growth.

“Brenntag presents a resilient service and distribution platform with high geographical and operational diversification and a strong track record of compounding growth.

Brenntag has proven to be the undisputed and resilient leader in an attractively growing and highly fragmented, indispensable market,” Kohlpaintner adds. “Our ‘Strategy to Win’ defines how to further sharpen the profiles of our global divisions with distinct strategies and clear differentiated steering, making the two divisions more and more independent from each other while drawing the benefits of having very efficient standardised and harmonised business services. This will lead to accelerated and sustained growth above the market average and increasing margins in both divisions.

“We are also building a comprehensive digital and data architecture to better serve our global customer base and achieve the next level of operational efficiency, growth, and excellence. Brenntag will play a crucial role in the ecosystem of sustainable chemicals and ingredients distribution, globally,” Kohlpaintner says.

BRENNTAG HAS REPORTED what it calls “excellent results” for 2022, with gross profit up 20 per cent at €4.32bn and operating EBITDA up 27 per cent to a new record high of €1.81bn.

Both divisions contributed strongly, with

adverse and volatile circumstances,” says CEO Christian Kohlpaintner. “Our Brenntag colleagues around the world made these remarkable results possible while delivering in parallel on our ‘Project Brenntag’ targets

GOING FOR GROWTH In addition to the strong organic growth and the successful Project Brenntag execution in 2022, Brenntag also pushed ahead with four successful acquisitions to strengthen its product and service portfolio and its presence in key focus industries and geographies. The completed transactions had a cumulative enterprise value of €184m. It has allowed a range of €400m to €500m for merger and

operating EBITDA for Brenntag Specialties rising 32 per cent to €780m and for Brenntag Essentials being 28 per cent higher at €1.15bn.

“Our excellent operational and financial results demonstrate the resilience of Brenntag and its business model as well as our ability to act as a reliable partner under

and developing our ‘Strategy to Win’ to exceed market growth. We can be proud of these collective achievements, and we are on the right path to shape the future of our industry.”

Project Brenntag, the first stage of Brenntag’s transformation journey, has exceeded targets one year ahead of schedule;

acquisition activities this year.

In the near term, Brenntag expects the operating environment to remain tough through the rest of this year. “The overall geopolitical, macroeconomic, and operational conditions will remain challenging and create continued uncertainty about growth

HCB MONTHLY | APRIL 2023

CHEMICAL DISTRIBUTION 33

expectations of the global economy.

Nevertheless, Brenntag expects a gradual normalization of the situation in the course of the year,” the company states. As a result, it expects operating EBITDA for 2023 to be in the range of €1.6bn to €1.8bn.

That figure includes contributions from acquisitions already closed, which include a state-of-the-art site in Pomona, South Africa that is focused on water treatment solutions.

The purchase will allow Brenntag Specialties to broaden its product portfolio, further strengthen its regional presence and know-how, and better serve the needs of its customers.

“We are very excited to be expanding our presence in South Africa with this new facility,” says Henri Nejade, COO of Brenntag Specialties. “Water treatment, especially the technical knowledge our team gains and can pass on to customers, in particular on cooling

and boiler water solutions, is a great expansion of our EMEA portfolio. We believe that these additional resources will allow us to better support our customers and drive additional business in the region.”

BIGGER IN CHINA A rather more important development has been brewing in China, where Brenntag has now opened a new facility in Zhangjiagang, some 150 km from Shanghai in the Yangzijiang Chemical Industrial Park. The new site expands Brenntag’s operations in the country, which now encompass four full-service locations, but also reduces the current complexity of moving products between several external warehouses, thus helping optimise chemical supply chains.

The new Zhangjiagang facility covers some 62,000 m2 and offers 6,500 m2 of Class A warehouse space, another 1,400 m2 of space

for Class C products, as well as 20 storage tanks of various sizes, workshops and an on-site laboratory for blending, testing and repackaging.

“Many of our customers and suppliers in China are developing a ‘China for China’ and ‘China for Asia’ strategy which includes establishing a more complete supply chain locally, enhance manufacturing capabilities in the country, and move research and development capabilities to China. With our new site operational we will be much better able to serve these local partners on a larger scale and with greater efficiency,” says Liu Hua, president of Brenntag China & Hong Kong.

Brenntag has more than 2,000 customers in the region, which it will now be able to provide with various tailor-made services such as drumming, repackaging, relabelling, diluting, mixing and blending of dangerous chemicals. corporate.brenntag.com

34

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CHEMICAL DISTRIBUTION 35

facing challenges as a result of the Ukraine/ Russia conflict.

PERKING UP? TRENDS • BUSINESS CONDITIONS FOR UK CHEMICAL DISTRIBUTORS AND TRADERS ARE SUDDENLY LOOKING SOMEWHAT BRIGHTER, IF CBA’S LATEST QUARTERLY TREND SURVEY IS CORRECT IT HAS BEEN a strange time over the past three years and, for those in the chemical supply chain, there have been some unusual and unanticipated challenges to be faced. In the UK, the Chemical Business Association (CBA) undertakes a quarterly survey of its members and, over recent years, those have returned consistently downbeat opinions.

However, the latest quarterly survey, to which 32 CBA member companies responded, revealed what looks like it might be light at the end of the tunnel, with orderbooks, current sales and margins all showing some improvement. Despite supply chain constraints remaining a concern, the business

outlook for the next three months is beginning to look a little more positive.

Although matters have generally improved since the previous quarter, 46 per cent of respondents said they are still experiencing rapidly escalating shipping costs, with around 11 per cent revealing they have experienced shortages of shipping containers. These numbers are, however, something of an improvement on the previous quarter, when the figures were 62 and 36 per cent, respectively.

Approximately 30 per cent of companies reported issues with haulage and capacity in both the UK and the EU; almost half of respondents stated that they are still

TURNING A CORNER In addition to supply chain issues, the survey asked companies to provide information on their order books, sales, sales margins, and employment. Members were asked if their order books were better, worse, or the same as the previous three months.

The latest survey showed an order book balance of +34 per cent – a substantial increase from the +15 per cent reported in September 2022. Sales volumes have also strengthened, from +18 per cent last time to +31 per cent now, with the immediate forecast also looking positive. Sales margins have improved slightly as well, showing a positive balance of +22 per cent compared to +12 per cent in the previous quarter. Near-term expectations are for some weakening, returning to +13 per cent.

Employment and training prospects showed a sharp improvement to +47 per cent (+38 per cent in the third quarter of 2022), while member companies also indicated a positive investment in training, with current training levels at +28 per cent and future training levels projected to reach +42 per cent.

Tim Doggett, CBA’s chief executive, says of the figures: “The survey does appear to indicate the outlook is improving, albeit there is hesitancy due to macro-economic factors such as the Ukraine war. The chemical supply chain industry has always been resilient and although many of our members are still facing serious supply chain constraints, the impact of these disruptions has lessened in recent months.”

CBA has been the voice of the chemical supply chain industry in the UK for the past 100 years and represents distributors, manufacturers, traders, warehouse operators, logistics and transport companies, many of whom are the main industry interface providing products and services to thousands of downstream chemical users.

CBA’s Supply Chain Trends Survey represents the independent chemical supply chain. It has been published since 2003 and aims to provide a snapshot of short-term trends in the UK’s chemical supply chain. www.chemical.org.uk

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

CALDIC HEADS FOR THE TOP

Caldic has formally merged with Asia-Pacific chemical distributor major Connell, pushing the group into the top league of global operators, with consolidated annual revenues in the region of €3bn and some 3,500 employees.

Advent International, financial sponsor of Caldic, and Connell’s owner Wilbur-Ellis signed an agreement to combine the two companies in October 2022.

Alexander Wessels, Caldic Group CEO, says: “The global scale of our business will unlock multiple opportunities to create value with our business partners. Today’s worldwide reach will make our offering of unique value-added services and products more widely accessible to the food & nutrition, (bio)pharma, personal care and industrial formulation markets, which will fuel new business development potential across the supply chain. Our ambition is to redefine the parameters of added value in the ingredients and specialty chemicals distribution sector, offering our customers a new standard in customised solutions.”

HCB MONTHLY | APRIL 2023

Azita Owlia, named as CEO of Connell Caldic APAC, adds: “Our customers are increasingly demanding customised solutions and extended supply chain services. We are committed to leverage the complementarity and synergies between both companies’ value-added product portfolio and broader manufacturing and distribution facilities, to the benefit of our principals and customers.

Asia-Pacific is a high-growth region with tremendous potential and the joint expertise and capabilities will allow us to help our current and new customers to seize such opportunities. Together we can make a much bigger positive impact in the life sciences and material sciences markets.” www.caldic.com THREE IN ONE AT STOCKMEIER

Stockmeier Chemie has bundled its German subsidiaries into one company, as from 1 March. Stockmeier Chemie Dillenburg GmbH and Stockmeier Chemie Eilenburg GmbH have been merged into Stockmeier Chemie

GmbH, based in Bielefeld, as part of a project named ‘Stockmeier One’.

“Supply bottlenecks, extreme price volatility, broken supply chains and strong uncertainty have characterised the past years,” notes Joachim Schlinkert, chairman of the management board of Stockmeier Chemie.

“The complex correlations and interactions in the chemical industry and supply chains demand a great deal of knowledge from our team, as well as clear product and market strategies for our partners. With Stockmeier One, we have created structures to find strategic answers to the challenges of the current times and to align the company for the future.”

The merger is expected to harmonise the group’s warehouse and logistics network, as well as its product and service offerings; in addition, overarching requirements such as quality management, regulation, documentation and digitalisation will be combined and thus become more efficient.

Jörg Ruffing, vice-chairman of the new company, is looking forward with confidence: “I am proud to lead a dynamic, agile and diverse team. We rely on both young employees and experience in our management team. We benefit from the immense knowledge in the heads of our team. With the new structures, we want to use the strengths and experience of our employees even more comprehensively in order to recognise trends in the market at an early stage and to be sustainably competitive.” www.stockmeier.com UK DEAL FOR SAFIC-ALCAN

Safic-Alcan has acquired 4Plas Ltd, a distributor of engineered plastics in the UK. 4Plas was established in 2003 and offers an extensive range of engineering thermoplastics, masterbatches, colour and custom compounds and high-performance materials, mainly to the automotive, building, telecoms, engineering and

CHEMICAL DISTRIBUTION 37

electrical industries in the UK and Europe. In 2021 it achieved sales of £13.5m.

Speaking about the deal, Barry McDonnell, managing director of Safic-Alcan UK, says: “This is our fifth acquisition in the UK in the past 15 years, so we are well-prepared to welcome the 4PLAS team. This acquisition will further strengthen our plastic activities, which currently account for 5 per cent of our turnover.” www.safic-alcan.com MCCANN JOINS AIREDALE

Airedale Group has acquired McCann Chemicals, including its subsidiaries Hunter Chemicals and McCann Food & Nutrition, as part of its growth and diversification strategy.

“McCann Chemicals holds similar values to us and their focus on excellent customer service reflects our own ethos. They have built a strong reputation for quality products which complements our portfolio perfectly and a history of sourcing commodity and specialty products from suppliers all over the world,” says Chris Chadwick, managing director of Airedale

Group. “This is a fantastic way to celebrate our 50th anniversary and we’re excited that McCann Chemicals will be joining Airedale Group as we continue our journey to grow, diversify and cement our position as a leading force in the UK chemical industry.”

“This development will provide a great platform for continued organic growth for both companies, introducing access to new assets, infrastructure and capabilities and we’re excited to be part of Airedale Group’s ambitious plans for the future,” adds Les Horrobin, managing director of McCann Chemicals.

The two businesses will continue to operate independently under the Airedale Group brand. airedale-group.com NORDMANN NEW IN BENELUX

Nordmann has formed a new subsidiary in the Netherlands, Nordmann BeNeLux, based in Capelle aan den IJssel. Jost E Laumeyer, global sales director, plastics at Nordmann since 2018, has been appointed to head the new unit as managing director. “Our goal is to intensify the already existing business relationships, but also

to develop new partnerships,” he says. “This investment underlines our Nordmann approach of ‘Global presence, local best’. I am looking forward to representing Nordmann in the BeNeLux region together with my team and to distribute products from well-known manufacturers here, as well as to developing new product lines.”

Dr Gerd Bergmann, managing director of Nordmann, explains more: “The foundation of our own subsidiary gives us even better access to this important market in Europe, where we see great potential for the future. This provides our suppliers with expanded sales opportunities and our customers with local service and advice throughout the BeNeLux region.” www.nordmann.global ASIA BOOST FOR DKSH

DKSH achieved a 1.9 per cent increase in sales last year, reaching CFr 11.32bn, with operating profit rising 12.2 per cent to CFr 319.2m. All Business Units recorded improved performance.

In addition, DKSH closed ten acquisitions, grew eCommerce sales double digit, and progressed well in its sustainability agenda.

“Our track record over the years and strong full-year 2022 results once again prove the resilience of our business model as well as the successful execution of our well-defined strategy,” says CEO Stefan P Butz.

“Throughout the last three years, which were marked by the pandemic, we increased EBIT by more than a third at constant exchange rates and improved the EBIT margin by more than 50 basis points. We remained the trusted partner for our clients and customers and continued to fulfil our purpose of enriching people’s lives.”

DKSH is optimistic of further growth in EBIT this year, assuming economic growth in the Asia-Pacific region. www.dksh.com

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staples, for example, a FEFCO (0426) pizza-box style would not be acceptable unless all the joins were taped.

SMALL BUT SENSITIVE LQ • KEVIN DOUGHERTY, DIRECTOR OF OPERATIONS AT AIR SEA CONTAINERS, DISCUSSES THE IMPORTANCE OF UNDERSTANDING PACKAGING REQUIREMENTS WHEN SHIPPING LIMITED QUANTITIES TRANSPORT REGULATIONS ALLOW for small amounts of dangerous goods to be transported as ‘Limited Quantities’ (LQ) in packaging that has not been UN-approved. While this has a number of advantages for shippers, it is not the case that any old packaging can be used.

Limited quantity packaging must consist of inner packaging packed inside suitable outer packaging, the most common type being a 4G fibreboard box. However, the packaging requirements differ according to the mode of transport and, while the construction requirements are consistent, the method to assess capability is not.

AIR TRANSPORT The air mode follows the same principles as road and sea but goes further with the need to conduct packaging performance tests. The packaging must be tested as prepared for transport; it must be able to withstand a 1.2-m drop test onto a rigid, non-resilient, flat, horizontal surface, in a position most likely to cause the most damage. The outer package must not show any damage likely to affect safety during transport and must not have any leakage from the inner packaging.

In addition, a stack test must be performed to determine the package is capable of withstanding a force applied to the top surface for a duration of 24 hours, equivalent to the weight of identical packages if stacked to a height of 3 m including the test sample.

Packaging that has already been used must be inspected and be in such condition that it will protect the contents and perform containment functions as efficiently as new packaging.

ROAD AND SEA (ADR\IMDG) Dangerous goods in Limited Quantities are not unregulated; they are still subject to the full

Of particular note, 4.1.1.1 states that dangerous goods shall be packed in good quality packaging, strong enough to withstand normal transport conditions, closed in accordance with information provided by the manufacturer; the provisions apply to new and reused packaging.

3.4.1(f) Part 6: Construction requirements of 6.1.4, for fibreboard boxes 6.1.4.12.

6.1.4.12.1 refers to the need for strong and good quality double-faced corrugated fibreboard (single or multiwall) and should be appropriate to the capacity of the box and its use.

There is also a need to conduct a water resistance test by the Cobb method which measures water absorption to determine that it is no greater than 155 g/m2.

The box should have proper bending

CONCLUSION Transporting limited quantities may present a lower risk and there are advantages for the shipper but packaging still has to meet relevant provisions. While drop and stack tests are only a requirement under air regulations, it would be considered good practice to carry these out also when transporting by road and sea to evaluate performance capability.

When using Limited Quantity packaging you should always consider: • Construction; check the construction requirements of the packaging have been met.

• Capability: assess the capability of the packaging performance provided by the manufacturer • Consistency: ensure that controls are in

transport regulations except for certain provisions; in respect of packaging the following will still apply: 3.4.1(d) Part 4: General provisions for the packing of dangerous goods in packagings, including IBCs and large packagings, paragraphs 4.1.1.1, 4.1.1.2, 4.1.1.4 to 4.1.1.8.

qualities and slotted to permit easy assembly without cracking, surface breaks or undue bending and the corrugated fibreboard shall be firmly glued to the facings.

6.1.4.12.3 refers to the specification of the joins of the box which shall be taped, lapped and glued or lapped and glued with metal

place to document and monitor all materials used including assembly methods and the capability of the packaging.

Always consider the risks and seek professional expertise if you are unsure about the packaging requirements and regulations. www.airseadg.com

HCB MONTHLY | APRIL 2023

INDUSTRIAL PACKAGING 39

BLUE FOR YOU MANUFACTURING • MAUSER PACKAGING SOLUTIONS IS INCREASING CAPACITY FOR THE PRODUCTION OF PLASTICS DRUMS IN CHINA AND SOUTH AFRICA, WITH AN EYE ON SUSTAINABILITY MAUSER PACKAGING SOLUTIONS has opened a new manufacturing facility close to Shanghai, designed to increase production of plastics drums, including the Infinity Series that uses post-consumer recyclate in its construction. The new site, in the Haiyan Economic Development Zone, is 210 km away from Mauser’s existing plant in Jiangyin and close to the city of Ningbo and the Jinshan Chemical Zone of Shanghai, conveniently located to supply customers in the chemical, oil, paint, food and beverage and petrochemical markets.

“Mauser Packaging Solutions is proud to expand our presence in the Asia Pacific region. Our innovative and regional approach, coupled with our commitment to sustainability, is what makes us a leader in sustainable packaging solutions today and provides opportunities for us to be even stronger in the future,” says Michael Steubing, president of Mauser International Packaging Solutions.

The new production site, which will be manufacturing 230- and 250-litre plastics drums, meets the hygiene requirements of the

food industry and is also working towards ISO 9001 and 14000 certification.

“With the opening of a second production facility in China we are excited to take a meaningful step forward in expanding our product offerings and increasing capacity to support the Chinese market and multinational customers now and in the future,” says Ali Ozbudak, vice-president and head of Asia Pacific at Mauser.

THAT’S NOT ALL Mauser has also expanded its product range in South Africa with the addition of a new plastics drum line at its Durban plant.

The facility can now produce UN-certified, tight-head plastics drums in 210, 232 and 250 litre sizes for customers in the chemicals, lubricants, food and oil industries. Mauser says the investment has also allowed it to expand availability of its Infinity Series drums that contain recyclate produced in-house from used packagings collected through its Recover Syst-M. “Mauser Packaging Solutions is proud to expand our product offering in South Africa,” says Peter Lucht, general manager. “Our priority continues to be delivering innovative and sustainable solutions to our customers.

We value our partners in the region and look forward to better serving them with an expanded product portfolio.”

Mauser Packaging Solutions has also expanded its portfolio of screw-top plastic pails with the introduction of a resealable, quarter-turn, screw-top pail series. The design provides customers with an intuitive, easy open and close screw-on lid solution and is UN-certified for use with packing group II and III solids.

Mauser says the pails are idea for use in the pool chemical, water treatment, food, spill kit, and emergency supply industries.

The screw-on cover was designed for use with automated closing systems and is available with a tamper-evident feature to protect branded products. Moulded-in hand grips allow for easy handling, while a large billboard area on the pail allows brands to highlight marketing messaging, instructions, and restrictions. www.mauserpackaging.com

40

looking macro-economic environment, we are unable to determine the trajectory of product demand for the remainder of our fiscal year,” Greif says. As a result, it has only provided a low-end guidance for full-year adjusted EBITDA of $740m.

GREIF HAS REPORTED weakening results for its first fiscal quarter of 2023, which covers the three months to end January 2023, in the face of what it calls a “significant deterioration of product demand” over the latter half of 2022. Net sales fell from $1.56bn a year ago to $1.27bn, though a realised gain this time compared to an impairment charge taken in the prior year’s first quarter meant that operating profit more than doubled to $156.4m.

“I am very proud of our team’s execution in

demonstrated resiliency in rapidly adapting to these changing conditions while continuing to deliver on our Build to Last strategy and making meaningful progress towards our long-term strategic missions.”

In the Global Industrial Packaging division, net sales fell by just over 25 per cent to $705.8m, with more than one-third of that decline reflecting the disposal of the flexible products business; revenues were also impacted by negative foreign currency translations, lower volumes and weaker

UPS AND DOWNS Meanwhile, Greif has announced a definitive agreement to increase its current 9 per cent shareholding in Centurion Container, a leader in the North American intermediate bulk container (IBC) reconditioning industry, to an 80 per cent stake in an all-cash transaction for $145.0m, subject to customary closing conditions and regulatory clearances. “Greif has been a joint venture partner of Centurion since 2020 and is expanding our ownership as part of our ongoing commitment to grow in high margin, highly sustainable resin-based products,” the company says.

Greif has also rebranded its product circularity programme, which now goes under the name of ‘Life Cycle Services by Greif’. The move is part of Greif’s recently announced 2030 Sustainability Targets, which include a broader focus on advancing a circular economy, reducing greenhouse gas emissions, and championing diversity, equity, and inclusion initiatives. The new branding also aligns existing end-of-life services offers

by Greif’s industrial packaging and paper packaging businesses.

In the industrial packaging sphere, customers have long used the EarthMinded® network of partners across the US and EMEA for collection, cleaning, recycling and reconditioning services. This partnership will gradually roll out new Life Cycle Services by Greif labelling and communications as EarthMinded is retired. These established global partnerships collecting IBCs, large plastics drums, small plastics containers and steel drums for reconditioning or recycling provide a direct benefit to the company’s

first quarter 2023 despite multiple headwinds: destocking, lower customer demand and continued inflationary pressures,” says Ole Rosgaard, CEO of Greif. “The pace and severity of these headwinds progressed rapidly during the quarter and pressured results. Despite these challenges, our teams around the world

prices. Gross profit fell by 29 per cent to $125.3m, although this did benefit from lower raw material, transport, labour, utility and maintenance costs.

“Given the significant deterioration of product demand in the past two quarters and the degree of uncertainty in the forward

customers. Plastics are recycled for reuse in Greif’s EcoBalance® line of products which contain a percentage of recycled plastic, helping address the growing global plastic waste crisis by reducing or eliminating waste through circular solutions. www.greif.com

SMALL EXPECTATIONS RESULTS • GREIF REPORTS DETERIORATING DEMAND FOR ITS PACKAGING PRODUCTS IN THE LATTER HALF OF 2022, NOT LEAST FOR INDUSTRIAL PACKAGING, BUT IT IS PRESSING AHEAD WITH GROWTH PLANS

HCB MONTHLY | APRIL 2023

INDUSTRIAL PACKAGING 41

NEWS BULLETIN

INDUSTRIAL PACKAGING

Düsseldorf from 4 to 10 May, with a 650-m2 stand and large-scale LED technology, where it will present more than 20 new products and services for packaging and logistics. www.schuetz.net LC’S FIBCS FOR DRC

SEE WHERE YOU ARE WITH THIELMANN

Thielmann has joined the digitalisation process with the introduction of IBC Insight Technology, an internet of things-based solution to provide real-time information about the location and status of any intermediate bulk container (IBC) fitted with the correct equipment. The fully weather-proof sensors provide data on temperature, humidity, fill level and positioning, and worldwide geo-tagging gives shippers full transparency. Thielmann believes its new sensors are also the first to be able to measure the pressure inside an aseptic IBC without making contact with the product.

The result, Thielmann says, is maximum efficiency, quality and minimum manpower throughout the supply chain, which translates into a better bottom line. The all-in-one solution comprises hardware, software, connectivity, and a visualisation portal, powered by major telecom providers with the possibility to integrate the system with SAP and other ERP systems. www.thielmann.com/en/services/iot-solutionsfor-ibcs SCHÜTZ ON THE BOTTLE

Schütz Container Systems has installed a new six-layer extrusion blow-moulding line at its

plant in St Joseph, Missouri. The investment will allow the facility to produce inner bottles for intermediate bulk containers (IBCs) for a wide range of applications, while also improving supply security in North America.

“The demand for environmentally friendly packaging solutions is steadily increasing in the US,” the company states. “Schütz Container Systems meets this rise in demand with a tight manufacturing network consisting of 12 production sites. By continuously modernising and expanding our equipment, we are significantly increasing the flexibility of our packaging production.”

The new line will also allow Schütz to expand its portfolio of locally produced containers to include the Ecobulk MX 560, a 150-gal low-profile IBC designed for users with lower turnover or for storage of highly concentrated products. In addition, it will also provide inner bottles designed specifically for use in sensitive applications, such as in EX zones or in the food industry.

Expansion of the St Joseph plant follows quickly on from the installation of a new production line for open-head steel drums at Schütz’s Pasadena plant in Texas at the end of 2022.

Schütz is preparing a major presence at the triennial Interpack show, which takes place in

LC Packaging says it is to enter into a partnership with Buenassa, a company based in the Democratic Republic of the Congo (DRC) that is dedicated to fostering responsible mining practices throughout the supply chain, and Shankar Packaging, one of the leading producers of flexible intermediate bulk containers (FIBCs) in India. Initially the partnership will focus on the distribution and production of FIBCs in DRC. “There is clearly an increasing demand for FIBCs in the DRC and specifically in the Katanga region,” LC Packaging comments.

“The DRC government supports the local supply of mining-related equipment, expertise and services. LC Packaging wishes to respond to this demand which requires a reliable partner in the DRC. It also fits with the vision of the company to support local entrepreneurship and the development of local communities in a responsible and sustainable way.”

Once the partnership is up and running and FIBCs produced in Asia and South Africa are being supplied to large-scale, artisanal and small-scale mines in DRC, the three partners intend to look to set up a local production facility in Kolwezi in Lualaba province.

“LC Packaging has been supplying bulk bags to numerous DRC mining entities over the past 12 years,” comments Richard Green, regional director for southern Africa at LC Packaging. “We are confident that the intended partnership for distribution and local production of FIBCs between the three of us will strengthen our position in the DRC and will contribute to the further development of the Lualaba region.” www.lcpackaging.com

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COURSES & CONFERENCES 43

CONFERENCE DIARY APRIL

Annual forum and expo of the Council on Safe Transportation of Hazardous Articles

NISTM

www.costha.com

APRIL 12-14, ORLANDO

Association www.gpcasupplychain.com Bulk Tanker Day

National Institute for Storage Tank Management’s 25th annual international aboveground storage tank conference and trade show

Flame

MAY 17, BRISBANE

MAY 2-4, AMSTERDAM/VIRTUAL

14th annual road tanker event hosted by the National Bulk Tanker Association

www.nistm.org

https://informaconnect.com/flame-conference/

AFPM Security Conference

Interpack

MAY 18-20, NAIROBI

APRIL 13-14, SAN ANTONIO

MAY 4-10, DÜSSELDORF

Conference on security at fuel refining and petrochemical plants

Major triennial packaging show

Tenth annual exhibition for the upstream and processing sectors in east Africa

www.interpack.com

www.expogr.com/kenyaoil/

Asia Pacific LNG & Gas Summit

NTTC Annual Conference

28th annual conference on natural gas and LNG in Europe

www.nbta.com.au/bulktankerday/ Oil & Gas Africa 2023

www.afpm.org/events/security CV Show

MAY 9-11, BALI

MAY 20-23, BOSTON

APRIL 18-20, BIRMINGHAM

Annual commercial vehicle exhibition

13th annual meeting for LNG buyers and sellers

Annual meeting of the National Tank Truck Carriers

https://cvshow.com/

www.worldlngasia.com

https://tanktruck.org/Public/Events/Home-Pages/

CVSA Workshop

Transport Logistic

Annual-Conference---Exhibits.aspx APRIL 23-27, MEMPHIS

MAY 9-12, MUNICH

Meeting for industry, regulators and enforcers to improve commercial vehicle safety

Biennial exhibition for logistics, IT and supply chain management

www.cvsa.org/events/cvsa-workshop/

www.transportlogistic.de/en/

42nd annual operating conference and trade show of the International Liquid Terminals Association

International Chemical & Product Tanker

UKIFDA Show 2023

www.ilta.org

Conference

MAY 10, COVENTRY

APRIL 25-26, LONDON

Annual exhibition and conference for the fuel distribution sector in the UK and Ireland

Intertanko Annual Tanker Event

Conference on tanker markets and trade www.rivieramm.com/events/chemical-and-

https://ukifda.org/ukifda-events/

25th annual meeting of the International Association of Independent Tanker Operators

product-tanker-conference-2023

ILTA MAY 22-24, HOUSTON

MAY 22-25, DUBAI

ChemUK 2023

www.intertanko.com/events-panels/annual-tanker-

IATA World Cargo Symposium

MAY 10-11, BIRMINGHAM

event

APRIL 25-27, ISTANBUL

Annual global conference on air cargo

Supply chain expo and conference for the UK chemical industry

Chemspec Europe 2023

www.iata.org/en/events/wcs/

www.chemicalukexpo.com

MAY 24-25, BASEL

GPCA Plastics Conference

International exhibition for fine and speciality chemicals

APRIL 25-27, LYON

MAY 14-15, RIYADH

www.chemspeceurope.com

Conference on the end-to-end

12th GPCA conference on the polymers sector

pharmaceutical supply chain

and recycling

https://logipharmaeu.wbresearch.com

https://gpcaplastics.com/

MAY 24-25, STRATFORD-UPON-AVON

MAY

GPCA Supply Chain Conference

NCEC’s annual conference for those involved in hazmat response, incident management and crisis management

COSTHA 2023

14th annual meeting of logistics professionals in the Gulf Petrochemicals and Chemicals

LogiPharma

MAY 17-18, RIYADH APRIL 30-MAY 2, FRISCO, TX/ONLINE

Hazmat 2023

https://the-ncec.com/en/emergency-response/ hazmat-event

WWW.HCBLIVE.COM

44

SAFETY

INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

Vehicle Type

Details

Source

24/2/23 Pietermaritzburg, road tanker paraffin KZN, South Africa

Fire broke out on tank truck with paraffin on N3 in Ashburton district; road closed in both directions as heavy smoke from fire obscured visibility; cause of fire not known

Sowetan Live

25/2/23 Truckee Meadows, road tanker Nevada, US

diesel, gasoline

Double tank truck ran off I-80, rolled over; some leak of fuel from both trailers; responders built dams around wreck to prevent spill reaching nearby river; cause of accident, in icy conditions, not known

Reno Gazette

25/2/23 nr Cholame, truck motor oil California, US

Semi-truck ran off Highway 41, crashed on side of road; CHP found substance leaking from truck, which was identified by hazmat crew as motor oil; several pallets of packaged motor oil had to be removed

KSBY

28/2/23 Manatee county, freight train propane Florida, US

Six cars of Seminole Gulf train, including two tank cars with propane, derailed; no leak of propane; responders decided to right propane tanks without transferring contents; rail damaged by derailment

ABC News

4/3/23

Tank truck carrying unspecified flammable liquid crashed on US 15, caught fire; driver killed; flames spread to nearby homes, vehicles; one home badly damaged

AP

Responders were called to leaking semi-truck at TA Truck Stop, identified leak as peroxyacetic acid; truck stop evacuated, closed during response; two people needed minor medical care; driver assisting police

WVLT

Frederick, road tanker Maryland, US

Substance

flammable liquid

16/3/23 Lenoir City, truck acid Tennessee, US

MARINE/INLAND WATERWAY INCIDENTS Date

Location

4/2/23

4/2/23

Details

Source

Lagos, Halima Nigeria

Six people, presumed to be crew members, died aboard tanker (possibly fishing vessel?) during cleaning of tanks; presumably killed by toxic or asphyxiant gases (which might be caused by rotting fish)

FleetMon

off Vung Tau, Ah Shin cars Vietnam

Car carrier with 4,530 cars from Incheon to Singapore suffered fire on cargo deck; available CO2 firefighting unable to cope; fire raged for days; vessel developed list; no injuries to crew reported

FleetMon

11/2/23 off Sumatra, Aashi asphalt Indonesia

Gabon-flagged asphalt carrier (5,000 dwt, 2008) ran aground on beach on Nias island, partially sank and began leaking 1,900-tonne asphalt cargo; tar balls washed up on nearby beaches; ship’s condition criticised

Maritime Executive

25/2/23 Korsakov, Sakhalin, Russia

Containership (700 teu, 2008) had to be evacuated due to leak of methane on arrival in port; leak found to be coming from container with 20 tonnes methane in several cylinders, one with damaged valve

Maritime Executive

25/2/23 Hernando, factory acid Mississippi, US

Fire broke out at Schulz Xtruded Products plant; fire was contained but led to leak of hydrofluoric acid and degreaser into nearby creek; dam constructed to contain spilt chemical, which was treated with soda ash

Comm’l Appeal

28/2/23 off Tablas Island, Philippines

Product tanker with 800 m3 fuel oil from Limay to Iloilo sank after engines overheated in bad weather; widespread pollution, health impacts and disruption to fishing; tanker did not have licence to operate

Sun Star

nr Winfield, barges ammonia Missouri, US

Two barges with large volumes of anhydrous ammonia broke free on Mississippi River; all residents within one mile evacuated in case of release but ACE managed to control barges without incident

KMOV

13/3/23 Gulf of Siam, Benchamas 2 crude oil Thailand

Explosion during maintenance aboard Chevron-operated FSO with 400,000 bbl oil; one contractor killed in blast; non-essential personnel evacuated; vessel taking on water but no pollution reported

Maritime Executive

Details

Source

Fire broke out after snow plough accidentally struck filling hose at LPG filling station, causing leak that was ignited by damaged wiring; crews played water on burning tank, allowed gas to burn off

Morning Sentinel

28/2/23 Tuapse, oil terminal explosives Krasnodar, Russia

Fire broke out at Rosneft oil facility, reportedly after attack by two drones that dropped explosives onto site, missing storage tanks; fire did not cause significant damage; no official comment

RIA Novosti

3/3/23

Jakarta, fuel depot fuel Indonesia

Fire broke out after pipeline rupture at Pertamina’s Plumpang fuel depot; fire spread quickly to nearby houses, killing 13 people; some 50 others injured; government ordered Pertamina to conduct operational review

Al Jazeera

3/3/23

Emohua, pipeline crude oil Rivers, Nigeria

Explosion, fire on Shell’s trunkline killed at least 12 people, with locals saying others were missing; several vehicles near site of rupture were burned out; Shell and government authorities to investigate cause

Reuters

6/3/23

Tangi, house fireworks Odisha, India

At least four people killed, four critically injured in explosion in house where firecrackers were being made illegally ahead of Holi festival; house completely destroyed in blast

PTI

3/3/23

Vessel

Substance

Fesco methane Tatarstan

Princess fuel oil Empress

MISCELLANEOUS INCIDENTS Date

Location

24/2/23 Waterville, Maine, US

HCB MONTHLY | APRIL 2023

Plant Type

Substance

LPG pump propane station

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SAFETY 45

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USE WHAT YOU’VE GOT

THERE IS A lot of information out there about safety, not least in the maritime world. But getting that information out to those who need it, or making sense of disparate information flows, has proved difficult. However, the recent spate of containership fires – often but not always involving dangerous goods, whether properly declared, mis-declared or undeclared – has concentrated the minds of those with ownership of information and the pathways to getting to it.

In order to bring all that together, five organisations signed a memorandum of understanding (MoU) on 16 March, to create a framework for cooperation to allow each group to benefit from the others’ activities in their respective areas of expertise. The five groups involved are:

The organisations have come together under this initiative with the intention to concentrate on improving safety during the transport and handling of goods – especially those that have the potential to cause damage to workers, the public, the wider environment and the goods themselves – in every corner of the globe.

WHAT CAN BE DONE “This unique grouping of industry leaders has the potential to coordinate data, research and best practices across the broad spectrum of the international movement of cargo,” says John Beckett, chair of ICHCA. “A key goal is to create an awareness throughout the freight industry, amongst operators, regulators and policy makers as to practical and effective

knowledge, experience and database resource of the signatories to this MoU, managed in a coordinated manner, have massive potential to leverage change in safety processes. We will be publishing guidance on the treatment of lithium-ion batteries, among other cargoes, in the near future.”

In the search for practical changes that will alleviate such dangers, the MoU calls for coordinated efforts both on regional and international issues of common concern and engagement with relevant regulatory bodies, including the International Maritime Organisation (IMO) and other appropriate UN agencies.

Other stated aims include working together to initiate innovative worldwide surveys and studies that can assist with the furtherance of these organisations on behalf of their members and associates. There will also be sharing of research findings and publications to strengthen information exchange, while avoiding duplication of effort by pooling resources.

David Watkins of CHIRP says the organisation is delighted to be part of the initiative. “CHIRP Maritime will work with our partners to collect information on operational cargo-related accidents and incidents and share learning with the wider maritime

• Cargo Incident Notification System (CINS) • Confidential Human Factors Incident Reporting Programme (CHIRP) • Container Owners Association (COA) • International Cargo Handling Coordination Association (ICHCA) • Ship Message Design Group (SMDG)

measures to improve safety.”

A fundamental part of the group’s output will be publications, an aim that is close to the heart of Dirk Van de Velde, deputy chair of CINS, who says: “As an example of where immediate attention is required, container ship fires are high on the list. The combined

community to promote best practices in the supply chain and reduce the number of cargo incidents on board ships and terminals.”

HCB looks forward to bringing readers news of safety-related projects undertaken as part of the initiative in due course. www.ichca.com

MARITIME • A GROUP OF SAFETY-RELATED ORGANISATIONS HAVE AGREED TO COLLABORATE MORE CLOSELY TO LEVERAGE THEIR KNOWLEDGE AND DATA TO HELP IMPROVE SAFETY OF CARGOES AT SEA

HCB MONTHLY | APRIL 2023

SAFETY 47

KEEP THE SEAS CLEAN SALVAGE • ISU’S TALLY OF POLLUTION PREVENTION WORK CARRIED OUT BY SALVORS LAST YEAR INDICATES THERE WERE FEWER INCIDENTS BUT A LARGER VOLUME OF OIL AND CHEMICALS INVOLVED MEMBERS OF THE International Salvage Union (ISU) provided 186 services to vessels carrying 2.6m tonnes of potentially polluting cargo and fuel in 2022, according to the Union’s annual survey of its members. That compares to 226 services provided in 2021, which involved a similar total of cargo and fuel, though within that there are some significant changes.

“The number of services fell last year and each year there can be significant variations of the quantities of pollutants in each category.

But, overall, the amount of pollutants has stayed consistent,” says Capt Nicholas Sloane,

president of ISU. “The number of containers is lower than last year but, after bulk cargo, still represents the most significant category with our members providing services to vessels carrying 50,000 TEU amounting to some 747,270 tonnes of cargo. It compares with 141,000 tonnes of crude oil, confirming the shift over the past decades as oil trades have become safer.”

There are other shifts going on, notably containers stuffed with harmful or dangerous goods, including plastics pellets (nurdles), which, Capt Sloane says, “represent one of the biggest threats to the marine environment.

They are potentially very damaging and, with the added issue of misdeclaration of contents, dangerous to deal with.”

Indeed, as environmental, social and governance (ESG) issues become more significant across the maritime industry, salvors need to be similarly aware. “We are all now so much more aware of, and careful about, the environment. But we all need shipping and incidents like the Suez Canal blockage demonstrated that reliance,” Capt Sloane adds. “The shipping and insurance industries recognise their responsibilities and the importance of maintaining their ‘licence to operate’ and the availability of emergency response services is a critical part of meeting those responsibilities.”

NUMBERS IN DETAIL The volume of crude oil involved in salvage operations in 2022 was just over 140,000 tonnes, a 36 per cent increase against 2021.

The volume of chemicals involved jumped sharply from 24,100 tonnes to 79,300 tonnes and there was also a near-trebling in polluting bulk cargoes to 1.24m tonnes – though just a few incidents involving bulk carriers with cargoes such as coal, scrap metal, grains, soya and cement can have a significant impact on the numbers. In addition, almost 114,000 tonnes of non-polluting bulk cargoes, mainly metal ores, were involved in salvage operations.

ISU is clear that not all these potentially polluting cargoes and bunkers were at immediate risk of going into the sea. However, while some cases may present a limited danger, others will have carried a real risk of causing substantial environmental damage – as has been seen recently in the Philippines.

“In an era of ‘zero tolerance’ of any pollution, even the smaller cases represent a significant concern,” ISU states.

ISU has been conducting its annual survey since 1994 and, since 2014, it has been opened out to include a wider range of potential pollutants, including containerised cargoes. From 1994 to the end of 2022, ISU members have provided services to casualty vessels carrying a total of 41.5m tonnes of potential pollutants, or an average of 1.4m tonnes per year. www.marine-salvage.com

WWW.HCBLIVE.COM

48

CAREFUL WITH THAT OUTLET VENTING • CSB HIGHLIGHTS A NUMBER OF INCIDENTS WHERE EFFORTS TO REDUCE THE RISK OF AN OVER-PRESSURISATION HAVE CREATED AN ALTERNATIVE HAZARD, SOMETIMES WITH FATAL EFFECTS

• In Bhopal, India in 1984, hundreds of thousands of people were exposed to a cloud of methyl isocyanate gas after a PRV activated following a runaway reaction at the Union Carbide plant that create high pressure in a storage tank; estimates of the death toll reach around 25,000, with many thousands more injured • In Cincinnati, Ohio in July 1990, a release of flammable chemicals through a PRV on a reactor at the BASF plant led to a fire and explosion that killed two workers, injured 41 more and damaged more than 300 nearby homes • In Pasadena, Texas in May 2018, a release of ethylene at the Kuraray America plant during a process startup, which again involved over-pressurisation of a reactor. More than 20 workers were injured, either by the fire or by having to jump from the plant structure to escape; some who were wearing fall protection equipment took longer to escape and suffered heavier injuries • In La Porte, Texas in November 2014, four workers at the DuPont plant were fatally injured by a release of methyl mercaptan from an insecticide production unit.

CSB’s Safety Alert mentions other incidents, such as the deadly explosion at the BP America refinery in Texas City in 2005 and the May 2009 explosion at Veolia Environmental Services’ plant in West Carrollton, Ohio.

PRESSURE RELIEF VALVES (PRVs) are a vital element in many processes in the oil, gas and chemical industries. Without the potential for over-pressure to be relieved, there is a danger of a catastrophic failure of equipment and

in a Safety Alert issued last month, not a new safety lesson but, as the incident history shows, it is a lesson that has often been forgotten. Numerous chemical disasters involving the discharge of toxic or flammable

DESIGNED TO FAIL Poor design was a feature of all of these incidents. At the Kuraray plant in Pasadena, for example, a long-standing PRV system was designed in such a way that flammable ethylene vapour would be vented horizontally, with the piping system ensuring that this could happen close to workers; indeed, CSB found that another pressure relief system at the same site vented horizontally across a public road. At the Veolia plant, CSB found that flammable vapours vented from the

significant damage to property and the environment, as well as injuries and fatalities.

Emergency pressure relief systems are the last line of defence against such incidents.

However, as the US Chemical Safety Board (CSB) is highlighting, it is just as important that PRVs vent to a safe place. This is, it says

materials from PRVs during a process upset have harmed or fatally injured people, both on-site personnel and the broader public.

CSB lists some notable incidents where a lack of attention to the direction of an emergency pressure relief led to fatalities and injuries:

waste recycling process were allowed to accumulate to explosive concentrations outside the process equipment and, in the 2009 explosion, which killed four workers, found an ignition source.

In its investigations to these and other incidents, CSB has regularly made

HCB MONTHLY | APRIL 2023

SAFETY

recommendations to operators to change their approach to the venting of flammable or toxic vapours. However, this has not always had the desired effect. For instance, it recommended to Veolia that it design and install a closed relief system during the rebuilding of the West Carrollton plant, which had been significantly damaged in the explosion. Veolia reported to CSB that vents and other relief devices were evaluated to ensure that potential discharges would be directed to safe locations; however, CSB determined that this did not meet its recommendations and deemed Veolia’s actions an ‘Unacceptable Response’.

HELP IS OUT THERE There are, CSB, three lessons to be learned from incidents involving emergency pressure relief systems.

Firstly, existing good practice should be followed. The American Petroleum Institute’s API 521, Pressure-relieving and Depressurising Systems, is a Recognised and Generally accepted Good Engineering Practice (RAGAGEP) standard that is the basis of many

emergency pressure relief systems. It addresses many concerns about releasing flammable vapours directly into the atmosphere and generally requires using inherently safer alternatives for toxic release scenarios or when the potential exists for a flammable vapour cloud explosion.

API RP 14C, Analysis, Design, Installation, and Testing of Safety Systems for Offshore Production Facilities, follows API 521 and offers additional guidance unique to offshore oil and gas operations. The Center for Chemical Process Safety (CCPS) also addresses emergency pressure relief systems for both flammable and toxic gases in two documents: Guidelines for Pressure-relief and Effluent Handling Systems and Safe Design and Operation of Process Vents and Emission Control Systems. Additionally, the website of the American Institute of Chemical Engineers (AIChE) contains conference presentations and courses on Venting and Emergency Relief.

Secondly, operators should evaluate whether the atmosphere is the most appropriate discharge location or if there are safer alternatives. For instance, a flare

49

system may be inherently safer than an atmospheric vent stack, by combusting flammable hydrocarbons in a controlled manner before they are vented, rather than allowing the potential for them to cause a vapour cloud explosion.

CSB recognises that flaring may not always be appropriate but, if discharging to the atmosphere is the best option, operators should thoroughly evaluate the systems to ensure that releases will not pose a risk to workers or the public.

Finally, discharging potentially harmful vapours to a safe location is a basic design principle, as API highlights: “An atmospheric pressure-relief discharge point or downstream destructive device (e.g. flare, scrubber) discharge point that results in a potential hazard to personnel due to their proximity, such as the formation of flammable mixtures at ground level or on elevated work structures, presence of toxic or corrosive materials at ground or on elevated work structures, or thermal radiation effects from ignition of relief streams at the point of emission as specified in API 521 Section 5.8.4.4” represents an unsafe location.

Companies should evaluate the discharge points from their emergency pressure-relief systems to ensure they discharge to a safe location, so they do not create a hazard for operators or maintenance personnel on walkways or platforms, CSB says. Location of these discharge points also should be a safe distance from buildings’ air intakes.

Process Hazard Analyses (PHAs) present companies with one opportunity to periodically review and evaluate these systems. Field audits, relief studies, management of change (MOC), and incident investigations present additional opportunities to revisit and reassess these systems.

CSB’s Safety Alert includes an Appendix containing pertinent recommendations to operators and regulatory authorities as a result of its investigations into the abovementioned incidents; these provide a useful summary of many of the issues involved and potential ways to avoid hazards.

The Safety Alert can be downloaded from the CSB website at www.csb.gov/assets/1/6/ csb_eprs_alert_0223_draft5.pdf.

50

WRAP IT UP

THE US PIPELINE and Hazardous Materials Safety Administration (PHMSA), an agency of the US Department of Transportation (DOT), has issued a notice of proposed rulemaking (NPRM) under docket HM-219D. The notice includes a wide range of potential amendments to the Hazardous Materials Regulations (HMR) to update, clarify, streamline or improve the safety of various regulatory requirements. In particular, the rulemaking responds to 18 petitions for rulemaking that were submitted by the regulated community between May 2018 and October 2020.

by reference of certain documents. This article picks out some highlights but readers that might be affected by any upcoming change to HMR are advised to refer to the official version.

PACKAGING PROPOSALS The Compressed Gas Association (CGA) asked PHMSA to consider an amendment to §173.302b to restrict the transport of compressed natural gas (CNG)/methane in UN seamless steel pressure receptacles with a tensile strength greater than 950 MPa. While HMR requires UN 1971 Methane, compressed to be applied to CNG that is at least 98 per

higher tensile strength can be more susceptible to embrittlement.

CGA had submitted a similar petition in July 2015, which was denied by PHMSA due to is conflict with the requirements in §173.302a(a) (4) for DOT specification 3AAX and 3T cylinders when used in methane service. CGA then submitted a revised proposal, taking account of PHMSA’s comments. PHMSA now determined that there was merit in the proposal and also that the suggested change would align references in HMR to UN cylinders with the equivalent DOT specification cylinders. As a result, PHMSA now proposes to add a new sub-paragraph (f) to §173.302b setting out the conditions under which CNG may be carried in a UN seamless steel pressure receptacle.

FIBA Technologies asked PHMSA to consider a revision to the requirements for repairing seamless DOT 3-series specification cylinders and seamless UN pressure receptacles manufactured without external threads and to authorise the

The NPRM was published on 3 March 2023 and comments should be submitted by 2 May 2023; after due consideration, PHMSA will then work up a final rule for publication later this year.

The main changes relate to packaging, hazard communication and the incorporation

cent methane and free of corroding components, CGA reported that certain common impurities (such as hydrogen sulfide) can have a corrosive effect on the structural integrity of the steel used in the manufacture of the cylinders, particularly if any water is present. CGA also noted that steel with an

performance of such work without requiring prior approval from PHSMA. In particular, the petition sought permission to machine new threads on a previously used cylinder/ pressure receptacle. At present, such re-threading is only permitted without approval on cylinders/pressure receptable

USA • PHMSA HAS ISSUED PROPOSALS FOR REGULATORY AMENDMENTS IN RESPONSE TO PETITIONS FROM INDUSTRY IN RECENT YEARS, EACH OF WHICH SHOULD IMPROVE SAFETY

HCB MONTHLY | APRIL 2023

REGULATIONS 51

mounted in multiple-element gas containers (MEGCs).

FIBA mentioned that there are some older DOT specification 3AAX cylinders still in use that were manufactured in the 1960s and did not have external neck threads. These must be secured on a semi-trailer by the use of set screws, a practice which, FIBA argued, is less safe than using a threaded tube neck and threaded flange, which mounts the cylinder or tube more securely and also requires less penetration depth in the neck.

PHMSA responded positively, proposing a revision of §180.212(b)(2) to allow the machining of external threads on all seamless DOT specification 3AX, 3AAX and 3T cylinders and seamless UN pressure receptacles that were originally manufactured without external threads. In addition, it is proposing to authorise the machining of neck threads or rethreading of UN pressure receptacles

regardless of whether they are mounted in an MEGC. FIBA also asked PHMSA to consider an amendment to §173.302a(c) to clarify the special filling limits for DOT specification 3A, 3AX, 3AA and 3AAX cylinders containing Division 2.1 gases; this would overcome a minor error that crept in when special permit DOT-SP 6530 was adopted into HMR. FIBA further asked that the (+) sign be added following the test date marking on such cylinders when filled with hydrogen or mixtures of hydrogen with helium, argon or nitrogen, to signify that the cylinder may be filled to 10 per cent over its marked service pressure, provided it is fitted with a pressure relief device.

PHMSA undertook a thorough review of both of FIBA’s suggestions and agreed that making the changes requested would improve clarity and enhance safety.

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The Sporting Arms and Ammunition Manufacturers’ Institute (SAAMI) petitioned PHMSA for a change to §178.503(a)(6) to allow UN performance-oriented boxes to be marked with the last two digits of the year of testing certification rather than the year of manufacture, thus easing the burden of changing printing plates. PHMSA was agreeable to the change, which will save industry some cash while not affecting overall levels of safety.

SAAMI had also petitioned for an amendment to §178.601(g)(6) to allow for limited testing of combination packaging for small arms ammunition and components, specifically those shipped under UN Nos 0012, 0014, 0044 and 0055, without further testing.

Again, PHMSA felt this was a valid request, as minor package variations are not expected to affect the performance of the package.

Indeed, PHMSA is seeking comments on whether this testing variation should be extended to other types of articles, such as fireworks.

PHMSA did not, though, accede to SAAMI’s petition to allow for an increase in the external dimensions of the outer package. PHMSA saw this as a novel proposal, insofar as there are no similar variations for other packagings, and says that SAAMI failed to provide a safety justification.

HAZARD COMMUNICATION The Council on Safe Transportation of Hazardous Articles (COSTHA) petitioned PHMSA to amend §173.185(c)(3) to clarify that lithium button cell batteries installed in equipment are excepted from the marking requirement and not subject to the quantity per package or per consignment limitation. As that provision is currently worded, COSTHA argued, it has been interpreted by some that the existing exception for button cell batteries depends on the number of cells in a package

 CGA PETITIONED FOR SEVERAL AMENDMENTS TO THE REGULATIONS GOVERNING THE DESIGN, REPAIR AND MAINTENANCE OF TUBE TRAILERS

HCB MONTHLY | APRIL 2023

or the number of packages in a consignment, as shown by the number of requests for letters of interpretation received by PHMSA. PHMSA recalled that when this exception was first introduced into HMR as part of the HM-224F rulemaking, it had consolidated some of the text found in the UN Model Regulations; it acknowledged that this may have caused some confusion and was happy to accede to COSTHA’s petition. In the NPRM it is proposing to revise the introductory language in that section to clarify that lithium button cell batteries installed in equipment are not subject to any quantity per package or consignment limitations when applying the exception.

CGA had petitioned PHMSA to authorise an alternative description for gas mixtures containing components defined as liquefied gases, allowing them to be described as a ‘compressed gas’ when the partial pressures of the liquefied gas components of the mixture

are intentionally reduced so that liquefaction does not occur at 20°C (68°F). The ‘partial pressure’ is the pressure that would be exerted by one of the gases in a mixture if it occupied the same volume on its own. The sum of all components’ partial pressures equals the total pressure of the mixture.

Therefore, partial pressure can be lowered by lowering pressure generally (e.g. by lowering temperatures or increasing volume) or altering the ratio of gases in the mixture.

Having undertaken an extensive technical review, PHMSA largely agreed with CGA’s petition, although it could envisage some scenarios where first responders might be confused about a cylinder’s contents.

Similarly, there could be confusion when the content of a cylinder is described as a liquefied compressed gas but resembles a non-liquefied compressed gas during transportation and use. PHMSA nevertheless found no reason to deny the petition

REGULATIONS 53

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altogether, though CGA’s proposed solution appropriate change. It also notes that was not entirely to its liking. Instead, it is §172.514(c) authorises the use of labels rather proposing to amend the definition of a than placards for other types of bulk non-liquefied compressed gas in §173.115(e). packagings, such as small portable tanks, and Evonik petitioned PHMSA for a revision to is seeking comments on whether the §172.514(c) by adding an option for the use of proposed change should also apply to them.

Free DG Label ID poster with every order smaller placards for intermediate bulk COSTHA petitioned PHMSA for an containers (IBCs) carrying combustible liquids amendment to §173.4b to harmonise the de by adopting the provisions in DOT-SP 16295. minimis exceptions for Division 6.1, PG I This would allow IBCs containing combustible materials (with no inhalation hazard) with the liquids (NA 1993) to bear the ‘combustible’ international regulations. HMR has had de label consistent with §172.407(c), i.e. a minimis exceptions for Division 6.1, PG II and diamond shape of at least 100 mm (3.9 inches) PG III materials since the HM-224D and on each side, rather than a 250-mm placard.

HM-215J rulemakings, which were prompted Such a change would resolve a by industry petitions. PHMSA found that, in contradiction, insofar as §172.514(c)(4) fact, the UN provisions that were adopted for authorises IBCs to be labelled rather than PG II and III materials were based on a US placarded, but this does not currently apply to proposal to the UN Sub-committee of Experts combustible liquids since there is no on the Transport of Dangerous Goods. It could authorised label. Evonik argued that it is perverse not to allow this for combustible liquids, which in general pose a lower level of hazard than many other products that can be shipped in IBCs bearing the smaller label.

PHMSA found it hard to argue against Evonik’s petition and is planning to make the

see no valid reason why the petition should now be denied and is proposing the appropriate changes.

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guidance and PHMSA relies on those industry bodies whose standards are referenced to keep it advised of any changes or any relevant standards that have not yet been referenced in HMR. CGA had a number of updates to bring to PHMSA’s attention, including a petition to incorporate by reference its standard CGA C-20, Requalification Standards for Metallic, DOT and TC 3-Series Gas Cylinders and Tubes Using Ultrasonic Examination (second edition, 2014). This document addresses the increasing use of ultrasonic examination (UE) methods and its incorporation by reference would, CGA argues, eliminate the need for PHMSA to issue the very many special permits to authorise such methods, while also harmonising the various UE methods. In addition, CGA proposed amending §180.205 to reflect the UE methods authorised by CGA C-20.

CGA said that the increased use of UE necessitates clear and consistent instruction in the application of this technical method, as well as the adherence to proper calibration and acceptance/rejection criteria. CGA asserted that the proposed modifications ensure that this requalification method is applied consistently to safeguard cylinder serviceability. In fact, PHMSA had taken part in the task force meetings and provided technical assistance during the development of CGA C-20 so was well aware of its benefits.

In the NPRM, PHMSA is proposing to add a reference to CGA C-20 in §171.7 and also to revise §180.205 to reflect the UE methods authorised in the standard. In addition, it is proposing to revise §180.205(i) to state that, when a cylinder containing hazardous materials is condemned as a result of periodic inspection, the requalifier must stamp the cylinder with the word ‘CONDEMNED’ and

affix a readily visible label on the cylinder stating: ‘UN REJECTED, RETURNING TO ORIGIN FOR PROPER DISPOSITION’.

CGA further petitioned for the incorporation by reference of its standard CGA C-23 Standard for Inspection of DOT/TC 3 Series and ISO 11120 Tube Neck Mounting Surfaces (second edition, 2018), with revisions to §180.205 and §180.207 to reference its requirements. CGA C-23 defines a tube as a seamless pressure vessel authorised for transport only when horizontally mounted on a motor vehicle or in an ISO framework, commonly referred to as ‘skid containers’, ‘tube trailers’ or multipleelement gas containers (MEGCs). One result of incorporating CGA C-23 by reference would be that all requalifiers of such vehicles would be required to periodically disassemble equipment and perform an examination of the tube neck mounting surfaces.

CGA C-23 was developed in response to an incident where a DOT specification 3AAX cylinder was ejected from a semi-trailer and ruptured on initial impact with the roadway.

CGA determined that the root cause of the ejection, which contributed to the severity of the incident, was the condition of the connection between the tube neck and flange.

CGA says that CGA C-23 will enhance the inspection process to include the inspection of the tube mounting and replacement of flanges.

CGA C-23 is not currently referenced in HMR, although PHMSA has referenced it as a safety control in a number of special permits.

In the NPRM, and following a technical review, PHMSA is proposing to incorporate CGA C-23 by reference in §171.7. PHMSA found CGA’s proposal for new requirements in §§180.205(d)(5) and 180.207(d)(1)(iii) to be too vague and, instead, it is proposing to reference descriptions of extreme neck thread wear in the standard and to require a ten-year periodic disassembly of tube modules longer

 IME HAS BEEN WORKING ON REVISING ITS STANDARDS FOR THE TRANSPORT OF EXPLOSIVES, INCLUDING AMMONIUM NITRATE EMULSIONS, IN THE WAKE OF SOME ACCIDENTS

HCB MONTHLY | APRIL 2023

REGULATIONS 55

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maximum allowable service pressure of a cylinder due to thinning of a cylinder’s All UK consignors must have an PHASING OUT OF SOME REFRIGERANT GASES, WHICH walls to extend the life of the cylinder, the appointed DGSA by 1st January 2023 WILL BE REFLECTED IN A CHANGE IN THE HMR ON THE procedure for which must be carried out For abylocal, professionalrepair consultant USE OF SPECIFIC CYLINDERS a DOT-approved facility. CGA DGSA, contact Labeline said incorporating CGA C-27 by reference Free DG Label ID poster with every order The ‘Biennial’ would standardise returns! and codify the current than 12 feet for inspection in accordance process and reduce the number of queries with CGA C-23.

PHMSA receives.

CGA also petitioned PHMSA to update its PHMSA conducted a technical review and reference to Appendix A of CGA C-7 Guide to found that CGA C-27 is essentially the same Classification and Labelling of Compressed as its own guidance on the subject. It is now Gases from the tenth edition (2014) to the proposing to add a reference to the standard eleventh (2020). PHMSA agreed that the in §171.7 and to add instructions at §180.212(a)(4).

THE multimodal regulatory update webinar 18th 2022 is CGA C-29 updated edition offers greater clarity and is Another newOctober CGA publication proposing to make the change at §171.7(n)(8).

Standard for Design Requirements for Tube CGA brought a new publication to PHMSA’s Trailers and Tube Modules (first edition, 2019), attention, namely CGA C-27 Standard which supersedes the Technical Bulletin CGA Procedure to Derate the Service Pressure of TB-25 Design Considerations for Tube Trailers ENVIRONMENTAL CONCERNS ARE LEADING TO THE

DOT 3-Series Seamless Steel Tubes (first edition 2019). CGA C-27 provides a standard procedure derate Tel: +44 (0)870to850 50 the 51 service pressure of Email:DOT sales@labeline.com 3-series seamless steel tubes with local thin areas in the walls of the tube that do not www.labeline.com meet the minimum thickness criteria of the specification. Derating is the lowering of the

(2018). The new standard defines basic design requirements for tube trailers and tube modules maintain Tel: +44 to (0)870 850structural 50 51 integrity Email: during sales@labeline.com normal conditions of handling and transport, and to better survive an accident. It www.labeline.com does not cover MEGC design requirements, as these are already specified in §178.75 of HMR.

Dangerous Goods Labels Regulations Documentation Packaging Software Training GHS Chem Regs

Tel: +44 (0)870 850 50 51 Email: sales@labeline.com www.labeline.com

WWW.HCBLIVE.COM

56

PHMSA has established that CGA C-29 is technically accurate and will help prevent the unintentional release of hazardous materials in the event of an accident. It is therefore proposing to incorporate it by reference in §171.7 and remove references to CGA TB-25.

The final petition from CGA involved CGA V-9 Compressed Gas Association Standard for Compressed Gas Cylinder Valves, the eighth edition of which was published in 2019 and makes several updates to the previous edition, issued in 2012, particularly in relation to revised ISO standards. PHMSA notes that, having already incorporated by reference ISO 10297 in HMR, there is no technical reason why the updated version of CGA V-9 should not also be referenced. It therefore proposes to make the necessary amendment in §171.7(n)(26).

HMR also incorporates by reference publications from the Institute of Makers of Explosives (IME). One recent update involves

 THE LATEST ROUND OF PROPOSALS WILL AFFECT MANY PARTS OF THE HAZARDOUS MATERIALS REGULATIONS

HCB MONTHLY | APRIL 2023

IME’s Safety Library Publication SLP-23 Recommendations for the Transportation of Explosives, Division 1.5; Ammonium Nitrate Emulsions, Division 5.1; and Combustible Liquids in Bulk Packaging. A 2021 revision includes several editorial changes and a restructuring to make it more consistent with HMR; one substantive change is the deletion of the Vented Pipe Test from Appendix A. That reflects recent decisions by the UN Subcommittee of Experts. Another issue it addresses is the requirement for an annual audit of driver qualification and training programmes, which IME said is inadequate to ensure safety.

IME also took the opportunity to petition PHMSA to incorporate special permit SP-8723 into HMR; this authorises the transport of UN Nos 0332, 3375 and 3139 in IM 101 and 102 portable tanks. IME said that this should have happened when the 2011 edition of SLP-23 was incorporated by reference but, due to an oversight, it did not. The conversion of special permits into regulations, IME said, “provides certainty to the regulated community and increases transparency for government, stakeholders, and the public”.

After a technical review, PHMSA was happy that most of the changes in the 2021 edition of SLP-23 are either non-substantive or editorial in nature. It does not, however, agree with the deletion of the Vented Pipe Test requirements, noting that the issue is still under discussion at UN level. PHMSA also agreed with IME on the question of SP-8723. As a result, PHMSA now proposes to amend the reference to SLP-23 in §171.7(r)(2), revise special provision 148 to clearly state that the Vented Pipe Test requirements from the 2011 edition of SLP-23 still apply; add a new tank provision TP48 in §172.102(c)(8) to authorise the use of IM 101 and 102 portable tanks for the transport of ammonium nitrate emulsions assigned to UN 0332, 3375 or 3139; and revise §173.251 to state that it is not applicable when UN 3375 Ammonium nitrate emulsion is transported in IM 101 or 102 portable tanks.

IME has also updated SLP-22 Recommendations for the Safe Transportation of Detonators in a Vehicle with Certain Other Explosive Materials and petitions for the existing references in §§171.7(r)(1), 173.63 and 177.865 to be revised. PHMSA had reviewed the 2019 edition and agreed that it contained

REGULATIONS

improvements compared to the previous, 2007 edition, and is proposing to updated the references as requested.

OTHER MATTERS COSTHA had petitioned PHMSA on a matter that would seem fairly self-evident, viz the definition of a ‘liquid’. Specifically, COSTHA asked that §171.8 be amended to include the test for determining fluidity, ISO 2137:1985 – the penetrometer test – that is already referenced in ADR, the UN Model Regulations, the IMDG Code and the ICAO Technical Instructions. Currently, HMR only references the ASTM D 4359 test method, which is applicable to viscous material for which a specific melting point cannot be determined.

This means that a material manufactured outside the US and classified using the penetrometer test may not be reshipped

within the US without first being subjected to the ASTM D 4359 test.

PHMSA undertook a technical review and determined that the ISO test is more empirical in nature than the ASTM test and provides a better understanding of the physical properties of the tested material. It therefore agrees with COSTHA’s petition and is proposing to make the requested change.

Finally, PHMSA is proposing to respond to a final rule published by the US Environmental Protection Agency (EPA) to implement certain provisions of the American Innovation and Manufacturing (AIM) Act 2020, specifically relating to the phasing down of hydrofluorocarbons (HFCs). The Act directs EPA to implement the phasedown by issuing a fixed quantity of transferable production and consumption allowances, which producers and importers of HFCs must hold in quantities

57

equal to the number of HFCs they produce or import.

EPA’s final rule will first prohibit the introduction of additional disposable (i.e. non-refillable) cylinders to the market by 1 January 2025 and then prohibit their sale altogether by 1 January 2027. This will in particular affect DOT 39 cylinders. PHMSA now proposes to adopt the same prohibitions so as to fulfil the mandate of the AIM Act and combat climate impacts, and to avoid potential confusion if such cylinders were to still be authorised by PHMSA while being prohibited by EPA. In the NPRM, PHMSA is proposing to revise the transport requirements for refrigerant gases in §173.304(d). An exception will be provided for aerosol cans containing less than 2 lb of a listed HFC and equipped with a self-sealing valve meeting the EPA specification.

58

NEWS BULLETIN

REGULATIONS

HM-260B on 27 December 2022; that rule made miscellaneous editorial changes to the Hazardous Materials Regulations (HMR) to improve clarity and correct earlier errors.

However, it also introduced some more errors.

Most of those relate to stowage codes, although PHMSA also inadvertently deleted reference to a Class 3 subsidiary hazard in column (6) of the Hazardous Materials Table against UN 2258 1,2-propylenediamine, which has now been corrected. Full details can be found in the Federal Register at www.federalregister.gov/ documents/2023/01/25/2023-01327/hazardousmaterials-editorial-corrections-and-clarificationscorrection.

CANADA’S RETIREMENT SCHEDULE

Transport Canada (TC) has issued an advisory notice on the upcoming phase-out deadlines for Class 111 tank cars in flammable liquids service. The deadlines apply to the carriage of ethanol, other alcohols and ethanol/gasoline mixtures shipped under UN Nos 1170, 1987, 1993 and 3475.

Legacy Class 111 tank cars may not be used in such service after 1 May 2023; unjacketed enhanced (CPC-1232) tank cars must not be used after 1 July 2023; jacketed enhanced CPC-1232 tank cars have until 1 May 2025 before being retired from the trade.

The restrictions on use derive from the Transport Canada standard TP 14877, published at the start of 2018, which can be downloaded here: https://tc.canada.ca/sites/ default/files/migrated/tp14877_en.pdf.

CANADA FIXES FEES

Transport Canada (TC) has published proposals that would enable it to levy fees on persons and companies subject to the TDG Means of Containment (MOC) Facilities Registration Program. There are currently no

HCB MONTHLY | APRIL 2023

fees charged to offset the cost of processing applications and certifying registered persons, which is a strain on TC’s resources and a cost to the Canadian taxpayer. TC had already flagged up it intention to introduce a cost-recovery regime to ensure that those who benefit from TC’s services pay a portion of their cost.

The proposed ministerial fees order would introduce fees that would be applicable to operators of container facilities who design, manufacture, requalify or repair MOCs as well as to design engineers who design standardised MOCs. Fees would also be applicable to service providers to review designs of MOCs, inspect MOCs and provide training to companies that conduct MOC activities.

Full details of the proposed fee structure can be found in the Order, which was published in Canada Gazette Part I on 25 March; a 60-day consultation is now open, with comments invited by 24 May. PHMSA MAKES CORRECTIONS

The US Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a correction to the final rule issued under

GET THE LIST

The UK National Chemical Emergency Centre (NCEC), in cooperation with the Home Office, has produced the revised 2023 Dangerous Goods Emergency Action Code (EAC) List. The new version is effective immediately and is mandatory from 1 July, in parallel with the 2023 editions of ADR and RID. Dutyholders are required to use the 2023 EAC List by Schedule 1 of the Carriage of Dangerous Goods etc Regulations (CDG 2009), as amended; the 2021 EAC List should no longer be used after 1 July.

An electronic copy of the new EAC List can be downloaded from the NCEC website at https://the-ncec.com/en/resources/the-dangerousgoods-emergency-action-code-list-2023; print copies can be obtained from The Stationery Office (TSO).

M350 UNDER WAY

The Netherlands has become the first (and so far only) counter-signatory to Germany’s Multilateral Agreement under ADR, M350, which provides a wide-ranging derogation for the carriage of dangerous goods in machinery,

REGULATIONS 59

apparatus or articles when they are transported for the purposes of repair, inspection, maintenance, disposal or recycling. The Agreement requires that such items are safely enclosed and that measures have been taken to prevent any leakage during normal conditions of carriage. The Agreement is valid until the end of 2024.

INDIA BANS OLD SHIPS

India’s Directorate General of Shipping (DGS) has confirmed earlier reports and has now issued a DGS Order (No 6 of 2023) to place an age restriction on specified vessels, effective immediately. For tankers, this means that no tankers of 25 years of age or more may be registered under the Indian flag or, for foreign flag vessels, may not operate in Indian waters.

There are also restrictions on vessels of 15 years of age or more which, inter alia, mean that Indian-flag owners can no longer acquire ships of 20 years of age or more on the secondhand market.

The full text of the order can be found on the DGS website at www.dgshipping.gov.in/ writereaddata/ShippingNotices/20230227055757 0370595DGSOrder06of2023onAgeNorms.pdf.

PACKAGING DOWN UNDER

Australia’s National Transport Commission (NTC) has published a guidance document on performance requirements for inner packagings.

NTC felt the guidance was needed since there was a significant change in Edition 7.7 of the Australian Dangerous Goods (ADG) Code; prior to that, every inner packaging filled in

Australia was required to be tested and approved but in ADG 7.7 Australia adopted the international system, under which combination packagings are tested and approved in the form of complete packages.

The inner packaging tests in previous editions may still have some value to companies that wish to test and verify that their inner packagings offer suitable protection from accidental drops or mishandling by consumers after the inner packagings are removed from the outer packaging, NTC says.

Chapter 4.1 of the ADG Code also contains some general requirements for the strength and compatibility of inner packagings and this too is reflected in the guidance document, which can be downloaded from the NTC website, www.ntc.gov.au.

60 BACK PAGE

NOT OTHERWISE SPECIFIED BADGER, BADGER, MUSHROOM Rail travellers in southern Netherlands were discomfited recently, with a week-long cancellation of services between the towns of Den Bosch and Eindhoven. Rail operators were concerned after finding that badgers had been burrowing under the tracks near the village of Esch, creating a risk of collapse.

“Badgers are a protected species and we need permission to act,” a spokesperson for ProRail told local broadcaster Omroep Brabant. “So we can’t actually say how long the problem will continue.”

The affected route is an important commuter connection, with 16 passenger trains per hour as well as goods traffic; putative travellers faced either a long detour or an unreliable bus service.

And this was not the first time this had happened. Only a few weeks before, train services in the north of the Netherlands were affected in exactly the same manner; a sett found near Molkwerum consisted of a network of tunnels with dozens of entrances, making it highly vulnerable to collapse under the weight of a passing train.

With two identical events occurring so closely together, the issue got right to the top of ProRail, with its chief executive, John Voppen, holding emergency talks with the infrastructure ministry. “It is in the interests of the traveller and rail companies to have the space to act more quickly,” he said, somewhat ominously for the Dutch badger population.

tracks by using the trestles carrying the tracks over water courses as part of their dams; attempts to reduce the beaver population in the area had had the effect of removing that informal maintenance programme.

Animals and rail transport have not always been such uneasy bedfellows; we recall stories from Canada some years ago when rail services in wetland areas suddenly experienced a series of track collapses. On investigation, operators determined that local beavers had for years been propping up the

Other stampedes were reported, with one man being killed and several others injured when crowds became unruly in Charsadda; several others were injured in Swabi and Kohat. It seems the authorities might have been alerted to the risks, as a man was killed in January during the sale of subsidised flour.

HCB MONTHLY | APRIL 2023

NO FREE LUNCH Bread and circuses are known to be the necessities of life, and a lack of either can cause an uprising in a disaffected population. In Pakistan over the past few months, attempts have been made to ensure that bread did not end up in short supply but the well-meaning projects to keep hunger at bay have also resulted in deaths and injuries.

In March, for instance, several people were injured in a stampede during the distribution of free flour at a sports arena in Mardan.

According to eye witnesses, the distribution process was chaotic and even those eligible for free flour had been forced to wait in queues for hours; others began protesting, blocking the main road and throwing stones at police guarding the arena. In response, police baton-charged the crown and fired their guns into the air, causing panic and many injuries.

Indeed, since the start of the flour distribution campaign, dozens of people have been injured or simply fainted in the heat; press sources also accused those distributing the flour of embezzling hundreds of bags a day and selling that flour at exorbitant prices in the markets.

ADVERTISERS INDEX Air Sea Containers

45

Azelis

29

Chemical Watch

IBC, 33

COSTHA

42

Enhesa

34

Fort Vale

OBC

Freight Merchandising Services

57

Goodrich Maritime

23

ITCO

IFC

Kube & Kubenz

25

Labeline

51, 53, 55

Leschaco

19

RAS Ltd

13

Seaco Global

21

Tank Storage Association

02

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