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Autumn has arrived (up here in the northern hemisphere, anyway) after what has been a long, hot and dry summer for many of us. But while the weather has changed, many of the challenges facing global supply chains have not – indeed, in many respects things are getting worse.
For a start, the Covid pandemic is still with us, notwithstanding President Biden’s assertion that it is over in the US. Waves of infections are causing problems for logistics planning, especially when they result in port closures, as they have done intermittently in China this year. The war in Ukraine rumbles on with no sign of imminent resolution; aside from the humanitarian cost, this is affecting supplies of Russian oil and gas as well as ammonia and grain from Ukraine, pushing up commodity prices – including those for chemical feedstocks - to increasingly painful levels.
On top of all that, operators in the chemical logistics chain are dealing with port congestion, labour shortages and general inflation (as are we all). In Europe, the dry summer caused problems on the Rhine, with low water levels hampering traffic – though the arrival of autumnal rains should ease that, at least till next year. Hupac has reported problems on the rail network, noting that maintenance work is expected to continue through the winter, and appealed for greater coordination.
At the same time as all this disruption, chemical producers and logistics companies are having to face up to the demands for a new approach to environmental management, the looming energy transition and greater sustainability on the road to net zero. That is going to take a lot of investment over the rest of this decade – and the decades to follow – at a time
when, because of current disruption, investment decisions are hard to make.
There’s no better time, then, for the European petrochemical industry and its logistics service partners to gather together once more under the umbrella of the EPCA Annual Meeting, which takes place in person in Berlin from 4 to 6 October.
The past three years have forced us all to think about the value of personal relationships in our work and in our own lives at home. But after that time when work happened at home, there will be a deep well of pent-up demand to get back to face-to-face communication, the shaking of hands (or pumping of fists) and the sharing of beers. For those who have never experienced the EPCA Annual Meeting, it must be explained that, for all the stellar personalities taking part in the business sessions and giving their insights from the very top of the industry, it is what goes on in the suites, bars, meeting rooms and coffee shops, not just in the hotels that host delegates but all around, that make this the must-attend event that is has been for more than five decades.
And, as EPCA puts, it, this year’s Annual Meeting is crucial: “Never has it been more important for our industry to step up to the challenges associated with achieving net-zero, the UN Sustainable Development Goals and creating a positive impact at scale to play an active role in sustainable transformation. How will our industry rise to these challenges?”
That’s a big ask. We wait to see how the future pans out.
Peter MackayWe provide the industry with comprehensive, safe, and reliable service offerings like Tank Cleaning, Heating, Repair, Maintenance, Storage, and Transportation to a wide variety of chemical and food grade customers.
HYDERA is strategically located at the Bushy Park industrial complex near Goose Creek, South Carolina. Bushy Park is a multi-tenant heavy industrial site with 24-hour security and close access to the expanding Charleston port system and highway infrastructure.
HYDERA is a full service depot servicing the needs of the Bulk Liquids Transportation Industry through the Charleston, South Carolina marketplace.
VOLUME 43 • NUMBER 09
UP FRONT
Letter from the Editor 01
30 Years Ago 04
Learning by Training 05
Embrace the change
What’s new in SQAS 22 06
A smart move
New look for Talke 08
Save our seals
ITCO appeals for PFAS 10
Coping in a crisis
How Suttons has managed 12
Spread the joy
Synda provides the link for tanks 14
Changing the rules
Chemical Express values drivers 16
Group thinking
Dachser promotes groupage 18
News bulletin – tanks and logistics 21
News bulletin – chemical distribution 24
Back in black Chemical tanker market improves 28
EBU calls for more investment 32
Watch the gas grow
LPG tanker markets surge 34
News bulletin – tanker shipping 38
In the blood
Advario fulfils its remit 40
It takes a village
Gothenburg leverages new fuels 42
How green is the valley
Vesta and Uniper go for ammonia 44 Goalmouth action
Rotterdam, Moerdijk define the cluster 46 Bottoms up
Square Robot offers in-service survey 49
News bulletin – storage terminals 50
Conference diary 53
SAFETY Incident Log 54
Getting better Survey finds confidence improving 56
News bulletin – safety 58
Heavy lifting
UN experts get through hefty agenda 60
Stick, not carrot
EPA plans RMP improvements 67
Where does it all go wrong?
VCA seminar hears about enforcement 68
Not otherwise specified 72
IATA’s annual changes
TSA conference report
Industrial packaging markets Sustainability and digitalisation
Managing
Peter Mackay, dgsa
Email: peter.mackay@chemicalwatch.com
Tel: +44 (0) 7769 685 085
Advertising sales
Sarah Smith
Email: sarah.smith@chemicalwatch.com
Tel: +44 (0) 203 603 2113
Publishing
Sarah Thompson
Email: sarah.thompson@chemicalwatch.com
Tel: +44 (0) 20 3603 2103
ISSN 2059-5735 www.hcblive.com
HCB Monthly is published by CW Research Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect.
©2022 CW Research Ltd. All rights reserved
LEAFING THROUGH THE pages of the October 1992 issue of HCB, one lights upon a note that the UN Sub-committee of Experts’ sixth session agreed new special provisions for both rechargeable and primary lithium batteries; clearly this was not the first time that these articles had been covered in the Orange Book, as the criteria for determining which lithium batteries could be regarded as ‘nondangerous’ were also revised. Nevertheless, one cannot help but wonder if a biennium has gone by since then when the provisions for lithium batteries and cells (as well as packed with/contained in, disposal/damaged etc etc) have not been further revised.
Also among the outcomes of the UN Experts’ meeting were new provisions governing the packaging and transport of medical and clinical wastes. The regulators do not have access to a crystal ball and could not then have known that those provisions would also have to be revised, not least to take account of the large volumes of wastes that would be generated during large-scale viral outbreaks. Ebola kicked that off, and the changes made then came in useful when Covid came along; doubtless they will be too for Monkeypox.
One illuminating – if rather depressing – report in that issue concerned a container inspection programme undertaken by a group of ports in north-west Europe in the latter part of 1990; nearly 3,000 containers (including 473 tank containers) had been inspected, of which around half were non-compliant in some way. Almost 800 had placards and marks that did not meet IMDG Code requirements: the wrong size, the wrong location, not matching the hazards of the goods contained, empty containers still bearing placards from their last load, and so on. This failure extended to tank containers too, although in
most other respects compliance was much higher for tanks –excepting that a number were found to have frames so badly corroded that they were barred from onward transport. It is sad to report that those container inspection programmes being carried out thirty years later still reveal a similar level of non-compliance.
Elsewhere, the October 1992 issue of HCB focused very much on European logistics, to coincide with EPCA’s annual logistics meeting in Monte Carlo (those were the days!). However, there were two important developments in the US that could not be overlooked. The first of these was the ground-breaking HM-181 rulemaking, which brought a fundamental shift in the way hazardous materials were regulated – bringing in the idea of ‘performance-oriented packaging’ as well as changes to classification, hazard communication, packaging and handling requirements to harmonise more closely with UN and international modal rules.
Of course, the US Hazardous Materials Regulations were not then fully harmonised with the UN Model Regulations – nor are they today – and HCB focused on some areas where there were differences, not least in the hazardous communication and packaging requirements for poison-inhalation hazard (PIH) materials. The US DOT’s definition of Division 4.3 differed, tank containers needed additional certification for PG I and II substances, and combustible liquids were also included.
HM-208 had also just entered into force, implementing a registration system for shippers and carriers of hazardous materials – including non-US companies, which caused some issues. Thirty years later, Canada is only just now catching up with the system south of the border.
IMAGINE THAT WE, as a tank storage terminal, have to store a new product, e.g. ethyl benzene, because one of our customers asked us to. It is a product that is dangerous for human and non-human life, the environment and social cohesion. A study must therefore be carried out to determine the correct and safest ways of handling this product.
A study group is selected to undertake this task. It consists of the operations manager, the HSE safety officer, a chemical laboratory technician, a commercial person (who should know this as well of course) in cooperation with the customer. This is a so-called ‘product acceptance protocol’. Together, they read the Safety Data Sheet (SDS) to identify the risks to which everyone in the terminal and the surrounding area is exposed. They write a so-called SOP, a Standard Operational Procedure for everyone who will be working with this new product, such as the loading operators, the process operators, the tank truck drivers.
Everyone who works or may work at the terminal must learn this SOP by heart in order to act correctly in case of an emergency, including the contractors who are usually operational too. It is therefore not enough to simply hand out the SDS and hope that it will be studied and understood by everyone. This is where awareness training comes in. My observations as a trainer are that on many terminals the opposite happens. The people who work there are insufficiently informed and trained to deal with hazardous products, though the first chapter of the ISGOTT is called ‘Hazards of Petroleum’.
So it comes down to information. There is a rule that you can find on our website on the page: Early Warning System. Tank storage terminals
and refineries that fail to effectively implement information processes and internal control systems are likely to face an information deficit at some point, which will lead to poorer performance. Understanding how information shortage results in entropy or disorder is crucial if you want to run an effective business: Information shortage ≙ Entropy (disorder) (≙ by definition). Functionality and HSEQ depend on information!
We have designed an early warning system that measures the potential information gap to predict, prevent and mitigate disorder and risk. What we offer is measuring the quantity and quality of information in your organisation to verify potential risk exposure according to a scientific method.
The advantage of this approach is that risk management becomes proactive instead of reactive. More information and research can be found on our website. We offer a one-day training programme to allow personnel to learn more and understand the science behind it. We no longer have to ask: is it sustainable or safe? You ask this question: ‘can our terminal continue to function in this way and do we meet the criteria of and for functionality that consists of information?
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.
SQAS • CEFIC’S SQAS ASSESSMENT SYSTEM NEEDS REGULAR UPDATING TO REFLECT CHANGES IN INDUSTRIAL PRACTICES AND PUBLIC EXPECTATIONS. VICTOR TRAPANI* EXPLAINS WHAT’S NEW THIS YEAR
THE EUROPEAN CHEMICAL Industry Council (Cefic) developed what is now the Safety and Quality Assessment for Sustainability (SQAS) system 30 years ago to assess the level of safety across the chemical logistics and distribution sectors and, by providing a clear benchmark, to promote improvements in safety. Over the years, updates to SQAS and its questionnaires have traditionally been driven by safety but the focus of those changes has gradually shifted; for the latest version, SQAS 2022 – which has been used since 3 January this year – environmental and digitalisation considerations were the main steering factors.
The European chemical industry supports the EU Green Deal and its ambition to achieve climate-neutrality by 2050. The EU’s Sustainable and Smart Mobility Strategy
requires a 90 per cent reduction in greenhouse gas (GHG) emissions from the transport sector by 2050. Cefic says that, for this ambition to be met, businesses will need to increase their level of digitalisation, efficiency and knowledge sharing.
To reflect this, SQAS 2022 includes significant changes in three areas.
• Firstly, there is an upgraded section on the measurement and reduction of GHG emissions by logistics suppliers. This applies to the Transport Service, Warehouse and Tank Cleaning questionnaires. It allows users to check if assessed companies comply with accepted industry standards on the measurement and reporting of GHS emissions, and if they are involved in emission
reduction programmes. This section is based on the well known industry guideline, Global Logistics Emissions Council Framework for Logistics Emissions Accounting and Reporting (GLEC) (www.smartfreightcentre.org/en/ downloads/).
• There are new questions on the avoidance of plastics pellet loss. Given global concerns about the impact of plastics pellets on the environment – and the marine environment in particular – SQAS has developed a set of requirements to minimise or eliminate pellet loss, which is aligned with the Operation Clean Sweep programme (www. opcleansweep.eu). Depending on the SQAS module, between 30 and 60 new questions have been introduced to check how assessed companies manage the risks of plastics pellet loss.
• Finally, there are new questions about the digitalisation of transport information, incorporated into the SQAS Core questionnaire. These seek to identify how assessed companies are managing digitalisation, including issues surrounding IT security. The pre-assessment document (PAD) also has a new section to measure the degree of digitalisation in the information provided by transport companies.
All the SQAS 2022 questionnaires are available in English, French, German, Italian
and Spanish from the SQAS website, https:// sqas.org. Changes compared to the SQAS 2019 versions are highlighted.
That is not the end of the changes, as Cefic has already lined up some revisions to the SQAS 2022 questionnaires and to the European Single Assessment Document (ESAD) 2022, which is used by the chemical distribution sector. These have already been uploaded to the SQAS website and will be used in assessments from 31 October onwards.
For SQAS 2022, the revisions include clarification and amendments to the three new sections listed above. There is also a new section on container depots, integrated into the Transport Service, Tank Cleaning and Warehouse questionnaires. ESAD 2022 includes new versions of the questionnaires, with that for Core plus ESAD supplement mirroring the changes already introduced into SQAS. There were also new versions of the questionnaire on chlorinated solvents and the
F&G questionnaire covering foodgrade products, cosmetics and pharmaceuticals. Again, the relevant changes are highlighted.
As well as revising the questionnaires themselves, Cefic has also been working on making the existing database easier to use. A new platform is being developed, with the aim of launching SQAS 2.0 in the second quarter of 2023. The main objectives of this project are to:
- Include user-friendly ways to analyse assessment reports by making their presentation more visual, intuitive and comprehensive
- Improve the look of the SQAS public website, and
- Add new functionalities for managing and executing assessments.
The launch of a new version of the questionnaires provides a good opportunity to reflect on the main objectives and benefits of SQAS. As part of their commitment to Responsible Care, chemical companies want to ensure that their logistics service providers (LSPs) and distributors transport and handle chemical products safely, with care for the environment and in full accordance with regulations, EU policy ambitions and industry codes of best practice.
The key benefits of SQAS are:
- The promotion of continuous improvement of the safety, environmental, quality, security, and corporate social responsibility standards in logistics and distribution operations
- Providing a single, objective evaluation system adapted to the needs of individual chemical companies
- Being cost-effective through the sharing of assessment reports, which means that individual chemical companies need to conduct fewer audits and LSPs are subject to fewer audits
- Being a systematic approach focusing on those issues that need attention and improvement.
Overall, SQAS is an indispensable tool for logistics safety managers, dangerous goods safety advisers (DGSAs), sustainability managers and procurement managers. It is not a certification system but an assessment system that provides a detailed and factual assessment report.
The value of that approach can be seen from the usage statistics. In 2021 there was a record number of assessments, which demonstrates an increasing need from industry for implementation of SQAS.
SQAS was originally built and developed by industry players with a focus on safety and quality. Given the broader benefits of SQAS regarding sustainability and digitalisation, together with Cefic’s ambition to continuously improve LSP performance, it has now initiated an engagement programme with authorities and non-governmental organisations.
Following the development of Module 5, a special section of the GLEC guidelines to allow shippers to calculate the GHG emissions of logistics suppliers, the SQAS team had a fruitful discussion with the European Commission’s DG MOVE, responsible for European transport policy. This year, DG MOVE will develop an EU framework for harmonised measurement of transport and logistics emissions system. SQAS aims to contribute to this important initiative while communicating the benefits of SQAS to authorities.
*Victor Trapani is SQAS Manager at Cefic and can be contacted by email at vtr@cefic.be. www.cefic.org sqas.org
THE PANDEMIC YEARS APART, USE OF SQAS HAS BEEN ON A CONSISTENT UPWARD TREND FOR TWENTY YEARS, SHOWING ITS VALUE AND THE NEED OF INDUSTRY FOR RELIABLE INFORMATIONSTRATEGY • TALKE HAS MARKED ITS DIAMOND ANNIVERSARY WITH A NEW LOOK, A NEW MISSION AND A NEW COMMITMENT, BACKED BY 75 YEARS OF EXPERIENCE AND ITS FAMILY VALUES
ALFRED TALKE SR established the firm that still bears his name 75 years ago this year, with a single truck and a lot of hard work. He started out hauling lignite, used as a fuel by the local chemical industry that was just recovering from the Second World War but, with support from the Allies as part of reconstruction efforts, was soon to grow rapidly, providing more work for the new breed of small transport companies.
Spool forward to 2022 and Talke still focuses on the transport of chemicals or, rather, sees itself as “a globally leading logistics solutions provider for the world of chemistry”. It has marked its 75th anniversary this year with a series of articles charting its history and development and topped that off with a newly sharpened strategic focus, corporate mission statement and corporate design.
This is not a revolution but represents a continuation of how the company has seen itself since its inception. As Alfred Talke Jr, grandson of the founder and a member of the
executive management of the family-owned firm, says: “When my grandfather founded Talke, he saw his primary task as being to develop solutions to the challenges facing his customers. We are continuing this selfconcept as we embrace the future and make logistics a success factor for our customers.”
Talke’s newly formulated mission statement commits the company to sharpening its focus on its customers and their requirements. But it also leans on the long-standing spirit, expertise and engagement of the global Talke team. Furthermore, as a family business, Talke says it is “aware of its special responsibility in ecological, economic and social terms”.
“The new brand expresses this more sharply defined self-concept in a visible way, consciously combining tradition and modernity,” the company states. So, rather than starting from scratch, the new brand and
livery retain the corporate colours but bring the identity up to date with sharper design. A new figurative element symbolises the ‘next level’ to which Talke wants to take its customers while the new slogan, “always a smart move”, expresses the company’s aspirations and makes a promise to provide its customer with the intelligent solutions they will need to continue taking them forward into a more connected world.
Given Talke’s track record over the past 75 years, its customers – which include more than half of the world’s 50 largest chemical companies – look well set to be able to continue to rely on the company. From one man and his truck in 1947, Talke now employs some 4,600 people in three continents around the world.
Today’s core competencies are transport, packaging, storage and handling of hazardous and non-hazardous substances in liquid, solid and gaseous states. Talke also advises on, designs and implements logistics processes, buildings and facilities, something it has been doing since the 1950s. Digital services round out the portfolio of customised customer solutions.
“Offering all these competencies from a single source along the entire supply chain is a unique selling point of Talke and a key customer benefit,” the company states. www.talke.com
Passing the famous Castle “Pfalz”, since six centuries safe in the waters of the River Rhine, one of Europe´s busiest waterways – the new gastanker M/T “Slot Dover” from GEFO. Four new sister vessels in 2022 and 2023: Slot York, Schloss Imola, Schloss Quedlinburg, Schloss Tramontana. All five new gastankers with Stage V engines according to new EU-standards and SCR-Catalysts. Most modern technology sets new benchmarks in their class by reducing hydrocarbons by 81 %, nitrogen oxides by 97 % and particulate matters by 95 %.
One tanker of the fleet of 150 tankers belonging to GEFO. 26 new buildings to reduce pollutant emissions. Which tanker will sail for you?
INDUSTRY IS WAKING up to the problems that might be caused should authorities in Europe and North America introduce a ban on products containing perfluoroalkyl and polyfluoroalkyl substances, collectively known as PFAS, due to their persistent effects on the environment and human health. PFAS are widely used in everyday items and, in some industrial applications, perform a critical function that will be very difficult to replicate. One of those applications is in sealing elements, which employ PFAS as they are effective over a wide temperature range and offer excellent chemical resistance. In tank
containers, for instance, PFAS material can be found in seals and gaskets in the valves, outlets and manlids. The International Tank Container Organisation (ITCO) is taking the threat of the disappearance of PFAS materials seriously and has published a case study to press its claim that, in terms of sealing element materials, PFAS must be designated as ‘materials of essential use’.
Tank containers are designed according to stringent regulations, not only those that govern the transport of dangerous goods
(IMDG Code, ADR, 49 CFR, etc) but also ISO standards, the ASTM Pressure Vessel Code and, potentially, other national regulations. Those regulations specify that tanks must be able to contain their product over certain temperature and pressure ranges, so all the equipment fitted to tanks needs to be able to meet those limits. Seals and gaskets are, therefore, critical to meeting the regulations, which exist to ensure the safety of life and protection of the environment by mandating proper containment of the lading under the expected conditions of transport, as well as during an accident.
Metallic valves and other equipment use sealing elements, manufactured of substances such as polytetrafluoroethylene (PTFE), fluorinated ethylene propylene (FEP) or perfluoroalkoxy alkane (PFA), each of which falls under the heading of ‘PFAS’. Gaskets are usually manufactured from compressed non-asbestos fibre (CNAF) and fitted with a PTFE envelope to align with the sealing face. For manlids and other access hatch seals, a PTFE sheaf bonded to a nitrile core or braided polypropylene yarn impregnated with PTFE is used.
Tank containers must be designed to transport a wide range of chemicals, which requires the sealing elements to be compatible over the range. This is achieved by currently manufactured PFAS sealing materials. Similarly, valves are manufactured to meet the required temperature range of -40°C to +200°C (those for cryogenic gases must work down to -150°C) and the sealing elements must also perform over this range.
Sealing elements must also be durable and capable of withstanding a degree of handling damage. In addition, sealing materials should not absorb the substances being transported. In today’s industry, sealing materials that are manufactured from or include PFAS achieve all of these demands and have been shown to be safe and effective. Moreover, ITCO points out that the materials used are in solid milled and cut form, which does not shred and degrade into particles that could detrimentally affect the environment. The total volume of valves and gaskets used by the tank container sector over the course of a year is estimated at some 230 tonnes.
PFAS • THE TANK CONTAINER INDUSTRY IS ALARMED AT THE PROSPECT OF HAVING TO ADAPT TO DIFFERENT SEALING MATERIALS AND IS CALLING ON REGULATORY AUTHORITIES TO RE-THINK THEIR STANCE
There are no alternative materials that provide the crucial performance range achieved by existing specified solid state PFAS sealing elements, ITCO stresses. Some of the non-PFAS alternatives that have been researched could be economically beneficial except that the operational cost resulting from risk of leakage from an inferior material would by far exceed any saving. Furthermore, alternative materials are technically unsuitable in many required applications and therefore are not feasible alternatives.
For instance, ultra-high molecular weight polyethylene (UHMW-PE) has been investigated, as it has good resistance to wear and impact, is highly resistant to corrosive chemicals and is relatively low-cost. However, its temperature range is limited, with a
maximum of 135°C, and its chemical resistance falls at high temperatures. It cannot therefore be seen as a direct replacement for existing sealing materials; furthermore, as with all alternative materials, it would have to undergo extensive type testing and field testing before use.
PVC has too narrow a temperature range to be considered and is itself regarded as a substance of very high concern, so can be discounted. Polypropylene has a slightly wider temperature range but still not sufficient to meet the needs of the tank container sector.
Some silicone grades have a temperature range of -55°C to +300°C and can be used within sealing elements in certain applications but are not resistant to many of the chemicals transported, including most solvents and hydrochloric and hydrofluoric acids. The lack
of hardness also restricts the use of these material for some sealing elements. Elastomeric compounds such as silicone, nitrile and neoprene, can also be regarded as bio-accumulative and toxic to the environment.
In addition to these issues, the use of any alternatives to current sealing materials would inevitably reduce effectiveness, opening up the environment and personnel to contamination with potentially hazardous substances; further, they would need to be replaced more frequently, again potentially exposing workers to additional risks.
Ultimately, a restriction on the use of PFAS in sealing materials will result in a higher level of risk than currently prevails and ITCO calls on regulatory bodies to ensure that PFAS may continue to be used.
www.itco.org
The Mouvex® B200 Flow Control oil-free screw compressor delivers high flow rates in a rugged design that’s lighter than competitive models. The “plug-and-play” installation requires no drive shaft, as well as no mounting bracket and is fully coated for corrosion resistance. The B200 delivers all of this with a 3 year warranty.
See how much faster you can unload: mouvex.com/B200
THE COVID-19 PANDEMIC , extreme climate events, Brexit and many other unusual events have resulted in unprecedented issues for logistics providers, adding complexity to what they do and impacting the very basis of their business: moving chemicals in bulk from A to B.
Drivers are a crucial element of the chemical logistics supply chain. They are highly trained and use a specialised skillset to safely complete the first and last steps of any delivery at customer plants either loading or discharging tanks. But the Covid pandemic had a major impact on driver availability – an issue that has been building across the entire haulage community for many years but has now been brought to a head.
A reduction in capacity across all sectors of the driver population has occurred due to driving no longer being seen a job of choice
within the workforce. This has been compounded by the impact of Covid, which saw many existing drivers move out of the chemical industry and into consumer-facing driving roles such as home delivery.
Recruiting new drivers into the industry has been a challenge. Increasing driver wages is the most obvious first step that most hauliers took. Suttons went above and beyond that by improving working conditions for its drivers, investing in the fleet by adding the latest models of Volvo FH trucks, which provide greater comfort, and introducing in-cab technology to streamline drivers’ jobs and letting them focus on what they want to do: drive.
Another major issue the European logistics industry is currently facing is the new customs
requirements that were introduced following Brexit. This has led to additional transit times across the industry adding three or four days to the movement of goods between the UK and EU. New measures and protocols also require more time and effort from operators and planners to address.
Additional transit times have caused capacity issues in terminals, which are rapidly filling up due to the longer clearing time for tanks and containers. This has naturally led to a backlog of tank availability across the entire supply chain.
Suttons introduced a number of new processes and ways of working, including the recruitment of an entirely new customs team, to support its operations. It has established EDI links with customers and customs partners in Europe to ensure product and customs requirement information is accessible instantaneously for all members of the supply chain. This automates certain customs processes and reduces the manhours the team spend on this task.
Suttons has also been pro-active in sourcing additional storage capacity outside of busy terminals and port areas to address the extended transit times. Finally, it has been offering customers, who are experiencing plant shutdowns as a result of the delays at ports and terminals, alternative storage solutions, to help offset disruption to their operation.
“While there was no easy solution to the increased hurdles that Brexit introduced, by pro-actively introducing a new team of customs agents into the business, sourcing additional storage spaces in the event of backlogs at ports, and offering our customers access to our tanks in the event of emergency plant shutdowns, we have mitigated the brunt of the problems caused by Brexit, and have adapted to the new normal,” the company states. “The key to overcoming factors outside our control, and to continuously provide great customer service, is adaptability and communication. Not only with our customers, but internally, with colleagues and drivers, and externally with our partners and suppliers in the supply chain.”
www.suttonsgroup.com
STRATEGY • SUTTONS INTERNATIONAL REPORTS HOW IT HAS FACED UP TO THE RECENT TURBULENCE IN GLOBAL SUPPLY CHAINS, WITH THE FOCUS VERY MUCH ON ITS PEOPLE
DIGITISATION • DUTCH IT SPECIALIST SYNDA IS ON A MISSION TO ADD VALUE TO THE TANK CONTAINER MARKET BY PROVIDING SEAMLESS AND IMMEDIATE DATA TRANSFER BETWEEN ALL PARTIES
TANK CONTAINERS OPERATE both internationally and intermodally and, as a result, there can be a large number of parties involved in any supply chain. Furthermore, a tank in international transport is often unaccompanied, meaning it has to speak for itself if those responsible for its movement have any chance of knowing where it is and when it is due at its next milestone.
Although this has been well recognised for many years, getting all parties together to share information in real time has been a problem. There are plenty of issues – not just trust between the players and the role of the platform that forms the basis of communication between them, but also the lack of standardisation in IT systems. A new and neutral entrant to the market now seems to be gaining some traction.
The tank container supply chain will involve a consignor and a consignee, as well as the tank container operator – possibly lessor as well – along with the transport company or companies involved in the movement, tank depots, cleaning and repair stations and inspection bodies. Synda, established by a Netherlands-based IT developer Dutch Grit, aims to change the information exchange model from one-to-one to one-to-many, allowing seamless exchange of data between all parties, whether they themselves are members of Synda’s network.
Among the early examples of Synda’s approach involves Peacock Container, a major tank lessor, and Bureau Veritas (BV), which provides Peacock with testing, inspection and
certification services. Peacock reports that, by using Synda’s platform, periodic test certificates generated by BV can be automatically uploaded into Peackock’s fleet management portal and made available to its cliens immediately. This reduces the possibility of errors being introduced during manual data transfer and “dramatically improves” the availability and reliability of critical documents.
“This connection, the first of its kind in our industry using Synda technology, was developed in close corporation with BV and Synda,” says Dirk Jan Journee, Peacock’s technical director. “The time between completion of tank testing, inspection and certification by BV and the moment the certificate is available to our customers has been reduced from days to hours. This provides great added value to our customers in a supply chain environment which is becoming more volatile and ad-hoc focused. We believe this connection will be the first of many similar steps to automate repetitive communication flows in our industry and create efficiencies for all parties involved throughout the chain.”
Sanne Bruyninckx, operations manager of BV in Belgium, adds: “Within the Transport & Logistics Division of Bureau Veritas we are also enthusiastic about the performance of the Synda platform and its ability to both speed up the availability of our vital technical inspection data and to reduce errors in data entry by avoiding manual replication of such data. We welcome any technical innovation to support and to facilitate our customers’ data access as much as possible.”
Steven Somer, product owner of Synda, explains further: “We are pleased to connect both BV and Peacock to the Synda valueadded network. Working with both teams was a great cooperation in our mission to simplify and optimise the data transfer between stakeholders in the tank container industry. The simplified process and minimalised cycle time allow for more efficiency. This is how we envision a tank container industry where all stakeholders can profit from the availability of tank container data.”
peacockcontainer.com www.synda.global
Fort Vale introduced the Liquid RAILTYT range in 2014 and was an immediate success - we have now launched the Gas RAILTYT range to complement it.
The large scale of our UK factory, coupled with the latest production technology, gives us an unrivalled manufacturing capacity allowing us to keep even the largest wagon builders in Europe supplied with a range of equipment that is a byword for innovation and reliability.
Manufactured in stainless steel (anything less increases the likelihood of corrosion) ensures longevity of equipment whilst minimising down time and M&R costs. The Y-valves have a lockable handle function for security and safety, whilst they are bellows operated and are rated to a MAWP of 30Bar - higher than any others on the market - which means you can relax for the present, and the future.
Safety, reliability and significantly increased flow rates - all with global support from Fort Vale. Not every company can do this. Not every company is Fort Vale.
TWO AND A half years of living in a pandemic has upset our lives and our way of life, changing our habits and transforming our homes into places of work. For transport planners, one of the major problems caused by the Covid-19 response has been the worsening of the driver shortage – a situation that has only been worsened further by the conflict in Ukraine. Europe and North America are lacking tens of thousands of truck drivers now, with little prospect of improvement.
The risk of finding supermarkets with empty shelves or filling stations with no fuel is therefore not something from a science fiction movie but something dangerously realistic.
The current lack of drivers has distant origins: a generation gap was created among the driver fraternity and the progressive ageing of existing drivers has come up against the difficulty in replacing those who retire with young people. Initially western Europe filled the gap with drivers from eastern European countries but improving economic conditions in their home countries prompted many to leave and the RussiaUkraine conflict has blocked new arrivals.
Various trade bodies in the logistics sphere, including the European Chemical Transport Association (ECTA), have begun to analyse the problem from a new perspective: drivers
represent a category of workers that are indispensable for our way of life; therefore, despite technological advances such as self-driving vehicles and drone deliveries, we cannot stand back and witness their progressive disappearance.
So, what is there to be done? To start with, we can look at those situation that cause dissatisfaction for drivers and lead them to want to leave the profession; this involves not just transport companies but all stakeholders, including customers.
In recent years, customers have demanded even greater flexibility from their logistics service partners (LSPs) in order to improve their own internal processes. This has led to exasperating slot planning, limited hours, cumbersome processes and difficult access to sites – a series of measures which, while indeed optimising customers’ operations, have complicated the lives of drivers.
Any transport company and its drivers can talk about waiting days if the loading or unloading slot is lost, even for a few minutes; waiting for hours due to a lack of availability of loading operators, laboratory analysts or other staff. Sometimes, when it seems the driver can start to load or unload, it is not possible because site staff cannot work overtime and the driver has to wait till the next day.
These are situations at the limit - but unfortunately they do happen, especially with Covid-related restrictions. Drivers often also tell us about the difficulties in finding rest areas where they can refresh themselves, after a working day that can last up to 15 hours, between driving and other commitments.
One of the proposals in ECTA’s position paper on driver shortage is that of evaluating plants where product gets loaded or unloaded from the point of view of the driver, who can assign a ‘score’ via an app, taking into account compliance with safety procedures, waiting times, the way drivers are treated, services available for drivers, and so on. All this could contribute to improving drivers’ working conditions and, with everyone’s commitment, to make this activity more attractive for young people and help the generational turnover,
Otherwise the risk is that, within a few years, with future retirements, there will be difficulties in shipping any type of goods.
Italy-based Chemical Express, founded in 1979, provides tank containers and road tankers for customers in the chemical industry, and has been focusing on its drivers for many years. This means not only paying them well but giving them choice over their work – local, national or international – and providing modern, technically advanced and comfortable vehicles, as well as ongoing assistance and professional development, and the provision of accommodation when they run out of hours.
The company is also encouraging young people into the profession, offering training both on the basics – driving licence, CQC and
ADR certificate – but also for specific issues such as:
• Behaviour-based safety and loading/ unloading guidelines
• Transport regulations
• Safety topics (use of personal protective equipment, working at height, etc)
• Defensive driving
• ADR.
In this way, each driver will be fully equipped to carry out their job in a very professional way.
The driver shortage in Italy is not as severe as in some other European countries: the latest statistics indicate a shortfall of about 20,000 drivers, compared to 80,000 in Germany and as many as 100,000 in the UK.
Nonetheless, Italian operators cannot afford to be complacent.
One way around the driver shortage is to make more use of intermodal transport. The
challenges posed by the EU’s Green Deal to tackle climate change will certainly accelerate the shift but it will also allow drivers to focus on shorter journeys, leaving the long haul to rail or inland waterway transport, and leave them time to spend with their family and enjoy their private life.
In short, the goal is to make thousands of young people passionate about driving again, giving them both a very profitable job and a job that does not completely absorb their personal life, while ensuring working conditions in line with the expectations of a qualified role as a truck driver.
*Franceso Mattozzi is account manager at Naples-headquartered Chemical Express. ECTA’s Position Paper on driver shortages can be downloaded at www.ecta.com/ecta-positionpaper-on-driver-shortage/. www.chemicalexpress.it
SUPPLY CHAIN DISRUPTIONS over the past two years have opened the possibility to re-think the logistics chain. For the chemicals sector, bulk shipments have become either difficult to arrange or prohibitively expensive, with high seafreight costs and tight availability of bulk liquids storage, especially in Europe. Dachser suggests chemical shippers should take a leaf out of the automotive and healthcare sectors and consider LCL (‘less than container load’) or groupage for sea freight.
“The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations,” explains Michael
Kriegel, department head at Dachser Chem Logistics. Dachser already provides what it calls ‘consolidation boxes’, which allow its customers to pay only for the space they occupy in the containers; the system also provides a great deal of dependability while retaining flexibility.
Dachser says the groupage approach is suitable for the chemical industry, which places particularly high demands on safety and transparency during transport, though it is vital to partner with a logistics provider that has the experience to take care of those demands. Dachser established a purchasing partnership with the Verband der Chemischen Industrie (VCI), the German chemical industry association, in 2009; this alliance has expanded to cover groupage shipment from
Germany by sea and air. “Member companies of the association now benefit from globally standardised core services in the groupage network - transport, warehousing, and IT solutions,” Kriegel adds.
“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb and the environment,” says Claus Freydag, managing director of Dachser Air & Sea Logistics Germany.
“Dachser also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network.”
The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with all regulations governing the transport of dangerous goods.
For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimises utilisation of container capacity, which in turn provides economical transport costs. It also reduces risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.
“With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag adds. Indeed, last year Dachser shipped almost 20,000 m3 of dangerous goods as LCL loads in groupage containers, accounting for some 15 per cent of its LCL business out of Germany.
www.dachser.com
GROUPAGE • WHEN SUPPLY CHAINS ARE STRESSED, SPREADING THE RISK BECOMES ATTRACTIVE. THE CHEMICAL INDUSTRY SHOULD NOT OVERLOOK THE POTENTIAL OF GROUPAGE, DACHSER SAYS
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Broekman Logistics reports a strong recovery in business last year, with gross sales rising by more than 40 per cent from the 2020 level to reach €345m. Nevertheless, impairments and restructuring costs led to a negative net result. Further improvement in sales and a positive bottom line result are expected for 2022.
“We are pleased with this result. 2021 was a turbulent year for us. The pandemic caused disruption for the entire logistics industry, as it did for us,” comments CEO Rik Pek. “Nevertheless, we did well. In 2022, we expect further growth in sales and also a recovery in results. This is the effect of our changed strategy. Our focus is to provide solutions for specific end markets. This is highly appreciated by our existing clients and also resulted in new, long-term clients at multiple locations.”
The increase in turnover is mainly due to “spectacular” growth in the Forwarding & Shipping division, where turnover almost doubled as Broekman was able to offer solutions to its clients in a tight market. It plans to grow its forwarding activities in India,
Poland, the Netherlands, Czechia and Belgium over the coming year. The Warehousing & Distribution division fared less well, with under-utilisation of capacity and poor prices. Broekman has this year addressed the situation with the sale of the former VLS activities in Antwerp and its departure from bulk chemical operations, a move that will have a positive impact on the result for 2022. www.broekmanlogistics.com
MIMU Tank Leasing has added a number of multiple-element gas containers (MEGCs) to its fleet. The units are equipped with Type IV composite cylinders, designed to transport or store hydrogen at high pressures.
“As a tank container lessor, we cannot ignore the influence hydrogen will have in the foreseeable future regarding renewable energy,” the company states. “To accommodate the increasing demand from our customers to properly handle, transport or use H2 as a fuelling method, MIMU Tank Leasing is now offering our new composite Type IV MEGCs
for lease.” MIMU says the units are perfect for last mile delivery, storage or to supply commercial fuelling stations.
mimu-tankleasing.com
Hupac has formally opened its new transhipment terminal in Brwinów, Poland. Located some 25 km south-west of Warsaw, the facility (below) is designed to shift up to 180,000 containers per year from road to rail, helping the sustainable development of goods transport in central and eastern Europe.
“In the first phase, we will put two transhipment tracks and three service tracks into operation. Loading units will be handled by reach-stackers. In a second phase, we will scale capacity and install another three transhipment tracks as well as powerful gantry cranes,” reports Michail Stahlhut, CEO of the Hupac Group.
The Brwinów terminal creates real opportunities for the further development of combined transport, says Renzo Capanni, who took over responsibility for Hupac Intermodal’s Shuttle Net North East business area at the end of August. “Until now, there were no capacity reserves for intermodal transport within 120 km of the Polish capital. The new terminal creates prospects for the growth of the entire sector.”
www.hupac.ch
Eurotainer has established a new office in the UAE to serve its clients and new business in the Middle East, Africa and India; the company notes that business in these regions has grown considerably in the past ten years, with rising demand for specialised tank containers for the transport of liquids, gases and cryogenic products as well as smaller portable tanks.
Eurotainer’s new regional team is based in Dubai and headed by Dennis de Goey, and will act as the central hub for customers in the area.
www.eurotainer.com
Avenir LNG has signed a joint collaboration agreement with Prvo Plinarsko Drustvo (PPD) that focuses initially on the sale and distribution of LNG by truck and small-scale vessel from the Krk LNG terminal in Croatia to off-grid industries, power plants, and marine bunkering and truck refuelling stations in northern Italy and eastern Europe. The two companies have already collaborated on small-scale reloading of LNG from the site in May 2021.
Under the agreement, the parties will also evaluate the feasibility of developing a long-term solution (together with partners) via an LNG breakbulk terminal along the Adriatic Sea to service the underserved eastern European market.
“The combination of Avenir’s small-scale LNG expertise and PPD’s local energy knowledge will allow us to reach strategic
growth markets around the Adriatic Sea by small-scale LNG supply chains and further enable the switching to cleaner, greener and more sustainable forms of energy,” says Peter Mackey, CEO of Avenir LNG. avenirlng.com
The International Tank Container Organisation (ITCO) has announced that its annual members meeting will return to Amsterdam this year, taking place at the Hilton Hotel at Schiphol on 25 October. As well as reports on ITCO’s recent and future activities, delegates will hear from Hans Augusteijn, recently appointed as president of Stolt Tank Containers, with his views on industry trends, and Menno Douwes Dekker of Hoyer on the safe use of tank containers for the transport of gases. Colin Garnett of Boasso Global will cover issues for tank cleaning companies and other service providers, while Paul Gooch will lead a session looking at the various safety initiatives being undertaken by ITCO members. Naturally, there will be receptions before and after the event, which is sponsored by CIMC Tank. Full information can be found
here: https://international-tank-container.org/en/ events/itco-2022-members-meeting-amsterdam
UK-based Airedale Group has announced a £2m investment programme as part of its ten-year growth plan, which includes a commitment to increasing the use of technology in the business. A number of initiatives are planned, including new plant installations and acquisitions, with action already underway aimed at creating sustainable growth and smarter systems, while maintaining the core values of the company.
“Over the coming months we’ll be revealing the individual projects which are helping to boost our strategy of continuous improvement,” explains operations director Daniel Fox. “We’ll be able to deliver sustainable and organic growth through lean manufacturing projects and circular economy schemes which will generate significant commercial returns.”
Airedale is are also planning to expand through carefully selected acquisitions to enhance its product offering and develop new distribution channels. A number of newly created roles and additions to its fleet of privately owned vehicles are also in the pipeline.
“As an independent, family-run business, we have the agility to move quickly, which is essential in fast-moving industries like chemical manufacturing and has helped us react to changes and opportunities in the industry,” adds group CEO Chris Chadwick. “We have identified a number of acquisition opportunities and will be adding to the Airedale Group to ensure our growth, expansion and increased presence in the market. Our previous five-year plan concluded last year and we successfully conquered new markets and achieved product diversification and now we’re excited to embark on the next chapter of the company’s almost 50-year history. In the last decade, we have grown from Airedale Chemical into the Airedale Group, which includes four business and a charitable foundation.” airedale-group.com
One of the world’ s leading tank container operators
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Brenntag has acquired Prime Surfactants, a leading distributor of surfactant specialties for the UK personal care market. The Leeds-based company generated sales of some £22m in 2022.
“Prime Surfactants is dedicated to quality and technical support, has a strong brand recognition and deep-rooted supplier and customer relationships,” says Anthony Gerace, senior vice-president, M&A at Brenntag. “We are excited about the fit within Brenntag Specialties and look forward to jointly leveraging these impressive capabilities.”
Henri Nejade, COO of Brenntag Specialties, adds: “The company has developed a leading position for surfactants in the Personal Care market in the UK and is a great addition to our Personal Care and HI&I business unit of Brenntag Specialties. This acquisition enhances our product and service offering to customers in the UK and underlines our ambition to further strengthen the specialties business of our focus industries.”
www.brenntag.com
Stockmeier Group has acquired a 51 per cent stake in Gamma Chimica, Italy’s leading chemical distributor, and plans to acquire the remaining shares within two to three years. “It is an important step for us to be represented on the Italian market with our own company,” explains Peter Stockmeier, managing partner of the Stockmeier Group. “With this acquisition, we are further expanding our position as a distributor of chemicals in Europe. We are delighted to start a path of close collaboration with the current shareholders Claudio Bombardieri and Giuseppe Mearini.”
“Joining an international group like Stockmeier is a great opportunity for Gamma Chimica, which will allow us to enhance the important heritage of relationships with
customers and suppliers that we have built over the years, further developing our offer abroad,” adds Mearini, who will continue to act as CEO. “We have a solid reputation, which is based on some recognised strengths: complete availability to end customers, timeliness in deliveries, availability of materials always in line with high quality standards on which we carry out the most accurate safety checks, attention to the environment and sustainability, from the search for raw materials to transport.”
Gamma Chimica achieved turnover of €275m in 2021, has 52,000 m2 of warehouse capacity and 3,000 tonnes of tank storage. Its portfolio covers some 2,000 raw materials, distributed to more than 3,000 customers, of which 95 per cent are in Italy. The new arrangement with Stockmeier will help it expand its market reach. www.gammachimica.it
IMCD Japan has acquired Kuni Chemical, which specialises in the distribution of chemicals for industrial applications. The company is based in Osaka and last year
generated revenues equivalent to some €18m.
“IMCD Japan was established as a greenfield in 2016, and this acquisition marks a major milestone as we continue to grow in the country,” says Shunsaku Kubo, managing director of IMCD Japan. “Kuni Chemical adds a new business segment to IMCD with an entry into the Japanese coatings and construction markets and also complements the portfolio of our Advanced Materials business.”
IMCD has also agreed to acquire PromaPlast Resinas and PromaPlast USA, which distribute advanced materials to the Mexico and US markets. “The acquisition of PromaPlast is an exciting step into a major new market for IMCD México and further expands our capabilities in the US,” says Olivier Champault, business group director of IMCD Advanced Materials. “PromaPlast is a complementary addition to our global network of advanced materials experts and underscores our commitment to expanding opportunities for customers in Mexico and suppliers seeking a strong, reliable channel partner in the region.”
“This acquisition is a natural progression into the next phase of PromaPlast’s 25-year history,”
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adds Ricardo Méndez, general manager of PromaPlast. “Our market reputation and steady growth throughout the years have led to this moment to join a global market leader. PromaPlast’s shareholders are pleased to find in IMCD a company with integrity that will value our talent and further develop the business and partnerships we built throughout the years.” www.imcdgroup.com
Caldic has acquired Avatar Corporation, an Illinois-based distributor of specialty food ingredients and custom solutions to the North American food industry.
“We are delighted to welcome the Avatar team aboard Caldic,” says Anne Brown, CEO of Caldic North America. “Avatar’s state-ofthe-art manufacturing facility offers liquid blends, packing and warehousing as well as a dedicated R&D laboratory, which enables us to provide our North American customers with a broader product portfolio as well as custommade solutions. The professional team from Avatar has built a strong foothold through the development of an innovative product and services portfolio that will enhance our ability to inspire solutions for the food processing industry in our region.”
“The team at Avatar are excited to join Caldic. Our customer-centric culture and our strong drive to innovate and deliver custom solutions is fully aligned with Caldic’s strategy and values,” adds William Kersey, Avatar’s executive vice-president of operations. “Mike Shamie, the founder of Avatar, who sadly passed away in August 2020, would be proud that the company he built, will continue to grow and prosper under Caldic’s leadership. Our combined assets and expertise will enable us to work with our customers across the Americas to realise the opportunities to drive a more sustainable business going forward.”
www.caldic.com
Krahn Chemie has bundled its Spanish activities into a new subsidiary, Krahn Iberia, following its acquisition of Pemco Trigueros, a specialist in the distribution of additives and base oils, in January this year. Krahn Iberia also takes over the Spanish sales office, formerly operated by sister company Albis.
“Forming Krahn Iberia is an exciting milestone. Our local managing director José Manuel Trigueros is very experienced in the industry and his knowledge of the local needs is key for our presence there. We see a lot of potential and are committed to invest in a setup that serves our producers and customers in Spain and Portugal best,” says Dr Rolf Kuropka, managing director of Krahn Chemie. www.krahn.eu
SK Capital Partners, a private investment firm focused exclusively on the specialty chemicals,
materials and pharmaceutical sectors, has completed the acquisition of Ohio-based Valtris Specialty Chemicals from HIG Capital. “Valtris is a well-regarded producer of specialty additives that improve performance and deliver critical attributes for its customers,” comments Jack Norris, a managing director of SK Capital. “We are excited that Valtris will be joining the portfolio of SK Capital, where we have significant experience in the additives markets through multiple prior investments.”
Paul Angus, Valtris’ CEO, adds: “It has been a pleasure to work with HIG. Together, we have built a global leader in specialty additives that is well positioned for robust future growth. SK’s investment is a strong validation of our company and talented team and their industry and operating experience make them the ideal partner as we launch an exciting new chapter for Valtris.”
www.valtris.com
THE HEATWAVE EXPERIENCED over much of Europe in the summer caused major headaches for inland waterway operators, with water levels on the Rhine and Danube systems reaching perilously low levels. The resulting reduction in carrying capacity caused problems for shippers too, across all industrial and agricultural sectors, as well as those businesses that rely on inland waterway transport to receive their goods.
The European Barge Union (EBU), which represents inland navigation operators, says that, if the sector is to achieve the increase in modal share foreseen under the EU Green Deal and other sustainability-linked initiatives,
more investment in infrastructure is sorely needed if the reliability of inland waterway transport is not to be undermined.
For instance, during July and August, the water level at the Kaub stretch of the Rhine, between Mainz and Coblenz, fell dramatically to critical levels. Vessels were only able to carry less than 25 per cent of their normal capacity, at a time when demand was seasonally high for all kinds of materials and had been boosted by grain exports from Ukraine, unable to reach the market through its normal channels.
The situation on the Danube system was exacerbated, not just by increased business handling grain moving out of Ukraine but also,
EBU says, by a lack of maintenance of the waterway by the authorities in Bulgaria, which also led to a complete closure in early July. This reverberated across the entire multimodal corridor, with goods not able to be in the right place at the expected time.
“The current situation once again proves the important role inland waterway transport is playing as part of the supply chain,” says Theresia Hacksteiner, EBU’s secretary-general. “EBU therefore continues to call upon the national authorities to undertake all necessary efforts to guarantee an unhindered passage of vessels on all major European waterways. Obviously, the lack of investment in waterway infrastructure in the past years has led to the current situation. A promoted increase of modal share of inland waterway transport goes hand in hand with commitment from the authorities, which currently is lacking.”
The inland navigation sector relies on a safe, cost-effective and climate-resilient network of infrastructure on the 40,000 km of navigable waterways in Europe, which serve 250 inland ports. Some 550m tonnes of goods are carried each year, and the rivers and canals are also increasingly important for passenger transport and cruising. Contrary to the situation on the roads, there is – in normal times – plenty of capacity, which offers the potential for a significant modal shift in line with the aims of the EU Green Deal. “However, due to a lack of investment in waterway infrastructure and neglected maintenance, situations of low water periods are emerging more frequently and undermining the reliability of the inland waterway transport sector,” EBU states.
As a result of this, the expected increase in modal share for inland waterway transport has not been achievable in recent years due to what EBU calls “neglected waterway infrastructure maintenance” and a lack of investment. EBU is calling on all involved parties, especially the EU member states with relevant waterway infrastructure, to take responsibility for fulfilling their duties; it also calls on the European Commission and the river commissions to take a strong coordinating role in the process.
www.ebu-uenf.org
INLAND WATERWAYS • SUPPLY CHAIN DISRUPTION HAS EXTENDED TO EUROPE’S RIVER AND CANAL NETWORK THIS SUMMER, WITH OWNERS NOW CALLING FOR CONCERTED ACTION
OPPOSITE: BRENNTAG NA’S MECHANICAL ENGINEER MATTHEW SPARROW KNOWS HOW CHALLENGING THE SAFE AND EFFICIENT DELIVERY OF DIESEL EXHAUST FLUID CAN BE
THE FIRST HALF of this year witnessed a significant improvement in freight rates for chemical tankers on almost all trade lanes, and especially during the second quarter. The market has been supported by an improvement in the clean petroleum product (CPP) sector, pulling swing tonnage back into the products market, combined with a reduction in sailing speeds to help temper the effect of higher bunker fuel prices and meet increasingly stringent emissions limits.
In its mid-year report, Odfjell notes that around 27 per cent of the swing fleet was trading in chemicals or vegoils in late 2019, double the historical average, but that, by mid-2022, that figure had fallen back to around 17 per cent. Meanwhile, average sailing speeds fell by 6.3 per cent over the period from 2016, effectively reducing tonnage supply. Odfjell also points out that speed levels have remained low through the middle of 2022, despite sharply increasing spot rates.
Data from broker Clarksons indicate that spot freight rates west of Suez were flat to firm through 2021 and began to increase in the first quarter of this year. By the start of the third quarter, rates on the US Gulf to Europe route reached around $85/tonne, compared to under $60/tonne at the start of the year and $50/tonne at the start of 2021. Westbound transatlantic rates were also higher, starting 2021 at under $35/tonne and pushing close to $50/tonne by mid-2022. East of Suez, rates for cargoes loading in south-east Asia for delivery to Europe surged during the second quarter, reaching more than $180/tonne by July, compared to some $75/tonne at the start of 2021, with most of this increase coming from March onwards.
Those higher rates east of Suez have prompted owners to reposition some tonnage, further tightening the Atlantic market. Odfjell calculates that the volume of stainless steel tonnage calling in the ARA ports fell by 9 per cent between first half 2021 and second half
CHEMICAL TANKERS • SHIPOWNERS ARE ENJOYING GOOD EARNINGS FOLLOWING A LONG MARKET LULL. BUT COSTS ARE UP AND THERE ARE ECONOMIC WORRIES TOO, ALTHOUGH THE FUNDAMENTALS ARE GOOD
Undoubtedly an architectural highlight: the Erasmus Bridge in Rotterdam – and in full swing and fully loaded M/T “Botticelli”, the newest chemical tanker of GEFO, equipped with eight stainless-steel tanks, built in 2021. Four additional stainless-steel tankers will join in 2022, all named after painters who were ahead of their time: Canaletto, Tintoretto, Allegretto and Benedetto. All four new chemical tankers with Stage V engines according to new EU-standards and SCR-Catalysts. Most modern technology sets new benchmarks in their class by reducing hydrocarbons by 81 %, nitrogen oxides by 97 % and particulate matters by 95 %.
One tanker of the fleet of 150 tankers belonging to GEFO. 26 new buildings to reduce pollutant emissions. Which tanker will sail for you?
2022, with Ulsan witnessing an 11 per cent increase over the same period.
Higher rates have to some extent been eaten up by higher costs. Just as for the domestic consumer, shipping companies have faced higher energy prices and general inflation.
Stolt-Nielsen notes that it was paying an average of $417/tonne for bunker fuel in the first quarter of 2021, a price that almost doubled to $827/tonne by the second quarter of this year. Nearly two-thirds of its bunker consumption is covered by escalation clauses (including almost all of its contract of affreightment (COA) business), so those
higher prices are reflected in its revenues. Nevertheless, Stolt-Nielsen paid out a net $0.5m more in the second quarter of this year than it did in the first.
Furthermore, other costs are rising too. The restrictions imposed by the Covid-19 pandemic have made crew changes more difficult, leading to additional transport costs for crew, and inflation is affecting the price of other consumables, such as lube oils, paints and meals. Stolt-Nielsen’s second quarter owning expenses were $2.5m higher than in the first quarter.
Overall, though, Stolt-Nielsen’s second quarter operating revenues, which rose by 16 per cent compared to the prior quarter to $365.4m, were more than matched by a 28 per cent increase in EBITDA to $79.9m and a jump in operating profit from $25.0m to $40.8m.
In more ‘normal’ times, such market conditions might be expected to prompt an
increase in newbuilding contracts. However, there are currently a number of factors mitigating against such a course, not least the high level of uncertainty over future environmental targets in the maritime industry. It is clear that the International Maritime Organisation (IMO) is going to impose stricter emissions limits on its path to achieving a net-zero shipping sector but the timing and extent of those limits are still vague.
Any newbuilding orders placed today will see ships being delivered no sooner than late 2024 or, for high-ticket stainless steel chemical tankers, late 2025, which would mean they may still be trading when IMO’s 2050 targets are to be met. As a result, newbuilding activity in the sector is at its lowest level since the mid-1990s. StoltNielsen calculates that the current orderbook stands at 7.2 per cent of the active fleet, of which more than 80 per cent is for stainless steel tonnage.
Odfjell calculates that tonne-mile demand in the chemical tanker market increased by around 12 per cent between 2018 and 2021 and forecasts a similar increase, running at an average of 4 per cent per year, over the period to 2024, supported by new production capacity in the US and Middle East that will feed product into longer haul routes. Further, as chemical production becomes more tightly focused on cost-advantaged locations, it suggests that a higher share of global chemical demand will be met by seaborne imports.
On the supply side, the net growth in the chemical tanker fleet over the same period (2018 to 2021) was 10 per cent, ending 2021 at 30.2m dwt. While that should expand slightly to 30.8m dwt by the end of this year, Odfjell sees no further net fleet growth likely during 2023 and 2024, with a limited orderbook and a significant number of older vessels likely to exit the core trades. In total, therefore, the next two years could see an even tighter market and, most likely, support for even higher freight rates. Indeed, the major owners are already reporting strong interest in
GREEN METHANOL HAS BEEN IDENTIFIED AS A SUITABLE LOW-CARBON FUEL FOR CHEMICAL TANKERS, THOUGH SOME SMALLER PLAYERS ARE ALSO LOOKING AT LNG AND LBG
32 HCB MONTHLY | OCTOBER 2022
renewals for contracts of affreightment (COAs) at higher levels, with Odfjell noting that there is not the fleet capacity to meet the level of demand.
Looking ahead, operators are also sanguine about the potential impact of any economic slowdown, as high energy prices look likely to persist at least through 2023 and inflation is becoming noticeable around the world. Forecasts point to slowing GDP growth in real terms, with the probable response of tightening monetary policy. Odfjell notes that demand for the seaborne transport of chemicals in bulk has become decoupled
from GDP growth and that, given that new chemical production capacity, especially in the Middle East, is located away from areas of demand, any global recession should not have a major impact.
Furthermore, chemical tankers will be responsible for moving at least some of the new energy products needed to meet the global decarbonisation targets, especially ethanol and biofuels. Chemical tankers are already the main medium for transporting methanol in bulk, another trade that should benefit from the sustainability agenda, so long as it is derived from renewable sources (including both sequestered carbon dioxide and non-hydrocarbon electricity generation).
Indeed, when it comes to alternative ship fuels, methanol seems to be a leader for chemical tankers. As it is with LPG-fuelled propulsion for LPG tankers, or the use of boil-off gas in LNG tankers, those ships that are designed to carry methanol – and they tend overwhelmingly to be in dedicated methanol use, given the great care that needs to be taken to guard against product contamination – have been the first to start using methanol to power their main engines. Proman Stena Bulk, a joint venture between shipowner Stena Bulk and methanol producer Proman, already has two such MR tankers in the water, delivered earlier this year, with another four on order for delivery by 2024.
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year, up 3.9 per cent compared to 2021 and up 4.1 per cent in tonne-mile terms. The consultant expects growth to be only slightly lower in the next two years. Seaborne trade in the main petrochemical gases is projected to be 16.4m tonnes this year, up 1.4 per cent on 2021 levels in both tonnage and tonne-mile terms.
THE STARS HAVE aligned for gas tanker operators over the past year. In general, surging demand for LPG around the world, alongside new export volumes adding to tonne-mile demand and a fairly restrained orderbook (except for very large gas carriers – VLGCs), has prompted a sustained rise in vessel earnings.
LPG itself is certainly enjoying something of a moment, being seen as a stepping stone towards decarbonisation by offering an alternative to high-carbon fuels in domestic, industrial and marine applications; it is also in demand from petrochemical manufacturers, either as an alternative feedstock to naphtha
(when the price is right) and as the main feedstock for the new breed of relatively simple propane dehydrogenation (PDH) polypropylene manufacturing units currently springing up around the world – and in China in particular.
And, while LPG is the main cargo for gas tankers, they also carry petrochemical gases and ammonia, and it is in this trade that the industry is placing its faith in the medium term, with ammonia widely tipped as an important product for the decarbonised future as a carrier for hydrogen.
According to Drewry, global LPG seaborne trade is expected to reach 116.9m tonnes this
The gas tanker sector itself is also advantaged, being quite highly concentrated, with relatively few major operators. Outside of the VLGC sector, where owners have been confident in continued fleet growth on the back of strong demand in Asia and new export volumes from North America, newbuilding contracting has remained modest.
For instance, in the fully pressurised sector, BW Epic Kosan (BWEK), the largest operator, calculates an orderbook of 4 per cent of the existing fleet of 349 ships in the water. Over the period 2022 to 2024, fleet growth is expected to average 1.5 per cent in cubic capacity terms, discounting scrapping, which has averaged 2.0 per cent per year over the past five years. That includes the smaller end of the semi-refrigerated segment (under 13,000 m3) and there are, all told, some 26 vessels currently aged 30 or more, which are considered likely demolition candidates in the short term. Indeed, two were sold for demolition in July alone.
Given the projected rise in tonne-mile demand for gas carriers, that increasing tightness in the market is being reflected in freight rates, which this year have recovered well from a long-term market low that started in 2016. Timecharter rates across the small gas carrier segments are up on last year and now mostly just ahead of the ten-year historical average, thought the larger end of the fully pressurised segment took a little longer to reach that mark. That has come despite some weakness in demand in Europe and also in China, where economic activity has slowed following resurgence of the Covid-19 infection rates in some cities.
To some extent, those higher freight rates have helped compensate for rising costs, particularly for fuel and crewing. BWEK’s second quarter revenues this year came in at
GAS TANKERS • FREIGHT RATES ARE RISING AGAIN, BOLSTERED BY HIGHER LPG EXPORTS FROM NORTH AMERICA, THOUGH VOLATILITY AND UNCERTAINTY REMAIN. WHAT IS THE OUTLOOK?
$86.6m, up from $81.7m for the same period last year, though EBITDA was down by 5.7 per cent at $26.5m while net profit fell from $3.8m to $3.0m.
CEO Charles Maltby remains optimistic, however, saying: “Positive earnings momentum should follow as we exit negative summer seasonality. We observe the increase in global commodity prices and energy costs and are concerned about the impact on developing economies. However, the underlying positive fundamentals, alongside the diversity and flexibility we hold in in geography and commodity for our vessels provides options for the source of our fleet earnings.”
While BWEK dominates the smaller gas tanker sectors, Navigator Gas is among the leading specialists in the Handysize sector of vessels between 15,000 m3 and 25,000 m3 capacity. Navigator calculates a current fleet of 118 vessels in this size range, of which half are semi-refrigerated, 35 are ethylenecapable and 24 are fully refrigerated. Navigator currently has 39 of those 118 ships under its control. The current orderbook stands at just seven ships, equivalent to 6 per cent of the operating fleet.
Navigator’s seven fully refrigerated vessels (six of 22,500 m3 and one of 38,000 m3) are mostly working in the ammonia trades, while seven of its larger semi-refrigerated ethylene-capable ships are working in ethane, a relatively new business that emerged from the North American shale gas boom and which is benefitting from new demand from petrochemical producers in Asia and Europe.
Navigator has also taken advantage of the growth in olefin production as a downstream product of rising NGL output, its owners having invested in a joint-venture ethylene export terminal at Morgan’s Point, Texas with Enterprise Products Partners. That facility reached 120 per cent of nameplate capacity
(1.0m tpa) in the first half of the year, with 938,000 tonnes of that committed under long-term offtake contracts. The partners are now considering a doubling of capacity in two stages over the next three years as US NGL production has continued to increase and US-produced ethylene has a significant cost advantage in the global market, offering attractive arbitrage opportunities to both Asia and Europe.
There has also been a very significant increase in ammonia exports to Europe since the Russian invasion of Ukraine, which has benefitted the Handysize gas tanker sector. Those ships have also been employed moving larger volumes of ammonia from Asia to Europe. Both of these trades have added significantly to tonne-mile demand as they have replaced Black Sea stems.
As a result of all this, freight rates have been on an upward trend since the start of 2018, with 12-month timecharter rates for
20,500-m3 semi-refrigerated vessels more than doubling over the four years since then. Current firmness in the market has been underpinned by European demand for energy, feedstocks, petrochemicals and ammonia from wherever supplies are available, with some 80 per cent of US ethylene exports during the second quarter heading to Europe. Pacific ethylene trades have yet to recover, with Chinese demand still hampered by Covid-related restrictions, though Navigator expects volumes to pick up in the latter part of the year.
The financial impact for Navigator has been a sharp improvement across the board, with first-half net income of $41.8m compared to just $3.9m last year, and adjusted EBITDA nearly doubling to $110.5m.
Stealthgas has recently emerged as a more significant player in the Handysize sector,
NAVIGATOR GAS FINDS ITSELF WELL POSITIONED TO TAKE ADVANTAGE OF LONG-HAUL TRADES CAUSED BY THE UKRAINE CRISIS AS WELL AS EMERGING TRADES IN AMMONIA AND ETHYLENEfollowing its decision to spin off its liquid tanker business and invest in larger LPG vessels. That was good timing, as it recorded its most profitable six months in more than a decade in the first half of this year. “All vessel sizes in our fleet showed improving results and particularly the Handysize vessels boosted our bottom line,” says board chairman Michael Jolliffe. Second-quarter revenues of $39.3m were flat against the previous year despite a reduction in its fleet from 42 to 34 LPG carriers. As a result, net income rose from $1.6m to $12.2m.
Jolliffe remains cautious, despite those good results, saying: “While we are optimistic for the LPG shipping market, we recognise that we continue to operate in a challenging geopolitical environment where issues are being perpetuated. As of late inflationary pressures have been a concern of ours, and we have managed to contain cost pressures for the time being.”
That has not prevented Stealthgas from joining those with sufficient optimism to invest in newbuildings. It has acquired two 40,000-m3
vessels already under construction in South Korea, due for delivery in the second half of 2023.
The midsize-gas carrier sector is in fact attracting a lot of attention, largely as a result of the potential for more employment in emerging ammonia trades, with Exmar noting that, as of mid-2022, the orderbook stood at some 30 per cent of the active fleet. “It remains to be seen what premium these bigger ships, mostly LPG-propelled, will command,” the company notes.
However, with the anticipation of greater tonne-mile employment coming from the move away from Russian ammonia liftings, plus the potential impact of new IMO rules on energy efficiency arriving next year that are expected to reduce sailing speeds, there should be enough demand to accommodate the new ships arriving in the fleet in the second half of this year and in 2023.
Indeed, Exmar says, it is “actively looking at ordering newbuilds” – and has already placed an order for two-option-two ships, with LPG propulsion.
At the same time, a buoyant secondhand market, with interest from buyers in Turkey, India and the Far East, has given Exmar confidence to offload some of its older midsize carriers. The 1997-built Brussels was sold earlier this year and Exmar has signed sales agreements for Eupen (1999, 39,000 m3) and Bastogne (2002, 35,200 m3), which are both due for delivery to new owners after the completion of timecharters during the second half of this year. Exmar says it is It is also discussing several potential carbon dioxide transport contracts with parties active in the capture and storage of CO2, another new market where gas tanker operators have expertise that can be useful to other interests.
Exmar’s shipping division posted first-half revenues of $69.8m, slightly ahead of last year’s $68.7m, with an operating profit of $22.5m, up nearly 30 per cent year-on-year and says it expects LPG freight markets to stay firm through the rest of this year.
Exmar has a small exposure to the VLGC sector, where it has three ships, two under timecharter to Equinor and one operating in the BW pool. In its half-year report, Exmar says that 2022 so far has proved to be “another very volatile year” for VLGCs, with the market gaining strength as the impact of the Covid pandemic wanes and the Russia-Ukraine conflict also adding to tonne-mile demand. The downside has been to do with product pricing, with arbitrage between the US and Far East opening and closing in response; freight rates have fluctuated, hitting some $50,000/day at times while at others just breaking even.
US LPG exports are still forecast to grow by 6 per cent this year, however, and this will mainly benefit the VLGC sector. Still, Exmar worries that high natural gas prices may temper export availabilities. Operators are also facing all-time high bunker fuel prices following the outbreak of the Russia-Ukraine conflict, and the spread between high and very low sulphur fuel oil has widened dramatically, which will benefit those vessels fitted with scrubbers or dual-fuel engines.
Exmar also refers to lengthening waiting times for Panama Canal transits, used on the
US Gulf to Asia trades, as the canal is prioritising containerships and LNG vessels, Waiting times for LPG tankers are now around 15 days, effectively tightening vessel supply. That will help the supply/demand fundamentals as next year is expected to see 42 newbuild VLGCs join the global fleet, expanding it to 377 vessels. The current orderbook stands at some 20 per cent of the existing fleet.
Growth in the VLGC fleet has been consistent over the past decade, in line with rising demand. According to BW LPG, the largest operator in the sector, the fleet grew from 141 ships in 2011 to 241 in 2016 and 321 ships by the end of 2021; another 20 newbuildings are expected over the course of 2022, with limited demolition activity –although given the age profile of the fleet scrapping may be more of a feature in the next few years.
VLGCs normally work exclusively in LPG, although in a very weak market some may carry light liquids such as gasoline and naphtha; as such, demand growth over the past decade has come almost exclusively from the increase in LPG exports from North America, bolstered by the additional tonnemile impact of trans-pacific exports compared to Middle East stems. VLGCs carried 20.6m tonnes of North American LPG in 2016, BW LPG says, with this figure more than doubling to 43.6m tonnes by 2021; this year is expected to see further growth to 47.2m tonnes and the company forecasts further increases to 57.5m tonnes in 2025. The company also notes that US exports to Europe have doubled over the past year.
Exports from the Middle East have been more variable, affected both by political concerns (mainly affecting Iran) and by Opec oil production strategies, as the bulk of
regional LPG output is derived from associated gas production. Middle East LPG exports fell from 34.6m tonnes in 2016 to a low of 30.1m tonnes in 2020 but have picked up this year and are expected to reach 34.9m tonnes; absent any external influences, BW LPG expects them to continue to grow and hit 39.2m tonnes by 2025.
As with other sectors of the gas tanker fleet, VLGC operators are unsure about the future. “The global energy markets are facing an unusual set of uncertainties and challenges,” BW LPG puts it. Oil prices remain high due to supply constraints and only slow demand growth, impacted by high inflation, potential recessions and deteriorating oil demand in China. Natural gas prices are more than
double what they were a year ago, with fears of a cut in Russian supplies, prompting further investment in LNG infrastructure in the US.
BW LPG expects VLGC rates to remain firm for the rest of this year, driven by continued growth in US exports and recovering volumes from the Middle East, though freight rates will remain volatile. Nonetheless, BW LPG remains optimistic for next year, despite the high orderbook and macroeconomic uncertainties. That optimism is matched by Øystein M Kalleklev, executive chairman of Avance Gas, who says: “With the worldwide energy crisis, we think the clean properties of LPG should be compelling, especially when coupled with its affordable price compared to other fuels. Hence, we remain upbeat about the long-term prospects for LPG freight despite a rather large orderbook for next year.”
THE VLGC SECTOR, ATTRACTING A LOT OF INVESTMENT IN NEW CONSTRUCTION, HAS SEEN VOLATILITY IN RATES THIS YEAR DUE MAINLY TO VARIABLE PRICING FOR NATURAL GAS
Furetank and Algoma have established a 50/50 product tanker joint venture, FureBear, and ordered four 17,999-dwt tankers from China Merchants Jinling for delivery between 2023 and 2025. The newbuildings will operate in the Gothia Tankers Alliance alongside eight ‘Vinga’ sisterships already trading. The ice-class product tankers were designed by Furetank in collaboration with FKAB Marine Design and feature dual-fuel engines capable of running on LNG, LBG or gasoil, a battery hybrid solution and other design innovations to reduce fuel and energy consumption.
“This investment will enable us to continue on our strategic path to diversify geographically and into niche short sea markets,” says Gregg Ruhl, president/CEO of Canada-based Algoma Central. “Short sea shipping is our core DNA here at Algoma and these specialised, environmentally conscious vessels will fit naturally into our expanding global fleet.”
“We are pleased to welcome aboard Algoma and combine our companies’ symbols to create the FureBear joint venture,” adds Lars Höglund, CEO of Furetank. “Furetank has deep roots in the shipping industry and a rich family history dating back to the 17th century, but our focus is aimed forward towards the goal of sustainable shipping. Together with Algoma’s similar narrative, I look forward to our collaboration. These vessels will be topperformers in the market by offering efficient cargo operations all while reducing our environmental footprint.”
www.algonet.com
www.furetank.se
Ardmore Shipping is expanding its Singapore operation, sending its COO Mark Cameron out from Ireland to take up the position of managing director of Ardmore Shipping Asia.
Ardmore says the move is part of a strategy to formulate a more geographically balanced senior management team to serve the needs of its customers and partners, which also supporting its energy transition plan.
“Moving out to Singapore is an exciting prospect for myself and for Ardmore Shipping,” Cameron says. “Singapore is a global centre of innovation for sustainable shipping and decarbonisation and reflects the values of our business to the core. This will support our efforts to engage with stakeholders in the region regarding our Energy Transition Plan and grow our presence in a location which inspires innovation, development and sustainable progress. Personally, this is a fantastic opportunity and I look forward to really accelerating our growth in the east.” ardmoreshipping.com
NYK Line, Nihon Shipyard, ClassNK and IHI Corporation have signed a joint research and development agreement for the commercialisation of a floating ammonia storage and regasification barge. The concept is seen as a possible solution for power plants
looking to adopt mixed-fuel combustion generation using ammonia, especially where securing land for storage and regasification of ammonia will be a problem.
The floating barge will be able to receive and store ammonia shipped as a refrigerated liquid and regasify it on demand to feed into onshore facilities. This concept will be quicker to install and cheaper to build than a comparable onshore facility and could therefore help to accelerate the adoption of ammonia as a fuel.
A similar consortium, also involving Japan Engine Corporation, has received Approval in Principle (AiP) from ClassNK for an ammoniafuelled ammonia gas carrier. NYK remarks that, so far, there are no international regulations for the use of ammonia as a marine fuel and the consortium has had to conduct its own development and testing to ensure an equivalent level of safety compared to using fuel oil or LNG as fuel. It carried out a hazard identification (Hazid) risk assessment as part of that work.
The consortium plans to continue work and has already worked up a prototype design of a 38,000-m3 carrier capable of meeting the safety requirements as established by the AiP. www.nyk.com
TANKER SHIPPINGExmar LPG, a joint venture between Exmar and Seapeak, has ordered two 46,000-m3 midsize LPG carriers from Hyundai Mipo. Deliveries are scheduled for fourth quarter 2024/first quarter 2025 and the contract includes options for two further newbuilds for 2025 delivery. The options also include the possibility of ammonia dual-fuel propulsion.
Exmar is one of the major operators in the midsize LPG sector, with 19 such ships in its fleet. Seapeak, which was formerly Teekay LNG Partners prior to its acquisition by investor Stonepeak early this year, operates 27 LPG carriers and 47 LNG carriers; it also has a 30 per cent interest in the Bahrain LNG terminal.
www.exmar.com
www.seapeak.com
Alfa Laval has acquired Scanjet, a leading supplier of tank cleaning equipment for the maritime, offshore and industrial sectors. The deal extends Alfa Laval’s product portfolio in the tanker shipping field. Alfa Laval notes that Scanjet’s intelligent tank management solutions will complement its sustainable marine offering, as they reduce water use and energy consumption during tank cleaning. “Adding Scanjet to Alfa Laval’s portfolio will support customer efficiency at every stage of cargo handling,” Alfa Laval states.
www.alfalaval.com
www.scanjetsystems.com
Odfjell has reported second quarter EBITDA of $89.5m, up from $67.4m in the prior period and 16 per cent up on the figure for the fourth quarter 2021. Net income came in at $30.0m, almost double the level in the last quarter of 2021. The increase reflects consistent increases in timecharter equivalent earning over the
quarter, along with a $4m net contribution from the sale of one vessel. A firm spot market has encouraged strong demand for contracts of affreightment (COA) and higher volumes under existing COAs.
“The chemical tanker market strengthened considerably into the second quarter and Odfjell capitalised on this strength,” says CEO Harald Fotland. “Despite typically seasonally softer summer market, we expect to report continued strong results with timecharter earnings in 3Q to be in line with 2Q.” Looking further ahead, Odfjell expects the supply/ demand fundamentals to remain favourable, with projected tonne-mile demand for chemical tankers of 4 per cent by 2024 set against negligible fleet growth.
Since the end of the second quarter, Odfjell has taken delivery of the 26,000-dwt stainless steel chemical tanker newbuilding Bow Cheetah from Asakawa, under timecharter from Nissen Group. The new ship, which has joined Odfjell’s Chempool 25 pool, is the first of four sisterships scheduled for delivery this year and next; the second is due in November.
Odfjell notes that the new vessel is arriving in its fleet at a good time, as there is substantial
demand for stainless steel tonnage in this size range. “The capacity these vessels provide is sought after by our customers, and will further strengthen the flexibility of our services,” says Bjørn Hammer, Odfjell’s global head of tanker trading. Bow Cheetah sailed from Japan to load its maiden cargo in South Korea for delivery to India.
www.odfjell.com
Stolt Tankers has taken delivery of three 33,600-dwt stainless steel chemical tankers, formerly owned by K Line and all built in Japan in 2012 and 2013, that it agreed to acquire this past May. Stolt Dugong, Stolt Orca and Stolt Beluga were delivered during the third quarter.
“I am pleased to welcome these latest ships to Stolt Tankers,” says Maren Schroeder, managing director of Stolt Tankers. “Our investment in new tonnage will help Stolt Tankers to continue to meet the changing needs of customers for many years to come, while providing the highest levels of quality and safety.”
www.stolt-nielsen.com
WHEN IT WAS formed as a carve-out from Oiltanking, Advario was given the remit of focusing on providing infrastructure suitable for a more sustainable future, based on the growth of alternative energies. Bulk liquids terminal operators around the world are currently wrestling with determining what assets and services will be needed to service that future but for Advario that is its core business.
Since then, the pace of activity at Advario has accelerated. In June it announced a partnership with Braskem Idesa to set up a
chemical terminal in Mexico to support Braskem’s use of green ethane in chemical production and in July Advario’s Singapore terminal on Jurong Island was given a grant to accelerate clean energy innovations on the island. That latter deal has helped cement a partnership with VFlowTech, a Singaporebased developer and manufacture of energy storage solutions based around vanadium redox flow batteries.
Advario will contribute to the project’s development by providing land for the deployment of the flow batteries, supplying renewable energy from the solar panels on its tank rooftops to charge the flow batteries, and leveraging its knowledge of operating systems and storage infrastructure in selecting the
appropriate tanks to test the storage of renewable energy in flow batteries.
“Today marks an important milestone in Advario’s contribution to the energy transition, where we will work together with a forward thinking and like-minded partner like VFlowTech,” said Snehashish Chatterjee, vice-president, south-east Asia at Advario, announcing the deal. “We are confident that this scalable solution will drive positive change in the way the world stores energy, leading us to a cleaner future.”
More recently, Advario has entered into an agreement with Sasol Germany to study the potential construction of an ethylene terminal at Sasol’s ChemCoast Park site in Brunsbüttel, northern Germany. It is expected that the terminal will have a single 30,000 m3 storage tank able to handle both conventional and green ethylene, for use in Sasol’s production process. Planning and construction is expected to take about four years. Once in service, the terminal will be operated by Advario.
Also in Europe, Advario is playing its part in the greening of the major hub ports in Belgium and the Netherlands. Together with Belgian utility major Fluxys, Advario Stolthaven Antwerp and Advario Gas Terminal have announced a study on the feasibility of building an open-access green ammonia import terminal in the Port of AntwerpBruges. The plan is to offer the market a robust solution to its growing demands for importing and storing green energy and raw materials against a backdrop of ongoing decarbonisation. The first step is to identify what size and type of facility will be needed to serve the needs of local industrial users and energy suppliers, with the aim of having the terminal operational in 2027.
It is expected that the future terminal will deliver storage and multimodal sendout solutions for ammonia (train, truck, barge and possibly ammonia pipelines connected to local industrial sites), while optionally also providing facilities to convert ammonia back into hydrogen. The terminal will also connect
SUSTAINABILITY • JUST A FEW MONTHS SINCE ITS FORMATION IN EARLY MAY, ADVARIO IS ALREADY DELIVERING ON ITS MISSION TO HELP ENABLE THE ENERGY TRANSITION
MONTHS,
HAS ALREADY
PARTNERSHIPS
to the Fluxys open-access hydrogen network to ensure supply throughout north-west Europe.
The ammonia import terminal dovetails with the partners’ strategy for implementing Europe’s hydrogen strategy and the REPowerEU plan by providing decarbonisation infrastructure and effectively making Belgium a European hub for the import and export of molecules essential to the carbon-neutral economy. REPowerEU has set a target of 20m tonnes of green hydrogen consumption by 2030, one fifth of which should be covered by ammonia imports.
Jacques Vandermeiren, CEO of Port of Antwerp-Bruges, explains further: “Port of Antwerp-Bruges is ready to receive
sustainable molecules. As ammonia is one of the most efficient hydrogen carriers known, it will play a crucial role in the energy transition.
The collaboration between Fluxys and Advario and the joint development of a green ammonia import terminal fully contributes to this goal. This is again an important step in the energy transition and in achieving a climate-neutral industry in our port.”
While it is green hydrogen that Europe needs, shipping hydrogen is an expensive and unproven route to market. Ammonia, on the other hand, which can be easily manufactured by combining green hydrogen with nitrogen captured from the air, has a well established trading network and its shipping and storage has been proven over decades. Green ammonia shipped to Europe from regions where solar and/or wind power is widely available can be used directly in the
manufacture of fertilisers or as a likely sustainable fuel for the maritime sector, or can be converted back to hydrogen with no direct CO2 emissions. It is that link in the chain that Fluxys and its partners seek to examine.
Pascal de Buck CEO of Fluxys, explains: “We are delighted to launch this green ammonia import terminal project with our Advario partners. Combining and leveraging our terminalling and technology expertise will enable us to fast-track the development of key solutions for importing low-carbon energy and feedstock. Fluxys aims to be a decarbonisation driving force and this project is a landmark venture in helping build the infrastructure to carry the molecules needed for a carbonneutral society.”
advario.com www.fluxys.com
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E-FUELS • COLLABORATION IS KEY TO GETTING NEW MARINE FUEL CONCEPTS ACCEPTED. THE PORT OF GOTHENBURG IS HELPING TO DO THAT, WITH PLANS FOR A NEW METHANOL HUB NEARING REALITY
GOTHENBURG PORT AUTHORITY, in collaboration with Stena Line, DFDS, Ørsted and Liquid Wind, has announced plans to establish Europe’s first electro-methanol hub, due to launch in 2025. “The venture is a tangible step towards a carbon-neutral shipping industry,” the port says.
All parties agree that cross-industry collaboration is vital if new energy networks are to take hold. “We cannot achieve this on our own – a strategic collaboration across the value chain will be a win-win for all stakeholders in this exciting project,” says Niclas Mårtensson, Stena Line CEO.
The project will be based on the FlagshipONE project of Liquid Wind and Ørsted, which is in late-stage development and approaching a final investment decision. On completion, it will be the largest e-fuels facility in the world, with an annual production capacity of 50,000 tonnes.
”Together with these brave first movers we are now well on the way to establishing the
Port of Gothenburg as the primary bunkering hub for future marine fuels in northern Europe, and we are convinced that more ship owners and fuel producers will join us in this journey of decarbonisation,” says Christoffer Lillhage, senior business development manager, energy at the Gothenburg Port Authority.
The joint project was foreshadowed by the publication by Gothenburg Port Authority this past April of general methanol operating regulations for ship-to-ship bunkering. That move was part of the port’s ambition to reduce shipping emissions in the port area by 70 per cent by 2030 and to help the broader maritime industry meet its emissions reductions targets.
That too is nothing new: Stena Line first started bunkering its vessel Stena Germanica with methanol delivered by truck on the quayside as long ago as 2015. “Now we hope
to see Maersk, X-press Feeders and many other shipping lines routing their new methanol vessels to the north of Europe and we would be delighted to welcome them with open arms to the largest port in Scandinavia,” said Elvir Dzanic, CEO of the Gothenburg Port Authority, at the time the regulations were issued.
Setting up a brand new supply chain is always something of a chicken-and-egg problem but, through the involvement of multiple parties and the leadership of the port authority, Gothenburg is helping to promote that shift. “We are pleased to see that ship-to-ship methanol bunkering and infrastructure will come to reality in the Port of Gothenburg. This is a strong benefit for carriers planning to buy our green electrofuel, eMethanol,” says Claes Fredriksson, CEO and founder of Liquid Wind. “It enables Liquid Wind and our value chain collaborators to establish multiple production facilities in Sweden and other Nordic countries. A strong and leading eMethanol hub in Gothenburg accelerates our ability to market and distribute our carbon-neutral marine fuel to the world. It also puts Sweden on the global fuel export market.”
Gothenburg Port Authority has also taken a lead in the provision of shore power and, again in collaboration with local shipping companies, classification societies, energy firms and the Swedish Transport Agency, opened a new facility at the Energy Terminal in June this year. While offering shore connections is again not a new concept, this latest project aims to establish a global standard for the provision of shore power to tankers berthed in hazardous areas.
“Volatile and highly combustible gases that are present during bunkering and the risk of sparks during connection is a dangerous combination. We have now resolved the problem by working with overpressure in the spaces where the cable is housed and connected. This solution will shut out any explosive gases, making the facility safe,” explains Jörgen Wrennfors, production engineer at the Energy Terminal.
www.portofgothenburg.com
At Exolum we have the expertise and the infrastructure to play a key role in building a lower carbon future. Not only are we investing in the infrastructure required for the storage and transportation of green hydrogen but we are also continuing to provide storage and blending solutions for biofuels, providing our customers with innovative and viable solutions.
AMMONIA • ANOTHER KEY COMPONENT IN EUROPE’S FUTURE ENERGY MIX HAS TAKEN A STEP FORWARD WITH AGREEMENT TO INVESTIGATE DEVELOPING A GREEN AMMONIA HUB IN VLISSINGEN
Terminals have signed a memorandum of understanding (MoU) to evaluate the feasibility of revamping and expanding an existing bulk liquids storage facility in the port of Vlissingen, the Netherlands, with the aim of creating the first green ammonia hub in north-west Europe. The partners are looking at having the new facility up and running by early 2026.
Uniper, one of Germany’s largest publicly listed energy supply companies, intends to book capacity in the terminal – dubbed ‘Greenpoint Valley’ - to create an entry point into the north-west European markets for the growing green ammonia and hydrogen activities within the Uniper group, as one of several access points for green energy in Europe. This will be pursued in parallel with
Uniper’s ongoing ammonia terminal project at Wilhelmshaven, where it is building Germany’s first land-based LNG import terminal as well as an import facility for green hydrogen. The Wilhelmshaven site will become a green energy hub and is setting the course for an even more climate friendly energy supply.
Vesta’s Vlissingen terminal already has 60,000 m3 of refrigerated storage capacity designed to handle ammonia; with future development it will be able to achieve an annual throughput of almost 1m tonnes per year. An envisaged second phase of development would double throughput capacity and link the terminal to the Dutch hydrogen pipeline network. The partners say the terminal is well located to receive green
ammonia in bulk from seagoing vessels, and for the re-loading of that product to inland barges and rail tank cars.
Speaking about the plans, Andreas Gemballa, director of LNG and global energy trading at Uniper Global Commodities, says: “We are proud to have achieved another step towards establishing a seaborne green hydrogen product portfolio at Uniper. With access to Vesta’s future terminal we will be able to supply our growing European customer base with green ammonia and green hydrogen products”
Daan Schutte, director of business development at Vesta Terminals, adds: “Vesta is pleased to take this project forward with Uniper. The Greenpoint Valley project will become a gateway of green ammonia and hydrogen into Europe. With the development of Greenpoint Valley, Vesta and her shareholders are proud to contribute to the European energy transition.”
Vesta Terminals is a joint venture between Mercuria Energy Asset Management and Sinomart KTS Development, the latter being a wholly owned subsidiary of Hong Kong-listed Sinopec Kantons. The Vlissingen site, which has a total storage capacity of 391,000 m3, was formerly owned and operated by Mercuria. Vesta also owns and operates terminals in Antwerp, where work is currently underway to expand jetty capacity, and Tallinn, Estonia.
Mercuria has further storage terminal investments in the US (Rocky Mountain Crude Oil and Pin Oak Group) and Brazil, and also has a minority interest in two companies operating bulk liquids storage and terminalling facilities in Qingdao, China. Speaking about the Vlissingen plan, Mercuria says: “Green ammonia and hydrogen have the potential to play key roles in solving parts of the energy trilemma: strengthening security of supply as well as decarbonising large sectors of the economy such as energy supply and storage, hydrogen in transport and shipping, as well as replacing existing brown ammonia used for fertiliser and chemicals production.”
www.uniper.energy
www.vestaterminals.com
The Fort Vale 2”BSP low profile IBC Relief valve has been developed to radically improve flow rates and sealing performance, in the process setting a new benchmark for comparable models on the market.
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l Internal labyrinth feature and angled vent ports reduces valve contamination
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other industry clusters in the Netherlands and Germany. A successful transition will give Rotterdam-Moerdijk the opportunity to safeguard this strategic position and its earning power in a sustainable manner and to grow into a hub for the import and transit of hydrogen and renewable energy. This will allow the cluster to contribute to the Dutch economy, the European climate goals and the RePowerEU’s goals of reducing dependence on Russia in particular for energy and raw material imports while maintaining its competitive position.
THERE IS A LOT of land in port areas and land is one thing that will be needed as northern Europe builds the infrastructure necessary to support the transition to low-carbon and, ultimately, net-zero industrial and transport operations. Last year, the ports of Rotterdam and Moerdijk set up a Cluster Energy Strategy (CES) to determine the uses to which that land needs to be devoted if that transition is to happen in line with the expectations of the UN Sustainability Goals and the EU Green Deal. Based on a new data study, CES has found that the 2030 targets are within reach but also that there is an urgent need to build the necessary infrastructure. This will require some direction from government, in cooperation with industry.
“The Netherlands not only faces a huge task but we also have the opportunity to grow into a major European hub for hydrogen and circular production,” says Nico van Dooren, director of new business at the Port of Rotterdam Authority and also administrative
coordinator of the Rotterdam-Moerdijk CES. “This way, we not only contribute to climate goals and sustainable employment, but we can also reduce our dependence on countries like Russia. However, to achieve this, it remains essential that the necessary infrastructure is built as a priority so that we can provide new, renewable energy to all projects in a timely manner.”
The new data study shows that just making the cluster itself more sustainable by 2030 will require four times as much electricity and twice as much hydrogen as it does today. In addition, the deployment of carbon capture and storage (CCS) is crucial to meet shortterm climate targets while the transition to circular raw materials and fuels will have a greater impact in the long term.
Some 12 per cent of total annual European energy demand arrives via the port of Rotterdam, most of which is transported to
To facilitate all this, eight key priority projects have been identified:
- Infrastructure for the import and transport of hydrogen
- The Delta Corridor pipeline infrastructure to Chemelot and Germany
- Electricity grid reinforcement and new offshore wind landings
- Infrastructure for the transport and subsea storage of CO2
- Heat pipes from industry
- Infrastructure for the H-vision project, for low-carbon hydrogen production
- Shore power plants for seagoing vessels
- Hydrogen transport infrastructure between the Netherlands, Belgium and Germany
The CES calculates that this broad portfolio of sustainable projects has the potential to reduce overall CO2 emissions by some 17m tonnes by 2030, while there is further potential to significantly reduce emissions outside the ports.
www.portofrotterdam.com
NEW ENERGIES • ROTTERDAM AND MOERDIJK ARE PARTNERING TO FOSTER A CLUSTER OF THE DIVERSE RANGE OF EXPERTISE NEEDED TO GET NORTHERN EUROPE ON THE PATH TO DECARBONISATIONPHOTO: PORT OF ROTTERDAM C DANNY CORNELISSEN
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TANK INSPECTION • SQUARE ROBOT BELIEVES IN-SERVICE TANK INSPECTION CAN GIVE A BETTER PICTURE OF TANK BOTTOM SETTLEMENT AND IT HAS THE RIGHT EQUIPMENT TO MAKE IT HAPPEN
AN EFFECTIVE TANK bottom inspection requires a storage tank to be taken out of service. Traditionally, tank bottom settlement is measured as a part of an API 653 out-ofservice inspection, where the inspection team uses laser levels starting at the shell moving across the diameter to the tank centre and lasering a point every 10 feet until the centre has been reached.
This traditional system has one major drawback: it does not inspect the tank bottom under the conditions it will spend most of its lifetime: under product. When the tank is emptied, it is normal for the tank bottom to
‘bounce back’ to its design shape once the product load has been removed.
Square Robot, a leader in robotic tank inspection, believes that, by inspecting the tank bottom under load, the owner or operator can get a more accurate representation of the tank’s settlement; achieving this has been one of its aims and, by using its SR-1 robot, it can now the most accurate tank bottom settlement report.
“We are always looking at ways to provide tank owners with the most accurate reporting on the health of their tank,” says Jerome Vaganay, CTO of Square Robot. “By using the sensors on our robot, we can produce an accurate and high density tank bottom differential elevation map.”
The SR-1 robot naturally contacts the tank bottom via three omnidirectional wheels.
While rolling in contact with the bottom, the robot acquires Phased Array Ultrasonic Testing (PAUT) data for bottom thickness examination and simultaneously collects
pressure data with its onboard pressure sensor. Pressure measurements are converted to depths based on fluid density and compensated for changes in atmospheric pressure and product height. Three depths are computed from each depth measurement using the robot’s position, attitude and the lever arms between the pressure sensor and each omnidirectional wheel. A fourth virtual depth measurement is created when scanning the critical zone to determine elevations within 1 foot of the shell. All depth measurements are positioned in a reference frame attached to the tank which allows a 3D point cloud to be created.
Subtracting the deepest depth value provides the desired elevation data. The horizontal plane going through the lowest point establishes the datum (zero elevation) against which all differential elevations are reported. The position and elevation data are then processed to evaluate shell and edge settlement, as well as localised bulges and depressions.
As the industry continues to rely more heavily on data, robotics will play an integral part in gathering this data. Square Robot says it is uniquely positioned through its in-service inspection to provide the most accurate data on the tank settlement and provide tank owners with a complete settlement report that is integral to identifying any potential issues that may arise.
Square Robot, founded in 2016, is continuing with its mission to improve tank inspection accuracy, planning to launch a new robot, SR-3, later this year. Its founders have also recently been joined on the board by Earl Crochet, acting as an independent director. Crochet has some 35 years experience in the field and has served on a number of American Petroleum Institute (API) boards.
Crochet has this to say about his new role and the potential offered by robotics: “As an inventor and a certified API 653 inspector, it was reinvigorating seeing the technology that Square Robot was bringing to the world of tank inspections. The addition of robotics allows owners and operators to feel more confident about their data, risk management and lifecycle of their tanks.”
www.squarerobots.com
Noord Natie Odfjell Antwerp Terminal (NNOAT) reports that the new tank pit T at its Antwerp terminal is now fully in operation and fully rented out. Work will now begin on the new tank pit U, which will add another 36,000 m3 of tank capacity. To accommodate the new tankage, one warehouse will be dismantled, with current drumming and IBC filling activities being consolidated at another warehouse; NNOAT has decided not to expand drumming and IBC filling beyond its existing contracts.
In addition, NNOAT has taken a new centralised truck loading gantry into service. As well as providing extra efficiency, the new gantry includes improvements in terms of safety and ergonomics, affirming the company’s stated vision that, next to capacity expansion, investments in the upgrading of existing infrastructure are just as important.
www.noordnatie.be
Koole Terminals and Horisont Energi have announced a joint plan to develop a carbon dioxide terminal and storage facility in Rotterdam, designed to handle CO2 and clean ammonia. The plan builds on an MoU signed last year for a clean ammonia terminal.
“We are very excited to announce that our cooperation with Koole Terminals will include a CO2 terminal,” says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi. “The two companies have cooperated well during this first year, and it is essential for us to bring about solid relationships with key storage, handling, and transport partners in the region so we can establish an end-to-end carbon capture and storage (CCS) service, while ensuring that our clean ammonia can reach all potential clients. This is an important step for Horisont Energi.”
“This partnership fits very well with Koole Terminals’ sustainable energy strategy to facilitate the transition to a low-carbon future, and we are proud to work together with Horisont Energi to materialise their European distribution hub for renewable energy and CO2 Furthermore, it will accelerate Koole Terminals’ international expansion plans to reach new markets,” adds Tamme Mekkes, business development director of Koole Terminals. koole.com
GPS Group has completed construction and commissioning of its new LPG storage terminal in Port Klang, Malaysia. The new facility, for which Equinor is the anchor tenant, enables cost-advantaged VLGC shipments of LPG to discharge in Malaysia. It is fully automated and can re-export pressurised cargoes for regional distribution, as well as domestic distribution within Malaysia in cylinders and by truck. There are also pipeline connections to other LPG distribution facilities in the port. Annual throughput capacity is put at some 1.2m tonnes.
“The completion of the new terminal is a game-changer for LPG shipments into the region,” says CEO Eric Arnold. “It is the first time that an independent player has the advantage of VLGC freight economics into south-east Asia. Delivering this asset is another important milestone in the relationship between Equinor and GPS. We’re thrilled that together we have been able to improve the energy infrastructure of our region.”
www.gpsgroup.com
Rubis Terminal has delivered what jointventure partner Rubis calls “solid performance” in the first half of 2022, with storage revenue up 3 per cent year-on-year at €112m and adjusted EBITDA 4 per cent higher at €57m. Revenue growth accelerated in the second quarter, driven by higher demand for tank storage for biofuels, chemicals and agri-food products.
Those figures exclude Rubis Terminal’s operations in Turkey, which were sold at the start of this year, generating an after-tax capital gain of €11.8m. Elsewhere, business was strong
STORAGE TERMINALSin Spain and slightly ahead in France, though volumes at the Antwerp joint-venture terminal, ITC Rubis, were down by 2 per cent following the non-renewal of a heavy fuel oil contract with Shell, though the client has committed to take more capacity for other products from the fourth quarter.
www.rubis-terminal.com
Stolthaven Terminals’ Moerdijk facility in the Netherlands has achieved two certifications that will help it expand its business. The International Sustainability & Carbon Certification (ISSC) is an internationally recognised standard in the biofuels and energy industry. It applies to companies at all points in the supply chain and demonstrates that fuel, biobased feedstocks and renewables meet defined sustainability criteria. The certification is aligned with the EU’s Renewable Energy Directive and complies with the Fuel Quality Directive of the European Commission.
Secondly, CAT-3 certification confirms that the Moerdijk terminal safely and sustainably stores and handles products containing animal by-products, such as used cooking oil (UCO), which is a major source of biofuel. As a result of this certification, the team is now working with Stolthaven Terminals’ Dagenham facility to provide one of its customers with storage solutions for UCO in the Netherlands.
Both certifications come after thorough third-party auditing processes and highlight the company’s commitment to supporting the transition to green energy. Roel van Leeuwen, sales manager at Stolthaven Moerdijk, says: “We are delighted with these achievements and the fact that we are already working with new customers as a result of these certifications. We look forward to continuing to serve our existing customers in a safe and sustainable way, and welcoming more new customers to Moerdijk.”
www.stolt-nielsen.com
Digitisation has been the underlying driver of a lot of investment in storage terminals in recent years but, Implico says, not every terminal has been able to take steps along the digitisation path. Time, budget, know-how, and resources are factors that might have prevented, or at least slowed down, the embrace of gainful new technology – especially at small to mid-size tank farms with manageable complexity and little or no automation.
Implico Group, which has been at the forefront of terminal management system (TMS) development for close to 40 years, has now developed lean, agile and accessible solutions for terminals of all types and sizes. First, there is a pre-configured version of Implico’s leading solution for tank terminals, OpenTAS. Based on proven industry standards, the software is quick to implement and easy to maintain. As a key feature, the new ‘out-of-thebox’ variant of OpenTAS enables driver-
operated loading via comprehensive process automation from arrival to departure. Also, it facilitates fully integrated tank farm and stock management.
Second, there is TMS Next-Gen, an all-new solution that expands Implico’s product portfolio with a standardised and scalable terminal management system based on the latest Cloud architectural principles. The initial target audience are independent storage providers looking for an “easy” terminal management system: easy to buy, easy to use, and easy to run – all based on the industry’s most recent best practices. The first edition will be available at the end of the year.
If further functionalities are required, both solutions can be expanded via a broad range of adaptive micro services and extra features. Thus, they also constitute ideal starting points for yetto-be-digitised terminals to kick off their digitisation journeys now - and expand the scope as the business grows.
www.implico.com
Get back to doing profitable business face-to-face at the leading container shipping and intermodal transport industry event.
by:
EPCA Annual Meeting
OCTOBER 4-6, BERLIN
56th annual meeting of the European Petrochemical Association https://events.bizzabo.com/EPCA_AM56_2022
BDP Supply Chain Summit
OCTOBER 11, ANTWERP
Seminar on trade and compliance issues https://psabdpevents.swoogo.com/2022_PSABDP_ Antwerp
IPANA Annual Conference
OCTOBER 11-13, SAN DIEGO
Annual meeting of the Industrial Packaging Alliance of North America www.industrialpackaging.org/#events
RIPA Annual Conference
OCTOBER 12-14, SAN DIEGO
81st annual meeting of the Reusable Industrial Packaging Association www.reusablepackaging.org/event/
Chemical Warehousing Workshop
OCTOBER 18, ONLINE/CREWE
One-day training workshop on the storage of chemicals in warehouses www.chemical.org.uk/training-and-workshops/ chemical-warehousing-workshop/
Hazards 32
OCTOBER 18-20, HARROGATE
Conference and exhibition on best practice in chemical and process safety www.icheme.org/career/events/hazards-32/
OCTOBER 25-26, LONDON
16th annual S&P Global Commodity Insights conference on developments affecting gas and LNG markets
https://plattsinfo.spglobal.com/ europeangaslng2022.html?/summary
OCTOBER 19, ONLINE
Brief digital forum on developments in FLNG, FSPO and FSRU projects https://informaconnect.com/floating-lng-update/
Argus LPG 2022
OCTOBER 27-28, ISTANBUL Conference on the global LPG market transformation www.argusmedia.com/en/conferences-eventslisting/lpg-2022
ADIPEC
OCTOBER 31-NOV 3, ABU DHABI
38th annual Abu Dhabi International Petroleum Exhibition & Conference www.adipec.com
Americas LNG & Gas Summit
NOVEMBER 1-4, LAKE CHARLES 19th annual convention for LNG buyers and sellers www.worldlngamericas.com/
International LPG Summit
NOVEMBER 7-9, MIAMI
27th annual S&P Global conference on pricing, policy, supply/demand and transport https://plattsinfo.spglobal.com/international-lpgsummit.html?/summary
NOVEMBER 7-10, CORONADO, CA 50th Annual Meeting of the National Association of Chemical Distributors www.nacd.com/education-meetings/ meetings/2021-annual-meeting/
NOVEMBER 8-10, LEIPZIG Trade fair for all those involved in the transport and internal logistics of dangerous goods and materials www.ggs-tradefair.com/?language=en
NOVEMBER 8-10, AMSTERDAM
Annual trade show and conference for the container, transport and logistics industry www.intermodal-events.com
NOVEMBER 8-10, MIAMI
Inaugural supply chain forum and exhibition, including TIACA’s Air Cargo Forum www.tl-americas.org
NOVEMBER 9-10, HOUSTON Conference to help set the North American net zero agenda
https://events.reutersevents.com/energy-transition/ energy-transition-north-america
Tanker Shipping & Trade
NOVEMBER 9-10, ATHENS Conference on the new world order for tanker shipping www.rivieramm.com/events/tanker-shipping-tradeconference-awards-exhibition-2022
VI Med Hub Day 2022
NOVEMBER 10-11, TARRAGONA
Sixth annual workshop on regional tank storage issues www.hubdaytarragona.com
NOVEMBER 12-15, CANCÚN
41st annual Latin American petrochemical conference www.apla.lat/
LPG Week
NOVEMBER 14-18, NEW DELHI
Annual meeting and conference of the World LP Gas Association www.lpgweek.com/
Energy Transition Europe
NOVEMBER 15-16, LONDON
Business-critical conference on the future of European energy https://events.reutersevents.com/energy-transition/ energy-transition-europe
Date Location Vehicle Type Substance Details Source
16/7/22 Covington, road tanker gasoline Tank truck overturned on I-71/75 at Brent Spence Bridge, spilling some 500 gal of 8,500-gal (32 m3) cargo WCPO Kentucky, US of gasoline to road and city streets below; driver injured in crash; booms, sand applied to soak up spill
18/7/22 Balakot, road tanker gasoline
The Int’l Khyber, Pakistan failed; road closed to traffic while responders dealt with wreck, cleaned spilt gasoline off road News
19/7/22 Lagos, road tanker gasoline
Road tanker carrying gasoline from Rawalpindi to Naran overturned on Mansera-Naran road after brakes
Fire broke out in road tanker at Otto wharf along Oshodi-Apapa expressway; reports mentioned drums on Business Nigeria fire as well; responders were on scene quickly and dealt with fire without mishap Day
23/7/22 East St Louis, trailer acrylate
Tank trailer with hydroxyethyl acrylate vented at Allnex plant due to over-pressurisation, possibly as a result Belleville Illinois, US of being left in the sun too long; plant had closed two weeks earlier after fire; no off-site impact reported Ns-Dem
24/7/22 nr Kanavi, road tanker diesel, Road tanker with 12,000 litres fuel overturned, caught fire on curve; passing motorcyclist died in fire, tanker Deccan Karnakata, India gasoline driver and one other person badly injured; road closed for hours while fire was dealt with Herald
1/8/22 Sebha, road tanker fuel
Five people killed, 35 injured when tanker with unspecified fuel caught fire; local reports said the casualties DPA Libya had gathered around the tanker to get fuel, possibly on the black market
2/8/22 Davao City, road tanker sodium Road tanker carrying sodium hydroxide fell into 50-metre ravine, killing driver and helper; chemical spilt Inquirer Philippines hydroxide to river in ravine; city government warned people not to swim in the water, monitored rivers for chemicals
5/8/22 Mariannhill, road tanker fuel Road tanker was involved in multi-vehicle crash with at least three other trucks on N3; all vehicles caught EWN` KZN, South Africa fire, possibly spread by fuel from tanker; one person died, one more seriously injured
11/8/22 Al Bithnah, road tanker fuel Road tanker caught fire on Shaikh Maktoum Street, cause unknown; driver was badly hurt, six others were MENA Fujairah, UAE injured; large black plume of smoke over area; road closed for several hours during response FN
11/8/22 Perris, rail tank car styrene Cargo of styrene self-reacted in rail tank car, part of train, after exceeding stabilisation date; more than 170 OC California, US homes evacuated, several business closed; response took several days as styrene had to be allowed to cool Register
11/8/22 Brevard county, road tanker diesel Tank truck with 1,200 gal (4,500 litres) diesel overturned on I-95; responders tapped into tank to remove Space Florida, US cargo, using foam blanket to prevent ignition; cause of incident unknown Coast Ns
12/8/22 Botetourt county, road tanker diesel Tank truck with 7,700 gal (29 m3) diesel crashed on I-81, rolling into median; diesel spilled from several Roanoke Virginia, US tears in cargo tank; remaining cargo pumped off into another trailer; driver injured in crash Times
16/8/22
nr Multan, road tanker oil Speeding bus, said to be racing two others, rammed into oil tanker on motorway; bus and tanker were both Reuters Punjab, Pakistan engulfed in flames; bus driver and 19 passengers died in blaze; tanker driver fled
19/8/22 West Yellowstone, road tanker gasoline Tank truck rolled over on Highway 181 in Yellowstone National Park, spilling some 18,200 litres gasoline; Flathead Montana, US not known if any spilt fuel reached nearby creek; no injuries reported Beacon
22/8/22 nr Madison, road tanker diesel Tank truck with diesel was involved in multi-vehicle crash on I-40, causing fire; highway was closed, Arkansas Arkansas, US causing severe disruption; no word on injuries Online
24/8/22 Boone, truck explosives Driver of Orica truck with some 2,000 lb (0.9 t) explosives noticed smoke from vehicle while travelling on Wautaga N Carolina, US US 421; driver stopped and applied fire extinguisher to area; fire crews ensured fire/heat did not spread to load Democrat
27/8/22 Selma, road tanker gasoline Salem Leasing tank truck ran off Highway 96, overturned; driver seriously injured; cargo of 6,600 gal (25 m3) ABC N Carolina, US gasoline leaked to road for several hours while wreck blocked road
29/8/22 Mowe, road tankers gases Two people injured by explosion at Sun Contractor gas plant, reportedly after two tankers collided; fire spread Guardian Ogun, Nigeria to premises, three other vehicles; reports said one tanker was reversing to park and deliver gas
Date Location Vessel Substance Details Source
19/7/22 Puerto Bolivar, Antares
Fire broke on board tanker (possibly 890 dwt, 1993) during repairs while at dock; four workers on tanker not FleetMon Colombia hurt; vessel had been in port for three years but was undergoing repairs to resume trading
28/7/22 nr Kenner, Hafnia fuel oil
Some 2,100 gal (50 bbl) fuel oil spilled to Mississippi River during transfer between tanker (76,600 dwt, 2008) Splash Louisiana, US Rhine and barge; several other barges contaminated by spill at Ama anchorage; booms deployed to collect spill 247
7/8/22 Indian Ocean Zim Charleston containers
Up to 300 containers damaged by fire that broke out in cargo hold of containership (8,600 teu) shortly after Splash departing Colombo; operator said seat of fire was in under deck area with dangerous goods 247
Date Location Vessel Substance Details Source
8/8/22 Terrebonne Bay, shore tank crude oil
Structural failure of platform at Hilcorp’s Caillou Island facility caused tank to fall into water, spilling up to USCG Louisiana, US 330 bbl crude; booms deployed; no apparent impact on wildlife
17/8/22 off Port Arthur, pipeline condensate
Some 86 bbl natural gas condensate was released from Stingray Pipeline line on West Cameron Block 498; NOAA Texas, US operator had been repairing damaged pipeline at the time
17/8/22 Malekula Island, Western Star fuel
Fire broke out in cargo of drummed fuel on landing craft used to distribute fuel to islands; three people on FleetMon Vanuatu board were injured; vessel engulfed in fire; no indication of oil spill
20/8/22 off Kushimoto, Ryoshin Maru Chemical tanker (1,200 dwt, 2007), in ballast, collided head-on with general cargo ship Xin Hai 99 with steel; FleetMon Wakayama, Japan cargo ship badly damaged with water ingress and was grounded to avoid sinking; no pollution from tanker
Date Location Plant type Substance Details
Source
2/7/22 Mongstad, oil refinery gasoline Flames, smoke seen in gasoline processing unit at Mongstad refinery, prompting evacuation; staff carried out Maritime Norway controlled burning to relieve pressure and fire was put out later the same day without injuries Executive
8/7/22 Sydney, fuel depot gasoline Some 600 m3 gasoline leaked from storage tank at Imperial Oil depot; plant and nearby residents evacuated; CBC NS, Canada nearby airport helped with response, blanketing spill in foam and building berms to contain spilt fuel
8/7/22 Warri, fuel depot fuels Explosion, fire at Matrix Energy tank farm in Ifiekporo caused panic among locals; five people drowned after Vanguard Delta, Nigeria jumping into river to escape fire, several others injured; cause under investigation
12/7/22 Cagayan de Oro, ammunition shells, Major fire, explosions at army ammunition complex at Camp Evangelista; fire crews called to incident could SunStar Philippines dump ammunition not get close enough; three civilians wounded by shrapnel; cause under investigation
14/7/22 London, chemical hydrogen Leak of hydrogen peroxide from roof of tank at Anchem site during delivery from truck; valve was not CTV Ontario, Canada distributor peroxide opened, causing line, roof to rupture; precautionary evacuation of nearby business but no injuries
17/7/22 Monagas province, pipeline natural gas Fore broke out on PdVSA gas pipeline in eastern region, precise location not recorded; authorities said Merco Venezuela fire was result of “criminal action”, blaming US-backed attacks Press
27/7/22
nr Sussex, pipeline diesel More than 200 m3 diesel leaked from rupture on Bridger Pipeline, reportedly due to crack in weld; spilled The Wyoming, US fuel did not reach any waterway; authorities said “It’s an older pipeline and one of those things that happen” Columbian
31/7/22 nr Karnobat, warehouse ammunition Fire broke out in warehouse of EMCO ordnance company, with some reports of explosions; no injuries; BTA Bulgaria owner told reporters that depot housed obsolete ammunition stored awaiting payment
2/8/22 Wharton, chemical chemicals Shelter-in-place ordered after fire at Prime Eco plant sent cloud of smoke over town; two explosions heard; ABC Texas, US plant road closed during response; no injuries reported; cause unknown
3/8/22
At least eight people were injured in series of explosions at Eurenco military explosives plant in south-west AA Dordogne, France plant France; blasts left plant on fire; fire crews brought situation under control without risk of fire spreading
Bergerac, explosives explosives
4/8/22 Grunewald, munitions munitions
Fire broke out in police munitions storage facility in Grunewald Forest west of Berlin; explosions reported, DW Berlin, Germany storage hampering firefighting efforts; 1-km perimeter established; concerns fire might spread to dry woodland
5/8/22 Matanzas, oil terminal crude oil
Lightning strike sparked fire in crude oil storage tank at Cuba’s largest oil import site; fire spread to three Maritime Cuba more tanks, burned for five days; six firefighters killed in response; Venezuela to assist in reconstruction Executive
14/8/22 Yerevan, market fireworks
At least one person was killed by strong explosion in fireworks storage area in market, which injured more AP Armenia than 50 more and sparked widespread fire; fire crews worked while fireworks continued to explode
15/8/22 Georgetown, automotive nitric acid
Part of Toyota’s plant was evacuated after liquid nitrous oxide was delivered into phosphorus tank in paint WKYT Kentucky, US plant area, generating nitric acid; two workers hospitalised; production suspended temporarily
15/8/22 Madison, chemical chemicals
Massive fire tore through ChemMasters plant, which produces chemicals for mortar and concrete; no injuries Fox Ohio, US plant reported, no evacuations needed; cause of fire and extent of damages not immediately clear News
21/8/22 Owaza, oil refinery gas
Six people killed at illegal oil refinery after using gas cylinder to open ‘oil pot’ (tank?); cylinder exploded Vanguard Abia, Nigeria cylinder during their efforts, killing them on the spot
22/8/22 Hyderabad, pharmaceutical chemicals
Seven workers were injured by explosion in reactors at Sridhar Biotech plant in Jeeditmetla Industrial Estate; Hindustan Telengana, India plant police cordoned area off during response; investigation underway Times
advantage, and another 37 per cent said their organisation goes beyond what is required by the regulations.
On the other hand, there is a clear awareness that there is more that can be done: only 25 per cent believe their organisation’s current infrastructure is equipped to meet future needs, mirroring concerns expressed in the 2021 survey.
THE SEVENTH ANNUAL Global Dangerous Goods Confidence Outlook, prepared by Labelmaster in collaboration with HCB and the International Air Transport Association (IATA), has found some improvements in dangerous goods (DG) operations over the past year, despite the problems posed by doing business in an era of disruption.
“Global supply chain disruptions have put even more pressure on those professionals and companies responsible for shipping goods safely and compliantly,” says Robert Finn, vice-president at Labelmaster. “While there are many areas of improvement over the last year, the survey demonstrated widespread awareness of the need to improve DG processes, training, technology and infrastructure.”
Some of that awareness has been translated into concrete action. For instance, 38 per cent of those who responded to the survey said that their organisation had increased its investment in DG compliance over the past year, a sharp increase from the 28 per cent recorded in the 2021 survey. Similarly, there has been an improvement in the level of C-suite support for DG operations, with more respondents also reporting an increase in confidence in their ability to be compliant and a increase in those noticing regulatory enforcement activities.
There is also, the survey reveals, a solid foundation for compliance. Of those surveyed, 24 per cent said that their organisation sees DG compliance as a competitive advantage and is fully prepared to invest to gain that
“The survey shows that it is critical for organisations to assess their DG operations and identify processes, infrastructure gaps and areas of opportunities. The good news is that making meaningful improvements does not have to be difficult or require significant investment,” says Finn.
Survey respondents identified some particular areas of difficulty, the largest being their ability to handle reverse logistics. The rise of home shopping during the pandemic, as well as supply chain disruptions and facility closures, has led to an increase in product returns that many companies have not had to deal with before. Organisations need to take account of the fact that the product supply chain may now loop back to them and plan accordingly.
Respondents also expressed problems in receiving fast or quality responses when they contact the regulatory authorities, obtaining reliable master data, leveraging the technology they have at their disposals, and actually securing the budget they need to do their jobs effectively. As ever, the regulations they have to deal with are not always easy to handle.
Happily, two-third of respondents indicated that their organisation is prepared to handle dangerous goods at most (if not all) of its locations; they also pointed to the top priorities for improvement:
- Automating processes (61 per cent)
- Harmonising processes across the supply chain (59 per cent)
- Accessing complete and accurate data (52 per cent)
- Obtaining special permits, letters of interpretation, etc (48 per cent)
- Ensuring training is effective and up to date (45 per cent).
There is clearly a problem in getting reliable
information from suppliers, too, with just 27 per cent saying they had complete confidence in the accuracy of safety data sheets (SDSs) they get from their supply chain partners. That lack of confidence extends down the supply chain, with 44 per cent finding problems with shipments being rejected by carriers or freight forwarders, usually without good reason. And, while those of us in English-speaking countries are fortunate that English is widely used around the world, 30 per cent said they found difficulty accessing the regulations or training in their own language.
This year’s survey asked some new questions. For instance: what DG transport rules are most difficult to comply with? Perhaps not surprisingly, only 26 per cent expressed problems in complying with company-specific rules and procedures – they are likely to be expected to comply with their own organisation’s way of doing things – but local regulations (38 per cent), international regulations (45 per cent) and the rules imposed by carriers (43 per cent) were seen as more difficult.
The survey also looked specifically at lithium batteries; 64 per cent of those
surveyed deal with them and face some difficult problems, such as the frequent regulatory changes (74 per cent), having cargo rejected (69 per cent), getting effective supply chain processes in place (67 per cent), and getting effective training (58 per cent).
Another new question looked at how DG professionals are accessing the regulations. Many have gone digital, with 65 per cent saying the prefer to use online or computerbased channels, though 30 per cent still adhere to the printed word. They say they find it easier to access and search for the information they require, that it is easier to share with others when using a book, and digital content takes time to load or, when there is no internet access, impossible to use.
“The growth of e-commerce and proliferation of lithium batteries in global supply chains are two indicators that the number of DG shipments will grow,” says Nick Careen, IATA’s senior vice-president, operations, safety and security. “To handle them safely, we must further improve compliance with global standards. Almost any item can be shipped safely, provided we have well-trained professionals following globally agreed
standards and supported by the right technology and infrastructure.”
That comment is supported by the main takeaways from the survey:
1. Technology is available to automate DG operations and establish reliable processes, reducing the risk of human error and ensuring compliance with current requirements
2. Training is paramount: consider using gamification or 3D training experiences to encourage better engagement from employees
3. Packaging can be improved: consider using innovative packaging solutions to improve efficiency, safety and compliance throughout the supply chain
4. Regulations change: employees and supply chain partners can best be kept up to date by the use of digital materials.
In short, greater process consistency, increased automation and more reliable data are key to facilitating the safe and secure transport of dangerous goods.
The 2022 DG Confidence Survey was conducted during May and June and received 439 responses from DG professionals in various roles, all around the world. Full details of the survey results can be found on the Labelmaster website at www.labelmaster.com/dg-confidenceoutlook/2022-results.
TT Club has pulled together its guidance and advice relating to warehouse safety, following a number of catastrophic incidents, such as those at Beirut and Tianjin. While supply chain safety largely focuses on cargoes on the move, the Club says, safety concerns at those locations where goods are ‘at rest’ are just as critical.
“Whether located in port areas or inland, warehouses are a fundamental component of the global supply chain and, arguably, they have become increasingly important nodes, as just-in-time supply chain models are being adjusted with a more conservative approach to longer-term inventory storage,” comments Mike Yarwood, TT’s managing director of loss prevention. “We are keen to increase awareness of all key risks, however our role at TT is also to guide operators in the prevention of incidents. Our TT Brief series seeks to provide pithy messaging to support toolbox talks and good operational practices.”
The Club has brought together several of its ‘TT Brief’ guidance documents, which can be found on its website at www.ttclub.com/ loss-prevention/warehouse-risks/.
ICHCA International has issued a Safety Alert following the recent fatal accident in Aqaba, Jordan, in which a tank container with chlorine ruptured after falling from a sling during loading aboard ship. ICHCA notes that the use of gantry cranes and spreaders is the preferred method of lifting containers and tank containers on and off ships in port but acknowledges that not all terminals have this equipment available; in those terminals it is accepted practice to use wires, chains or single-rope cranes. If that is the case, there are some key principles that need to be taken into account.
ICHCA’s Alert, available at https://ichca. com/wp-content/uploads/2022/08/SafeLifting-of-ISO-Containers-and-Tanks-UsingHooks-and-Wires-Issue-2.pdf, details the
limitations of alternative lifting arrangements, gives an indication of the pre-use checks that are vital to avoid accidents, and provides links to relevant standards and guidance.
AP Moller-Maersk is to equip its entire containership fleet with the HydroPen™ firefighting system from Viking Life-Saving Equipment. HydroPen is designed to allow crews to tackle a fire in a container aboard ship, using water pressure from a deck fire hose to drive a drilling unit to penetrate the container and flood it with water.
“Our experience has been that, once a leading container line appreciates the effectiveness of HydroPen as a firefighting tool, fleetwide adoption generally follows,” says Viking’s product manager Lasse Boesen. “Usable on or below deck, HydroPen has increasingly been recognised for its usefulness on board container ships of all sizes, and it has seen action in real situations.”
www.viking-life.com
EPE, Environmental Protection Engineering, has introduced a cloud-based platform to
help ship operators and suppliers keep their Inventory of Hazardous Materials (IHM) up to date. The new platform, HazDash, eases regulatory compliance by streamlining the IHM maintenance process, making information available in real time. HazDash can be linked to a vessel’s ERP system to instantly notify users of new orders and keep a record of IHM declarations.
“To ensure regulatory compliance and that all hazardous materials onboard are correctly documented, it is essential that a vessel’s IHM is properly maintained. In the past there have been issues around obtaining IHM documentation, so EPE designed HazDash to offer shipowners and suppliers a platform which allows both sides to exchange information securely and ensure IHM-related orders and documents can be accessed and submitted with ease,” explains Dionysios Konidaris, Head of the IHM Department at EPE.
Eleni Polychronopoulou, executive vicepresident at EPE, adds: “EPE prides itself on providing customers with solutions which not only support regulatory compliance and efficient vessel operations but protect the environment and ensure crew safety.
Identifying, managing and accurately recording hazardous materials onboard are essential to ensure the health and safety of the crew and that the environment is protected throughout a vessel’s operational life and when the time comes for it to be recycled.” www.epe.gr
The US Chemical Safety Board (CSB) has released a guidance document on its Accidental Release Reporting Rule, which took effect this past March. The new guidance is provided so that owners and operators of facilities involved in the production, processing, handling or storage of chemical substances may better understand the rule and comply with the requirement to submit a report to CSB.
The guidance document clarifies key terms found in the reporting regulation, such as what constitutes regulated substances for the reporting requirement and the threshold amounts related to property damage for which reporting is required. The guidance also addresses specific scenarios and emphasises that, if an owner or operator is unsure about whether to report a release to the CSB, they should do so rather than risk violating the rule by failing to report.
CSB also published a set of data in July covering the period following the rule’s entry into force, which included 162 incidents, of which 25 involved fatalities. The guidance document can be found on the CSB website at www.csb.gov/assets/1/17/csb_guidance_on_ accidental_release_reporting.pdf?16818.
GET READY FOR NEW IMDG Amendment 41-22 to the International Maritime Dangerous Goods (IMDG) Code will take effect on 1 January 2023 and, while it will not be mandatory for another year, many carriers will expect compliance as soon as possible. To help shippers and others in the supply chain prepare for the changes, IVODGA, the International Vessel Operators Dangerous Goods Association, is planning a one-day webinar on 18 October. The instructorled course will take place online from 09.00 to 17.00 EST and will include training handouts provided prior to the event.
Full information can be found here: https://shop.ivodga.com/webinar-imdg-codeamendment-41-22-recurrent-trainingoctober-18-2022.html.
THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 60th session in Geneva this past 27 June to 6 July. As the third of the four meetings of the Sub-committee for the current biennium, the Experts faced a packed agenda, with plenty to be discussed and decided ahead of the fourth and final session later this year, after which the parent Committee will formally adopt the changes that will appear in the 23rd revised edition of the UN Recommendations on the Transport of Dangerous Goods (more widely known as the UN Model Regulations).
The session was chaired by Duane Pfund (US) with Claude Pfauvadel (France) acting as vice-chair; it was attended by Experts from 23 countries, observers from Latvia and Turkey, and representatives of the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the Food and Agriculture Organisation (FAO), the
International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO) the World Health Organisation (WHO) and 27 non-governmental organisations.
As has been the case since the emergence of the Covid-19 pandemic, the meeting was held in hybrid format, with both online and in-person participation. However, the UN Office in Geneva is aiming to return to ‘business as usual’ and the sessions of the Sub-committee (and other bodies) in 2023 will be in-person only.
As is the normal arrangement, all the documents relating to explosives were passed on to the Explosives Working Group (EWG), which met under the chairmanship of Ed de Jong (Netherlands). It was noted that he is planning to retire in September 2023 and that
a new chair will be needed. He also felt the need to comment on the difficulty experienced in finding an appropriate room for EWG to meet, given the large number of interested experts eager to take part in person.
The Institute of Makers of Explosives (IME) proposed that certain ammonium nitrate emulsions (ANEs) that satisfy the acceptance criteria of the 8(e) test should not need to be subjected to the 8(d) test and should be considered suitable for carriage in portable tanks as oxidising substances.
The idea was not wholly acceptable to the other Experts. Belgium felt that thermal diffusivity should be included as a criterion for qualification and also that it should be stipulated that transport tanks should be under-pressurised or to relieve at a relatively low pressure. The US also pointed out that special provision 309, which applies to ANE shipped under UN 3375, has some loose wording that may allow products to be covered that exceed the specified ranges.
More significantly, the Responsible Packaging Management Association of Southern Africa (RPMASA) revealed that, on the basis of tests it had been involved in carrying out, thermal diffusivity was higher than assumed, certainly when undertaking larger-scale testing than envisaged under Test Series 8.
MULTIMODAL • THE UN EXPERTS’ 60TH SESSION WAS HEAVING BOTH WITH AGENDA ITEMS AND DELEGATES. THEY DID, HOWEVER, ADOPT SEVERAL AMENDMENTS FOR THE NEXT ORANGE BOOK
EWG supported IME’s plan to continue work, taking into account the observations made and the substantial feedback from various Experts.
The European Chemical Industry Council (Cefic) proposed amending 1.2.1.4.3 and 20.2.5 of the Manual of Tests & Criteria (MTC) to add organic peroxides for which no self-heating test N.4 should be conducted. The US asked why N-series tests should be run on organic peroxides in any case, since they take precedence over flammable solids in transport classification, to which Cefic responded that the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) requires testing for all hazard criteria. Cefic also noted that the same argument it made for organic peroxides could apply equally to polymerising substances.
Overall, there was agreement that Cefic’s proposal should be accepted, though it would need to be put forward again in the form of an official document; this could include polymerising substances and also additional work on physical hazard testing.
The UK and US prompted a discussion on the availability of the sheet steel needed for the construction of tubes for the Koenen test, putting forward a suggestion that minimal
variations in tube thickness and mass should be allowed. EWG was alert to the problem and suggested that round robin testing should be undertaken to validate the use of tubes with slight variations from the standard; several experts expressed their interest in participating.
A joint paper from the Council on Safe Transport of Hazardous Articles (COSTHA) and the Sporting Arms and Ammunition Manufacturers’ Institute (SAAMI) took up earlier discussions on the potential creation of a scientific and conservative method to reclassify very low hazard articles that contain very small amounts of explosive substances. There remained a lot of support for the plan, not least its aim to generate harmonisation in interpretation, although there were also yet more comments. For instance, Sweden observed that there might be some products that could be excluded from Class 1 but that might still warrant coverage under the security provisions; perhaps, therefore, there needs to be a further tier below Division 1.4S. EWG asked SAAMI to continue exploratory work, giving it free reign to consider additional criteria.
Sweden submitted its own informal document, pointing out a difference between the definition of Class 1 in 2.1.1.1 of the Model
Regulations and in MTC, recommending amendments. The UK was of the opinion that this illustrated the different between the application of strict criteria (as in MTC) and policy needs (as reflected in the Model Regulations). Some products may have been placed outside Class 1 for other than purely technical considerations and that flexibility is needed. It might be better, the UK suggested, to provide some guidance as to why there are differences in definition rather than aligning the definitions.
EWG concluded that Sweden had identified genuine issues in inconsistencies that will require additional work. It agreed with the UK’s point about using guidance rather than changing the definition of Class 1 in the Model Regulations but picked up on two specific proposals from Sweden to amend the definition of ‘pyrotechnic substance’ and insert a definition for ‘explosive effect’ in 2.1.1.3. After some amendments, these were adopted but placed in square brackets for confirmation at the next session; they both involve taking the quantity of pyrotechnic substance into account when calculating the net explosive mass. The Sub-committee spotted that these also appear in GHS so invited Sweden to submit a formal proposal to both sub-committees at the next session.
Cefic appealed for a new entry for 5-trifluoromethyltetrazole, sodium salt (TFMT-Na) in acetone as a desensitised explosive under Class 3. TFMT-Na is a dry substance and a precursor to a new insecticide that is entering the market. As it has explosive properties, it is only handled and transported as a solution in acetone; the German competent authority has issued a temporary approval for its transport under UN 3379 Desensitised explosive, liquid, nos but, for a permanent solution, Cefic invited the Sub-committee to consider a specific entry in the Dangerous Goods List. In addition, Cefic proposed a small amendment to the last sentence of 2.3.1.4, an amendment to SP 28 and a new packing instruction.
The US pointed out that SP 28 is only assigned to entries of Division 4.1 and questioned if it would not be more appropriate to create a new special provision applicable to
Class 3 – or, indeed, if a new entry for TFMT-Na would need a special provision at all. In the end, EWG agreed with Cefic’s suggestion, slightly amended.
A new UN 3555 entry is added to the Dangerous Goods List for TRIFLUOROMETHYLTETRAZOLE – SODIUM SALT IN ACETONE, with not less than 68% acetone by mass, Class 3, PG II. Special provision 28 and 132 are assigned, along with packing instruction P303 and special packing provision PP26. The Limited Quantity value is 0 and the Excepted Quantity value E0. The scope of SP 28 is expanded to accommodate Class 3 entries, with reference to 2.3.1.4 added. The new packing instruction P303 applies only to UN 3555, and authorises transport in 1H1 plastics drums with non-removable heads and a maximum capacity of 250 litres these packagings must be transported in an upright position and, according to PP26, be lead-free.
EWG also felt it would be worth examining whether other liquid desensitised explosives of Class 3 could be assigned to SP 28; Cefic will take a look and come back with a
proposal. A review of other entries already assigned to SP 28 will also be carried out.
On behalf of the World Nitrocellulose Producers Association (Wonipa), Cefic also appealed for a defined set of nitrocellulose membrane filters (below) to be excluded from classification under Division 4.1. Its paper pointed out that billions of these filters are used around the world each year in diagnostic and other life science applications, a number that has expanded hugely during the Covid-19 pandemic. Such filters are normally shipped under UN 3270, for which SP 237 provides for competent authorities to exempt filters in the form in which they are to be transported, when they are determined to meet the test criteria for the propagation of a detonation. Making this relief widely applicable to defined types of filter would, Wonipa argued, help the international diagnostic effort.
There were plenty of questions about the proposal and some Experts felt further testing was needed. However, EWG recommended acceptance of the proposal, with some amendments, although further work will be carried out, with additional tests and a
definition on the term ‘tightly packed’. The Sub-committee preferred to receive the final text in an official document at the next session.
China raised questions about the current assignment of UN 2029 Hydrazine, anhydrous, to Class 8 with Class 3 and Division 6.1 subsidiary hazards. Following some explosion accidents involving the substance in its pure form, tests were undertaken by Nanjing University, China felt it would improve safety if SP 132 were to be assigned, along with a new special provision to warn that, when overconfined in packagings, the substance may exhibit explosive behaviour; it also proposed adding special packing provision PP5, which requires carriage in gas cylinders or gas receptacles. China also floated the idea of adding a Class 1 entry.
EWG supported the idea of providing a warning about the potential explosivity of the substance in confinement but did not agree on the wording offered by China. It was also felt that more testing would be useful, including testing for self-reactivity. China was invited to provide further information.
China also proposed a new UN number and proper shipping name for N-nitroaminoimidazoline under Division 5.1. EWG could not support the proposal at this
point, as it had some questions about the
In an informal document, the Netherlands samples of consumer fireworks to verify that they can meet the national legal stipulation that they were packed in such a way that a Division 1.4 classification was justified. That testing found a failure rate of 30 to 40 per
performance of consumer fireworks have
Germany reported similar results from its testing, and highlighted how the metal cage
packages can make a difference to the results. EWG agreed that more discussion would be valuable, including a review of the default table, clarification of the 6(c) test and ideas for
documentation provided by manufacturers.
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COSTHA proposed adding a new entry for pyrotechnic material, noting that several competent authorities have approved these
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devices in various classes. There were several comments made and, while there was some support for a dedicated entry, it could not be agreed whether this should be in Class 1 (possibly 1.S) or Class 9. EWG supported further work and discussion, recognising that there is a lack of harmonised classification for international transport. COSTHA offered to prepare a revised paper for the next session.
The secretariat had been editing the latest version of the guiding principles and, having found an error in section C.3, the guidelines for assigning portable tank special provisions, took the opportunity for a more in-depth review. One outcome was the assignment of TP1 to UN 0331 Explosive, blasting, type B; IME reported that this is only used for ammonium nitrate fuel oil (ANFO) mixtures and therefore there is no need for the degree of filling requirement stipulated by TP1. EWG does not believe that TP1 should be assigned to UN 0331.
Spain proposed to clarify some terms relating to the transport of Class 7 material, particularly the use of the term ‘activity concentration’, which is not defined, to mean the same as ‘specific activity’, which is defined in 2.7.1.3. The wording ‘activity concentration’ appears throughout the Model Regulations and also in the International Atomic Energy Agency’s (IAEA) regulations. Spain proposed adding a Note to the definition of ‘specific activity of a radionuclide’ to indicate that ‘activity concentration’ may be used as a synonym.
The Sub-committee noted that IAEA was in the process of considering amendments and asked the secretariat to see whether the change might be appropriate, with discussion due to resume at the next session.
Germany and Spain followed up on discussions at the previous session on an informal paper from Spain looking at the assignment of packing groups for articles. While the Sub-committee had decided in 2012 to delete packing group assignments for articles, some are still indicated, which is now in contradiction of the principle expressed in
2013. Spain had analysed those remaining entries where articles are assigned a packing group and offered ways to provide alternative provisions, while maintaining the intent. The Sub-committee agreed with the proposals, adopting four changes:
• Reference to ‘article’ is deleted from the descriptive text for column 5 in 3.2.1
• The ‘II’ in column (5) is deleted from UN 2028, 2870 (second entry) and 3165
• In 4.1.4.1, packing instruction P803, which is applicable to UN 2028, a sentence is added at the end: “Packagings shall conform to the packing group II performance level”
• In 4.1.4.1, packing instruction P301, applicable to UN 3165, the first sentence is modified by replacing ‘4.1.1’ by ‘4.1.1.1, 4.1.1.2, 4.1.1.4, 4.1.1.5, 4.1.1.6’.
China remarked that it might also make sense to delete reference to packing groups for polyester resin kits of UN 3269 and 3527; the Sub-committee suggested this should be discussed at the next session on the basis of a separate proposal.
The Compressed Gases Association (CGA) and European Industrial Gases Association (EIGA) returned to the long-running topic of creating new entries for disilane and other
pyrophoric gases, which first appeared in 2017. After taking heed of comments made, the two bodies returned with a specific proposal for disilane, which is currently shipped under UN 3161 as liquefied gas, flammable, nos. The problem is that this UN number only partially reflects the flammability of the product. Silane (UN 2203) and other pyrophoric materials are forbidden for transport by air, both in cargo and passenger aircraft, and CGA and EIGA expressed their wish to clarify the hazard identification of disilane to ensure that there is no possibility of it being transported by air.
The proposal drew several comments from the Experts and it is clear that more work is needed on pyrophoric gases under pressure; China also felt that special packing provision ‘q’ should also apply to diborane (UN 1911). Nevertheless, for now the Sub-committee agreed with the proposal, adding a new entry for disilane (UN 3553, Division 2.1) with ‘0’ in column (7a) and ‘E0’ in column (7b). It is assigned packing instruction P200, with a new row added in table 2 of P200.
The Netherlands followed up on its earlier informal document with an appeal for a revision of the classification of
tetramethylammonium hydroxide (TMAH) which, on the basis of human experience, appears to present a toxicity hazard that is not currently recognised in its solid (UN 3423) or liquid (UN 1835) forms. The Dutch paper included a lot of detailed information, which was supplemented by an informal document presented by the Dangerous Goods Advisory Council (DGAC) and Cefic. The Experts expressed their preference for one amendment proposed by the Netherlands, while Sweden suggested a transitional measure may be needed. The Netherlands will return at the next session with a revised proposal taking account of the
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The World Coatings Council (WCC) informed the Sub-committee of a looming problem for its members: having moved away from solvent-based formulations for paints, printing inks, adhesives and related materials, with water-borne formulations now the norm, WCC finds that changes to GHS classification relating to the preservatives that are added to those products to keep them from spoiling result in them being regulated for transport
as environmentally hazardous substances (UN 3077 and 3082). Oddly, the new and much safer water-borne products are being regulated more severely than the more dangerous solvent-based products they
The issue had already been brought to the Joint Meeting of RID/ADR/ADN experts, where it had been recognised that industry needs time to secure an adequate supply of packagings capable of meeting the standards that now apply; a temporary derogation was agreed, running to 30 June 2025. However, WCC said, it does not believe that the required packaging will be available in all parts of the world by then and, in any case, there is a need to harmonise with maritime regulations since these materials are often transported by sea.
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WCC offered two options for resolving the issue, though neither found favour with the Sub-committee, which was concerned that by applying them generally to UN 3077 and 3082 it could have a safety impact on the transport of other dangerous goods. WCC volunteered to carry out further work and return with a new
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China returned with an official document following discussion at the previous session of its idea to add specific text to 6.1.3.1 on the location of packaging marks. The issue it sought to address was the potential for the marks to appear on a removable head and, if this component is changed or lost, then the mark and the information it contains is no longer available, or may be incorrect.
The Sub-committee agreed with the proposal, adopting an amendment to the first sentence of 6.1.3.1, which will now begin: “Each packaging intended for use according to these Regulations shall bear marks on a non-removable component…”. In addition, a transitional measure is added as a Note after the first paragraph, giving a cut-off point of 31 December 2026.
China also returned to the topic, raised a year earlier, of providing an exemption for manufactured articles containing small amounts of gallium, analogous to that provided for manufactured articles containing small amounts of mercury. China had proposed a small amendment to SP366, though this did not prove acceptable, and it was suggested that a new entry might be the most appropriate means of addressing the proposal.
This time China’s proposal was adopted. It includes a new entry: UN 3554 Gallium contained in manufactured articles, Class 8. It is assigned SP366, with a 5 kg limited quantity limit, ‘E0’ in column (7b) and packing instruction P003 and special packing provision PP90. In SP366, “or gallium” is added after “mercury” in the first sentence; a similar change in the second sentence is in square brackets pending confirmation by the ICAO Dangerous Goods Panel at its November 2022 session. A change to SP356 also refers to gallium and UN 3554, with a corresponding addition in PP90.
Germany and the US both submitted informal documents prompted by the emergence of the Monkeypox virus around the world. The Sub-committee agreed with Germany that the classification of the virus as a Category A infectious substance was not justified by international guidelines and, in line with other similar viruses, that should apply
only to cultures. Therefore, in the table in 2.6.3.2.2.1, “(cultures only)” is added against “Monkeypox virus” for UN 2814.
Germany noted that it was planning to introduce a multilateral agreement under RID/ ADR to allow the carriage of clinical samples and other material under UN 3373 or 3291.
The paper from the US was rather more wide-reaching, urging the addition of a new Note to 2.6.3.2.2.1 to clarify that the table in that paragraph is an indicative list and, when an appropriate public health authority determines that a particular infectious substance (which may be indicated as Category A in the table) is more appropriately classified as Category B, then that substance may be transported as such. This raised some concerns over the international harmonisation of the transport regulations and the US offered to review the proposal and submit a
new document at the next session.
In an informal document, Germany proposed adding a Class 8 subsidiary hazard to UN 1040 Ethylene oxide, based on a new harmonised classification included in the 14th adaptation to technical progress (ATP) of the EU’s Classification, Labelling and Packaging (CLP) Regulation. However, as the proposal did not contain detailed data and time was running short, the Sub-committee did not feel it could agree with the proposal.
Germany will submit an official document for the next session.
The second part of this report on the UN Sub-committee’s June/July session in next month’s HCB will cover discussions on energy storage systems, the transport of gases, global harmonisation, unified interpretations, GHS issues and miscellaneous proposals for amendment.
chemical hazard information on request to residents living within six miles of the facility. There are also some editorial amendments for clarification.
EPA says these proposed changes will provide further protection for vulnerable communities from chemical accidents, especially those living near facilities with high accident rates. The changes aim to strengthen the existing programme by including new safeguards that have not been addressed in prior RMP rules.
THE US ENVIRONMENTAL Protection Agency (EPA) has published proposals to amend its Risk Management Program (RMP) regulations, following a review by the Agency. The proposed revisions include several changes and amplifications to the accident prevention programme requirements, enhancements to the emergency preparedness requirements, increased public availability of chemical hazard information, and several other changes to certain regulatory definitions or points of clarification.
The proposals, found in the Safer Communities by Chemical Accident Prevention (SCCAP) rule signed on 18 August, follow an Executive Order issued by President Biden in January 2021, after which EPA carried out an informal consultation. The changes include some amendments proposed in 2017 but never implemented, after a reconsideration in 2019 under the Trump administration. Publication of the SCCAP rule follows an open comment period in June and July, along with two virtual public ‘listening sessions’.
The SCCAP rule does not broaden the scope of the RMP regulations but does add a number of additional requirements, particularly in the area of accident prevention. These include but are not limited to:
• A greater emphasis on addressing natural hazards and loss of power
• A requirement for justification in the Risk Management Plan when hazard evaluation recommendations are not adopted
• Requirements for a safer technologies and alternatives analysis (STAA) for certain sites and operations
• Requirements for the next scheduled compliance audit to be conducted by a third party in certain circumstances
• Requiring employee participation in resolving process hazard analyses, compliance audit and incident investigation recommendations
• Community notification procedures for accidental releases, with release notification data to be provided to local responders
• A ten-year frequency for field exercises
• New requirements for a facility to provide
The proposals have not gone down well with industry, which fears a lot more costs with little benefit. Eric R Byer, president/CEO of the National Association of Chemical Distributors (NACD), responded to the proposals by saying:
“NACD shares the EPA’s mission of preventing chemical accidents, improving preparedness, practicing environmental stewardship, and protecting communities. However, EPA’s proposed changes to the RMP rules, as announced last week, would place new complex and burdensome regulatory requirements on businesses already in compliance with existing law. RMP’s standing regulations are not only comprehensive and robust, but, according to the EPA itself, so effective in preventing and mitigating chemical accidents across the nation that additional costs may not justify additional requirements.
“At a time when American businesses face seemingly insurmountable inflation challenges and a historically unstable supply chain, the EPA should not attempt to cast unnecessary regulatory burdens on an industry that not only serves a unique and integral role in the US economy but also operates in an impressively safe, secure, and environmentally sound manner. Instead, we urge the agency to dedicate its efforts toward ensuring all chemical facilities fully understand their safety and environmental protection regulatory obligations through outreach, compliance assistance, and strict enforcement of existing regulations rather than expansion for the sake of expansion.”
Full details of the changes to the RMP rule can be found on the US EPA website at www.epa.gov/rmp.
RISK MANAGEMENT • US EPA IS PROPOSING TO STRENGTHEN THE RMP REGULATIONS TO PROVIDE GREATER PROTECTION FOR COMMUNITIES. INDUSTRY FEELS THIS IS THE WRONG WAY TO IMPROVE MATTERS
enforcement officers for any questions around ADR interpretation; it collates roadside enforcement data on behalf of the Department for Transport (DfT); and supplied training materials to all UK police forces via the College of Policing Knowledge Hub, which has reduced costs and allowed more officers to be trained to a consistent standard.
THE ANNUAL TWO-DAY conference held by the UK Vehicle Certification Agency (VCA) has as its main aim the circulation of information about regulatory change to the affected community – mainly trainers, dangerous goods safety advisers (DGSAs) and compliance personnel. But it also provides an update on the activities of the enforcement agents and pointers to where non-compliance is being encountered.
Therefore, at this year’s seminar, held at its usual venue in Daventry this past 7 and 8 June, along with the presentations updating delegates to the changes they can expect in the 2023 edition of the various regulations governing the transport of dangerous goods by the different modes (HCB September 2022, page 42), other presentations looked at broader safety and enforcement issues.
There were, though, some absentees, unable to attend in person due to Covid restrictions or other commitments. As a result, VCA’s Keith White was called on more than once to act as a stand-in, a role he played particularly well when going through the details provided by Terry Harvey and Jason Dearsley, police officers who also take a leading role in the National Carriage of Dangerous Goods (CDG) Practitioners Forum.
The Forum was established in 2000 to coordinate and align the activities of the 42 police forces in the UK in terms of dangerous goods transport, as well as to form a bridge between the enforcement bodies and industry. It also acts as a central point of contact for industry, government agencies and
For those who attend the VCA seminar regularly (and the same goes for other, similar events elsewhere in the world), the annual review of common ADR infringements is perhaps the most depressing aspect, being headed this year – as ever – by issues relating to fire extinguishers. The most common issue is that the annual service is overdue, sometimes by more than a year. Keith pointed out that this is not just a UK problem.
Other non-compliance issues relating to fire extinguishers are missing seals, a lack of pressure, worn or missing service labels, or a lack of service dates. These are all small but critical issues and ought to be simple to remedy; indeed, it has often been observed that such failings should be noticed by the driver on a walk-around of the vehicle before it leaves the yard in the morning. Police and other enforcement personnel are aware of the fact that fire extinguishers are regularly stolen from vehicles while the driver is on a rest
CONFERENCE REPORT • THIS YEAR’S VCA SEMINAR HEARD HOW ROADSIDE ENFORCEMENT CONTINUES TO FIND A FAMILIAR LIST OF DEFECTS. TECHNOLOGY IS BEING HARNESSED TO HELP
break but they need to be replaced and looked after regularly.
Similarly, roadside inspections continue to find that the Instructions in Writing required by 5.4.3 in ADR are regularly not updated to the most current format. There are still a lot of vehicles carrying pre-2017 Instructions, which do not have the class 9A label, and some with pre-2015 Instructions. When asked, drivers or operators often seem unaware that the format for the Instructions change every so often (though not that often), passing the blame onto their DGSA for failing to alert them to it. Again, this should be a simple issue to prevent, as the four-page Instructions in Writing are freely available to download, in 26 languages, from the UN Economic Commission for Europe’s website.
The third major non-compliance issue is the failure to display orange-coloured plates in the correct position or orientation. The presentation showed a number of different ways of getting this wrong, with dirty, hidden or
poorly fixed plates on containers and vehicles.
Finally, poor loading is the most common cause of the loss of a load and injury to road users and other drivers. Terry and Jason’s presentation said: “At the roadside we can quickly identify those hauliers who invest in training and equipment for load security. Likewise, we can also notice those who see load security as an afterthought or rely on gravity and friction alone.”
That statement was support by a number of alarming images: an 8-tonne combine harvester cutter strapped down on top of drums of flammable liquids in a curtain-sider (“only in Suffolk!”); 720 litres of UN 2922 corrosive liquid, toxic, PG I, strapped on pallets but standing insecure on top of other dangerous goods; an intermediate bulk container (IBC) with UN 3426 acrylamide that had not been secured and fell out of the side of trailer when the curtain failed as the vehicle was negotiating a roundabout, damaging the IBC’s valve and leaking some 10 litres to the
ground, causing the road to be closed for six hours (and the driver to be sentenced to six months in prison); and 1-tonne flexible IBCs with UN 1942 ammonium nitrate held in place only by overhead straps rated at 400 kg.
There are many elements to a roadside inspection, which rely very much on the availability of the necessary information. It is hoped that the increasing use of electronic transport documents and other digitalised systems could be a help in this, but experience so far seems to indicate that they are just posing new challenges for the enforcement officer and driver alike.
For instance, the Practitioners Forum is finding that drivers sometimes simply don’t know how to work their onboard equipment and cannot actually access the transport document. Sometimes the equipment itself is not serviceable – it may have a low battery, be damaged or have been stolen. And sometimes the device cannot produce all the information required under ADR at the roadside. Perhaps that will change as the technology beds in but for now it is failing to provide the solutions expected.
The presentation concluded with what might happen in the event that an inspection uncovers a breach of the regulations. The Driver and Vehicle Standards Agency (DVSA), in concert with other agencies, publishes an Enforcement Sanctions Policy, which was most recently updated in May 2022. Those eager to know what their punishment might be can download a copy of the document from www.gov.uk/government/publications/ enforcement-sanctions-policy.
Finally, Terry and Jason urged responsible companies and employees, who comply with the regulation, to provide any information to their local police force if they know about hauliers who are cutting corners when moving dangerous goods.
More detail on the work of DVSA was provide later in the seminar by Howard Forrester, enforcement policy specialist at the Agency. DVSA is responsible for carrying out driving tests, vehicle testing and vehicle operator licensing, as well as enforcement. Furthermore, within its enforcement remit,
roadside compliance checks are just one of a number of responsibilities. As such, while it has some 4,600 staff, only a few can be found peering into lorries looking for non-compliance in the carriage of dangerous goods.
In the 2021/22 enforcement year, DVSA checked 164,000 vehicles at the roadside, finding an overall non-compliance rate of 32 per cent. That figure was 30 per cent for heavy goods vehicles (HGVs) but 48 per cent for light goods vehicles (LGVs). Within that, just over 2,000 vehicles carrying dangerous goods were checked, which led to 504 prohibitions for breaches of the dangerous goods regulations. Those prohibitions represented 20 per cent of GB-registered HGVs, 27 per cent of non-GB HGVs, but an astonishing 81 per cent of all LGVs.
“Overall we have an issue with LGVs,” Howard pointed out, “but we don’t have the resources to go after them as hard as we would like.”
Technology is again the tool being used to try to overcome that limitation on resources, with a number of innovative approaches being taken. Automatic Number Plate Recognition (ANPR) is being used increasingly widely across the UK, feeding information into a national system. While for the average
motorist that means they need to be more careful about speeding, for DVSA is makes it easier to locate vehicles they suspect of being non-compliant. Howard showed on image of a tractor unit that had been a ‘target’ for DVSA; when it was located, it was found to be using false number plates, have serious brake defects, no tachograph records, and to have had no Vehicle Excise Duty for more than 12 months; it was also suspected of having a manipulator device on the speed limiter.
ANPR is also helping identify and locate over-weight vehicles when used in concert with weigh-in-motion sensors (WIMS), which are fitted under the road surface and allow a vehicle to be weighed axle-by-axle automatically as it drives over that stretch.
DVSA is bringing some of this together through the use of dedicated short-range communication, designed to dynamically identify tachograph events and faults. A number of units are to be piloted during 2023 and 2024, alongside some new onboard diagnostics tools to replace existing equipment that is now outdated.
This year’s VCA seminar finished, as it so often does, with a very personal presentation
from Nick Deal, manager of logistics development at the Road Haulage Association (RHA), giving his current perspectives on the road haulage of dangerous goods. He started with an alarming picture, taken only week before in South Benfleet, of a fuel tanker engulfed in fire and responders spraying it with foam from a safe distance. That was a salutary reminder of what can happen when things go wrong.
What is the size of the risk? Nick quoted the TT Club, which estimates that 10 per cent of global container sea freight is declared dangerous goods; for road in the EU and UK the figure is put at 4 per cent. But that only counts correctly declared dangerous goods –something like another 5 per cent can be added for mis-declared and undeclared cargo, he said. To move dangerous goods safely, the haulier has to be trained, its staff and drivers have to be trained, and it has to have access to a DGSA.
Nick highlighted the change about to come, which had been overlooked or forgotten by many in the audience, with the extension of the DGSA requirement to cover consignors. This was included in the 2019 edition of ADR but a transitional provision was included, which expires on 31 December 2022. It should
be noted that, while there is a six-month period from 1 January 2023 during which the provisions of ADR 2021 may be followed, that does not apply to this transitional provision.
Nick also pointed to 1.8.3.2 in ADR, which provides for competent authorities to disapply the requirements under certain circumstances, such as the small quantity provisions of 1.1.3.6, 1.7.1.4 and Chapters 3.3, 3.4 and 3.5, or for undertakings for which the carriage (and related packing, filling, loading or unloading) of dangerous goods is not their main or secondary activity. The GB Carriage of Dangerous Goods etc (CDG) Regulations include this relief without the need for reference to the competent authority, for domestic transport only.
But this new requirement suggests there will be more work for DGSAs. However, Nick
noted, while there were some 3,300 DGSAs in the UK ten years ago, that figure has fallen by nearly 40 per cent to just over 2,000. Has this decline in expertise already had an effect on compliance? How will the additional demand be met? And how many of those existing DGSAs have any competence in the transport of radioactive materials?
A similar situation persists for HGV drivers. In 2019 there were just over 300,000 HGV drivers in the UK, which was even then described as a “chronic shortage”. Since then, the figure has fallen to 252,800. In an attempt to stem the tide, DfT has authorised remote training, at least until the end of this year, due to the difficulty in training drivers during the pandemic, and a number of hauliers have introduced apprenticeship schemes. So far, 2022 is looking a little better, with the number
of HGV driver tests in the first quarter up by 43 per cent compared to the same period in 2019, though costs are also going up.
However, Nick reported that there is a desperate shortage of rest facilities and overnight parking spaces. If industry and government can do something about this and provide drivers with better facilities when they are away from home, there is a better chance of keeping drivers in the industry. RHA has set up a petition on its website to campaign for that.
Heading home, the audience were urged to keep their eyes on the road and stay safe, so they can come back again next year for the next annual update. VCA is likely to make some changes to the programme and venue and will provide more information on its website, www.vehicle-certification-agency.gov. uk, in due course.
They say that training is the best way of avoiding accidents. Effective training and regular refreshers encourage people do things properly and safely. But don’t forget that training can sometimes involve getting inexperienced people to do something dangerous. What happens if that training is responsible for accidents?
The FBI found that out in a rather serious way in September. Special agents from FBI’s Philadelphia field office were conducting training in explosives at the SCI Phoenix prison in Skippack, with representatives from several state, county and local law enforcement agencies. At some point in the exercise, a bomb detonated, injuring one FBI agent, a state trooper and three sheriff’s deputies; two of those hurt were hospitalised with significant injuries. The cause of the accident remains under investigation, led by the FBI and Pennsylvania state police.
There’s an old saying in the newspaper business: “Dog bites man” is not news; “Man bites dog” is front-page stuff. So, ever alert to human/animal stories, we were drawn to a report from Western Australia, where in September a kangaroo attacked and killed an elderly man in Redmond. Not only that, but the irate animal – a western grey kangaroo –actively prevented paramedics from reaching the casualty.
Police said they suspected that the 77-year-old man had been keeping the kangaroo as a pet (!) but added that the males can become aggressive. It did this particular kangaroo little good as police were forced to shoot it dead to allow responders to get to the
man, who had received “serious injuries” in the attack.
Our interest was also piqued in September by a report from the US National Transportation Safety Board (NTSB) about a collision between a train and a barge. Clearly one or the other must have been in the wrong place? Trains can’t run on the water and barges don’t move on tracks, one might think.
Indeed, the BNSF train involved was on its track and the barge it hit was – more or less – in the Upper Mississippi near Galland, Iowa.
What happened was that the captain of the tug towing empty barges was struggling to control his tow in high and gusty winds, so pushed the barges up against the bank of the river. Unfortunately, this meant that one of the barges was overhanging the railroad track running alongside the river – the barge’s crew did not notice as it was dark at the time. While they were checking the track clearance, they saw the light of an oncoming train appearing around a bend.
That oncoming coal train saw the lights of the barge but its crew did not realise until too late that it was in their way, and the loco struck the bow of one barge. Two locos and ten hopper cars derailed, six of the cars falling into the river. Two of the train’s crew were injured. Total damages were estimated at $1.9m.
NTSB determined that the location was shown on electronic navigational charts as a ‘caution area’ and that an exclamation mark led to an explanatory note, warning of a ‘risk of train collision’. The barge master and pilot said they had been trained but did not see the exclamation point because the screen was set to night-time mode.
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