HCB Magazine December 2017

EDITOR’S LETTER

Most parents will know how difficult it can be sometimes to get children to eat. They seem to have an innate ability to know that they don’t like particular foods, even when they’ve never seen or tasted them before. So I was very happy when my daughter decided that she really liked spaghetti bolognese. In fact, she liked it so much that Friday evening became the regular ‘Spag Bol Night’ and gave the family a chance to sit down around a steaming bowl of pasta.

When she grew up and moved out, my daughter found it hard to replicate that experience. Shop-bought or restaurant bolognese never matched what she remembered from home. So she rang me up to ask me how I made it. It’s quite flattering when someone thinks you do the best bolognese in the world –even if she is related – and I won’t lay out the recipe here, except to say this: celery is vital.

Anyway, some years later I was talking to an Italian about food and I asked him if he knew the ‘authentic’ recipe for bolognese sauce. He just said: “How many grandmothers are there in Bologna?” Each has her own way of doing it and each family considers their recipe as the authentic version.

It’s a little like that in the world of dangerous goods. Sit ten experts down at a table and give them a question on the regulations and you’re likely to get ten different answers. That’s not because nine of them are wrong, they may all be correct. And that is because the transport regulations recognise that there are different ways of doing things properly.

To some extent the variations stem from the regulators’ understanding that how goods are being packaged and transported is as significant as the hazards those goods

pose to people, property and the environment. Allowances are made and relief is offered, depending on the quantity in a consignment and the nature of the packaging, as well as the mode of transport and other specific conditions (for instance, the permission to move otherwise forbidden dangerous goods by air to remote communities).

However, GHS, REACH and other similar efforts to categorise all the chemicals in the world are threatening this pragmatic approach. For them, each individual chemical has its own set of intrinsic hazards and they never change. Anyone (anyone with a degree in chemistry, anyway) can look at the safety data sheet (SDS) and see what those hazards are and how the material should be handled.

A major problem has emerged in the interpretation of Section 14 of the SDS, which lists transport information. The idea of this section is to assist shippers in correctly communicating the hazard(s) posed by their shipments during transport. What it cannot do is cover all possible scenarios. I have seen SDSs in which Section 14 takes up a whole page, yet there is no mention of Limited Quantity thresholds, tunnel codes for ADR, stowage and segregation codes for IMDG, applicable special provisions or any of the other details that have to be shown on the transport document.

An SDS is not a transport document, so if anyone asks for it to check that the consignment is compliant with the transport regulations, they are not just wrong they are wrong, wrong, wrong, wrong, wrong. Just as wrong as if they put mushrooms in their bolognese sauce.

Peter Mackay

Cargo Media Ltd

Marlborough House 298 Regents Park Road, London N3 2SZ www.hcblive.com

Editorial Editor–in–Chief

Peter Mackay

Email: peter.mackay@hcblive.com

Tel: +44 (0) 7769 685 085

Managing Editor

Stephen Mitchell

Email: stephen.mitchell@hcblive.com Tel: +44 (0) 20 8371 4045

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Brian Dixon

Designer Tiziana Lardieri

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Samuel Ford

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CONTENTS

VOLUME 38 • NUMBER 12

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.

ISSN 2059-5735

UP FRONT

Letter from the Editor 1

30 Years Ago 5

The View from the Porch Swing 6

TANKS & LOGISTICS

The key to success

EPCA considers Industry 4.0 ideas 8

It’s all Techno

A new depot for Moerdijk 18

A louder voice for Asia

ITCO and @tco combine 20

News bulletin – tanks and logistics 22

CHEMICAL DISTRIBUTION

Facts, figures and the future

Fecc holds up a mirror to the sector 26

A quality quarter

Brenntag on the move, and moving up 30

A look at the books

How distributors are doing so far 31 News bulletin – chemical distribution 33

INDUSTRIAL PACKAGING

ICS leads consolidation Equity funds help reconditioning sector 34

Integrity assured

Schütz’s safer closure for plastics drums 36

Plastics drum manufacturers listed 37 News bulletin – industrial packaging 37

Move them drums!

STS offers advice on equipment selection 40

GAS SHIPPING

Where to next?

BW’s view on the LPG trades 41

Sweat the small stuff

Better times for Epic’s FP gas ships 43

Ready for anything

Veder leads small-scale LNG rush 44

COURSES & CONFERENCES

Training courses 45

Learning from training 47

Conference diary 48

SAFETY

Incident Log 49

Well done you Hapag-Lloyd recognised 51 Restrictions revealed Hazcheck gets support for extension 52

REGULATIONS

Back to business UN experts start work on 2019 text 54

THE BACK PAGE

Not otherwise specified 64

NEXT MONTH

Bulk liquids storage terminal markets

The latest in tank container equipment News from distributors in North America

Developments in rail logistics

30 YEARS AGO

A LOOK BACK AT DECEMBER 1987

The December 1987 issue of HCB featured a number of firsts. It was, we think, the first time the cover had led with developments in the air gas supply chain, illustrated with an impressive picture of M1 Engineering’s new M1CROAN tank. It was also, as far as we can tell, that the concept of in-cab phones featured in an advertisement – in this case, a full page ad for The Truckfone Company, a UK operation promising to keep drivers in touch with the office, wherever they were on the road (the Scottish highlands, to judge by the picture).

Information technology was certainly forging ahead at the time – those of you who were around in the 80s will certainly remember the arrival of brick-sized mobile phones – and a small item in the December 1987 issue reported the arrival of in-cab invoicing for fuel delivery vehicles, an advance that promised to save operators a lot of money. There was no GPS at the time so Sam-Link, as it was called, was eventually superseded by more intelligent machines.

Another significant change for fuel tankers was the arrival in the UK of the bottom-loading concept, which we noted at the time had been in use in the US for many years. A new set of vehicles built by M&G Tankers for Esso Petroleum not only used the idea but also featured tanks made of fibre-reinforced plastics.

Somewhat more prosaically, HJK’s regular contribution summarised the August 1987 meeting of the Group of Rapporteurs of the UN Committee of Experts, which was chaired by the late Lance Grainger from the UK Department of Transport. The Group had on its agenda a review of the draft fifth edition of the UN Orange Book as well as Part

III of the Manual of Tests & Criteria, which included some changes to the provisions for organic peroxides.

Thirty years ago, the UN experts were planning to take steps to “eliminate those dreadful organic peroxide shipping names” ahead of a planned overhaul of the provisions for Division 5.2 substances. Sadly, three decades later, they have still not been eliminated, much to the frustration of at least one recent chairman of the Sub-committee.

In December 1987 ICAO had already settled on the changes that would appear in the Technical Instructions for 1989-1990. Included in those amendments was a change of the name of ‘small quantities’ to ‘excepted quantities’, a bright idea that other modes were eventually to take onboard as well – though it will be some time before this column gets around to reporting on that.

Another item in the regulatory coverage in December 1987 noted that progress was slow in the US with the ‘Superdocket’ rulemaking, HM-181. This was also known as the ‘Phantom’ docket sine five years had passed between its initial proposal and the publication of a formal notice of proposed rulemaking. The aim of HM-181 was to align US domestic rules more closely with the UN system of packaging, marking, labelling, classification and so on.

Indeed, another three years were to pass before the Research and Special Programs Administration – the forerunner of PHMSA – was able to publish it as a final rule. It was followed up four years later by HM-215A and then at roughly biennial periods up to HM-215N, which took effect at the start of 2017.

FROM THE PORCH SWING

SHOULD 14 BE CONSIDERED THE NEW UNLUCKY NUMBER?

I can’t afford to stay in Manhattan in New York City, but recently a client could. So, I got a couple nights in a hotel with 13 floors, or more accurately, 12 floors and an accessible roof. And on this roof was an open-air bar. I had arrived after a long cross-country flight, and thought a couple of drinks would help me sleep and thus re-set my body clock.

Spurious rationalization or not, I was in the elevator on my way up when it stopped at another floor for more passengers. One of the newbies wondered to the other whether the “14” button was for the top floor of rooms or for the roof, and worried about not getting to the bar before the end of ‘happy hour’.

The sign on the side of the elevator behind her back gave the answer, yes, the 14th floor was indeed the roof. But then the devil jumped

on my shoulder. “Actually”, I said, “the button marked 14 only takes you to the 13th floor”. As the two guests looked bewildered, I pointed out that the numbers went directly from 12 to 14 without a 13. Both of them looked at me so funny I started to wonder if the two young ladies thought I was trying to pick them up (hit on them). Then one said “that’s odd” and the other said that still wouldn’t tell them whether the 14 button would take them to the rooftop bar.

I handled it in reverse order by reassuring them that, yes, they’d make it to the half prize booze on the 14th floor rooftop bar in time, and that 13 used to be considered such an unlucky number that hotel guests would refuse to sleep on the 13th floor. So hotels learned to just skip that number.

Striving valiantly to look impressed by my nugget of trivia from back in the dark ages, the young ladies nonetheless did ensure they went to the other end of the bar from me. Too old to be perturbed by them thinking I might be a crazy coot with improper intentions, I nursed my still way-overpriced even at happy hour, craft beer, while pondering which number should/would be considered unluckiest if the fear of 13 has worn away.

Then there was class the next day, and the answer beat me over the head.

I had a couple of Europeans, trying to get comfortable with the US DOT’s 49CFR regulations, when what to put on the SDS (mSDS) for DG transport became the topic of the day.

“So”, one said, “if we put ‘Environmentally Hazardous’ on our SDS for our bulk shipments when they are a US Marine Pollutant (note: often different from a global Marine Pollutant), then our non-bulk road and air shipments may be rejected from the carrier as undeclared?” (note: US Marine Pollutants only have to be regulated when in “bulk” or by vessel). “And yet,” the other continued, “if we put non-DG on the SDS, then the carrier may think our bulk shipments are improperly marked and placarded?” Yes, and yes. These were fast learners.

One asked, “if we heat a certain solid hot enough to melt it for easy pouring into a portable tank, then it might or might not be DG as an ‘Elevated Temperature’ material depending upon how long it is between filling and offering to the carrier?” “Yes”, I said, “it depends upon the material’s temperature when the carrier comes to get it.” “Well then”, the other asked, “what are we to put into the SDS?”

“Are you kidding,” was asked that day, “our viscous liquid is PG II in some sizes and PG III in other sizes?” As I was learning to expect, the other chimed in with “and how does that get handled on an SDS?”

“What are you saying,” one asked, “that in an aerosol type container it’s classified as an Aerosol, but in a cylinder it’s merely a Chemical Under Pressure?” And with the follow-up from the other side of the table…, “Do you think our SDS author knows what it’s going to be put in?” This then went back to the first commenter for, “How do we prevent this from being rejected

by the carrier if we use both packagings, and thus both classifications, but only put one on the SDS?”

“Acetone Solution when it’s a raw material, but ID8000 Consumer Commodity when it’s a product?”, followed by the other half of the tag team offering, “Oh, wait, only ID8000 by air, not by boat?”.

“UN1950, Aerosol, outside the USA, but just the PSN (proper shipping name) of the gas when in the USA, because 49CFR doesn’t allow ‘just gas’ aerosols?”, was succeeded by colleague’s, “Wow, so, from Germany to South America one SDS with one classification, but from Germany to the US a different classification and therefore a different SDS?”

Oh my, I could go on. Combustible liquids, self-heating size variations, US Toxic Gas When Wet, life-saving appliances with and/or without lithium batteries, transition options for vehicles, and more. So many variations

“OUR VISCOUS LIQUID IS PG II IN SOME SIZES AND PG III IN OTHERS. HOW DOES THAT GET HANDLED ON AN SDS?”

and permutations that I’ve picked a new unlucky number, Section 14.

Do SDS authors get adequately trained on these transportation quirks? A few do, but many don’t. Do acceptance personnel at carriers get adequate training on classification, in order to be able to use Section 14 properly?

I want to say never, but must settle for usually not. In fact, some carriers won’t even listen to an explanation, instead insisting on an SDS that matches every detail of the now held shipment.

Yeah, I think 14 is proving to be a very difficult, if not unlucky number for more and more shippers and their mSDS authoring folks.

Tetradekaphobia, anyone?

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

THE KEY TO SUCCESS

had broken attendance records again, with almost 2,850 registered participants. That much was evident both within and outside the main event locations, with the cluster of custard-coloured taxis waiting at the InterContinental Hotel growing larger each year, even as the grey cloud of smokers gets smaller.

RICHARD P FEYNMAN, CELEBRATED Nobel laureate, is widely reported to have once said: “If you think you understand quantum physics, you haven’t understood quantum physics”.

Much the same might be said about the impact of digitalisation on supply chains – or, to give it its abbreviated handle, ‘Industry 4.0’.

Over the past year many industry gatherings have talked the topic through; it has been clear that there are many who think they understand its implications but in fact miss the point.

It was much the same at this year’s Annual Meeting of the European Petrochemical Association (EPCA), which took place in Berlin in October. EPCA strives not just to keep up but to lead the industry, so it was no surprise that the theme at this year’s 51st gathering was the potential for Industry 4.0 concepts to transform the way that the sector does business.

Tom Crotty, appearing for the last time as EPCA president, opened the first business session with an upbeat message: the meeting

While many attendees are attracted by the regular annual opportunity to do business with their customer and suppliers, they may also have been drawn to Berlin this year by the uncertainty that Industry 4.0 is injecting. As Crotty said, digitalisation means that some jobs will go – but whose? – and new roles will emerge. We do not yet know what those roles will be, but EPCA had lined up an array of well informed speakers to give some pointers.

THREATS AND OPPORTUNITIES

The opening session focused on Industry 4.0 and its potential impact but also harked back to other issues discussed in recent years at the EPCA meeting, under the theme: ‘Building sustainable and inclusive economic growth in

CONFERENCE REPORT • THIS YEAR’S EPCA ANNUAL MEETING INVESTIGATED HOW INDUSTRY 4.0 CAN HELP IT MEET ITS TARGETS FOR SUSTAINABILITY, DIVERSITY AND GROWTH

the digital age: the value creation proposition of the chemical industry’. First to take the challenge of explaining the future to the early morning audience was veteran journalist Martin Wolf, chief economics commentator at the Financial Times. His presentation highlighted the fact that there are plenty of other challenges facing established industries, aside from the obvious threats raised by digitalisation.

For a start, we are in the middle of the end of western dominance in the global economy, he said. Between 1980 and 2017,the developed world’s share of global GDP shrank from 65 per cent to 40 per cent – with all of this moving to Asia, and mostly to China. This has been accompanied by increasing globalisation and integration of international financial and trade flows, although that process stalled with the 2008 financial crisis.

Growing demands for sustainability are also having a profound impact, Wolf continued. There has been a massive increase in carbon dioxide emissions over recent decades; since 1970 that has almost all come from emerging markets.

There is also a challenge from the pace of innovation. Wolf pointed to productivity improvements, which have slowed measurably since 2004; some developed countries are even going backwards in terms of productivity, Wolf said. The fall in the price of semi-conductors stalled around 2010 and, he said, future benefits will come from software not hardware.

Wolf then looked back over previous industrial revolutions; this current fourth revolution is characterised by growing integration of cyber- and physical systems. However, it is of a piece with the previous three revolutions, which were all products of the integration of competitive capitalism with science and technology. The difference now is that seven of the ten most valuable companies in the world, in terms of market capitalisation, are IT firms.

What does this all mean for the petrochemical industry? Wolf said that digitisation of industrial processes will transform its operations, just as it is doing in all other economic sectors. As a result, new skills will become more valuable and new products and services will be needed. The petrochemical sector has opportunities in the supply of raw materials for electric vehicles, drones, wearable devices and other equipment we have not yet dreamed of.

The urgent need for decarbonisation of the economy also creates new opportunities –and challenges – for the more sustainable use and management of natural resources, energy saving and a move to a circular economy; the petrochemical industry, as with other sectors, will have to build new corporate ecosystems and become more collaborative.

New and often disruptive customers and suppliers will emerge, something that established operators will need to be alert to. They will also have to pay attention to cyber-security as well as operational security, and to issues such as intellectual property protection, data protection and privacy.

All in all, technological change is currently rapid and uneven; this has already created profound changes in the industrial economy but it does also create opportunities for those willing to adapt.

INDUSTRY OPINIONS

Jim Fitterling, president/CEO at The Dow Chemical Company, agreed with Wolf that

digitisation is just one of several major changes currently underway, alongside globalisation and the drive for sustainability. Nevertheless, there are implications in Industry 4.0 concepts that will certainly have an impact.

For instance, Fitterling said, R&D cycles will become shorter. This is partly because petrochemical companies will, through the interrogation of ‘big data’, be able to get a better understanding of their client industries’ needs; they will also be able to get better feedback on their products’ performance in the real world. This change also offers the promise of a shift to a more circular economy and a reduction of waste, he said, fitting with Dow’s commitment to the ‘triple bottom line’ of people, planet, profits.

Still, survival in the new digitalised economy will favour the most adaptable companies –and that means adaptable personnel. This is not something that can be imposed on the organisation in a top-down fashion, it has to be developed organically, “like weaving a ribbon all the way through the organisation,” as Fitterling put it.

Fitterling finished with the observation that disruptive new entrants employing digitised technologies have already had a massive impact in fields as diverse as the music industry, the taxi sector and hotels. “Why should our industry be any different?” he asked. “Every juncture in our supply chain offers an opportunity for someone like Alibaba or Amazon to come in and disrupt our business,” he warned. »

Also on the panel for the first session was Dr Hariolf Kottmann, CEO of Clariant and president of the European Chemical Industry Council (Cefic). Citing some statistics showing the remarkable pace of change in the past few years, particularly with regard to the volume of data now available and the much lower cost for analysing that data, advanced analytics is enhancing operational excellence in the chemical industry and allowing it to respond rapidly to changes in end use sectors, he said.

It is difficult to predict when and how deeply these changes will appear, Kottmann said. However, it is inevitable that capital expenditure will increase in response to shorter lead times. There will also be intense competition for the specialist skills needed to make it all happen. These changes will not happen overnight but when they do they will be fundamental. Businesses will have to keep

an eye on what it means for their long-term investment plans, Kottmann concluded.

TALK IT OVER

During the subsequent panel discussion, Martin Wolf observed that it is incredibly difficult to understand a period of transformation while it is actually happening. However, in general, the initial impact of transformation is almost always over-estimated, while the long-term impact is under-estimated.

Returning to his point about productivity, he qualified it by noting that, due to the fall in the share of national and global GDP accounted for by the manufacturing sector, productivity gains in industry do not have much impact on the overall economy. It is, he said, hard to see how Industry 4.0 will generate productivity gains in service industries such as tourism and healthcare.

Jim Fitterling added that the biggest change he expects to see is how his company responds to its customers. It is not clear how that change will manifest itself but, he said, “We will do things differently.” Digitisation of the supply chain is key here: it offers a big

opportunity to connect better with end users and to provide them with more visibility over their supply chains. If this can lead to, say, a 10 per cent reduction in inventory in the supply chain it will have a direct financial benefit.

Dow is currently looking at re-engineering the organisation from end to end, Fitterling added. There is a need for IT investment in terms of sensors and robotics. This should all focus on delivering a seamless production process for each stream, rather than relying on hand-offs between different departments.

“IT has levelled the playing field between large and small companies,” Kottmann observed. This in itself changes the commercial landscape and means that having a leading-edge IT capability is a competitive advantage. All players need to look at where they are investing and differentiate between those IT systems that are nice to have and those that are indispensable.

ON TO LOGISTICS

Later in the Annual Meeting, there was another early start for those with a particular »

interest in how Industry 4.0 will affect the petrochemical supply chain. Opening the session Johan Devos, outgoing chair of EPCA’s Supply Chain Programme Committee, recalled discussions at the 2016 meeting, after which the Committee had set up a survey on the impact of ‘Logistics 4.0’ with the Vlerick Business School (VBS) in Belgium.

Professor Ann Vereecke, faculty dean of VBS, gave the audience a ‘sneak preview’ of the survey results, commenting that it was pleasing to find that several logistics service providers (LSPs) are already progressing digitalisation in their operations. Awareness of the issues is high, with most of those taking part in the survey expecting a large impact on the chemical supply chain, not least in terms of the flow of information and cash. Just over half are expecting to operate under a new business model, indicating that Logistics 4.0 is not just the next innovation in industry but a real step change, Vereecke said.

There is, too, a growing sense of urgency. Of those surveyed, 73 per cent thought the petrochemicals sector is lagging behind other industries in terms of digital transformation –though 95 per cent of its customers think the same. Those customers want transparency, they want better service levels, they want new solutions. This is all driving innovation, which is being hastened by the arrival of new competitors in the business, including those offering digital solutions.

An interesting analysis showed that, on a barometer of ‘digital ambition’, proximity to the end user makes a difference: 65 per cent of traders and distributors and 58 per cent of LSPs expressed their ambition to be an early adopter of new technology, but this figure was 41 per cent for chemical producers and just 28 per cent for their upstream partners. Digitisation is being pushed into the supply chain from the end user, Vereecke said.

Vereecke also identified six key capabilities for digital innovation, beginning with a strategy and high-level governance within the organisation. Defining the right process and attracting the right talent is just part of the transformation; it also involves defining a different culture within the organisation. And choosing the appropriate technology is just the end point.

Happily, Vereecke said, while LSPs are only at average levels in these six key capabilities, they are further advanced than petrochemical producers. But there is a clear need for investment in building those capabilities.

LSPs and their partners need to throw off the shackles and get on with it, was Vereecke’s message. Current investments are being targeted at those technologies that are expected to have the biggest impact – cloud computing, ‘big data’ management, shared logistics, low-cost sensor technologies, and so on – but LSPs should “dare to experiment”, she said.

So far the main benefits of digital implementation seem to be in terms of internal efficiencies, productivity and »

ANN VEREECKE - PLEASED TO SEE THE LOGISTICS SECTOR IS ALREADY ON THE ROAD TO INDUSTRY

“INNOVATION IS BEING HASTENED BY THE ARRIVAL OF NEW COMPETITORS OFFERING DIGITAL SOLUTIONS”

customer service. There is less evidence of better asset utilisation and lower inventory levels, but it may be that more time is needed for these advantages to make themselves felt.

DIFFERENT VOICES

‘Supply Chain 4.0’ was also discussed by Luq Niazi, global managing director for the chemicals and petroleum industries at IBM, who began by noting that customers, aware of the opportunities offered by digitalisation, are expecting transformation. He described the four key innovations that form the foundations of the current revolution:

• Use of Cloud-based open-access tools to integrate data analysis and management both within and outside the organisation

• Use of the Internet of Things (IoT) to generate more data, in real time

• Development of cognitive computing (augmented intelligence) to unlock vast quantities of intelligence from unstructured data through machine learning (something that IBM is already doing successfully in the healthcare sector), and

• Use of Blockchain technologies to drive trust in digitised transaction workflows.

This last point was new to the conversation at EPCA but it is in fact fundamental to the potential to unlock self-governing cognitive business networks by streamlining the handling and transfer of documents and payments, Niazi said.

The tools are there, so what is holding industry back? Business leaders need to realise that they need a new focus, they need to recruit new types of expertise, they need to re-think corporate structures and adopt new ways of thinking and new investment strategies. Some businesses have already embarked on that journey.

Vereecke and Niazi were joined in a subsequent panel discussion by Klaus Rud Sejling, CEO of Damco, and Dr Frithjof Netzer, chief digital officer at BASF. Sejling advised petrochemical producers to be more demanding of their LSPs, saying: “You need to be on the Blockchain train”. Netzer agreed that Blockchain is a powerful tool, one that is revolutionary rather than evolutionary.

Vereecke brought things back to practical considerations, noting that the difficulty lies not in the technology being used, but in companies’ willingness to be open and collaborative, as this is the only way that the new tools can

generate the promised benefits. Sejling agreed that managers need to be prepared to move with speed and to accept failure along the way; this is crucial if innovation is going to happen. Also looking at things from a practical point of view, Netzler said that there is no way to stop the water level in the Rhine from rising or falling. What digitalisation can do is to make information on water levels available to all participants in the supply chain more quickly; cognitive computing will also be able to understand the implications of the information and make adjustments to the supply chain automatically.

Devos brought the session to a close, noting that EPCA is aiming to run a workshop on Logistics 4.0, including the use of Blockchain concepts, in the second quarter of 2018.

WHAT ABOUT THE WORKERS

EPCA’s Annual Meeting has also addressed issues surrounding talent and diversity in the workplace in recent years; these sessions have usually been surprising in the insights they deliver and this year’s was no exception. Indeed, it was remarkable that the talent and diversity session had so much in common with those looking at Industry 4.0 concepts in the petrochemical and logistics sectors. In particular, as Tom Crotty said in introducing »

JIM FITTERLING (CENTRE) EXPLAINED THAT NEW IDEAS

FROM THE TOP

the speakers, EPCA is now looking in particular at age diversity and cross-generational collaboration. “We need to push knowledge transfer,” he said. But companies also need to harness the IT skills found primarily among the so-called Millennial generation.

April Rinne, an “adviser and pathfinder”, took up the theme, noting that each industrial revolution has led to better productivity but also a loss of individual creativity. Companies are now beginning to break down the walls that keep their knowledge centres separate and to open up to creative networks. As part of that, there is a rapid increase in more “loosely attached” workers.

The petrochemical industry is well placed to benefit from Industry 4.0 changes, Rinne said. Its products will be needed by the new technology, which also relies on human innovation. On the other hand, the petrochemical industry has a reputation

of being very conservative – it needs to overcome that and encourage today’s youth to study ‘STEM’ subjects (science, technology, engineering and mathematics). Sadly, only 18 per cent of chemistry graduates go on to work in the chemical industry, noted the impressively coiffeured Mark Wolstenholme, executive director at EY.

Wolstenholme provided the audience with some findings from a study EY has conducted on age diversity and inclusion in the workplace, and those findings point to a very different corporate structure in the future. For instance, 42 per cent of executives surveyed by EY said that ‘contingent workers’ – also referred to as the ‘gig economy’ – are leading them to change their employment strategies; further, 70 per cent of young people said that flexibility is very important. As a result, Wolstenholme said, 70 per cent of jobs as we know them today will disappear within the next 20 years.

“Transformation is happening – the question is what you do with it,” observed Ester Baiget, business president of industrial solutions at Dow Europe. Petrochemical companies need

to look for the best talent – and not just the best talent within the industry.

VIEW FROM THE TOP EPCA’s Annual Meeting ends with a luncheon featuring a speaker from the top echelon and, once again, it came up trumps with Ban Ki-Moon, UN secretary-general for two terms from 2007 to 2016. He too addressed Industry 4.0 and what it means for the world: it is already creating new industries and making old industries more efficient and sustainable, he said.

But Ban concentrated his speech on sustainability issues: “Our climate is changing,” he said, “and much faster than expected.” The horrendous damage done to the US by Hurricane Harvey just before the EPCA meeting was in everyone’s minds and, as Ban observed, “The richest and most powerful country in the world finds itself helpless in the face of natural forces.” Ban said that all countries in the world need to pull together to achieve the Paris Agreement targets – and immediately. “There is no Planet B,” he said, “so there is no Plan B.”

Sustainable development goals rely on a partnership between public and private interests, especially multinational corporations. As such, Ban said, petrochemical companies have a big role to play. “If we all work together we will thrive,” he concluded, “despite the multiple threats we face.”

Bringing the event to a close, Tom Crotty announced that next year’s 52nd EPCA Annual Meeting will take place in Vienna from 7 to 10 October. Crotty also revealed that his successor as EPCA president is Marc Schuller, currently EPCA vice-president and executive vicepresident of Arkema.

“I am very pleased to take on this new responsibility and to continue the path Tom Crotty has brilliantly laid out as president of EPCA,” Schuller said. “I would like to build on the last 50 years and in partnership with EPCA’s member companies, we will continue to contribute to build sustainable and inclusive economic growth in the digital age.”

More details on next year’s EPCA Annual Meeting are already available on the Association’s website, www.epca.eu. HCB

TOM CROTTY (LEFT) HAD PLENTY OF FAREWELLS TO SAY AT THE END OF HIS TENURE AS PRESIDENT OF EPCA

IT’S ALL TECHNO

DEPOTS • THERE’S A NEW NAME IN MOERDIJK AND A NEW NAME IN THE GLOBAL TANK CONTAINER DEPOT BUSINESS. TECHNOPORT IS NOW OFFICIALLY OPEN FOR BUSINESS

IMAGINE THIS: YOU are one of the world’s largest operators of tank containers, with a rapidly growing fleet and an ever-increasing geographic spread of activity. You may have the highest quality tanks and a highly motivated sales force but, when it comes down to maximising tank utilisation, you are dependent on third parties to clean, maintain and repair your tanks.

Plenty of operators have found themselves in this position before and, for many, the answer is the same: build your own depots. Michael de Rijk, vice-president of Sinochem Logistics, was faced with the same issue and came to just that conclusion. And having made the decision to go ahead

with construction in 2016, the first TechnoPort tank depot opened this year.

The first TechnoPort is located in Moerdijk, the Netherlands. It sits by the water at one end of Middenweg, with a barge jetty alongside. Planned and built over the course of 18 months by TechnoPort in close collaboration with Gröninger Cleaning Systems under the watchful eyes of depot manager Rien van der Ree, TechnoPort Moerdijk offers three wash bays – two for chemicals and one for foodgrade tanks – along with four repair and maintenance bays, and four fully automated heating stations. The depot has already been audited and certified according to ISO 9001-2015 and has undergone assessment under the SQAS programme.

FIRST IN THE CHAIN

TechnoPort will add more depots across all continents over the next few years.

The experience gained during the Moerdijk project will help when it comes to building these new facilities; after all, building and running a depot is “a little bit different” to the office operations that de Rijk and his colleagues are used to.

So why start in Moerdijk? One reason must be that the port has in recent years been quietly developing a role as a vibrant entrepot for chemical logistics operators. A drive along Middenweg to the TechnoPort site passes the facilities of several tank container operators as well as packaging manufacturers, reconditioners, distributors, freight forwarders, logistics firms and recycling plants. Shell Chemical, LyondellBasell and Solvay are just a few of the chemical manufacturers with production facilities in the port. And it is well connected to the waterways system in the Netherlands and Belgium and to barge and rail terminals.

Moerdijk also benefits from its strategic location mid-way between Rotterdam and Antwerp and from its comparative lack of congestion, both on the roads and at its jetties. A lot of activity involves the transhipment of containerised cargo – including tank containers – from and between those major ports and onwards via inland waterways into the chemical heartland in Germany or by shortsea vessel to the UK and other parts of northern Europe.

The Moerdijk Port Authority was represented at the official opening of TechnoPort in October by its CEO, Ferdinand van den Oever, and its commercial director Manon Baartmans. Van den Oever said that, for the Authority, TechnoPort is part of a broader strategy to put in place the infrastructure needed to support industry – and the chemical industry in particular – and to help meet sustainability targets, not least the modal shift of freight from roads to inland waterways and rail transport.

During his speech at the opening, de Rijk stressed that the TechnoPort development would not have been possible without the support of the Port of Moerdijk. But it is now open for business and he invited tank owners and operators to come along and see what the depot can do for them. HCB

TECHNOPORT IS EQUIPPED WITH STATE-OF-THE ART CLEANING EQUIPMENT FROM GRÖNINGER

A LOUDER VOICE FOR ASIA

ASSOCIATIONS • THE MERGER OF ITCO AND @TCO PROMISES

chemical companies in China. Until the @tco scheme was developed there were no standards for tank depots in the region; some were doing what they could to provide a quality service but many others were clearly not.

A YEAR AGO, Reg Lee was re-elected as president of the International Tank Container Organisation (ITCO), a post he had left six years previously after a disagreement over the Organisation’s approach to Asia. Lee was convinced that Asia represents the future for the tank container business, not just in terms of tank manufacturing but also in terms of trade and tank employment.

Undaunted, Lee and technical director Graham Wood immediately formed the Asian Tank Container Organisation (@tco), with a clear mission to help promote tank container use in China and east and south-east Asia. A major part of that work was the establishment of a depot audit scheme, which aimed to set a quality benchmark for tank cleaning and repair equivalent to the standards observed in Europe and North America.

That audit scheme has been particularly successful, Lee says, with more than 25 depots having passed @tco’s strict inspection procedures and being entitled to display the @tco audit placard at their premises.

STILL THE VOICE FOR ASIA

Having taken up the reins once more at ITCO at the beginning of 2017, Lee promised to spend his two-year term bringing the two organisations together under a single name. He believes that having a full-time president – rather than one occupying the role alongside his or her normal corporate responsibilities – will allow The International Tank Container Organisation (which incorporates both ITCO and @tco) to make faster progress with its programmes. Lee’s re-appointment was also tacit admission on the part of ITCO that his ideas about Asia were right all along.

Lee also stresses that the two original logos will be used on the new website and the @tco depot audit programme will continue, with Graham Wood also promising to see it through to the end of 2018 in order to ensure a smooth handover.

Lee recalls that the @tco depot audit scheme was prompted by the Association of International Chemical Manufacturers (AICM), the trade body representing international

AICM also wanted the audits to be carried out by independent surveyors; existing surveyors were often regarded as being too close to the depots to give an objective view. There was, Lee said, an expectation in some quarters that the audit scheme would immediately bring Asian standards up to those common in Europe but it has not been as simple as that. For one thing, not all depots need to offer the same level of service – they provide what their customers need. That is reflected in the @tco audit certification system, which recognises different levels of capability.

Nevertheless, Lee says that Asia has achieved a pace of change over the past six years that it took Europe and North America three decades to work through. @tco has been able to bring the expertise of its board to bear not just on tank cleaning and repair standards but also on issues relating to the transport and use of tank containers and the safety of those who work with them.

BRINGING ASIA TO THE WORLD

Lee and Wood are now aiming to merge their experience with @tco back into the combined organisation. Most notably, Lee says, “Asia is where the market is; ITCO without Asia is going nowhere.” Moreover, the global business has to change as Asia changes. “Without Asia you’re just a local player,” Lee insists. But

A STRONGER VOICE FOR THE TANK CONTAINER INDUSTRY BUT @TCO’S WORK IN ASIA WILL CONTINUE, STRESSES REG LEE

he is also aware that doing business in Asia needs a different and more flexible approach compared to the more established markets.

Lee is aiming to have the two organisations fully integrated by the end of his tenure in December 2018. To that end, the combined organisation will be focusing on China in 2018 and will be holding two meetings in Asia: one alongside the Transport Logistic show in Shanghai in May and another in Singapore in November. The older markets will not be totally forgotten, though: there will be another meeting in Antwerp during the third quarter.

The transition to a combined organisation is, Lee says, “going remarkably well”. The process has been helped by the fact that ITCO and @tco share a lot of corporate representation. Most of the @tco board

members have colleagues on the ITCO board, for instance. Two joint board meetings have already been held, one in Europe and one in Singapore. All @tco members have been invited to move over to the combined organisation and many have already taken up that invitation. That message was reiterated at @tco’s final standalone meeting, which took place in November in Shanghai.

LOOK TO THE FUTURE

From the very beginning, @tco’s mission was to be the ‘voice for Asia’ and, Lee says, “We’re not walking away from that – we’re just adding the rest of the world.” There are, though, other missions to be put in place. For a start, Lee believes that the new organisation needs to make more effort to push information out to its membership and the wider world of tank users. To that end, the new website is currently being upgraded, and will carry both the ITCO and @tco logos.

Another task will be to leverage the work done to develop an e-learning program to help spread understanding of the tank container

concept and improve operating standards. Lee thinks all ITCO members should be given freer access to the e-learning program, if only to help educate those who are new to the industry. “They are going to play a big part in the future,” he says.

Quite clearly, a lot of those people coming new to the tank container industry are going to be located in Asia. @tco has made a start on its mission but it is not yet complete: Lee’s remarks at the first @tco meeting in Singapore in June 2011 are still valid.

In many parts of Asia steel drums still play a major role in the movement of liquid products, including dangerous goods. The tank container offers a much safer, efficient and cost-effective way of doing that. And, thanks in no small part to @tco’s efforts, there is now a much wider provision of the tank cleaning and repair services that are vital to ensure that tanks can be kept fully employed and can do their job with the highest levels of safety to people and the environment and with the greatest care for the products they are called on to carry. HCB www.itco.org

REG

(THIRD FROM

NEWS BULLETIN

TANKS & LOGISTICS

GAS TANKS FOR ALBATROSS

Albatross Tank-Leasing has begun receiving 140 new high pressure gas tanks from CIMC. The tanks, which have a working pressure of 34.5 bar, are zinc-lined to avoid shell corrosion and cargo contamination, and are fitted with a sump to enable complete cargo discharge. A spray bar is also installed, to allow better mixing of products when tanks are used for blending. The frame is designed to allow easy installation of the Albatross Sky GPS device, which can be fitted on customer request.

The arrival of the gas tanks follows swiftly after the introduction by Albatross of new 30-m3 and 35-m3 swap body tank containers to the European market over the course of the second half of 2017. Its first batch of standard newbuild tanks joined the fleet in January 2017.

Albatross Tank-Leasing was established in 2016 to handle the tank container rental and finance lease business of Sinochem International Logistics. It currently has more than 17,000 tanks at its disposal and has offices

in Germany, the Netherlands, Russia and the US as well as its headquarters in Shanghai. www.albatross-tanks.de

A THIRD DEPOT FOR THAILAND

SO Tank Cleaning Terminal has opened its third tank depot in Thailand. The new facility, located in the Hemaraj Industrial Estates in Sriracha, responds to growing demand for tank cleaning, repair, refurbishment, off-hiring and storage of tank containers in the country.

SO also operates depots in Bangplee and Laem Chabang. www.sot.co.th

LAABS CHANGES HANDS

Imperial Logistics has sold its Laabs Spedition subsidiary to Germany-based Boettger Group, which specialises in the transport of foodstuffs.

Laabs is now part of Boettger’s Fernlast Spedition unit, which handles liquid and granulated raw materials, almost doubling its tank and silo trailer fleet to 170 units. Laabs will continue to operate under its own name.

“With Laabs, we are able to bundle our strengths to better meet the changing market demand for bulk liquid food transportation and offer customers the right solutions,” says Alexander Mock, Boettger’s managing partner. Laabs was acquired by Imperial Logistics in July 2007 and has a fleet of 80 road tankers. www.boettgergruppe.com www.laabs.de

STOLT ON THE UP

Stolt Tank Containers has reported improved revenues and profits for the third quarter ended August 31, reflecting higher lease rates, improved demurrage, increased activity at the Shanghai-Stolt Logistics domestic business in China and higher revenues from the STC global depot network. Operating profit of $14.8m was up 8 per cent compared to the second quarter.

Niels G Stolt-Nielsen, CEO of parent Stolt-Nielsen Ltd, also notes lower empty repositioning costs and better returns from joint-venture depots. “We expect margins and utilisation to hold steady at current levels,” he adds.

www.stolt-nielsen.com

EUROTAINER ADDS COLOMBIA AGENT

Eurotainer US has extended its contract with APM Terminals to act as its exclusive agent for sales and marketing of the company’s tank container leasing services in Colombia. APM also represents Eurotainer in Chile and Bolivia.

APM Terminals has an experienced sales and customer service team with established connections to the chemical, mining, agriculture, energy, and food and beverage industries that make up the largest target markets for Eurotainer, the leasing company says. www.eurotainer.com

FIRST ETHANE BY TRUCK

Sunoco Partners Marketing & Terminals has opened a new truck loading rack at its Marcus

Hook, Pennsylvania facility to allow the distribution of ethane to research and industrial users by tank truck and tank container.

Ethane is delivered to the facility by pipeline from the shale fields in western Pennsylvania. Sunoco’s first major customer is Gas Innovations, based in LaPorte, Texas, which is using the Marcus Hook terminal as a point from which to supply customers throughout the US with refrigerated ethane, as well as compressed ethane in tube trailers and cylinders.

“For us, it complements our product line with a safe, secure, quality solution to provide ethane to our unique customer base,” says Ashley Madray, vice-president of Gas Innovations. “We are proud to be the first company in North America to ship refrigerated liquid ethane by truck.” www.energytransfer.com

BAYER ADOPTS HOYER TECH

Bayer CropScience has appointed Hoyer to equip all its containers with smart technology. Hoyer has been using the system to track and alert Bayer of container movements at its Dormagen headquarters in Germany but began the roll-out of the concept to Bayer’s worldwide operations in November, starting with a pilot project at the Kansas City location.

“We appreciate Hoyer as a reliable partner that provides smart technology for our ‘Connected Container’ project, enabling the integration of ERP data into the global container network,” says Thomas Dieckmann of Bayer’s supply chain production planning and execution unit.

Hoyer’s smart technology, developed in partnership with Intermodal Telematics, enables seamless monitoring of goods transported in tank containers at any defined point in time for customers. This includes not only monitoring the tank’s position but also the status of the transported goods with regard to their pressure, temperature, density parameters and filling level. “A non-invasive filling level measuring system developed

exclusively for Hoyer will solve a large number of technical challenges,” the company adds. www.hoyer-group.com

VTG GETS WASTE APPROVAL

VTG Rail Logistics has been successfully audited by TÜV Rheinland as a specialised carrier of hazardous waste in accordance with the German Ordinance on Specialised Waste Management Companies. The approval allows it to carry waste of all classes other than 1, 6.2 and 7 by rail within Germany.

VTG Rail Logistics has also set up a new subsidiary, Retrack GmbH, which will carry on the work of Bräunert Verwaltung and Bräunert Eisenbahnverkehr. VTG says the new unit, with its own pool of diesel and electric locos, will allow it to offer flexible rail services for both block trains and single wagons between all the most important economic centres in Europe. www.vtg.com

SUTTONS ON THE BRIDGE

Widnes-based Suttons was allowed a sneak preview of the new Mersey Gateway Bridge

before it opened to the public in mid-October. The company took one of its new Euro-6C tractor units onto the bridge, where Suttons will be a regular user.

“More than 55 years ago, Suttons vehicles were amongst the first to cross the existing Silver Jubilee Bridge,” said John Sutton, group CEO, who was there to see the event. “Now our trucks are once again leading the way, proudly crossing the new Mersey Gateway with the latest vehicle, which forms part of a £17m investment to improve and grow the fleet.

“The opening of the new bridge will hopefully remove the congestion this region has suffered from over the last few years,” John Sutton added. The company expects its vehicles to make around 30,000 crossings every year on the new bridge.

Alongside its latest vehicle, Suttons also brought along a 1920s-era Morris Flatbed truck and one of the tractors it painted with the Union Flag livery to mark the Queen’s diamond jubilee in 2012. www.suttonsgroup.com

RIGHT: SUTTONS SHOWED OFF ITS HERITAGE WITH THREE TRUCKS BEFORE THE OFFICIAL OPENING OF THE NEW MERSEY GATEWAY BRIDGE

FACTS, FIGURES AND THE FUTURE

CONFERENCE REPORT • FECC’S ANNUAL CONGRESS THIS YEAR LOOKED CLOSELY AT THE POTENTIAL IMPACT OF DIGITALISATION BUT ALSO AT WHAT IT IS THAT DISTRIBUTORS ACTUALLY DO

WHAT IS THE point of a chemical distributor? It is a question that has been asked by many over the years but the sector thrives, finding a way of offering a cost-effective service both up and down the supply chain.

It is a question that the European Association of Chemical Distributors (Fecc) had on its mind at its Annual Congress in Warsaw this year, where Dr Udo Jung, senior partner and managing director of the Boston Consulting Group (BCG)

in Frankfurt, gave delegates some interesting perspectives on the business.

Historically, chemical producers viewed distributors as “necessary evils”, Dr Jung, began. Their mantra used to by “only use them if it can’t be avoided”. That, however, has all changed. Many chemical producers now view distributors as an integrated element of their overall channel strategy and channel management. Leading chemical companies, he continued, employ differentiated models to

select and monitor distributors, including using distributors to operate a ‘lean model’ for their sales activities or as ‘growth engines’.

Moreover, chemical producers are increasingly building regional centres of excellence for distributor management and to professionalise their approach to selecting and monitoring distributors, although “at most chemical companies the individual business units remain ‘lead’”. That said, “process optimisation between chemical companies and distributors is often still a neglected area of value”, Dr Jung said. And when it comes to creating value for both the supplier and the customers, distributors can have an important role to play. Among other things, this includes their ability to offer efficient supply chain and logistics management; the provision of knowhow and resources for product development and own-brand formulations; and “efficient, best-cost sourcing of non-contract products”.

CHEMICAL CONSUMPTION

Moving on, Dr Jung explained that overall chemical industry consumption has grown significantly since 2009, increasing by 5.4 per cent to 2015. This is expected to continue into the future albeit at a slightly lower rate of 4.5 per cent between 2016 and 2022. Western Europe, though, will continue to lag behind other regions, growing over the forecast period by around 1.7 per cent compared to 2.7 per cent in North America, 6.4 per cent in China, 4.7 per cent in the rest of Asia Pacific and 4.1 per cent for the rest of the world. Importantly, the third-party chemical distribution sector “is outpacing overall chemical industry growth” by about 2.2 percentage points per annum.

Indeed, the share of third-party distributors is expected to increase to about 12 to13 per cent in 2022, he said. In terms of overall market compound annual growth rates (CAGRs), Jung revealed that between 2008 and 2009 the figure fell to -12.5 per cent, but during 2010 and 2015 it bounced back to 5.4 per cent and should be around 4.5 per cent during the period 2015-22. This compares to respective figures for direct distribution by suppliers of -11.8 per cent, 5.2 per cent and 4.3 per cent, and -13.3 per

cent, 7.4 per cent and 6.7 per cent for distribution undertaken by third parties.

As might be expected, there are significant regional differences within all this. In western Europe, the market for third-party chemical distribution has been slowed by “lower economic development”, although the rate of outsourcing is still increasing. In North America, the market is already highly developed with overall limited growth moving forward, Dr Jung said. The Chinese market, meanwhile, is supported by strong economic development, with the use of distributors “mandatory to serve a fragmented market with long distances”.

Elsewhere in the Asia-Pacific region there have been traditionally fewer distributors active in the market, although this has been changing in recent years and Dr Jung expected this trend to continue apace as the industry there matures. In the rest of the world, the third-party distribution market is being “fuelled by the growing economies of emerging markets”, thanks primarily to growth in South America.

Breaking this down further, Dr Jung explained that, within third-party distribution as a whole, the market for speciality chemicals accounts for about 48 per cent of the total and looks set to outgrow the commodity distribution sector by about 1.4 percentage points per annum over the period 2015 to 2022.

MARKET TRENDS

These market trends are being driven by end-industry specifics and market developments, Dr Jung continued, which has numerous implications for chemical distributors. First of all, both suppliers and customers alike are looking to streamline their relationship with distributors. To prosper, distributors must have provable capabilities in specific verticals and/or end industries. They must also build up a regional or

multi-regional footprint backed by a broad product portfolio “to become attractive for preferred partnerships”.

Principals, he said, often employ a two-layered distributor model to optimise their activities or encourage business units to centralise their distribution. Meanwhile, market consolidation is seeing international distributors expanding via mergers and acquisitions (M&As), “creating a sub-set of players with wide geographical knowledge”.

Distributors, Dr Jung continued, are increasingly seen by producers as strengthening the value chain position via value-added services. This means that “end-industry specific value added services [are] of growing relevance”. As such, the onus is on distributors to develop their technical capabilities and build application labs; increase the value they offer; and continuously broaden their range of services. Concurrent with this, increasing regulatory burdens are further driving the growth of large distributors. To survive, distributors must therefore ensure they have “strong regulatory capabilities” and “take advantage of M&A opportunities with smaller players”.

Despite ongoing consolidation, the thirdparty distribution market is still highly fragmented. For example, the top five players in Europe – Brenntag, Univar, Helm, IMCD and Biesterfeld – controlled just 21 per cent of market in 2010, rising to 26 per cent five years later. In North America, a fairly similar picture emerges. There, the top five firms – Brenntag, Univar, Helm, Nexeo Solutions and Azelis –

held a 32 per cent share of the pie in 2015, up from 30 per cent in 2010 (when Pimova held the number five spot instead of Azelis). In terms of figures, Dr Jung told delegates that between 2010 and 2015 the number of acquisitions per annum doubled from 11 to 22. Geographically, the bulk of these were completed in Europe, which racked up 33 acquisitions during the period out of a worldwide total of 98.

BUSINESS MODELS

There are three “archetypal business models” in chemical distribution, Dr Jung reported. In the first category, such companies as Barentz, IMCD and Azelis can be seen as espousing a model focused on speciality chemicals, which requires them to maintain “high-quality product baskets targeting specific segments’ needs”. This model also sees them “going deep in focus areas” and offering numerous formulations and value added services to customers. They are also highly flexible in terms of delivery and drop sizes.

Companies such as Helm, Nexeo and Solvadis, meanwhile, pursue a model that has a greater focus on commodity chemicals. As such, they generally distribute “bulk products with less variation” and have a “high focus on trading due to high price transparency”. Consequently, such models are “less flexible in delivery and drop size”, with such companies often utilising their own assets for storage and bulk-breaking.

A third group, typified by Brenntag and Univar, can be termed ‘full liners’, he said, as they maintain a “broad offering of »

speciality and commodity/base chemicals”. This requires “critical size in storage and logistics” as well as “pan-regional and partially global sourcing for non-contract products”, with their speciality products often grouped by industry vertical. At the same time, full liners employ sophisticated operating models as their speciality chemical operations need greater flexibility than the “more industrialised standard processes” for their commodity businesses.

SUCCESS FACTORS

In terms of success factors, Dr Jung told delegates that the “table stakes and overarching requirements” do not differ greatly from one business model to the other. All players, he said, require financial stability and a solid track record; clear health, safety, environmental and quality (HSEQ) standards; a local organisation coupled with entrepreneurship and fast decisions; excellence in supply chain management, process quality and systems; and a strategic mix of organic and non-organic growth.

However, if speciality distributors are to succeed, they also need “anchor products from flagship producers”; a deep knowledge in technical applications; strong and frequent access to local clients; supplier collaboration to shape their offering and development; and “pan-regional consistency versus local entrepreneurship”. For commodity distributors the vital elements include highly cost-efficient and scalable supply chain management and infrastructure and storage at prime locations. They also require a high network density in key regions; “global purchasing excellence”; and product-specific market and pricing intelligence. Globally leading full liners, on the other hand, have to be able to “manage differentiated business models for specialities and commodities”.

Most chemical producers, Dr Jung continued, “are defining clear and purposespecific business cases for the deployment of

distributors”. One clear driver for continued outsourcing he highlighted was the need to manage complexity and thus reduce the effort required to service small and subcritical customers (‘cutting off the tail end’) while avoiding customers “that don’t carry their weight”. Furthermore, the use of distributors can also greatly help them in reaching new customers, entering new markets and providing a host of additional services.

GOING DIGITAL

Turning to the issue of digitalisation, one of the key themes of the Fecc event, Dr Jung pondered whether digital technologies might not in time “disrupt the value chain and positioning of chemical distributors”. For instance, digitalisation could see more principals extending the economic reach of their direct sales through the opening of web shops. Similarly, there is a potential for logistics providers to move into “digital-enabled chemical distribution” coupled with the threat of “digital attackers” and aggregators, such as Amazon Business or Alibaba, entering the chemical distribution arena.

Already in the field of laboratory chemicals such disruption has arguably been realised, he said, citing for example BASF’s unveiling of an online shop aimed at small and mid-sized

Chinese customers. Sigma, likewise, has “developed an industry-leading e-commerce platform, cutting off principals from key accounts”. There is, Jung said, a huge prize waiting for any “true ‘platform builder’ in third-party chemical distribution”. The winning model, though, will have to combine “digital and ‘traditional’ assets”.

To this end, leading distributors are already “in a good starting position” thanks to their principal and customer access; ability to orchestrate logistics; and their HSEQ track record. Similarly, their “end industry knowledge and value added services” and “trusted company brands” are also clear boons, although so far no ‘true platform’ approach has yet to emerged among the sector. But will established distributors, he wondered, “seize the opportunity or will it be disrupted by digital attackers” like Amazon Business or Alibaba that ultimately take the digitalised lead? HCB

Other presentations relating to digitalisation in the chemical distribution sector can be found in the first two parts of HCB’s report on the 2017 Fecc Congress in the October and November issues. The 2018 Fecc Annual Congress will be on 4 to 6 June in Nice, France. Further information can be found at www.fecc-congress. com and www.fecc.org.

UDO JUNG PONDERED WHETHER DIGITAL-ENABLED

WILL DISRUPT

STRUCTURE

A QUALITY QUARTER

FINANCIALS • BRENNTAG IS LOOKING POSITIVE, BOTH WITH ITS LATEST QUARTERLY RESULTS AND ITS MOVE INTO A NEW HI-TECH HEADQUARTERS BUILDING IN ESSEN

BRENNTAG HAS CLOSED its third quarter books with a post-tax profit of €100.8m, up from €93.4m this time last year, from sales worth just under €2.9bn, themselves up 10.4 per cent year-on-year. At the same time, gross profit and operating EBITDA rose over the period by 4.3 per cent and 5.3 per cent, respectively, going from €593.9m and €205.2m to new figures of €619.4m and €216m.

We delivered a strong performance in the third quarter of 2017,” says CEO Steven Holland. “All regions contributed to this result and showed positive growth. North America

in particular delivered excellent earnings and strong organic growth. We are pleased with this encouraging performance from the group in the third quarter. Against this background, we are confirming the forecast given for 2017 as a whole.”

RESULTS BY REGION

Breaking this down geographically, Brenntag reveals that in its home territory of Europe, the Middle East and Africa (EMEA), operating gross profit rose 3.2 per cent year-on-year to €269.6m, with operating EBITDA increasing by 2.7 per cent to €90.6m. “In the third quarter, the region began to implement the announced efficiency programme, which is scheduled to be completed in the course of the year,” it says.

Across the Pond, its North America business reported “very encouraging” increases in earnings, driven primarily by “strong organic growth”. As such, operating gross profit rose 4.3 per cent over the period to reach €265.6m, while operating EBITDA climbed to €103.6m, a year-on-year increase of 7.6 per cent. Meanwhile, Brenntag also “lifted earnings in the still volatile Latin America region”. Thanks mainly to improving economic conditions in Brazil, it finished the quarter with a regional operating gross profit of €42m and an operating EBITDA of €10.6m. Respectively, these figures represent increases on the prior year quarter of 0.7 per cent and 12.8 per cent.

Similarly, Brenntag’s Asia Pacific operations also enjoyed an “encouraging” quarter. “This positive performance was supported both by organic growth and the successful integration of recent acquisitions,” the company says, noting that operating gross profit rose 10.1 per cent over the period to hit €51.1m concurrent with a 12.6-per-cent leap in operating EBITDA, which crossed the line at €18.8m.

FUTURE FORECAST

Looking to the future, the distributor reports that “in light of the third-quarter results and economic trends in the regions”, it is confirming its forecast for 2017 as a whole. Brenntag, it states, “continues to expect growth in its key performance indicators”, with operating EBITDA “still anticipated to be in the €820m to €850m range”. While the future remains unwritten, one thing that seems certain is that when it comes to closing its 2017 books, the company will be firmly ensconced in its new corporate headquarters, the House of Elements in Essen, having now officially taken charge of the keys to this purpose-built six-storey building.

“The new building provided Brenntag with an opportunity to design the House of Elements according to its own requirements,” Holland says. “We’ve made good use of this: the result is a representative, forward-looking and sustainable company headquarters that offers our employees an attractive, modern working environment. We’ll continue to successfully advance our company’s development in this shared location.” HCB www.brenntag.com

BRENNTAG IS GETTING PREPARED FOR THE FUTURE WITH A NEW HQ AND IMPROVING RETURNS

A LOOK AT THE BOOKS

Steve Newlin. “The work our people did in preparation for and in the aftermath of the hurricanes and earthquakes that tragically struck last quarter is truly commendable. Our teams worked with our supplier partners to mitigate shortages that kept our customers up and running, highlighting the true value a leading global distributor with scale advantages like Univar brings.”

temporary closure of Univar sites, the impact of lost business to customers who were unable to operate and supply disruptions from Gulf Coast producers”.

HEALTHY INCREASES

UNIVAR HAS ANNOUNCED a third-quarter net income of $38.9m, compared to a net loss of $63m 12 months ago, from relatively stable net sales of around $2bn. “Our execution is improving and we are building momentum to become the kind of company that consistently delivers double-digit earnings growth despite unforeseen events,” says chairman and CEO

Breaking these figures down geographically, Univar reports that in its home country of the US it achieved net sales for the quarter of $1.2bn, with gross profit increasing 1.5 per cent year-on-year to $273.4m. At the same time, adjusted EBITDA came in “about even with last year” at $90.7m, having been “negatively impacted, net of benefits, by roughly $6m as a result of Hurricanes Harvey and Irma”. The majority of this impact, it says, “was from the

Over in Canada, net sales increased by a healthy 15 per cent over the period to reach $299.9m, “driven by higher average selling prices along with an increase in volumes, which benefited from a recovery in the Canadian energy and mining sectors”. The business also saw its gross profit rise 1.1 per cent to $56.2m, although adjusted EBITDA dropped 1.5 per cent to $25.6m. Across the Atlantic in Europe, the Middle East and Africa (EMEA), things proved even rosier: net sales increased 10.8 per cent to $456.9m; gross profit 10.9 per cent to $102.9m; and adjusted EBITDA 16.5 per cent to $33.2m.

As for the company’s Rest of World segment, net sales increased 2.5 per cent year-on-year to $106.9m, with Univar’s Latin American operations impacted by both Hurricane Harvey and recent earthquakes in Mexico, “which led to shortages of products from suppliers and chemical price increases”. That said, “improved sales force execution and cost reductions in Latin America and increased profitability in Asia Pacific”, helped the segment to close the quarter with a gross profit of $22.2m and an adjusted EBITDA $9.3m, representing respective increases on the prior year quarter of 9.3 per cent and 34.8 per cent.

ALL THE EIGHTS

Another distributor with a broad global footprint is Netherlands-headquartered IMCD, which has announced a nine-months net result before amortisation and non-recurring items of €85.5m ($100.9m), up 8 per cent on the €79.2m achieved this time last year, from revenues worth €1.4bn, themselves also up 8 per cent year-on-year. “Our nine months’ results are in line with what we reported earlier this year: strong growth of EBITA »

FINANCIALS • CHEMICAL DISTRIBUTORS AROUND THE WORLD FACE A RANGE OF HEADWINDS BUT RECENT RESULTS FROM LEADING PLAYERS ARE MOSTLY TINGED WITH OPTIMISM

DISTRIBUTOR PROFITABILITY IS INCREASINGLY LINKED TO THE ABILITY TO PROVIDE VALUE-ADDING SERVICES TO CLIENTS AND PRINCIPALS ALIKE

and cash flow,” says CEO Piet van der Slikke. “The acquisition of LV Lomas closed in September and in close cooperation with the current management of Lomas, we are making good progress to integrate the business into IMCD with the goal of building a strong North American organisation.”

Following suit, the company’ EMEA operations also saw their revenues rise 8 per cent over the period, up from €805.5m to €871.9m. Better still, gross profit increased 10 per cent to €209m, while operating EBITA jumped 13 per cent, from €77.6m to €87.9m. These figures, IMCD notes, include the results of Milan-based Neuvendis, which it acquired in June. “Neuvendis focuses on the sales and distribution of speciality chemicals in Italy, in particular for the construction and coatings markets. In 2016, Neuvendis generated revenues of €26.3m with 20 employees,” it says.

ASIA AND THE AMERICAS

Further east in Asia Pacific, revenues of €236.7m “remained at the same level as in the first nine months of 2016”. Nonetheless, gross profit increased 10 per cent year-on-year to €48.9m, while operating EBITA rose by 1 per cent, from €20.8m to €21m. In the Americas, on the other hand, revenue growth hit 15 per cent over the period, reaching €302.7m concurrent with a 15 per cent increase in gross profit, which totalled €60.1m compared to €52.1m 12 months previously. Operating EBITA, meanwhile, rose by 4 per cent over the period to €26m. These results, IMCD reveals, were aided by the acquisition of Texas-based Bossco Industries in July and the aforementioned purchase of Canada’s LV Lomas.

Noting that Bossco, which generated revenues of $11m in 2016, has now been fully integrated into IMCD’s existing operations in the US, the company states that the acquisition of Lomas “will provide IMCD a presence in Canada in all relevant core markets and will further strengthen IMCD’s organisation in

the US”. With around 280 employees, Lomas, it says, generated revenues of C$383m in 2016, with the acquisition “financed by available cash and existing bank facilities”.

NEWS FROM THE FUTURE

For some companies, though, it’s 2018 already, with US-headquartered Aceto, for instance, announcing a first-quarter net income of $0.5m. This, it says, marks a drop of 89.6 per cent from the $4.4m achieved 12 months ago and came about despite a 44.7 per cent increase in sales over the period, which went from $128m to $185.3m. “While our first-quarter results were largely in line with our expectations and we still plan to launch 15 to 20 products in fiscal 2018, the timing of some of our product launches will be delayed due to API constraints and technical challenges, issues which we expect to fully resolve as the year progresses,” CEO William C Kennally III says.

Meanwhile, US-based Hawkins has posted second-quarter sales of $125.4m, an increase of 3.4 per cent on the $121.3m achieved a year ago. Nevertheless, the company saw its net income over the period drop from $7.2m to

$5.2m. “Our second quarter and year-to-date results were negatively impacted by two key factors. The first key factor was investments made to facilitate future growth in all parts of our company and to comply with increased customer and regulatory requirements,” says CEO and president Patrick Hawkins. “The investments in people and equipment were necessary for us to continue to offer best-inclass service and manufacturing operations. We believe most of these investments are behind us and we remain focused on controlling our costs.”

“The second key factor impacting our results was rapidly rising material costs and competitive pressures that limited our ability to pass all of these cost increases along to our customers,” he continues. “We have seen strong sales of certain higher margin specialty products that has offset some of the impact of competitive pricing pressures and continue to work to expand our offerings to bring new applications and opportunities to market.” HCB www.univar.com www.imcdgroup.com www.aceto.com www.hawkinsinc.com

NEWS BULLETIN

CHEMICAL DISTRIBUTION

UK OPTIMISM EVAPORATES

The UK Chemical Business Association’s (CBA) latest Supply Chain Trends Survey reveals that order books, current sales and sales margins have all shown “a downward trend” over the last three months. “The positive trend in order books and sales reported in July 2017 appears to have evaporated,” CBA says. “Though still remaining positive, their momentum has slowed and, in relation to order books, weakened significantly. The outlook for future sales also remains uncertain whilst the industry expects to create more jobs over the next three months.”

Conducted during the three weeks between 23 October and 10 November, the survey’s findings are based on responses from 56 member companies, with CBA asking firms to appraise key commercial criteria on a ‘better–worse–same’ basis compared to the previous three months. To measure short-term trends, the analysis ignores responses answering ‘same’ and focuses instead on the positive or negative balance provided by the difference between the ‘better-worse’ responses.

In terms of current order books, the survey found a positive balance of +14 per cent, “a significant decline” from the +54 per cent recorded in the last survey in July. Mirroring the trend with order books, current sales volumes, CBA says, “continue to show a positive balance of +11 per cent, though this represents a marked slowdown to the positive balance of +51 per cent” revealed in the previous poll. Future sales, though, “remain in positive territory at +14 per cent, roughly the same as [the +16 per cent] reported in July”.

Meanwhile, current sales margins “have declined with a negative balance of -12 per cent and member companies expect this trend

to continue at least for the next three months as they also expect a further 12 per cent decline in future sales margins”. Nevertheless, “member companies remain positive about employment levels”, with the current survey showing

“CALDIC TO BUY ELASTOMERICS

Caldic UK has signed an agreement to acquire Macclesfield-based Elastomerics, which specialises in the distribution of polymers and additives to the surface coatings, plastics, rubber, adhesives and sealants sectors. “The Elastomerics product portfolio perfectly complements our existing business by expanding our speciality product offering and gives us a much stronger presence in our focus markets,” says Caldic UK managing director Philip Robinson. “Whilst we already have business in these markets, this acquisition enables us to offer a comprehensive portfolio to our customers, backed up by the excellent service and technical expertise of the Elastomerics team.”

Meanwhile, Rudi Appels, formerly solvents division manager at Caldic Belgium, has been promoted to the post of managing director of Caldic Chemie. “Rudi officially started on 1 October 2017 and comes with many years

of experience in the chemical industry,” the company says. “Together with the Belgian solvents team, he created substantial growth for the division based on strong relationships with customers and suppliers. With the appointment of Rudi Appels, we are looking forward to continue and further expand the Caldic Chemie business.”

www.caldic.com

BIESTERFELD REORGANISES FOR GROWTH

Biesterfeld Spezialchemie is creating a new business unit for healthcare distribution as part of an ongoing drive to develop its market segment focus. “The healthcare market is influenced by mega trends that will have a crucial impact on society, which makes it an attractive growth market for us,” says managing director Peter Wilkes. “We understand the exceptionally stringent requirements in this segment and we have aligned our distribution business accordingly. Setting up this business unit is an important step in our strategy of delivering competent, intensive and highly focused service to very demanding market segments.”

www.biesterfeld-spezialchemie.com

ICS LEADS CONSOLIDATION

ACQUISITIONS • FOLLOWING A NEW INJECTION OF EQUITY, INDUSTRIAL CONTAINER SERVICES HAS MADE TWO INTERESTING ACQUISITIONS OF ITS OWN IN RECENT MONTHS

FLORIDA-HEADQUARTERED INDUSTRIAL

Container Services (ICS) has acquired the steel drum reconditioning and recycling operations of Michigan-based DeWitt Barrels and DBI Recycling. The acquisition for an undisclosed sum includes all the machinery, equipment and inventory at the two facilities, with the acquired businesses now set to become an operating entity of ICS. “The acquisition of DeWitt Barrels is yet another important step in our evolution as a full-service solutions provider,” says ICS president and CEO Charles Veniez.

“With the addition of DeWitt’s Marne-based intermediate bulk container (IBC) and poly drum capabilities to our already robust steel drum and distribution platform in the upper Midwest, we are now able to offer a full suite of

products to this very important marketplace,” he continues. “We are pleased to welcome the DeWitt employees into the ICS family and look forward to their help in supporting our mission to provide customers with the highest quality products, the most dependable service and the strictest environmental standards found anywhere in the industrial packaging industry.”

“We are proud to announce that our 124-year-old family business has joined forces with the ICS group of companies,” adds DeWitt president Peter DeWitt. “Along with my brothers Tim and Michael, I would like to thank all of our customers for their many years of support. Knowing that Jason DeWitt will remain with ICS as the facility manager of the Marne plant means that our long and proud family tradition will carry on under the ICS banner.”

MONEY FOR GROWTH

The deal marks the second acquisition by ICS in recent months, having in August bought

the steel drum reconditioning and logistics operations of Alabama’s Buckner Barrel Sales Corporation. “The acquisition of the Buckner Barrels businesses complements the ICS portfolio in many interesting ways,” Veniez states. “With the addition of Buckner’s state-of-the-art facility in Springville, Alabama, ICS is now able to offer top quality reconditioned products and commercial logistics services to a critical geographic area that was missing from our portfolio. The addition of the Buckner Barrel workforce and facilities into the ICS platform creates tremendous opportunity for our customers, employees and suppliers alike.”

These two acquisitions follow on from a change of ownership at ICS in April 2017. It was acquired from affiliates of the Aurora Capital Group by funds advised by private investment firm Centerbridge Partners. “ICS is a market leader in the North American industrial container reconditioning services industry and provides a differentiated value proposition to its customers,” says Centerbridge senior managing director Kyle Cruz. “We believe this differentiation is a foundation for further growth. We are excited to partner with [Veniez], his senior management team and the 1,700 employees of ICS to support the company in the years ahead.”

ICS describes itself as “the largest provider of reusable container solutions in North America”. Through multiple brands, the company operates a network of more than 50 strategically located facilities across 20 US states and six Canadian provinces. Striving to be “the supplier of choice for high-quality, environmentally-responsible container solutions”, it offers “unparalleled expertise with over 100 years of experience in the industrial container space and is focused on anticipating customer needs and exceeding expectations”. As such, the company provides customers with “the most complete container management systems available, including reconditioning, manufacturing, distribution, used container collection and recycling services for all major industrial packages”. HCB www.iconserv.com www.dewittbarrels.com www.centerbridge.com

INTEGRITY ASSURED

CLOSURES • SCHÜTZ HAS TAKEN STEPS TO ENSURE GREATER INTEGRITY OF PRODUCT SHIPPED IN ITS PLATICS DRUMS WITH A NEW BUNG CAP SYSTEM AND INNER LAYER

GERMANY’S SCHÜTZ HAS unveiled a new bung cap system for plastics drums –Automatic Lock – which consists of a plug and a tamper-proof sealing cap. “The outstanding feature of the system is that it cannot be opened without breaking the seal cap as the inner seal ring is firmly incorporated in the ring,” the company says. As a result, the filling product is fully protected against unwanted discharge or contamination. The seal cap is available for use with a variety of different bung sizes and can be supplied in either red or white, as required.

“The seal cap can be fitted automatically or manually,” Schütz states. “First, the seal cap is placed on the bung; it centres itself automatically due to the position of the snap latches. Light pressure on the positioned seal cap makes the locking ring snap into place behind the snap latches in the bung. The rigid construction ensures the lock remains securely in place once fitted.”

EASY TO USE

Furthermore, the plastics tab connectors on the cap and the inner seal ring tear when the cap is opened. The ring is perforated, making it easy for the operator to lift off the cap. “The cap,” Schütz says, “is opened and lifted off in a single movement by pulling on the seal cap ring pull, allowing the bung to be unscrewed and the contents to be removed.”

“Automatic Lock is the only capping system that is suitable for use with automatic drum

filling systems and it offers numerous other advantages over conventional solutions,” the company asserts. “In contrast, standard plastics caps only close the bung opening without providing a seal of originality, meaning that tampering can remain undetected. With Automatic Lock the seal cap is held by the plug and not by the bung. The broken seal cannot be repaired and any tampering is instantly visible.”

Although there are steel caps available on the market that are also fitted with a seal function to prevent tampering, the new plastics system, Schütz says, offers the key advantages of being both “hygienic and non-corrosive”. Consequently, Automatic Lock is fully certified for use with the company’s Foodcert drums for food applications. “In addition, the new sealing

system is exceptionally user-friendly: the integrated ring pull does not require an extra tool for opening, as is the case with steel sealing caps,” it says.

NEW INNER LAYERS

In other news, Schütz reports that its F1 and S-DS1 plastics drums can now be supplied with an optional natural inside layer. “The inner layer consists of the same natural, high-quality HDPE material as the inner bottles of the Schütz Ecobulk intermediate bulk container (IBC),” it says, adding that this new feature is based on the company’s Security-Layer technology, “which allows several functional layers to be extruded simultaneously”.

This technological development, the company continues, increases the range of applications its plastics drums can be used for “to equal that” of its IBCs, giving customers greater flexibility when it comes to their choice of packaging. “Regardless of whether a product is packed in an Ecobulk or [plastics] drums, the same material means identical product compatibility,” it says. “As several factors influence the choice of packaging, the new layer simplifies matters: products that have been filled in IBCs can, in most cases, simply be transferred to drums.” HCB www.schuetz.net

NEW AUTOMATIC LOCK FROM SCHÜTZ PROVIDES TAMPER-EVIDENT SECURITY

INDUSTRIAL PACKAGING

MAJOR PLASTICS DRUM PRODUCERS

PARADIGM FOR PACKAGING

Durban-based Paradigm Packaging reports healthy ongoing demand for its products, citing recent Deloitte & Touche research that identifies the plastics drum market as growing by around 2 per cent per annum in southern Africa. Working in partnership with Germany’s Schütz, the company is readily able to supply UN-approved F1 plastics drums to customers drawn largely from the local petrochemical, food, beverage, pharmaceutical, agrochemicals, coatings and adhesives sectors.

“As much as the sectors won’t change [over the coming year], new products will be coming into the market that will increase certain sector market share,” Paradigm says, noting “an increased demand for premium packaging” and “an increased need for sustainability and innovation” as currently aiding the market.

Additionally, the company’s range of products also encompasses Schütz intermediate bulk containers (IBCs), including the Ecobulk SX-EX model that, designed for the transport of flammable liquids, is “suitable for EX Zones 1 and 2”. Furthermore, Paradigm can greatly help customers with used packagings on their hands through access to the Schütz Global Ticket System, which offers “the free collection and environmentally-friendly reconditioning of empty IBCs”. On top of this it also offers “the servicing of a customer’s pool of IBCs” with the “eco-efficient reconditioning” of units.

Currently “in the process of acquiring an Ecovardis rating/certification”, Paradigm adheres “to both local and international” rules and legislation, describing Schütz as “a trusted brand in industrial packaging”. Looking to the future, the company reports that “the market is in a constant state of growth as more customers change over from plastics drums into IBCs”. www.schuetz-packaging.net/paradigm-south-africa

COUNTRY/COMPANY

COUNTRY/COMPANY

DRUM PRODUCERS (continued)

MAUSER SHUTTERS OHIO PLANT

Mauser has announced the closure of its steel drum plant in Gahanna, near Columbus, Ohio.

“After extensive analysis and major investments, Mauser USA completed its reallocation of steel drum manufacturing capabilities to better supply North American customers as efficiently and reliably as possible,” the company says, adding that it has “been the largest manufacturer of steel drums in North America” since its acquisition of Berenfield Containers in April 2016.

“This was a very difficult decision to make as our Columbus plant has made tremendous progress in terms of safety, quality and productivity over the last year. We are very proud of our employees’ accomplishments and this decision is in no way reflective of their efforts,” says Mauser USA president and CEO Glenn Frommer. Division general manager Mark Sullivan adds that the company will provide opportunities for the plant’s employees to apply for positions at other Ohio-based company operations, noting that several employees have already been offered similar roles to those they previously performed at Gahanna. www.mausergroup.com

CURTEC STRENGTHENS US ARM

Dutch plastics drums manufacturer CurTec has named Chuck Harrison and Sean McFeely as,

COUNTRY/COMPANY

(continued)

respectively, its new business development manager and inside sales representative for its North American operations. “CurTec is growing,” the company says. “Providing the best possible packaging solutions to the North American pharma, food and specialty chemicals industry is among our main goals. To enable further growth, CurTec has hired two new staff members to expand [its] US sales team.”

Harrison, the company says, commands more than 20 years’ experience in technical sales, sales management, global key accounts and account management and “has a chemical engineering education with some Masters work with finance and valuation for business applications”. McFeely, meanwhile, “comes from a product design engineer background and has many years of non-profit leadership experience as well, including a Masters in Organizational Leadership focused on innovation”. He most recently worked in product development, marketing and application engineering “for two other B2B companies with technical product lines”. www.curtec.com

CURTEC HAS ADDED TO ITS NORTH AMERICAN TEAM TO HELP HANDLE GROWING DEMAND FOR ITS PRODUCTS IN THE PHARMA, FOOD AND SPECIALITY CHEMICAL SECTORS

MOVE THEM DRUMS!

EQUIPMENT • DRUM HANDLING EQUIPMENT NEEDS TO BE CAREFULLY SELECTED IF IT IS TO DO ITS JOB PROPERLY. STS BESPOKE HANDLING EQUIPMENT HAS A NEW WEBSITE TO HELP

CORNWALL, UK-BASED STS has unveiled a revamped website that allows visitors to conveniently view the company’s extensive range of drum handling equipment. “We’ve been designing and building high-quality equipment for 17 years, setting the standard in the manual handling industry,” the company says. “Here at STS we strive to make all our products both versatile and universal. The products we manufacture allow companies to handle a wide range of drum types and sizes; we pride ourselves on this unique feature. When we design handling products we expect the equipment to be in use on the factory floor for decades, not just years.”

“When searching for drum-handling equipment, it’s important to consider the variety of tasks you’ll need the equipment to fulfil as your organisation grows. Buying highly versatile handling equipment allows production managers to future-proof aspects of production that may evolve as the company expands,” it states. “With the rise in e-commerce it can be all too easy to jump into purchasing a piece of drum-handling equipment online that isn’t a best fit. Once purchased, equipment can lose its value to the company when the job that it was bought for takes a different path.”

To avoid all this, STS works closely with its customers to establish their particular requirements and ensure they get the right product for their needs. Indeed, to this end, the company even offers a range of trial drum lifters and trolleys to allow customers to field

test systems and thus ascertain whether a particular item of equipment is suitable or not.

ONE SIZE DOES NOT FIT ALL

Furthermore, STS is keen to make sure its systems keep abreast of wider changes taking place within the industrial packaging arena.

“Industrial drums come in many different shapes, sizes and materials. Traditionally, 200 litres (55 US gallons) was the standard drum capacity; nowadays drums range from 10 litres all the way up to 220-litre models,” it says, noting that drum manufacturers “are always creating new designs to maximise transport efficiency” and functionality. “When it comes to manual handling, manufacturers of equipment are rarely consulted on how drums will be handled once in use. Here at STS we carry out extensive research into drums so that the equipment we produce stands at the forefront of the handling industry.”

A good example of this is the L-ring (tighthead) plastics drum. “Traditionally, these drums were provided in a 200-litre specification. In recent times, a 220-litre model variant, which is taller than the smaller drum, has become more popular. As such, you might need to assess older drum-handling equipment to make sure it can handle both 200- and 220-litre drums safely and within the UK Manual Handling Operations Regulations (MHOR).”

In addition to the DTC01 universal drum trolley, which boasts an ergonomic design that allows users to move differently sized drums “weighing up to 350 kg easily and comfortably”, the STS portfolio of standard systems includes drum rotators, drum depalletisers and drum cradles as well as end-over-end drum mixers. Moreover, the company, as its name suggests, also regularly undertakes bespoke projects to meet often very highly demanding criteria.

Indeed, the company was recently tasked with developing an extremely versatile drum tipper for the UK manufacturing industry. “Our client needed a fully powered model which could clamp, lift and rotate drums ranging from 25 to 220 litres,” it reports. “As many drums are being handled each day, the customer also requested a power-drive system be fitted to the tipper, [which] is great for when drums need to be moved a large distance before emptying.” HCB www.sts-trolleys.co.uk

WHERE TO NEXT?

ANALYSIS • CURRENT WEAKNESS IN THE VLGC MARKET

SHOULD NOT LAST TOO MUCH LONGER, GIVEN CONTINUED STRENGTH IN LPG DEMAND GROWTH IN CHINA AND INDIA

THE LPG TANKER business has been through a massive period of change over the past ten years. Continued industrialisation in China and rising affluence in India have sucked in increasing volumes of LPG, with the new production and export streams fed by North American shale gas picking up a lot of this new demand.

Prospects of continued growth led many in the LPG tanker business to invest in new tonnage, particularly when very large gas carriers (VLGCs) were earning rates at the very top of the market. However, the arrival of all that new carrying capacity has since then tipped the market into a correspondingly deep slump.

The question now being asked is this: when will the next upturn come? What can tanker owners and their investors expect of the LPG business in the near to medium term?

Those questions were answered to some extent by Martin Ackermann, CEO of BW LPG, at the 30th World LPG Forum this past October. As boss of one of the largest and most long-established VLGC operators in the world, he is well placed to comment and his figures revealed some pertinent insights.

TRADING IN LPG

Between 2011 and 2016, global LPG trade grew at an average annual rate of 9 per cent, rising from under 60 m tonnes (mt) in 2011

to more than 90 mt last year; 2017 is expected to see liftings close to 93 mt, though the pace of growth has slowed since 2015.

Over the same period, exports from the Middle East have grown at an average annual rate of around 3 per cent, while US exports have witnessed an astonishing annual growth of some 50 per cent. In 2011, Middle East exports amounted to close to 35 mt, while those from the US were just 3.3 mt; US exports this year are projected to be around 30 mt, only just shy of the 36.6 mt expected to be lifted from the Middle East.

Those numbers make it clear that the US is currently meeting almost all the incremental demand for LPG. This is good news for LPG tanker operators, as US exports to Asia generate higher tonne-mile demand than those from the Middle East. That 50 per cent annualised growth in US export volumes over the past six years translated into a 78 per cent annualised growth in tonne-mile demand.

However, while around 50 per cent of US exports in 2017 have headed to Asia, most of this volume is now going via the Panama Canal, following the enlargement of the Canal’s locks. That has had a negative effect on tonne-mile demand compared to the Cape route that accounted for most »

of the US exports to Asia up to 2016. The switch to the shorter route did, though, make it more viable to trade US LPG to Asia at a time when arbitrage was being squeezed.

During the first half of 2017, Ackermann noted, the US accounted for 32 per cent of global LPG seaborne exports, with the Middle East still ahead at 40 per cent. The North Sea is comparatively stable, generating 10 per cent of global trade, while the Mediterranean’s share has slipped to 8 per cent. While US LPG production has been rising, domestic demand has been virtually flat since 2013, leaving more product available for export. Those trends are expected to continue in the near term, although the pace of output growth is forecast to slow in 2018.

Another salient factor in the US LPG market this year has been that flatter production growth, combined with falling stock levels as a result of increased export volumes, has pushed up domestic prices to historic levels. As a consequence, the Far East-US propane price spread has been tight throughout 2017, offering a margin for freight that is well below breakeven costs for LPG tanker owners.

WHERE’S THE DEMAND?

As indicated earlier, much of the increasing demand that is driving this expansion in trade volumes is coming from China and India. China’s imports in the first half of 2017 amounted to 9.04 mt, 16 per cent up on the year earlier. Increasing use of propane dehydrogenation (PDH) in the production of propylene lies behind much of this rise: China now has some 4.6m tpa PDH capacity, due to rise to 6.2m tpa next year after another two plants come onstream.

That pace of growth is being supported by price movements, Ackermann illustrated. Propane and propylene prices diverged during 2016 and are expected to continue to do so into 2018 and perhaps beyond; this makes PDH output economic even when delivered LPG prices are high.

India’s imports of LPG in the first half of 2017 amounted to 5.38 mt, 15 per cent higher than a year earlier. In contrast to China, India’s rising consumption derives largely from more widespread use of LPG in households; the government has pledged to provide 50 million new LPG connections to poor families by the end of 2018, of which 16 million had been put in place by the end of 2016. Ackermann noted that the Indian government is currently talking about expanding this target to 100 million homes by 2020.

At present, retail demand for LPG accounts for around 90 per cent of total Indian consumption and Ackermann believes there is strong upside potential as current per capita consumption remains well below the global average. If that upside is realised, he said, India could need to import a further 9.3m tpa.

By contrast with China and India, imports into the mature markets in Asia is essentially flat. South Korea imported 3.24 mt in the first half of 2017, compared to 3.20 mt in the first half of 2016, despite an increase in import volumes in the first quarter of 2017 driven by inventory restocking. Similarly, Japanese imports in the first

half of this year amounted to 5.79 mt, only 2.5 per cent higher than a year earlier.

BACK TO BALANCE

The final part of Ackermann’s presentation looked at the development of the VLGC fleet. Remarkably, the size of the fleet is projected to almost double between 2011 and 2020, rising from 140 ships to 278. Fleet expansion was particularly rapid in 2015 and 2016, averaging 21 per cent growth in those two years, although the pace of new deliveries has tailed off since then. Barring any new contracting, construction will fall yet further out to 2020 – although Vitol has recently declared two options for 2019 delivery, so the picture is not clear cut.

There was no scrapping of VLGCs between 2012 and 2015 and not a lot since then. LPG carriers can trade for a long time – 25 years tends to be looked on as a minimum rather than a target – and there are currently not a lot of potential candidates for demolition.

Nevertheless, Ackermann said, with fleet growth likely to be limited over the near term, the VLGC supply/demand balance should come back into equilibrium in 2018, which will help freight rates recover. HCB

SWEAT THE SMALL STUFF

RESULTS • WHILE OWNERS OF LARGE GAS CARRIERS ARE SITTING ON THEIR HANDS WAITING FOR THE MARKET TO RECOVER, FULLY PRESSURISED TANKERS ARE ALREADY ON THE UP

THE MARKET FOR smaller fully pressurised LPG tankers is bucking the trend seen elsewhere in the gas shipping business. Epic Gas, one of the larger players at the smaller end of the market, reports an “encouraging period” since the middle of 2017, with market rates improving consistently.

Comparing the third quarter of 2017 with the year before, Epic says market rates for 3,500 m3 and 5,000 m3 carriers were 25 per cent higher, though those for 7,500 m3 were relatively flat and its largest ships, of some 11,000 m3, experienced a 6 per cent decline in rates.

Nevertheless, those rates are all at the lower end of a ten-year range, which hit its lowest point through 2015 and 2016. The recent upturn in earnings for smaller vessels reflects reduced supply of tonnage in the market, following significant rates of demolition over the past four years. Indeed, Epic says that two fully pressurised and ten small semi-refrigerated ships were scrapped in the first nine months of 2017; these had an average age of 28.5 years and there are another 20 small LPG tankers of a similar age still trading.

Moreover, a lack of new contracting in recent years means that, as at the end of the third quarter, there were only eight fully pressurised LPG tankers on order, compared to an operating fleet of 327 vessels. At some

2 per cent of the current fleet, that is a very low figure and much lower than for other LPG tanker segments.

WORK TO DO

There is also more work for fully pressurised ships at present. Epic Gas has, for instance, had great success in the LPG break bulk business, carrying out 113 ship-to-ship (STS) transfers during the third quarter – a figure nearly three times that of the same period a year earlier. “We have seen steady growth in STS activity off West Africa, where we have almost doubled our operations compared to

the previous quarter,” says Epic. Most business remains east of Suez, though, with nearly half of Epic’s STS operations being carried out off Malé or Singapore to supply demand centres such as Sri Lanka and Bangladesh, which lack the port facilities suitable for berthing larger gas ships.

Epic’s larger fully pressurised ships trading west of Suez have found market conditions tougher lately. Rising US LPG prices have cut into exports to the Mediterranean and West Africa, although the local trades to Central America remain strong. There was also the damage to infrastructure caused by Hurricane Harvey to contend with.

As a result of these market changes, while Epic Gas managed to increase revenues compared to third quarter 2016, higher operating expenses and depreciation derived from a larger fleet mean that it suffered a loss after tax of $5.7m, compared to a $5.0m loss a year earlier.

At the end of the third quarter, Epic’s LPG tanker fleet stood at 42 vessels with a total capacity of 276,400 m3. In July it acquired the 7,500-m3 Epic Boracay (2009); after the end of the quarter it sold its oldest and smallest vessel, Epic Capri (3,300 m3, 1997) at a margin over book value. HCB www.epic-gas.com

EPIC GAS IS ENJOYING FIRM DEMAND FOR ITS SMALLER VESSELS IN THE CURRENT MARKET, PARTICULARLY EAST OF SUEZ

READY FOR ANYTHING

LNG • ANTHONY VEDER’S WILLINGNESS TO INVEST IN SMALL, FLEXIBLE GAS SHIPS HAS SEEN IT RACK UP SEVERAL FIRSTS IN REGIONAL LNG DISTRIBUTION AND BUNKERING OPERATIONS

ROTTERDAM-BASED GAS tanker specialist

Anthony Veder is to convert its LNG carrier

Coral Methane into a dedicated LNG bunkering vessel. The 7,500-m3 tanker, built in 2009, currently operates as a multipurpose gas carrier on behalf of Shell and it is on Shell’s request that the conversion will take place.

“We are proud to offer Shell this pioneering solution that once again emphasises our expertise and continuous focus on safety and innovation,” says Jan Valkier, CEO of Anthony Veder. “Furthermore, the modification project enables us to continue to build on our strong partnership with Shell and to drive sustainable change in our industry.”

Modification work is due to start early in 2018. Once complete, Coral Methane will cover LNG bunkering demands across Europe, primarily in the southern part of the North Sea and in the Mediterranean.

BUILT FOR PURPOSE

Coral Methane is just one example of the innovative approach Anthony Veder has taken to the transport of gases in northern Europe. The ship has played a “crucial part”, the company says, in developing small-scale LNG business for both Anthony Veder and

Shell. This included opening up LNG transport along the Norwegian coast and “setting a track record” of successful LNG ship-toship transfer and ship-to-shore operations. Last year it was the first ship to load at the new third jetty at the Gate LNG terminal in Rotterdam, which was designed specifically for small-scale operations.

Some of these advances were built into Coral Methane from the design stage: it was fitted with electric azimuth pod propulsion to offer maximum flexibility and high manoeuvrability, which was seen as essential for work in the Norwegian fjords. This ability also makes it an ideal candidate for work as a bunkering vessel.

Anthony Veder was also involved in construction of Europe’s first purpose-built LNG bunkering vessel, in a joint venture with Sirius Shipping of Sweden. The 5,800-m3 Coralius was built by Royal Bedewes in the Netherlands after close cooperation between the owners and the charterer, Skangas.

Coralius was delivered in early September 2017, arriving just in time to be shown off at the annual Donsö Shipping Meet. Skangas customers and other interested parties were invited on board to see the innovations that had were part the vessel design, which included the latest gas engines and large monitoring screens on the bridge.

Within the month, Coralius had loaded its maiden cargo of LNG at the Skangas production facility in Stavanger, Norway and had delivered it to the Skangas terminal in Øra, near Frederikstad.

“We are very content with further developing the marine LNG availability in northern Europe by our new ship Coralius,” said Skangas CEO Kimmo Rahkamo at the time. “We look forward to serving our existing and new customers whenever they need LNG by ship-to-ship. Today the technology and ship engines are sound for gas and we are more than ready to supply it by our European supply chain.”

Anthony Veder currently operates a fleet of 30 gas tankers, of which seven have the capability to be fuelled by LNG. More than half the fleet is capable of carrying ethylene, and there is also one vessel dedicated to the transport of carbon dioxide. HCB www.anthonyveder.com www.skangas.com

CONVERSION OF THE SMALL LNG CARRIER TO A BUNKERING VESSEL WILL DEEPEN COOPERATION BETWEEN ANTHONY VEDER AND SHELL

TRAINING COURSES

AIRSAFE TRANSPORT TRAINING PO Box 347

Cloverdale, WA 6985, Australia

T (+61 8) 9277 6968 www.airsafe.com.au

Dangerous Goods by Air – Acceptance

• January 8-10 – Darwin

• January 16-18 – Perth

• January 17-19 – Brisbane

• January 31-Feb 2 – Adelaide

• February 7-9 – Melbourne

Dangerous Goods by Air – Refresher

• January 4 – Perth

• January 11 – Darwin

• January 16 – Brisbane

• January 30 – Adelaide

• February 6 – Melbourne

• February 13 – Sydney

• February 14 – Perth

AMSA Full Acceptance

• January 12 – Darwin

• January 15 – Brisbane

• January 23-24 – Perth

• January 29 – Adelaide

• February 5 – Melbourne

• February 12 – Sydney

AMSA Full Acceptance –Refresher

• February 7 – Perth

Dangerous Goods by Road

• February 13 – Perth

CAMEON PO Box 17345 Edinburgh EH12 1DJ, UK

T (+44 131) 334 1929

www.cameon.com

Dangerous Goods Safety Adviser (DGSA)

• February 26-March 2 –Manchester

Dangerous Goods by Air

• January 15-17 – Manchester

Dangerous Goods by Air –Revalidation

• February 9 – Manchester

Dangerous Goods by Road and Sea

• February 6-8 – Manchester

Dangerous Goods by Road –Upgrade

• January 18 – Manchester

Dangerous Goods by Sea –Upgrade

• January 19 – Manchester

DANGEROUS GOODS COUNCIL

PO Box 7325 York, PA 17404, USA

T (+1 717) 848 8840 www.hazshipper.com

49 CFR & International Air -

Certification

• January 22-24 – Fort Lauderdale

• February 6-8 – Fort Worth

49 CFR – Certification

• January 22-23 – Fort Lauderdale

• February 6-7 – Fort Worth

International Air – Recertification

• January 24 – Fort Lauderdale

• February 8 – Fort Worth

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

• January 17-18 – Seattle

• January 22-23 – San Francisco

• February 7-8 – Los Angeles

IATA Recurrent

• January 16 – Seattle

• January 17 – Atlanta

• January 24 – San Francisco

• January 29 – Newark

• February 5 – Chicago

• February 6 – Los Angeles

• February 12 – Las Vegas

IMDG Initial

• February 8-9 – Chicago

IMDG Recurrent

• January 19 – Atlanta

• January 26 – San Francisco

• January 31 – Newark

• February 7 – Chicago

• February 14 – Las Vegas

Ground Transportation (49 CFR) Initial

• January 29-30 – Chicago

• February 12-13 – Atlanta

Ground Transportation ( 49 CFR) Recurrent

• January 18 – Atlanta

• January 25 – San Francisco

• January 30 – Newark

• February 6 – Chicago

• February 13 – Las Vegas

Multimodal Initial (49 CFR/IATA/IMDG)

• January 29-Feb 3 – Chicago

• February 12-16 – Atlanta

Multimodal Recurrent (49 CFR/IATA/IMDG)

• January 17-19 – Atlanta

• January 24-26 – San Francisco

• January 29-31 – Newark

• February 5-7 – Chicago

• February 12-14 – Las Vegas Ground/Air Shipping –Recurrent (49 CFR/IATA)

• January 17-18 – Atlanta

• January 24-25 – San Francisco

• January 29-30 – Newark

• February 5-6 – Chicago

• February 12-13 – Las Vegas Ground/Ocean Shipping –Recurrent (49 CFR/IMDG)

• January 18-19 – Atlanta

• January 25-26 – San Francisco

• January 30-31 – Newark

• February 6-7 – Chicago

• February 13-14 – Las Vegas

Radioactive Materials (Multimodal)

• February 15-16 – Las Vegas

GLOBAL TRANSPORT

TRAINING

54 Norristown Road Blue Bell, PA 19422, USA

T (+1 215) 283 0983 www.gttstraining.com

Multi-Modal – IATA/IMDG/DOT 49

CFR – Initial

• January 8-12 – Boston

• January 15-19 – New York

• January 22-26 – Charlotte

• January 29-Feb 2 – Dallas

• January 29-Feb 2 – Jacksonville

• February 5-9 – Cincinnati

• February 5-9 – Philadelphia

• February 12-16 – Chicago

HAZMATEAM

12 Kimball Hill Road

Hudson, NH 03051-3915, USA

T (+1 603) 882 1112

www.hazmateam.com

US DOT Ground

Transportation – Initial

• February 6-7 – Hudson

US DOT Ground Transportation –Intermediate Refresher

• January 18-19 – Hudson

DOT Manifesting and Function Specific (49 CFR) Ground

Transportation

• January 30 – Hudson

Transportation of Lithium Metal and Lithium Ion Batteries

• February 1 – Hudson

OSHA Emergency Response Operations – Initial/Refresher

• January 16 – Hudson

• February 13 – Hudson

OSHA Emergency Response Technician – Initial

• January 22-24 – Hudson

OSHA/EPA Emergency Response

– Initial

• January 22-26 – Hudson

Incident Command

• February 15 – Hudson

HAZMAT TRAINING SCHOOL

SINGAPORE

146A Changi Road Singapore 419726

T (+65) 6542 5539

www.haz-mat-training.com

IATA Dangerous Goods Regulations (Initial)

• January 15-19 – Singapore

IATA Dangerous Goods Regulations (Recurrent)

• January 18-19 – Singapore

IATA Dangerous Goods Regulations (Awareness)

• January 15 – Singapore

SCDF Hazmat Transport Driver Permit

• January 10 – Singapore

• February 5 – Singapore

• Chemical Safety Awareness

• January 8 – Singapore

INTERNATIONAL AIR TRANSPORT ASSOCIATION

800 Place Victoria, PO Box 113 Montreal H4Z 1M1 Quebec, Canada.

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

Dangerous Goods Regulations (DGR) – Shippers and Packers –

Cat 1 and 2

• December 18-20 – Miami

Dangerous Goods Regulations (DGR) – Initial, Category 6

• January 8-12 – Miami

• January 15-19 – Singapore

• February 12-16 – Amsterdam

Dangerous Goods Regulations (DGR) – Recurrent, Category 6

• December 25-29 – Bahrain

• January 24-26 – Geneva

• January 29-31 – Singapore

• February 27-March 1 – Rome

Dangerous Goods Regulations (DGR) – Instructor Refresher

• December 18-20 – Singapore

• February 20-March 2 – London

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

• December 18-22 – Istanbul

• January 8-12 – Geneva

• February 26-March 2 – Miami

Instructional Techniques for DGR (for categories 4, 5, 7, 8, 9, 10, 11, 12)

• February 19-23 – Rome

Shipping Lithium Batteries by Air

• January 29-30 – Geneva

• February 26-27 – Singapore

Infectious Substances Transport

• January 24-26 – Miami

JOHN GERRISH & ASSOCIATES

500 McCormick Drive

Glen Burnie, MD 21061, USA

T (+1 410) 768 8356 www.jgatraining.com

Hazardous Materials in Ground Transportation (Initial)

• February 12-13 – Glen Burnie

Ground Transportation – 49CFR (Recurrent)

• January 15 – Glen Burnie

Hazardous Materials in Ground and Air Transportation

• January 15-16 – Glen Burnie

• February 12-14 – Glen Burnie

Hazardous Materials in Ground and Ocean Transportation

• January 15-17 – Glen Burnie

Hazardous Materials in Ground, Air and Ocean Transportation

• January 15-17 – Glen Burnie

Radioactive Materials in Transportation

• December 31 – Glen Burnie Air Force Manual (AFMAN 24-204)

• January 18 – Glen Burnie

• February 15 – Glen Burnie Driver’s Hazmat (Non-CDL Endorsement)

• December 31 – Glen Burnie

General Awareness of Hazardous Materials in Transportation

• December 31 – Glen Burnie

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)

• January 8-11 – Hartford, CT

• January 16-19 – Boston

• January 16-19 – Piscataway, NJ

• January 22-25 – Philadelphia

• February 6-9 – Orlando

• February 20-23 – Charlotte

Hazmat Ground Shipper Certification (49 CFR)

• January 8-9 – Hartford, CT

• January 10-11 – Albany

• January 16-17 – Boston

• January 16-17 – Piscataway, NJ

• January 22-23 – Philadelphia

January 29-30 – Baltimore

• February 6-7 – Orlando

• February 12-13 – Atlanta

• February 20-21 – Charlotte Hazmat Ground Shipper Certification - Recurrent

• February 7 – Sparta, NJ Hazmat Air Shipper Certification (IATA)

• January 10 – Hartford, CT

• January 12 – Albany

• January 18 – Boston

• January 18 – Piscataway, NJ

• January 24 – Philadelphia

• January 31 – Baltimore

• February 8 – Orlando

• February 14 – Atlanta

• February 22 – Charlotte

Hazmat Vessel Shipper Certification (IMDG)

• January 11 – Hartford, CT

• January 19 – Boston

• January 19 – Piscataway, NJ

• January 25 – Philadelphia

• February 9 – Orlando

• February 23 – Charlotte

Shipping Lithium Batteries

• February 8 – Sparta, NJ

Hazardous Waste in California

• January 8-9 – Torrance

• January 11-12 – Santa Barbara

• January 18-19 – San Francisco

• January 22-23 – Fresno

Industrial & Hazardous Waste in Texas

• February 9 – Dallas

• February 14 – Houston

• February 23 – San Antonio

Complete Environmental Regulations

• January 16-17 – Atlanta

NOVADATA TAB LTD Blackwell Drive

Springwood Industrial Estate Braintree, Essex CM7 2QJ, UK T (+44 1376) 552999 www.novadata.co.uk

Dangerous Goods Safety Adviser

• February 5-9 – Braintree

ADR Core, Packages

• January 8-11 – Braintree

• February 5-8 – Braintree

ADR Core, Packages & Tanks

• January 8-12 – Braintree

• February 5-9 – Braintree

ADR Tanks Add-On Course

• January 11 – Braintree

• February 8 – Braintree

ADR Explosives

• February 10 – Braintree

OILSPILL RESPONSE TRAINING

Lower William Street Southampton SO14 5QE, UK T (+44 23) 8033 1551 www.oilspillresponsetraining.com

On-Scene Commander – Americas (IMO Level 2)

• February 26-March 2 – Fort Lauderdale

Oil Spill Response Management (IMO Level 3)

• February 26-March 1 – Singapore

Extreme Cold Weather Spill Response

• January 15-19 – Quebec

ROADSAFE EUROPE

Unit 006, Solent Business Centre Millbrook Road West Southampton SO15 0HW, UK T (+44 23) 8070 2576 www.roadsafeeurope.com

ADR Initial

• January 22-26 – Southampton

• February 19-23 – Southampton

ADR Refresher

• January 3-5 – Southampton

• February 5-7 – Southampton

Dangerous Goods Safety Adviser

• February 26-Mar 2 –Southampton

SAFEWARE QUASAR

9 Langley House

Wheatcroft Business Mark Landmere Lane, Edwalton Nottingham NG12 4DG, UK T (+44 115) 965 1888 www.safeware-int.com

Transport of Dangerous Goods Awareness

• January 17 – Nottingham

EU Chemical Regulatory Compliance in a Nutshell

• January 18 – Nottingham GHS Professional Refresher

• January 24 – Nottingham

SPECIALIST TRAINING & CONSULTANCY

6 Venture Court

Altham Industrial Estate Altham, Lancs BB5 5TU, UK T (+44 1282) 687090 www.specialisttraining.co.uk

ADR Initial – Packages & Tanks

• January 8-12 – Accrington

ADR – Core, Packages & Class 6

• February 5-8 – Accrington

ADR Class 7

• January 12 – Accrington Carriage of Dangerous Goods by Air

• January 31-Feb 2 – Accrington

Dangerous Goods Safety Adviser

• February 19-23 – Accrington

LEARNING BY TRAINING

SUSTAINABILITY: A LEARNING EXPERIENCE

The UN Secretary General, António Guterres, tweeted recently: ‘ Wake up world. We are killing our planet. Climate Action now!’ He meant that our economy, industries and politics are not exactly cooperative in regard to changing pace and curbing climate change in time to avoid entropy and ultimately chaos. The way our banks use algorithms to outpace human trade drives everything else towards maximum financialisation, literally using up future resources for the sake of profits now. This obviously cannot last and, according to recent article in the New York Times, jeopardises humanity’s very survival.

As a researcher on what can be sustainable, durable and can be continued, I developed a method to measure sustainability. This valuable tool allows an organisation able to predict the future and therefore can adjust its course timely. As I am writing this for you, readers of HCB magazine, I’d like to propose that you apply this tool to your company’s products and services and ask yourself if they are negatively or positively interdependent. This means that products or services that would benefit a few at the cost of others (people, environment, etc), should be redesigned, reworked or replaced by those that are positively interdependent, meaning they are useful and sustainable for everyone and everything. This, in my view, would create millions of jobs and would benefit politics, economics, the environment and repair the ecological balance on which we all depend. Path dependency of an organisation means that products and services which may be harmful are not changed voluntarily, but often await laws to prevent them. I agree with António that it is too late for that.

Two weeks ago I spoke to the renowned physicist Dr Fritjof Capra in Innsbruck and he said that organisations that are unwilling to learn and adapt are dead. Biology confirms that an organism that is unable to learn from and interact with its environment can be declared dead because it has stopped metabolising.

Looking for example at companies or politicised organisations we can observe that they are often ‘path dependent’. Inflexible entities that are unable to learn, adapt and adjust to constantly renewing variations created from interaction with people, environment, planet or universe, cannot survive. This is a scientific fact.

How to proceed? Well, there is ample information and science. All such organisations have to do is to start listening by weighing ‘all’ information, even that information which would contradict ulterior motivation towards pre-planned and expected goals. Life in business or in politics can only be continued and remain sustainable by asking ‘where to now?’ and by learning everything that will be useful to ensure their systems stays afloat.

The Greeks were right over 2000 years ago. They accepted that you can only sail a ship to the other side of the seas if you prepare well and are open to learn from the wind, water and tide. Antonio realises that people are not listening. Perhaps his tweets, and this column, are read by 190 UN member countries, but are they alive or nearing death?

This is the third in a new 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 following up his invitation can contact him directly at arendvc@tankterminaltraining.com.

CONFERENCE DIARY

JANUARY

Platts’ Gas Storage Outlook

JANUARY 8-9, HOUSTON

16th annual conference on gas storage issues in North America www.platts.com/events/americas/ gas-storage/index

Argus Americas LPG Summit

JANUARY 16-18, HOUSTON Conference on regional and global LPG market developments www.argusmedia.com/events/argus-events/ americas/americas-lpg-summit/home/

European Oil Storage Conference

JANUARY 25-26, AMSTERDAM

Platts’ 11th annual conference on oil markets for terminal owners, ports, oil traders, financiers and analysts www.platts.com/events/emea/european-oilstorage/index

COHMED

JANUARY 29-FEBRUARY 2, GARDEN GROVE, CA Annual conference of the Cooperative Hazardous Materials Enforcement Development (COHMED) programme cvsa.org/eventpage/events/cohmed-conference/

FEBRUARY

Platts LNG Conference

FEBRUARY 12-13, HOUSTON

17th annual conference on LNG supply/ demand, pricing and project development www.platts.com/events/americas/liquefiednatural-gas/index

International Petroleum Week (IP Week)

FEBRUARY 20-22, LONDON

Annual week of meetings, lunches, conferences and seminars in London www.ipweek.co.uk/_nocache

Storck Symposium 2018

FEBRUARY 25-27, HAMBURG

34th annual conference on dangerous goods transport (German language) www.ecomed-storck.de/Veranstaltungen/

Hazardex 2017

FEBRUARY 28-MARCH 1, RUNCORN Conference and exhibition on hazardous area operations www.hazardexonthenet.net/event. aspx?EventID=4724

MARCH

PPC Spring Meeting

MARCH 4-6, TAMPA

Bi-annual meeting and tradeshow of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

IATA World Cargo Symposium

MARCH 13-15, DALLAS

12th global conference on air cargo www.iata.org/events/wcs/pages/index.aspx

Intermodal South America

MARCH 13-15, SÃO PAULO

International exhibition on intermodal logistics, cargo transport and international trade www.intermodal.com.br/en

Interspill 2018

MARCH 13-15, LONDON

Triennial conference and exhibition for the European oil spill response sector. www.interspill.org

Argus Africa LPG 2018

MARCH 14-15, CAPE TOWN Conference on the prospects for LPG market growth in Africa www.argusmedia.com/events/argus-events/ europe/argus-africa-lpg/home/

Emergency Preparedness and Contingency Planning

MARCH 15-16, SYDNEY

Conference and workshops on business continuity issues www.marcusevans-conferences-australian.com

Dangerous Goods Operations

MARCH 19-21, MELBOURNE

Workshop on optimising dangerous goods management processes www.marcusevans-conferences-australian.com

Intermodal Asia

MARCH 20-22, SHANGHAI

Fifth annual exhibition for the Asian intermodal sector www.intermodal-asia.com

LogiChem

MARCH 20-22, AMSTERDAM

Chemical supply chain and logistics conference logichem.wbresearch.com/

StocExpo 2018

MARCH 20-22, ROTTERDAM

The main annual exhibition and conference for the European tank terminal industry www.easyfairs.com/stocexpo-europe-2018/ stocexpo-europe-2018/

BADGP

MARCH 22, NORTHAMPTON

Annual AGM and seminar of the British Association of Dangerous Goods Professionals www.badgp.org/event-2685411

AFPM IPC

MARCH 25-27, SAN ANTONIO

AFPM’s annual International Petrochemical Conference www.AFPM.org

NISTM

MARCH 27-29, ORLANDO

National Institute for Storage Tank Management’s 20th annual international aboveground storage tank conference and trade show www.nistm.org

APRIL

NTTC Annual Conference

APRIL 15-17, TORONTO

70th annual conference and exhibition of the National Tank Truck Carriers www.tanktruck.org/meetings/

FPS Expo 2017

APRIL 18-19, LIVERPOOL

Annual exhibition for the fuel distribution sector in the UK and Ireland www.fpsshow.co.uk

INCIDENT LOG

ROAD/RAIL/AIR INCIDENTS

Date Location Vehicle Type Substance Details Source

7/9/17 nr Marysville, road tanker gasoline, Tank truck with 8,500 gal (32 m3) fuel overturned on Highway 20; tanker ruptured in several places, spilling Sacramento California, US diesel “significant” amount of gasoline to irrigation ditch; road closed; driver suffered major injuries Bee

8/9/17 nr Holmes Chapel, road tanker waste Road tanker carrying chemical waste was in collision with another commercial vehicle on M6, causing spill; BBC Cheshire, UK motorway was closed, stranded vehicles were evacuated; two injured in crash, two others decontaminated

14/9/17 Kingston, road tanker fuel Lucky Oil & Gas tank truck ran off Highway 70, overturned in ditch; tank with 8,000 gal (30.3 m3) KTEN Oklahoma, US unspecified fuel exploded; driver killed in blast; road was closed overnight for cleanup

17/9/17 Kot Addu, road tanker crude oil Road tanker with crude oil exploded during welding; one person killed, two suffered serious burns; driver had Dawn Punjab, Pakistan brought vehicle in for repairs to small leak on tank; driver fled scene; two shops, several vehicles destroyed

17/9/17 Savannah, road tanker sulphuric Tidewater Transit tank truck leaked part of 4,000-lb (1,800-kg) sulphuric acid load, possibly due to over- WTOC Georgia, US acid pressure in tank; nearby residents ordered to shelter-in-place while spill was neutralised, cleaned up

19/9/17 nr Old Tavern, road tanker propane Professional Transportation tank truck with 9,980 gal (37.8 m3) propane rolled over on Route 17, causing Fauquier Virginia, US 8-mile road closure; driver hurt in wreck; tanker had to be turned upright to access valves to transfer load Now

27/9/17 Huntington Beach, road tanker fuel Spill of 1,040 gal (3,940 litres) unspecified fuel during loading of tank truck at Chevron depot; tanker said to Orange Cy California, US have ruptured; depot’s fire suppression system blanketed spill with foam before fire department arrived Register

28/9/17 Portage, truck corrosives Truck driver pulled over on I-94 after noticing something wrong, found fire in rear axles; fire spread to box SunIndiana, US trailer with corrosive materials, which was fully engulfed in flame; highway closed; brake fire suspected Times

3/10/17 Ghorizai, road tanker crude oil Road tanker was in collision with dumper truck on Kohat-Rawalpindi road after brake failure; tanker rolled The Int’l Khyber, Pakistan over, caught fire; truck driver killed in blaze, tanker driver escaped with injuries; fire burned for three hours News

MARINE/INLAND WATERWAY INCIDENTS

Date Location Vessel Substance Details Source

9/9/17 of Atalanti, Agia Zoni II fuel oil, Coastal tanker (3,200 dwt, 1972), with 2,570 t oil, sank after taking on water; substantial pollution of nearby EkathiGreece gasoil coastline; reports suggest tanker was not seaworthy and had only two crew; oversight to be strengthened merini

13/9/17 nr Düsseldorf, Regina W II diesel Tank barge with 2,000 t diesel ran aground on Rhine; fire boat attended; initial attempt to refloat barge failed; Shipwreck Germany 600 t diesel lightered, allowing barge to refloat; no reports of pollution; barge escorted to Neuss for inspection Log

13/9/17 Singapore Straits Kartika Segara Product tanker (30,750 dwt, 1998) collided with hopper dredger south-west of Sister Islands; dredger capsized, Splash tanker suffered bow damage and was brought to anchor; five crew of dredger missing; no pollution reported 24/7

14/9/17 East China Sea Dong Fang Fu nitric acid Containership en route Shanghai for Taichung was caught in rough weather; six tank containers with nitric FleetMon acid shifted; ship arrived Keelung, where acid smell was detected; spill contained onboard; no injuries

16/9/17 Santos, NS Stella diesel Unknown volume of diesel spilt to harbour waters during discharge from tanker (47,200 dwt, 2005) at Ilha FleetMon Brazil Barnabe oil terminal; faulty valve suspected but leak went unnoticed for 10 minutes; operator facing fine

19/9/17 Al Zour, pipeline crude oil Second spill of crude oil in waters off Al Zour power station in two months; oil suspected of coming from KNA Kuwait disused pipeline from offshore field, though KPC refused to confirm this

20/9/17 Bath, Zeeland, Seatrout

Product tanker (40,600 dwt, 2006) collided with bulker Usolie in Western Scheldt; tanker grounded after FleetMon Netherlands collision; reports suggest third vessel, likely sailboat, was involved; no pollution reported

21/9/17 Valdez, terminal crude oil Workers at Valdez Marine Terminal reported sheen on water; Alyeska Pipeline said less than 50 gal (190 litres) Alaska Alaska, US crude oil residue spilt; no vessels were docked at time of spill; check valve thought to have failed during test Dispatch

21/9/17 Hai Phong, Hai An 16 gasoline

Product tanker (5,000 dwt, 2012) suffered explosion in pump room during discharge of gasoline; three crew FleetMon Vietnam injured; tanker was moved to anchorage while authorities worked on plan to offload 4,000 t gasoline cargo

22/9/17 off Samcheok, Bum Kang

Product tanker (2,840 dwt, 2016) suffered explosion on deck, reportedly during degassing of cargo tanks while FleetMon South Korea under way off Gangwon province; one crewman killed, one badly injured; tanker returned to Samcheok

25/9/17 nr Kurdyug, Balt Flot 3 fuel oil River tanker with 5,200 t heavy fuel oil, passing oncoming cargoship at night, struck unlit barge on fairway in FleetMon Leningrad, Russia Volga-Baltic sea canal; tanker suffered bow damage, water ingress but no spill reported

BROUGHT

MISCELLANEOUS INCIDENTS

Date Location Plant type Substance Details Source

1/9/17 nr Carlsbad, tank battery crude oil Three people, thought to be workers, were killed by explosion in tank at Caza Petroleum battery; fire crews KOB New Mexico, US arrived at site to find one tank engulfed in flames; county sheriff investigating cause

6/9/17 Drysdale, fuel station gas cylinders Fire broke out in shed containing gas cylinders behind filling station; blaze spread to six fuel tankers, which ABC Victoria, Australia were destroyed; nearby homes evacuated; series of explosions from cylinders; leaks of fuel from tankers

7/9/17 Aabenraa, oil terminal diesel Substantial leak of diesel from tank at Dan-Balt terminal, some of which reached nearby harbour and sea; AP Denmark several seabirds died after being covered in diesel; authorities planned to allow spill to evaporate

13/9/17 Lee’s Summit, detergent chemicals Fire crews were called to CK Enterprises where fire had broken out in outdoor bulk storage area with various KCTV Missouri, US plant small tanks with chemicals; employees reported fire had started during transfer of spirit-based diesel additive

14/9/17 Hyderabad, LPG bottling gas cylinders At least 40 gas cylinders exploded during fire in HPCL godown in Cherlapally district, reportedly during The Telangana, India plant refilling of cylinders; plant was immediately closed down, evacuated; local residents fled; no casualties Hindu

14/9/17 Auckland, pipeline jet fuel Farm digger struck only pipeline supplying fuel to Auckland airport, reducing jet fuel supplies to 30% of Petrol New Zealand capacity; gasoline, diesel supplies to city also affected; up to 80 m3 jet fuel spilled Plaza

15/9/17 Bolangir, ordnance ammunition Three people badly injured by explosion during proofing of ammunition at Badmal ordnance factory; no Odisha Odisha, India factory further details provided Sun-Times

18/9/17 Baltimore, chemical chlorosul- Undetermined amount of chlorosulphonic acid leaked through valve during transfer from tanker to trailer at Baltimore Maryland, US plant phonic acid Solvay plant; leak was stopped after 90 minutes; nearby workers, residents warned to shelter in place Sun

19/9/17 Hull, port hydrochloric Fire crews dealt with “major” leak from tank with 580 tonnes hydrochloric acid at King George Dock; BBC East Yorkshire, UK acid site is remote from homes but those in the area were advised to keep windows closed

19/9/17 Port Arthur, oil refinery fuel oil Fire broke out in heavy fuel oil tank at Valero refinery; no injuries reported; nearby residents advised to CNBC Texas, US shelter in place; refinery had restarted a week earlier after being shuttered during Hurricane Harvey

20/9/17 Mubarek, gas processing natural gas At least three workers killed by explosion, another hospitalised after gas inhalation at gas processing plant in Akipress Uzbekistan plant Kashkadarya region; workers were engaged in repairs at the time of the blast; government to investigate

23/9/17 Shangli, fireworks fireworks Seven workers were killed by powerful explosion at fireworks factory; facility had been ordered to cease PTI Jiangxi, China factory production the previous day due to poor safety, but plant continued production

25/9/17 Tulsa, metal processing sodium 14,000 gal (53 m3) sodium hydroxide spilt to storm drain when tank was overfilled at AZZ Galvanizing plant; KTUL Oklahoma, US plant hydroxide spill had been diluted by the time hazmat crew arrived but fire department monitoring conditions

26/9/17 nr Vinnytsya, warehouse armaments Series of explosions in artillery warehouses in Kalynivka were heard 260 km away; no injuries reported but RFE Ukraine town was evacuated; government departments divided as to whether it was an accident or Russian sabotage

27/9/17 Augusta, chemical chemicals One contractor killed, two badly injured by explosion in tank (not clear if storage or process) during welding Augusta Georgia, US plant at DSM plant; tank contained wastewater and possibly chemicals, said to be “heat-sensitive” Chronicle

27/9/17 Charlotte, chemical divinyl Fire broke out in storage area at Dow Chemical plant after drum of divinylbenzene self-reacted, overheated; Charlotte N Carolina, US plant benzene fire crews faced dense smoke but safety systems worked to contain incident with no off-site impact Observer

28/9/17 Glenville, asphalt asphalt Explosion in tank at Mohawk Asphalt Emulsions plant blew roof off tank, alarming guests at new hotel AP New York, US plant nearby; no injuries reported; same facility had tank truck explode in 2016, when two workers died

3/10/17 Philadelphia, chemical phthalic Ashland experienced leak of phthalic anhydride from storage tank; spill was contained by dyke but vapours The Pennsylvania, US plant anhydride condensed in cold air, causing flakes of material to settle around plant; shelter-in-place advised Inquirer

5/10/17 Nizhny Novgorod, oil refinery gasoline

At least four people died when fire broke out at Lukoil’s Norsi oil refinery in Kstovsky region; fire started Fire Russia during repair work on gasoline tank; not clear if those who died were contract personnel Direct

6/10/17 Dover, chemical sodium Spill of caustic soda from Dover Chemical plant caused fish kill along two miles of Sugar Creek; operator TimesOhio, US plant hydroxide said pipe failed in plant, external pump also failed, preventing containment from functioning properly Reporter

10/10/17 Santo Antônio, fireworks fireworks One person killed by explosion in São Jorge fireworks factory in Santo Antônio do Monte, a centre of Em.com.br Minas, Brazil factory fireworks production; no indication as to how accident happened

10/10/17 Jones county, oil refinery asphalt Fire broke out in storage tank at Hunt Southland Refining during “routine” transfer of asphalt; fire crews WDAM Mississippi, US had situation under control within 30 minutes but stayed on site to cool the area, monitor situation

10/10/17 nr Cushing, pipeline crude oil Bulldozer ruptured pipeline, causing crude oil spill; soft ground after heavy rain blamed; nearby creek had to WDTN Oklahoma, US be protected against run-off; size of spill not known

11/10/17 Kolkata, chemical chemicals Fire broke out in godown of chemical plant in Taratala area with 18 t aluminium dust, 6 t chemicals; mayor Times of W Bengal, India plant suspected illegal activity at the site; fire crews hampered by narrow streets; several small explosions heard India

WELL DONE YOU

CONTAINERS • EFFORTS TO IMPROVE SAFETY IN THE MARITIME CONTAINERISED SUPPLY CHAIN HAVE BEEN RECOGNISED BY THE TT CLUB AND ICHCA INTERNATIONAL

“ONE OF THE more serious issues that continues to blight the entire shipping industry is non-compliance in relation to the transport of restricted commodities and dangerous goods. It is estimated that this is the root cause of a major shipboard fire, on average every 60 days.”

So said Peregrine Storrs-Fox, risk management director at the TT Club, on the occasion of the presentation of the 2017 TT Club Innovation in Safety Award during ICHCA International’s annual

conference in Las Palmas, Canary Islands this past 5 October.

The recipient of this year’s Innovation in Safety Award was Hapag-Lloyd, in recognition of its efforts to identify non-compliant and undeclared dangerous goods before they become a problem. “All shipping lines have attempted to mitigate the problem but Hapag-Lloyd has long been at the forefront, creating in 2011 what has become the ‘Cargo Patrol’ search engine,” Storrs-Fox said.

The value of Cargo Patrol has grown year on year and now identifies in the order of 1,250 potential undeclared or misdeclared bookings every single day. During 2016, the total of 264,000 alerts resulted in 4,200 positive ‘hits’ – many of these bookings were

subsequently cancelled by the line. As this often results in the ‘problem’ cargo moving on to another line, Hapag-Lloyd has taken the decision to pass its software to IBM for further development and in order to make the solution accessible to all shipping lines.

In accepting the award, Ken Rohlmann, senior director of cargo service at the line, said, “Hapag-Lloyd is delighted to receive this prestigious Innovation in Safety Award. I’d like to dedicate the award to my colleagues from the Hapag-Lloyd IT department, who built Cargo Patrol as an in-house solution, and of course to my Cargo Patrol Team, who tirelessly investigate all the potential misdeclarations day by day. This award will further motivate us in the work to keep our crews safe.”

MORE RECOGNITION

This is only the second year of the TT Club Safety in Innovation Award so the judges were impressed to be faced with 22 entries, each revealing exciting and proven improvements in supply chain practices. Given the number and quality of the entries, the judges decided to recognise a second initiative as ‘Highly Commended’. This went to Safety Ammo, an RFID-based safety solution to protect workers who physically handle the twistlocks on the underside of containers on the waterfront.

Safety Ammo monitors in real time all personnel within the safety zone during cargo handling, indicating all activity through a simple interface. The result is that the ‘pinning station’ can notify any external control systems of workers’ whereabouts, thereby significantly increasing the safety of those exposed.

Capt Richard Brough, technical adviser to ICHCA and one of the five judges for the award, thanked Joseph Westwood Booth, senior deputy director for maritime safety at the International Maritime Organisation (IMO), who presented the award. Brough commented: “ICHCA is proud of the level on safety initiatives that the award has encouraged and would like to thank TT Club for its help in administering the awards process and financial support through its continued sponsorship.” HCB www.ichca.com www.ttclub.com

HAPAG-LLOYD’S KEN ROHLMANN (LEFT) RECEIVES THE INNOVATION IN SAFETY AWARD FROM THE TT CLUB

RESTRICTIONS REVEALED

MARITIME • SHIPPERS’ FRUSTRATIONS OVER SHIPMENT

DENIAL COULD BE EASED THANKS TO A NEW COOPERATION IN THE MARITIME CONTAINERISED TRANSPORT CHAIN

TT CLUB AND the UK P&I Club have joined forces with Exis Technologies to move the Hazcheck Restrictions portal into its next development phase. Hazcheck Restrictions enables participating lines to enter (or upload) and maintain the operator, vessel and port restrictions for their operations, check for dangerous goods compliance with partner lines and accept provisional bookings.

The portal started as an initiative with several major container lines that already used Exis Technologies’ range of Hazcheck compliance systems for their dangerous goods shipping operations, particularly to resolve issues posed under vessel sharing agreements.

The next phase of implementation involves encouraging container lines, ports, terminals, shippers and forwarders to upload their data into the portal free of charge for a minimum of two years. Facilitating the retrieval of the whole range of information from the portal for

operational use may lead to a new global portal for the whole supply chain to use in helping to make operations more efficient and safer.

“TT Club has been working alongside Exis Technologies since 2009 to deliver e-learning training solutions to the global supply chain,” says Peregrine Storrs-Fox, risk management director at the Club. “The Hazcheck Restrictions portal is an ambitious initiative aimed at reducing incidents related to dangerous goods shipments. Stakeholder engagement, particularly from ports and terminals, has the potential to deliver a portal which will make a huge difference for the intermodal industry.”

James Douglas, director of Exis Technologies, adds: “We are delighted that TT Club and UK P&I Club have recognised the potential in our Hazcheck Restrictions portal. We hope that the supply chain will join us in our efforts to create this exciting new portal.”

SIZE OF THE PROBLEM

Container lines estimate that up to 10 per cent of all the boxes they carry have some type of dangerous goods inside. Given the size of modern containerships, that means that more than 1,000 containers on any given voyage require critical checks. Those checks need to be made against the particulars of the voyage, including each leg, port and carrier, for all dangerous goods being carried.

These checks are made more complex because some lines prohibit certain classes of dangerous goods, particularly explosives, radioactive materials and some organic peroxides in refrigerated containers. The line taking the initial booking needs to know if its partner lines are prepared to carry each container with dangerous goods.

Similarly, many ports or individual container terminals have restrictions on the types of dangerous goods that may be loaded or unloaded, or even be present on a ship in port, regardless of whether that container is to be handled at the terminal. Significant disruption can ensue if the ‘wrong’ dangerous goods are aboard a vessel.

Finally, strict segregation requirements in the International Maritime Dangerous Goods

DEVELOPMENT OF THE HAZCHECK SYSTEM WILL HELP ALL THOSE INVOLVED IN THE CARRIAGE OF DANGEROUS GOODS BY SEA, INCLUDING FERRIES AND RO-RO VESSELS

(IMDG) Code mean that space for dangerous goods on each vessel will be finite.

All these issues can cause frustration for shippers; they may have gone to great lengths themselves to ensure that their shipments are compliant with the IMDG Code but, given the various restrictions, that does not mean that they will necessarily be accepted for any particular voyage.

There are thousands of partner line dangerous goods bookings made each day; each has to be checked against the restrictions imposed by shipping lines, ports and terminals and this has to be done under time pressure. Unlike in the world of air transport, there is no single database of port and terminal restrictions or, indeed, operator restrictions. That means that each individual shipping line has to try to capture and keep its own record of port and terminal restrictions, which can and do change on a frequent basis anywhere in their global network.

The vision of the Hazcheck Restrictions portal is to take that burden away from the lines themselves and to deliver a much more simplified and comprehensive database available to all stakeholders; the ultimate aim is to improve compliance and, thereby, safety in the maritime supply chain, which is why insurance providers such as TT Club and the UK P&I Club (both managed by Thomas Miller) are keen to support its development.

NOT JUST BIG BOXES

It is not just the global container shipping lines that are impacted by restrictions on dangerous goods shipments – much the same goes for ferry, cruise and roro vessel operators. E-Dea, an IT software development company that offers innovative solutions to this sector, has recently integrated Exis Technologies’ Hazcheck Web Service compliance module into its latest software platform.

The Hazcheck Web Service is a set of dangerous goods data packages and

routines for incorporation into cargo booking, handling, ERP and planning systems. It offers IMDG Code compliance and the additional provisions and/or variations applicable when using other modal or regional dangerous goods regulations.

“E-Dea is delighted to be able to offer the Hazcheck functionalities within our software products,” says E-Dea CCO Marco Pavoncelli. “Several ferry companies have already approached us regarding integrating it into their current system. Many people do not realise that the IMDG Code regulations apply to passenger ships as well as deep sea container lines. Ferry and roro companies also need to be aware of the substances that are being carried on their ships for the safety of the passengers and the crew.” HCB hazcheck.existec.com www.ttclub.com www.ukpandi.com www.edeatech.eu

BACK TO BUSINESS

THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 51st session in Geneva this past 3 to 7 July. The one-week meeting was the first of four planned for the new regulatory biennium and, as such, its main tasks were to look at some of the matters that had not been resolved in time for the meeting of the parent Committee of Experts in December 2016 and had thus

not been included in the amendments that appeared in the 20th revised edition of the UN Model Regulations.

That edition had already been printed in English and French at the time of the meeting, as had the seventh revised edition of the Globally Harmonised System of Classification and Labelling of Chemicals (GHS).

It might be though that, after 20 editions, the experts would have finished their job of designing regulations; however, the pace of technological development as well as changes in public expectations mean that their work will likely never be finished. The July meeting gave

them the opportunity to get started on the amendments that will appear in the 21st edition of the Model Regulations. Those changes will be agreed by the parent Committee in December 2018 for publication in early 2019 and will mostly be adopted by the various modal, regional and national regulatory bodies for entry into force as from 2021.

The meeting was attended by experts representing 23 countries as well as observers from New Zealand, Qatar and Romania; also at the meeting were representatives from the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the UN Food and Agriculture Organisation (FAO), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the World Health Organisation (WHO) and 30 non-governmental organisations.

EXPLOSIVE DISCUSSIONS

As is the usual practice, submissions relating to the transport of explosives were remitted to a specialised Working Group, once more chaired by Ed de Jong (Netherlands).

Sweden proposed some textual changes to 10.3.3.4 of the Manual of Tests and Criteria, »

MULTIMODAL • A FAIRLY LANGUID START TO THE NEW BIENNIUM GAVE THE UN EXPERTS THE CHANCE TO FINALISE A NUMBER OF CHANGES THAT WERE LEFT OVER FROM THE LAST SESSION

in line with revisions already adopted for 10.3.3.2 and 10.3.3.3. The Working Group and the Sub-committee were in agreement with them and they were incorporated into a longer proposal that was to be discussed with the GHS Sub-committee.

On the basis of a paper from the Institute of Makers of Explosives (IME), the Working Group agreed that ammonium nitrate suspensions and gels can be successfully classified using the 8(c) Koenen Test but that this is not generally suitable for ammonium nitrate emulsions, due to their higher water content. Although some experts were reluctant to consider amendments to the 8(c) Koenen Test, it was agreed after some discussion that IME would lead work to investigate the possibility of modifications.

The Netherlands presented an update on work to develop a specification for a standard detonator. This work will continue, most likely through to the end of 2018.

The Australian Explosives Industry Safety Group (AEISG) proposed the inclusion of new UN numbers for electronic detonators, which received some support; others in the Working Group felt that these could be accommodated in the existing entries for electric detonators. The Sub-committee agreed that a distinction

between ‘electric’ and ‘electronic’ detonators would be useful but the Working Group failed to reach a consensus on the best way to do so.

AEISG promised to return with a new proposal.

Prompted by a paper from Germany, the Working Group agreed that there is a need for further tests to confirm the stability of nitrocellulose mixtures. The most suitable tests for this purpose would appear to be the Bergmann Junk test and the Methyl Violet Paper test. The European Chemical Industry Council (Cefic) will now lead intersessional work to agree the details; it was hoped that a proposal could be ready in time for the December 2017 meeting. This work will include consideration of test results used by Germany’s BAM over the past 30 years.

Two papers from the UK prompted a discussion of the applicability of the security provisions in Chapter 1.4 to explosives. The Working Group felt that, on principle, goods that are freely available to the general public cannot be deemed to present a security risk; the experts also agreed with the US that all Division 1.6 explosives should be included in Table 1.4.1. The UK expert said that the comments made would be considered during the preparation of a revised proposal.

Switzerland arrived with a proposal to offer a relaxation from the regulations for fireworks of UN 0337, Division 1.4S transported in small quantities. Its paper noted that the rise of online shopping means that there is a demand for such fireworks to be sent by mail. Switzerland pointed to the

agreement made to allow certain small arms ammunition to be transported with limited quantity provisions as a model.

The Working Group recalled the four principles that had been met when that provision for ammunition had been agreed but it was not optimistic that fireworks, even those limited designs that Switzerland mentioned, could be made to meet those same principles. Switzerland agreed to consider those comments and determine if an amended paper should be submitted.

PACKING AND CLASSIFICATION

Germany proposed revising the texts of special packing provisions PP13 and PP33, claiming that the current wording is ambiguous. Other delegates disagreed, although the Germany expert implied that a revised proposal would be forthcoming.

A paper from Switzerland sought an explicit mention of the principle that special provision 375, which applies to environmentally hazardous substances of UN 3077 and 3082, is optional. Shippers can choose to use it or ignore it. However, most of the experts considered that the text proposed by Switzerland could confuse matters and that the situation is already clear enough. No action was taken.

Germany raised another point that led to disagreement, this time concerning the intended interpretation of special provision 366, which exempts manufactured instruments and articles containing not more than 1 kg of mercury from the provisions of the regulations (the limit is 15 g for air transport). Picking up on earlier discussions at the Joint Meeting of RID/ADR/ADN experts on the transport of lamps containing mercury, Germany felt it should be specified that damaged or defective instruments/articles should be subject to more stringent packaging requirements. No consensus could be reached, with some experts sympathetic to Germany’s point; a revised proposal will be made.

Germany also sought an amendment of packing instruction P003 to allow its use in the transport of large articles, having been asked by industry to authorise the movement of large pressurised articles used in the oil industry, which have a net mass of some »

2,000 kg. Its proposed solution involved the addition of a special packing provision into P003. Several experts supported the idea of allowing the transport of large articles with a mass exceeding 400 kg but there was no consensus on how to do so. Again, a revised proposal will be forthcoming.

The Secretariat proposed a correction to the English and French texts of packing instruction P410, specifically table note ‘d’. This was adopted as a correction to the text in the 20th revised edition of the Model Regulations; that note should read: For packing group II substances, these packagings may only be used when transported in a closed cargo transport unit.

Canada proposed the modification of packing instruction P801 and the addition of a new packing instruction to clarify the conditions under which damaged, defective or otherwise returned batteries of UN 2794, 2795 or 3028 should be carried. Canada’s paper remarked on apparent difficulties in understanding the current provisions on the part of shippers. There was broad support for the principle of Canada’s proposals but it

was felt that these should be set down in an official document. The Canadian expert said that this would be done for the next session, taking account of the comments that had been made.

Canada and the UK returned to the topic of the packaging of infectious waste of Category A; this had been discussed at length during the previous biennium in light of problems that had been encountered during the recent outbreaks of Ebola virus, when large volumes of disposable personal protective equipment, bedding material and other potentially infected items had been generated and needed to be transported for proper disposal. It was found that current provisions do not anticipate this situation.

An informal teleconferencing group had held four meetings since the December 2016 session of the Sub-committee and had come up with proposals for a new packing instruction and a corresponding large packing instruction. Both would require the use of a triple packaging system that meets the testing, marking and certification requirements found in Chapters 6.1 or 6.6.

The Sub-committee noted that there was not yet full consensus among the group but, after a lunchtime working group met during the July session, it was decided to provisionally adopt a number of provisions but to keep them for now in square brackets to allow time for delegations to consult

their public health authorities and to give the opportunity for further clarification of the texts during the current biennium.

If confirmed, there will be a new UN entry, 3549, for Medical waste, category A, affecting humans, solid or Medical waste, category A, affecting animals only, solid, along with a new packing instruction P622 and a corresponding LP622. Among the more substantive planned changes are the amendment of 2.6.3.5.1(a) to read:

Category A infectious substances shall be assigned to UN 2814, UN 2900 or UN 3549 as appropriate. Solid medical waste containing Category A infectious substances generated from the medical treatment of humans or veterinary treatment of animals may be assigned to UN 3549. The UN 3549 entry shall not be used for waste from bio-research or liquid waste;

ELECTRIC STORAGE SYSTEMS

Anyone who follows the regulatory meetings these days knows that some discussion of lithium batteries is inevitable and the July session of the UN Sub-committee was no exception. On this occasion the Medical Device Battery Transport Council (MDBTC) provided a draft of a test summary document, designed to meet the requirement agreed at the previous session for manufacturers and distributors of lithium batteries to pass information regarding the 38.3 Test along the supply chain.

After discussion and further debate during a lunchtime working group, the Sub-committee adopted a change to 2.9.4(g), which had been added at the 50th session, to indicate that the requirement applies only to cells and batteries manufactured after June 2003. Some editorial changes were also made to 38.3.5(f) in the Manual of Tests and Criteria. The Sub-committee recommended that these be reflected by the modal authorities when updating their regulations to reflect the provisions of the 20th revised edition of the Model Regulations.

MDBTC and other interested bodies will continue work to finalise the test summary document. It was recommended that this document should only be required as from 1 January 2020, meaning that it would become

ELECTRONIC DETONATORS (ABOVE) AND DEFECTIVE LITHIUM BATTERIES (RIGHT) ARE AMONG A NUMBER OF NEW HAZARDOUS ARTICLES THAT THE UN SUBCOMMITTEE OF EXPERTS IS BEING ASKED TO CONSIDER

a requirement under all the modal regulations at the same time.

The previous biennium had included the beginning of work aimed at developing a hazard-based system for the classification of lithium batteries; such a system would, it is hoped, put an end to the need for constant revision of the provisions. France presented a document on behalf of an informal working group and the Sub-committee passed discussion of the document on to a lunchtime working group.

The Sub-committee approved the report of that group and noted that France would host a small meeting of interested delegates willing to organise and present their test data. An informal working group was to be hosted before the next session, with a further report expected to be considered at that December meeting.

Switzerland had spotted an inconsistency between special provisions 239 and 388 in respect of cells and batteries installed in vehicles. SP 239 refers only to UN 3171, whereas SP 388 refers to both UN 3171 and 3166. Its paper proposed adding “and 3166” to the last sentence of SP 239. The experts felt that it would be better just to delete that last sentence, as the matter is covered in SP 388.

Switzerland also thought it would be useful to refer to other types of battery-powered equipment and batteries in SP 388 and proposed an addition to the seventh paragraph of that special provision. During discussion it was pointed out that the fifth paragraph

would also need revision. After some debate, the proposal was withdrawn.

A further paper from Switzerland asked the Sub-committee to find a way to avoid the need for competent authority involvement when transporting damaged or defective lithium cells and batteries contained in vehicles and equipment. It proposed adding provisions into SP 388 similar to those already in SP 310.

The Sub-committee noted that, once batteries are removed from the vehicle in which they were installed, they should be transported under the relevant UN entry for the type of battery concerned rather than UN 3166 or 3171. As such, SP 388 would not apply. It was also pointed out that this issue is addressed in ADR under special provision 667. The expert from Switzerland withdrew the proposal.

The International Air Transport Association (IATA) noted that there are provisions throughout the Model Regulations specifying the size of the text required for proper shipping names, UN numbers and other words on marks on packages. However, when the lithium battery mark was introduced for packages prepared in accordance with SP 188 there was no specification for the size of the UN number. IATA felt this needed addressing, as it was already raising questions during transport.

The overall feeling of the Sub-committee was that such a move would not represent a significant improvement to safety. Furthermore, pre-printed marks are already available on »

the market and, if a change were to be made, there would have to be a transitional provision. In the end, the IATA representative said that he would not follow up on the proposal unless significant problems were encountered in practice.

Another lengthy paper from Switzerland sought clarification of some points of special provision 389, which applies to UN 3536 lithium batteries installed in cargo transport units. The Sub-committee confirmed that the term ‘cargo transport unit’ covers not just containers but also multimodal freight containers, vehicles or wagons. It did, though, agree that some changes were needed and adopted the following amendments.

In special provision 360, “consigned under” is replaced by “assigned to”; a new sentence is added at the end:

Lithium batteries installed in cargo transport units, designed only to provide power external to the transport unit shall be assigned to entry UN 3536 LITHIUM BATTERIES INSTALLED IN CARGO TRANSPORT UNIT.

In special provision 388, a similar sentence is added to the end of the seventh paragraph:

Lithium ion batteries or lithium metal batteries installed in a cargo transport unit and designed only to provide power external to the cargo transport unit shall be assigned to the entry UN 3536 LITHIUM BATTERIES.

The expert from Switzerland withdrew the remaining five proposals in the paper.

Another paper from Switzerland, as well as one from Germany, returned to the question of exempting lithium battery powered tracking devices and data loggers attached to cargo transport units or packages, which had come up several times before. While there was still no consensus on a resolution, the Sub-committee did decide to provisionally adopt a revised sub-paragraph (c) to 1.1.1.2:

Lithium battery powered cargo tracking devices or data loggers attached to packages, overpacks or cargo transport units if they meet the following:

(i) Each cell or battery meets the applicable provisions of 2.9.4;

(ii) The batteries and cells are afforded protection by an outer casing of adequate strength and design or by the device in which

“THE JULY MEETING GAVE THE EXPERTS THE CHANCE TO START ON THE AMENDMENTS THAT WILL APPEAR IN THE 21ST EDITION OF THE MODEL REGULATIONS”

they are contained to prevent damage under normal conditions of transport.

This will be confirmed after intersessional work led by the Netherlands on the scope of 1.1.1.2.

TRANSPORT OF GASES

The Compressed Gas Association (CGA) and the European Industrial Gases Association (EIGA) provided an update on work towards the mutual recognition of pressure receptacles between the EU and US. CGA had initiated a petition for rulemaking with the US Department of Transportation (DOT) to authorise the import of UN and non-UN pressure receptacles into the US; in parallel, EIGA has made initial proposals to the RID/ ADR/ADN Joint Meeting. The two associations said these moves should lay the foundations for the global recognition of pressure receptacles.

A paper from Germany recommended that adsorbed gases be added to the exemption provided in 2.2.2.3 for gases of Division 2.2.

There was no consensus on this proposal and a revised paper will be presented at the next session.

Another paper from Germany proposed revision of 6.2.1.1.9, which deals with construction requirements for pressure receptacles used for the carriage of

acetylene. After discussion, however, the paper was withdrawn.

The International Organisation for Standardisation (ISO) informed the Sub-committee of recent work on standards relating to gas cylinders, with four proposals for amendments to the Model Regulations. Three of these were adopted, with some corrections, while the fourth requires further work.

In special provision 379(d)(i), 4.1.6.1.2, 6.2.2.2 and 6.7.5.2.4(a), “ISO 11114-1:2012” is replaced by “ISO 11114-2:2012 + Amd 1:2017”.

In Packing Instruction P100(4), the reference to ISO 24431:2006 is updated to ISO 24431: 2016 Gas cylinders – Seamless, welded and composite cylinders for compressed and liquefied gases (excluding acetylene) – Inspection at time of filling.

In the second sentence of the penultimate paragraph of 4.1.6.1.8, “annex A of ISO 10297:2006 or annex A of ISO 10297:2014” is replaced by “annex A of ISO 10297:2006, annex A of ISO 10297:2014 or annex A of ISO 10297 + Amd 1:2017”. Applicability of ISO 10297:2014, as shown in the first table in 6.2.2.3, is changed from “Until further notice” to “Until 31 December 2022”.

A second paper from ISO raised some questions that could not be answered at this point, although the Sub-committee did agree to amend the first sentence of 6.7.5.2.3 by adding “or composite construction” after “stainless steel”.

CGA and EIGA, in an informal document, informed the Sub-committee that they were intending to initiate discussions on the »

RANGE OF TOPICS ON WHICH THE UN EXPERTS ARE EXPECTED TO ADJUDICATE GETS EVER WIDER, NOW ENCOMPASSING AUTOMOTIVE BATTERIES (LEFT) AS WELL AS CLOSURES FOR PRESSURE RECEPTACLES

conformity assessment of closures of pressure receptacles. At present there are different approaches taken to this issue in different countries and it would be helpful if a common position could be developed. Interested parties were invited to contact CGA or EIGA.

MISCELLANEOUS PROPOSALS

Having failed with its proposal for a minimum size of the UN number in the lithium battery mark, IATA had more success with its complaint that the specification of a 2 mm minimum width for the line inside the edge forming the diamond of hazard labels, as introduced in the 18th revised edition of the Model Regulations, was causing problems in transport as some authorities were interpreting this exactly, to the point where a package on which the line was 1.9 mm might be stopped.

The Sub-committee agreed that this is a ridiculous position to be in and adopted IATA’s proposal to amend 5.2.2.2.1.1.2 to read:

The label shall be in the form of a square set at an angle of 45 degrees (diamond-shaped). The minimum dimensions shall be 100 mm x 100 mm. There shall be a line inside the edge forming the diamond which shall be parallel and approximately 5 mm from the outside of that line to the edge of the label.

It was noted that similar provisions exist elsewhere in the Model Regulations, such as

those applicable to placards, and IATA was invited to check to see if other amendments might be appropriate.

Germany initiated a discussion of the marking for the maximum permissible stacking load for intermediate bulk containers (IBCs), noting that when this provision was first discussed in 2005 and 2006, the intention had been to have a single marking on the metal plate. However, in the adoption of the provision, the text in the Model Regulations can be interpreted as requiring two separate markings.

The Sub-committee agreed that the provisions in 6.5.2.2.1 and 6.5.2.2.2 could benefit from clarification. However, it was recalled that the maximum permitted stacking load is different from the stacking test load. Germany offered to prepare an official proposal for the next session.

The UK informed the Sub-committee that it was in the process of developing proposals to amend Chapters 6.1 and 6.6 to recognised hazards posed by articles containing dangerous goods that may inadvertently catch fire, evolve excessive heat or have the possibility of a violent rupture. This work follows the approach being taken by ICAO on the packaging of lithium batteries, while aiming for a system that would be simpler and cheaper to implement and easier to monitor.

Some delegations appeared to be daunted by the prospect of what is likely to be a lengthy

and wide-ranging project but those with an interest in making a contribution to the work were invited to contact the UK expert.

Russia proposed an amendment to 5.5.3 to make it clear that its provisions apply to substances used in cargo transport units to protect against the formation of a flammable or explosive atmosphere, as well as to those used to cool or condition the cargo. This stems from the use of nitrogen to protect against explosion when terephthalic acid is transported in liner bags within containers, as is common in Russia and other CIS countries.

Some delegations were of the opinion that protective agents are covered by the term ‘conditioner’, though it might things clearer if this were specified in a note. Austria felt that words such as “AS COOLANT” or “AS PROTECTIVE AGENT” should not be introduced on the warning mark since they are not related to hazard communication. The expert from Russia said he would consult with his Austrian counterpart and prepare a revised proposal for the next session.

GLOBAL HARMONISATION

The Dangerous Goods Trainers Association (DGTA) raised the issue of competencybased training, something that ICAO is in the process of introducing across its spectrum of responsibility, including the training of dangerous goods employees. DGTA suggested that the Sub-committee might consider whether a competencybased framework should be included within the Model Regulations, for application by the modal and national regulators, and whether this should be included as a work item for the current biennium.

The Sub-committee expressed interest in obtaining more information, particularly in respect of preliminary results or the outcome of surveys related to competency-based training. If more information is provided, the



CHANGES HAVE BEEN PROVISIONALLY AGREED TO RECOGNISE THE NEED TO MOVE WASTE MATERIAL CONTAMINATED WITH CATEGORY A INFECTIOUS SUBSTANCE (ABOVE) AND BATTERIES IN CARGO TRANSPORT UNITS (RIGHT)

Sub-committee would be happy to continue discussions at the next session.

The Secretariat provided a paper containing a number of necessary corrections to the 20th revised edition of the Model Regulations that had been spotted during the work of the Ad Hoc Working Group on the Harmonisation of RID/ADR/ADN with the UN Recommendations. These were largely adopted by the Subcommittee, though some will require further thought and possibly even a formal proposal before they can be changed. A second paper from IMO included other necessary corrections picked up by its Editorial and Technical Group at its May 2017 session.

Many of the corrections are editorial in nature, although some of the others are quite significant. At present, the corrections are not reflected in the electronic version of the UN Model Regulations available on the UN ECE website and the corrigendum has not yet been published. Those interested in looking at the corrections in detail can find them in Annex I to the official report on the July meeting in the document ST/SG/AC.10/C.3/102/Add.1.

In an informal document, IATA noted that ICAO had also assigned special provision 238, which allows for the exemption of UN 2800 batteries, wet, non-spillable, to UN 3171 battery-powered vehicle/battery-powered equipment, on the grounds that, if the battery powering the vehicle is exempted, then the vehicle powered by the battery should also be exempted. This reasoning seemed sensible

but the Sub-committee said any change to the Model Regulations would have to be made on the basis of an official proposal.

France reported on ongoing work to address issues raised by the replacement of the cellulose used as reference material in the O.1, O.2 and O.3 tests for oxidising substances. It expects that a formal proposal should be ready in time for the July 2018 session of the TDG and GHS Sub-committees.

The Sub-committee also noted progress being made by the Working Group on the use of the Manual of Tests and Criteria in the context of the GHS. The experts made some suggestions about specific issues that warranted careful consideration.

A paper from the US, on behalf of an informal correspondence group, reported on word done so far on the potential development of a global list of chemicals classified in accordance with the GHS. The paper alerted the Sub-committee to the fact that, on the basis of a pilot project carried out on a limited number of substances, further work in this direction could lead to the need to amend current classifications. Furthermore, as work progresses it seems inevitable that discrepancies will be identified between existing classifications. HCB

The 52nd session of the TDG Sub-committee was scheduled to take place between 27 November and 6 December; a report on that meeting will be included in a forthcoming issue of HCB.

NOT OTHERWISE SPECIFIED

ORGANIC FIRE HAZARD

This issue of HCB marks the end of our 38th year of providing safety-critical information to those transporting and handling dangerous goods. We like to think we know what we’re talking about by now but, even so, every so often something crops up that makes us wonder…

Take this story, which comes to us from Tucson, Arizona. A factory there went up in flames and collapsed after an explosion in early November. Five people were hospitalised by the incident, which was made worse by the fact that the explosion had knocked out the building’s sprinkler system and had also broken a gas line, which only fed the fire further. Nonetheless, rapid response by fire crews helped keep the blaze from spreading to other buildings.

What was unusual about this incident was that the factory in question is used to extract jojoba oil from plants in “one of the largest organic jojoba farms in the world”, covering more than 2,000 acres in southern Arizona. Apparently the processing of jojoba creates a flammable oil and dust, either of which could have sparked the fire. Who knew?

So next time you’re washing your hair with a jojoba-flavoured shampoo – cosmetic of choice for all hazmat professionals, we are sure – don’t let the hairdryer get too close.

PLUG IN AND PUKE

A more seasonal story comes to us from Baltimore, where a high school had to be evacuated in October. Five people were taken to hospital in what appeared at first to be a hazmat incident caused by a chemical release. A “strange odour” was detected on the third floor of the school and it was getting stronger. Four of the five who were

hospitalised reported that the smell made them nauseous.

After a search of the premises, it emerged that the stink was being generated by a plug-in air freshener, designed to give out the scent of pumpkin spice. Sadly, news sources fail to reveal the brand of air freshener but we are happy to avoid all such fripperies. In our day schools smelled of floor polish and Brasso and we were all the better for it.

BANG GOES THE VEG

Time marches on, as is its wont, but we are still detecting stories related to ordinance left over from World War II. Unexploded bombs turn up fairly regularly, often during excavations for building work, particularly in Germany and the UK. In September, 65,000 people had to be evacuated in Frankfurt while a bomb was made safe.

So one pensioner in Bretten, near Karlsruhe in south-west Germany, may not have been too surprised when he spotted something that looked like an unexploded bomb in his garden and called the police. On investigation, the 40-cm (16-inch) ‘bomb’ turned out to be an unexploded courgette (zucchini), though the picture in the report we saw made it look more like an aubergine (eggplant). Either way, police reckoned that someone had deliberately thrown the 5-kg (11-lb) vegetable into the man’s garden.

We can understand that. Reports said the man disposed of the courgette (or aubergine) himself. We have a good way of doing that: make a light batter mixture, slice the courgette (or aubergine) finely and coat it in the batter, then deep fry it. Finally, throw the whole lot in the bin as no use to man nor beast.