HCB Magazine April 2020 by Enhesa Product

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KEEP ON TRUCKING CORONAVIRUS CAN’T STOP THE WHEELS TURNING CHEMICAL LOGISTICS IN THE US UN EXPERTS WORK ON ORANGE BOOK MORE TANKAGE FOR TERMINALS

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EDITOR’S LETTER

Talk about bad timing… Only last month in this column I was

just ill health but also public panic and fears about the supply

exhorting you all to escape the confines of your offices and

of everyday necessities – food, water, toilet paper and all the

get out to meet your customers and colleagues at the many

other niceties of modern life. How will those goods get to the

spring conferences and exhibitions that were coming up.

stores if delivery drivers are ill or self-isolating? How will

Barely was the ink dry on the March issue when the

those stores be staffed?

Covid-19 coronavirus outbreak in China went global and,

Furthermore, the global economy was already delicate –

as I write this, we are getting daily reports of events being

in this issue we report on the financial results of a number of

postponed or cancelled.

the major chemical distributors, which all talk about a global

Event organisers are obviously not keen to take such a

macroeconomic slowdown in 2019, particularly in the mature

drastic step: there is a lot of money tied up in a big show. But

markets in North America and Europe. It seems inevitable

at the same time companies are not keen to expose their staff

that a medical crisis on this scale – all around the world at

to risks and we are hearing that many are already restricting

the same time – will have a major adverse impact on demand

business travel, reducing exhibitor and visitor numbers.

for all manner of goods and services, and the logistics chains

That is bad news financially for hotels, conference venues

that supply them. Already the oil tanker markets are in

and event organisers, but also for airlines, airport operators

turmoil as a result of a slump in demand for road fuels in

and the staff who work for them. There has already been one

China as people stay at home more, while empty containers

airline go into administration in the UK and analysts predict

(and tank containers) are stacking up at Chinese ports for

that, if the epidemic persists, others could follow.

lack of cargo.

But, just as Covid-19 is a threat primarily to those with

Even now, talk is beginning to turn to what sort of

underlying medical conditions, then it also seems to be a

long-term impact the Covid-19 epidemic will have on the

threat primarily to those companies with underlying financial

world once it is all over. Will it signal an end to globalisation,

issues. And, as the situation is so fluid, by the time this issue

as consumers and businesses switch to more local supplies?

of HCB reaches you, there may well have been more

Or will it, conversely, make people more aware of the

corporate casualties.

inescapable inter-connectedness of the world? And what

For those in the supply chain, events such as the Covid-19 outbreak bring immense stresses. There are some obvious

will that mean for politics and global economics? We shall see – or at least I hope we shall. We might have

issues in terms of the supply of medicines, personal protective

to avoid all that hand-shaking at conferences, though. Now

equipment and testing equipment, as well as in the disposal

wash your hands…

of infectious waste. But this epidemic is bringing with it not

Peter Mackay

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02 UP FRONT

HERBERT J KENNARD 5 NOVEMBER 1919 – 19 MARCH 2020

It is with great sadness that HCB reports the death of long-time contributor Herbert Julio Kennard – or ‘HJK’ as he was known in these pages – at the age of 100. Herbert died at home, as he had wished, after several years of declining health. Herbert was born to parents of German extraction and lived his entire life in the apartment in St John’s Wood, London they were renting at the time of his birth. He took advantage of a change in legislation in the 1970s to acquire the lease on the property, one of many canny financial decisions he made. He knew tragedy early on, losing his mother while he was still a child. A sister died before he was born. After that, he was brought up by his father and governess, Helen, to whom he remained devoted right up until her own death in 1981. Herbert’s father gave him the choice of going to university or spending some time in Switzerland learning languages; he already knew the country well and decided that would serve him better in the long run, which turned out to be the case. World War II then intervened and he spent much of it at the RAF training school in Hendon, north London. In later life he had plenty of stories to tell about his time there.

Being required to retire from the civil service at the age of 60, Herbert began contributing regulatory articles to HCB, essentially continuing to report on the Geneva meetings, and also worked for Croner. He continued to contribute to HCB until his mid-90s.

After the end of the war he spent a few years with relatives in Brazil, returning to London to join the civil service around 1950. He eventually became involved in the dangerous goods section of the Ministry of Transport, where his language skills were of great use in the development of the first edition of ADR in 1968. Even after retirement he proved useful as a source of regulatory memory and he continued to contribute to DfT briefing meetings.

a full diary and address book. It was only after an accident in 2005 curtailed his ability to get out and about as easily that he slowed down, although he remained as active as he could for another ten years. HCB understands that a memorial service will be held for HJK once life returns to normal after Covid-19. HCB will also miss HJK a great deal – we will not see his like again.

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Herbert was a man of varied passions. He was an avid opera and ballet fan – indeed, his last outing, less than three weeks before he died, was to the Royal Opera House where he had a seat in the Royal Box for the performance of Fidelio. He was a keen collector of satinwood furniture and tea caddies and was said to have the finest collection in private hands, some of which will be bequeathed to the nation. Herbert was a traveller by nature and, even in his later years, would take on intrepid journeys around Europe – especially if an opera or ballet could be included in the itinerary. Up until his 60s he could also be found on his BMW motorbike, something that played a large part in his younger life. He was a lifelong member of both the BMW Club and the Royal Automobile Club. Herbert also paid a great deal of attention to his friends, keeping

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CONTENTS VOLUME 41

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NUMBER 04

UP FRONT Letter from the editor Obituary: Herbert Kennard 30 Years Ago Learning by Training View from the Porch Swing CHEMICAL DISTRIBUTION Fighting for life NACD promotes the sector Defence of the realm Univar strategy pays off Held to account Brenntag toughs it out Into the fold Acquisitions boost IMCD Standards setter Azelis signs up to TfS News bulletin – chemical distribution INDUSTRIAL PACKAGING Cubic capability Greif builds in protection

News bulletin – industrial packaging 01 02 04 05 06

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STORAGE TERMINALS Cross the streams Confusion in the midstream patch Coming soon Standic prepares Antwerp terminal News bulletin – storage terminals TANKS & LOGISTICS Shock of the new Digitisation comes to US petrochemicals Straight outta Texas Odyssey finds eager customers See clearer now Elemica responds with updates News bulletin – tanks and logistics

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SAFETY Incident Log Catch a cold FRA looks at cryogenics by rail Command a bond Bonding during barge de-gassing

REGULATIONS Loose change UN experts ready next Orange Book Reports required CSB will want incident reports It’s about time HNS Convention gets a nudge

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BACK PAGE Not otherwise specified

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

COURSES & CONFERENCES Training courses Conference diary Training toolbox Labelmaster suggests the e-version

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

NEXT MONTH Tank container fleet report Standards in supply chain visibility Storage terminal expansion projects More from the UN experts

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

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

ISSN 2059-5735 www.hcblive.com

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

Cargo Media Ltd Marlborough House 298 Regents Park Road London N3 2SZ HCB Monthly is published by Cargo Media Ltd. While the information and articles in HCB are published in good faith and every effort is made to check accuracy, readers should verify facts and statements directly with official sources before acting upon them, as the publisher can accept no responsibility in this respect.

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30 YEARS AGO A LOOK BACK AT APRIL 1990

Our issue thirty years ago was strangely prescient, concentrating very much – as does today’s number – on developments in North America. It was illustrated on the front cover with a picture of an ISO tank fresh off the boat, being picked up by a Chemical Leaman rig. We asked in that issue how long it would be until the US really took to the new concept, quoting Marc Kostolich, then of Union Pacific Railroad’s BulkTanker Service (and now president/CEO of Food by Rail Logistics), who predicted that “American markets for tank containers will take about seven to ten years to mature.” The emerging market was having to struggle against the entrenched interests of the domestic tank truck industry and the ban on intermodal double-stack trains. Our discussion had been informed by the Tank Container USA conference that had taken place in March in New Orleans, where one of the important topics was discussion of the upcoming HM-181 rulemaking from the US Department of Transportation. Among other things, this was due to phase out the IM 101 and IM 102 domestic tank designations in favour of the IMO 1 and IMO 2 specifications. In fact, things were not going to be that simple. As Lt Cdr Phil Olenik of the US Coast Guard explained, the proposals in HM-181 had

To provide some assistance for those exporters in 1990, Ron Bohn, hazmat administrator at the National Cargo Bureau’s New York office, offered an article discussing what would these days be termed ‘FAQs’. In particular, he said he was often asked if there was one particular violation that stood out – and that the answer was violations of the dangerous cargo manifest (DCM) requirements. Ron gave a thorough explanation of the US DCM requirements, as well as the different stowage and segregation requirements for hazardous materials under US regulations and the IMDG Code, although in the latter case the situation had become clearer following a tardy update of 49 CFR. Staying with the maritime theme, HCB also reported on the impending entry-into-force of Amendment 25-89 to the IMDG Code; following an extensive list of changes, a new consolidated version of the Code – then presented in four ring-bound volumes plus a supplement, allowing users to update their existing copy with revised pages rather than replacing the whole thing – had been issued. This 1990 edition was expected to last for ten years, including updates. The IMO Maritime Safety Committee had agreed that each completely

been rattling around for so long that they themselves now needed to be updated to take account of the two new editions of the UN Model Regulations that had appeared since the proposals were first put forward. At the moment we are approaching a similar situation with the HM-215O harmonisation rulemaking, which is already more than a year overdue and is causing problems, in particular for shippers exporting to the US.

revised edition should last that long and was also urging that substantial amendments should normally be adopted at intervals of four years, with only urgent updates issued according to the UN’s biennial cycle. This has long been a desire of regulators across the modes, who blame industry and its incessant process of development for generating the need for more frequent amendments.

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LEARNING BY TRAINING By Arend van Campen

A VUCA AND CORONA WORLD

I have just returned from Rotterdam where, despite the Coronavirus crisis, the 2020 StocExpo event was held. No, it was not cancelled, although perhaps it should have been. I was invited to chair the conference and did so, but found myself talking to many empty seats. Just before, several oil, gas and storage companies had decreed that their personnel were forbidden to travel or attend meetings or conferences. This of course had its impact not only on the conference, but very much on the stand holders who had invested thousands as usual to welcome friends and customers. In short, StocExpo, a usually happy and happening event, was damaged by fear and ‘VUCA’ - volatility, uncertainty, complexity and ambiguity. This abbreviation was first used in 1987 but in my view is overlooked or ignored by our political and industrial leaders who believe they can control nature by meddling with her. Decades of hubris made people believe they can exist outside of nature and were given a free hand to create products by synthesising chemicals into new products, the effects of which would harm nature, the environment and mankind itself. Perhaps you believe the story of bats and other animals that

I believe that a new approach to potential crises is needed, by which I mean preventive policies. At this time we see reactive policies, but these are too little and too late. I received a call from someone who had seen my interview on the Law of Requisite Variety, also known as Ashby’s Law. This law says that only variety can absorb variety. If I apply this logic it means that in order to be able to absorb this virus crisis, we would have needed to build enough variety, meaning the capabilities, capacity, tools, knowledge and skills to deal with it. Obviously, our leaders do not think in such a way, because they think they can interfere with nature and get away with it. No more. We now face a global pandemic which, because of wrong decision making, will spin more out of control. People can’t control nature, politicians never build requisite variety and allow biolabs, chemical industry or other organisations develop stuff that harms social cohesion, the environment and life. This reactive way of governance can and should be changed. The science and knowledge of how to do this is available. We just have to stop, think, observe and plan. Best is not to be afraid and to see this Coronavirus as a friend who will be assisting us to redesign society in a sustainable and viable system which supports life. I could be of

somehow mingled and generated the virus. You must ask the question: why is the populace of the world not informed about what is going on in defence research laboratories where scientists are creating bio weapons? Again, transparency is key here; the sharing of all information. We can observe the kneejerk reactions of politicians who are closing down trade, transport and manufacturing all over the world.

help doing that. This is the latest in a series of articles by Arend van Campen, founder of TankTerminalTraining. More information on the company’s activities can be found at www.tankterminaltraining.com. Those interested in responding personally can contact him directly at arendvc@tankterminaltraining.com.

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FROM THE PORCH SWING I CONFESS I hate to admit it, but it’s true. The ‘From the Porch Swing’ column isn’t always written from my porch swing. I moved a couple of years ago, and the swing that was happily under a covered and screened porch is now mostly out in the elements and the bugs, subject to leaves and rain and mosquitos and wasps and wind. So sometimes - heck, often - this column is written from an airplane seat. Not just any airplane seat, but the one, best,

screen, the keyboard is too close to my belly (like jammed into it) for me to type on it. And conversely, when the keyboard is at typing distance, the lid with the screen on it is up against the back of the seat in front of me and won’t open enough for me to see it. And, no, I can’t afford first class airfare, even if Southwest did offer it. But, but, but, and again but (Ian Fleming’s Chitty Chitty Bang Bang), in just one exit row,

golden seat on Southwest Airlines. Well, at least the one, best, golden seat if you want to work while you are flying. The rows on most airplanes are too close together for a man 188 cm (6’ 2”) tall with proportionate arm length to type into a laptop. When the lid is open far enough for me to look down onto the

on just one side of all of Southwest’s planes, there are only two seats instead of three. The window seat next to the emergency exit is missing, but there is still a tray table behind the seat in front of that space. So, so, so, and again so (I made that one up), if I sit in what is normally the middle seat in that row, I can

HCB MONTHLY | APRIL 2020

use the missing seat’s tray table by pivoting about 45 degrees. At that diagonal angle (not Diagon Alley), I can both type and see my laptop screen at the same time! Woo-hoo! This makes my spot in the boarding line crucial. Southwest doesn’t assign seats, they’re ‘first come, first served’ upon entering the airplane. But they do assign spots in the queue (that’s “line” to you Americans reading this) for boarding. I can tell you that I have watched the person directly in front of me in line (“queue” for you Europeans reading this) take my one, best, golden seat. Being in the right order in the boarding line/queue can make my day (Clint Eastwood as Dirty Harry), while being in the wrong order can break it. Sequence is thus very important to me.

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Sequence in DG can be important, too. And you are probably thinking (if, that is, I haven’t put you to sleep yet) that shipping documents are the best example of that. And you’d be right. But documentation isn’t the only area in which sequence can be important to a Dangerous Goods (DG) professional. Just look at the layout of the DG regulations. Except for 49CFR, they put classification and identification before packaging, marking and labelling before documentation, and shipper functions before carrier functions. This makes great sense because this is normally the way the real world works. Yay, regulators! Thank you. But before we get too effusive in congratulating those that create DG regulations, we have a few situations where sequence considerations have gone out the window. In my courses, I usually call these ‘Packaging Dependent Classifications’. Let’s discuss a few of these non-sequential, but not non-consequential situations. Explosives: A bottle, jar, can, or block of pure explosive chemical gets a different classification than when put into a firework, weapon, or safety device. Yes, we can recognise the explosive hazard, but we cannot assign a class, division, nor Proper Shipping Name (PSN) without knowing how the explosive material is contained. Chemical and First Aid Kits: The ‘other stuff’ we put into a package with the DG can change the classification. Articles in general: From batteries to fuel cells to lamps and switches to vehicles to capacitors to safety devices to machinery and more, the classification of articles differs greatly from the classification of the enclosed DG when packaged without the article. (BTW, is a lead-acid battery in a vehicle actually a DG within an article within another article?) Combustible liquids: In smaller packagings these can be non-dangerous, but in larger packagings HazMat. And don’t think this is just a USA issue, because it definitely has an impact on a large number of international shipments.

Gases: Today’s first intentionally trick question is “what is the PSN of pure 1,1,1,2-Tetrafluoroethane?”. Sure, I dare you, look it up in your DG List (it’s there), and answer me with “1,1,1,2-Tetrafluoroethane”. If we’ve packaged that gas into an aerosol container, such as those used to blow crumbs off your keyboard or as Poop Freeze (Google it), the PSN will be different, and will begin with “Aerosols, …”. Yes, a cylinder of the pure stuff has a different PSN than an aerosol container of the pure stuff. (Get with the program, PHMSA, and either harmonize your aerosol definition, or stop prohibiting us from using the global definition.)

“SEQUENCE IS IMPORTANT IN DG BUT SOMETIMES WE SEEM TO VIOLATE OUR OWN RULES ABOUT THE PROCESS OF ACHIEVING COMPLIANCE“

And there I was, thinking that packaging was a function that followed sequentially after classification/identification. What am I supposed to do? Pick a packaging, complete the classification, and then use the usual process of looking up the PI to verify the compliance of my packaging choice? What if it isn’t in full compliance, do I go back to packing or back to classification/ identification or both, and if both, in which order? Sigh… So, while sequence is usually important in DG, sometimes we seem to violate our own general rules about the process of achieving compliance. And unless you are trying to fill out Section 14 of an SDS, it probably isn’t a big deal. After all, don’t all DG professionals know that for every general rule there is/are an exception or twelve? And don’t get me started on exceptions to the exceptions. Again, sigh… And oh, by the way, I don’t actually smoke a pipe, either.

This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampa-based WE Train Consulting and chair of the Dangerous Goods Trainers Association; telephone: (+1 813) 855 3855; email gene@ wetrainconsulting.com.

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FIGHTING FOR LIFE ASSOCIATION • CFATS REAUTHORISATION HAS BEEN TOP OF THE AGENDA AT NACD BUT THE ARRIVAL OF THE CORONAVIRUS IN NORTH AMERICA HAS PUT ANOTHER ISSUE IN ITS MINDS FOR THE NATIONAL Association of Chemical Distributors (NACD), 2020 was turning into a year when it was throwing its weight behind the need – as it saw it – to pass the reauthorisation bill to allow the Chemical Facility Anti-Terrorism Standards (CFATS) programme to continue beyond its anticipated expiry on 18 April. Indeed, NACD was highly critical of the inability of Congress to achieve a consensus on reauthorisation, prompted not least by the current US Administration’s antipathy to what it sees as regulation that imposes a burden on industry. However, the chemical distribution industry sees CFATS very differently.

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Speaking in late February, NACD president/ CEO Eric R Byer had this to say: “NACD is disappointed in Congress’s failure so far to reauthorise the CFATS program administered by the US Department of Homeland Security (DHS), which is vital to ensuring the chemical industry and regulators work together to keep our nation’s chemical facilities secured against potential acts of terrorism. “Congress overwhelmingly approved the program’s continuation and funding in January 2019 for an additional 15 months to provide lawmakers further time to work on a long-term reauthorisation,” Byer continued. “Unfortunately, certain lawmakers are acting as a roadblock to that reauthorisation. To be clear, now is not the time for policymakers to play games with our nation’s chemical security.”

NACD PRESIDENT ERIC R BYER: “NOW IS NOT THE TIME TO PLAY GAMES WITH OUR NATION’S CHEMICAL SECURITY”

INCHING FORWARD In the event, just two weeks later the US House of Representatives passed HR 6160, which aims to extend the current CFATS programme by 18 months, with the aim of providing time for lawmakers to formulate a longer-term reauthorisation approach. The bill was brought to the House by a bipartisan group of Representatives. In the wake of that move, Byer said: “We now urge Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer to bring HR 6160 to the Senate floor for swift passage and send it to President Trump for his signature to make sure that our nation’s chemical industry infrastructure remains secure.” A major problem in terms of CFATS reauthorisation is the White House budget proposals, issued in early February, which

HCB MONTHLY | APRIL 2020

seek to eliminate funding for the CFATS programme. Byer said at the time: “while NACD fully supports the administration’s deregulatory agenda for duplicative and burdensome red tape, it is concerning the president’s budget request also proposes the elimination of important bipartisan and industry-supported regulations like CFATS and the independent agency the US Chemical Safety and Hazard Investigation Board (CSB). The president’s proposal would remove this important federal agency from the incident investigations process and cut valuable resources that CSB develops for the chemical industry to improve their operational safety. “Lastly,” Byer added, “it is time for Congress to finally coalesce around a long-term infrastructure program. The president’s budget helps move that process forward, but a more serious effort on the part of Congress is needed to rebuild our nation’s crumbling roads and bridges and put the United States on a solid foundation to ensure a vibrant economy for years to come. In the coming months, we look forward to working with Congress to make sure that all of these important measures are funded to ensure the safety, security, and economic strength of the chemical distribution industry remain top priorities for the federal government.” HERE COMES THE VIRUS All of the above took place just before the Covid-19 coronavirus epidemic really struck home in North America. By 18 March, Eric R Byer felt the need to send a letter to President Trump and to all 50 US governors, urging them to keep chemical distribution operations open because of the industry’s crucial role in ensuring the well-being of both citizens and businesses across the country. “Chemical distributors play a vital role in the US economy, delivering products to more than 750,000 customers across the country,” Byer said. “Many of these customers are in industries critical to public health, such as food, personal care, pharmaceuticals, soaps and detergents, water treatment, and more. As cities and states across the nation

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respond to the Covid-19 crisis, it is imperative that chemical distributors are allowed to continue their important work to support their communities by delivering valuable products that keep the US economy functioning and can help mitigate the worst impacts of this coronavirus. “Without the chemical products and transportation services supplied by the distribution sector, supply chains will be severely strained and many manufacturers will be unable to run at full capacity in producing the goods so many people need to survive the Covid-19 crisis,” Byer continued. “Additionally, critical municipal infrastructure like water treatment plants, which many distributors supply necessary products to for their operations, could be negatively impacted if chemical distributors are forced to reduce their operations at exactly the moment the healthcare system braces for an increased number of cases. “NACD and our member companies stand ready to work with our partners in industry and government to support communities

 NACD REPRESENTS AN INDUSTRY THAT EMPLOYS MORE THAN 80,000 PEOPLE IN THE US, ENSURING CONSISTENT SUPPLIES OF CRITICAL PRODUCTS AT A TIME OF URGENT NEED

“IT IS IMPERATIVE THAT CHEMICAL DISTRIBUTORS ARE ALLOWED TO CONTINUE TO SUPPORT THEIR COMMUNITIES BY DELIVERING PRODUCTS THAT KEEP THE US ECONOMY FUNCTIONING”

across the nation in their efforts to combat the growing threat of Covid-19. Therefore, we urge President Trump and every governor across the country to include the chemical distribution industry in their crisis response plans, ensuring that goods vital to facilitating that response are able to make it to the people who need them the most and help stem the tide of this rapidly spreading illness.” RESOURCES FOR MEMBERS NACD has now added a page to its website to provide members with access to resources to help them prepare for and navigate the Covid-19 pandemic, including links to information provided by the Centers for Disease Control and Prevention (CDC) and the US Cybersecurity and Infrastructure Security Agency (CISA), as well as other federal agencies and non-governmental organisations. NACD is keen to hear from its members and affiliates with information about the impact of Covid-19 on their personnel or their operations, so that it can help industry as a whole deal with the unprecedented threat. NACD has nearly 450 members and affiliates, representing more than 85 per cent of the chemical distribution industry in the US and 90 per cent of the industry’s gross revenue. That industry employs more than 80,000 people and generates nearly $7.5bn in tax revenue. www.nacd.com

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DEFENCE OF THE REALM

Univar Solutions has reported 2019 net sales of $9.29bn, up from $8.63bn in 2018, although operating income fell from $387.4m to $187.3m. The company posted a net loss from continuing operations of $105.6m, as against a net income in 2018 of $172.3m. Comparison of the 2018 and 2019 financial results is complicated due to the acquisition by Univar of Nexeo Solutions, which was completed on 1 March 2019, and the subsequent sale of Nexeo’s plastics distribution business. Nonetheless, Univar is clear that the change has been good for shareholders, with president/CEO David Jukes saying: “I am very

cash flow generation, despite weakness in some of our end markets and lower chemical prices.” Jukes adds. “Our Nexeo integration team successfully achieved important ERP migration milestones and realigned sales territories to increase our market coverage and increase our salesforce effectiveness. We also completed non-core divestitures, delivering on our commitments to focus on our chemical and ingredient businesses and reduce leverage to our lowest level as a public company. We are continuing to position Univar Solutions to deliver long-term profitable growth and shareholder value.”

deflation in the US, Canada and EMEA, lower demand for chemicals and ingredients from global industrial end markets, and overall weakness in the energy markets. “Similar to the third quarter of 2019, the macroeconomic environment in the US segment weakened sequentially during the quarter,” Univar notes. Fourth quarter gross profit surged by 18.4 per cent to $522.2m, again boosted by the Nexeo acquisition, as well as “improving sales force execution and favourable product and end market mix”. For the year as a whole, US external sales grew by 16.6 per cent as a result of the Nexeo acquisition, partially offset by chemical price deflation and lower demand for chemicals. Adjusted EBITDA was up by 15.6 per cent at $102.4m, with improved margins as a result of stronger margin management and a more favourable product and end market mix. The Latin America division also performed well, with external sales up 39 per cent at $126.0m (excluding currency effects), again

pleased at how we have executed successfully against our strategic priorities of integration and synergy capture from the Nexeo acquisition, portfolio management and strengthening our balance sheet. “During the [fourth] quarter and the full year 2019, we earned solid margins and had strong

AROUND THE WORLD Fourth quarter net sales were up 9.8 per cent year-on-year at $2.2bn, driven by the contribution from the Nexeo acquisition and strong operating performance. Sales growth was partially offset by chemical price

showing the impact of the Nexeo acquisition together with growth in sales in Mexico’s energy sector and VAT adjustments in Brazil. There was a strong improvement in gross profits and adjusted EBITDA was up by 63 per cent on a constant currency basis.

RESULTS • THE REASONING BEHIND UNIVAR’S ACQUISITION OF NEXEO SOLUTIONS BECOMES CLEARER IN LIGHT OF THE GROUP’S 2019 FINANCIAL REPORT

HCB MONTHLY | APRIL 2020

CHEMICAL DISTRIBUTION

Developments in 2019 were not so impressive in other territories; in Canada, for instance, external sales fell by 3.1 per cent, primarily due to the slowdown in the Canadian energy markets and chemical price deflation. Profitability improved, though, with adjusted EBITDA up by 4.7 per cent and margins also up. Solid performance in the industrial chemical business and certain commodity products, along with the Nexeo acquisition, were partially offset by lower volumes in the energy sector, Univar reports. The Europe, Middle East and Africa (EMEA) division fared less well, with external sales down by 7.5 per cent as a result of chemical price deflation, although margins did improve and adjusted EBITDA grew by 1 per cent to $33.1m on a reported currency basis. Improved performance in bulk and local distribution was partially offset by continued market pressure in the pharmaceutical finished goods line.

CLOUDY AHEAD Looking ahead to 2020, Univar Solutions expects continued weak end markets and a challenging competitive environment in the first half of the year, with the first quarter likely to be the weakest quarter of the year. It predicts flat industrial production growth, weighted towards the latter part of the year, with energy headwinds in the US, pricing pressures in bulk commodities, and the unknown impact of the Coronavirus outbreak. Internally it is aiming for some improvements, such as enhanced sales force efficiency driven by the realignment of territory responsibilities, new supplier authorisations, and forecast net cost synergies from the Nexeo acquisition of some $40m. Putting all this together, Univar is predicting adjusted EBITDA for the full year 2020 of between $700m and $740m, compared to $704.2m in 2019. www.univarsolutions.com

 UNIVAR CEO DAVID JUKES: PLEASED WITH THE EXECUTION OF STRATEGIC PRIORITIES

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HELD TO ACCOUNT FINANCIALS • DISTRIBUTORS HAVE TO BE STRONG TO STAND UP TO THE MACROECONOMIC HEADWINDS AND, FOR BRENNTAG, THAT MEANS TOUGHING IT OUT IN THE MATURE MARKETS

“FOR BRENNTAG, FINANCIAL year 2019 was marked by a difficult macroeconomic environment, with economic downturns, a lack of impetus and weak demand. This was the case primarily in our two large regions, EMEA and North America,” says Georg Müller, CFO of Brenntag, in his remarks on the group’s financial results for full year 2019. “However, we once again demonstrated the stability of our business model and report operating EBITDA almost on a par with the prior-year figure on a like-for-like basis. The very positive free cash flow performance is encouraging. It shows

 GEORG MÜLLER, BRENNTAG CFO, IS OPERATING UNDER CONSIDERABLE MACROECONOMIC UNERTAINTY

that we are able to deliver a strong liquidity performance in challenging times.” Sales were flat against 2018, coming in at €12.82bn, and, while operating EBITDA rose by 11.3 per cent to €1.00bn, that was all due to the initial application of the IFRS 16 lease accounting standard, absent which EBITDA would have been slightly down on the prior year. Business in the EMEA (Europe, Middle East & Africa) region was marked by weak demand and a lack of economic impetus throughout 2019. In this difficult environment, Brenntag EMEA generated operating gross profit on a par with the prior-year figure at €1.14bn. Operating EBITDA rose by 5.6 per cent to reach €406.3m, largely as a result of the application of IFRS 16.

Following a good start to the year, Brenntag North America faced falling momentum and an increasingly difficult market environment as 2019 went on. The North American companies generated operating gross profit of €1.22bn, an increase of 3.4 per cent, and operating EBITDA climbed by 10.1 per cent to €474.8m, again due mainly to IFRS 16. Overall in the Latin America region in 2019, Brenntag posted an improvement in earnings driven by organic growth and demonstrated its resilience in a continued volatile and difficult market environment. Operating gross profit rose by 6.5 per cent to €177.0m and operating EBITDA was up 38.0 per cent at €55.9m, only partly attributable to IFRS 16. The Brenntag companies in the Asia-Pacific region achieved further growth in the reporting period, due primarily to positive contributions from recent acquisitions. Operating gross profit rose 14.7 per cent to €266.8m and operating EBITDA was up 24.7 per cent at €101.1m, of which less than half reflects IFRS 16. LOOKING AHEAD Dr Christian Kohlpainter, who assumed the role of CEO in January, says: “Brenntag is a strong brand with a good reputation in its markets. Our company offers great potential for organic profitable growth. My Board of Management colleagues and I will therefore make every effort to unlock more of this potential. Going forward, we will not only maintain our highly marketcentric approach, but also focus to a greater extent on optimising our processes, procedures and structures, thereby creating the conditions crucial to long-term organic growth.” Brenntag is currently examining its internal structures, processes and organisation along the value chain. Brenntag says it sees potential for improvement in harmonisation and standardisation as well as in the stringent internal execution of initiatives and measures. Brenntag currently expects a positive performance at operating EBITDA level during 2020, assuming stability in exchange rates. However, it acknowledges it is operating in an environment of considerable macroeconomic uncertainty and its projection assumes that the effects of these risks and, in particular, the new Coronavirus crisis remain limited. www.brenntag.com

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CHEMICAL DISTRIBUTION

INTO THE FOLD RESULTS • IN A TURBULENT TRADING ENVIRONMENT, GROWTH THROUGH ACQUISITION CAN PAY OFF, AS IMCD’S RESULTS FOR 2019 AMPLY ILLUSTRATE IMCD GROUP HAS reported 2019 revenues of €2.69bn, up 13 per cent on the 2018 figure, as a result largely of the first-time inclusion of acquisitions in the group’s figures. Revenues from continuing operations actually fell by 1 per cent. Macroeconomic circumstances were, though, offset by the addition of new supplier relationships and the expansion of existing relationship, and increasing customer penetration. Similarly, operating EBITDA increased by 11 per cent to €224.8m, a combination of organic growth, the impact of recent acquisitions and the initial impact of the new IFRS 16 lease accounting standard.

 PIET VAN DER SLIKKE: IMCD’S MODEL SHOWED ITSELF RESILIENT TO CHALLENGING MARKETS

Commenting on the results, IMCD’s CEO Piet van der Slikke says: “Despite more challenging market conditions, the results of 2019 demonstrate consistent strong performance with exceptional cash generation. IMCD’s diversified business model showed itself resilient and we took important steps in the diligent execution of our long-term growth strategy. “Through selective acquisitions we strengthened our global positions in pharmaceuticals, food and advanced materials, and we are excited about the recent addition of the attractive South Korean and Colombian markets to our geographical coverage,” van der Slikke continues. “Entering the year of IMCD’s 25th anniversary in its present form, we feel proud of the success achieved and remain well positioned to deliver further growth to our business partners and stakeholders.’’

BETTER IN AMERICA Of IMCD’s three regional operating divisions, the Americas was the star performer over the year, with revenues up 22 per cent at €983.0m and operating EBITDA up 30 per cent at €77.8m. While there was some impact from positive currency movements, the main element behind this growth was the acquisition of ET Horn in 2018, which was fully integrated into the IMCD US operation in late 2019, and of Unired Químicas and DCS in 2019. While the impact of the Unired deal on the 2019 figures was limited – the deal closed in late November and its revenues for 2018 were only €7m – its position in the distribution of speciality chemicals and ingredients to the pharmaceutical, food and personal care markets, together with its location in Colombia make it an important step forward for IMCCD. Results from the Asia-Pacific division were also strong, with revenue up 17 per cent at €392.0m and operating EBITDA 14 per cent up at €35.7m, as activities in Australia and New Zealand, which together account for around half of the region’s income, continued to deliver solid results and healthy cash flows. Furthermore, operations in India and Indonesia delivered double-digit growth, largely as a result of new supplier relationships, additional products and expansion into new market segments. Operations in China are still growing, although at a slower pace than before. Investments in start-up activities in Japan, Thailand and Vietnam also produced considerable revenue growth. The Europe, Middle East and Africa (EMEA) region fared less well, with revenue up 6 per cent at €1.31bn but operating EBITDA fell by 1 per cent to €126.3m. Organic revenue dropped by 4 per cent and top-line growth was delivered by acquisitions made during 2018 and 2019, particularly that of Velox, which has now been fully integrated. IMCD notes that its existing industrial business in EMEA was “affected by the challenging macroeconomic market circumstances”, a factor that is expected to continue to present difficulties during the coming year. www.imcdgroup.com

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Azelis has defined 26 key performance indicators (KPIs) for its CSR strategy. Each TfS member company shares its KPIs within the initiative, which are aggregated to form the basis through which TfS aims to increase sustainability performance across the chemical supply chain.

AZELIS HAS JOINED Together for Sustainability (TfS), a global initiative to promote sustainability in chemical supply chains. The move follows on from the Gold rating awarded to Azelis by EcoVadis, which is a prerequisite for TfS membership. The move, Azelis says, testifies to its “resolute course of action to be catalyst of change when it comes to sustainable business models and become benchmark for the industry”. TfS, a global network of 25 chemical companies, represents the de facto standard for environmental, social and governance performance in chemical supply chains. Its programme is based on the UN Global

Care and sets a benchmark for sustainable business practice. Commenting on the move, Dr Hans Joachim Müller, Azelis CEO, says: “Our dedication to corporate social responsibility (CSR) and sustainable business models has been at the core of our business decisions for a while now. That dedication has been recognised twice by EcoVadis’ Gold rating so joining TfS was the next logical step for us. The TfS concept benefits both TfS member companies and suppliers, taking away bureaucratic burden from us so that time and energy can be spent on the improvement of sustainability performance.

AN IMPORTANT STEP Bertrand Conquéret, TfS president, says: “My colleagues and I warmly welcome Azelis to the Together for Sustainability Initiative. The arrival of Azelis marks an important step for TfS as it will enable the Initiative to further deliver on its mission and core strategy to drive and improve the sustainability impact of global chemical supply chains. By joining TfS, Azelis will fully benefit from the TfS innovative framework, collaborative mindset and robust tools to assess and improve the sustainability performance of its supplying companies, while increasing its own responsible sourcing program. As TfS operates as a unique member-driven organisation, Azelis together with the other 24 TfS member companies will contribute to shaping the future of the chemical industry.” Maria Almenar, CSR programme leader and group SHEQ director at Azelis, explains further: “We have put a lot of effort, expertise and passion in our CSR programme for the past four years, but now is the time to take it all one step further. In line with UN’s 17 Sustainable Development Goals, Azelis is ready to build strong partnerships and join global chemical industry initiatives that contribute to sustainability. “We see many benefits in joining TfS: EcoVadis assessment and methodology, third-party evaluation, possibility of developing action plans with suppliers, onsite audits, access to results through sharing principle

Compact and the principles of Responsible

As a global business, with operations across EMEA, the Americas and Asia Pacific, Azelis takes its responsibilities very seriously, always looking for new ways to make a positive impact on society and minimise its footprint, whilst delivering the best possible products and services.”

of TfS, active participation in TfS activities and best practice sharing, improved management of risks, to name only some,” Almenar adds. “In one word, this was the right and logical next step and we are very excited about what lies ahead.” www.azelis.com

STANDARD SETTER SUSTAINABILITY • BENCHMARKING AGAINST INDUSTRY AS A WHOLE IS THE ONLY WAY TO TELL HOW EFFECTIVE A COMPANY’S CSR PROGRAMME IS. AZELIS HAS TAKEN THE LOGICAL STEP

 MARIA ALMENAR, CSR PROGRAMME LEADER AT AZELIS (ABOVE): “NOW IS THE TIME TO TAKE IT ALL ONE STEP FURTHER”

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CHEMICAL DISTRIBUTION

UNIVAR TAKES UP HFS BUSINESS

Univar Solutions has boosted its water treatment division through the acquisition of certain assets of The Mosaic Company’s hydrofluorosilicic acid (HFS) business (opposite). The deal includes a number of customer contracts and rail and supply chain agreements. “We’re excited to build onto our already robust HFS business and market-leading water treatment capabilities. With the addition of these new capabilities, we are well positioned to help customers and suppliers solve their complex water treatment issues,” says Brian Jurcak, vice-president of product management in the US for Univar Solutions. Univar has meanwhile reorganised its pharmaceutical ingredients distribution business as a dedicated industry vertical in Europe, the Middle East and Africa, matching its structure in North America and Latin America. “Historically, there has been a greater emphasis on the regional market,” says Matthew Ottaway, vice-president of focused industries EMEA. “However, this organisational alignment will help improve performance and increase focus on the needs of pharmaceutical ingredient customers and suppliers, as well as reinforce our commitment to being a responsible solutions provider.” www.univarsolutions.com AZELIS PICKS UP PU

Momentive has appointed Azelis Americas to distribute its polyurethane additives in the US. The deal expands an existing relationship, as Azelis Americas CASE already distributes silanes for Momentive, and is seen as a strategic fit for Azelis Americas CASE offerings for urethane customers. “Adding the Momentive polyurethane additives product line to our CASE portfolio is an ideal fit,” says Frank Bergonzi, CEO/ president of Azelis Americas. “Momentive’s products offer our customers the best-in-class quality and performance. Our sales, technical and customer support teams are eager to

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expand the use of these technologies with our customer base.” “Azelis Americas is a premier CASE distributor in the US,” adds Thuan Nguyen, Momentive’s global segment leader for PU rigids, molded and specialties. “We look forward to growing the Momentive polyurethanes additives business across the US by leveraging their technical sales force, market intelligence and application labs.” www.azelis.com DEBRO BAGS BIG SOLVAY DEAL

Debro has become the exclusive partner of Solvay Novecare for the distribution of its Coatings and Home and Personal Care (HPC) products in Canada, taking over the contract from Univar Solutions as from 1 February. “We are confident that over the long term the best interests of both customers and Solvay Novecare – Coatings and HPC markets are better served by Debro. Solvay Novecare has had a long relationship with Univar Solutions/ Nexeo – Canada and it was only after long and thoughtful discussions that the decision to make the change was made,” Solvay says. Debro has also struck a new partnership with PPG Silica Products and is promoting the PPG range of precipitated silica in the coatings, sealants, and adhesives markets throughout Canada as from 1 April. The move follows on from Debro’s recent acquisition of Tartan Color. www.debro.com MORE WORK FOR KRAHN

ExxonMobil Chemical has appointed Krahn Chemie as its authorised distributor in Spain for its Jayflex™ range of plasticisers, extending the existing relationship between the two groups. To help support its Spanish customers, Krahn Chemie has set up a local sales team based in the Barcelona office of its sister company Albis Plastic. “We are very pleased with the expansion of our long-standing partnership with ExxonMobil and are looking forward to developing our

activities in the Spanish market for plasticisers,” says Karlheinz Schuster, vice-president, sales and marketing, for Krahn Chemie. Krahn Chemie Benelux is to begin distributing precipitated silica products from PPG for ink, coating, adhesive and sealant applications in Benelux as from April, building on an existing deal between Krahn and PPG in Italy, Poland and France. “The previous cooperation with the Krahn Group convinced us that their sales approach based on close relationships with their customers and deep technical understanding of the products is of high value for us as well as for our customers,” says Gilles Gressier, PPG’s EMEA business director, silica products. “We are sure that the extension of this trusting cooperation into the Benelux region is a well thought-out step.” www.krahn.eu VESTOLIT PVC FROM TER

TER Chemicals has become the exclusive distributor for Vestolit’s speciality PVC products in Germany, Austria, Switzerland, France, the Benelux, the UK and Scandinavia. The products range from PVC pastes to thermoplastic resins. “With Vestolit products, we are expanding our portfolio and can serve our customers even more extensively,” says Jens Vinke, head of TER Chemicals’ CASE business unit. “As a partner, we offer Vestolit access to markets outside of the core business and can therefore act as a holistic distributor.” Vestolit operates PVC production sites with a combined annual capacity of some 400,000 tonnes, with more than 70 years’ in the business at its Marl headquarters in Germany. “Having TER Chemicals as a new partner for the distribution supports us in realising our goals and our vision. With a high level of integrity, deep trust and partnership-based ways of thinking and acting, we look forward to a successful collaboration,” says Kathrin Steussing from Vestolit. www.terchemicals.com NEW MAN FOR CORNELIUS

Cornelius Group has appointed Richard Palmer is territory sales manager in the UK for its Performance Chemicals division.

CHEMICAL DISTRIBUTION 17

Palmer arrives at Cornelius with more than 20 years of experience in sales and leadership positions across a broad range of industries. He will now be responsible for acquiring new leads and business, while maintaining existing customer relationships. “I’m delighted to join Cornelius at such an exciting time in the company’s history,” Palmer says. “Cornelius has fostered great relationships with customers and principal suppliers alike, and I look forward to building on these, alongside welcoming new customers to the business.” www.cornelius.co.uk STOCKMEIER COLOURS IN

The Stockmeier Group has begun distribution of DCL Dominion Colour Corp’s extensive range of organic and inorganic pigments in Germany, Austria and Switzerland, through

its affiliates Bassermann Minerals, Kemtan and HDS-Chemie. “We are delighted that in Stockmeier Group we have found a distribution partner who makes our values and the DCL brand accessible to a wider range of customers,” says Peter Baggen, vice-president of sales of DCL. “In order to continue to successfully expand and develop the market presence, it was urgently necessary to find a partner who would help us.” “We are very delighted about our partnership with DCL Dominion Colour Corporation. The products are complementary to our product portfolio. This enables us to provide our customers with even more comprehensive solutions,” says Dirk Seidel, managing director, specialty chemicals at Stockmeier Chemie. www.stockmeier.com

NORDMANN WINS DUPONT DEAL

Nordmann Nordic has been selected by DuPont Nutrition and Biosciences as its channel partner for personal care in Scandinavia, Iceland and the Baltic states. Nordmann will represent both the GENENCARE®OSMS portfolio and DuPont preservatives for personal care. “Our aim is to give optimal service and provide a reliable supply to our customers, therefore we are continuously optimising our network of channel partners in EMEA,” says Vincent Wortel, DuPont’s sales manager EMEA. “DuPont N&B has built a strong collaboration with Nordmann Nordic and we are thrilled to expand our collaboration.” nordmann.global

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CUBIC CAPABILITY PRODUCTS • NEW TECHNOLOGIES ARE CONSTANTLY EMERGING IN THE INDUSTRIAL PACKAGING SECTOR AND GREIF MAKES EVERY EFFORT TO STAY AT THE FOREFRONT GREIF, ONE OF the world leaders in industrial packaging, has recently been investing heavily in developing some exciting new technologies in its intermediate bulk container (IBC) portfolio, GCUBE. Particularly suited to the chemical industry, IBCs are used to safely transport a variety of solid and liquid products, including hazardous materials and those that require safe handling. Two years ago, Greif launched GCUBE Shield technology, a revolutionary barrier protection for its IBCs. The GCUBE Shield technology provides an intermediate layer in IBCs that reduces the permeation of gases both in and out of the polyethylene container. Users benefit from a longer product shelf life, a reduction in dangerous emissions into the air and increased protection of the product inside against oxygen permeation from outside the container. Furthermore, GCUBE Shield is 100 per cent recyclable. The innermost layer remains 100 per cent high density polyethylene (HDPE), which complies with current legislation for food and chemical compatibility, and the outer layer is customisable. All these attributes make the GCUBE Shield technology not only suitable for the chemical industry, but also for agrochemicals, paint, flavours and fragrances and food and beverage. BETTER AND WIDER Alongside this Greif has been working on smart packaging technologies for its IBCs as part of a broader drive to help reduce waste and conserve resources. Greif’s GCUBE Connect technology gives real-time tracking information about a user’s IBC. A customer-

 GREIF IS CONTINUOUSLY IMPROVING ITS IBCS TO HELP SHIPPERS OF CHEMICALS AND OTHER LIQUIDS

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based dashboard displays in real time where an IBC is sited, the level of the filled product and the ambient temperature. Luca Bettoni, IBC and plastic product manager, EMEA, at Greif, says: “Much of our innovation strategy for GCUBE is driven by the need to develop more sustainable solutions for our customers while at the same time ensuring product integrity and safety. Already this year we have launched an IBC containing transparent post-consumer resin (PCR) in the bottle and, although currently regulations do not permit the use of IBCs made with PCR for hazardous materials, there are ongoing discussions around this topic taking place within the industry.”

Other significant developments in Grief’s GCUBE IBC portfolio include GCUBE Elektron, which uses special multi-layer technology and is approved for EX zones. GCUBE Food offers food-safe technology for the food industry and GCUBE Flex combines a rigid GCUBE IBC with an aseptic liner, designed to be suitable for food, pharma and cosmetic applications. Bettoni adds: “IBCs offer cost-effective transportation and storage, ease of maintenance and are reusable, making them a popular choice for many industries. Investment in our GCUBE IBC capabilities will continue to be a priority for Greif as we look to develop packaging solutions that meet customers’ requirements and offer sustainable value.” Greif has become one of the fastest growing and highest investing companies in terms of IBC production and has a global network of facilities. Recognised as a world leader in industrial packaging products and services, Greif has almost 300 operating locations situated across more than 40 countries. www.greif.com

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INDUSTRIAL PACKAGING

loaded, thanks to the larger volume, only half as many trips are required as with conventional trucks, which is very resource-saving.” www.schuetz.net GREIF FOCUSES ON INDUSTRY

MORE FROM MAUSER

Mauser Packaging Solutions is making significant investments in state-of-the-art equipment to more than double production capacity of quart and gallon-sized F-style metal cans at its Memphis, Tennessee facility. The line was only opened last August but this new project will optimise raw material usage, reduce waste, reduce energy consumption, provide enhanced safety features, and offer significantly higher productivity levels, the company says. The F-style cans are designed for packaging solvents, such as paint thinner, charcoal lighter fluid, chemicals and other products. Cans contain a minimum of 25 per cent recycled content and are 100 per cent recyclable after use, Mauser says. Mauser has also introduced a new aluminium easy-peel valve seal for its intermediate bulk containers (IBCs). Such seals alert users to potential product tampering or contamination but often require a knife to remove and can leave behind residue that mixes with the product being dispensed. Mauser’s new aluminium IBC

valve seal can be peeled off by hand and the design eliminates the risk of glue or metal residue contaminating products. The new seal is being rolled out globally this year and is available for use with 2- and 3-inch butterfly valves. www.mauserpackaging.com BIGGER TRUCKS FOR IBCS

Schütz has begun using ‘Ecoliner’ trucks (below) to deliver IBCs from its plant in Selters to BASF in Ludwigshafen, Germany. The trucks, supplied by its logistics partner Haaf, can carry 112 empty IBCs, halving the number of trips needed to deliver new IBCs and reducing both costs and CO2 emissions. “IBCs are a commonly used form of packaging. The square shape allows IBCs to be stacked and transported in a way that saves space,” notes Angela Giubilaro, global category manager, IBCs and HDPE drums at BASF. “Even with these advantages, logistics costs play a major role, which is why we have been working with suppliers and forwarders on the long truck project since 2017. When fully

Greif has entered into a definitive agreement to sell its Consumer Packaging Group (CPG) business to Graphic Packaging Holding for $85m cash. The proceeds will be used to pay down debt. “We are pleased with the conclusion of the CPG strategic review process,” says Pete Watson, Greif ’s president and CEO. “The sale of CPG allows us to de-lever our balance sheet and optimise capital allocation plans. By divesting these assets, we can refocus our business on our core industrial franchise and our stated strategic growth priorities in IBC production and reconditioning and containerboard integration.” Greif is also installing a blowmoulding machine at its Merced facility in California, which will increase production of plastics drums for the local market; it is due online in the second quarter of this year. The machine will allow Greif to focus on servicing the growing market for both open-head and tight-head plastic drums in various sizes. “We will continue to invest and grow with our customers to support their increasing needs while shortening lead times,” says Kevin Kling, plastic & IBC development director for Greif. www.greif.com VASKERIET ACQUIRED BY MJ

MJ Plastics, which invests in companies active in plastics recycling and the circular economy, has acquired the Danish company Emballage Vaskeriet, a reconditioner of IBCs, drums and jerrycans for the chemical industry. “Our strategy is to invest and develop the company,” says Martin Schack Staffeldt, director of MJ Plastics. “We want to offer our customers new sustainable and innovative best-in-class recycling services, focusing on circular economy. We want to help our customers and meet the new EU packaging directive on extended producer responsibility which goes into force in 2025, and make a difference.” In the short term, this will involve investing in machinery and equipment to offer new services in plastics recycling, documentation on CO2 emissions control, safety and

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INDUSTRIAL PACKAGING 21

quality, according to Jacob Kunøe, director of MJ Plastics. emballage-vaskeriet.dk MORE INFO FROM ISDI

The Industrial Steel Drum Institute (ISDI) has released a new video, Tips for Buying New Steel Drums, that will answer a lot of frequently asked questions. “There are many attributes of a steel drum that can be adjusted based on your needs,” says Susan Nauman, executive director of ISDI. “What we’ve found is that many people don’t know the options available to them or know what will work best for them and their product. In our new video, we detail everything from regulations and ratings to drum and hoop styles all in an effort to help make the decision-making process as simple as possible.” whysteeldrums.org

Hoyer says it is experiencing strong demand for heated IBCs for the food industry, cylindrical containers for the paints and coatings sector, and mini pressure tanks for the transport of special chemicals. Hoyer’s stainless steel IBCs are available in sizes ranging from 500 to 1,110 litres and are mainly deployed in China, Europe and the US.

“The requirements of IBCs in terms of their features are growing. We meet these not only with the right equipment, but also with comprehensive services which ensure the quality and safety of the product as well as efficient planning and delivery,” say Stephanie Muhs, director of IBC Logistics at the Hoyer Group. www.hoyer-group.com

HOYER BIG IN IBCS

Hoyer’s IBC fleet has grown to 50,000 units, more than double the size of five years ago.

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CROSS THE STREAMS MIDSTREAM • IF OPERATORS FOUND 2019 HARD TO DEAL WITH, 2020 IS ALREADY TURNING OUT TO BE SOMETHING ELSE ALTOGETHER

commodity prices and end-user demand have thrown investment plans into chaos. Teague says the company is “currently reviewing its capital expenditure programme” and is in discussions with its customers to evaluate opportunities to reduce or defer investments.

FOR INDEPENDENT OPERATORS in the North American midstream patch, 2019 turned out to be a rather mixed bag. While new export facilities and downstream investment took all the headlines, tightening margins hampered arbitrage opportunities across the continent. As a result, those with pipeline connections to the US Gulf largely did well, while those closer to domestic refining sponsors saw their volumes and revenues drop. One operator at the wrong end of things, for instance, was Delek US Holdings, which saw full-year revenues drop from $10.23bn in 2018 to $9.30bn and operating income fall 20 per

Products Partners, one of those focusing on the expansion of export capacity for crude oil and liquefied gases in the Houston area. Net income for the year rose by 9 per cent to $4.6bn, with all business segments reporting increased results. “During the fourth quarter, our engineering and operations team successfully completed construction and began commercial operations of expansion assets at our LPG marine terminal, the Mentone and Bulldog natural gas processing plants, the ethylene export terminal on the Houston Ship Channel and our isobutane dehydrogenation facility,”

PLAYING WITH THE BIG BOYS Also finding itself in the right place was NuStar Energy, which reported 2019 net income of $207m, up 41 per cent over the 2018 figure, and EBITDA from continuing operations up 12 per cent at $668m. “Last year was, by all measures, a great year for NuStar,” says president/CEO Brad Barron. “Our results, across the board, demonstrate how well our employees executed on our 2019 plan.” NuStar notes that throughput volumes at its storage terminals increased by 36 per cent last year; its west coast terminals “executed on projects to develop the renewable fuels logistics network necessary for regional markets to achieve low-carbon fuel targets”

cent to $492.3m. The decline was attributed to a tighter crude oil price differential, partly offset by some investments that came onstream during 2019. It is now looking to trim its retail portfolio and invest further in pipeline infrastructure and other midstream assets. Doing rather better last year was Enterprise

reports AJ ‘Jim’ Teague, CEO of Enterprise’s general partner, illustrating what the company sees as its strategic priorities. This year may, though, turn out rather differently. In common with other businesses at all points in the liquids supply chain, the impact of the Covid-19 pandemic on

while the St James facility in Louisiana more than doubled unit train activity after new pipeline connections opened. In particular, Barron points to increased throughput on both its Permian Crude System and its Corpus Christi Crude System, with volumes handled at the Corpus Christi export

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STORAGE TERMINALS 25

terminal more than doubling over the course of the year. Magellan Midstream Partners is another major operator that has been expanding export handling capacity in the Houston area, and ended 2019 with transportation and terminals revenue of $1.97bn, up on the $1.88bn posted in 2018. Product sales revenues dropped, however, indicating the weakness noted in oil prices. Nonetheless, overall operating profit edged up slightly to $1.20bn. “Magellan closed out the year with another strong quarter, generating solid financial results from each of our segments and solidifying 2019 as a record year for our company,” says CEO Michael Mears. “Our conservative business model has consistently proven successful as we focus on providing essential services to move the fuel that keeps America moving while ensuring attractive returns on capital deployed.” Magellan’s marine storage division delivered an operating margin of $133.7m, up 13.4 per cent year-on-year. Expansion work during 2019 focused on the 4m-bbl joint-

 PIPELINE CONNECTIVITY IS CRUCIAL FOR MIDSTREAM OPERATORS LOOKING TO MOVE ALL MANNER OF LIQUID AND LIQUEFIED PRODUCT TO MARKET, WHETHER THAT IS WITHIN NORTH AMERICA OR, AS IT INCREASINGLY IS, OVERSEAS

venture Pasadena facility, which is expected to be fully in service shortly, and the Seabrook terminal, where 800,000 bbl of new tank storage recently came into service; Magellan is adding new dock capabilities this year and another 750,000 bbl of tankage is due to be completed early in 2021. In the meantime, Magellan is looking to close the projected sale of three marine terminals in Connecticut, Delaware and Louisiana shortly. OUT OF THE WINDOW But, by the end of the first quarter of 2020, all those good intentions may have to be tossed away. It is not just the impact of the Coronavirus pandemic – there is simply too much oil in the market. The new output arriving on the world market from the US has until now been soaked up by strong demand but, spooked by weakening consumption patterns and the inability of the Organisation of the Petroleum Exporting Countries (Opec) to rein in production, crude oil prices have plummeted to levels not seen since 2002. The evidence has been clear to see from the example of China, where the disease first emerged. Consultants are now expecting oil demand in China this year to be flat compared to 2019, with a similar effect elsewhere in Asia. Refiners do not yet seem to have reacted in full to the slump in demand for road, aviation and bunker fuels, although that is coming. In the

meantime, surplus crude oil and refined products are heading into storage – with consultant Rystad Energy predicting that global storage capacity could be effectively ‘full’ within months. That process is being accelerated by the US administration’s announcement that it will be taking advantage of low prices to put more strategic reserves aside. That is not necessarily bad news for terminal operators: at least they will be earning money from their full tanks, even if they are not picking up throughput revenues. But what it does do is throw into questions investment plans. Operators may be tempted to focus on the short-term market reality and reap the benefits, although of course it does take time to put the necessary capacity and capabilities into place; on the other hand, if this crisis passes quickly, they may find themselves left with capacity that cannot be filled, or spare capacity in the wrong place. Opec has another opportunity to toughen its production limits, but then again it is also seeking to protect its market share from the US and Russia so it may not feel able to take a strong position. What seems likely is that we will have a much better idea about how the North American midstream operators are going to play this market once their firstquarter figures start to emerge in a few weeks. What is clear is that, for the rest of the year, it will be a very long way from business as usual.

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COMING SOON CONSTRUCTION • STANDIC’S NEW TERMINAL IN ANTWERP IS BEGINNING TO TAKE SHAPE, WITH COMMERCIAL STARTUP NOW LESS THAN A YEAR AWAY This past February, Standic celebrated the first groundbreaking on its new chemical storage terminal in the port of Antwerp with a small ceremony. The company, part of the familyowned Hametha group, screwed the first of 4,300 poles into the ground, marking the beginning of construction of the 79-tank facility, due to enter into service early in 2021. The new terminal is being built on the fifth Havendok on the right bank of the River Scheldt. Completion of the new facility will double Standic’s storage capacity in the Amsterdam-Rotterdam-Antwerp (ARA) area, adding to its existing terminal in Dordrecht. The Antwerp site will be built in three phases, with the first due to offer 93,000 m³ of tankage by the end of first quarter 2021; once complete, the terminal will comprise some 230,000 m³ of tank capacity.

 STANDIC’S VISION FOR ITS NEW ANTWERP TERMINAL INCLUDES BUILT-IN SUSTAINABILITY

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The state-of-the-art facility will be fully automated, with built-in sustainability features such as onshore power via the Port of Antwerp for ships moored at the terminal, using residual heat for the hot water infrastructure and solar power for all electrical power in the office building. Standic will also offer extensive opening hours for tank trucks, thus contributing to limiting peak emissions of particulates during daytime. “The Port of Antwerp is known as one of the largest maritime chemical clusters in the world, which is why we chose it for our expansion,” says Hametha’s managing director Ronald Ooms. “We aim to build on our success with the chemical storage and further expand it. In Antwerp we will be able to further develop in the niche market of more specialised chemicals and serve our customers from all over the world.” “The new Standic terminal will further boost the synergy between the various industrial companies in the port, thus helping to make logistic operations and processes even more

cost-efficient,” adds William Demoor, customer relations manager at the Port of Antwerp. “Furthermore, the location is ideal for multimodal access, a key factor for sustainable distribution of chemicals.” IT’S THE FAMILY WAY The new terminal has been designed in light of the Port of Antwerp’s business plan, one of the key elements of which is the need to ensure that future development meets sustainability goals. Large chemical tankers will be able to reach the terminal easily thanks to the favourable depth in the port. In addition to its accessibility by water – both by sea and by inland waterway – the location is also very favourable for rail transport, all of which has a favourable impact on the target of moving freight off the roads. It also fits neatly alongside the Dordrecht terminal, which has 230,500 m³ of storage capacity shared between 163 tanks of a wide variety of size and type, within the Rotterdam area. The terminal is designed to facilitate the storage of flammable and non-flammable chemical products, biofuels and raw materials for lubricants, in large and small quantities, in stainless steel and mild steel storage tanks. Standic is investing around €200m in the new Antwerp terminal. Like the Dordrecht facility, it will concentrate on niche chemical markets and the distribution of chemical products, with storage tanks ranging in size from 500 m³ to 3,500 m³. www.standic.com

STORAGE TERMINALS

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STORAGE TERMINALS

CONTANDA AND BW COMBINE

Contanda and BW Terminals are to merge, following the acquisition of Contanda by institutional investors advised by JP Morgan Asset Management this past December, which brought the two companies under common ownership. The combined entity will be headed by industry veteran Mike Suder, currently BW Terminals’ CEO, with Jerry Cardillo planning to step down from his role at Contanda to pursue other opportunities. “Mike has a proven record of accomplishment at BW Terminals and has overseen tremendous growth at each of the companies he has led throughout his almost three-decade career in the terminals industry,” a statement from the board of directors says. “We believe he is the ideal leader for the Contanda–BW Terminals organisation. We have tremendous respect for what Contanda has achieved under Jerry’s leadership and wish him well in his future endeavours.” Suder adds: “Both Contanda and BW

HCB MONTHLY | APRIL 2020

Terminals have a reputation for exceptional service enabled by dedicated employees. By bringing Contanda and BW Terminals together, we are entering a new chapter of growth and success. I look forward to leading this combined organisation and I firmly believe that the combination will further enhance our customer service offering and create a leading platform in the industry.” Contanda currently operates 15 bulk liquids terminals in North America with a total tank capacity of more than 7m bbl. BW Terminals operates three facilities in Louisiana (above) and Georgia, storing a wide range of petroleum, chemical and agricultural products. www.contanda.com GOING OFFSHORE

Phillips 66 and Trafigura Corp have established a 50/50 joint venture, Bluewater Texas Terminal, to develop an offshore VLCC loading facility some 21 nm east of Corpus Christi for the export of crude oil. The plan is to install two

single-point mooring buoys, subject to a final investment decision expected later this year once permitting has been completed. As part of the move, Trafigura has withdrawn its application to develop the Texas Gulf Terminals deepwater port facility, lodged with the US Maritime Administration (MarAd) in July 2018. The Bluewater Texas joint venture combines the unique market position that Trafigura has built in the US as a leading exporter and marketer of crude oil with Phillips 66’s commercial expertise, existing infrastructure network on the US Gulf Coast, and proven operating experience, including the safe operation of a single point mooring buoy in the UK since 1971. www.phillips66.com INTER IN CHARGE

Inter Pipeline Fund has reported funds from its Inter Terminals division of C$115m for the full year 2019, up by C$49m over the 2018

STORAGE TERMINALS 29

figure following the acquisition of the NuStar Europe facilities in the UK and the Netherlands in late 2018 and new storage contracts in Denmark signed during 2019. Average tank utilisation increased from 77 per cent in 2018 to 87 per cent. The integration of the former NuStar sites has expanded Inter Terminals’ network to 23 sites with a combined capacity of 5.8m m³; it is also now the largest independent storage provider in the UK, with more than 1.8m m³ to its name. Last December Inter Terminals reorganised its business structure to reflect that growth, with David McLoughlin appointed as managing director and country manager for the UK and Ireland, and Arjen Schneiders to the same role in the Netherlands. Other country managers look after terminals in Germany, Sweden and Denmark. Inter Pipeline remains engaged in exploring the potential sale of its terminal business. “The sale process is ongoing and is expected to be concluded within the first half of 2020,” it says, although that conclusion could involve the sale of all or part of Inter Terminals or its retention by its parent. Any proceeds will be used to reduce debt and finance Inter Pipeline’s capital expenditure programme. www.interpipeline.com

BG Fuels will allow us to extend our supply footprint and retail offer across Canada, enabling significant future growth. The experience and resources of both businesses will further strengthen our retail offer to the independent dealer market.” Joe Calderone, BG Fuels’ CEO, who will join the board, adds: “Our extensive retail experience and commitment to consumers has seen BG Fuels become a leading fuel and convenience retailer in Canada. We look forward to leveraging Greenergy’s proven supply chain capabilities to enhance our portfolio of service stations across Canada.” www.greenergy.com RUBIS ON THE UP

Rubis Terminal returned to growth last year, with a 6 per centincrease in its contribution to group EBIT at €49m. Rubis continues to invest in its terminals, expanding chemical storage capacity in the ARA zone and bitumen storage at its Dunkerque facility, while also adding more blending capacity for heavy oil products to help meet IMO 2020 requirements.

Rubis has also now signed a definitive partnership agreement with I Squared Capital, under which it will sell a 45 per cent share in Rubis Terminal to the infrastructure fund to provide the resources to accelerate its development programme. rubis.fr LBC GETS TO WORK

LBC Tank Terminals has driven the first piles in the expansion project at its Rotterdam-Botlek terminal (below). The current ‘Rainbow II’ project will expand capacity at the site by 70,000 m³ to 180,000 m³, to serve a growing market for the storage and transhipment of chemicals in Rotterdam. Completion is scheduled for third quarter 2021. LBC says the investment is part of a multi-year programme to revamp and expand the Botlek site. As part of that, it is also to expand its newly built deepsea jetty with two new berths. www.lbctt.com

CANADIAN COLLECTIVE

Greenergy has announced a merger with BG Fuels, a leading Canadian gasoline and convenience store retailer, which will see BG integrated into Greenergy over the course of this year. The combination of Greenergy’s supply chain expertise and growing independent dealer offer, together with BG Fuels’ national brand management and site operation capabilities is expected to create economies of scale and provide greater flexibility in fuel supply. “Since entering the Canadian market in 2013, Greenergy has invested in strategic infrastructure in Ontario to deliver low-cost and resilient fuel supply to customers, and also introduced two new retail brands for the independent dealer market,” says Christian Flach, Greenergy CEO. “The merger with

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SHOCK OF THE NEW DIGITISATION • NEW TECHNOLOGIES ARE TRANSFORMING CHEMICAL SUPPLY CHAINS AROUND THE WORLD BUT THE US PETROCHEMICAL INDUSTRY FACES SOME PARTICULAR ISSUES E-COMMERCE HAS WROUGHT a revolution in customer behaviour in recent years – but largely so far in the consumer sector. Individuals have come to expect that they can order goods online, wherever they are in the world, and they will be delivered promptly (even on the same day in some cases) to a specified point. During the delivery, the customer can keep track of where the goods are and get a definitive estimated time of delivery (ETD) that, in all but a few cases, is met. Those same consumers are often also working in industry so it is no surprise that they are coming to expect the same degree of visibility for their industrial products. And while some producers in the chemicals

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sector are responding to that call, there are challenges to be faced. Those challenges will be discussed during the Petrochemical Supply Chain and Logistics conference, due to take place in Houston on 10 and 11 June, coronavirus permitting. Ahead of the event, the organisers gauged the tenor of the industry with interviews with three specialists in the sector to get their views on the pace of implementation of the digital technologies necessary to create an ‘Amazon effect’ in the US petrochemical industry, the barriers that are holding up that implementation, and what a broad application of digitised systems will mean.

DIGITISATION IN PRACTICE As digitisation arrives in industry, it is beginning to become apparent that there are three areas where it can make a difference: - In purely internal terms, through improvements in enterprise resource planning (ERP) systems, accuracy of forecasting and planning, and automating the order-to-cash cycle - I n inter-company communication, improving accuracy and delivering improved customer service, and - I n the application of digitised hardware, such as ‘smart’ equipment in the process industries, drones in delivery applications and completely global mobile tracking. Each of these delivers similar outcomes: enhanced visibility throughout the supply chain, the availability of real-time information to all parties, a reduction in errors, and better accuracy. But, as is also becoming apparent, corporations adopting digitised systems need to keep the human factor in mind. Digitisation cannot replace the organisation or individuals within it, and must be designed in such a way

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Internet of Things (IoT) platforms can be applied here to improve predictive analysis by linking all data inputs in a single system; this can then sense and react to actual conditions along the supply chain and recommend – or even implement – changes in routing or dispatch activity to compensate. Those IoT platforms can also be used to add visibility to goods in transit and, at the same time, feed data into management systems and into other analytics processes to improve the quality of decision-making.

as to complement and enhance their efforts. It is people that are going to have to work with these emerging technologies and their needs must be also taken into account. Businesses are, though, often faced with a major problem early on in the path towards digitisation: the need to deal with legacy systems. Upgrading to a newer ERP system is comparatively straightforward – although often expensive - and something that is happening across the petrochemical industry right now; that process is also helping to simplify software structures across larger corporations and is tending to use cloud-based applications to ensure that all locations are working from the same version. However, that process is also making it very apparent that there are some legacy applications, perhaps decades old, that have to either be replaced or be incorporated in some way into the new systems. BARRIERS TO BELIEF Those interviewed prior to the conference were keen to point out that, while many petrochemical companies have the financial resources to build digital supply chains,

 ADOPTION OF DIGITISED SYTEMS IN THE PETROCHEMICAL SECTOR HAS BEEN SLOW BUT, ESPECIALLY IN THE US, THE EMERGENCE OF NEW PRODUCT STREAMS AND ADDITIONS TO PRODUCTION CAPACITY ARE MAKING THEIR ATTRACTIONS EVEN MORE OBVIOUS

the process of actually doing so is hampered by the industry’s conservative mentality. To some extent, that reluctance to adopt new technologies is simply a reflection of the potentially gigantic risks if something goes wrong as a result. So, while most petrochemical companies have installed automated systems to replace manual labour, moving towards automated control is widely seen as risky. Then again, while that approach might be advantageous, it also leaves manufacturers vulnerable to the emergence of new competitors or disruptors in the industry, more open to the idea of using new technologies to find new ways to meet customer needs. That risk is rather more apparent in the supply chain than in chemical manufacturing, but as logistics represents a significant part of the delivered price of chemicals, there is a margin available for those willing to think outside the traditional means of supplying customers. Some systems are already being taken up by existing players in the field. Predictive analysis is being more widely used to fill in

WHAT’S NEXT The US petrochemical sector also seems eager to leverage the potential provided by blockchain systems to keep track of shipments along international supply chains and to share that information among the various participants. This will prove particularly useful given the recent upsurge in new investment in polymer production capacity as a downstream outlet for the huge new wave of feedstocks emerging out of the shale gas bonanza. More prosaically, transportation management systems (TMS) are being increasingly used and developed through new technologies. Producers have been showing themselves increasingly willing to boost their TMS’s utility by importing data from other sources to help in making decisions. That may involve the use of blockchain techniques, coupled with artificial intelligence or machine learning, to replace a lot of the manual input into routing and scheduling. From a European perspective, it does feel as though the US petrochemical industry is a couple of years behind its European counterpart, as the same conversations have been staples of conferences in Europe for a while now. But at least the conversations are the same: that suggests that the sector is facing the same hurdles wherever it is located and each region could usefully learn from the experiences of others.

the gaps in visibility and to determine how interruptions in the supply chain can be managed. It is inevitable that a supply chain will not work perfectly all the time – traffic delays, strikes and breakdowns can all cause delays and are out of the control of the supplier.

As with everything in this most unusual of years, however, the impact of the coronavirus pandemic on industry’s ability or willingness to invest in change is as yet unknown. That will undoubtedly form part of the conversation at the June conference and at other events that will be held once the worst of the outbreak is over.

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STRAIGHT OUTTA TEXAS STRATEGY • TRECORA HAS SIGNED UP WITH ODYSSEY’S MANAGEMENT LOGISTICS SERVICE TO HELP OPTIMISE THE DISTRIBUTION OF ITS PETROCHEMICALS ODYSSEY LOGISTICS & Technology Corporation has signed a multi-year Managed Logistics Service agreement with global petrochemical products manufacturer Trecora Resources. The agreement builds on a supply chain consulting project Trecora lined up with Odyssey to evaluate logistics costs in tank container shipments, liquid bulk tank truck and rail operations. This work provided benchmarking data on Trecora’s operations, distribution network, infrastructure and offered key metrics such as total spend, vendor costs and productivity performance. “Trecora manufactures high-purity specialty petrochemicals and synthetic waxes. The quality of our products and the integrity of our supply chain are critically important to our customers,” explains

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Patrick D Quarles, president and CEO of Trecora. “Together with Odyssey, we aim to maintain our performance profile at a lower cost by seamlessly integrating Odyssey’s technologies into our business without disruptions to service. We look forward to continuing our work together with Odyssey to drive further improvements and longterm value for Trecora, our customers and shareholders.” “Our supply chain engineers spent two months aligning with Trecora on its efforts to achieve continuous process improvements and cost savings,” says Bob Shellman, president and CEO of Odyssey. “Through our technology and efficiency roadmap, Trecora will utilise a full suite of data analytics and reporting tools to create cost transparency and performance enhancements.” WITH THE BIG BOYS Trecora’s principal business activities are the manufacturing of various specialty petrochemical products and synthetic waxes and the provision of custom processing services at two sites in Texas. It will leverage Odyssey’s Managed Logistics Services to optimise all aspects of its

transport management strategy and execution. This includes Odyssey’s vast supplier network and a team of supply chain engineers to drive cost savings, shipment visibility, insightful data reporting, continuous improvements and sustainability developments. In its end-year financial report for 2019, Odyssey noted that it has been experiencing increasing demand for its Managed Logistics Services, which enable clients to leverage a full suite of supply chain services or select individual features including cargo planning, tendering, shipment visibility, configurable event management, freight audit and payment, and management reporting. Odyssey’s Managed Services business segment’s organic revenues grew 12 per cent and earnings increased 36 per cent in 2019 versus the prior year. “Technology is fundamental to the future of logistics and Odyssey is committed to using new and future innovations to meet the increasing demands of our customers,” says Shellman. “But technology is only as powerful as the team behind it. Not only do we have a great team here, we strengthened our technology leadership in 2019 when we brought onboard Albert Lee in early 2019 as chief technology officer to lead the way in transforming Odyssey into an unrivalled global technology leader in the logistics supply chain industry.” www.odysseylogistics.com

TANKS & LOGISTICS 33

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Elemica says this latest round of updates is part of its continual process of improving the Digital Supply Network software, based on client requests for additional benefits together with internally generated improvements that aim to reduce supply chain costs while making the software more robust and easier to use.

ELEMICA, THE LEADING cloud-based digital supply network for global manufacturing industries, has added a range of new features to its Digital Supply Network and Supply Chain Solutions suites designed to enhance product safety and customer experience. Elemica says these additions bring “significant improvements” in visibility of product shipments, track and trace functions, electronic proof of delivery, visual route progress and self-service data enrichment. “Having optimal visibility into the supply chain creates safer products and services and builds on customer loyalty and ultimate satisfaction,” says Arun Samuga, chief technology officer at Elemica. “These

connectivity, improve search including hazardous material criteria, and allow for more in-depth visualisation for track and trace of product safety and knowing where orders and shipments are at all times.” A range of other updates have also improved a number of products within Elemica’s various digital solutions. These include the Transport & QuickLink Email Move, which aims to improve product safety by incorporating hazardous materials data, simplifying booking requests globally with carriers in multiple languages in a costeffective and consistent manner. Its Pulse product within the ‘Elemica See’ control tower allows shippers and carriers to collaborate

FILLING THE ROLES Growing demand for Elemica’s services have prompted two recent senior-level appointments aimed to give a greater focus on enhanced client success and new services and implementations. Steve Lyman has been recruited from Grant Thornton, where he was managing director of business transformation, and given the role of senior vice-president of professional services. His task will be to ensure desired business outcomes for clients by leading the team in charge of customer success, implementations and services. Existing team member Cindi Hane, vicepresident of logistics product management, will also take on the role of general manager of Eyefreight, a transport management system recently acquired by Elemica. In this capacity, she will lead the day-to-day activities of the Eyefreight team providing clients a single platform for multi-national, multi-modal shipment optimisation, freight settlement and execution. “I am pleased to welcome Steve Lyman to our team and Cindi Hane to her new role in guiding Elemica and its clients to the next level of digital transformation success,” says Rich Katz, CEO of Elemica. “These management changes strategically align the organisation with our continuing growth initiatives in helping Elemica serve clients with next-generation, digital supply chain solutions.” Elemica was formed in 2000 to accelerate

enhancements improve use of inventory, streamline onboarding for inter-business

on realistic promise-based, on-time, infull delivery, regardless of how orders are received; this reduces customer service costs by eliminating order and shipment status enquiries and by using end-to-end supply chain visibility and monitoring to complete the order-to-cash and procure-to-pay workflows.

digital transformation in the supply chain by connecting, automating and anticipating processes across a range of industries, including the global chemical industry. It now handles more than $600bn worth of commerce annually on its network. elemica.com

SEE CLEARER NOW DIGITISATION • ELEMICA’S CONTINUOUS PRODUCT IMPROVEMENT CYCLE HAS SEEN NEW FUNCTIONS AND UPDATES BEING INTRODUCED TO ITS VARIOUS PRODUCTS AND SOLUTIONS

 ELEMICA’S SYSTEMS PROVIDE SHIPPERS AND LOGISTICS PROVIDERS WITH GREATER VISIBILITY

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NEWS BULLETIN

TANKS & LOGISTICS

SALCO SNAPPED UP

Stone Canyon Industries (SCI), through its SCI Rail Holdings unit subsidiary A Stucki Co, has acquired Salco Products, the largest supplier of circular hatch covers to the North American freight car industry. Salco is also a major supplier of valves for tank cars and metal and plastics components used in a variety of hopper cars, tank cars and over-the-road trailers. The acquisition of Salco broadens SCI Rail’s freight car product offering and expands its customer reach with blue chip commodity shippers who have trusted and specified Salco’s componentry since its inception in 1983. Bill Kiefer, A Stucki’s CEO, says: “Our team is excited to welcome Salco, its loyal customers and its employees into the Stucki family. We’re pleased that Dave Oestermeyer will continue as president of Salco into the future. Dave’s industry experience, relationships and leadership will be invaluable to the business going forward. This along with Salco’s brand name and record of strong product performance is key to the acquisition and to the ongoing success and growth of the business.” SCI is a global industrial holding company © 2020 EYE IMAGERY

with a “buy, build and hold” approach to long-term investment, focusing on marketleading companies in essential industries. www.salcoproducts.com LNG AT THE DOUBLE

Cryopeak LNG Solutions has carried out what it says is the largest delivery of LNG by truck in North America, using its new B-train design. The first consignment of 18,000 gal (68 m³) was delivered to Coeur Mining’s Silvertip mine on the Yukon/British Columbia border. Cryopeak is aiming to expand the use of LNG in mining applications, while also offering to supply remote communities. Cryopeak’s Super B-Train is designed to have up to 70 per cent greater load capacity than standard trailers operating in Canada today, improving LNG’s competitiveness as a fuel source for remote mining locations and communities. Understanding that transportation often represents the largest cost of LNG for customers, Coeur Silvertip was eager to work with Cryopeak on this initiative. “We are pleased to support the development of the new Super B-Train LNG trailer, which

will increase LNG payload and decrease transportation costs of LNG to the Silvertip mine,” says Rick Loughery, purchasing manager for Coeur Silvertip. cryopeak.com LESCHACO STAYS SECURE

Leschaco Inc USA has successfully passed a revalidation audit under the Customs-Trade Partnership Against Terrorism (C-TPAT) scheme, maintaining its participation as a forwarder/consolidator and broker. The audit took place recently in Houston and was conducted by personnel from the US Customs and Border Protection (CBP). After reviewing the validation report, it was determined that Leschaco Inc has established effective security practices in its operations and is committed to working with business partners to eliminate any security vulnerabilities in the supply chain. The current security criteria for eligibility to participate in the program are therefore fully met. “We are very proud of the results of the validation and of being a member of this important partnership. We would like to thank our compliance team, which played a key role in this important audit,” says Mark Malambri, managing director of Leschaco Inc. “As a global logistics service provider, we see it as our duty to comply with international security guidelines to protect our customers and their supply chains against risks and peril,” adds Jörg Conrad, owner and CEO of the Leschaco Group. www.leschaco.com MORE PALLETS AT TALKE

Talke has expanded warehouse space at its headquarters in Hürth, near Köln in Germany, adding some 9,200 pallet spaces. The facility was built some time ago but is only now being used by Talke; the space is designed for single-batch storage of materials designated as storage classes 11 to 13 and the strictest water hazard. “The compact shuttle storage facility with special carrier systems allows optimal processing times to be achieved with the simultaneous deployment of up to eight employees in two picking zones with a total of 12 loading ramps,” Talke says. “State-of-the-art detection and extinguishing equipment, including sprinklers within the rows and tiers of storage racks, offers optimal protection against fire.”

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“The commissioning of this warehouse is a clear commitment to our headquarters in Hürth,” says group managing director Alfred Talke. “It is a first step towards expanding our capacities here in the Rhineland. Further steps are currently in preparation.” www.talke.com DELSOL DEAL BUILDS FLEET

Delsol Solutions, based in North Wales, UK, has acquired the local haulage business HF Owen from its retiring owner and founder Harry Owen. Delsol, which offers parcel delivery, haulage, storage, pallet distribution and the transport of hazardous chemicals and is a member of the Hazchem Network, has begun an upgrade of HF Owen’s 10-strong vehicle fleet. Three members of the Owen family will stay with the firm, which will continue to trade under the HF Owen name. Delsol now has more than 120 vehicles and employs more than 120 staff. “We are delighted to have acquired the HF Owen business. The company is well respected across North Wales and has a loyal customer base,” says Dave Phillips, Delsol managing director (pictured opposite). “The purchase further consolidates Delsol’s position as the leading logistics business in the region.” Delsol reports a good 2019, with revenues up by 20 per cent and a 10 per cent increase in deliveries. It also expanded its storage facility and introduced a new warehouse management system. Tony Parry, one of Delsol’s co-founders, says: “We recognise the importance of not standing still and continuing to invest in the business, whether this is recruiting and training the best people, investing in the quality of our fleet or integrating the latest industry technology. Customer service has been key, providing a flexible and friendly service. Our customers are our greatest advocates and our best referrers of new business.” www.deliverysolutions.co.uk

“The retention of our existing business with Shell, as well as the winning of significant additional business, is a credit to our people who have contributed to a continuously improving safety and service performance over the past few years,” says Allan Davison, UK operations director for Hoyer Petrolog. The expansion will mean the assignment of 30 extra vehicles and 100 more drivers to the contract. www.hoyer.uk.com SUTTONS WINS YARA WORK

Suttons Tankers has won a contract with Yara covering the distribution of its Air1™ AdBlue diesel exhaust fluid in bulk across the UK. “As the largest AdBlue manufacturer with a worldwide presence, we needed a partner that is able to deliver a safe and reliable service for

our market leading Air1™ product,” says Paul Norman, UK and Ireland manager for Air1 business at Yara. “This latest partnership with Suttons sees a reduction in mileage for our fleet. This not only reduces cost, but also improves customer service which is a key focus of ours. It also has a positive impact on our carbon footprint.” Michael Cundy, managing director of Suttons Tankers (on left in bottom picture), adds: “We already have a strong relationship with Yara and look forward to further delivering efficiencies for the business. The innovations and efficiencies of Suttons’ UK wide depot network and an ability to respond quickly to Yara’s future needs were instrumental in helping us secure this significant new contract for our Tanker division.” www.suttonsgroup.com

SHELL EXTENDS HOYER DEAL

Hoyer Petrolog has expanded its UK fuel distribution deal with Shell to include loading from the Kingsbury and Hythe depots, increasing coverage in the Midlands and Hampshire. The agreement also sees the relationship extending through to June 2025.

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TRAINING COURSES CANADIAN INTERNATIONAL FREIGHT FORWARDERS ASSOCIATION (CIFFA) 170 Attwell Drive, Suite 480 Toronto, Ontario M9W 5Z5, Canada T (+1 416) 234 5100 www.ciffa.com Air Dangerous Goods, Initial • April 21-23 – Edmonton • May 12-14 – Toronto

Air Dangerous Goods, Recurrent • April 22-23 – Edmonton • May 13-14 – Toronto

CARGO TRAINING INTERNATIONAL PO Box 176 Shepperton TW17 8WP, UK T (+44 1932) 769682 P O Box 580026 Houston, TX 77258-0026, USA T (+1 281) 333 4672 www.cargotraining.com Dangerous Goods by Air – ICAO (full course) • • • • • • • • • • • • •

April 27-29 – Los Angeles May 4-6 – Dallas May 11-13 – Boston May 11-13 – Heathrow May 11-13 – Manchester May 18-20 – Birmingham, UK June 1-3 – Houston June 1-3 – Newport June 8-10 – Heathrow June 15-17 – Orlando June 22-24 – Dallas July 6-8 – Birmingham, UK July 6-8 – Houston

Dangerous Goods by Road – ADR (full course)

• May 18-20 – Heathrow • June 15-17 – Manchester • June 22-24 – Birmingham, UK

Dangerous Goods by Sea (IMDG) • • • • • • • • • •

April 23-24 – Houston April 30-May 1 – Los Angeles May 7-8 – Dallas May 14-15 – Boston May 21-22 – Heathrow June 9-10 – Houston June 18-19 – Manchester June 18-19 – Orlando June 25-26 – Birmingham, UK July 9-10 – Houston

IMDG – Sea – Revalidation • • • • • • •

April 24 – Houston May 1 – Los Angeles May 8 – Dallas May 15 – Boston June 10 – Houston June 19 – Orlando July 10 – Houston

HCB MONTHLY | APRIL 2020

DOT 49 CFR - Full Course • • • • •

April 23-24 – Houston May 7-8 – Dallas June 11-12 – Houston June 25-26 – Dallas July 9-10 – Houston

DOT 49 CFR – Recurrent • • • • •

April 24 – Houston May 8 – Dallas June 12 – Houston June 26 – Dallas July 10 – Houston

Dangerous Goods Safety Adviser • June 1-5 – Heathrow • June 1-5 – Manchester

Radioactive Materials by Air (full course) • June 4-5 – Houston

CERTIFIED PACKING & TRAINING 17820 Englewood Drive, Units 14-17 Cleveland, OH 44130, USA T (+1 440) 826 9292 www.certpack.com Ground and Air (initial)

• May 13-14 – Cleveland • July 22-23 – Cleveland

Ground and Air (recurrent) • May 12 – Cleveland • July 21 – Cleveland

Classifying Hazardous Materials for Transportation

• June 24-25 – Orlando • July 6-7 – Los Angeles • July 15-16 – Atlanta

DANGEROUS GOODS COUNCIL PO Box 7325 York, PA 17404, USA T (+1 717) 848 8840 www.hazshipper.com

IATA Recurrent

• May 18-20 – Orlando

49 CFR & International Air - Certification • • • • •

April 20-22 – Madison May 4-6 – Baltimore May 19-21 – Raleigh June 9-11 – Cleveland July 13-15 – Houston

49 CFR – Certification • • • • •

April 20-21 – Madison May 4-5 – Baltimore May 19-20 – Raleigh June 9-10 – Cleveland July 13-14 – Houston

International Air – Recertification • • • • • •

April 22 – Madison May 6 – Baltimore May 21 – Raleigh June 11 – Cleveland July 15 – Houston August 6 – St Louis

• May 13/15 – Cleveland • July 22/24 – Cleveland

DANGEROUS GOODS OF AMERICA 10400 NW 33rd Street, Suite 230 Doral, FL 33172, USA T (+1 305) 871 3313 www.dga4u.com

Ground and Vessel (recurrent)

Initial IATA & HMR Air

Ground and Vessel (initial)

• May 12 – Cleveland • July 21 – Cleveland

Multimodal (initial)

• May 13-15 – Cleveland • July 22-24 – Cleveland

Multimodal (recurrent) • May 12 – Cleveland • July 21 – Cleveland

DANGEROUS GOODS ADVISORY COUNCIL 7501 Greenway Center Drive, Suite 760 Greenbelt, MD 20770, USA T (+1 202) 289 4550 www.dgac.org Multi-Modal Transportation – Initial • July 20-24 – Houston

Multi-Modal Transportation – Recurrent • July 16-17 – Houston

• May 4-6 – Doral • June 1-3 – Doral • July 6-8 – Doral

Recurrent IATA & HMR • May 12 – Doral • June 9 – Doral • July 14 – Doral

IMDG Code & HMR Ocean • May 11 – Doral • July 13 – Doral

DGI TRAINING CENTER 1060 El Camino Real, Suite B Redwood City, CA 94063-1645, USA T (+1 650) 306 8450 www.dgitraining.com IATA Initial • • • • •

April 29-30 – San Antonio May 6-7 – Minneapolis May 20-21 – Los Angeles June 10-11 – Chicago June 15-16 – Boston

• • • • • • • •

April 30 – San Antonio May 7 – Minneapolis May 21 – Los Angeles June 11 – Chicago June 16 – Boston June 25 – Orlando July 7 – Los Angeles July 16 – Atlanta

IMDG Initial

• July 9-10 – Los Angeles

IMDG Recurrent • • • • • • • •

May 1 – San Antonio May 8 – Minneapolis May 22 – Los Angeles June 12 – Chicago June 18 – Boston June 26 – Orlando July 10 – Los Angeles July 17 – Atlanta

Ground Transportation (49 CFR) Initial • • • • • •

April 27-28 – San Antonio May 4-5 – Minneapolis May 18-19 – Los Angeles June 8-9 – Chicago June 22-23 – Orlando July 13-14 – Atlanta

Ground Transportation (49 CFR) Recurrent • • • • • • • •

April 28 – San Antonio May 5 – Minneapolis May 19 – Los Angeles June 9 – Chicago June 17 – Boston June 23 – Orlando July 8 – Los Angeles July 14 – Atlanta

Multimodal Initial (49 CFR/IATA/ IMDG) • • • • • •

April 27-May 1 – San Antonio May 4-8 – Minneapolis May 18-22 – Los Angeles June 8-12 – Chicago June 22-26 – Orlando July 13-17 – Atlanta

Multimodal Recurrent (49 CFR/ IATA/IMDG) • June 16-18 – Boston • July 21-23 – Anaheim

Ground/Air Shipping - Initial (49 CFR/IATA) • • • •

April 20-22 – Chicago June 15-17 – Boston July 6-8 – Los Angeles July 20-22 – Anaheim

COURSES & CONFERENCES 39

Ground/Air Shipping - Recurrent (49 CFR/IATA) • • • •

April 21-22 – Chicago June 16-17 – Boston July 7-8 – Los Angeles July 21-22 – Anaheim

• July 8 – Atlanta • July 8 – Houston

GLOBAL TRANSPORT TRAINING 54 Norristown Road Blue Bell, PA 19422, USA T (+1 215) 283 0983 Ground/Ocean Shipping - Recurrent www.gttstraining.com (49 CFR/IMDG) Multi-Modal - IATA/IMDG/DOT 49 • June 17-18 – Boston CFR – Initial • July 22-23 – Anaheim April 20-24 – Dallas April 27-May 1 – Cincinnati Air/Ocean Shipping – Recurrent April 27-May 1 – Philadelphia (IATA/IMDG) May 4-8 – Chicago • April 30-May 1 – San Antonio May 11-15 – San Francisco • May 7-8 – Minneapolis May 11-15 – Portland, OR May 18-22 – Houston • May 21-22 – Los Angeles June 1-5 – Atlanta • June 11-12 – Chicago June 8-12 – Los Angeles • June 25-26 – Orlando June 15-19 – Newark • July 16-17 – Atlanta June 22-26 – Boston July 6-10 – Charlotte Radioactive Materials (Multimodal) July 6-10 – New York • April 23-24 – Chicago July 13-17 – Dallas • July 6-7 – Las Vegas

Explosives (Multimodal) • July 8-9 – Las Vegas

DGM TRAINING INSTITUTE 1813 Greens Road Houston, TX 77032, USA T (+1 281) 821 0500 www.dgm-usa.com IATA/ICAO Dangerous Goods by Air – Initial • May 11-13 – Houston • June 8-10 – Atlanta

IATA/ICAO Dangerous Goods by Air – Recurrent • May 13-14 – Houston • June 9-10 – Atlanta

IMDG Code - Initial

HAZMATEAM 12 Kimball Hill Road Hudson, NH 03051-3915, USA T (+1 603) 882 1112 www.hazmateam.com US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation – Initial • June 2-4 – Hudson

US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation – Intermediate Refresher • May 27-28 – Hudson

US DOT Hazardous Materials Regulations (49 CFR) Ground Transportation – Advanced Refresher

• May 20-21 – Houston • July 9-10 – Houston

• April 14 – Hudson • June 10 – Hudson

IMDG Code – Recurrent

DOT Manifesting and Function Specific (49 CFR) Ground Transportation

• May 21 – Houston • July 10 – Houston

49 CFR Dangerous Goods by Road – Initial

• May 4 – Hudson

International Air Shipping – Initial

• May 15-16 – Atlanta • May 18-19 – Houston

• April 28-30 – Hudson • June 16-18 – Hudson

49 CFR Dangerous Goods by Road – Recurrent

International Air Shipping – Refresher

• May 16 – Atlanta • May 19 – Houston

Multi-Modal (Air, Road and Sea) – Initial • • • •

May 4-7 – Atlanta June 8-11 – Houston June 22-25 – Dallas July 13-16 – Atlanta

Guidelines for Shipping Lithium Batteries • May 14 – Atlanta • General Awareness

• April 20-21 – Hudson • June 24-25 – Hudson

Transportation of Lithium Metal and Lithium Ion Batteries • July 8 – Hudson

Water Transportation of Dangerous Goods (IMDG) – Refresher • May 7 – Hudson

Infectious Materials & Dry Ice • July 30 – Hudson

Incident Command • June 9 – Hudson

OSHA/EPA Emergency Response – Initial • May 11-15 – Hudson

Quebec, Canada. T (+1 514) 874 0202 www.iata.org/training

OSHA Emergency Response – Refresher

Dangerous Goods Regulations (DGR) – Initial, Category 6

• May 21 – Hudson

OSHA Emergency Response Operations Level – Initial • May 21 – Hudson

OSHA Emergency Response Technician Level – Initial • May 11-13 – Hudson

OSHA HAZWOPER Site Operations Initial • May 11-15 – Hudson

OSHA HAZWOPER Site Operations Refresher

• • • •

May 4-8 – Miami June 1-5 – Incheon June 8-12 – Geneva June 29-July 3 – Singapore

Dangerous Goods Regulations (DGR) – Recurrent, Category 6 • • • • •

April 27-29 – Brussels May 13-15 – Miami May 27-29 – Incheon June 3-5 – Geneva June 10-12 – Singapore

Dangerous Goods Regulations (DGR) – Shippers and Packers – Cat 1 and 2

• May 21 – Hudson

• May 4-6 – Singapore • July 1-3 – Amsterdam

Confined Space Entrant/Attendant & Rescue

Dangerous Goods Regulations (DGR) – Instructor Refresher

• May 19-20 – Hudson

ICC COMPLIANCE CENTER 2150 Liberty Drive Niagara Falls, NY 14304, USA T (+1 888) 442 9628 88 Lindsay Avenue Dorval, QC H9P 2T8, Canada T (+1 888) 977 4834 www.thecompliancecenter.com Shipping Hazardous Materials by Ground in USA: Initial • July 13-14 – Niagara Falls, NY

Shipping Hazardous Materials by Ground in USA: 1-Day Refresher

• April 20-22 – Geneva • June 29-July 1 – Miami

Professional Skills for DGR Instructors – Categories 1,2,3,6 • • • • •

April 27-May 1 – Geneva May 11-15 – Incheon June 8-12 – Miami June 15-19 – Singapore June 22-26 – Stockholm

Instructional Techniques for DGR (for categories 4, 5, 7, 8, 9, 10, 11, 12) • May 4-8 – Geneva • May 11-15 – Singapore

• June 9 – Niagara Falls, NY

DGR for Auditors and Inspectors

Shipping Dangerous Goods by Ground in Canada: 2-Day Initial

Shipping Lithium Batteries by Air

• April 21-22 – Toronto • June 16-17 – Toronto

Shipping Dangerous Goods by Ground in Canada: 1-Day Refresher • May 6 – Toronto • June 17 – Montreal

Shipping Dangerous Goods by Ground in Canada: 1-Day Initial/ Refresher • April 21 – Vancouver • May 20 – Vancouver • June 23 – Vancouver

Shipping Dangerous Goods by Air: Refresher • May 7 – Toronto • June 10 – Niagara Falls, NY • June 18 – Montreal

GHS Classification

• July 15-18 – Niagara Falls, NY

INTERNATIONAL AIR TRANSPORT ASSOCIATION 800 Place Victoria, PO Box 113 Montreal H4Z 1M1

• June 22-25 – Geneva • May 25-26 – Incheon

Infectious Substances Transport • June 3-5 – Singapore

Infectious Substances Transport – Train the Trainer • April 20-24 – Geneva

Transport of Dangerous Goods by Sea (IMDG) May 4-6 – Singapore LION TECHNOLOGY 570 Lafayette Road Sparta, NJ 07871-3447, USA T (+1 888) 546 6511 www.lion.com Multimodal Hazmat Shipper Certification (49 CFR/IATA/IMDG) • • • • • • •

April 28-May 1 – Kansas City May 4-7 – Chicago May 11-14 – St Louis June 2-5 – Cleveland June 2-5 – Houston June 8-11 – Pittsburgh June 8-11 – Dallas

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• June 15-18 – Detroit • June 16-19 – Cincinnati • July 13-16 – Northern NJ

Hazmat Ground Shipper Certification (49 CFR) • • • • • • • • • • • • • •

April 28-29 – Kansas City May 4-5 – Chicago May 4-5 – Minneapolis May 7-8 – Indianapolis May 11-12 – St Louis June 2-3 – Cleveland June 2-3 – Houston June 4-5 – Rochester, NY June 8-9 – Pittsburgh June 8-9 – Dallas June 15-16 – Detroit June 16-17 – Cincinnati July 13-14 – Northern NJ July 15-16 – Boston

Hazmat Ground Shipper Certification - Recurrent • April 29 – Sparta, NJ

Hazmat Air Shipper Certification (IATA) • • • • • •

April 30 – Kansas City May 6 – Chicago May 13– St Louis June 4 – Cleveland June 4 – Houston June 10 – Pittsburgh

HCB MONTHLY | APRIL 2020

• • • • •

June 10 – Dallas June 17 – Detroit June 18 – Cincinnati July 15 – Northern NJ July 17 – Boston

Hazmat Vessel Shipper Certification (IMDG) • • • • • • • • • •

May 1 – Kansas City May 7 – Chicago May 14– St Louis June 5 – Cleveland June 5 – Houston June 11 – Pittsburgh June 11 – Dallas June 18 – Detroit June 19 – Cincinnati July 16 – Northern NJ

Shipping Lithium Batteries • April 30 – Sparta, NJ

New York Hazardous Waste Management • • • • • •

June 1 – Buffalo June 3 – Syracuse June 5 – White Plains June 8 – Rochester June 10 – Albany June 12 – Long Island

Texas Hazardous & Industrial Waste Management

• May 1 – Dallas • May 6 – Houston

Advanced RCRA Hazardous Waste Management • May 15 – Detroit • June 10 – Baltimore

RCRA Hazardous Waste Management • • • • • • • • • • • • • • • •

April 27-28 – St Louis April 29-30 – Dallas May 4-5 – Houston May 7-8 – Pittsburgh May 11-12 – Cleveland May 13-14 – Detroit May 14-15 – Cincinnati June 1-2 – Portsmouth, NH June 4-5 – Albany June 8-9 – Boston June 8-9 – Baltimore June 11-12 – Philadelphia June 11-12 – Hartford, CT June 15-16 – Northern NJ June 18-19 – Rochester, NY July 13-14 – Williamsburg, VA

RCRA Hazardous Waste Management Refresher • April 28 – Sparta, NJ

TRANSPORTATION SAFETY INSTITUTE

Hazmat Training Division 6500 South MacArthur Boulevard Oklahoma City, OK 73135, USA T (+1 405) 954 4500 www.tsi.dot.gov Air Transportation of Hazardous Materials • July 6-8 – Oklahoma City

Military Airlift of Hazardous Materials (AFMAN) • July 9 – Oklahoma City

Transportation of Hazardous Materials • May 4-7 – Oklahoma City • June 8-11 – Oklahoma City

Transportation of Hazardous Materials (Recurrent) • May 5-7 – Oklahoma City • June 9-11 – Oklahoma City

Performance Oriented Packaging • May 19-21 – Oklahoma City

Explosives Transportation • June 30-July 2 – Oklahoma City

Cargo Tank Regulatory Compliance • April 27-30 – Oklahoma City

COURSES & CONFERENCES 41

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months. The following list is correct as of mid-March but readers should check dates carefully as some of these may also have been rearranged and some date for postponed events may also have changed.

MAY RPMASA Dangerous Goods Transport Conference May 20-21, Durban Conference on transport and cargo handling safety and regulation http://rpmasa.org.za/ FECC Congress May 27-29, Milan Annual meeting of the European Association of Chemical Distributors www.fecc-congress.com

JUNE IAFC Hazmat Conference June 4-7, Baltimore Annual international event for response teams www.iafc.org/events/hazmat-conf ILTA June 8-10, Houston 40th annual operating conference and trade show of the International Liquid Terminals Association www.ilta.org SIL Barcelona June 9-11, Barcelona Annual international logistics expo and congress www.silbcn.com/en/index.html Petrochemical Supply Chain and Logistics June 10-11, Houston Conference on optimising polymer and liquid petrochemical supply chains www.petchem-update.com/petrochemicalsupplychain/ Dangerous Goods Operations & Hazardous Substances 2020 June 15-17, Melbourne Workshop on chemical safety and dangerous goods compliance www.marcusevans-conferences-australian.com

12th annual meeting for LNG buyers and sellers https://asiapacific.cwclng.com/ International Transport & Logistics Week (SITL) June 23-26, Paris Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en-gb.html

JULY Flame July 6-7, Amsterdam 26th annual conference on natural gas and LNG in Europe https://energy.knect365.com/flame-conference/ Intermodal Asia July 14-16, Shanghai Seventh annual exhibition for the Asian intermodal sector www.intermodal-asia.com NISTM July 27-29, Orlando National Institute for Storage Tank Management’s 22nd annual international aboveground storage tank conference and trade show www.nistm.org

AUGUST Expo Logisti-K August 11-14, Buenos Aires 14th international exhibition for logistics technology and equipment www.expologisti-k.com.ar/en/ Oil & Gas Africa 2020 August 13-15, Nairobi Ninth annual exhibition for the upstream and processing sectors in east Africa www.expogr.com/kenyaoil/

Transport Logistic China June 16-18, Shanghai Ninth international exhibition for logistics, telematics and transport www.transportlogistic-china.com

ChemEdge August 16-19, Indianapolis Conference for the North American chemical distribution sector www.nacd.com/education-meetings/meetings/ chemedge/2020-chemedge/

World LNG Series: Asia Pacific Summit June 15-18, Kuala Lumpur

UKIFDA Expo 2020 August 18-19, Liverpool

Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) ukifdashow.co.uk Chemspec India August 19-20, Mumbai Exhibition for the fine and speciality chemicals sectors, incorporating ChemLogistics India www.chemspecindia.com PPC Fall Meeting August 30-Sept 1, Nashville Semi-annual meeting of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php AHMP National Conference August 30-Sept 2, Omaha Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/page/National_Conference

SEPTEMBER LogiPharma September 1-3, Nice Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com PGLC 2020 September 3-4, Barcelona Second annual Petrochemical Global Logistics Convention www.pglc.biz/ LogiChem US September 7-9, Houston Supply chain meeting for senior-level executives in North America http://logichemus.wbresearch.com/ Gastech 2020 September 8-10, Singapore International conference and trade show for the LNG and LPG industries www.gastechevent.com LogiChem September 8-10, Rotterdam Chemical supply chain and logistics conference http://logichem.wbresearch.com/

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TRAINING TOOLBOX COMPLIANCE • LABELMASTER’S RHONDA JESSOP* ENCOURAGES COMPANIES TO LEVERAGE TECHNOLOGY TO IMPROVE TRAINING PROVISION AND ENHANCE PROFITS AND SAFETY SHIPPING DANGEROUS GOODS (DG) and hazardous materials (hazmat) has become highly complex and increasingly challenging. The sheer number of items now classified as ‘hazardous’ makes the safe, secure movement of these goods more important than ever. But, when coupled with ever-evolving and expanding shipping regulations, ensuring DG shipping compliance becomes a moving target. In today’s demanding environment, organisations cannot afford to find themselves non-compliant and risking serious operational, financial and environmental ramifications as a result. This is why DG training is so crucial. Unfortunately, for many organisations, their

training is insufficient and ineffective. Addressing these issues requires a more strategic and engaging approach to training and learning – including the use of e-technology and virtual reality. TRAINING TODAY Training in the handling and shipping of DG is critical to ensuring a safe and compliant supply chain, which is why it’s mandated by global regulatory agencies. So, it’s no surprise that, according to Labelmaster’s 2019 Dangerous Goods Confidence Outlook survey, almost 76 per cent of DG professionals use training as one of their primary sources of

information and guidance to keep current with the latest DG regulations. But just because something is required, doesn’t necessarily mean it’s effectively implemented. In fact, 25 per cent of respondents to a 2018 Labelmaster survey felt their company’s DG training did NOT adequately prepare people within the organisation to comply with DG shipping regulations. One of the major barriers to effective DG training is that many organisations view it as simply a ‘necessary evil’. Consequently, a minimal effort is directed towards training - enough to satisfy regulatory requirements, and not much more. Another barrier is that many companies lack the necessary infrastructure to put forth value-added training that supports compliance across the supply chain in the first place. As a result, the training employees do receive can be ineffective and insufficient to add real business value or drive compliance success, leaving organisations vulnerable to putting their brand and customer relationships at risk. In fact, 15 per cent of survey respondents said “insufficient or ineffective training” is their greatest compliance challenge and 53 per cent ranked it in their top three. Therefore, it’s not surprising that, when asked how they would prioritise additional investment from senior leadership, 33 per cent of DG professionals surveyed said they would put more resources toward improving employee training. THE MODERN METHOD But reinventing employee training as a growth opportunity versus a box to be checked as ‘completed’ can be a challenge. The key to improving DG compliance training across the supply chain lies in creating impactful, engaging content presented on interactive, intuitive platforms. This makes learning easy and convenient, and adds real business value. One of the biggest assets an organisation can employ in the quest to improve the quality and interactivity of hazmat compliance training is an online e-learning platform.

HCB MONTHLY | APRIL 2020

COURSES & CONFERENCES 43

Online training is not new - it’s been embraced across many industries for years - but it can be especially useful in helping employees digest complicated DG shipping regulations and procedures in a more convenient, interesting and memorable manner. Specific benefits of embracing an e-learning platform include: - Cost savings: companies spend less by eliminating the travel costs associated with bringing employees to a centralised, in-person training location - Greater productivity: anytime, anywhere access to training means employees spend less time away from the workplace and away from performing job tasks - Faster onboarding: DG organisations can experience high employee turnover; online learning makes it easier to train new workers quickly and properly, without waiting until enough learners fill a physical training session - Employee convenience: Workers get to follow the training materials at their own pace, and can even re-review as needed, since e-learning is on-demand and accessible 24/7 - Interactivity: Online training content is flexible, scalable and customisable to the specific compliance requirements of each worker’s role; and because it’s interactive and can encourage learning through quizzes, games and role playing, it encourages greater retention. IMMERSIVE LEARNING One particular type of e-learning - Virtual Reality (VR) - is gaining traction as way to overcome many online learning challenges and better engage employees. VR, and its close counterpart the 3D online experience, creates an immersive environment that

 E-LEARNING OFFERS BOTH FLEXIBILITY AND CONSISTENCY, ENSURING A COST-EFFECTIVE AND TIME-EFFICIENT WAY OF DELIVERING THE TRAINING THAT IS REQUIRED BY NATIONAL AND INTERNATIONAL REGULATION

mirrors an employee’s actual workplace, leading to a more effective, realistic training experience than any book or PowerPoint slide can provide. This heightened interactivity can reinforce a faster understanding of training content, and caters to how younger generations are already consuming content. Just how popular has VR training become? Major companies like Walmart, Chevron and Verizon are now using it to train employees, with beneficial results. In fact, another major company - Tyson Foods - has leveraged VR for safety training and as a result reduced injuries and illnesses by 20 per cent. Whether an organisation opts to conduct hazmat shipping compliance training in a real-world class environment, as an e-learning curriculum that incorporates VR, or a hybrid of both, it must add business value and support engagement no matter what. The following are considerations that can lead to training success when developing or revamping the organisation’s training approach: 1. E-learning technology platforms reduce time and costs: - Changes in regulatory content can be updated immediately - Training recorded can be accessed quickly, ensuring clean-up-to-date records are available whenever needed - Training costs and goals are easier to plan and monitor - Training content can be shared easily and

is consistent across supply chain partners. 2. E-learning platforms make it easier to develop consistent content that is relevant to a company’s unique needs: -A company’s own policies, procedures, industry, products and suppliers are easily integrated into the materials - Functionality, tasks and examples unique to the company’s situation can be added - Adult-based learning principles are supported through a methodical approach. LEADING THE WAY Labelmaster works closely with both small and large companies to ensure that their customers’ training investment is adding real business value. Whether it’s leading in-person classroom training at the customer’s location, offering nearly a dozen online courses or designing a hybrid offering that combines both, customer feedback is very positive. In fact, Labelmaster’s virtual reality training programs are currently in development. To help organisations figure out who needs what training, Labelmaster has developed a ‘Training Decision Tree’, available at www.labelmaster.com/content/files/images/ pdfs/who-needs-dg-training.pdf. Further information on Labelmaster’s complete suite of training options can be found at www. labelmaster.com/services/training. *Rhonda Jessop is director of global learning at Labelmaster.

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INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

17/1/20

Vehicle Type

Substance

Details

Source

East Huntingdon, road tanker butane Pennsylvania, US

Three people were injured, one seriously, by explosion reportedly during maintenance work on LPG tanker at Grammer Industries garage; resulting fire led to roof collapse, sparking second explosion; OSHA investigating

TribLive

19/1/20

Barstow, trucks chemicals California, US

At least two people were killed when two semi-trucks collided on SB 15 Freeway; one truck was carrying hazardous chemicals, some of which spilled; pictures showed at least one vehicle on fire

NBC News

20/1/20

Tamra, road tanker gas Israel

Four people badly injured by explosion in road tanker, possibly delivering gas (LPG?) to ‘gas stop’ in northern Israel;explosion caused damage to nearby buildings; police isolated scene

YNet News

23/1/20

Lima, road tanker LPG Peru

Transgas tanker with 10,000 litres LPG exploded in busy area of capital, reportedly when hose detached as it went over speed bump; 8 killed in blast, more than 20 others died of burn injuries; several houses destroyed

Manila Standard

26/1/20

Um Kedada, road tanker fuel Sudan

Two people were killed when fuel tanker exploded after colliding with truck in North Darfur region; no further details in local press reports

Radio Dabanga

26/1/20

Charlotte, road tanker fuel N Carolina, US

Tank truck overturned after being struck by another vehicle that ran a stop sign; major spill of unspecified fuel from tanker; road closed, people advised to avoid area; tanker driver injured in crash

1/2/20

Gwinnett county, road tanker Georgia, US

Tank truck with 8,500 gal (32.2 m³) fuel crashed into car that was stopped on I-85 after earlier accident; tanker overturned, exploded; two killed; nearby businesses, other motorists evacuated from area

AJC

4/2/20

Ajman, road tanker — UAE

Three workers were injured by explosion during welding work on road tanker in auto repair shop in industrial area; sparks from welding believed to have ignited gases in tank

The National

6/2/20

nr Guernsey, freight train crude oil Sask., Canada

31 tank cars in 104-car CP oil train derailed, close to site of similar incident in December; at least 12 cars caught fire; government subsequently introduced speed restrictions; TSB investigating incident

CTV

6/2/20

Ojo, road tanker diesel Lagos, Nigeria

Road tanker with 11,000 litres diesel caught fire, apparently after rear suspension collapsed at high speed; fire crews attended promptly; no casualties reported

Vanguard

7/2/20

Vadodara, road tanker solvent Gujarat, India

Road tanker overturned at crossroads, causing 7,000 litres of 25,000-litre load to spill; driver absconded; cargo described as ‘isobutyl benzene’; severe traffic disruption

Times of India

7/2/20

Los Angeles, road tanker fumigant California, US

Tank truck carrying 560 gal (2,120 litres) water and soil fumigant overturned in Hollywood Hills area after a collision, spilling some cargo; Mulholland Drive closed for cleanup; driver suffered minor injuries

ABC

8/2/20

Khanbela, road tanker acetic acid Punjab, Pakistan

Road tanker with 34 tonnes acetic acid overturned on M-5, reportedly after steering locked; some leak of acid but spill was contained; stretch of motorway cordoned off while heavy equipment arrived to right tanker

Dawn

13/2/20

Owerri, road tanker gasoline Imo, Nigeria

Road tanker exploded after hitting road barrier on Owerri-Aba expressway; driver killed, two others in cab escaped with injuries; fire crews called in assistance from nearby airport to deal with blaze

Vanguard

13/2/20

nr Draffin, freight train ethanol Kentucky, US

CSX train derailed in Pike county, following mudslide on track; some tank cars with ethanol fell into river, causing closure of water intakes downstream; two crew were cut off by fire and were rescued by boat

WSAZ

14/2/20

nr Idanha, road tanker Oregon, US

Space Age Fuel tank truck with 10,600 gal (40 m³) fuel crashed on Highway 22, spilling at least half its load to North Santiam River; road closed for several days; hazmat crews removed rest of fuel from cargo tanks

Statesman Journal

gasoline, diesel

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Details

Source

20/1/20

off Oostende, Life Passion iron ore Belgium

Bulk carrier (37,330 dwt, 2018) with cargo of iron ore for Ghent, was kept at anchorage due to risk of explosion from hydrogen caused by self-heating; vessel had already suffered small explosion, one injured

FleetMon

23/1/20 Arabian Sea Reem 5 —

Bitumen tanker (1,900 dwt, 1983) reported flooded engine room; crew abandoned ship; tanker drifted but was later reported under control off Sharjah

FleetMon

26/1/20

Houston, Texas, US

Solvang’s LPG tanker newbuilding (21,300 m³, 2019) ran aground in cargo after straying off fairway leaving Houston; refloated the same day with tug assistance

FleetMon

26/1/20

nr Luling, Creppel Louisiana, US

Tug pushing two barges loaded with sulphuric acid collided with another tug in Mississippi River; Creppel sank, other tug and one barge damaged, releasing acid vapour; 3 crew missing

RSOE

HCB MONTHLY | APRIL 2020

Vessel

Substance

Clipper LPG Eirene sulphuric acid

SAFETY 45

MARINE/INLAND WATERWAY INCIDENTS (CONTINUED) Date

Location

Vessel

Substance

Details

Source

28/1/20

Martha’s Vineyard, Massachusetts, US

Iver petroleum Prosperity

Tanker (37,450 dwt, 2007) with cargo of petroleum products, collided with fishing boat Edna May 25 nm south of Martha’s Vineyard; some hull damage to tanker; USCG investigating collision

Shipwreck Log

29/1/20

off Sharjah, Zoya 1 — UAE

Massive fire broke out on tanker (300,500 dwt, 1996) being prepared for final voyage for demolition after two years in layup; around 56 people onboard at the time; four were killed in explosion, others injured

Gulf News

6/2/20

Split, Rinella M — Croatia

Product tanker (40,440 dwt, 2006), after discharge of cargo from Novorossiysk, broke moorings in high winds and grounded in harbour waters; divers surveyed hull; had to wait for better weather before refloating

FleetMon

9/2/20

Port Said, Egypt

Tanker (159,100 dwt, 2003), in cargo, grounded at port entrance, presumably having strayed off fairway due to engine failure; tanker was refloated next day, towed to deeper water for inspection

FleetMon

10/2/20

Fuzhou, Gas Prodigy propylene Fujian, China

Leak found in pump flange during preparations to offload 2,400 tonnes propylene from gas tanker (5,000 m³, 2003); tanker was towed to outer anchorage for repair; cargo later offloaded to barge; still at anchor in March

Splash 247

Astro crude oil Perseus

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

Details

Source

14/1/20

Tarragona, Spain

chemical plant

ethylene oxide

One killed, eight injured by massive explosion at Iqoxe plant in Torreforta district; blast caused building to collapse, threw debris onto nearby businesses; reported that maintenance workers were on site at the time

Euronews

19/1/20

Abule Egba, pipeline Lagos, Nigeria

petroleum products

At least five people were killed, many more injured, by two explosions on NNPC pipeline in Lagos suburbs; fuel thieves blamed for tapping into line; several houses destroyed; line back in service quickly

Energy Voice

24/1/20

Houston, factory propylene Texas, US

Massive explosion, fire in Westbranch neighbourhood damaged nearby buildings, killed two workers; fire crews found leak in 2,000-gal propylene tank at Watson Grinding & Manufacturing factory

Houston Chronicle

28/1/20

Lahore, Pakistan

11 people killed in series of explosions as cylinders ignited, building caught fire in Ferozewala district; most fatalities resulted from collapse of roof, including a family living above

Samaa

perfume factory

gas cylinders

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CATCH A COLD

that might help evaluate the thermal safety performance of means of containment for LNG and CNG under fire conditions.

CRYOGENICS • HOW WILL TANK CARS WITH LNG OR CNG BEHAVE IN AN ACCIDENT? THE FEDERAL RAILROAD ADMINISTRATION IS TRYING TO FIND OUT BEFORE ONE HAPPENS Increasing availability of liquefied gases in the US, primarily resulting from the exploitation of shale gas reserves and higher availability of natural gas and natural gas liquids (NGLs), is generating additional demand for cryogenic transport services. Ensuring safety in this developing business will be critical if political and public opinion is to allow its growth, which will be one way to help the country with its eventual transition away from traditional fuels to lower carbon fuels based on natural gas. One area that has been explored is the movement of LNG by rail, not least since the railroad industry itself is interested in using

Administration (PHMSA) published a notice of proposed rulemaking (NPRM) in October 2019 proposing changes to the Hazardous Materials Regulations (HMR) in Title 49 of the Code of Federal Regulations (49 CFR) so as to permit the transport of LNG in rail tank cars. PHMSA has also issued special permits to allow the transport of compressed natural gas (CNG) by road, although there have been at least two incidents involving such transport, leading to calls for it to be restricted. The Federal Railroad Administration (FRA) has also been doing some work. Noting that the railroad industry is actively working on

SET IT ON FIRE Research in this area began in September 2016, when FRA engaged the Southwest Research Institute (SwRI) to fire-test a portable tank filled with liquefied nitrogen and demonstrate the performance of the pressure relief valve (PRV) system installed on the tank. Tests showed that the PRVs opened and were able to relieve the pressure in the tank fast enough to avoid a boiling liquid expanding vapour explosion (BLEVE) event. The fire test generated a great deal of data to help understand how the fire exposure affects the internal and external heating of the tank, which will inform future computer models to predict performance in different types of tank and different fire scenarios. The next phase of the project will include a fire text with a tank filled with LNG; this will provide additional validation data for

gas-based fuels for its locomotives. The US Pipeline and Hazardous Materials Safety

plans to move LNG and CNG in bulk by rail, FRA says that the safety performance of the tank cars involved in such transport under derailment-induced fire conditions has not been verified. This is a cause for concern, FRA says. As such, it is interested in developing methods, both analytical and experimental,

modelling calculations. FRA has published the initial report on the SwRI test project, which presents the following conclusions: - The temperature of a tank will greatly influence the failure pressure of that tank. The failure pressure for a heated tank has

 RAILROADS ARE ALREADY EXPERIMENTING WITH USING LNG AS FUEL FOR THEIR LOCOS

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SAFETY

been shown to be much less than that of a tank at ambient temperature. Additional effort should be applied to assessing the potential failure of a tank under elevated temperatures. -Preliminary modelling suggests that more work is needed to accurately characterise the thermal insulation properties as well as vacuum retention capabilities of the annular space under thermal loading. -The introduction of phase change into the modelling will provide a better understanding of the various mechanisms involved during the heating process. -Studying the effect of wind, flatcar geometry and burner size on the heat flux to the tank should be extended so as to better understand the effects of conditions that may be present at the physical test.

HIT IT HARD In a separate project, FRA has been working with the Transportation Technology Center (TTC) to conduct a full-scale shell impact test on a DOT-113C120W (DOT-113) tank car. This specification is a tank-within-a-tank designed for the transport of certain cryogenic materials and comprises an outer tank of carbon steel and an inner tank of stainless steel, separated by insulation and vacuum to keep the lading cold. In the test, carried out in November 2019, the shell of the outer tank was struck by a 297,000-lb (135-tonne) ram; the tank was filled with water to 82.4 per cent of its capacity, sealed and pressurised with air to an initial test pressure of some 50 psig (3.45 bar), representing the mid point of the allowable pressure and outage range

proposed in PHMSA’s NPRM. The impact occurred at 16.7 mph and punctured both the outer and inner tanks. Material samples have been taken from both the inner and outer tanks and will be subjected to finite element analysis (FEA). The test data, photos and videos are to be reviewed and compared with the FEA in an effort to validate the model. Test results will also be compared with corresponding measurements from earlier tank car impact tests to understand the similarities and differences between different tank cars under similar impact conditions. FRA also plans to carry out an FEA to investigate the impact response of the DOT-113 tank when loaded under service conditions, i.e with cryogenic lading and its influence on inner tank material properties.

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COMMAND A BOND BARGES • A RECENT EXPLOSION ABOARD A TANK BARGE HAS HIGHLIGHTED THE IMPORTANCE OF ENSURING EFFECTIVE BONDING OF BLOWERS DURING GAS FREEING OPERATIONS THE US COAST Guard (USCG) has issued a safety alert, reminding those who are involved in cargo tank cleaning and gas freeing operations to ensure that they should follow the recommendations outlined in its earlier safety alert 10-14 and, in particular, that it is critically important to verify the bonding wire or strap on blowers and fans. The alert comes as an interim measure as part of a current USCG investigation of a recent incident, involving an explosion due to improper bonding of a blower, that caused a breach of the cargo tank and the bulkhead between cargo tanks, as well as damage to the external framing of a tank barge. USCG highlights that the process of gas freeing introduces additional hazards. At this time, cargo tank manway and butterworth openings are opened and the flammable vapours in the cargo tank are removed using mechanical air moving equipment. As outside air is introduced into the cargo tank, the vapour/air mixture within the tank and near the tank openings will fall into the flammable range. If the air moving equipment used to gas free the cargo tank is not the proper type, is not properly maintained, or is not properly electrically bonded and secured to the vessel’s structure, static electricity generated by the air moving equipment can discharge as an electric arc and ignite the flammable vapour/air mixture.

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During its recent investigation, USCG found pneumatic blowers that had either missing or improperly maintained bonding wires. RESPONSIBILITY ALL ROUND Pending the final report of its investigation, USCG “strongly encourages” all personnel working at marine facilities or onboard vessels to follow procedures and practices that meet all the applicable requirements of 33 CFR Part 154 and 29 CFR Part 1915 – any workers who are not mariners with a “substantial connection” to the vessel under repair fall under the jurisdiction of the Occupational Safety and Health Administration (OSHA). All personnel should understand that the proper bonding of blowers and fans used in cargo tank cleaning and gas freeing operations is a federal requirement under 29 CFR §1915.13(b)(11). They should be specifically trained on how to properly secure blowers/fans in place to prevent movement/ rattling due to vibration and how to properly bond blowers/fans to the vessel/barge

structure (e.g. ensure bonding wire/strap is tightly secured to the fan/blower housing and that the clamp for the bonding wire/strap is secured to the vessel structure on bare metal, penetrating any paint coatings). Simply touching/resting the blower/fan to bare metal is not an adequate means of bonding. Policies and procedures should include a requirement to inspect all air moving equipment prior to their first use each day. All attached accessories, such as cones and ducting, must be tightly connected; bonding wires and straps must be undamaged, free of corrosion and securely fastened to the housing of the blower or fan. Clamps used with the bonding wire/strap should also be free of corrosion, with adequate tension to ensure a tight grip/connection when clamped to the vessel/barge structure. Loose, poor and corroded connections greatly increase the risk of an electric arc due to static discharge. USCG also advises that site safety supervisors or other personnel with overall safety responsibility conduct a visual inspection of each blower or fan to ensure that these provisions have been complied with, and that these checks should be completed before the blowers/fans are activated.

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LOOSE CHANGE

The session was the second of four planned for the current regulatory biennium, which will result in the adoption this coming December by the parent Committee of the changes that will appear in the 22nd revised edition of the UN Recommendations on the Transport of Dangerous Goods (alternatively known as the UN Model Regulations or the ‘Orange Book’). The second meeting of the biennium is traditionally one that covers a lot of work and the December session was no exception, with the experts faced by a weighty agenda.

series H, operating under the International Group of Experts on Unstable and Energetic Substances (IGUS) working group on Energetic and Oxidising Substances (EOS). Test series H contains test methods for the determination of self-accelerating decomposition temperature (SADT) and self-accelerating polymerisation temperature (SAPT). A draft was provided for a thorough revision of section 28.1 of the UN Manual of Tests and Criteria. The Sub-committee took note of the work done and invited experts to provide any comments in writing to the European Chemical Industry Council (Cefic) so that the proposal can be revised accordingly and presented at the next session in an official document. Cefic had also brought along a formal proposal to deal with the issue of determining the control temperature of samples of energetic substances, as required by 2.4.2.3.4

EXPLOSIVES ISSUES Kicking off with discussions on Class 1 substances and articles, the experts heard from the chairman of the Working Group on Explosives about the ongoing work of the ad hoc working group on the revision of UN test

and 2.5.3.4 of the Manual of Tests and Criteria, when the SADT is not yet available. At the previous session, Cefic had offered the use of differential scanning calorimetry (DSC) as a possible solution, particularly as this is already referenced in the Manual of Tests and Criteria. Its paper offered a new flowchart to

INTERNATIONAL • THE UN EXPERTS MADE A FEW CORRECTIONS TO THE CURRENT MODEL REGULATIONS AS THEY MADE THEIR WAY THROUGH A LONG LIST OF PROPOSALS FOR AMENDMENT The UN Sub-committee of Experts on the Transport of Dangerous Goods (TDG) held its 56th session this past 4 to 10 December. Duane Pfund (US) acted as chair, with Claude Pfauvadel (France) sitting as vice-chair. The session was attended by experts from 18 countries and representatives from the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the Food and Agriculture Organisation (FAO), the World Health Organisation (WHO) and 20 non-governmental organisations.

 THE EXPERTS’ LATEST AMENDMENTS WILL FILTER DOWN TO THE MODAL REGULATIONS IN 2023

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help with the determination of temperature control requirements and a new 20.3.4 in the Manual of Tests and Criteria on the thermal stability of samples and temperature control assessment for transport. It was stressed that any alternative tests should only be applied when it is not possible to meet the requirements of test series H. Pending final review and recommendation for final adoption by the Working Group on Explosives at the next session, the proposals, with some amendment, were adopted between square brackets. CLASSIFICATION AND PACKAGING China observed that, when the entry for UN 3527 Polyester resin kit, solid base material was added to the Dangerous Goods List in the 19th revised edition of the Model Regulations, it was assigned ‘E0’ in column (7b) of the List, following the example of the existing entry, UN 3269, for kits with liquid

base material. However, China noted that these kits are always in small packages and the amount of dangerous goods is limited. Having access to the excepted quantity provisions would be a help to shippers without an impact on safety. It was pointed out that the ‘E0’ code had been intentionally assigned to UN 3269 but it was also noted that special provision 340, which applies to both entries, contains specific provisions for determining the excepted quantity limits applicable to the substances contained in these kits. The Sub-committee was minded to agree to China’s proposal and decided to replace ‘E0’ by “See SP 340 in Chapter 3.3” in column (7b) for both UN 3269 and 3527. Switzerland returned with a topic that had failed to find a consensus at the last session, viz the transport of rigid plastics intermediate bulk containers (IBCs) after the date of expiry of the last periodic test or inspection for the

disposal or recycling of their contents. Its formal proposal was to amend 4.1.2.2 by changing the existing text to refer only to metal IBCs and to add a new paragraph with alternative provisions applicable to rigid plastics and composite IBCs. However, the Sub-committee confirmed that the existing provisions in 4.1.2.2 also apply to non-metal rigid IBCs transported after the date of expiry of their period of use and the expert from Switzerland withdrew the proposal. The Council on Safe Transportation of Hazardous Articles (COSTHA) followed up on earlier discussions seeking to incorporate in the UN Model Regulations the provisions found in SP 653 in ADR, which provides an exception for UN 1013 Carbon dioxide; its paper noted that this special provision has been in place for more than ten years and that other jurisdictions, including the US, Canada and Israel, have subsequently authorised the alternative markings used in ADR. Views remained divided, however. Some experts considered that, since the transport conditions depend to a large extent on the mode of transport (especially in air transport), the current variation between the Model Regulations and ADR, which covers only road transport, are justified. Furthermore, some of the approvals issued include additional provisions. Overall, it was felt that a similar approach to that in ADR could be justified for the transport of carbon dioxide by land and sea and that this would increase harmonisation. COSTHA withdrew the proposal but may return with a revised version in light of the comments made. The International Air Transport Association (IATA) raised a question that had been put to it by one of its member airlines. A clock had been offered for transport under UN 3363 Dangerous goods in apparatus; it contained a small sealed capsule containing a mixture of gases, including UN 1037 Ethyl chloride.

 CHINA HAS ACHIEVED SOME RELIEF FOR THE TRANSPORT OF POLYESTER RESIN KITS

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This is not permitted under the limited quantity provisions, although the sealed capsule containing a Division 2.1 gas is classified as UN 2037 Gas cartridge, which can be shipped as limited quantity. Further, the shipper had determined that the clock could be classified as UN 3363 based on the wording of special provision 301, which places no restriction on the dangerous goods that may be in the articles other than they should be authorised for transport as limited quantities. Packing instruction P907 is

assigned to UN 3363 and refers only to gases of Division 2.2, but is not explicit that gases of Division 2.1 are not permitted. IATA felt that this was not the intent, given the prohibition on explosives in articles containing dangerous goods, nos, as stated in 2.0.5.4. The Sub-committee confirmed that devices containing Division 2.1 gases cannot be assigned to UN 3363 and considered that the text of SP 301 is clear in this respect. On the other hand, it was felt that SP 301 could be amended to clarify that UN 3363

cannot be used for articles that are already assigned a proper shipping name. IATA will submit a revised proposal for the next session. COSTHA came with another paper describing what it saw as a problem. Special provisions 220, 274 and 318 each require the proper shipping name to be supplemented with further details about the contents and apply largely to nos entries. COSTHA had identified 30 entries in the Dangerous Goods List that include ‘nos’ in their proper shipping name but are not assigned one of the three special provisions. COSTHA felt that this creates confusion for shippers and carriers who may be trained or accustomed to associate the use of ‘nos’ entries with the need for a technical name for marking and documentation purposes. It provided a list of the 30 entries and proposed that ‘nos’ should be struck out. There was no support for the idea; it was pointed out that these generic ‘nos’ entries had proven very useful to prompt shippers to consider whether a more specific entry is available. Furthermore, they have value in terms of emergency response and enforcement personnel. The Sub-committee felt that the deletion of ‘nos’ from a proper shipping name, if needed at all, should only be made on a case-by-case basis. In light of the comments, COSTHA withdrew the proposal. Belgium questioned the classification of UN 1891 Ethyl bromide, currently Division 6.1, packing group II with no subsidiary hazard. Under the EU’s Classification, Labelling and Packaging of Chemicals (CLP) Regulation, this substance meets the criteria for category 4 of both acute oral toxicity and toxicity by inhalation, while also classifying as a category 2 flammable liquid. Translated for transport purposes, this seems to point to a Class 3 substance with a Division 6.1 subsidiary hazard.

 THE USE OF RIGID PLASTICS IBS HAS BEEN CLARIFIED FOLLOWING A PAPER FROM SWITZERLAND

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The Sub-committee agreed that the classification of UN 1891 should be reconsidered and, based on the data provided, several experts expressed support for the proposal to reclassify ethyl bromide as flammable (Class 3, packing group II). It was noted, however, that more data was needed to assess toxicity by inhalation that could trigger classification as toxic (Division 6.1). Some experts indicated that it would be useful to know the rationale or the data supporting the original assignment to Division 6.1 at the time UN 1891 was first introduced in the Dangerous Goods List. No change was made as yet, pending an official document at the next session. The Secretariat informed the Sub-committee that, when the revision of the renumbered 6.3.5.3.2.2 on the drop orientation for infectious substances packagings was adopted at the 53rd session, part of the amendment was overlooked. The Sub-committee agreed to adopt them now as corrections to the 21st revised edition of the Model Regulations. They involve the insertion of “or a jerrycan” after “ a drum”, the replacement of “chime” with “edge” in sub-paragraphs (a) and (b), and the replacement of “flat on the side” with “flat on the body or side” in sub-paragraph (c). Switzerland queried the scope of the penultimate sentence in packing instruction P903(5), having noted some difficulties when translating the text into other languages. It offered a revised version to make things clearer, which was adopted by the Subcommittee. The sentence will now read: When intentionally active, devices such as radio frequency identification (RFID) tags, watches and temperature loggers, which are not capable of generating a dangerous evolution of heat, may be transported in strong outer packagings. The Responsible Packaging Management

requirements of the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation. RPMASA reported that more than 200,000 tonnes of cobalt dihydroxide is transported annually and it has traditionally been classified under UN 3077 Environmentally hazardous solid, nos, PG III and shipped in flexible IBCs. Under REACH it is now a Division 6.1 toxic by inhalation substance of PG I. The joint paper noted that cobalt dihydroxide has no high-consequence physical transport hazards and it has been shipped in large quantities for more than 40 years, initially as non-hazardous and then under Class 9, with no recorded accidents, incidents or health issues. There is also concern that other fine powders may be reclassified. An informal lunchtime meeting suggested that, pending a permanent solution, assignment to UN 3288 Toxic solid, inorganic, nos could be used. It was also noted that new designs of flexible IBC are coming onto the market that meet PG I specifications, and this has been brought to the attention of the Joint Meeting of RID/ADR/ADN Experts. A range of proposals

Association of Southern Africa (RPMASA), in collaboration with Cefic and the International Confederation of Plastics Packaging Manufacturers (ICPP), returned to a topic it had brought up at the previous session, namely the drastic reclassification of cobalt dihydroxide as a result of work to meet the

and discussion points were offered in the joint paper. There was general support from the Sub-committee for the need to address the classification of cobalt dihydroxide powder and other similar compounds in powder form. After further comments, RPMASA invited experts to join in the intersessional work with a view to

“THE SECOND MEETING OF THE BIENNIUM IS TRADITIONALLY ONE THAT COVERS A LOT OF WORK”

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making a formal proposal at the next session. Germany also followed up on discussions at the previous session, returning to the need to address the transport of transformers pressurised with nitrogen or other gases. Thus far, transformers have been transported by sea under UN 3363, Class 9; however, as these transformers are not gas-tight, a small quantity of gas escapes and is replenished constantly from a gas cylinder through a pressure regulator. This will not be possible after 1 January 2020, when such transformers will fall under UN 3538, Division 2.2; while the applicable packing instruction does not require the transformer to be gas-tight, the valves of the gas cylinder will have to remain closed during transport. Germany proposed a new special provision to deal with the situation. Following an exchange of views, it was decided that an informal working group

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should be convened to revise the proposal. After further refinements and changes, a text was deemed acceptable and a new special provision was adopted: 396 Large and robust articles may be transported with connected gas cylinders with the valves open regardless of 4.1.6.1.5 provided: (a) The gas cylinders contain nitrogen of UN 1066 or compressed gas of UN 1956 or compressed air of UN 1002; (b) The gas cylinders are connected with the article through pressure regulators and fixed piping in such a way that the pressure of the gas (gauge pressure) in the article does not exceed 35 kPa (0.35 bar); (c) The gas cylinders are properly secured so that they cannot move in relation to the article and are fitted with strong and pressure resistant hoses and pipes; (d) The gas cylinders, pressure regulators,

piping and other components are protected from damage and impacts during transport by wooden crates or other suitable means; (e) The transport document includes the following statement “Transport in accordance with special provision 396”; (f) Cargo transport units containing articles transported with cylinders with open valves containing a gas presenting a risk of asphyxiation are well ventilated and are marked in accordance with 5.5.3.6. Another paper from COSTHA addressed an innovation in fire suppression systems, which disperse fine particles using an explosive initiator. These are being transported around the world but their classification is often challenged as they contain a small amount of Division 1.4 explosive. COSTHA’s paper explained their use in a number of applications and their recognition by the National Fire

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Protection Association. It felt that a new entry was needed in the Dangerous Goods List, along with a special provision, to explain how to transport them safely. The Sub-committee decided to refer the matter to the Working Group on Explosives, while COSTHA and the expert from France led a working group in parallel to plenary to consider the available options. After more discussion, COSTHA offered to work with interested experts to refine its proposals and submit an official document for the next session. ELECTRIC STORAGE SYSTEMS The European Association for Advanced Rechargeable Batteries (Recharge) and the Rechargeable Battery Association (PRBA) returned with a formal proposal following discussion at the previous two sessions on the applicable tests for ‘assembled batteries’ in 38.3.3(g) of the Manual of Tests and Criteria. This applies in particular to the assembly and maintenance of large assembled batteries used for electric vehicles for the automotive or railways industry or for energy storage systems requiring the transport of parts of these large batteries. Although these parts of batteries can be large, they may not be equipped with battery overcharge protection, as these safety components are now often

 PROVISIONS FOR THE TRANSPORT OF DATA LOGGERS HAVE BEEN CLARIFIED

provided for in the hosting vehicle, equipment or battery. On a vote, the Sub-committee approved the change. The following text is added to the end of the current 38.3.3(g): For an assembled battery not equipped with overcharge protection that is designed for use only as a component in another battery, in equipment, or in a vehicle, which affords such protection: - the overcharge protection shall be verified at the battery, equipment or vehicle level, as appropriate, and - the use of charging systems without overcharge protection shall be prevented through a physical system or process controls. In addition, in the last paragraph of 38.3.3(d), “, vehicle” is added after “another battery”. France reported on the work of the informal working group on hazard-based classification of lithium batteries and cells, which had met in Arlington, Texas in early October 2019. That meeting reviewed the latest round of laboratory tests and discussed how these should be taken forward. Subsequent to follow-up testing, the working group plans to meet again in mid-May. The Sub-committee invited the expert from France to provide an update at its next session. Quoting extensive test results and citing earlier submissions from PRBA, China proposed to add a provision limiting the state-of-charge for new large lithium ion cells and batteries offered for transport. There was general recognition that the state of charge has a direct impact on safety. However, most of the experts who spoke considered it premature at this stage to agree on the 30 per cent value proposed by China, since new technologies are being developed to avoid propagation in batteries with a higher state of charge. However, the Sub-committee welcomed the information provided in the proposal and invited China to come back with a revised proposal in the future, in light of the comments made. Another paper from China proposed the addition of new provisions for batteries (wet,

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non-spillable) installed in cargo transport units, analogous to those already adopted for lithium batteries installed in cargo transport units. Again, though, while there was some support for the idea, most experts felt the proposal needed to be developed further. China will return at a future session with a revised proposal and additional information. Recharge, PRBA, COSTHA and the International Organisation of Motor Vehicle Manufacturers (OICA) followed up on discussions at the previous session aimed at clarifying and expanding the applicability of large packing instruction LP906 and packing instruction P911. Again, the Sub-committee offered some support but felt further work was necessary, giving the authors of the proposal some ideas on how to improve it. Once more, this will return at a future session. Recharge and PRBA had spotted what they thought was a mistake in special provision SP 377, which describes the transport conditions applicable to lithium ion and lithium metal

“CHINA INTRODUCED THE SUB-COMMITTEE TO THE CONCEPT OF VANADIUM REDOX FLOW BATTERIES”

cells and batteries and equipment containing such cells and batteries transported for disposal or recycling. The Sub-committee this time concurred with the proposal and made two changes as a correction to the 21st revised edition of the UN Model Regulations. In both the last paragraph of SP 377 and the third paragraph of SP 310, the words “and packaged in accordance with P908 of 4.1.4.1 or LP904 of 4.1.4.3 as applicable” are deleted. IATA raised two questions. Firstly, SP 188 and SP 230 describe the conditions under which lithium cells and batteries may be offered for transport, referencing 2.9.4; some regulatory authorities take this to mean that the consignor, if it is not the manufacturer, must have evidence of the manufacturer’s quality management programme, although sub-paragraph (e) only states that a copy of this shall be made to the competent authority upon request. On the basis of discussion during a coffee break, the experts confirmed that there is no requirement for the manufacturer to provide evidence of a quality management programme to any other party than the competent authority. IATA said it would submit a proposal to clarify the requirements. IATA’s second query related to SP 188(f), which contains in a note a reference to a transitional period for the introduction of the lithium battery mark, which has now expired. The Sub-committee agreed and deleted Note 1; the existing Note 2 now becomes simply ‘Note’. PRBA and Recharge returned following discussion of an informal document at the previous session, noting that the authorisation in packing instruction P903 to use strong outer packaging for batteries or assemblies of batteries with a gross mass of more than 12 kg has caused some misinterpretation on the part of some competent authorities and, moreover,

 THE EXPERTS CLARIFIED THE PROVISIONS FOR AEROSOL FIRE SUPPRESSION SYSTEMS

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its language is inconsistent with similar provisions in the ICAO Technical Instructions. Their paper offered some text to clarify paragraph (2) in P903. The Sub-committee did not totally agree with the wording but did agree to a change; in P903(2), “cells or batteries” is replaced with “a cell or battery” and at the end of that paragraph, before the indents, “, and assemblies of such cells or batteries” is deleted. Another paper from the same two organisations addressed the issue of P903 and the use of packagings with a net mass exceeding 400 kg. There is confusion throughout the supply chain, they claimed, with improper understanding of the provision that, if the net mass of a packaging as authorised under P903(2) or (4) exceeds the mass limit prescribed in Chapter 6.1, the batteries or equipment do not need to be packaged in large packagings in accordance with LP903. Recharge and PRBA proposed some clarification to help solve the issue in 4.1.3.3 and P903. There was some support in principle for the proposal. Some experts suggested that packing instructions P130 and P408 should also be addressed. Others indicated that the proposed provisions could be inserted in the applicable instructions for packagings and large packagings or in the definitions in 1.2.1

Similarly, a proposal from PRBA and Recharge to remove the requirement for a telephone number from the lithium battery mark, since it is unclear who this should contact, what information should be provided, or whether it should be available around the clock, was also batted back for further consideration. There was, though, support in principle and a decision will be made at the next session on the basis of an official document. China introduced the Sub-committee to the concept of vanadium redox flow batteries, a technology used in very large batteries in emergency power supply and peak shaving applications. In transport, these batteries are normally uncharged, so protection against short circuit is not necessary. China said the existing UN entry to which they are assigned, UN 2794 Batteries, wet, filled with acid, electric storage, is too strict and UN 3363 is also inappropriate. It proposed a new special provision for UN 2794 to address the issue. The experts took note of the information provided and suggested that perhaps, as these batteries are transported uncharged and that an outer packaging is not required, they should be regarded as ‘articles’ rather than ‘batteries’. Experts were encouraged to provide additional comments to the expert from China, who was invited to submit a formal proposal at a future session.

rather than in 4.1.3.3. Some others requested more time to consider the proposal and get feedback from stakeholders. After an exchange of views, the authors of the document said that they would take account of the comments received and would submit a revised proposal for a future session.

The second part of this two-part report on the UN TDG Sub-committee’s December 2019 session in next month’s HCB will cover discussions on the transport of gases, miscellaneous proposals for amendment, global harmonisation and GHS issues.

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REPORTS REQUIRED SAFETY • CSB’S FUTURE IS UNDER THREAT DUE TO BUDGET CUTS BUT IT IS PRESSING AHEAD WITH ITS RULEMAKING ON CHEMICAL INCIDENT REPORTING THE US CHEMICAL Safety and Hazard Investigation Board (CSB) is a comparatively small agency by federal standards but it packs a big punch. Its FY 2019 budget was only $12m, supporting a staff of 47, but it has still come into the line of fire of a presidential administration eager to cut costs, especially in terms of bureaucracy that it finds burdensome to industry. Despite the threat of imminent closure, CSB is pressing ahead with its programmes and has sought a budget of $13.14m for the FY 2020 year, including a one-time request of $400,000 for services and equipment to support the new Chemical Incident Reporting Rule initiative.

For those operating in high-hazard chemical industry sectors, it is the new incident reporting rule that could have the biggest impact. A notice of proposed rulemaking (NPRM) was published on 12 December 2019, with comments due by 13 January 2020. In the preamble to the NPRM, CSB notes that its enabling statute, enacted in 1990, provided for the Board to “establish by regulation requirements binding on persons for reporting accidental releases into the ambient air”. To date, that provision has not been fulfilled. Indeed, there have been a number of remarks made on this lack of action since CSB started work in 1998. In 2004, for

instance, the Department of Homeland Security’s (DHS) Inspector General said in a report: “The CSB needs to refine its mechanism for learning of chemical incidents and it should publish a regulation describing how the CSB will receive the notifications it needs.” Another reminder was made by the Government Accountability Office (GAO) in 2008, which included a call for CSB to fulfil its statutory obligation. Work started on the rule the next year, in response to the GAO report, with CSB issuing an advance NPRM in June. This outlined four potential approaches to accident release reporting, seeking a consensus on how best to move forward. In particular, CSB was eager to hear industry’s opinions on how other federal, state or local rules might provide an appropriate model for its reporting requirement; whether CSB or the National Response Center (NRC) should be the first point of contact; what information should be reported and how soon; and if there should be a distinction between high-consequence incidents and other events. CSB received 27 comments on the ANPRM. On 4 February 2019, a US District Court judge ordered CSB to issue a rule within 12 months. NOW FOR THE RULE CSB proposes to add a new part 1604 to title 40 of the Code of Federal Regulations, requiring an owner or operator to notify CSB promptly of any accidental release within the Board’s investigative jurisdiction. “Accidental release” is, in this rule, defined as “an unanticipated emission of a regulated substance or other extremely hazardous substance into the ambient air from a stationary source”, which is taken from other existing regulations. However, CSB notes, there is no statutory definition of “ambient air” and, while the Environmental Protection Agency (EPA) uses it to mean the atmosphere outside buildings, CSB is also interested in what happens inside structures.

 CSB DOES A LOT OF SAFETY-CRITICAL WORK AT A SMALL PRICE BUT NEEDS RAPID ACCESS TO INCIDENT REPORTS IF IT IS TO BE ABLE TO DO THAT WORK TO THE BEST OF ITS ABILITY

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Among the comments received on its ANPRM, a number urged the Board to avoid duplicative reporting, suggesting that NRC should be the first point of contact. CSB is alert to this issue but it is also aware that the overlap between CSB and NRC is not consistent and there is no way to make sure that information reported to NRC will satisfy CSB’s requirements. In the proposed rule, reports will need to be made to CSB directly, unless they have already been submitted to NRC; CSB will work with NRC to ensure that any relevant information is passed on. The proposed rule includes a requirement for a report to be made within four hours of it happening. While CSB is aware that, in the initial aftermath, owners and operators will have other priorities, it is also concerned that it needs to make a rapid decision as to the need to deploy its own investigators; CSB says it has learned from experience that it is often crucial to begin an investigation before physical evidence is

disturbed and while witnesses still have evidence fresh in their minds. Furthermore, the rule allows for reports to be revised at a later point. The rule continues with the details of the information that will be required and the enforcement provisions in the event that a

report is not filed, although CSB says it will not refer violations for one year after the effective date of the rule, to allow time for compliance education. HCB will report on this topic again, once the NPRM is in the form of a final rule. www.csb.gov

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IT’S ABOUT TIME HNS CONVENTION • EFFORTS TO GET THE HNS CONVENTION INTO FORCE HAVE A LONG HISTORY. EUROPE’S SHIPOWNERS AND THE EUROPEAN COMMISSION ARE GIVING IT A PUSH SHIPOWNERS IN EUROPE are calling for governments to get on and ratify the 2010 International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention). The message was sent by the European Community Shipowners’ Associations (ECSA) during European Shipping Week 2020 this past February, where representatives from the European Commission, the International Maritime Organisation (IMO), the International Oil Pollution Compensation (IOPC) Funds and many industry bodies were in attendance.

Discussions at the event centred on how the Convention will – once it is ratified and in place – strengthen the international liability framework. There was also the opportunity to hear the experiences of states that have already ratified the Convention. “The HNS Convention is an important part of the international maritime liability and compensation regime as it establishes a comprehensive scheme covering pollution damage from hazardous and noxious substances carried by ships. The shipping industry strongly supports its ratification,” said ECSA secretary general, Martin Dorsman.

Viggo Bondi, chairman of ECSA’s Legal Advisory Committee, added: “To date, Denmark is the only EU member state that ratified the Convention and today we heard why it considered ratification very important and how it had prepared for ratification. We were encouraged to hear today that a number of other EU member states, including France, Netherlands and Belgium, plan to ratify in the near future. We encourage all other member states to progress their efforts to ratify the Convention as soon as possible. In this way the EU will lead by example and enable the Convention’s entry into force. This is important as shipping is the most international of industries and it needs global rules and a level playing field.” WHERE WE ARE The 2010 HNS Convention establishes a comprehensive, uniform and global set of liability rules covering pollution damage from hazardous and noxious substances carried by ships, as well as the risks of fire and explosion, loss of life, personal injury and loss of or damage to property. In the case of larger pollution incidents, where the damages exceed the limit of the shipowner, the HNS Fund pays “top up” compensation. This two-tier liability regime ensures better protection and compensation for potential victims of an incident. The HNS Convention is seen as being increasingly important as the carriage of HNS by sea is growing by almost all ship types including container ships, chemical tankers, and LNG and LPG tankers. At least 12 states must ratify the Convention for it to enter into force, of which four must each have at least 2m grt under their flag. So far only five states have ratified the Convention: Norway, Canada, Turkey, Denmark and South Africa – although four of these do meet the 2m grt benchmark. In April 2017, the Council of the European Union authorised member states to ratify the Convention, with the exception of the aspects related to judicial cooperation in civil matters. They were urged to do so “within a reasonable time” and, if possibly, by no later than 6 May 2021.

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GO BACK FURTHER The HNS Convention has a much longer history; it was first drawn up in 1996, modelled on existing oil spill compensation conventions and schemes, but expanded to cover all manner of chemicals and other substances named in the International Maritime Dangerous Goods (IMDG) Code. At present there is no comprehensive regime to address claims from incidents involving these substances. With a shortage of ratifications, an international conference was held in April 2010 to revise the HNS Convention in order to address the practical problems that were causing many states to hold back from ratifying it. That conference agreed the 2010 Protocol, which is now referred to as the 2010 HNS Convention. The UK P&I Club recently observed that, despite the 2010 Protocol, states have remained reluctant to support the Convention. “For various (mostly economic) reasons, the system of compensation under the oil pollution Conventions does not constitute a proper model for compensation caused by chemical cargoes carried by sea,” the Club observed. “There are essential differences between the position of the oil industry and of the chemical industry with regards to the sharing of responsibility for marine incidents between these industries and the shipping industry.” Another longstanding issue is the inclusion of LNG in the scope of the HNS Convention. This is the first time an international liability regime will make LNG shipowners and cargo title holders strictly liable for accidents and would drastically increase the liability of those parties to third parties in states that are party to the Convention. PROBLEMS AHEAD The HNS Convention will provide for two tiers of compensation in the event of damage as a

 RATIFICATION OF THE HNS CONVENTION HAS BEEN SLOW, PARTLY DUE TO THE COMPLEXITY OF THE SECTORS COVERED, WHICH IS BEING MADE MORE COMPLEX BY THE EXPANSION OF LNG TRADES

result of a casualty. The first tier imposes liability on the shipowner, which will normally be covered under P&I insurance. The second tier consists of the HNS Fund, into which certain importers of HNS will be obligated to contribute following a casualty. The amount of such contributions will be based, among other factors, on the amount of HNS imported by each such cargo title holder in the calendar year immediately preceding the calendar year in which the casualty occurs. Both tiers involve strict liability. This means that the liability of the shipowner is established regardless of fault. Thus,

with the general principles of fault and negligence. This is a marked difference compared to other compensation regimes, such as the Civil Liability Convention (CLC), which are invoked to limit a shipowner’s liability in the event that the shipowner is legally at fault. “Although the second tier of the Convention is similar to that of the 1992 Fund Convention, it is clear that administration of the HNS Convention will be more complicated,” the UK P&I Club says. “This is due to the variety of products covered and the difficulty in

unless one of the limited defences under the Convention is applicable, a shipowner who causes a casualty in the territory of a state party, involving HNS, will be liable in accordance with the Convention. This will apply regardless of whether it would otherwise have been liable in accordance

ascertaining who is the receiver of the HNS cargo (and in cases of LNG, the cargo title holder).” Indeed, tracking the volumes of an immense range of products received by a huge number of companies, all of which will vary from year to year, will be a massive undertaking.

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62 BACK PAGE

NOT OTHERWISE SPECIFIED UNHEALTHY LIVING Regular readers will know that here on the Back Page we have little truck with health and cleanliness. We have too much evidence that inordinate attention to such matters can only lead to accidents. Chasser le naturel, and all that. Or, as Horace put it, naturam expelles furca, tamen usque recurret. Here, for example, is yet another example of vanity giving way to injuries. Last October, 16 otherwise healthy people attending a “fitness event” in Putrajaya, Malaysia were injured when balloons used as props exploded. Police reported that someone – clearly not a health freak – was trying to release some balloons and burned through the string tying them together using a cigarette lighter, which was found at the seat of the blast. The lesson of this incident is twofold: not only are cigarettes bad for your health, but so also is saving money by using hydrogen instead of helium to fill balloons.

heating the sauna. That did the trick: the sauna started to get hotter straight away. But then, he said, his eyes started to burn and his lungs “felt like they were on fire”. Everyone else in the room also had the same reaction and they all ran to get out – which was difficult as the doorway was narrow. “Everyone in the pool area was extremely confused as to why we all came flying out of the sauna,” our gym buddy said. “We were wheezing and coughing and dry heaving. I tried to figure out what was going on and I realised that the pool water is full of chlorine. When I poured it on the rocks, the steam it created must have irritated our eyes and lungs. What I essentially did was gas everyone in the sauna with chlorine.”

THE GASMAN COMETH And another example came by our desk last month, with news of a man who caused mayhem in a sauna at his local gym. After a workout, the chap – not named in reports, perhaps for his own protection – decided to try out the sauna and found it practically full.

NOT SO BRIGHT SPARK For our last story this month, we are grateful to our like-minded colleagues at the Darwin Awards, who reported this incident from March 2018. After two storms in a week, New Jersey was blanketed in snow and a man was off to see his father to help him sweep his drive. But the storms had also brought down power lines, leaving hundreds of thousands without power. Utility crews were working overtime to restore power. The man was on Route 208 in Franklin Lakes when he came to a detour marked off

But, squeezing in among the other patrons, he found that even after 15 minutes he was barely sweating. Checking with the others to see if it was alright with them, he took the wooden ladle and brought some water from the swimming pool just outside to splash on the rocks

by traffic cones. But, reluctant to go too far out of his way or get caught up in another traffic snarl, he drove around the cones – and right onto a live cable. His car caught fire and he was killed at the scene. Seeing as he worked as an electrician in New York, he might have been expected to know better.

HCB MONTHLY | APRIL 2020

ADVERTISERS INDEX Cameon

ChemUK

Exis Technologies

Fort Vale

Freight Merchandising Services

Greif

IMO

Labeline

53/55/57

Labeline Biennial

IBC

Labelmaster

IFC

M&S Logistics

NISTM

Odyssey Logistics & Technology

OBC

Scully Systems

SIL Barcelona

Standic

UKIFDA Expo

HCB Magazine April 2020

Articles inside

HNS Convention gets a nudge

CSB will want incident reports

UN experts ready next Orange Book

Bonding during barge de-gassing

FRA looks at cryogenics by rail

Conference diary

News bulletin – tanks and logistics

Labelmaster suggests the e-version

Training courses

Incident Log Catch a cold

Elemica responds with updates

Odyssey finds eager customers

Confusion in the midstream patch

Greif builds in protection

Standic prepares Antwerp terminal

Digitisation comes to US petrochemicals

News bulletin – industrial packaging

News bulletin – storage terminals

Azelis signs up to TfS News bulletin – chemical distribution

View from the Porch Swing

Acquisitions boost IMCD

Obituary: Herbert Kennard

NACD promotes the sector

Letter from the editor

Learning by Training

Univar strategy pays off

Brenntag toughs it out