HCB Magazine June 2024

MONTHLY JUNE 2024

FULL AHEAD

CHEMICAL TANKER OPERATORS MAKE HAY WHILE THE MARKET RUNS HOT

JOINT MEETING FINALISES 2025 RULES

DISTRIBUTORS RUE RETURN TO NORMAL RAIL WOES HAMPER COMBINED TRANSPORT

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Chief

EDITOR’S LETTER

The word ‘politics’ does not normally interfere with the general business of transporting dangerous goods (or the ‘transportation of hazardous materials’). It’s all about safety, really, with a bit of free trade thrown in. That’s not to say that politics doesn’t come into it: the regulations themselves are, after all, agreed and adopted by sovereign states, subject to political pressures at the top of the tree – though in the transport realm, that is normally limited to setting the boundaries of the current agenda.

It is possible, then, to look at the list of agenda items for, say, the UN Sub-committee of Experts on the Transport of Dangerous Goods through a ‘political’ lens, with its new-found focus on sustainability and the circular economy, prioritising issues relating to decarbonisation and the electrification of mobility. That is not to say that there are no safety issues in that area – we have all seen stories about electric vehicles suddenly going up in flames, or burning batteries bringing down aircraft.

I think, in fact, we are quite lucky in the transport world to be relatively free of political interference. The public at large cares little about how goods get to the shops and, on the basis of recent evidence, even senior political figures are remarkably ignorant about the movement of people and freight. As such, there is little mileage in the press getting exercised about transport – unless it’s to do with the price of fuel or disruptions to trade. Even transport accidents usually have to be pretty major to trouble the newspapers, although America’s fourth estate has suddenly got itself terribly excited about railfreight accidents of late.

Politics is more evident when it comes to regulating dangerous goods in the workplace or home – the ‘supply and use’ sector of the trade – as regulated under hazard communication and workplace safety legislation, where the potential harm to people is all the more obvious. It is here where the regulatory action is at its hottest, fuelled by NGOs with an axe to grind and political hot air filling the bubble of press ‘outrage’.

And it is here that a collision of cultures that has become such a feature of the ‘advanced’ economies is happening. On the one hand, there are those who are calling loudly for increasing restrictions on the use of potentially injurious chemicals, even those that support our lifestyles (and those that may help contribute to decarbonisation), such as PFAS; on the other hand, there are those, usually on the political right, who call just as loudly for lighter regulation for fear of hampering economic activity.

Right now, the US Environmental Protection Agency seems to be aligned firmly with the former, having over the past year issued three rules of interest (and concern) to those involved in the handling and transport of hazardous materials. All three, on close inspection, appear muddled and redundant, but they also play into a political environment where such initiatives gain support. That environment may not last long, as there is an election coming up – and we know what happened last time there was a Republican in the White House. The recent European elections, which confirmed a drift to the right, have already put the brakes on some similar projects. All of which makes it difficult to plan for the future.

Peter Mackay

30 YEARS AGO

A LOOK BACK AT JUNE 1994

LOOKING BACK, the maritime industry turned a big corner thirty years ago. Regulators – and the public at large – had become tired of the constant litany of maritime incidents, especially those that resulted in large oil spills, with the attendant media coverage of oiled seabirds and sticky goo on formerly pristine coastlines.

In 1994, things were beginning to change; port state control (PSC) regimes were gaining traction and developing teeth, but perhaps the most important event was the publication in May 1994 of Lord Donaldson’s extensive report on the grounding of the tanker Braer in the Shetland Islands in January 1993, which spilled around 85,000 tonnes of crude oil. The report, Safer Ships, Cleaner Seas, co-authored by John Rendle and Alasdair McIntyre, concluded with more than 100 recommendations, urging more transparency in the often murky world of shipping – something that the UK government picked up on, starting to publish a monthly list of all those vessels that had failed inspection in port, naming names and pointing fingers.

It was rather sad, then, that Lord Donaldson was called on again only two years later, after the tanker Sea Empress ran aground at the entrance to Milford Haven in February 1996, spilling more than 70,000 tonnes of oil. His report on that incident identified the lack of overall control in the event of a maritime casualty, leading to the creation of the role of ‘SOSREP’ – the Secretary of State’s Representative – to act as the controlling hand in any response effort.

These two events – as well as the earlier wreck of Exxon Valdez in Alaska – put an end to single-hull tankers once and for all. And, it must be said, since then the idea of ‘substandard shipping’ has

become a thing of the past – although the emergence of a ‘dark’ or ‘shadow’ fleet as a way of circumventing sanctions, as is apparent now in the movement of Russian fuel, risks a return to substandard operations.

Also in 1994, the argument about Kemler versus Hazchem codes was still rumbling on. The UN ECE’s experts in WP15, which is responsible for ADR, were insistent that the European system should be implemented for domestic as well as international transport across all ADR contracting parties. UK fire brigades made representations via the UK Home Office and the European Fire Brigades Federation, promoting the Hazchem concept as the preferred pan-European emergency action system but this failed to make it into ADR, just as the European Commission was preparing the Framework Directive. Still, at least the UK managed to keep the Hazchem system for domestic transport, and it is still in place thirty years on.

Another hot topic among the ADR crowd in 1994 was the use of special agreements; these had proliferated since being introduced in 1964, initially as a way to permit the use of tanks manufactured from polyester resin with glass fibre – what we might now call FRP tanks – in those countries that were happy to allow them. In the thirty years since then, the number of special agreements had mushroomed –Special Agreement 3478 had just been created. As HCB said at the time, this amounted to a whole additional version of the technical annexes. In response, WP15 agreed in September 1993 to limit the validity of special agreements and other temporary derogations to five years. That limit is still in ADR.

LEARNING BY TRAINING

by Arend van Campen

ENTROPY OR NEGENTROPY – ORDER OR DISORDER?

THE FIRST LAW of thermodynamics is the Law of Conservation of Energy. Universal energy is constant - energy is never lost, it changes its form. Energy to do work is an accepted definition. When it is displaced or dissipated, it is still available for work somewhere else, but made unavailable for work here.

The second law of thermodynamics can be described as follows: There are two kinds of processes, heat and work, that can lead to a change in the internal energy of a system. Heat always flows from hot to cold regions. When a quantity of heat flows out of a hot body, its entropy decreases by the amount of heat divided by the original temperature. When that same quantity of heat flows into a cool body, its entropy increases by the amount of heat divided by the original temperature of the cool body. This is an irreversible process.

This is equal to any change in the energy of a living system. It results in a corresponding change in the energy of the surroundings inside and outside that system.

In other words, quantified energy cannot be created or destroyed. Information influences matter and energy because it always is a part of them. In fact matter, energy, information and mass form one physical reality because every particle, atomic or subatomic, every biological cell which form the fabric of all existence re: living systems, contain information in themselves about themselves.

Entropy and Negentropy can be understood and used as:

Physical Entropy

A measure of uncertainty about the state of a physical system. One state amongst all possible states it can be in.

Information Entropy

A measure of uncertainty about a message. One message among all possible messages that a communication source may produce.

Both forms of entropy can be attributed to a ‘cost’ of information or energy which needs to be used to restore disorder towards order (e.g. cleaning up your bedroom). Information relating to useful work to be done (energy) in physical systems such as heat or steam and communication systems is the need for correcting information by adding or deleting meaning to convey a clear message = also work to be done (energy).

Entropy in the context of our entropic universe (second law of thermodynamics) can be understood as:

1. Beneficial: it allows for life to be formed and sustained. In an non entropic universe, nothing would move.

2. Future: entropy can’t decrease, it increases over time and will lead to maximum universal equilibrium, end of times (heat death).

Entropy and negentropy can both be interpreted as information. Entropy as the information we don’t have and negentropy as the information we do have. The potential disorderly impact of using or not using information is key, as follows: less energy, more entropy; more energy, less entropy.

For our work in the petrochemical industry, awareness of entropy and negentropy is crucial. Imagine doing a job without sufficient information? And yet, this is precisely what I have been observing during my trainings worldwide. People don’t use optimal information, because they are unaware of entropy.

This is the latest in a monthly series of articles by Arend van Campen, founder of TankTerminalTraining, who can be contacted at arendvc@ tankterminaltraining.com. More information on the company’s activities can be found at www.tankterminaltraining.com.

TALL TALES OF HAZMAT

By Grahame Moody

LEARNING LESSONS

DOES EVERY DISASTER produce meaningful prevention methods? Do even most disasters produce them? There is more to this than meets the eye – ‘learning lessons’ can be misleading.

While identifying lessons is relatively straightforward, true learning is much harder. Lessons tend to be learned on the hoof and not made permanent, as opposed to being generalised in order to become institutionalised.

Mistakes are often repeated incident after incident, even though specialists in this field can predict the problems that will arise in major incidents. Common problems include communication system failures, fractured command and control structures, and slow resource deployment.

There are factors that unfortunately contribute to repetition, namely uncertainty and Infrequency because the rarity of disasters makes it challenging to validate response strategies effectively.

Complexity Disasters occur in multifaceted contexts, such as simultaneous natural hazards and conflict.

Perishable Lessons Even when lessons are identified, they may not lead to lasting behavioural changes.

Predictable problems Certain issues (e.g. communication failures) recur across incidents.

In summary, while we strive to learn from disasters, the road to meaningful prevention remains complex. It requires sustained effort, institutionalisation of lessons, and a commitment to continuous improvement.

For example, the capsizing of the car ferry Herald of Free Enterprise in 1987 was exacerbated by the presence of dangerous goods, both declared and undeclared. That tragedy was mainly caused by the failure of the crew to close the bow doors (the assistant bosun was asleep). However, the nature of the cargo making matters worse led to lessons being identified and actually implemented.

As a result of this disaster, much stricter controls were introduced all the way through the maritime transport chain, from cargo bookings to documentation to load checking, right through to stowage on board ship.

Transporting dangerous goods is, in itself, a critical operation that requires careful planning, handling, and execution to ensure the safety of people and the environment. Let us explore some key lessons

learned from disasters involving the transport of hazardous materials:

Understanding the risks First responder personnel should receive specialised training to recognise the hazards involved in incidents. Their role is crucial in preventing further damage or injury and mitigating risks. Emergency response procedures must include measures to contain and control the spread of dangerous goods. Chemical composition matters The chemical composition and quantity of the transported substance significantly influence the consequences of accidents.

Dangerous goods can be harmful to people, the environment and infrastructure when transport accidents occur. Learning from history is essential to avoid repeating the same mistakes. To reduce risk during the transport of dangerous goods, consideration should be given to:

Optimising transport routes Choose safer paths that minimise exposure to densely populated areas and sensitive ecosystems.

Collaboration and preparedness Collaboration among manufacturers, receivers, government agencies, and emergency services is crucial. Preparedness includes training, communication, and coordinated response efforts. Containment measures play a vital role in minimising the impact of dangerous goods incidents.

In summary, learning from past disasters helps us build safer transport systems, protect lives, and safeguard the environment. By implementing preventive measures and optimizing infrastructure, we can reduce risks associated with transporting hazardous materials.

During crises, effective communication is critical for managing emergencies and minimising harm. Here are some strategies to enhance communication:

Clear Protocols and Roles Establish clear communication protocols for different scenarios. Define roles and responsibilities for responders, authorities, and affected parties. Ensure everyone knows who to contact, how, and when.

Unified Communication Channels Centralise communication channels to avoid confusion. Use tools such as emergency hotlines, broadcast systems, and official social media accounts. Provide consistent updates across all channels.

Multilingual Communication In diverse communities, multilingual communication is crucial. Translate messages into relevant languages. Use pictograms, symbols, and visual aids for

universal understanding.

Real-Time Information Sharing Use technology to provide real-time updates. Emergency apps, SMS alerts and radio broadcasts can all be used to disseminate critical information. Technology can also be extremely useful by sharing details on evacuation routes, shelter locations, and safety measures.

Empathy and Compassion Show empathy in communication. Acknowledge fear and uncertainty. Use reassuring language and emphasise community support.

Social Media Monitoring Monitor social media platforms for rumours, misinformation, and urgent requests. Respond promptly and correct false information as soon as it appears.

Two-Way Communication Encourage feedback from affected individuals. Listen actively to their concerns. Address questions and provide accurate answers.

Coordination Among Agencies Foster collaboration among emergency services, government agencies, and anyone else involved. Share information seamlessly to avoid duplication or gaps.

Visual Communication Tools Use maps, infographics, and videos to convey complex information. Visual aids are very good at helping people understand risks and actions.

Training and Drills Regularly conduct communication drills for responders and the public. Practice using communication tools effectively. Remember, effective communication saves lives and ensures a coordinated response during crises.

This discussion avoids aviation tragedies involving dangerous goods and focuses on lessons learned from avoidable disasters, although that terminology seems horribly flippant. Also, aviation accidents involving dangerous goods are the subject of another discussion (…a mythtery).

The four main modes of transport all have their own unique codes of operation and their own ways of dealing with dangerous goods, irrespective of how harmonised they have become with each other.

Each of the four modes of transport has its own inherent risks and each of the modes of transport has its own way of dealing with them. Legislation is only half the battle; compliance with the legislation seals the deal.

This is part of a regular series of articles by Grahame Moody, senior analyst (technical services) of Hazmat Logistics, who can be contacted at sales@hazmatlogistics.co.uk. More information on the company’s activities can be found at www.hazmatlogistics.co.uk.

ALMOST THERE

MULTIMODAL • THE JOINT MEETING CONCLUDED ITS WORK ON THE 2025 TEXTS OF RID, ADR AND ADN AT ITS SESSION IN MARCH. ITS DECISIONS REMAIN TO BE RATIFIED BY THE MODAL BODIES

THE JOINT MEETING of the RID Committee of Experts and the Working Party on the Transport of Dangerous Goods (WP15) held its spring 2024 session in Bern from 25 to 28 March. Due to a tight schedule, the session kept itself largely concerned with revisions to amendments already adopted and some minor changes, with a few items adopted for entry into force in 2027.

The role of the Joint Meeting is to provide a forum for the modal bodies that oversee the three sets of European dangerous goods transport regulations, ADR (road), RID (rail) and ADN (inland waterways); ADR is being used more widely than just in Europe, resulting in non-European countries now attending the meetings of WP15. The aim of this forum is to encourage the harmonisation of the three sets of regulatory provisions, the better to ensure the seamless multimodal transport of dangerous goods across Europe.

The texts of RID, ADR and ADN that will enter into force on 1 January 2025 are now nearly complete; the Joint Meeting was to be followed by separate sessions of WP15 (for ADR) and the RID Committee of Experts, at the end of which the full list of amendments could be prepared.

The Joint Meeting’s spring session was chaired for the first time by Silvía Garcia Wolfrum, who has stepped up following the retirement of Claude Pfauvadel. The new vice-chair is Soedesh Mahesh (Netherlands). The session was attended by representatives of 22 full member countries (including the US) as well as Zimbabwe, along with the EU Agency for Railways (ERA) and 13 nongovernmental organisations.

The first part of this two-part report in the previous issue (HCB May 2024, page 8) covered issues related to transport in tanks, standards and a few matters of interpretation.

This second and final part of the report looks at the remainder of the agenda.

TRANSPORT OF GASES

Liquid Gas Europe (LGE), following up on the decision at the previous session to update the graph at the end of packing instruction P200, arrived with text for a new note to clarify the intention of the graph. The Joint Meeting accepted the text, which will appear alongside the graph in the 2025 editions of the regulations:

Note: The graph above can be used to determine the correct filling ratios for the mixtures listed in 2.2.2.3.

LGE also continued its campaign to revise the definition of ‘liquefied petroleum gas’ to reflect the use of bio- or renewable material.

As it stands, the relevant UN entries, 1075 and 1965, refer specifically to either ‘petroleum’ or ‘hydrocarbon’, which do not, strictly speaking, cover the new brands of bio-LPG and renewable dimethyl ether (rDME) that are coming onto the market. LGE proposed adding a new special provision to those UN entries specified, so as to make it clear that material produced from renewable sources can also be covered, as well as a new definition for ‘LPG’.

As this amendment will not enter into force until the 2027 editions of the regulations appear, and also that the UN Sub-committee

of Experts on the Transport of Dangerous Goods (TDG) is due to discuss LPG/DME blends at its June 2024 meeting, the Joint Meeting felt it would be best to defer a final decision until its next session in September 2024. LGE will provide an updated document for that meeting.

The European Industrial Gases Association (EIGA) reported a problem that has emerged since the 2023 editions of RID/ADR/ADN came into force; the current text includes an additional marking requirement for existing acetylene cylinders, prompted by a decision made by the UN TDG Sub-committee in 2021. Although EIGA supported the change, in practice it has proved impossible to implement as, due to their design, certain types of non-UN pressure receptacles do not have the space needed to carry the additional marking. EIGA appealed for a new transitional measure to allow such cylinders to continue to be used.

Some delegations supported the proposal but others recommended alternative methods of cylinder marking such as additional neck

rings. There was also a suggestion that the UN TDG Sub-committee should be asked to resolve the issue. In the meantime, it was agreed that a multilateral agreement could be concluded to extend the compliance date until 2027. EIGA offered to present a revised proposal at the next session.

EIGA had a similar problem with another new requirement for the marking of new acetylene cylinders, which again places an impossible requirement on non-UN cylinders. EIGA offered a new 6.2.3.9.9.1 to provide a deviation for such cylinders. In this case, the Joint Meeting did not agree with EIGA’s proposal, though a more detailed paper may be submitted for the next session.

EIGA had a measure of success with its third paper, which included a modification of the requirements for US Department of Transportation (DOT) pressure receptacles. The relatively new 1.1.4.7 allows for the import and export of such pressure receptacles but the headings of 1.1.4.7.1 and 1.1.4.7.2 refer to ‘gases’ rather than ‘pressure receptacles’. As P200 applies to some substances that are not

gases of Class 2, the use of the word ‘gases’ in these cases is misleading. An informal document from the US supported the change but offered a slightly different text to that proposed by EIGA.

The Joint Meeting stressed that it was not the intention of 1.1.4.7 to exclude the transport of non-gaseous substances and agreed to make the suggested change, to take effect in 2027. Again, it was suggested that a multilateral agreement might be put in place to allow the transport of the affected substances. The titles of 1.1.4.7.1 and 1.1.4.7.2, respectively, will be amended in 2027 to read:

Import of dangerous substances in pressure receptacles

Export of dangerous substances in pressure receptacles and of empty uncleaned pressure receptacles

LGE sought an amendment to P200 to permit the interval between the period inspection of LPG cylinders manufactured according to EN 14140 to be extended from 10 to 15 years, as already exists for those cylinders manufactured according to EN 1442, EN 13222-1 or Annex I, parts 1 to 3 to Council Directive 84/527/EEC. Transitional provision 1.6.2.9 does allow such an extension but it is not made explicit in P200(12)(1.3).

After LGE provided some supporting information in an informal document, the Joint Meeting adopted the amendment proposed, inserting a reference to EN 14140 in P200(12) (1.3). Some delegations indicated they would look to conclude a multilateral agreement to offer a solution pending the implementation of the change in the 2027 texts.

The European Cylinder Makers Association (ECMA) raised a technical issue relating to type 4 pressure receptacles manufactured in accordance with EN 17339. These cylinders, which can be elements of both batterywagons/battery-vehicles and multiple element gas containers (MEGCs), have a non-metallic

liner, either plastic or welded metal, with a composite material overwrap. Due to this method of construction, some manufacturers require that a minimum pressure be maintained during carriage, which could be at least 5 bar and possibly up to 20 bar. While such pressure receptacles are specifically approved for the carriage of UN 1049 Hydrogen, compressed, when being transported for assembly, maintenance or disposal, however, they are typically filled with UN 1002 Air, compressed, UN 1066, Nitrogen, compressed, or UN 1956 Compressed gas, nos, in order to maintain the required pressure. This should be reflected in the regulations, ECMA felt, seeing that, as things stand, such transport is not in compliance.

The proposal attracted several comments and questions, some of which were set out in an informal document from France. Following discussion, it was agreed to resume consideration of the proposal at the next session of the Joint Meeting, on the

basis of a revised and more detailed proposal from ECMA.

ECMA also reported that similar pressure vessels are employed for the storage of high-pressure gases in fixed locations, as they have a lower weight than other types of cylinder and so lend themselves to certain installations, such as on the roof of a building. In this case, pressure vessels are constructed in accordance with design codes recognised by the relevant competent authority. In order to be able to move such pressure vessels, a new special provision would be required; ECMA offered a proposed text.

While there was general support for ECMA’s argument, it was agreed that its proposal was too broad and further work was needed to make it more specific to the topic ECMA outlined. ECMA will return with a more detailed proposal for the next session.

LGE, in an informal document, raised the topic of the marking of LPG cylinders, specifically the allowance provided by 6.2.3.9.4

that, when used for the carriage of UN 1965 Hydrocarbon gas mixtures, liquefied, nos they do not need to be marked with the mass of the cylinder and the minimum wall thickness.

LGE’s point was that many non-European countries that now apply RID/ADR/ADN use other UN numbers for LPG (such as 1011, 1075 or 1978). It sought the Joint Meeting’s opinion on whether it made sense to extend the coverage of 6.2.3.9.4.

The Joint Meeting offered support in principle but asked for more information. LGE promised to return with an official proposal at the next session.

EIGA also provided a report from the intersessional working group on test periods for battery-vehicles filled in accordance with packing instruction P200, which had met in November 2023 with the aim of working up a formal proposal for submission to the Joint

reported that the proposal will be limited to seamless steel Type 1 cylinders and tubes for helium and hydrogen, compressed. The paper elements of battery vehicles, the valves and previous session on the use of intermediate bulk containers (IBCs) for the transport of UN 2672 Ammonia solution at a concentration of 35 per cent. Its informal document recapped earlier concerns, and asked for contributions

Tel: +44 (0)870 850 50 51

Email: sales@labeline.com www.labeline.com

Germany, meanwhile, offered its own informal document, reiterating its concerns with the proposal. The UK added some questions for delegates, in order to get a clearer picture of

what is the highest concentration of ammonia concentration being transported in IBCs and, where IBCs are being used, are vents routinely fitted? The UK plans to use the responses to

these questions in drawing up further proposals to present to a future session of the Joint Meeting.

PENDING ISSUES

There were a few proposals that had been carried over from earlier sessions that the Joint Meeting now sought to finalise, to allow the amendments to be included in the 2025 texts of RID/ADR/ADN. The first of these came from the European Council of the Paint, Printing Ink and Artists‘ Colours Industry (CEPE), on the topic of performance tests for the packaging of small quantities of paints and printing inks classified as environmentally hazardous, UN 3082. The problem goes back to the identification of certain water-based paints as environmentally hazardous as a result of the preservatives they contain. Industry continues to experience significant difficulties in sourcing suitable UN-approved packagings for the transport of these substances in small quantities. A transitional provision was included in RID/ADR 2023 but a more permanent solution would be welcome. CEPE also noted that the World Coatings Council (WCC) has made a similar approach at the UN TDG Sub-committee.

CEPE proposed certain changes to 1.6.1.51 to make the transitional provision more general in nature and to extend its applicability by a further two years to 30 June 2027. The Joint Meeting at this point agreed only to amend ’30 June 2025’ to ’30 June 2027’.

The UN ECE and OTIF secretariats followed up on the results of earlier work by the Ad Hoc Working Group on the Harmonisation of RID/ ADR/ADN with the UN Recommendations, which had made proposals to both the Joint Meeting and the UN TDG Sub-committee; this has resulted in the Sub-committee making some further changes, some of which were not considered to be purely editorial, and would thus need to be adopted by the Joint Meeting. These all relate to batteries and have been adopted for inclusion in the 2025 texts.

To reflect the insertion of parallel requirements for sodium ion batteries alongside the existing provisions for lithium cells and batteries, 2.1.5.2 is amended to read:

Such articles may in addition contain cells or batteries. Lithium metal, lithium ion and sodium ion cells and batteries that are integral to the article shall be of a type proven to meet the testing requirements of the Manual of Tests and Criteria, Part III, sub-section 38.3. For articles containing pre-production prototype lithium metal, lithium ion or sodium ion cells or batteries carried for testing, or for articles containing lithium metal, lithium ion or sodium ion cells or batteries manufactured in production runs of not more than 100 cells or batteries, the requirements of special provision 310 of Chapter 3.3 shall apply.

The words “or sodium ion cells or batteries” are inserted after “lithium cells or batteries”, twice in each case, in packing instructions P006(5) and LP03(4) and in 5.2.1.9.1. The term “lithium battery mark” had already been replaced by “lithium battery or sodium ion battery mark” but, in a flourish of good sense, this has now been replaced by “battery mark” in 5.2.1.9 and SP188.

It was noted that further editorial corrections by the secretariats would be considered at the forthcoming sessions of WP15 and the RID Committee of Experts’ standing working group.

France asked for an editorial modification to the newly adopted provision AP12, relating to the carriage in bulk of specific categories of wastes containing asbestos (UN 2590 and 2212). Having met with carriers, it emerged that the term ‘liners’ is vague. The third paragraph of AP12 provides definitions for both the inner lining and outer lining, which suggests that there is another structure to the packaging as well as the two liners. To avoid misinterpretation, France suggested this should be changes to ‘layers’ (‘enveloppes’ in French and ‘Schutzhüllen’ in German). That wording should also be reflected in the new CW38/CV38 in 7.5.11.

The Joint Meeting adopted the changes proposed by France, except that it chose ‘components’ for the English version, as from the 2025 texts.

Belgium queried the application of special provision 376 to damaged or defective cells and batteries; SP 376 requires such cells and

batteries to be packed and carried in accordance with P911 or LP906, both of which require “surrounding conditions in which the packaging may be used and carried…”. However, neither P911 nor LP906 include details about how these “surrounding conditions” are to be communicated to all parties involved in the transport chain. There is, Belgium contended, a significant risk that the specified conditions will therefore not be met. Belgium had raised this issue at the previous session in an informal document, urging that competent authority approval should be sought, at least for transport by rail or inland waterways, but this proposal was

The Joint Meeting had, though, promised to resume consideration of the topic on the basis of an official document from Belgium, which was now provided. In it, Belgium proposed the inclusion of a new special provision to require the consignor to inform the loader and carrier of the surrounding conditions, and to provide the name of a responsible person and their

While there was some support in principle for the proposals, some experts felt further

2024 IATA DGR

consideration was needed. Following the discussion, Belgium said it would work on an updated proposal and submit this to the UN TDG Sub-committee at its June 2024 session.

There being little time left to start discussion of new proposals for this biennium, those that were presented were largely editorial in nature, though not all found favour among the Joint Meeting experts. The first of these came from Russia, which asked for the addition of definitions for ‘net mass of dissolved gas’ and ‘gross mass of dissolved gas’ in 1.2.1. Its paper said this would clarify whether the solvent should be included in the calculation.

Most of those who spoke on the proposal felt that more detailed justification was required. A revised proposal will be prepared for the autumn session of the Joint Meeting.

Do you consign Dangerous Goods?

Finland queried the intent of 5.4.1.1.3.1, which says that the technical name of an nos substance, as required by special provision 274, need not be added in the case of wastes. Its paper said that this provision should apply

composition, classified according to 2.1.3.5.5.

Since 1st Jan 2023, all UK consignors must have an appointed DGSA.

It offered some text to clarify the provision.

The Joint Meeting agreed with Finland’s proposal, and amended the last paragraph of 5.4.1.1.3.1 to read:

If the provision for waste as set out in 2.1.3.5.5 is applied, the technical name, as prescribed in Chapter 3.3, special provision 274, need not be added.

This change will be included in the 2025 editions of the regulations.

The Netherlands came to the Joint Meeting with a proposal that it had already submitted to WP15, namely the clarification of the term ‘closed vehicle’. It said that ADR is not clear as to whether a curtain-sider can be considered ‘closed’ and that the UN Model Regulations has a better definition. Its paper to the Joint Meeting included a comparison of the definitions of various types of wagon and vehicle in RID and ADR, which highlighted the current vague definition.

The Joint Meeting agreed with the Netherlands’ proposal in principle, though some experts felt that transitional measures would be required and others were concerned about the possible impact on operators. The Netherlands offered to check if any consequential amendments might be needed and to consult with WP15 at its next meeting.

Sweden reported on a growing problem in its country, highlighted by a recent outbreak of African swine fever among wild boars. There is a need to transport infected carcasses on a large scale in a safe manner. Bulk container codes BK1 and BK2 are assigned to UN 3373 Biological substance, category B (animal material only) but it is difficult to find appropriate containers in Sweden. In addition, there is no ‘VC’ code assigned to UN 3373. As VC3 is assigned to UN 3291 Clinical waste, unspecified, nos, Category B, it would seem sensible to assign it also to UN 3373.

In addition, Sweden pointed out that animal material of Category A (UN 2814 and 2900) may also need to be carried in bulk for the same reasons. Again, the BK1 and BK2 codes

are assigned to these UN numbers but there is no ‘VC’ code. Would it be appropriate to add VC3 against these entries as well? And what about solid medical waste of UN 3549, for which there is no bulk code assigned? This might be a good time to rationalise these provisions, given the potential for a further pandemic.

The Joint Meeting agreed to Sweden’s first proposal and added ‘VC3’ in column (17) of the Dangerous Goods List against the second entry for UN 3373. This change will appear in the 2027 editions of the regulations. There was also some discussion of Sweden’s other points, which may form the basis of a revised proposal for a forthcoming session.

In an informal document, Germany argued that the requirement in 5.3.2.2.1 of RID/ADR/ ADN, which requires that the fitment of orange-coloured plates must withstand engulfment in a fire, should apply to the material of the plate itself as well, if the plate is to provide the necessary hazard communication. There have been various discussions on the fire resistance requirements in the past, as they are currently rather vague. There was an exchange of views

but no resolution; Germany invited those who spoke to clarify their positions so that a new document can be prepared for the next session.

The UK had noticed that, at the recent session of the RID Committee of Experts’ standing working group, an amendment had been adopted that used the word ‘ton’ rather than ‘tonne’. In an informal document, the UK pointed out that ‘ton’ is an imperial unit and is not the same as the metric ‘tonne’. It noticed that ‘ton’ is used occasionally in RID/ADR/ ADN and asked for these instances to be corrected to ‘tonne’. The Joint Meeting acceded and, to take effect in 2025, made the change, which affects the table in 1.2.2.1 (in the row for ‘Mass’).

WORKING GROUP REPORTS

Spain presented an update on the discussions of the informal working group on the reduction of the risk of a boiling liquid expanding vapour explosion (BLEVE), which has been tasked with developing technical requirements for fire suppression systems installed in the engine compartment of a vehicle, as required by 9.7.9.1 of ADR. The

VARIOUS CHANGES HAVE BEEN ADOPTED FOR 2025 TO THE PROVISIONS COVERING THE TRANSPORT OF WASTE DANGEROUS GOODS

working group has been working with the Swedish testing institute RISE, which has prepared a draft proposal. This has been discussed by the working group and with the UN ECE secretariat, the European Committee for Standardisation (CEN) and the World Forum for Harmonisation of Vehicle Regulations (WP29). The working group met again this past January to review an new draft proposal, which is intended to be developed into an independent technical code; it is expected that this will soon be ready to take back to WP29, after which it will be available for use in ADR.

The working group had also begun discussions on the thermal protection of wheels, though no definitive conclusions have so far been reached; discussions are expected to continue at the working group’s next meetings.

Germany and the International Road Transport Union (IRU) provided a report on the latest meetings of the informal working group on e-learning. In November 2023 the group agreed to limit the potential for e-learning to refresher training and developed a proposal for amendments to 8.2.2.5. At this point there was a request to clarify the meaning of ‘e-learning’, to differentiate those distance learning solutions where an instructor is present online. Proposals for new definitions for 1.2.1 were developed. It had been hoped to have all this in a final form in time for the

March session of the Joint Meeting but that was not the case; a lunchtime meeting was arranged during the session, which made more progress, but it was felt necessary to hold another online meeting in April, where amendments for ADN will be considered.

The European Waste Management Association (FEAD) reported on the eight meeting of the informal working group on the transport of hazardous waste, which took place on 8 February. The meeting reviewed the progress made so far in addressing the issues adopted by the Joint Meeting in 2019 and the further work that has been carried out. Some of that is working its way through the rulemaking process: for example, France said it would initiate a multilateral agreement to allow the new rules on the transport of wastes containing asbestos, adopted for entry into force in 2025, to be used before that date. [That agreement, M356, was initiated in early April and has so far been counter-signed by Germany and San Marino.]

The adoption of the new 5.4.1.1.3.2 in the 2023 texts of RID/ADR/ADN to allow the mass of waste to be estimated in certain circumstances has not proven very useful in practice, as its applicability is very limited. FEAD, in collaboration with Ireland, has since then submitted proposals to extend the scope of the provision and further such action was discussed. It is likely that a new proposal will be submitted to the September session of the Joint Meeting.

Other topics still being discussed by the working group include: the carriage of empty uncleaned packaging, with ideas for a new provision (provided by Ireland), tightly defined as being applicable only to waste management activities; the carriage of solid materials contaminated with clinical wastes and pharmaceuticals; household hazardous waste collections; the carriage of batteries in bulk; and the carriage of used pressure receptacles (e.g. aerosols), which is awaiting a proposal from Austria.

France provided a report from the informal working group on the improvement of transport of dangerous goods occurrence reporting, which had met in October 2023. It was agreed that the criteria described in 1.8.5.3 should be clarified. For example, for a carriage under 1.1.3.6, in the case of loss of containment there is no reporting to be done, but in the case of an imminent risk of loss of containment a report should be established even if the quantities carried are under 1.1.3.6. A modification of those criteria could be a benefit to ensure a global risk analysis. The working group was of the opinion that the notion of imminent risk of loss should be better specified by adding a list of cases.

The working group also felt that the notion of a ‘short-term report’, to include those factual elements available at the point of the occurrence, and ‘long-term report’, for those elements that require further investigation, was sound. This is the approach taken under the Common Safety Methods on the Assessment of Safety Level and Performance (CSM ASLP) of Railway Operators.

Progress has been made on drafting proposals for revision of 1.8.5.1, 1.8.5.2 and 1.8.5.4 and it is expected that a formal proposal will be made to the Joint Meeting at its next session. Discussion of the criteria in 1.8.5.3 is continuing.

The next session of the Joint Meeting will be held in Geneva from 9 to 13 September 2024. Its spring 2025 session will take place in Berne from 24 to 28 March. It was also noted that the Ad Hoc Working Group on the Harmonisation of RID/ADR/ADN with the UN Recommendations is scheduled to meet in Geneva on 15 and 16 April 2025.

GOOD TO SEE YOU AGAIN

about the increasing problem of counterfeit airbags and how industry and federal agencies can work together to resolve the issue.

RAISE THE PROFILE

THERE ARE MANY routes available for the harried dangerous goods professional to keep on top of regulatory changes – reading HCB among them. But perhaps the most fun way to learn about the latest amendments is to attend the Annual Forum of the Council on Safe Transportation of Hazardous Articles (COSTHA). This year’s event, the first to be entirely in-person rather than online since 2019, took place in Fort Myers, Florida from 21 to 26 April and attracted around 220 people. For many COSTHA members, this was the first time they would have managed to meet their peers in person, something that is a frequently overlooked advantage of the event. It has been COSTHA’s great success over decades to provide plenty of opportunity for conversation and the sharing of problems and solutions, not just between COSTHA members

but also with the regulators themselves. And the regulators do attend in numbers, not only from the US federal agencies but also from other territories.

The Annual Forum may be the highlight of the COSTHA year but there is constant activity, with attendance at international regulatory meetings and quarterly sessions for its members alongside advocacy efforts and information bulletins. In fact, the plenary conference forms only a small part of the Annual Forum, with sectoral meetings before the main sessions and training courses, provided by COSTHA members, book-ending the week. As an illustration of what goes on, the North American Automotive Hazmat Action Committee (NAAHAC), one of COSTHA’s sectoral groups, held a meeting prior to the conference, where there was a big discussion

Another longstanding topic at COSTHA has been improving the image of the hazmat/DG professional. Work in this area started over a decade ago, with prompting from the Pipeline and Hazardous Materials Safety Administration (PHMSA). It was clear that those working in the field do an expert job but it is not well rewarded and not highly regarded within many organisations; there is also no clear career path. COSTHA established a working group, currently being led by Tracie Cady of the Bureau of Dangerous Goods (BDG) and Carrie Ott of Honeywell, with support from COSTHA staffers L’Gena Shaffer and Chris Yakush.

The team’s mission is to develop a strategic approach to enhancing the value-adding and key role image of those in the business so as to help them achieve full recognition within their companies, the industry at large, government agencies and the general public. The main problem, COSTHA says, is that it is very difficult to define the role of the hazmat professional within an organisation – these

employees may sit in various different departments, depending on the company structure, and have different roles and responsibilities. The team is working on developing a template job description for three levels – beginner, intermediate and expert – and aiming to conduct a new salary survey (it was last carried out in 2012).

COSTHA has also arranged a series of professional development webinars, running through this year, to share experiences of career paths and help develop a ‘brand’ for DG professionals. This will culminate in a recap session, scheduled for 14 November. In addition, the team is working to create a document to act as a template for discussions with other associations and educational establishments, including the use of recognised accreditations such as the Certified Dangerous Goods Professional (CDGP) and Dangerous Goods Safety Adviser (DGSA).

This work will continue, probably for a long time. COSTHA is always open to new volunteers to help with the project.

IN GOOD HEALTH

Another focus project for COSTHA is the life sciences sector, where it has initiated a group with the mission of exploring common issues faced by the pharmaceutical and healthcare industries and identifying solutions to support companies in compliance activities for global transport. The Life Sciences Roundtable (LSR) group is led by co-chairs Janet KolodzieyNykolyn of Pfizer and Wim Verkuringen of Johnson & Johnson, with board members Jay Johnson (Labelmaster), Carolyn Weintraub (Reckitt) and Todd Haley (Eli Lilly) and support from COSTHA staffers L’Gena Shaffer and Ana Diaz.

The sector faces many issues during global transport beyond those relating to the transport of dangerous goods. There are particular packaging and classification issues, cold chain logistics, chain of custody requirements, and strict trade compliance. Other types of regulations may also apply to global shipments, including chemical control regulations such as the Toxic Substances Control Act (TSCA), Drug Enforcement Administration (DEA), Bureau of Alcohol,

Tobacco, Firearms and Explosives (ATF) and Chemical Weapons Convention (CWC), as well as customs issues.

LSR’s two active priorities include the adoption of special provision 601 from ADR into the US Hazardous Materials Regulations (HMR) and the UN Model Regulations, to provide an exemption for pharmaceutical products. SP601 states: “Pharmaceutical products (medicines) ready for use, which are substances manufactured and packaged for retail sale or distribution for personal or household consumption are not subject to the requirements of ADR”. These products do not present a hazard during transport and the inability to use the exception outside of ADR countries places COSTHA members at an economic disadvantage.

In October 2020, COSTHA petitioned PHMSA to incorporate the text of SP601 into HMR; this petition was denied in July 2021. Since then, LSR members have met with PHMSA and with

packaging companies to find a way to get around PHMSA’s concerns. At its meeting at the start of the Annual Forum, LSR agreed to submit a request for a DOT Special Permit, which would focus on last-mile deliveries.

A second priority issue is the shipment of samples of energetic materials. The problem is that there are no excepted quantity provisions for explosives, so such samples have to be shipped in full compliance with all provisions. There is a wide belief within industry that this problem needs to be addressed; the European Chemical Industry Council (Cefic) has been active in developing a potential solution using specific exemptions and COSTHA has put forward proposals for amendment of the UN Model Regulations. It has also requested a DOT Special Permit, which was denied by PHMSA.

Given the lack of progress in terms of new rulemaking, LSR has been focusing on developing a best management guidance

document for the screening of energetic compounds that are not fully tested. As such, these cannot be accurately classified for transport and, as the regulations stand, they do not accurately reflect current industry practices for assessing their risks. The group says that, by referencing scientific modelling and quantitative structure–activity relationship (QSAR) models, a more realistic classification of samples can be achieved; this avoids the ‘worst case’ default classification and also unnecessary animal testing.

The project is continuing, with the next part involving the benchmarking of current compound classification practices in the life sciences sectors.

COSTHA’s Life Sciences Roundtable has been working for more than five years now and has generated a number of proposals and petitions that have provided relief for industrial shippers. Among the most recent successes were a change to the consumer commodity and limited quantity marking provisions, which was addressed in the HM-215Q rulemaking, finalised in May 2023, and the alignment of US de minimis exceptions with those in the UN, which was incorporated in HM-219D, issued in March 2024.

The next projects are likely to involve discussion at the UN Sub-committee of

Experts on the Transport of Dangerous Goods (TDG). LSR has drafted a paper for COSTHA to present at the July session of the TDG Sub-committee on the shipment of used medical devices, such as those being returned for repair, that have been exposed to biological components. A second issue is the shipment of UN 3373 Category B infectious substances along with lithium batteries; this is being discussed by a correspondence group prior to the presentation of an informal paper at the UN.

LOOKING ABROAD

While COSTHA’s membership is skewed towards North America corporations, many of them are multinational firms doing business around the world; in addition, it has a significant representation of overseas members. As such, the Annual Forum’s wrap-up of international regulatory developments is an important element of the event.

The structure of the international framework was explained by Duane Pfund, coordinator of PHMSA’s International Program and also chair of the UN TDG Sub-committee. Duane laid out the role of the Sub-committee and the way that its decisions are passed on to the international modal authorities and to

regional and national rulemaking bodies.

At the time of the COSTHA meeting, the TDG Sub-committee was halfway through its biennium, having held two sessions in 2023 and with two further sessions this year, prior to the adoption of the amendments that will appear in the 24th revised edition of the UN Model Regulations by the parent UN Committee in December.

Duane spoke about some of the topics that will be discussed during the first of the 2024 sessions, which is due to begin in Geneva on 24 June. Top of the agenda will, perhaps not surprisingly, be additional mitigation measures for the transport of lithium batteries, prompted by the International Civil Aviation Organisation (ICAO). A system theoretic process analysis (STPA) has been conducted during the consideration of amendments related to the state of charge, which has led to some proposals to introduce new mitigation measures in the Model Regulations.

ICAO will be progressing these potential amendments for inclusion in its Technical Instructions (which will then be picked up by the International Air Transport Association (IATA) in its Dangerous Goods Regulations). For the sea mode, the International Maritime Organisation (IMO) is currently considering the transport provisions for vehicles – including electric vehicles – in the International Maritime Dangerous Goods (IMDG) Code, which is also on the agenda at the Joint Meeting of RID/ADR/ADN Experts and the Working Party on the Transport of Dangerous Goods (WP15) that manages the road transport regulations in ADR. WP15 is also set to look at further work on reciprocity between EU and US cylinders.

BATTERY BRIEFING

Duane returned later in the meeting to bring attendees up to date with the latest developments in the transport of lithium batteries. ICAO’s safety objective is to introduce provisions to mitigate the risks posed by lithium batteries packed with or contained in equipment; it developed a bowtie diagram to identify the protective barriers and used the STPA technique to define potential mitigation measures and their effectiveness.

ICAO has been trying to get back to the fundamental considerations of battery safety, supported by data and incident reports; it also takes account of the economic impact and market feasibility of additional restrictions, and the issue of regulatory compliance liability for participants in the supply chain downstream of the original manufacturers. ICAO has been looking at the state-of-charge (SOC) issue, particularly concerns that requiring a lower SOC may lead to cell degradation. It also has to take account of the need to facilitate the transport of life-saving medical devices.

For batteries packed with equipment, there is a new ICAO recommendation due to take effect on 1 January 2025 that cells and batteries with a Watt-hour rating exceeding 2.7 much be shipped at no more than 30 per cent of their rated capacity. This recommendation will become mandatory as from 1 January 2026. Shipment of cells/ batteries with a higher SOC will be possible but only with approval from the State of Origin and State of Operator and they will have to adhere to Section I requirements. ICAO’s Dangerous Goods Panel is to provide guidance to competent authorities on the granting of such approvals.

ICAO is also to extend the 3-metre stacking capability test for lithium cells/batteries packed with equipment, which already exists for Section I cells/batteries in packing instruction P966, to cover Section II cells and batteries packed according to P969. This allows non-UN outer packagings to be used but they must be able to withstand a 3-metre stack, with that capability demonstrated by testing, assessment or experience.

ICAO is also recommending that UN 3481 lithium ion batteries contained in equipment are shipped at no more than 30 per cent of the battery rated capacity or 25 per cent of the capacity as indicated on the equipment. The 3-metre stacking test is also applied, via P970.

ICAO will also impose an SOC limit on battery electric vehicles (UN 3556, 3557 and 3558), with a battery exceeding 100 Watthours, from 1 January 2026. This provision also specifies a limit of 30 per cent of the battery rated capacity or 25 per cent of the indicated battery capacity.

These new provisions were originally planned to come into effect in tandem with new performance-based packaging standards for lithium batteries – the SAE G-27 initiative; however, work on this project is still ongoing and it is not now expected to be delivered

until next year; similarly, new simplified provisions designed to facilitate full compliance are also delayed until the latter part of 2025, as are classification provisions to provide a mechanism to identify and communicate the hazards associated with specific batteries during transport, for greater granularity with respect to classification of lithium batteries developed by the UN TDG Sub-committee and the Globally Harmonised System of Classification and Labelling of Chemicals (GHS).

COUNTING THE COST

As Duane had already advised, this ICAO work will be on the agenda at the July session of the UN TDG Sub-committee, along with the presentation of data from the Thermal Runaway Incident Program (TRIP). David Wroth of UL Standards & Engagement (ULSE) gave a presentation of that data at the COSTHA Annual Forum, explaining that the programme had been introduced as a formal process to take over from an existing, informal incident capture and reporting process that had been developed by airline dangerous goods managers. It is designed to maintain data in a more granular and consistent manner and to provide participants with airline-specific and anonymised industry data.

The participants are mainly North American airlines, with some Middle East carriers, as well as FedEx and UPS.

David reported that, in four years of tailored reporting, 792 incidents had been recorded up to the middle of March 2024; these include ‘near-miss’ and non-reportable incidents. Increasing participation by airlines has meant more data is available and TRIP is also now picking up lithium battery incident summaries from the Federal Aviation Administration (FAA).

There are some limitations, however. TRIP participants represent a sub-set of the airline industry, so this is not a global picture. Furthermore, the source of the information comes from the crew, who are generally more concerned about safety than data capture. In addition, airlines often lack the time or forensic processes to carry out root cause analyses. Looking specifically at thermal incidents (i.e. excluding near-misses and swollen or damaged batteries), TRIP recorded 414 events

between the start of 2019 and the end of 2023 – though this period included the Covid pandemic, which led to a sharp decline in flight numbers. However, it is clear that the figures for 2023 were well ahead of those for 2019 and that this increase is found almost entirely in passenger flights – the number of incidents in cargo aircraft has remained remarkably stable.

One salient outcome of the data analysis is that there has been a sharp fall in the number of incidents involving UN 3480 standalone cells and batteries; the largest problem is now found in UN 3481 packed with/contained in cells and batteries.

Within the limits that David outlined, TRIP is providing some valuable data to inform decision making by the regulators. More details can be found via https://mytripportal.org/.

The COSTHA Annual Forum also gave attendees a glimpse into how Europe is looking to regulate batteries, via a presentation by Marc Boolish of the legal firm Wiley, representing the Rechargeable Battery Association (PRBA). Marc began by noting that, while most Canadian provinces have legislation relating to battery recycling, only a

few states in the US have so far followed suit. The EU, by contrast, has been active in the area for some time – the first Battery Directive was passed in 2006 and established a framework for the collection and recycling of most types of batteries, with targets for recycling set to reach 45 per cent by 2016.

Marc noted that the focus of battery collection and recycling activities has changed over the years; before 2000, the main issue was preventing the leakage of heavy metals and toxic compounds from used batteries; after 2000 the additional elements of waste reduction and resource conservation were added; today, industry has to take account of broader sustainability and carbon reduction goals.

With this in mind, last year the EU enacted its new Battery Regulation; this will bring with it the need for suppliers to declare the carbon footprint of their batteries from 2024 (to be released in report form from 2026); battery ‘passport’ requirements will arrive in 2025, when the existing Battery Directive will be repealed. Next year will also see the start of feasibility studies on the phase-out of primary (non-rechargeable) portable batteries, due to

be completed by 2030. The Battery Regulation also includes a rolling process of additional enforcement.

An important aspect of this for the battery industry and its logistics partners is new harmonised specifications for labelling. Danish consultancy and engineering firm Ramboll and the German Institute for Applied Ecology (Öko-Institut) have been tasked with technical support for the development of those specifications, and are due to complete their work in July 2024. As Marc showed, there is a lot of information that will need to be included and the Regulation kindly offers a priority list of items that should be included if there is not enough space for everything.

CHINESE WHISPERS

It is difficult to avoid talk of lithium batteries at regulatory meetings but the other major topic in terms of international dangerous goods transport is China. Robert Kiefer, general manager of REACH24H USA, was invited back by COSTHA to bring attendees up to date with the latest developments.

Much of what Robert spoke about related to China’s Hazardous Chemicals Management processes, starting with the upcoming Law on Safety of Hazardous Chemicals, which is due to replace Decree No 591 by the end of 2028. This is still in draft form and due to be discussed by the State Council.

One item already in force is GACC Announcement No 29 of 2023, which introduced a new inspection mode for imported hazardous chemicals; this now requires each consignment to be accompanied by a declaration, which is reviewed for completeness, accuracy and consistency, and for each consignment to be physically inspected, either at the port of arrival or at the destination. This inspection checks whether the package is intact, whether the information on the package label DUTYHOLDERS

corresponds to that in the import declaration, whether the label and safety data sheet are prepared in line with Chinese standards, whether the package marking meet the requirements and match the import declaration, and whether the hazard properties of the contents are consistent with the import declaration.

Possibly more extensive is the ‘One Enterprise, One Chemical Product, One QR Code’ initiative, issued in January 2022 to enhance the digital and intelligent management of hazardous chemicals. The province of Guangdong initiated a pilot programme, which is not fully implemented, and a registration system was put in place in February 2022. Other provinces and cities have since introduced their own pilot programmes – importantly, Shanghai will pilot

the ‘Hazchem Traceability Code’ QR system as from this year.

There are also some important developments underway regarding the transport of dangerous goods. China opened a consultation on draft revisions to GB 6944 (Classification and Code of Dangerous Goods) and GB 12268 (List of Dangerous Goods) in 2023; these will update and replace the 2012 editions and bring China into line with the 22nd revised edition of the UN Model Regulations. Once finalised, they will enter into force 12 months later. In June 2023 China opened a consultation on a new standard for packagings containing a variety of dangerous goods, again to align with the 22nd revised edition of the UN Model Regulations.

Specifically relating to the transport of dangerous goods by road, a consultation was

opened in September 2023 to revise JT/T 617 to align with the 2023 edition of ADR; the revisions apply to the general provisions (617.1), classification (617.2), dangerous goods list and transport requirements (617.3), use of transport packaging (617.4), consignment (617.5) and the conditions of carriage, loading, unloading and handling (617.6). Once finalised, this will replace the 2018 version of JT/T 617.

China has also adopted revised provisions on the administration of the road transport of dangerous goods; these took effect on 4 December 2023. The most significant change is that ‘dangerous goods’ are now defined as those listed in JT/T 617 rather than in GB 12268.

The second part of this report on the 2024 COSTHA Annual Forum in next month’s HCB will concentrate on presentations relating to North America.

THE BEST WE CAN BE

COLLABORATION • LEADING US TRADE BODIES HAVE REAFFIRMED THEIR COMMITMENT TO WORK TOGETHER TO ENHANCE SAFETY AND SUSTAINABILITY IN THE CHEMICAL SUPPLY CHAIN

THE ALLIANCE FOR CHEMICAL DISTRIBUTION

(ACD), formerly the National Association of Chemical Distributors (NACD), and the American Chemistry Council (ACC) have signed a Memorandum of Understanding (MoU) to support continued collaboration and enhance safety and sustainability in the chemical supply chain, from manufacture to distribution. ACD and ACC recognise the value of their respective performance programmes, ACD Responsible DistributionTM and ACC Responsible Care®, in advancing these shared objectives.

The memorandum recognises the complementary nature of each organisation, their respective performance programs, and their members’ critical roles in the chemical supply chain. Through the MOU, ACD and ACC

pledge to work together to promote excellent performance, recruit unaffiliated organisations, and support public policy efforts to benefit the entire chemical industry.

“ACD has long worked in conjunction with ACC, and this memorandum represents a positive step forward in our continued commitment to upholding the highest standards in the chemical industry value chain,” says Eric R Byer, president and CEO of ACD. “The collaboration between chemical manufacturers and chemical distribution experts is essential to countless industries across the nation, and our performance programs are vital to improving the quality, safety, and sustainability of the entire chemical supply chain. We are excited to continue our collaboration with ACC to

support these programs and advance the best interest of our member companies.”

Since 1991, ACD Responsible Distribution™ has been a trusted, comprehensive set of environmental, health, safety, security and sustainability standards within the chemical distribution industry. This comprehensive framework demands continuous improvement in every phase of chemical storage, handling, transportation, and disposal.

SUPPORT FOR ALL

Launched in the US in 1988, ACC’s Responsible Care® program drives continual improvement and supports innovation in products and processes in manufacturing and throughout the supply chain. A mandate of ACC membership, Responsible Care® companies track and transparently report performance metrics, holding themselves accountable to employees, stakeholders and community members.

“Programs like Responsible Care® and ACD Responsible DistributionTM are vital to helping companies of all sizes understand and enhance their safety and sustainability performance,” says Chris Jahn, ACC president and CEO. “At their core, they help our industry be responsible stewards of our people and our planet. We are excited to embark on this next chapter of collaboration with ACD to meet our collective goals.”

ACD and ACC have a longstanding collaborative relationship, working together on many projects, including their upcoming golf tournament, Swings for STEM, which will raise money for the Future of STEM Scholars Initiative (FOSSI). The first of what is intended to be an annual event will take place in Lansdowne, Virginia on 24 June. FOSSI is a national industry-wide programme that seeks to increase the number of underrepresented professionals in the STEM workforce by providing scholarships to students pursuing preferred STEM degrees at Historically Black Colleges and Universities (HBCUs). FOSSI is dedicated to supporting those STEM scholars who would otherwise not have access to a STEM education by eliminating financial barriers.

www.acd-chem.com

www.americanchemistry.com

NEWS BULLETIN

NFPA APPLAUDED FOR WASTE ACTION

The US Chemical Safety and Hazard Investigation Board (CSB) has applauded the development by the National Fire Protection Association (NFPA) of new recommended practice (RP) for hazardous waste treatment, storage, and disposal facilities. The new RP, published as NFPA 401 this past December, responds to recommendations issued by CSB following its investigation of a number of incidents, including the 2006 fire and explosions at the Environmental Quality site in Apex, North Carolina and the 2011 explosion and fire at the Donaldson Enterprises fireworks disposal site near Honolulu, Hawaii.

During its investigation into the Environmental Quality fire, CSB found that there had been 21 other fire and chemical release incidents at hazardous waste facilities across the US in the preceding five years. As a result, it recommended that the Environmental Technology Council work with NFPA to develop a standard specific to hazardous waste treatment, storage and disposal facilities. The Board reiterated this recommendation in 2010 after it investigated an explosion and fire at the Veolia ES Technical Solutions facility in West Carrollton, Ohio, in which flammable vapour released from a waste recycling process ignited and violently exploded, injuring four workers and damaging approximately 20 nearby residences and businesses in addition to eight structures at the facility.

“Although it took several years, we appreciate NFPA’s efforts to develop this significant document,” says CSB chair Steve Owens. “It provides important guidance on practices and safeguards necessary to prevent fires and explosions associated with these types of hazardous materials and can help prevent similar incidents in the future.” CSB

Recommendations Specialist Adam Henson adds: “NFPA has successfully implemented the CSB’s recommendation – we look forward to continuing to publicise NFPA 401 in an effort

to prevent fires and uncontrolled chemical reactions at work sites across the country.”

NFPA 401 is available to purchase from the Association’s website at www.nfpa.org/ codes-and-standards/nfpa-401-standarddevelopment/401.

NTSB CITES BANK EFFECT

The US National Transportation Safety Board (NTSB) has concluded its investigation into the September 2022 collision of the chemical tanker Bow Triumph with a pier at a naval base in Charleston, South Carolina, which resulted in damage to both the vessel and the pier and damages put at $29.5m. NTSB says the incident resulted from a pilot manoeuvring the vessel too close to a bank in the Cooper River, causing ‘bank effect’, where the bow is pushed away from the bank while the stern is sucked towards it.

“Hydrodynamic forces reduce rudder effectiveness (squat and shallow water effect) and yaw the bow away from the closest bank and pull the stern in (bank effect),” NTSB’s

report says. “When manoeuvring in shallow waters such as channels, shoaling can reduce the water depth below charted or expected, and therefore exacerbate the forces on a vessel. Bank effect can have an undesired effect on vessels, even for the most experienced shiphandlers. Pilots, masters, and other vessel operators should consider the risks in areas known for shoaling when planning transits.”

NTSB is currently investigating a very similar incident on the same stretch of river involving the tanker Hafnia Amessi this past January 14, which caused $3m in damages to the same pier.

TSB STRESSES BRAKING

Canada’s Transportation Safety Board (TSB) has released its report on an uncontrolled movement of rolling stock, including three tank cars with sulfuric acid, at Canadian Pacific’s Toronto Yard in March 2022. In the incident, 103 rail cars ran for some 975 metres before seven cars derailed, including the three acid tank cars; there were no leaks and no injuries.

TSB determined that the hand brake test carried out by the CP train crew on the evening before the incident was inadequate, as it did not allow enough time for the slack between the cars to fully adjust before the air brakes were applied. When the air brakes were released the following day, to prepare the train for switching, the train began to roll downhill, with six hand brakes still applied. TSB notes that this event was one of four similar incidents at the same yard over the past five years, at least one of which also involved dangerous goods.

A notice was issued by Transport Canada, requiring CP to take safety actions, since when it has issued a revised operating bulletin and conducted further training at the site. Transport Canada has also increased its inspections at the Toronto Yard.

The full text of TSB’s report can be found on the Board’s website at www.tsb.gc.ca/eng/ rapports-reports/rail/2022/r22t0045/r22t0045. html.

TURN OF THE TIDE

CHEMICAL TANKERS • STRONG DEMAND AND TIGHT SUPPLY HAVE COMBINED TO CREATE HEADY DAYS FOR SHIPOWNERS. WILL THEY CASH IN OR CARRY ON?

THE GLOBAL CHEMICAL tanker market is currently going through one of the strongest bull runs in living memory. Demand is strong; swing tonnage has been kept busy in a firm clean products market; war threats and canal disruptions have added further to tonne-mile demand; and, perhaps most significantly, the orderbook remains small.

This is unusual. Shipping markets are notoriously cyclical, not helped by the fact that the normal response to a period of high rates is to order new ships, which tend to arrive in the fleet only after the market has come off its peak, hastening the downturn. This time around, though, operators have held off going to the yards. The market is more concentrated than it has ever been, encouraging caution in

this regard, and there are plenty of owners and investors eager to reap the rewards of a strong secondhand market, especially for stainless steel tonnage.

As well as restraint on the part of established owners, there are two more reasons for the low orderbook. For one, it is increasingly difficult to find newbuilding slots right now, with many of the major yards booked solid with gas ships through to 2027 or 2028. Secondly, there are lingering doubts as to the propulsion requirements for future ships, given that the International Maritime Organisation (IMO) is still working on its schedule for emissions reductions and energy efficiency improvements.

For now, the major operators are

concentrating on strengthening their balance sheets, reducing debt and, in many cases, delivering massive dividends to their shareholders. Odfjell, one of the three leading specialist chemical tanker operators, says its strategy is to capture short-term gains and de-risk for the long term. Since the upturn began at the end of 2018, EBITDA from its shipping activities has grown consistently from $109m to $442m in 2023 and, with an extraordinarily strong start to 2024, it looks likely that this year’s performance will be even better. Since its last newbuilding delivery in 2020, Odfjell has reduced its debt by $448m to $807m by March 2024 and has returned $171m to shareholders in the form of dividends since mid-2022.

BACK TO THE BLOCKS

That is not to say that no new chemical tankers are joining the fleet. At present, the core chemical tanker orderbook is equivalent to 7.2 per cent of the active fleet, which is low by historical standards, and deliveries are scheduled to fall sharply after 2024. Around 15 per cent of the active fleet is already 20 years

old or older and, although well-maintained stainless steel tankers can continue to operate past 25 years of age, there is obvious potential for demolition activity.

At the same time, demand for chemical tankers is still on the rise; Odfjell quotes analyst forecasts of a 12 per cent increase in chemical cargoes from the 2023 level by 2027 to reach 284m tonnes, with a 13 per cent increase in chemical tanker demand to 44m dwt. A salient factor of the market in recent years is that tonne-mile demand growth has outstripped volume demand growth, in response to the centralisation of chemical production in the Middle East, US and China, leading to longer transport routes. As a result, Odfjell says, overall tonne-mile demand growth is forecast to increase by an average of 3 per cent per year between 2023 and 2026, while the fleet will grow by only 1 per cent per year.

Stolt-Nielsen, one of the other major operators, concurs with Odfjell’s analysis and points out that the MR product tanker market is also expected to remain healthy this year, which will keep the unwanted competition from swing tonnage out of the core chemicals business.

Stolt Tankers has recently announced new orders (see page 31) and Odfjell too has renewed its newbuilding activities, though in its case it is working with partners, primarily in Japan, to build 16 new vessels that will be timechartered to Odfjell with purchase options, a strategy it says offers greater flexibility. As a result, it has an interest in some 20 per cent of the global orderbook. Odfjell also notes that its last major newbuilding phase, with 26 new ships delivered in the 2016-2019 period, coincided with the bottom of the last market cycle.

Further fleet growth may come from joint ventures and mergers, as well as secondhand purchases. Odfjell has not ruled out additional newbuilding orders but says it will remain patient and order at the most advantageous time.

SWING TIME

There is still interest in the MR sector, where the additional cost of meeting IMO II standards has not put owners off, even if new ships will be working primarily in the CPP market. For instance, Proman Stena Bulk has recently taken delivery of the 49,900-dwt newbuilding Stena Prosperous, the last of six IMOIIMeMAX vessels built in China by GSI. All six vessels in the series are now in commercial service, all running on methanol; two are on long-term timecharter, offering the chance to provide the market with wider operational experience of the use of methanol as a marine fuel.

“Naming Stena Prosperous in Singapore has provided the perfect opportunity for us to mark the progress we have made in our joint venture with Proman over the last few years,” says Erik Hånell, president/CEO of Stena Bulk. “We are proud of the track record of these tankers to date, and are excited to be able to continue to prove to the market that, by being pragmatic and flexible, we can make tangible steps towards decarbonisation. The vessel’s operations leverage the deep experience of methanol that Stena Bulk – and the wider Stena Sphere – have built over the last decade. This experience has moved the dial on how the industry views methanol as a marine fuel, helping to propel it from being an outside solution to a reality in-operation.”

Using methanol instead of conventional marine fuels virtually eliminates emissions of particulate matter and SOx, and cuts NOx by up to 80 per cent during combustion.

Technologies such as carbon capture, storage and utilisation used in the production process cut emissions further, and green methanol produced from biogas can bring more than 90 per cent greenhouse gas emissions savings.

Stena Bulk, aside from its partnership with Proman, has its own newbuilding programme in place, again concentrating on the 50,000

dwt size point, as do participants in the Norden Tanker Pool. Also focusing on methanol is Clean Sea Transport, which was established as a joint venture between MSEA Group and Arkview Capital in 2021 after acquiring Marinvest, which had been founded in 1988 to innovate the chemical tanker business by using methanol as a clean, safe and future-proof marine fuel.

STICK OR TWIST

This year’s survey of chemical tanker fleets, on the following pages, runs as long as ever, though there are a few names that have disappeared from last year’s list and several new ones appearing for the first time. Several of these are primarily ship management companies, which tend to be in the MR sector rather than the core chemical fleet, or have been established by investment funds to take advantage of asset play opportunities – most spectacularly so in the case of Norway-based Tailwind.

It is always difficult to determine whether any particular tanker can be described as a ‘chemical’ tanker; in the table, HCB has taken the approach that any vessel with an IMO I, II or III rating or with a chemical tanker class

notation can be included, though many of these, especially larger IMO III tankers and old vessels that may have been retired from the demanding chemical trades, are not regularly working in chemicals, vegoils or biofuels trades. One way of separating the ‘core’ fleet out from the rest is the degree of stainless steel or MarineLine tankage – fleets with a high proportion of epoxy-coated tanks are more likely to be in the ‘swing tonnage’ category. The handful of operators with zinc-coated cargo tanks tend to work mainly in specialised methanol or acid trades.

It should also be noted that there is a large element of double-counting in the table: the same ship may well appear in the fleet of the disponent owner, a ship management company and/or a pool operation. The ‘dwt’ column cannot therefore be summed to give an indication of the global chemical tanker fleet.

One important element that has not changed since last year’s survey is the identity of the ‘big three’ operators in the core chemical business, with Odfjell Tankers (2.5m dwt), MOL Chemical Tankers (2.1m dwt) and Stolt Tankers (1.9m dwt) way out in front in terms of fleet size. MOL Chemical Tankers, a subsidiary of Mitsui OSK Lines (MOL), is in fact

now the largest of the three, since its acquisition of Fairfield Chemical Carriers from Fairfield-Maxwell this past March. The combination of the two companies gives a total fleet of some 2.8m dwt.

It is quite a step down after those three to IINO Lines (1.3m dwt) and then Singapore’s MT Maritime (667,000 dwt). In between there are two major stainless steel tanker pools, including Womar’s Stainless Tankers, which has now built a 40-strong fleet of chemical tankers in the 20,000 to 25,000 dwt range, and Hansa Tankers, whose participants include TRF, Tailwind, Blystad’s Songa Tankers and Nisshin Shipping. Pools such as these give smaller, independent owners and investors the means by which to compete on a more equitable basis with the major operators.

Now that those larger fleets are renewing or expanding their tonnage once again, it will be interesting to see how independent players in the market respond. This may be the year in which some investors feel it is the right time to cash in on high secondhand prices, although the market fundamentals point towards the current bull market lasting quite a lot longer yet.

CHEMICAL TANKER FLEETS (MAY 2024)

Rhein-Reise: Der GEFO Low Water Carrier „Canaletto“ vor dem Kölner Dom

Abladung 600 tons auf 1,30 m Tiefgang, Maximalkapazität: 2.921 m3, 8 Stainless-Steel-Tanks, 2 gummierte Tanks für Salzsäure, Maximale Abladung 2.985 tons, Hybrid-Antrieb

ON THE RECORD

MARKET • ODFJELL HAS POSTED RECORD PROFITS AS THE CHEMICAL TANKER MARKET HAS STAYED TIGHT. THERE IS MORE TONNAGE READY TO JOIN ITS FLEET TO TAKE ADVANTAGE OF FIRM EARNINGS

ODFJELL HAS POSTED its highest ever quarterly profit, reaching $67.8m in the first quarter of 2024, up from $52.1m in the previous quarter. “Odfjell delivered a record result in the first quarter of 2024,” says Harald Fotland, Odfjell’s CEO. “This reflects the tightened market situation due to the increased tonne-mile demand. We also continued to increase the rates in our COA (contract of affreightment) portfolio. This, in combination with a very professional and dedicated organization, gives a solid basis for future earnings. We expect our earnings to further increase in [the second quarter].” The first quarter figures were also well up

on the same period last year, with timecharter earnings 7.9 per cent higher at $194.7m and EBITDA ahead by 11 per cent at $126.8m.

Odfjell says that the chemical tanker market was already tight at the end of 2023 and, with attacks on commercial shipping by Houthis in Yemen increasing, most operators re-routed their trading patterns to avoid the Red Sea, leading to longer voyages and a further tightening of supply.

The market outlook is harder to read. There are some signs that the global economy may achieve a soft landing, with the International Monetary Fund (IMF) having recently upgraded its expectations for growth in the US and

India. In China, however, faster than expected growth in January and February has not been carried through and employment in manufacturing sectors continues to lag other indicators. The situation in the Middle East is, Odfjell says, “complex, unpredictable and unlikely to be quickly resolved”. There are few signs that the Houthis will rein back their attacks on shipping and recent skirmishes between Iran and Israel have only served to increase the risks of a wider conflict in the region.

The Panama Canal Authority has been increasing the number of transit slots available but, Odfjell says, a full normalisation this year seems to be less likely. On the upside, the product tanker market continues to show strength, which should keep swing tonnage out of the chemical tanker market. In sum, chemical tanker supply remains tight, exports of liquid chemicals are stable, and there are few chemical tankers under construction for delivery in the near term. As a result, Odfjell expects its results to improve as the year progresses.

SHIPS TO COME

During the first quarter, Odfjell took delivery of Bow Lynx, the first of four 26,000-dwt newbuildings; the three sisterships are scheduled for delivery over the course of this year. Odfjell has triggered a purchase option on the 40,000-dwt, stainless steel Bow Gemini, which is currently on bareboat charter to Odfjell; the tanker will be delivered to the company in July 2025. This follows a similar deal for Bow Aquarius, which will be delivered at the end of this year.

In addition, a 25,900-dwt stainless steel tanker has been ordered from Dingheng for 2027 delivery; this will be owned and operated by Odfjell subsidiary Flumar, trading in South America. In April, Odfjell concluded timecharter deals for four more newbuildings – two of 25,000 dwt and two of 40,000 dwt - due for delivery from Japanese yards in 2026 and 2027. In total, including owned and timechartered tonnage, Odfjell currently has 16 ships on order, equivalent to around 20 per cent of the orderbook in the company’s segment of the fleet. www.odfjell.com

PLAY TO WIN

FLEET RENEWAL • STOLT TANKERS HAS DECIDED TO EMBARK ON NEWBUILDINGS TO HELP UPDATE ITS FLEET, SUPPORTED BY FIRM FREIGHT RATES ACROSS THE BOARD

STOLT TANKERS HAS reported revenue of $443.8m for the three months to end February, up 6.8 per cent compared to the year-earlier figure; average deepsea freight rates were up by 2.5 per cent, though revenues were down as a result of the deviations from normal trade routes caused by the disruption at pinch points in international trade.

“The firm market conditions enjoyed by Stolt Tankers during 2023 continued into the first quarter and have been further supported by the restricted transits of both the Panama and Suez canals,” says Udo Lange, CEO of parent company Stolt-Nielsen. “Spot rates continued to strengthen through the first

quarter and we should start seeing the effect in the second quarter onwards. That said, we have seen some contract volumes decline as our customers adjust to the impact of supply chain disruptions.”

Continuing restrictions at both the Panama and Suez Canals are adding further tonnemile demand to an already tight chemical tanker market; as a result, freight rates have climbed to record levels. “From an operational perspective this creates several challenges,” the company says. “However, Stolt Tankers is continuing to work closely with its customers to minimise any negative impact on their supply chains.”

The strong market has prompted Stolt Tankers to return to newbuilding orders.

“During the quarter our deep-sea joint venture, NYK Stolt Tankers, announced a newbuilding order for six stainless-steel fuel-efficient ships from Nantong Xiangju Shipyard in China, with estimated delivery

from late 2026 onwards,” Lange adds. “We are pleased to have secured these additional newbuildings with a quality yard and a favourable delivery schedule that fits with the retirement of our older tonnage. This order brings our total deep-sea orderbook to 12 ships.”

The vessels ordered by NYK Stolt Tankers are sister ships to the six ordered by Stolt Tankers from Wuhu Shipyard this past November. They will have 30 cargo tanks, offering flexibility, and are designed to maximise fuel efficiency using a wide range of energy savings devices and shore power connection. They can also be retrofitted for methanol propulsion.

GRASP THE CHANCE

In addition, SFL Corporation has recently acquired two 33,000-dwt stainless steel chemical tankers, built in 2022/23 and equipped with LNG dual-fuel engines, for some $114m. SFL has fixed one on an eight-year timecharter to Stolt Tankers and the other will enter the Stolt Tankers Joint Service pool. Both arrangements have purchase options attached.

“We are excited to build a new relationship with Stolt-Nielsen, which has a market leading position in the logistics for sophisticated chemicals,” says Ole B Hjertaker, CEO of SFL Management. “The market dynamics for stainless steel chemical tankers are also very favourable now, with steady underlying growth in demand, ageing fleet and a limited orderbook. The combination of fixed-rate charter and pool earnings will therefore give us the opportunity to participate in a strong market, while also providing increased charter backlog.”

Udo Lange adds: “I’m pleased to announce our new partnership with SFL Corporation on two modern chemical tankers. As well as securing attractively priced on-the-water tonnage in a firm chemical tanker market, these modern, dual-fuel ships will lower the age profile and carbon intensity of our fleet while offering more flexibility in our core 33,000 dwt segment. This transaction also demonstrates our commitment to asset-light fleet replacement with best-in-class partners.” www.stolt-nielsen.com

STEPPING STONES

ALTERNATIVE FUELS • THE GERMAN GOVERNMENT HAS APPROVED THE USE OF HVO100 BIODIESEL. ALL THAT STANDS IN ITS WAY IS PRICE AND HGK SHIPPING IS CALLING FOR HELP

INLAND SHIPPING PRESENTS some challenges when thinking about reducing emissions. Its operations are, by definition, more likely to impact populations, as its vessels travel the rivers and canals of some densely populated countries. It is also, in general, a low-margin business, often with ageing vessels.

HGK Shipping, one of the largest inland shipping companies in Europe, is therefore supportive of the German government’s decision to allow the use of HVO100 – a biodiesel made entirely from hydrotreated vegetable oil. This avoids the need to re-equip thousands of vessels with new engines to run on other fuels, such as ammonia or hydrogen, since it can simply replace fossil diesel, using

the existing infrastructure.

The main issue with switching from fossil diesel to HVO is the cost differential and one thing HGK Shipping is calling for is more subsidies in the near term, until market mechanisms have had time to bring prices closer to parity. Shipowners are eager to do their bit to reduce emissions and this straightforward suggestion could deliver an inland fleet that is almost climate-neutral as soon as 2030.

GIVE US A HAND

Steffen Bauer, CEO of HGK Shipping, has this to say about the introduction of HVO100 across Germany: “The go-ahead provided by the government in Berlin for its use is an important

incentive for mobility in Germany – and this also applies to inland waterway shipping, which is very climate-friendly anyway. That’s why we’re going to use HVO100 straight away.

“This fuel could already significantly minimise CO2 emissions in comparison with traditional fossil fuels and represent a viable transitional measure during a phase when emission-free drive technologies are still in the development stage,” Bauer continues. “In light of the costly research expenditure for innovative types of engines and the economically unrealistic scenario of quickly and extensively equipping older existing fleets with new ship engines, resource-efficient transport logistics will already become a reality now thanks to HVO100.”

“We’re asking politicians to consider introducing a sector solution and creating the relevant incentives for this biogenic fuel to be used across the board within inland waterway shipping,” Bauer says. “Short-term tax relief, which would be necessary for as long as it takes for the price of HVO to match the costs of diesel fuel, would significantly promote the use of this interim solution. Alongside this, subsidies for research and development work in the field of fuel cell technology should be made available on a long-term and targeted basis. This would create the conditions for modernising fleets, which are already 55 years old on average, from sustainability points of view too. Inland waterway shipping could then grow with planning certainty and be assured of a good future; it could support this important mode of transport to be able to significantly reduce its CO2 emissions during the next few years to benefit the planned energy revolution.”

HGK Shipping has already purchased quotas of the biofuel to be able to exclusively operate parts of its fleet with HVO100 in future. No technical modification is necessary to use the fuel, even for fairly old drive systems. This therefore opens the possibility for the sector to make further use of older shipping fleets without any significant investments and still make an important contribution to decarbonising European inland waterway shipping by achieving savings of up to 90 percent in its CO2 emissions.

www.hgk.de

SCRATCH THAT ITCH

HULL CLEANING • NEW ENERGY EFFICIENCY TARGETS ARE CHANGING THE ECONOMICS OF SHIPPING. SHIPSAVE’S HULL CLEANING SOLUTION ADDS VALUE, STOLT TANKERS SAYS

THE EU EMISSIONS Trading System (ETS) has put a price on energy efficiency in the maritime world and a value on systems and processes that improve efficiency. Vessel operators are therefore looking at a range of ways to reduce the carbon intensity of their activities. Stolt Tankers, for example, has set itself the target of cutting the carbon intensity of its ship operations by 50 per cent by 2030, compared to a 2008 baseline, and has already started using the In-Transit Cleaning of Hulls (ITCH) solution developed by Shipshave.

“We see proactive hull cleaning as a simple way to achieve rapid emission cuts at relatively low cost. The ITCH has therefore become an important technology in our toolbox after piloting the system on Stolt Acer, along with five other ships, that yielded reductions in fuel consumption exceeding 10 per cent,” says Stolt Tankers’ energy and conservation manager Jose Gonzalez Celis. As a result, Stolt is now planning to add

another ten ITCH units, doubling its capacity to apply the technology across its fleet.

Gonzales points out that regular proactive cleaning to prevent the build-up of fouling is “about maintaining the hull in a consistently good condition to minimise drag for optimal performance to avoid overconsumption, rather than measuring large improvements every time the hull is cleaned periodically”.

Stolt Tankers is also trialling GIT graphene coatings on hulls and propellers, which improve fuel efficiency through the reduction of biofouling. These coatings are free of biocides, toxic chemicals and plastics. The company has introduced several other anti-pollution initiatives that help to protect the marine ecosystem in line with its sustainability goals.

CLEAN AS YOU GO

The ITCH is a semi-autonomous hull cleaning robot, deployed by the crew from a portable winch mounted on the forecastle deck, that

swipes up and down the hull underwater using soft brushes to gently remove biofouling during a voyage and thereby maintain hull performance.

Shipshave estimates the ITCH can clean between 80 and 90 per cent of the parallel/ vertical area of a vessel hull in a five-hour operation while in transit, with typical opex of less than $250 per cleaning.

Stolt Tankers’ findings from using the ITCH in real-life operations support classification society DNV’s calculation that the tool can provide a fuel saving of 10 per cent when used regularly.

“The proven emissions reduction from using the ITCH will enable Stolt Tankers to reduce its exposure in relation to the EU ETS as well as support our efforts to cut fleet carbon intensity in line with CII (Carbon Intensity Indicator) limits and our own target. This will also be beneficial with the introduction of FuelEU Maritime in 2025,” Gonzalez says.

“Our successful collaboration with Shipshave, combined with the fine work of our crews, has delivered positive results to support our sustainability efforts. Wider adoption of the ITCH is part of Stolt Tankers’ policy of continuous improvement to optimise fleet safety, sustainability and operational efficiency through the combination of innovative ways of thinking, enabling technologies and future fuels,” Gonzalez concludes.

shipshave.no

NEWS BULLETIN

MOL GOES DEEP INTO NEW ENERGIES

Mitsui OSK Lines, Idemitsu Kosan and subsidiaries of HIF Global have signed an memorandum of understanding (MoU) to collaborate in developing a supply chain for e-fuels and e-methanol, as well as the marine transport of carbon dioxide. The project will include the transport of CO2 from Japan to HIF’s synthetic fuels/methanol production plants in other countries, establishing a supply chain to move the production from those plants to Japan, and the efficient and cost-competitive transport of CO2 and synthetic methanol by sea.

HIF Global, through its wholly owned subsidiaries in Chile, the US, Asia-Pacific and the EMEA region, is the leading synthetic fuels company. Its first demonstration project, in Magallanes, Chile, opened in December 2022 and it is currently planning commercial-scale plants in Texas and Tasmania.

MOL is also set to become the first Japanese ship operator to install an onboard carbon capture unit. MOL is planning to fit a Filtree unit manufactured by Value Maritime to its LR1 product tanker Nexus Victoria later this year. The Filtree System has a scrubber function that removes 99 per cent of sulfur oxides (SOx) and particulate matter (PM) contained in exhaust gases and a carbon capture and storage (CCS) function that separates and recovers up to 10 per cent of CO2 from the exhaust emissions.

MOL says the Filtree system is noteworthy as an initiative to promote the decarbonisation of existing vessels, which are difficult to convert to next-generation fuels. MOL and Value Maritime will continue working toward the realisation of a carbon-neutral society by reducing GHG emissions from vessels and building a CO2 capture value chain.

In other news, MOL’s joint venture with Fuji Oil, Aramo Shipping, has taken delivery of the

dual-fuel LPG/ammonia carrier Aquamarine Progress II from Namura Shipbuilding. The new tanker, which has a cargo capacity of 87,120 m3, will operate under timecharter to Japanese LPG distributor Gyxis Corporation. The new tanker can operate on heavy fuel oil or LPG and is designed for conversion to run on ammonia in the future.

MOL has also ordered two 88,000-m3 VLGCs from Hyundai Samho for 2026 delivery, against a long-term charter with TotalEnergies. The newbuildings will be fitted with dual-fuel engines capable of running on LPG and will also be optimised for the carriage of ammonia.

www.mol.co.jp

HGK INNOVATES IN GASES

HGK Shipping has unveiled a radical new concept for an inland waterway tank barge capable of transporting liquefied gases in both refrigerated and pressurised form. The concept, named Pioneer, is designed to offer sustainable transport solutions for new energies, especially ammonia, as well as captured carbon dioxide.

“Thanks to this innovative type of vessel, we’re already paving the way to meet the logistical requirements for sustainable inland waterway shipping,” says Steffen Bauer, CEO of HGK Shipping. “It won’t be possible to simply transport all the predicted volumes of hydrogen and its derivates, such as ammonia, but also liquefied carbon dioxide, along pipelines. That’s why we’re offering the market efficient alternatives using inland waterway shipping as the mode of transport.”

“The innovative tank and loading system for this special type of vessel is the result of intense development work in cooperation with international partners in the world of marine shipping and at our own design centre,” adds Tim Gödde, business unit director, ship management at HGK Shipping. “The technical

innovations, which we’ve already used for previous new vessels, such as a diesel-electric drive concept and the shallow-water design, will also be integrated in this new type of model.” www.hgk.de

FAIRFIELD TAKES ON LNG

Fairfield Chemical Carriers, a subsidiary of MOL Chemical Tankers, reports that its newest ship, the dual-fuel 26,000-dwt Fairchem Pathfinder, has bunkered its first load of LNG in Singapore. The 1,390-m3 of LNG fuel was delivered by ship-to-ship transfer from the bunkering vessel FuelLNG Bellina. The new chemical tanker was delivered from Fukuoka Shipbuilding at the start of May and is the first of four such dual-fuel chemical tankers ordered prior to Fairfield’s acquisition by MOL, which was announced in September 2023 and completed this past March. fairfieldchemical.com

SC BUILDS THE FLEET

SC Shipping has taken delivery of Dong Bai, the first of two 11,300-dwt stainless steel chemical tankers building at Chuandong Shipbuilding. The second vessel is already in the water and awaiting final fitting out. The owner congratulated the yard for delivering the first ship ahead of schedule, despite Covid restrictions in China and the tight supply of stainless steel during the construction phase.

SC Shipping, in its joint venture with Stolt Tankers, Shanghai SC-Stolt Shipping, has also ordered two 9,200-dwt stainless steel chemical tankers from Wuchang Shipbuilding in Wuhan, following on from completion of a four-strong series of 7,200-dwt units last year. www.sc-shipping.com

STRONG START FOR KIRBY

Kirby Corp has reported strong first quarter earnings, with net profit up from $40.7m last year to $70.1m on consolidated revenues up 7.7 per cent at $808.0m. Inland waterway operations performed very well, leading to increases in spot rates and operating margins, despite an increase in delay days. Coastal

shipping also experienced in improvement in margins.

“We are off to a solid start in 2024,” says president/CEO David Grzebinski. “Both of our segments performed well during the quarter, delivering improved revenue and operating income and our team executed well despite weather related delays in the marine transportation segment and continuing supply chain delays in distribution and services. We continue to see favourable fundamentals as 2024 progresses, and we expect steady quarterly earnings progression for the remainder of the year.”

Kirby has appointed Christian G O’Neil as its president/COO, to be responsible for day-to-day operations. O’Neil has been with Kirby since 1997 and has been president of the marine transport businesses since 2018. kirbycorp.com

TAILWIND CASHES IN

Tailwind Management, a Norway-based investor in stainless steel chemical tankers, has sold three vessels recently, achieving very high rates of return on its investment. The three vessels include two 33,000-dwt units, Rundemanen (2004) and Skarven (2009), and

the 19,000-dwt Livarden (2007). Tailwind says it made an IRR of 86 per cent pa on Rundemanen since it was acquired in December 2021, with Skarven making 37.7 per cent pa since September 2019 and Livarden 67 per cent pa since January 2022.

tailwind.as

METHANOL BUNKERING FOR SINGAPORE

Fratellli Cosulich has added a newbuilding vessel to its Singapore bunker fleet. Marta Cosulich is the first of its bunkering vessels to be built to IMO II standards, making it capable of supplying methanol for use as marine fuel.

“The Group is committed to strengthening our presence in the port of Singapore, the world’s largest bunkering hub,” the company says. “Our investments in new assets, designed to carry alternative fuels, align with Singapore’s ambition to be a leader in maritime decarbonisation while maintaining its competitive edge.”

Fratelli Cosulich has five conventional bunkering tankers working in Singapore as well as the newbuilding; a sister vessel is due to join the fleet by the end of 2025. cosulich.com

EYES ON THE PRIZE

RESULTS • DIFFICULT MARKET CONDITIONS AND LOWER MARGINS AFFECTED BRENNTAG’S FIRST QUARTER

PERFORMANCE BUT IT IS FORGING AHEAD WITH ITS STRATEGY AND EXPANSION PLANS

BRENNTAG HAS REPORTED a decline in its financial figures for the first quarter, very much in line with the results of other global chemical distributors. Sales were down 11.6 per cent year-on-year at €4.00bn, with operating gross profit down 5.9 per cent at €984.4m and operating EBITA off by almost 25 per cent at €259.7m.

“Although our resilient business model with its global reach and broad portfolio enabled us to capture business opportunities, we are not satisfied with our performance in the first quarter of 2024,” says CEO Christian Kohlpaintner. “The difficult market conditions with geopolitical tensions and continuing inflationary trends led to pricing pressures and lower than expected demand in certain markets which adversely impacted Brenntag’s results in both divisions. However, we are cautiously optimistic on the further course of

2024 with volumes showing an encouraging sequential recovery across most regions and industries. Despite the headwinds and the challenging environment, we remain fully committed to implementing our ‘Strategy to Win’ while prudently managing our cost base and driving efficiency in our organisation.”

Brenntag Specialties delivered an operating gross profit of €286.3m, down 8.3 per cent on last year; volumes were off slightly but operating gross profit per unit declined. The trend was seen in all segments of the Life Science and Material Science sectors.

Brenntag Essentials, on the other hand, enjoyed some encouraging demand development. All segments were able to increase their volumes, both organically and through recent acquisitions. However, the decline in operating gross profit per unit in all segments led to an overall fall in operating

gross profit of 3.8 per cent to €698.1m. The EMEA, North America and Latin America segments were all affected by volume-related increases in transport costs, while in the Asia-Pacific region higher volumes more than offset the decline in margins, leading to an increase in operating gross profit.

“In the first quarter, we were not able to capitalise on the sequential recovery of volumes and to fully offset the lower sales prices,” explains CFO Kristin Neumann. “We have a clear set of measures and a high level of discipline across all levels in our organisation to return to our outlined growth and profitability trajectory. To reduce costs, increase efficiency and counteract inflationdriven cost increases we are taking various initiatives that have already shown effects in the first quarter.”

STRATEGY FOR GROWTH

Brenntag is continuing with the implementation of its ‘Strategy to Win’, which it hopes will provide accelerated growth in the future. One core element of this strategy is sharpening the profiles of the two Brenntag divisions to align them more closely with global market requirements and customer and supplier needs. Since the beginning of 2024, Brenntag has dedicated teams

appointed to detail and initiate the next steps in the legal and operational disentanglement of Brenntag Essentials and Brenntag Specialties to make them more independent and autonomous. This is progressing well and according to plans.

Brenntag also follows a consistent sustainability agenda, while pursuing its transformation into a stronger data- and technology-driven company, and value-creating M&A activities. In the first quarter, the company strengthened key focus industries and geographies with acquisitions in both divisions. At the end of March, Brenntag Specialties signed and closed the acquisition of Lawrence Industries, significantly expanding the Material Science footprint in the UK and in EMEA. In February, Brenntag Essentials strengthened its ‘triple’ business strategy with the acquisition of Rental Service Specialty in the US, a provider of specialty rental equipment for the midstream and downstream oil and gas industry.

The acquisition of Lawrence Industries, an independent specialty distributor in the UK, further strengthens Brenntag’s position within Material Science and across the Coatings, Adhesives, Sealants and Elastomers (CASE), Construction, Polymer and Rubber industries, the company says. The deal also brings a broad eco-system of leading top tier supply partners and a high-quality portfolio, most

strongly driving market needs of formulation solutions and leading sustainability footprint.

“The acquisition of Lawrence Industries will further strengthen our specialty offering in the UK and Ireland and is perfectly in line with our strategy in Material Science,” says Lars Schneider, global president, Brenntag Specialties Material Science. “Lawrence Industries has developed an industry leading reputation. I am deeply impressed with Lawrence Industries and its highly capable and outstanding team, their long-established regional presence, strong specialty portfolio and experienced technical set-up. I look forward to further expanding our technical and value-added services to our top tier suppliers and valued customers with a particular focus on innovative and sustainable solutions, leveraging each other’s capabilities.”

ESSENTIAL PURCHASE

Since the end of the first quarter, Brenntag has also acquired Química Delta, a leading distributor of essential chemicals operating a dense last mile service operation network in central Mexico. Founded in 1974, Química Delta’s main site is located in Teoloyucan, close to Mexico City and major customers in central Mexico. Química Delta has built up a diverse portfolio of industrial chemical products and has established long-standing

relationships with global supply partners; it also operates several rail terminals and has access to maritime port infrastructure in Altamira. It reported sales of $368m in 2023.

“Brenntag Essentials is focused on developing our triple business strategy, combining our unique capabilities in the market of a cost-efficient network of last mile service operations with regional sourcing and supply chain services, and interregional optimisation,” says Ewout van Jarwaarde, CEO of Brenntag Essentials. “The multimodal last mile operational capabilities and the access to marine terminal capacity of Química Delta expand our capability to serve our customers and supply partners in Mexico cost-efficiently and with the highest services levels in the market. Combined, Brenntag and Química Delta will be well positioned in one of the world’s fastest-growing markets for chemicals. I look forward to welcoming the team to Brenntag.”

“Joining Brenntag grants us the access to a global distribution network, a significant step to expand our product catalogue at scale of what we can offer our customers and supply partners in the Mexican market,” adds Fernando Bueno, CEO of Química Delta. “Our dedicated team with extensive experience in the sales and distribution of chemical products in our industry in Mexico and the region will truly benefit from joining the world market leader in chemicals distribution. And as our values and focus on safety complement what Brenntag stands for, I look forward to joining our teams.”

Closing of the transaction is subject to customary conditions and regulatory approvals and is expected in the third quarter. Looking ahead, Brenntag says it expects overall geopolitical, macroeconomic and operational conditions to remain challenging in 2024. It remains “cautiously optimistic” that market conditions will improve through the year, especially in the second half, and that it will benefit from rising volumes. As such, it is holding to its guidance for full-year operating EBITA of €1.23bn to €1.143bn, with the anticipation that the final result will be at the lower end of that range.

corporate.brenntag.com

EVER ONWARDS

BUSINESS • AFTER A STRONG START LAST YEAR, AZELIS HAS WITNESSED A DROP IN SALES SO FAR IN 2024, WITH WEAKER DEMAND FOR INDUSTRIAL CHEMICALS. THAT HAS NOT DENTED ITS OPTIMISM

AZELIS HAS REPORTED first quarter revenues of €1.05bn, down 3.8 per cent on last year’s €1.09bn; adjusted EBITA fell 7.2 per cent to €124.3m. Although there was some recovery in volumes during the period, this was offset by lower prices. “The results achieved during the period reflect the current challenges in our industry, and follow a strong performance in the comparable period last year,” says CEO Anna Bertona (above). “We will continue to control our costs while the markets remain volatile. We are executing on various commercial programs and our overall strategy to ensure that Azelis is strongly positioned for market recovery and remain positive that growth will return during the year.”

The drop in revenues was all found in Azelis’ industrial chemicals business, where sales fell 9.8 per cent to €382.3m; by contrast, sales in the life sciences business held steady at €668.8m. In terms of geographies, sales fell in the EMEA and Asia-Pacific sectors, while recent acquisitions helped the Americas

division to record a 3.6 per cent increase in revenues. Business in the EMEA region was hampered by shipment delays caused by the ongoing tensions in the Red Sea; results from the Asia-Pacific business look weak but Azelis notes that the first quarter of 2023 was extremely strong.

Azelis says its strategy will continue to be to drive growth by means of a consistently strengthening lateral value chains, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value. In the near term, in view of global political and economic uncertainty, Azelis will remain committed to controlling costs and generating cash. It expects to return to organic growth in 2024, though the timing of the recovery remains uncertain.

JOIN THE GANG

Azelis has, though, continued to drive its growth through acquisition, the most recent

step being an agreement to acquire PT Marga Dwi Kencana (MDK), a leading distributor to the personal care market in Indonesia. Azelis says MDK’s product portfolio strategically complements its own lateral value chain, expanding the group’s platform to serve the high-growth personal care market, and reinforces its footprint in the broader life sciences market in the country.

Founded in 2009 and headquartered in the greater Jakarta area, MDK employs more than 30 staff and runs a technical centre that will join Azelis’ wider lab and technical support network. MDK’s management team and employees, which include experienced sales and technical teams, will become part of Azelis.

“The acquisition of MDK provides us with an expanded presence in Indonesia and deepens our coverage in Asia Pacific,” says Sertaç Sürür, Azelis Asia Pacific CEO/president. “MDK’s strong market presence, complementary product portfolio and innovation capabilities are well aligned with our business model and allow us to better support our customers and principals with innovative solutions.”

Azelis has also agreed to acquire the distribution business of DBH Osthandelsgesellschaft mbH, a specialty chemicals distributor focused on AM&A (Advanced Materials & Additives) in Germany and Central & Eastern Europe (CEE). The acquisition reinforces Azelis’ footprint in industrial chemicals and enhances its lateral value chain by leveraging DBH’s diverse product portfolio, its expertise in the German rubber and plastic additives market and its long-standing partnerships with blue-chip principals.

“We are thrilled to welcome the DBH team to Azelis,” says Dr Uwe Zakrzewski, managing director of Azelis DACH. “This acquisition represents an important step forward for Azelis, solidifying our position in the advanced materials and additives market in the EMEA region. With DBH’s expertise and strong presence in this sector, we are confident that we will significantly reinforce our footprint and enhance our ability to meet the evolving needs of our customers.”

www.azelis.com

finally purchasing. In the past, he noted, marketing was largely confined to the first two stages, with sales functions covering the rest. In an ever-connected world, though, this will change, with marketing covering everything up to and partly including evaluation while sales will largely be concerned with just the actual final purchasing stage.

service, companies, de Haan asserted, are able

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

To build a successful digitalised business, companies need to “create the right mindset” and have a shared understanding of where they want to go and what they want to achieve. They must also put the right leadership in place and “launch a group focused on digital transformation”. Meanwhile, by using an e-commerce platform, they can establish an online presence; increase exposure; allow their sales team to focus on strategic customers; and benefit from lower costs to serve. They can also gain access to much more usable information, with the platform offering them generally enhanced convenience and efficiency.

CREDIBILITY AND EXPERTISE

Kemgo+, he revealed, is a premium service that uses Kemgo’s “global credibility and expertise” to build a distributor’s or producer’s brand while helping them to manage their sales and optimise their operations. By using the

“CLASSIFICATION OF FIREWORKS THE NETHERLANDS BROUGHT BACK AN ISSUE THAT HAD BEEN DISCUSSED AT THE PREVIOUS SESSION”

EDUCATE COLLABORATE

THINGS CAN ONLY GET BETTER

SURVEY • BUSINESS IS STILL LOOKING UP FOR UK CHEMICAL DISTRIBUTORS, ACCORDING TO CBA’S FIRST QUARTERLY SUPPLY CHAIN SURVEY FOR 2024

THE CHEMICAL BUSINESS ASSOCIATION, (CBA) has released results from the latest quarterly supply chain survey, covering the first quarter of 2024, which confirms indications from the fourth quarter of 2023 that business conditions are improving. The survey drew responses from 48 CBA member companies.

The most recent survey builds on the optimism seen late last year, with 31 per cent of respondents reporting improvements in their order books over the previous three months, more than double the same period last year, when only 15 per cent of respondents said the same.

The encouraging trends continue, with 35 per cent of respondents reporting improvements to current sales, an increase from 21 per cent in the previous quarterly survey and also an increase from 15 per cent for the same period in 2023.

Despite the positive trends, 26 per cent of respondents expect future sales figures to worsen, an increase from 19 per cent in the previous survey. However, the latest figures show a 10 per cent improvement on the 36 per cent of respondents who expected worsening sales figures during the first quarter of 2023. 21 per cent of respondents also reported better sales margins, compared to the previous three months, a rise from 13 per cent at the conclusion of the fourth quarter of 2023. Fewer also reported worsening margins, with the majority of responses (60 per cent) reporting current sales margins are holding steady. The trend continues when considering the coming three months, with 71 per cent of respondents expecting margins to remain the same throughout the second quarter.

In addition to sales and order figures, CBA’s supply chain survey also provides an insight

into industry employment. The latest report continues to show the majority of respondents expect employment numbers to remain the same over the coming months, with 81 per cent confirming as much.

While 13 per cent of respondents expect this to increase, it is down significantly since the same period in 2023, where 49 per cent of respondents were expecting an increase. The comparison shows the importance of industry-wide employment outreach and skills initiatives that encourage long-term supply chain stability, of which the CBA is a driving force.

AN AID FOR PLANNING

The survey also reports on logistics issues surrounding imports and exports, with the current survey showing little change from previous surveys, highlighted by the fact that current supply chain disruptions, such as the situation in the Red Sea, remain an issue for 68 per cent of respondents. This, combined with 70 per cent reporting escalating shipping costs, indicates there could be an increasingly difficult future for the supply chain and the industries that rely upon it.

Tim Doggett, CEO of CBA, says: “Our latest survey highlights a degree of increasing optimism which was also apparent in the final quarter of 2023, and this is reflected in reports from the UK Office for National Statistics (ONS) that the economy grew by 0.6 per cent in the first three months of the year. It does also however show there are continued challenges for business, and the survey alludes to potential concerns that may be around the corner, as well as ongoing supply chain pressures such as issues in the Red Sea.

“These surveys continue to be enormously important to CBA, as they provide ‘ear-to-theground’ information directly from members, who have to deal on a day-to-day basis with current and potential issues in the supply chain,” Doggett adds. “Their insight not only allows us to focus our attention and expertise in supporting them, but also inform as well as lobby Government and peer associations on issues that affect them and wider industry as a whole.”

www.chemical.org.uk

finally purchasing. In the past, he noted, marketing was largely confined to the first two stages, with sales functions covering the rest. In an ever-connected world, though, this will change, with marketing covering everything up to and partly including evaluation while sales will largely be concerned with just the actual final purchasing stage.

While digitisation refers to creating a digital version of analogue and/or physical items, such as paper documents, images and sounds, digitalisation refers to enabling, improving and/or transforming business operations, functions and models and processes by leveraging digital technologies coupled with a broader use of digitised data “turned into actionable knowledge with a specific benefit in

Early bird till 15 July

service, companies, de Haan asserted, are able

NEWS BULLETIN

UNIVAR IN CARBON-NEUTRAL DEAL

Univar Solutions has signed a Letter of Intent with Dallas-based ClearShift, a leader in the development of gas-to-liquids (GTL) technology and the production of carbonneutral specialty chemicals and low-carbon fuels. The parties envision Univar undertaking the marketing and supply of high-grade carbon-neutral specialty chemicals from the planned ClearShift location in Louisiana, due to come onstream in 2027.

“At Univar Solutions, we’re committed to creating a cleaner, safer, and more sustainable world,” says Kelly Gilroy, vice-president, sustainable and natural products at Univar. “Our relationship with ClearShift is another positive step toward a lower carbon future as we support customers on their sustainability journeys.”

“We are very proud to celebrate our partnership with Univar Solutions,” adds John Stephenson, CEO of ClearShift. “Delivering carbon-neutral products at an affordable price is a huge step toward reducing the world’s carbon footprint. With the help of Univar Solutions, our products will have a major impact on societal transition toward a cleaner

climate for generations to come.”

www.univarsolutions.com

HELM FOCUSES ON LITHIUM SUPPLY

Helm subsidiary LevertonHelm has signed an MoU with Freyr, an emerging producer of clean battery solutions in Norway, to jointly explore and develop agreements for the supply of lithium chemicals to Freyr’s cathode and lithium-ion battery cell operations in the Nordic region. The agreement envisages the supply of up to 5,000 tonnes per year of lithium carbonate and lithium hydroxide over a minimum of five years.

“We look highly forward to the next steps of deepening our collaboration with Freyr by focusing on the energy storage, automotive industries and beyond, providing LevertonHelm’s expertise and experience of over 40 years in the European market,” says Stephen Elgueta Wallis, vice-president of Energy Materials at Helm.

LevertonHelm has also signed a similar deal in Canada, opening up a potential partnership with Mangrove Lithium involving the co-development of a European lithium refining

facility dedicated to the sustainable production of battery-grade lithium hydroxide monohydrate for the use in electric vehicle batteries. The move follows Mangrove’s success in the conversion of lithium sulfate from recycled battery materials to battery-grade lithium hydroxide.

“Projects like this are crucial for establishing a secure supply of critical minerals for the EU’s energy transition,” says Helm. “With the collective expertise between LevertonHelm’s lithium processing experience and Mangrove Lithium’s innovative refining technology, the collaboration is aiming to become a milestone for the European renewable energy sector that will establish a robust, local, circular supply chain for battery-grade lithium products.” www.helmag.com

CALDIC BUYS AND WINS

Caldic has acquired Ricardo Molina, a long-established distributor of specialty ingredients and chemicals for the life sciences sector, based in Barcelona, Spain. Caldic says the innovative portfolio of products and value-added services provided by the company will enhance its current offering and expand its footprint in Iberia and Latin America.

Ricardo Molina was founded in 1927 and has built a solid reputation with its business partners. Through Molina Insights, Molina Lab, and Molina Academy, the company has invested in its advisory and training capabilities and competencies, enabling the expert technical team to formulate solutions that extend beyond the ingredient, based on the premise that true value lies in the combination of innovation capabilities, technical expertise, market know-how, and business understanding. A state-of-the-art food application lab, personal care lab, and R&D lab for industrial applications, in combination with dedicated technical experts will greatly enhance the

formulation and advisory capabilities that Caldic can provide to its customers.

“We are delighted to onboard the Ricardo Molina team at Caldic,” says Laurent Pasqualini, CEO of Caldic Europe. “Ricardo Molina’s approach to creating unique value for each customer is fully aligned with Caldic’s continuous quest to provide premium value to our partners’ business. The complementary product portfolio and technical expertise will be valuable assets to help us accelerate the delivery of innovative and sustainable solutions to customers in the European market. Together –as a leading player in Iberia – we can make a bigger positive impact in the life and material science markets in Spain and across Europe.”

In other news, BASF has appointed Connell Caldic as exclusive distributor of its Industrial Solutions and I&I Care Chemicals portfolio in Australia. These include surfactants, polyacrylates, dispersants and chelating agents for the industrial, oil, gas and water treatment sectors.

“Connell Caldic’s national footprint, strong technical sales force, local warehousing and complementary products is an ideal combination for supporting our portfolio into the Industrial Formulating and Institutional Cleaning segments. Our globally well-known products such as the Lutensol, Sokalan, Trilon brands have a strong following in the Australian market and we’re looking forward to growing this business with Connell Caldic

ANZ,” says Denzil D’Mello, BASF Australia’s industry manager ANZ. www.caldic.com

IMCD STICKS TO ITS GUNS

IMCD has reported first quarter revenues of €1.16bn, down 0.3 per cent on last year’s figure, with gross profit down 5.2 per cent at €294.8m and operating EBITA down 22.0 per cent at €126.5m. “In a volatile first quarter of the year, we faced challenging conditions in some of our market segments, resulting in a lower operating EBITA of versus a very strong Q1 2023,” says CEO Valerie Diele-Braun. “Whilst our acquisition pipeline and projects with principals and customers remain healthy in all regions, current market dynamics continue to make future customer demand difficult to predict. Our strong commercial teams, digital and logistics infrastructure, combined with further driving operational excellence and cost control, will deliver future growth and efficiencies.” IMCD says it remains focused on achieving earnings growth by optimising its services and further strengthening its market positions. IMCD sees interesting opportunities to further increase its global footprint and expand its product portfolio both organically and by acquisition.

For example, IMCD Spain has expanded its presence in the pharmaceutical sector with the acquisition of Barcelona-based Cobapharma, which has an extensive portfolio of active

pharmaceutical ingredients (APIs) and nutraceutical ingredients. Cobapharma, which was founded in 2011, represents leading suppliers and generated revenues of some €19m last year.

“‘Cobapharma is a rapidly growing distributor in the pharmaceutical and nutraceutical industry. Their esteemed reputation for providing high-quality APIs and nutraceutical ingredients perfectly complements our existing portfolio. The alignment of our business models will enhance our ability to serve our customers and partners,” says John Robinson, business group director, IMCD Pharmaceuticals.

The acquisition, which is subject to customary closing conditions, is expected to be finalised in the second quarter. www.imcdgroup.com

BM AIMS FOR ASIA

Bodo Möller Chemie has embarked on an expansion into south-east Asia, with new branches in Thailand and Vietnam now opening up sales channels for its products and services in the automotive, battery, electrical and aerospace industries.

“The new sales offices in Bangkok and Hanoi City consolidate our presence on the Asian market,” says Bernhard Vreden, managing director of Bodo Möller Chemie Thailand. “This has enabled us to meet the increased demand for our products and services. A technical service, maintenance applications and consultancy for production and development processes all form part our core expertise as a solutions provider.”

“Electric transport and renewable energies are changing the industrial landscape in Thailand and Vietnam,” adds Lionel Breuilly, president of Bodo Möller Chemie APAC. “We are actively shaping innovations with pioneering product solutions and our adhesive processing know-how. Close collaboration with long-standing, successful partners such as DuPont, Henkel, Huntsman, medmix and Pactan is essential in south-east Asia.” bm-chemie.com

USE IT OR LOSE IT

COMBINED TRANSPORT • HUPAC WITNESSED A SHARP DROP IN CONSIGNMENTS LAST YEAR AND SAYS THAT CONCERTED ACTION IS

NEEDED

TO IMPROVE THE COMPETITIVENESS OF RAIL TRANSPORT

LAST YEAR, THE Hupac Group transported some 975,000 road consignments or 1,866,000 TEUs in combined road/rail and seaport hinterland transport. This represents a decline of about 130,000 consignments or 11.7 per cent compared to the previous year. In the core market of transalpine transport through Switzerland, Hupac recorded a comparatively moderate decline of 7.6 per cent to 540,000 road consignments. Nontransalpine transport, the second most important transport segment, also declined by 14.9 per cent. Maritime hinterland traffic from the seaports of Hamburg, Bremerhaven, Wilhelmshaven and Rotterdam totalled around 156,000 road consignments or 295,000 TEUs, which corresponds to a decline of 13.2 per cent.

This negative development was mainly due to the economic slump in transport demand in

Europe. The recessionary trend started in the autumn of 2022 in connection with the Russian invasion of Ukraine and the resulting energy crisis. The serious accident in the Gotthard base tunnel in August 2023 was an additional special factor. Construction work to rebuild the tunnel significantly reduces route capacity until September 2024.

A number of other factors have put pressure on the European rail system. These include the sometimes massive increases in energy and traction costs, but also the poor quality of the rail network, particularly in Germany, due to neglected maintenance and inadequate planning of construction sites. This has led to capacity bottlenecks, delays and cancellations on many corridors.

In the resource-intensive business of combined transport, rapid response to market fluctuations is crucial. With various measures

such as adapting the wagon fleet to demand, selective consolidation of the network and consistent capacity management, Hupac was able to absorb the losses in the course of the year and stabilise the business. In view of the challenging conditions in the year under review, the consolidated loss of CFr 6.2m can be regarded as acceptable, the company says. Indeed, Hupac was able to continue its strategic investments in terminals and IT projects with a total expenditure of CFr36m.

WHAT CAN BE DONE

The past year has shown once again that combined transport is facing growing challenges. “For several years now, we have been experiencing a negative spiral of poor availability of the rail network due to disruptions and construction work, coupled with rising energy, traction and track costs,” says Hans-Jörg Bertschi, chairman of the Board of Directors,. The punctuality of trains on the north-south axis through Switzerland has fallen to 50 per cent and unplanned cancellations are now above 10 per cent. Under these conditions, the competitiveness of combined transport is suffering compared to direct road transport, which has excess capacity in the current recessionary market environment.

Targeted transport policy initiatives are needed to support modal shift, Hupac says. Even small measures would bring tangible relief. For instance, the unstable traffic situation on the north-south axis through Switzerland can be sustainably improved by providing storage sidings for trains. Buffer tracks north and south of the Alps ensure that trains can leave the terminals in the event of disruptions and can be temporarily parked along the corridor until they can continue their journey on a later train path.

Alternatives through France are urgently needed because of the persistent capacity bottlenecks on the Rhine Valley line. The upgrading of the Belgium-Metz-StrasbourgBasel line to the 4-metre profile is a priority. It is in the interest of Switzerland’s modal shift policy that combined transport between Belgium and Italy can take the shortest route through France to the Gotthard base tunnel. Switzerland should therefore co-finance the extension of the Vosges tunnels, as it has

done in Italy. Another alternative route to be tackled is the upgrading of the WörthStrasbourg line as a NEAT feeder line for continuous freight train services with hybrid or diesel traction.

On the other hand, the planned redistribution of funds from long-distance to short-distance traffic in Alpine transit through Switzerland is counterproductive. “The greater the penetration of traffic into the German network, the greater the quality deficits and production costs, and thus the risk of backshifts,” says Bertschi. “The subsidies must not be reduced on these long distances, otherwise there will be a return to road”. If the shift to combined transport between southern Germany and Alsace near the border with Italy is to be promoted, additional funds totalling CFr15m will be needed.

ONGOING INVESTMENT

As part of the discussion of the 2023 modal shift report in the Swiss Parliament, representatives and associations from all modes of transport in the country supported these three political demands, as a result of which the National Council’s Transport Committee submitted three corresponding committee motions in the spring session.

The general overhaul of Germany’s rail network planned for 2024-2030 is urgently needed after years of neglect, but it poses major challenges for European logistics.

“Months of complete closures with sometimes extensive diversions of several hundred kilometres and reduced performance parameters cannot be tolerated without financial compensation,” warns Hupac CEO Michail Stahlhut. “We support the call to include diversion costs as an integral part of infrastructure investments. This is the only way for rail freight to survive the long and arduous period of a general overhaul”.

Despite the current difficult situation, Hupac remains committed to the development of combined transport and is contributing to the future viability of the system with innovative solutions. “After years of preparation, we have succeeded in developing a differentiated solution for replacement transport during the closure of the Rhine Valley line near Rastatt in August 2024,” says Stahlhut. “Thanks to the good cooperation with the infrastructure operators and railway companies concerned, we are able to run freight traffic over the Wörth-LauterbourgBasel route on the left bank of the Rhine for the first time, offering our customers a

diversion capacity of around 80 per cent”. Operating the line in France, using hybrid locomotives and bilingual drivers, involves significant additional costs. “Once again, it is clear that we need a concept and European regulation on how to deal with the additional costs of traffic management for constructionrelated closures in future without risking a shift back to the roads,” comments Stahlhut.

The expansion of terminal capacity is crucial for the long-term development of combined transport. In July 2023, Hupac and its partner TP Nova won the tender to operate the La Llagosta terminal near Barcelona. After completion of the construction work, the terminal will be operational in 2025, opening up new opportunities in the growth market of Spain. Transhipment at the new Duisburg Gateway terminal, in which Hupac holds a 26 per cent stake, will start this year. New opportunities for transalpine transport will also arise with the commissioning of the terminal extension in Piacenza at the beginning of 2025. “The facility has been expanded and equipped for the future with gantry cranes and 750 metres of transhipment tracks,” explains Stahlhut. The Milano Smistamento terminal, in which Hupac is involved together with Mercitalia Logistics, is scheduled to open in 2026.

For the current year, Hupac expects stable traffic volumes on its continental and maritime networks. Business activities will continue to focus on targeted capacity management and selective, market-oriented service expansion.

“We are convinced that we can continue to offer real added value for environmentally and climate-friendly logistics with competitive, market-oriented combined transport products,” says Stahlhut. Compared to pure road transport, the Hupac network saved around 1.4m tonnes of CO2 in 2023, reduced energy consumption by 15.5bn megajoules and took 18m tonnes of goods off the roads. Stahlhut adds: “Our long-term corporate strategy is part of our response to major societal challenges such as climate protection, energy transition and sustainable economic development. This is what we are focusing on in the current year.” www.hupac.ch

IT TAKES A VILLAGE

EVENT PREVIEW • TRANSPORT LOGISTIC CHINA OPENS ITS DOORS LATER THIS MONTH AND THE TANK CONTAINER INDUSTRY WILL BE OUT IN FORCE TO TAKE ADVANTAGE

THESE DAYS, THE tank container sector is highly reliant on China, not just as the manufacturing base for the majority of new tanks but also, increasingly, as a generator of business for tank operators. As such, it has never been more important for the sector to take advantage of the business opportunities offered by the biennial transport logistic China show and the International Tank Container Organisation (ITCO) has once again organised its ‘Tank Container Village’ as part of the event.

Since its inception in 2004, transport logistic China has been recognised as the leading trade fair for logistics, mobility, IT and supply chain management in the Asia-Pacific region. Over the past two decades, the show has consistently set industry trends and served as an important gateway for both international companies seeking access to the Chinese market and Chinese companies looking to expand globally. From 25 to 27 June, the Shanghai New International Expo Centre will once again be the meeting place for the global logistics and airfreight industry.

In 2004, the first transport logistic China covered some 22,000 m2 of exhibition floor space. Today, the trade fair has developed into a global platform for the logistics industry, and this year’s event will host more than 700 exhibitors showcasing their products and services across 50,000 m2 of exhibition space.

On top of that, visitors will have plenty of opportunity to learn about the latest developments in regional logistics through an extensive conference programme.

This will be the first transport logistic China event since 2018; the 2020 and 2022 editions had to be cancelled as a result of restrictions imposed during the Covid pandemic years.

“We are delighted that transport logistic China is finally back on track and making an impressive comeback,” says Dr Robert Schönberger, Global Industry Lead at Messe München, which organises the event as well as the original transport logistic show in Munich every other year. “It has been a pacemaker for the development of the Eurasian Corridor over the past two decades and today reflects the major shifts in the global economy. These include the nearshoring of industry, digitalisation, ongoing globalisation and dealing with climate change.”

TANKS TURN OUT IN FORCE

ITCO has sold out its Tank Container Village, which has 24 booths for its members. Not surprisingly, local companies are well represented, with major tank manufacturers CIMC Safeway Technologies, Nantong Tank Container (NTtank) and Singamas unit Shanghai Pacific International Container, as well as valve manufacturer Grande-Tek all

signed up to appear. Bertschi and NewPort will be represented by their local affiliates.

Other Asian participants in the Tank Container Village include India-based depot operator Zodiac Tank Container Terminals and Singapore’s Raffles Lease and Legend Global Logistics. But there are plenty of names from Europe and North America, especially among equipment and service suppliers, who are turning up in numbers. These include Advanced Polymer Coatings (APC), Lamilux Composites, Fort Vale Engineers, Perolo and OPW Fluid Transfer Solutions. Among operators and lessors, Bertschi Global Transport, Den Hartogh Global, CS Leasing, Eurotainer, Exsif, Seaco and Triton Container are all planning to be on hand.

ITCO is inviting all its existing and

prospective members, their customers and industry colleagues to visit the exhibition stands and meet their business partners.

WHAT ELSE TO SEE

Away from the Tank Container Village, the trade fair covers the entire spectrum of logistics services, from logistics real estate and air freight to land transport, port and shipping logistics, fresh produce logistics, logistics equipment and IT systems and special vehicles.

This year, air cargo China will once again take place as part of transport logistic China. It is the largest industry event for air cargo in the Asian region and, at around 10,000 m2, is larger than ever before. Visitors will have the opportunity to network with renowned airlines

such as China Southern Airlines, Cargolux, All Nippon Airways, Etihad Cargo, Lufthansa Cargo, Silk Way West Airlines, Qatar Cargo and United Cargo, as well as airports and providers for service and logistics.

transport logistic China and air cargo China also provide an excellent opportunity to obtain the latest market information. Experts from all areas of the logistics industry will discuss hot topics such as e-commerce, the Maritime Silk Road and logistics trends and technologies for the supply chain in the manufacturing industry, with a focus on the automotive, chemical and textile industries. The conference sessions are free of charge for exhibitors and visitors.

For more information visit www. transportlogistic-china.com.

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NEWS BULLETIN

NEW DEPOT FOR COTAC

Cotac has opened a new tank container cleaning and repair facility in Ludwigshafen, the first under a new partnership with Contargo, Multimodal Tank Care (Mutac). The new Kaiserwörthhafen location can handle up to 20,000 cleanings and 7,000 repairs a year, with periodic maintenance and modification also offered in the workshops, which can accommodate containers of up to 52 feet.

“Our customers benefit from the fact that we are located in the immediate vicinity of a trimodal container terminal,” says Dirk Müller, site manager at cotac Ludwigshafen. “This enables us to offer them all the services in accordance with established quality standards and brought together at a single site. For us, the fast and flexible turnaround time of tank containers is our absolute focus.”

Six steam heating spots are provided and there is temporary storage space for empty tanks before and after cleaning and workshop services. “We can now offer customers in the

Rhine-Neckar metropolitan region an even more comprehensive service for tank containers, available immediately,” says Jürgen Albersmann, CEO of Contargo. “To enable as many shippers as possible to benefit from these services, we are currently increasing the storage capacity for tank containers at our Ludwigshafen terminal from 430 to 730 spaces.”

www.cotac-group.com

TELKO MAKES A MOVE IN SWEDEN

Telko has acquired Swed Handling Group and its subsidiaries, which together represent a full-service supplier of industrial chemicals, primarily addressing Swedish industry. Swed Handling offers a wide range of products, deliveries through its fully owned transport operations. It employs 95 people and has an annual turnover of some €60m. The transaction is subject to competition approval but is expected to close in the third quarter; Swed Handling’s current owners will stay with the operation following the acquisition.

“We are impressed for the great development of Swed Handling and its unique way of serving customers,” says Mikko Pasanen, CEO of Telko Oy. “I’m convinced that joining strengths of Swed Handling and Telko, we will be able to strengthen partnerships with our customers and suppliers even further. The acquisition of Swed Handling is a significant step for Telko and Sweden will become the biggest market for Telko Group. This acquisition will double our net sales in chemicals. With Swed Handling’s existing customer-focused business model that combines high quality processed chemical products with customised service, we are significantly strengthening Telko’s presence in the Nordic markets.” www.telko.com

DE RIJKE REIGNS IN SPAIN

De Rijke Spain has moved to a new centralised warehouse in Barcelona, with an area of 14,350 m2 and 13,000 pallet locations. The site will be equipped with the necessary measures to allow the storage of dangerous chemicals (APQ-10). The recently built warehouse is in the G-Park Santa Perpètua, which offers good connections to land and sea shipments.

“The decision to place the operations in the G-Park represents a strategic opportunity that will translate into improvements for our clients,” says Mike Schreuders, De Rijke’s country manager in Spain. “This will allow us to centralise operations in Spain, unite the two current warehouses and activities into one, and take advantage of synergies to optimise loading capacity, storage and logistics services, as well as promoting more agile and effective work. This new warehouse also gives the possibility of growing with plans to expand business lines and penetrate market niches that we have been exploring.”

derijke.com

EXSIF is one of the world’s largest, and most trusted ISO tank leasing companies for tank container solutions. EXSIF provides reliable and sustainable equipment combined with best-in-class services that enable the global movement of products essential to everyday life. Leverage our 20+ years of experience and expertise serving the tank container industry.

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SUTTONS INVESTS AND EXPERIMENTS

Suttons Tankers has invested £1.8m to support its long-running contract with CF Fertilisers, acquiring 12 new tanks for the carriage of nitric acid and refurbishing four anhydrous ammonia tanks. The nitric acid tanks are a new addition to the partnership between the two companies, which has been running for some 30 years; under the contract, Suttons loads product from CF’s plant in Billingham for delivery to customers across the UK.

“At Suttons, investing in our fleet is key. It helps us maintain excellent service and safety, which we’re proud of,” says Paul Blakeston, Suttons’ head of chemicals. “We are delighted to strengthen our bond with CF even further and are excited to see where our partnership takes us in the future.”

“The tanker investment with Suttons exemplifies our focus on continuing outstanding service and customer experience, whilst keeping safety at the forefront,” adds Cameron Dewhurst, supply chain manager at CF Fertilisers. “It also demonstrates our long-term commitment to supplying the UK market, and Suttons are a key partner for us in achieving this.”

In other news, Suttons Tankers and its client 2M Group have embarked on a six-month trial of using hydrotreated vegetable oil (HVO) as an alternative fuel for the vehicles working on the 2M Water Treatment contract. During the trial, the trucks will run on a blend containing 37 per cent HVO. Suttons has already trialled HVO on part of its fleet, which proved an 80 per cent reduction in carbon emissions.

“We are delighted to be trialling HVO as an alternative fuel in our vehicles,” says Mark Johnson-Treherne, logistics manager at 2M Group. “By entering this six-month trial with Suttons, we are aiming to reduce our environmental footprint with innovative solutions whilst providing the same quality service for our customers.”

“The results of our HVO fuel trial highlight the strides we are making towards reducing our environmental impact and embracing cleaner energy alternatives,” adds Rajat Bhardwaj, ESG manager at Suttons Tankers. “The reductions in net greenhouse gas emissions demonstrates how effective HVO fuel is for driving sustainability within our operations. Moving forward, we remain dedicated to advancing sustainability initiatives that benefit Suttons, its customers and the communities it serves.”

www.suttonsgroup.com

NEW TRUCKS FOR DINGES

Dinges Logistics is adding 20 new Scania tractor units over the next few months, as part of an ongoing fleet replacement programme. The new trucks are equipped with the latest safety systems and offer better driver comfort. Additionally, the new tractor units are equipped with the advanced Scania Super powertrain, which offers outstanding fuel efficiency and robustness.

“With the new tractor units, we now have a fuel consumption of less than 25 litres per 100 km - that’s quite remarkable,” says Daniel Hirschinger, fleet manager at Dinges Logistics. dinges-logistics.com

TRISTAR INNOVATES IN SAUDI

Tristar KSA, the Saudi Arabian unit of Tristar Group, has commissioned a new warehouse and road tanker fleet for the safe transport and storage of ChampionX products. ChampionX is a global leader in the supply of chemicals used in oil and gas production.

The new warehouse in Dammam has 10,000 pallet positions. The new stainless steel road tankers are designed with the operating box at the rear, rather than under the tank, helping to improve safety. Pumps are operated pneumatically or hydraulically with no need for external power or onboard generator. These innovative systems, designed by Tristar KSA, support more sustainable operations and protect drivers.

“Tristar KSA is the first transporter in Saudi Arabia to have introduced a unique and innovative tanker pumping system in chemical tankers which is designed to meet not only clients’ operational requirements but also sustainability requirements,” says Aous Ali, Tristar KSA’s country manager. “These were initiatives done by us with the support of our head office in Dubai. To be precise, the tanker pumping system which is an air-operated double diaphragm (AODD) pump will use the air source from the truck compressor.”

www.tristar-group.co

STAY SAFE WITH GUARANTEED PARTS.

They say that imitation is the sincerest form of flattery, but we beg to differ.

Fort Vale is the market leader in the design and manufacture of manways, valves and ancillaries for tank containers. All of our equipment, from the largest manlid to the smallest valve seal, is rigorously tested for quality and efficiency. In fact, we manufacture the most extensive range of tank container equipment available in the industry for the diverse requirements of IMDG, ADR and RID.

We also go to enormous lengths to maintain the quality of our equipment - Fort Vale will always supply you with the safest, most durable and reliable OEM seals and gaskets - but we can’t guarantee parts from third-party suppliers.

So don’t let a short term saving cause you a long term problem - stay safe, and accept no substitutes.

And join us at the head of the pack.

FORT VALE.

FOLLOW THE LEADER.

CONFERENCE DIARY

JUNE

Argus Clean Ammonia North America

JUNE 10-12, HOUSTON

Regional event to discuss opportunities in new fuels

www.argusmedia.com/en/conferences-eventslisting/clean-ammonia-north-america

Achema

JUNE 10-14, FRANKFURT

Exhibition and conference for the specialty chemicals sector www.achema.de

Multimodal 2024

JUNE 11-13, BIRMINGHAM

16th annual exhibition for the supply chain management and logistics sectors www.multimodal.org.uk

CO2 Shipping & Terminals

JUNE 18, LONDON

Third one-day event to discuss the emerging CO2 supply chain www.rivieramm.com/events/co2-shipping-andterminals-2024

Chemspec Europe 2024

JUNE 19-20, DÜSSELDORF

International exhibition for fine and speciality chemicals www.chemspeceurope.com

Transport Logistic China

JUNE 25-27, SHANGHAI

Tenth international exhibition for logistics, telematics and transport www.transportlogistic-china.com

PGLC

JUNE 27-28, CARTAGENA, SPAIN

Fourth annual Petrochemical Global Logistics Convention www.pglc.biz

JULY

Oil & Gas Africa 2024

JULY 3-5, NAIROBI

11th annual exhibition for the upstream and processing sectors in east Africa www.expogr.com/kenyaoil/

Pumps & Valves Asia

JULY 3-5, BANGKOK

Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com

AHMP EHS Hazmat Summit

JULY 14-17, KANSAS CITY

Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/national-conference

AUGUST

Expo Logisti-K

AUGUST 13-15, BUENOS AIRES

15th international exhibition for logistics technology and equipment www.expologisti-k.com.ar/en/

PPC Fall Meeting

AUGUST 18-20, SAN DIEGO

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

ChemEdge

AUGUST 21-23, INDIANAPOLIS Conference for the North American chemical distribution sector

www.acd-chem.com/education-meetings/ meetings/2024-chemedge/

SEPTEMBER

SMM

SEPTEMBER 3-6, HAMBURG

31st biennial exhibition and conference for the global shipping industry www.smm-hamburg.de

Labelmaster DG Symposium

SEPTEMBER 4-6, PHOENIX

19th annual Dangerous Goods Symposium hosted by Labelmaster www.labelmaster.com/symposium

CVSA Annual Conference

SEPTEMBER 8-12, BIG SKY, MT

Annual meeting of the Commercial Vehicle Safety Alliance www.cvsa.org/events/cvsa-annual-conferenceand-exhibition/

Argus Sustainable Marine Fuels

SEPTEMBER 11-13, HOUSTON

Forum to discuss the path to decarbonising marine fuels www.argusmedia.com/en/events/conferences/ sustainable-marine-fuels

FECC Congress

SEPTEMBER 11-13, SITGES

Annual meeting of the European Association of Chemical Distributors www.fecc-congress.com

Gastech 2024

SEPTEMBER 17-20, HOUSTON

International conference and trade show for the LNG and LPG industries www.gastechevent.com

ECTA Responsible Care Workshop

SEPTEMBER 19, BRUSSELS/ONLINE

Update on Responsible Care implementation in European chemical transport https://ecta.com

TSA Conference & Exhibition

SEPTEMBER 19, COVENTRY

22nd annual meeting of the UK Tank Storage Association www.tankstorage.org.uk/conference-exhibition/

Two Trade Fairs. One Venue. Twice the Benefits. LEIPZIG, GERMANY 22– 24/10/2024

INCIDENT LOG

ROAD/RAIL/AIR INCIDENTS

Date Location

1/5/24 Burdur, road tanker LPG Gas tanker overturned on Burdur-Antalya highway, causing road to be closed; driver was injured in crash; Alanya Turkey no report of leakage but fire crews had to oversee transfer of LPG from the wreck

2/5/24 nr Okotoks, road tanker fuel Road tanker carrying unspecified fuel was in collision with pickup truck on Highway 2; both drivers hurt, CTV Alberta, Canada required hospital treatment; fuel spilled to grassy median; RCMP investigating

2/5/24 Khanewal, road tanker gasoline Fire broke out on Euro Oil-owned tanker carrying 48,000 litres gasoline from Karachi to Multan; quick Urdu Punjab, Pakistan response by rescue crews helped contain fire Point

2/5/24 Norwalk, road tanker gasoline Tank truck with 8,500 gal (32 m3) gasoline was involved in three-vehicle crash on I-95, causing tanker to USA Connecticut, US burst into flames; no serious injuries but burning fuel badly damaged road and overpass bridge Today

5/5/24 Elizabeth township, road tanker asphalt Driver killed when tank truck with asphalt crashed, caught fire; road closed for most of the day for Penn Pennsylvania, US response; no indication of spillage of cargo Live

8/5/24 Patna, road tanker diesel Fire broke out in rear tyres of road tanker on Chitkohra flyover; driver stopped and alerted fire brigade; Times of Bihar, India crews arrived quickly, brought fire under control; thought that leaking brake fluid may have ignited India

8/5/24 Aqaba, road tanker fuel Fire broke out in tanker – pictures suggest it started in engine, spread to cab and cargo tank; some fuel Roya Jordan spilled to road; no reports of injuries; police closed road during response News

8/5/24 nr Ohau, road tanker fuel Road tanker carrying unspecified fuel rolled over on SH 1 south of Levin; no reports of injuries; police RNZ NI, New Zealand closed highway for 18 hours

9/5/24 Piacenza, truck paracetic Truck carrying paracetic acid crashed into car on A21 motorway; truck driver killed in crash; seven other ANSA E-R, Italy acid people, including three in the car, suffered effects of acid inhalation

9/5/24 Pike county, road tanker sulfur Tank truck carrying molten sulfur overturned on Route 23; driver trapped but survived; crash ruptured Scioto Ohio, US natural gas line alongside road but no fire reported Valley

13/5/24 Creola, road tanker nitric acid Valve was found to be leaking when tanker with nitric acid pulled off highway; five people hospitalised Fox10 Louisiana, US after breathing fumes; nearby residents advised to shelter in place until leak was secured after four hours

14/5/24 Kotluban, freight train diesel Two wagons of freight train derailed at station, due to “unauthorised interference”; one tank car with diesel Xinhua Volgograd, Russia caught fire, which spread to another wagon carrying timber; no casualties reported

15/5/24 Macedonia, road tanker sodium Tank truck with sodium hydroxide exploded at Royal Chemical site, causing barrel to split into two; three Akron Ohio, US hydroxide people hurt, one with life-threatening burns; investigation underway Beacon J’l

15/5/24 Phoenix, truck waste Driver was killed by explosion while transporting waste from construction site at Taiwan Semiconductor; AZ Arizona, US waste included pressurised tank, which ruptured violently; no other injuries or damage reported Central

16/5/24 nr Morrison, road tanker unknown Tank truck, cargo unidentified, was engulfed in flames after being in collision with six other vehicles on Denver Colorado, US I-70; fire spread to the other vehicles and grassland; highway closed in both directions Post

17/5/24 nr Fountain, road tanker ammonium Tank truck carrying ammonium nitrate overturned after driver lost control; some product leaked to road; WITN N Carolina, US nitrate five homes in rural area evacuated, road closed; tanker was righted later the same day

19/5/24 Pune, road tanker LPG Gas tanker caught fire, exploded near Khed; nearby vehicles, buildings damaged but no casualties reported; Hindustan Maharashtra, India police said suspects were trying to steal gas from the tanker to refill cylinders; investigation underway Times

20/5/24 Sorrento, road tanker sodium Tank truck with sodium hydroxide overturned at roundabout on La 22, causing day-long road closure; WBRZ Louisiana, US hydroxide cleanup contractor collected spilt cargo; no injuries reported; similar accident at same roundabout last year

MARINE/INLAND WATERWAY INCIDENTS

23/5/24 Kanhangad, road tanker LPG Gas tanker suffered leak near Chithari; driver spotted leak and alerted responders; nearby residents evacuated The Kerala, India during response; leak identified in gauge; IOC personnel transferred LPG to other tankers Hindu

MARINE/INLAND WATERWAY INCIDENTS

30/4/24 Koege, Rix

to

MISCELLANEOUS INCIDENTS

Date Location

19/4/24 Galena Park, chemical

Three contract workers were injured by flash fire during maintenance work at Kinder Morgan terminal; Fox Texas, US terminal press images showed damage near pipe rack; no loss of product or off-site impact

20/4/24 nr Sarnia, chemical benzene

Mechanical issue caused lengthy release of benzene from Ineos Styrolution plant; facility was shut down on Canadian Ontario, Canada plant 20 April two days after provincial order, following complaints from nearby First Nation community Press

22/4/24 Ban Khai, chemical waste

Fire broke out in Win Process warehouse, storing waste solvents for reprocessing, leading to series of Bangkok Rayong, Thailand warehouse explosions; nearby residents evacuated; operator’s licence suspended pending investigation, prosecution Post

27/4/24 Kampong Speu, ammunition bullets

At least 20 people killed, many more injured after fire led to explosion at military ammunition depot; Khmer Cambodia depot area was closed to traffic, nearby residents evacuated; fire was under control in two hours Times

30/4/24 Mold, chemical chemicals

Fire broke out at Synthite factory, followed by series of explosions; factory and neighbouring buildings Wales Flintshire, UK plant evacuated; other residents advised to shelter in place; no reports of injuries Online

7/5/24 Ibeju-Lekki, gas shop LPG

Two people killed by explosion in gas retail shop; blast sparked fire that spread, destroying four other shops; Vanguard Lagos, Nigeria three other people injured

9/5/24 Mab Ta Phut, chemical pygas

At least one killed, four injured after “huge” fire broke out in 2,500-m3 storage tank with pyrolysis gasoline AP Thailand terminal at Mab Ta Phut Tank Terminal; fire contained after six hours but took another ten to extinguish completely

12/5/24 Bawana, chemical chemicals Seven people injured after explosion and fire in chemical factory; initial investigation suggested spark during PTI Delhi, India factory electrical work ignited chemicals; owner faces legal proceedings

18/5/24 nr Essikado, harbour premix

Two fishermen were offloading drum of premix fuel when it fell, ruptured; fuel ignited, exploded, killing Ghanaian Western, Ghana two boys; 15 others injured, two critically; locals attempted to fight blaze with sand, water; significant damage Times

19/5/24 Bethany, tank crude oil Fire broke out at tank battery, cause unknown; residents advised to shelter in place while fire crews dealt with KOKH Oklahoma, US battery blaze; second tank fire in the same area that weekend

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top of important developments.

A reliable source of global reporting and analysis on the safe use of chemicals in products

Chemical Watch News & Insight gives your team the tools they need to:

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NOT OTHERWISE SPECIFIED

SHOOT ‘EM UP

Class 1 covers a very wide range of substances and articles, from small fireworks that are so safe you can hold them in your hand, all the way up to mass explosives that can blow a hole in the earth or level a city block. Somewhere in the middle lies Tannerite, which can be a whole lot of fun if used correctly but, in careless hands, can cause quite a lot of damage. Indeed, this page has featured Tannerite on a number of occasions, often associated with that modern abomination, the ‘gender reveal’ party.

The perils of Tannerite in untutored hands were laid bare in the recent amendments to Canada’s Explosives Regulations. Natural Resources Canada, in its explanation of the benefits of the changes, says that the improper use of what it calls “reactive targets” has caused several notable incidents in Canada and the US over the past six years. In April 2017, for instance, the ‘Sawmill Fire’ in Arizona, ignited by Tannerite being used at a gender reveal party, burned more than 46,000 acres and caused US$8m in property damage; in November 2018, the intentional detonation of 40 lb (18 kg) of the substance caused an estimated C$14m in damage to a parking garage in Sherwood Part, Alberta; and in May 2021, another gender reveal party ended with a wildfire near Fort McMurray, Alberta.

As of now, you will be pleased to hear, only people who hold a Firearms Possession and Acquisition Licence will be allowed to buy reactive targets and no more than 6 kg of reactive may be stored at any one time. Alternatively, just skip the party.

DEBUGGED

Bed bugs can be a real nuisance, as anyone who has suffered an infestation can attest, but they rarely cause fatal effects. However, as with Tannerite, it depends on the good sense of the individual involved. An 11-year old girl died in November 2021 in the London district of Shadwell after a neighbour in the block of flats took drastic action to clear the problem. The neighbour got hold of some aluminium phosphide pellets from Italy, presumably from an online seller, and scattered them about her own flat; the pellets were activated by moisture, releasing phosphine gas. She may have overdone the dose, as the gas managed to get into other flats in the block; the girl died a month later in hospital. The woman who carried out the careless fumigation has admitted importing a regulated substance and also pleased guilty to manslaughter; she is likely to be spending some time behind bars.

BAD BLOCKAGE

Boeing aircraft have been in the news lately after a few high-profile incidents. But one that didn’t make the headlines occurred in March, on a United Airlines 777 from Frankfurt bound for San Francisco. The flight had only got as far as Dutch airspace when it had to turn back as one toilet had become clogged and was overflowing, with a stinky soup spilling into the cabin. Sources suggest the pilot’s reaction to the spill might have been excessive; apparently something similar happened on an American Airlines flight from Delhi to JFK in January and it carried on for over 10 hours even though four toilets were “flooded with sewage”. It’s enough to put you off flying for life.

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