HCB Magazine June 2020 by Enhesa Product

M O N T H LY J U N E

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IT’S COLD OUT THERE LPG DEMAND KEEPS GAS TANKER UTILISATION AND RATES FIRM STAYING SAFE ON TOP OF TANKS DISTRIBUTORS RESPOND TO CRISIS REGULATORS HAVE A LOT TO DO

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EDITOR’S LETTER

How will we remember the year 2020 when it’s all over?

of WP15, and the summer sessions of the UN TDG and

We may remember the clean air and quiet roads, and we

GHS experts have all been cancelled.

may remember the struggles and stresses involved in getting enough food and drink. But apart from that, will we remember it at all? My diary,

In all cases, these meetings were the last opportunity for the regulators to agree major changes to their respective rulebooks and, at least for RID and ADR,

for instance, is blank from early March onwards – blank,

the 2021 texts will include only those changes that

that is, apart from all the engagements and trips that had

had already been adopted in the latter part of 2019 –

been planned only to be cancelled or postponed, and are now

although there may be some amendments, corrections

still in the pages of the diary, crossed out. Postponed till when?

and consequential amendments.

It’s hard to tell – pretty much everything this side of October

Likewise, the UN TDG Sub-committee will now miss

is now not happening and some events that have been put

the third of its four sessions in the current biennium.

back once have since been postponed even further.

Traditionally this has been the one session where all the

This has affected everyone in the industry – although as

hard work and disagreements are sorted out and set down

we see in the pages of this issue of HCB, many companies

as the amendments that will appear in the next issue

are able to carry on and, with some tweaks to the way they

of the UN Model Regulations, for publication next year.

are doing things, are still making money.

The final session is generally left for late changes and

Also affected, of course, have been the regulators. They too

tidying up. This will not happen this time around.

have been unable to travel – and probably unwilling, too. After

What all this does mean is that the next editions of

all, who wants to share a stuffy meeting room in Geneva with

the regulations will include fewer changes than they

100 or so other experts who have flown in from all points of

might have done. I dare say there will be many in industry

the compass? Let’s not forget either that a fair number of

who see this as a good thing, and I have some sympathy

these experts are not in the first flush of youth – that’s how

with that position.

they get to be experts – and are among those most at risk from the virus.

On the other hand, it also means that there may be some safety-critical changes that are not adopted promptly,

So if the experts cannot get to the meeting rooms at the

although the modal authorities may be able to bring those

UN building, how do they make regulations? Well, the short

forward into the 2023 revisions rather than wait to 2025.

answer is: they can’t. So far this year the spring Joint Meeting of the RID/ADR/ADN experts, the spring sessions of the RID Committee of Experts and its standing working group and

And in any case, you will still have to buy copies of the new regulations next year. Peter Mackay

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UP FRONT 03

CONTENTS VOLUME 41

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UP FRONT Letter from the Editor 30 Years Ago Learning by Training View from the Porch Swing In memoriam: David Jenkins GAS TANKERS Ready for anything Gas ship owners enjoy it for now FP and semi-ref fleet listing Fully refrigerated fleet listing Green gas shipping Gasum helps Preem get clean TANKER SHIPPING Kirby gets a grip US barge business going strong Grab and go Odfjell takes advantage of market Over to you Team outsources management Pump it up Big landmark for Framo News bulletin – tanker shipping TANK CONTAINERS Take it from the top ITCO guidance on tank top working Ready for the fight VTG breaks all records

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TANKS & LOGISTICS Run on time Implico finds where the trains are Eyes in the skies CSafe tracks the cold chain The power of seven Power-to-methanol plan in Antwerp Stay positive Hoyer targets investments News bulletin – tanks and logistics CHEMICAL DISTRIBUTION What Corona tells us Fecc looks for lessons in a crisis Perfect storm UK distributors face double trouble Stick with the project Brenntag’s holistic transformation Spring into action Univar starts 2020 brightly Tomorrow is now Matlack highlights digitisation benefits News bulletin – chemical distribution

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INDUSTRIAL PACKAGING Just the ticket Cross-bottling reconditioning from Schütz 40 Open and shut case Greif concentrates on industrial markets 41

COURSES & CONFERENCES

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

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

Through the mill The editor becomes a DGSA Conference diary

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SAFETY Incident Log Stay safe TT Club highlights Covid-19 risks It’s good to talk NTSB identifies communication issues Fire in the hold Amsafe FCC passes another test Waiting to happen HSE slams Chevron over deaths Getting wet Intercargo wants action on liquefaction REGULATIONS Keep in step More amendments from the UN Catch the last train RID experts agree changes BACK PAGE Not otherwise specified

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NEXT MONTH HCB AT 40 – a special issue looking back at four decades of dangerous goods

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

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

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

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30 YEARS AGO A LOOK BACK AT JUNE 1990

In a spooky premonition of what was to come thirty years later, our June 1990 issue led on the storage terminals market, with the introduction to the main story saying: “Although utilisation rates are running high, terminal operators feel there is no great need for new tankage”. In the current disrupted oil markets, most tanks – especially in North America but also in trading hubs around the world – are full to the brim but terminal operators, fearing what this might all mean for upstream investment, are cutting capital expenditure rather than building more capacity. But back in 1990, HCB reported that the boom year of 1989 was based largely on increased demand for chemicals storage and we noted that, with the introduction of increasingly strict requirements to reduce vapour emissions in tank storage activities, many in the business were predicting that the handling of particularly hazardous substances would become concentrated among a few dedicated facilities. That separation has indeed taken place to a large extent, though there are still multi-purpose terminals in operation, particularly in smaller ports. Back in June 1990, HCB carried its annual review of terminal expansion and investment projects in a listing that ran to 6.5 pages

hazards such as flammability, toxicity, oxidation and corrosivity should take precedence over the pressure hazard posed by Class 2 gases and it was therefore appropriate to split Class 2 into three divisions. Not only that, but these three divisions should also bear different labels and placards – something that has come back to the UN experts over the past year, with discussions about how to differentiate those labels for Divisions 2.1 and 2.3 from the corresponding labels for flammable liquids and toxic substances. This was the point too when the new entries UN 3156 to 3163 were introduced into the Dangerous Goods List. Also at that session, the UN experts were asked to discuss the problems being presented by waste material generated by hospitals; at that time, it was felt that infectious substance wastes should be disposed of or decontaminated at source. That may be the case but the recent Ebola virus outbreaks and the current Covid-19 crisis show that it is not always possible. Over in London, IMO’s Marine Environment Protection Committee (MEPC) had met in March, for the first time since Bill O’Neil had taken over as secretary-general of the organisation. Opening the MEPC

– but included nothing east of Suez. These days we are more clued up about developments in Asia and the equivalent article in last month’s issue covered ten pages of the magazine. There were pre-echoes of 2020 also in the Regulation section of the June 1990 issue, with a report by ‘HJK’ on the January 1990 session of the UN Sub-committee of Experts’ work to review the provisions for gases of Class 2. This was the point at which it was agreed that

session, O’Neil reminded delegates of the impact of the Exxon Valdez incident in Alaska in March 1989 as well as the potential pollution impact in Morocco following the explosion aboard the VLCC Khark-5 in December 1989. Those two incidents did much to accelerate MEPC’s work towards the development of the International Convention on Oil Pollution Preparedness, Response and Cooperation, which was rapidly adopted in November 1990.

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UP FRONT 05

LEARNING BY TRAINING By Arend van Campen

THE STONE CUTTER

There was once a stone cutter who was dissatisfied with himself and with his position in life. One day he passed a wealthy merchant’s house. Through the open gateway, he saw many fine possessions and important visitors. “How powerful that merchant must be!” thought the stone cutter. He became very envious and wished that he could be like the merchant. To his great surprise, he suddenly became the merchant, enjoying more luxuries and power than he had ever imagined, but envied and detested by those less wealthy than himself. Soon a high official passed by, carried in a sedan chair, accompanied by attendants and escorted by soldiers beating gongs. Everyone, no matter how wealthy, had to bow low before the procession. “How powerful that official is!” he thought. “I wish that I could be a high official!” Then he became the high official, carried everywhere in his embroidered sedan chair, feared and hated by the people all around. It was a hot summer day, so the official felt very uncomfortable in the sticky sedan chair. He looked up at the sun. It shone proudly in the sky, unaffected by his presence. “How powerful the sun is!” he thought. “I wish that I could

shouted at by everyone. But soon he found that he was being pushed away by some great force and realised that it was the wind. “How powerful it is!” he thought. “I wish that I could be the wind!” Then he became the wind, blowing tiles off the roofs of houses, uprooting trees, feared and hated by all below him. But after a while, he ran up against something that would not move, no matter how forcefully he blew against it - a huge, towering rock. “How powerful that rock is!” he thought. “I wish that I could be a rock!” Then he became the rock, more powerful than anything else on earth. But as he stood there, he heard the sound of a hammer pounding a chisel into the hard surface and felt himself being changed. “What could be more powerful than I, the rock?” he thought. He looked down and saw far below him the figure of a stone cutter. When I was a kid, I loved to listen to this story about a man who, without knowing he already had it all, chose to crave more. He had become a victim of his environment, envious and greedy. Today, the Coronavirus has taught us an important lesson: to appreciate the values we already possess, such as common sense and

be the sun!” Then he became the sun, shining fiercely down on everyone, scorching the fields, cursed by the farmers and labourers. But a huge black cloud moved between him and the earth, so that his light could no longer shine on everything below. “How powerful that storm cloud is!” he thought. “I wish that I could be a cloud!” Then he became the cloud, flooding the fields and villages,

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

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FROM THE PORCH SWING YOU CANNOT BE SERIOUS AU CONTRAIRE, I am absolutely serious, thoroughly serious, and to a mammoth degree serious. I am PG I serious. In my classes, and in all good instructors’ classes, to goal is to have students understand the regulations, not just blindly attempt to comply without comprehension. To that end I sometimes talk about animal bites. With a picture of a tiger and of a chihuahua on the screen at the same time, I ask if anyone wants to be bitten by an animal. No one does. I then

I ask who wants to be accidentally exposed to Dangerous Goods (HazMat)? No one does. Later, we can talk about intentional exposures to aerosol deodorants, medicines, flammable perfumes and Alcoholic Beverages. But, for now, I compare animal bites to unintentional HazMat exposures. Some are worse than others; there are differing degrees of danger. A tiger bite is PG I, gasoline/petrol is PG II, while the chihuahua and hand sanitizer are PG III. The degree of danger is important, as the

ask, if you absolutely, positively had to be bitten by an animal, would you prefer the tiger or the chihuahua? A tiger could snap your spine with one bite, killing you, while the chihuahua… well the chihuahua would run back under the sofa/ couch before you could kick it in retaliation. Some animal bites are worse than others. Then,

degree of danger often dictates the performance of the packaging. Obviously, this is a serious concept. And this is where the DG regulations begin to diverge. Some regulations refer to major, medium, and minor dangers, a scale I prefer if only for the alliteration, while other regs use high, medium, and low danger. I’ll

HCB MONTHLY | JUNE 2020

concede this is an insignificant difference, but will also provide you another example to ponder. What is the PG of 85% Cumyl hydroperoxide? Assuming the proper diluent, the Organic Peroxide Tables give us UN3109, which is Organic Peroxide, liquid, Type F, 5.2. But in the DG (HazMat) regs the HazMatTable (DG Lists) don’t show a PG. Really? The organic peroxide packing instructions (and references such as IATA Special Provision A802) say that organic peroxides must be in packaging that meets the PG II performance level. As the famous tennis player John McEnroe said, “You cannot be serious!”. The packaging must be PG II, but we can’t be bothered to call the material itself PG II? How does that make sense? And it gets worse. There are other isolated examples of this problem, such as the US

UP FRONT

DOT (Department of Transportation) and Class 9 Chemical Kits. But it’s not just a small accumulation of occurrences, over the years we’ve done this for quite a many articles, from batteries to fuel cells, from engines to vehicles, from safety devices to life-saving appliances, and more. We’ve agreed, or perhaps I should say the regulators have agreed, because I don’t agree, that whenever an article requires packaging that must meet some particular performance level, PG I or II or III, we will consciously, intentionally, omit that PG from the Table/List of Dangerous Goods. Really? How does one explain to a classroom full of novice students, who are desperately trying to find and understand the underlying principles and concepts of the DG transport regulations, so that they can more effectively apply them in real life, that both chemicals and their packages both get PGs, but that for articles, we don’t allow them to have PGs even when their packaging requires it? It defies common sense. Eh, who cares about the problems of a few

hundreds of DG trainers? We’re paid to make the regulations comprehensible, or at least point out the inconsistencies (absurdities?) while saying “it may not make sense, but just do it because the regs say to”. But how about DG acceptance agents? Whether road, rail, air, or water, wouldn’t it be great to have a compliance check, even a rudimentary one, on packaging before the package gets moved? For chemicals, we have that. An acceptance agent or driver (it’s usually going by road before it gets to an airport, seaport, or rail hub) compares the PG on the paperwork to the X, Y, or Z on the drum, box, bag, or jerrican. Then they compare, at least for solids and for combination packagings, the listed weight on the shipping papers to (against) the maximum gross weight in the UN-specification mark. But for articles, the absence of a PG on the paperwork prevents an acceptance agent from knowing whether UN-specification packaging is required, and if required, whether it’s capable, both from a PG and weight standpoint.

“Don’t complain without offering a potential solution!” Yes, I’ve heard that before. Perhaps, as we now list multiple PGs in the DG Lists for some classifications, e.g., Alcohols, n.o.s. as PG I or PG II or PG III, we could list multiple PG choices for articles? Perhaps as PSN Article… n.o.s., PG none or PG II, and then require the shipping document match the appropriate entry? In the meantime, requiring a PG for a packaging but refusing to list it in a HazMat Table or on a shipping document is at best inconsistent, and, at least in my ponderings from my porch swing, at worst and quite likely, unsafe. Really? Yes, really. Don’t say I can’t be serious John McEnroe and DG regulators, because I am serious. This is the latest in a series of musings from the porch swing of Gene Sanders, principal of Tampa-based WE Train Consulting; telephone: (+1 813) 855 3855; email gene@wetrainconsulting.com.

DAVID JENKINS – 20 JANUARY 1939 TO 11 MAY 2020 The legacy of anybody is what they leave behind in thoughts and memories. David was someone who lived a full life with no apology and no regrets, a father, partner, friend and (often secret) philanthropist. David also leaves behind the amazing M&S Logistics. M&S Logistics has thrived with a backbone consistent with the values found in this London East End, Saville Row clad Englishman who retired to the wine district of South Africa. An amazing mix of long established British values, and a frontier South African mindset. These values are very much behind the M&S Values & Behaviours. It is with great pride in not only what David Jenkins started, but in also what the entire current and historic teams behind M&S Logistics represent, that we wish to confirm that the ownership structure and values behind M&S Logistics and Multistar are not going to change.

Dave Kew, Myles Jenkins, Rory Jenkins

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READY FOR ANYTHING FLEETS • GAS SHIP OWNERS HAVE BEEN ENJOYING SOME GOOD TIMES OF LATE BUT THE COVID-19 CRISIS WILL IMPACT MANY. THEY ARE, THOUGH, WELL PREPARED FOR THE FUTURE FOR SOME YEARS now, careful planning of fleet expansion and replacement on the part of the major LPG tanker operators, together with consistent growth in global maritime trade in LPG and other gases, has delivered a generally calm market with – relatively – decent returns for investors. During 2019, the arrival of new export streams – mostly, but not all, from North America – together with continued demand growth in Asia produced a firm market, particularly in the larger size segments of the gas tanker fleet. But, like all shipping sectors, LPG tankers had to face the arrival of the ‘IMO 2020’ rule on sulphur emissions, with the choice to either burn low-sulphur bunker fuel or to install exhaust gas scrubbers. It is interesting to see that the larger owners of very large gas carriers (VLGCs) have taken different approaches: BW LPG has invested in dual-fuel

engines, both on its newbuildings and, progressively, as retrofits to its existing ships; Avance Gas, on the other hand, has chosen to take advantage of scheduled drydockings for special surveys to install scrubber units. Neither option is cheap, and having ships out of service for longer than planned during a period of firm freight rates adds a further cost. But, by and large, owners appear to have navigated what seemed to portend a difficult time without too much disruption. As 2020 began, gas tanker operators were reaping the rewards of their careful management of the global fleet, with firm earnings across the board but not least in the VLGC sector, where timecharter equivalent earnings were nearly three times what they had been just a year earlier. But things were about to change, and change drastically. The emergence of the Covid-19 epidemic in China

immediately cut into demand for LPG and other gases and this was followed swiftly by the collapse in the global oil market, already over-supplied as a result of the emergence of shale oil and gas from North America but also by the fight for market share between other major producers. Added to that, the rapid spread of the Covid-19 virus around the world and the resulting lockdowns and restrictions on movement prompted further reductions in demand for all oil and gas products. PLAY WITH THE BIG BOYS BW LPG is the largest player in the VLGC sector, with a fleet of 47 vessels out of a total 294 operating ships. It notes that, up to the end of April, 12 newbuildings joined the fleet and another nine are due by the end of the year, although work restrictions at shipyards as a result of Covid-19 may delay some of them. Avance Gas, another significant presence in the sector, says that the current orderbook is equivalent to 11 per cent of the existing fleet, with 23 further ships under construction for delivery in 2021 and 2022. Avance also says that there are 27 existing VLGCs that are already 25 years of age or older; these must be considered likely candidates for demolition. However, at present the demolition market is almost non-existent, with work restrictions in place in south Asia not only removing much of the potential for demolition sales but also sharply reducing the demand for scrap steel, with a consequent impact on scrap values for old ships. Nonetheless, keeping old vessels working when there are not only IMO 2020 provisions to meet but also the requirement to manage ballast water properly means it is an expensive business. In the short term, BW LPG believes that freight rates will be supported by production changes, the winding down of high inventories in the US and firming retail demand in Asia as Covid-19 lockdown measures are eased. Looking slightly further ahead, however, the collapse in oil prices means that production is likely to be curtailed, with a knock-on effect on the availability of export LPG volumes in the US and Middle East, while the low price of naphtha in the current market means it

HCB MONTHLY | JUNE 2020

GAS TANKERS 09

becomes more attractive than LPG as a petrochemical feedstock. As a result, there is likely to be some downward pressure on VLGC utilisation during the second half of 2020 and into 2021, although a recovery in oil prices could affect this outlook positively. Aside from BW LPG, which has sold its smaller LPG carriers and is now solely focused on VLGCs, and Avance Gas, the leading operators in this sector remain Dorian LPG, many of whose vessels operate in the Helios pool alongside Phoenix Tankers and some other tonnage, trader Petredec and some major Japanese and Chinese owners. An interesting expansion among the larger ships is the arrival of very large ethane carriers (VLECs), mainly targeted at long-haul ethane and ethylene exports from the US, which use a containment system derived from LNG carriers. Evergas is moving into this sector, as is Pacific Gas.

 THE BUSINESS OF RUNNING GAS TANKERS IS HIGHLY SPECIALISED, AVOIDING INTERFERENCE FROM ASSETPLAY MONEY AND LEADING TO WHAT IS MOSTLY A STABLE AND GENERALLY PROFITABLE MARKET

ADDING PRESSURE Exmar still has some presence in the VLGC market, mostly with managed ships, although it has two 88,000-m³ newbuildings on order for its own account, for long-term charter to Equinor. Its focus, though, is on the midsize fully refrigerated sector, where it is one of the largest players, with 21 ships in the water out of a global fleet of 97. Exmar considers that, with a very limited orderbook at present and the upward trend in long-haul employment in this sector, the outlook is very promising. One company making moves in the smaller fully refrigerated segments is Eastern Pacific Shipping (EPS), led by Iden Ofer. Over the past year it has acquired three 2009-built, 59,000-m³ vessels from Neu Gas and taken delivery of two 37,300-m³ newbuildings from Hyundai Mipo. EPS recently placed an order for three more midsize gas ships at Hyundai Mipo against

the way towards decarbonisation by emitting significantly lower greenhouse gases and will be IMO-compliant years ahead of schedule. The construction and management of these vessels firmly place EPS and Equinor at the forefront of the shipping industry’s agenda to preserve the environment for future generations,” EPS says. Navigator Gas is another operator in the smaller end of the fully refrigerated segment, but its main focus is on larger semipressurised/fully refrigerated (SP/FR) tankers, termed Handysize, and particularly on those capable of carrying ethylene and ethane, which both require much deeper refrigeration than LPG. In this sector it has recently established the Luna Pool with Pacific Gas and Greater Bay Gas, which became operational in the second quarter with an initial seven ships. At the end of May there were 12 ships entered in the pool,

a charter with Equinor, which will be fitted with dual-fuel propulsion capable of running on LPG. EPS says this is in line with its Environmental, Social and Governance Policy, which calls for the use of alternative fuels as a way of reducing its carbon footprint. “These state-of-the-art vessels will pave

of which nine were carrying ethylene, two ethane and one propylene, and it is expected that the pool will expand to 14 vessels altogether. Navigator reports that propylene was exported from the US for the first time in more than a decade in May, for shipment to the Far East.

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Navigator Gas also reports that the Handysize sector has been less sharply affected by the Covid-19 crisis than the larger ship segments; most of the LPG these ships carry caters to domestic demand (largely in Asia), which has so far held up well, and the Handysize market is less vulnerable to global price arbitrage movements than VLGCs. As a result, Navigator says, while freight rates this year have been volatile in the larger size segments, the Handysize timecharter index fell by only 5 per cent during the first quarter. Navigator has also made moves to lock into new US export volumes through investment in a joint-venture ethylene export terminal at Morgan’s Point in the Houston Ship Channel, in partnership with Enterprise Products Partners. Although this was affected by the Covid-19 lockdown, exports recommenced in May with cargoes moving around the world. “These deepsea petrochemical trades provide robust tonne-mile demand to the segment,” Navigator says.

 OPERATORS OF SMALL FULLY PRESSURISED LPG TANKERS SHOULD CONTINUE TO ENJOY FIRM EARNINGS ON THE BACK OF STRONG DEMAND AND A VERY SMALL NEWBUILDING ORDERBOOK

HCB MONTHLY | JUNE 2020

Navigator’s main competitors in the ethylene trades are Anthony Veder, GasChem, Lauritzen Kosan and the Unigas consortium, although all of these have a focus on smaller ships, mainly trading regionally. SMALL AND TIGHT The dominant players in the fully pressurised (FP) sector are Epic Gas, which is now owned by BW LPG, and StealthGas. Epic Gas currently operates 44 of the 335 FP vessels in the global fleet (over 3,000 m³ and excluding those operating in domestic trades in Japan and China). It notes that the current orderbook is very low, equivalent to just 4 per cent of the active fleet, while the orderbook for SP/FR ships in the same size range comprises only three newbuildings. Together, these 18 ships on order are outnumbered by the 34 ships currently trading that are aged 28 years or older and are likely candidates for demolition once the scrapping market opens up again. FP ships have benefited from the continued rise in US LPG exports, handling some 170,000 tonnes in the first quarter of 2020, compared to around 75,000 tonnes in the same period 2019. Most of that volume is for export to the Caribbean or Latin America, although since the second quarter of 2019 FP ships have also been used to carry LPG from the US to West Africa. FP ships can also carry a range of

petrochemical gases, although in these markets Epic Gas reports that Chinese imports of propylene and VCM in particular were sharply down in the first quarter of this year compared to the prior period, and ethylene imports were also well down on the first quarter 2019. Epic Gas currently has a quarter of its fleet operating in Asia. StealthGas has a fleet of 46 LPG carriers, including eight owned under joint ventures and one 11,000-m³ newbuilding due to join the fleet in 2021. Over the past year it has reduced its fleet through disposals and in the first quarter of 2020 achieved operational utilisation of 98 per cent. That figure would have been higher but for a technical fault that took one ship out of the market for three weeks. HCB’s annual listings of the LPG tanker fleets on the following two pages includes the latest available data from the owners and operators mentioned. Readers should be aware that there is an element of doubleand even triple-counting, as some ships included in an owner’s fleet may also appear in a charterer’s fleet and possibly in a pool fleet as well. The lists do not include a number of other large domestic fleets, particularly in Japan, South Korea and China, nor inland/coastal vessels employed in the US, Europe and China.

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MAJOR FULLY PRESSURISED AND SEMI-REFRIGERATED LPG TANKER FLEETS, MAY 2020 Number of ships FP FP SP/FR SP/FR <3,000 >3,000 <10,000 >10,000

Total capacity (m3)

Average age

Anadoluhisan 1 2 28,820 14 Anthony Veder 23 5 188,070 14 B-Gas 7 7 47,684 14 Benelux Overseas 4 5 111,865 20 Carboflotta 2 36,000 21 Chemgas Shipping 6 5 32,278 11 Daelim Corp 16 64,591* 16 Eletson Gas 14 282,038 6 Epic Gas 44 320,900 10 Evergas 6 8 250,000 6 Exmar 10 1 51,846 13 GasChem Services 2 13 10 337,903 14 Geogas Trading 24 9 355,100 14 Harpain Gas 6 101,000 14 Hartmann Gas Carriers 5 14 6 273,600 14 Hyproc Shipping 6 141,000 8 Iino Gas Transport 17 4 1 49,230 14 Iwasaki Kisen 6 7,463 18 KSS Line 4 15,500 16 Kumiai Navigation 2 9,842* 1 Lauritzen Kosan 6 24 6 249,996 13 Lumaship 4 12,526 15 Mitsubishi Chemical 4 6,209 14 Naftomar 5 5 3 132,225 13 Navigator Gas 31 722,553 10 Nippon Gas Line 18 3 40,938 13 Odfjell Gas 2 17,844 12 Pacific Gas 5 100,000 2 Paradise Navigation 2 3 38,000 6 Petredec 10 8 256,955 7 SCF Group 2 41,200 7 Schulte Group 1 6 6 149,775 14 Shinomiya Tanker 3 5,320 21 Sloman Neptun 10 4 114,447 15 Solvang 9 166,156 9 Stealthgas 38 5 319,800 12 Teekay Gas 4 4 71,728 13 Transgas (a) 6 2 1 57,032 23 Ultragas 6 12 255,505 9 Unigas 1 22 14 328,058 13 Wideshine Enterprises 3 6 28,017 14

Notes

Includes 16 LEGs, 6 LEG/LNGs; also 4 LNGs

Plus large inland fleet

Owned by BW LPG Plus one VLEC 22 SRs are ethylene-capable 2 FPs on order 5 are ethylene-capable 17 are ethylene-capable Mostly coastal vessels Japanese coastal ships

19 LEGs, 2 LEG/LNGs Japanese coastal ships

Mostly Japanese trades Ethylene; due to be sold Ethylene carriers

7 ethylene carriers 10 ethylene carriers All ethylene carriers

8 are ethylene-capable Schulte/Sloman/Ultragas Chinese domestic trades

*dwt (a) 2019 data

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MAJOR FULLY REFRIGERATED LPG TANKER FLEETS, MAY 2020 Number of ships <40,000 40-70,000 >70,000 Anthony Veder Astomos Energy Avance Gas Benelux Overseas BW LPG Carboflotta Dorian LPG Eastern Pacific Evergas Exmar GasChem Services Geogas Trading Hartmann Gas Carriers Helios LPG Pool Idemitsu Tanker JX Ocean ‘K’ Line (a) KSS Line Kumiai Navigation Kuwait Oil Tanker Co Latsco Naftomar Nakilat Navigator Gas Neu Gas NYK Line (a) Pacific Gas Petredec Phoenix Tankers Prime Marine SCF Group SK Shipping Solvang Teekay Gas Thenamaris Transpetrol Unique Shipping Zodiac Maritime

*dwt figure (a) 2019 data

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1 4 8 21 3 10 4 2 3 4 7 1 5 6 2 1 21 4 2 3

3 5 2 1 1 9 -

Total capacity (m³)

Average age

35,000 18 21 14 1,165,200 8 4 306,074 24 47 3,815,539 10 152,000 12 22 1,842,000 7 469,796 7 1 83,757 1 8 1,460,486 9 105,548 10 5 1,073,500 10 146,000 8 35 2,675,796 6 4 216,954* 9 12 626,159* 11 5 480,573 9 8 774,000 6 5 264,926* 6 5 408,588 6 8 783,904 6 3 335,587 13 4 329,770 12 173,000 9 3 232,332 12 10 517,853* na 9 747,353 7 27 2,536,564 7 8 660,499 11 204,716 12 70,000 14 6 329,441* 9 8 1,213,100 9 1 872,561 10 152,000 3 3 248,793 7 5 485,614 12 2 265,956 12

Notes

Company statement 2 nb on order

3 midsize on order VLEC; 1 more due 2 x 86,000 on order Hartmann vessels

Dorian/Phoenix pool

5 nbs due 2021 2 nbs due 2021/22

2x99,000 VLEC nbs

Also coastal FP ships

GAS SHIPPING 13

LBG reduces greenhouse gas emissions by up to 85 percent compared to fossil fuels.

PREEM HAS SIGNED an agreement with Gasum to supply Preem’s shipping fleet with a new fuel mixture consisting of LNG and 10 per cent renewable liquid biogas (LBG). Use of this fuel will achieve further reductions in greenhouse gas emissions and marks another step towards Preem’s goal of being climateneutral in 2045. This is also the first agreement under which Gasum will deliver bunker fuels comprising a mixture containing renewable elements to a shipping customer on a regular basis. The

“Marine transport is an important part of Preem’s operations. We are very pleased to be able to introduce renewable liquid biogas into the fuel mix. This opportunity is in line with our ambitious goals of becoming climate neutral in 2045,” says Anna Karin Klinthäll, manager of trading operations at Preem. The use of LNG as a marine fuel instead of conventional fuels such as heavy fuel oil significantly reduces emissions. It improves local air quality and reduces greenhouse gas emissions by up to 20 per cent compared

GOING EMISSION-FREE “Gasum is determined to work for a carbonneutral future and help our customers reduce their carbon footprint by providing cleaner energy. We look forward to supporting Preem in their pursuit of greener shipping and in particular their vision of leading the transition to a sustainable society,” says Jacob Granqvist, sales director maritime at Gasum. Preem is Sweden’s largest fuel company with a refining capacity of over 18m m³ of crude oil per year at its sites in Göteborg and Lysekil. It processes and sells gasoline, diesel, heating oils and renewable fuels to companies and individuals in Sweden and other countries. Nearly half of Sweden’s industrial companies and a third of small businesses receive heat and energy from Preem, which also has a nationwide network with approximately 570 service stations for private and professional traffic. Gasum is a leading player in LNG in the Nordic market and continues to build its infrastructure network for the production, supply and distribution of LNG for the shipping, industrial and heavy goods transport sectors in Finland, Sweden and Norway. Together with its partners, Gasum says it is building a bridge to a carbon-neutral society on land and at sea. This past March Gasum, which is wholly owned by the Finnish state, set up a joint project with Deltamarin and Wärtsilä to look into ways of further reducing emissions from maritime activities, in order to help meet the IMO targets of massive emissions reductions by 2050. As Gasum says, ship emissions are related to the fuels that are

fuel will be supplied to two chartered product tankers, Tern Ocean and Thun Evolve.

to conventional fuels. LNG is the most environmentally friendly of fossil fuels and meets both current and long-term environmental requirements set by the International Maritime Organisation (IMO). By using renewable LBG, it is possible to further reduce greenhouse gas emissions.

burned but also to some extent to the type and design of engines. The partners are in particular looking at ways of using digitised systems to monitor and control marine engine operations and reduce emissions. www.gasum.com www.preem.se

GREEN GAS SHIPPING FUELS • SWEDISH FUEL MAJOR PREEM HAS SIGNED UP GASUM TO PROVIDE AN EVEN MORE ENVIRONMENTALLY FRIENDLY FUEL FOR ITS VESSELS

 GASUM AIMS TO HELP PREEM BECOME CLIMATE NEUTRAL BY 2045

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KIRBY GETS A GRIP INLAND SHIPPING • KIRBY CORP’S FIRST QUARTER FIGURES TELL US A LOT ABOUT THE EFFECTS THE COVID-19 CRISIS AND OIL PRICE COLLAPSE ARE HAVING ON THE US OIL PATCH INLAND AND COASTWISE transport of petroleum and petrochemicals are crucial to the effectiveness of the US oil sector. As that

demand, our barge utilisation levels started to decline in mid-April.” Kirby’s Distribution & Services division was

sector has been impacted both by the Covid-19 pandemic and by the sudden collapse in oil prices, those involved in the tank barge sector have faced immediate and drastic challenges. Those challenges are ongoing but, as operators report on their first quarter, there are signs that it has not all been bad. For instance, David Grzebinski, president/ CEO of Kirby Corporation, the largest operator of inland and coastwise oil and chemical barges, observes some upside. “Kirby started the year with improving market conditions in our marine businesses and stable conditions in distribution and services,” he says. “Most of the first quarter was solid, but as the Covid-19 crisis deepened and energy prices collapsed, business activity levels declined in distribution and services. “In the first quarter in marine transportation, despite poor seasonal operating conditions, our inland marine business had strong activity with elevated demand, high barge utilisation levels, and increased pricing for both spot and term contracts. Similarly, tight market conditions in coastal resulted in good barge utilization and improved spot and term contract pricing,” Grzebinski says. “Since the onset of the Covid-19 pandemic, marine activity has remained relatively strong with many customers using incremental barges to ready their supply chains, store products, and relocate inventories. However, with many refineries and some chemical plants curtailing production in response to lower consumer

more immediately impacted by the oil price collapse, with Grzebinski observing that the segment “experienced sequentially improved levels of activity in the early part of the quarter, with higher volumes of oil and gas related transmission sales and service, as well as some construction of new pressure pumping equipment. However, these encouraging trends reversed in March as oil prices rapidly declined and our major oilfield customers announced significant reductions to their 2020 activity and capital spending plans.”

 KIRBY CORP IS STILL SEEING STRONG DEMAND FOR ITS INLAND AND COASTAL BARGE SERVICES

HCB MONTHLY | JUNE 2020

VOLATILITY EXPECTED For the first quarter, Kirby’s marine transportation activities generated revenues of $403.3m, up 9.6 per cent year-on-year, with operating income rising from $35.4m to $50.7m. In the inland market, while average barge utilisation was in the low to mid-90 per

cent range over the quarter, activities were hampered by unfavourable operating conditions: poor weather, including fog and wind along the Gulf coast and flooding on the Mississippi River, as well as lock closures on key waterways. Spot rates improved, as did term contract rates on renewals. In the coastal market, barge utilisation rates were in the low to mid-80 per cent range during the quarter, with spot and term contract rates up by between 10 and 15 per cent compared to first quarter 2019. Despite this bright start to the year, Kirby is taking a cautious approach to the year as a whole. Grzebinski explains: “Our businesses are dealing with very volatile market conditions. During this time, we are managing this situation day-by-day with an intense focus on the health and safety of our employees, seamless operations, and uninterrupted customer service. Additionally, we are aggressively reducing costs, lowering capital spending, and focusing on cash flow.” Grzebinski does, though, expect 2020 to be a “solid year” for Kirby’s marine business, despite the obvious challenges: “Although we anticipate a decline in volumes and barge utilisation, we believe as in past cycles that our marine customer contracts and the variable nature of our cost structure will help to minimise the impact on our operating margins.” kirbycorp.com

TANKER SHIPPING 15

GRAB AND GO CHEMICAL TANKERS • SWING TONNAGE IS WORKING HARD IN CPP SO CHEMICAL TANKER OPERATORS HAVE THE CHANCE TO TAKE ADVANTAGE, AS ODFJELL’S LATEST RESULTS REVEAL WITH TURBULENT OIL and commodity markets and the downstream demand effects of Covid-19, many logistics firms have started 2020 very badly, but that has not been true of the chemical tanker sector, if Odfjell’s first-quarter results are any reliable indication. Revenues were up 10 per cent on the previous year at $240.2m and EBITDA rose from $39.7m to $57.8m. “The improved results are driven by higher spot rates and the impact from increased rates on renewed and new contracts of affreightment (COAs),” the company says. Higher bunker costs, up 25 per cent on the fourth quarter 2019, were more than offset by these higher rates and, Odfjell says, the impact of Covid-19 was limited to its regional fleet in Asia. “Heightened volatility and uncertainty in our markets has shown the importance and resilience of our global platform,” Odfjell says. “We are utilising the flexibility of our vessels through cargo consolidation to secure best possible utilisation and also release capacity to target higher paying cargoes within bulk chemicals, vegoils and clean petroleum products (CPP).” Indeed, it is the strength in the CPP market in recent months that has pulled swing tonnage out of the chemical markets that has helped support rates for sophisticated tonnage. On the other hand, the uncertainty delivered by the Covid-19 pandemic has presented some challenges, particularly through the closure of some ports, which has made voyage planning and cargo discharges unpredictable, along

in construction of tanker newbuildings at the Hudong yard in China, although work has now restarted. STRONG AT HEART The fundamentals of the chemical tanker market have remained strong, Odfjell says, with firm demand outstripping slowing net fleet growth. The global chemical tanker orderbook now stands at a respectably modest 4.9 per cent of the active fleet; during the quarter, ten new vessels were delivered and one scrapped, with three new orders placed. Odfjell warns, however, that the Covid-19 pandemic could yet have an impact on demand for chemical tankers, as the effects on the global economy filter through. During the lockdown, there have been higher chemical exports from some regions and, with Asia

expected to recover more quickly than the western hemisphere, Odfjell says it expects long-haul shipments to Asia to “provide some downside protection to tonne-mile demand”. Overall, demand for many chemicals remains strong, other than in the construction and automotive sectors, and the pace at which these industries recover will likely determine the duration of the slowdown in chemical demand. The collapse in world oil prices has also benefitted many chemical manufacturers, although US producers have seen their competitiveness affected; however, Odfjell says, current prices remain supportive for a recovery in exports when demand returns. The crude oil and product tanker markets are strong and expected to remain that way, particularly as a significant share of these fleets have been fixed on long-term storage contracts. This points to a further reduction in swing tonnage looking for chemical cargoes. “We still expect tonne-mile demand to continue to grow, although at a reduced rate of 2 to 4 per cent on average until 2022, depending on the outcome of the pandemic,” Odfjell says. “This compares to a supply growth of 1 per cent on average in the corresponding period.” www.odfjell.com

with the impossibility of performing regular crew changes. There has also been a delay

 ODFJELL HAS HAD TO BE NIMBLE TO ADAPT TO CHANGES IN CHEMICAL TANKER DEMAND

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OVER TO YOU FLEET • TEAM TANKERS IS HANDING OVER MANAGEMENT OF MUCH OF ITS FLEET IN A BID TO IMPROVE FLEXIBILITY AND VESSEL UTILISATION TEAM TANKERS INTERNATIONAL has struck two deals to outsource management of much of its chemical tanker fleet, both of which were announced on the same day. “The two partnerships should improve trading performance, reduce costs and increase our flexibility for additional divestment and investment activity,” explains Hans Feringa, president/CEO of Team Tankers. In the first deal, Team Tankers has established a joint venture with Maersk Tankers, which has taken over commercial management of 27 vessels and established two new pools. “The cooperation is a further step towards building scale for our tanker fleet,” says Feringa. “We believe the timing of the cooperation is good as the medium and longer-term outlook for the product and chemical tanker market is positive, and the order book is at a historically low level.” Of the 27 vessels transferred to Maersk’s management, nine are 13,000-dwt tankers,

HCB MONTHLY | JUNE 2020

four are ‘Flexis’ in the 25,000-dwt range, and 14 are MR tankers of 46,000 to 49,000 dwt. The move takes Maersk into two new segments, necessitating the establishment of two new pools. It will also allow greater flexibility in deployment. “The cooperation between Team Tankers International and Maersk Tankers is powerful, and we look forward to welcoming our new colleagues,” says Claus Gronborg, chief investment officer at Maersk Tankers. “With this, we are taking yet another step to deliver our strategy of building scale through partnerships forged by the common goal of using digitisation to reduce CO² emissions and increase partner returns. The growth in capacity means we can offer our customers additional flexibility in transporting their cargoes and improve our returns to existing and new pool partners.” In the second deal, Team Tankers has set up a joint venture with V Ships, Dania Ship Management, in which Team will hold 30 per cent, and has added 10 MR tankers and two 25,000-dwt coated tankers to the 21 already under the technical management of V Ships. “The joint venture will benefit both parties by bringing together the valuable technical and crewing organisation from Team together with V Group’s global reach and expertise,” Team

Tankers says. “Team will have access to the groundbreaking IT system ShipSure developed by V Group that will enhance safety and efficiency, and the JV will also provide procurement advantages to Team from the scale of V Group.” HOW IT FIGURES In financial news, Team Tankers has reported first quarter EBITDA of $16.5m, up from $14.0m a year ago, with net income of $1.4m, compared to a loss of $7.9m in first quarter 2019. The freight market continued to improve during the quarter, with average timecharter equivalent earnings rising from $12,348/day in fourth quarter 2019 to $13,812/day, although following some vessel disposals through sale and redelivery, total trading days and cargo volumes both fell by some 10 per cent. Since the end of the quarter, Team Tankers has continued to trim its fleet, completing the sale of Team Toccata (45,000 dwt, 2004) and redelivering the chartered Tintomara (45,000 dwt, 2003) at the end of its lease. Team notes that, during the first quarter, the Covid-19 outbreak had some impact on demand for its coated tankers working in Asia and warns that, while developments are still unclear, it expects further impact on its performance across the fleet over time. On the other hand, the collapse in global oil prices has led to a strong underlying demand for tankers. teamtankers.com

TANKER SHIPPING 17

PUMP IT UP PUMPS • MODERN DEEPWELL CARGO PUMPS CAN HELP SHIPOWNERS ACHIEVE THE EMISSIONS AND EFFICIENCY TARGETS THEY SEEK, AS FRAMO’S LANDMARK DELIVERY ILLUSTRATES THE ARRIVAL OF a new ship in any fleet is a big event and so it was that the usual celebrations attended the delivery last month of Saltstraum, the third in a series of four chemical tankers built by AVIC Dingheng in China for Norwegian owner Utkilen. As befits the modern chemical tanker, the new 10,500-dwt tanker, which like its sisterships features stainless steel in its 14 cargo tanks, is also equipped with the latest innovations to improve efficiency and reduce emissions. This includes the

running on LNG, as well as the potential to install a battery pack to run the ship on clean electricity. This means that, compared to older comparable vessels, Saltstraum will emit 30 per cent less carbon dioxide and 80 per cent less nitrogen oxides. It also has the potential for zero-emissions operations at the quayside, using shore power for loading and unloading. “We are incredibly proud to take delivery of these newbuildings, which represent the future of chemical tankers. The ships will

use of a dual-fuel engine, capable of

sail along the Norwegian coast for many years to come,” notes Leif Larsen, Utkilen’s newbuilding director.

 UTKILEN’S CEO, SIRI-ANN MJAATVEDT, CELEBRATES THE LATEST ARRIVAL WITH MARTIJN BERGINK, CEO OF FRAMO

MAKE THE CONNECTION While the delivery marked a big day for Utkilen, it marked an even bigger day for

cargo pump supplier Framo, as this was the 4,000th vessel to use Framo pumps. The company, based in Bergen like much of the chemical tanker community, has been delivering pumps for chemical and product tankers since the late 1960s and has set the standard for marine cargo pumping. But it is keeping up to date and following the latest technical developments towards emissions reduction. “Although sea transport is one of the most eco-friendly alternatives for freight, it is always positive when shipping companies take the lead to make shipping even greener in connection with fleet renewals,” says Framo’s CEO Martijn Bergink. “We are very happy to note how Framo’s solutions can also help save on fuel. Our pumping systems allow the crew to get the cargo ashore quickly, followed by a quick and efficient cleaning process, so that the ships can soon be on their way with a new cargo on board.” “Although the vessels are built in China, most of the equipment comes from Norway and Europe, such as the Framo pumps. These ships are a long step towards the IMO 2050 targets”, adds Larsen. Following the delivery of Saltstraum, Utkilen now has 19 ice-class chemical tankers in the water, with one further newbuilding due to join the fleet later this year. Its ships range in size from 6,000 dwt to 20,000 dwt and trade largely in northern Europe. It also has four modern 20,000-dwt stainless steel chemical tankers operating globally in the Stream fleet. Framo, headquartered in Askøy just outside Bergen, was founded in 1938 and since 2014 has been part of Alfa Laval’s Marine Division. It employs some 1,300 people around the world. In addition to cargo pumps for tankers, it also supplies pumps for applications in firewater, slop and ballast water, and the upstream oil and gas industry. www.framo.com www.utkilen.no

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NEWS BULLETIN

TANKER SHIPPING

WOMAR WELCOMES CHEMBULK

Chembulk Tankers has placed its entire fleet into commercial pools managed by Womar Logistics. Womar assumed commercial management of the vessels at the end of March, with the transition expected to be complete by the end of May. “Chembulk’s commercial shift to the Womar chemical pools places our quality vessels in an established and growing revenue sharing platform, providing commercial efficiencies, logistics flexibility and a seamless continuation of the performance our customers expect from Chembulk vessels,” says Chembulk CEO Bart Kelleher. “This is an exciting development for Womar as it demonstrates both our focus on growth and our ability to provide solutions for shipowners,” adds Jake Scott, managing partner of Womar’s parent, FDX Offshore. “With this deal, Womar establishes an important footprint here in Connecticut as we seek to expand into new markets.” Hans van der Zijde, CEO of Womar Logistics, says the move is “the first of many major growth initiatives underway” following the acquisition of

Womar by FDX in September 2019. “Womar is hyper-focused on leveraging its stellar existing platform and reputation to build the best-in-class global independent pool player,” he adds. As a result of the arrival of the Chembulk fleet, Womar has established a new unit, Orca Pool, consisting of IMO II chemical tankers in the 32,000 to 37,000-dwt size range. This complements its existing Marida (10,000 to 14,000-dwt) and Stainless (19,000 to 25,000-dwt) pools. It will also open a fifth office in Stamford, Connecticut to expand its coverage in the Americas. chembulktankers.com www.womarpools.com THUN DOUBLES UP

Thun Tankers has ordered a second ‘NaabsaMax’ IMO II product/chemical tanker. The 4,250-dwt design is designed to be “not always afloat but safely aground” and for use in tidal restricted niche ports. As with the first vessel ordered, the new tanker, due for delivery in May 2022, will work under a long-term deal with UK-based Geos Group.

“With two high quality NaabsaMax size tankers we can offer increased flexibility in this niche segment. These tankers will be built to the absolutely latest design, enabling Geos Group Ltd and their clients access to the most efficient and sustainable transport solution available in this segment,” says Joakim Lund, CCO of Thun Tankers. “As a company we are very confident that our long-term partnership with Thun Tankers will provide us with a fleet of versatile tankers to carry on providing our clients with the service that is required,” adds Barry Newton, managing director of Geos Group. “To have two NaabsaMax vessels at our disposal will mean that we are able to grow our position in the market and continue to provide shipping solutions that make us more versatile for our customers, offering flexibility and access to niche ports around the UK, as well as ensuring our fleet is current and at the forefront of design.” The two new ships are being built by Scheepswerf Ferus Smit in the Netherlands, with which the Erik Thun Group has a long-standing relationship spanning more than 35 newbuildings. The first of the pair is due for delivery later this year. thuntankers.com MOL AND NORDIC UNITED

MOL Chemical Tankers has fully integrated the MOL Nordic Tankers operation, acquired in January 2019, into its organisation, with all Nordic business units now renamed and united under the MOL Chemical Tankers brand as MOL Chemical Tankers Europe, MOL Chemical Tankers America and MOL Chemical Tankers Colombia. “Uniting network, activities and resources of the two companies under one brand puts the MOL Chemical Tankers Group in a strong competitive industry position, where we will be able to service an even wider range of customer segments and to expand our commercial and operational activities to the benefit of our

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TANKER SHIPPING 19

3,000 dwt to 50,000 dwt, all with zinc-coated tanks designed for the carriage of methanol without contamination. Its latest deliveries are fitted with two-stroke dual-fuel engines capable of running on methanol. These include the Iino Lines-owned Creole Sun (49,000 dwt), delivered in December 2019, and the sistership Takaroa Sun, owned by NYK Line, which arrived in the fleet this past November. Both were built by Hyundai Mipo. www.wfs-cl.com LUNA POOL FOR ETHYLENE

customers,” says Tsuneo Watanabe, CEO. Watanabe is set to step down in June; current COO Akio Mitsuta will take over as CEO and managing director. At the time of the acquisition of Nordic Tankers from Triton, it was noted that the two shipping companies had a similar focus, both running fleets of stainless steel multisegregation chemical tankers and with focus on contracts of affreightment. MOL Chemical Tankers had 56 tankers in deepsea operations worldwide, together with six smaller vessels operating in south-east Asia, while Nordic had 19 deepsea tankers mainly in the transatlantic and Latin America trades. www.molchemtankers.com ODFJELL GETS THE SET

Odfjell has taken delivery of Bow Optima, the last in a series of four 49,000-dwt newbuildings from Hudong-Zhonghua. The vessel has 33 segregated cargo tanks in Duplex 2205 stainless steel and features a number of fuel efficiency enhancements developed by Odfjell in recent years. “Bow Optima and her sister ships represent a big leap forward when it comes to optimising vessels for more energy-efficient and ecofriendly shipping,” says Odfjell CEO Kristian Mørch. “These vessels are tailor-made for the

worldwide chemical tanker market, and add highly sophisticated tonnage to our most important trades. The first vessel entered into trade eight months ago, and the experiences so far have met all our ambitious targets.” The Covid-19 crisis and resulting travel restrictions led to what Odfjell calls “unforeseen challenges in the final phase of construction”, and while the ship’s first master, Captain Marius Løftingsmo, and his management team were on the vessel quickly, they had to wait until restrictions were eased to be joined by the maiden crew. www.odfjell.com MORE METHANOL FOR WATERFRONT

Waterfront Shipping is to expand its fleet of dedicated methanol tankers, following the placement of a seven-ship order at Hyundai Mipo by a consortium of owners. The 50,000dwt tankers, which together are reported to be costing some $300m, have been ordered by Marinvest, NYK Line, Meiji Shipping and Mitsui OSK Lines (MOL) under long-term contracts with Waterfront. Deliveries are due to start in late 2021 and run to early 2023. Waterfront Shipping, a wholly owned subsidiary of Methanex Corp based in Vancouver, Canada, currently operates a fleet of 30 deepsea tankers ranging in size from

Navigator Holdings, Pacific Gas and Greater Bay Gas have formed a Handysize gas tanker operation, Luna Pool, to focus on the transport of ethylene and ethane, as well as other petrochemical gases. The partners will put 14 vessels into the pool, ranging in size from 17,000 m3 to 22,000 m3. Operational management will be led from the Navigator Gas office in London, with support from its partners’ existing offices in Singapore, Shenzhen and Shanghai. “With the successful commencement of our joint venture ethylene export terminal at Morgan’s Point, Houston we are seeing an increased demand for shipping gaseous products worldwide,” notes Dr Harry Deans, CEO of Navigator Gas. “To better serve our existing and new customers as a result of this structural change we have decided to expand our presence in the seaborn transportation of ethylene through this strategic partnership.” “There has been strong demand for ethylene imports into Asia and this trend is expected to continue,” notes Greater Bay Gas. “Long-haul ocean transportation of ethylene and ethane, in particular, from the US is increasing. Greater Bay Gas entered into a strategic partnership with Pacific Gas and has been operating a fleet of ethylene carriers since 2019. We are pleased to participate in the Luna Pool and believe that with the combined fleet, as well as offices and teams from both West and East, the Luna Pool will deliver significant synergies to the partners as they optimise global market opportunities whilst providing customers with seaborne transport services in a more efficient and reliable manner.” www.navigatorgas.com

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TAKE IT FROM THE TOP SAFETY • THE FACT THAT DRIVERS ARE SOMETIMES REQUIRED TO ACCESS THE TOP OF A TANK CONTAINER RAISES SIGNIFICANT RISKS. ITCO HAS DESIGNED SOME GUIDANCE TO HELP GOVERNMENTS HAVE BEEN regulating health and safety in the workplace for well over a century now, so it is disappointing to see that there are many industrial facilities that fail to take their duty of care seriously. Enforcement agencies, while on the one hand keeping a close eye on process safety management in the high-hazard industries, are also constantly warning of the risks of slips, trips and falls in the work environment, which cause any number of minor and more serious injuries – and even death. One area where accidents happen too often, and has proven difficult to address – perhaps because addressing it involves spending money – is the risk of people falling from height when

undertaking operations involving vehicles, usually (but not always) at third-party facilities. It seems bizarre under the prevailing health and safety at work legislation in many jurisdictions that drivers visiting a site to load product are being expected to clamber on top of a road tanker, tank container or other vehicle in order to carry out the loading. For a start, they are trained to drive and, if they are carrying dangerous goods, trained to know what to do in the case of an emergency. They are not trained to operate equipment at other sites and nor are they necessarily trained in the precautions that they must take when handling different dangerous goods.

Yet this is just what is happening at facilities all around the world, despite the fact that in most places these facilities have a duty of care not only to their own employees but also to anyone visiting their site, whatever their role. This is despite the threat of heavy fines or, in some parts of the world, corporate manslaughter charges in the event that someone dies while working on their property. This threat seems to be outweighed by the cost of installing proper safety equipment. USE THE EQUIPMENT Perhaps one cause of this apparent blindspot is that tank containers and road tankers are normally fitted with a ladder at the rear and a walkway along the top, inviting the idea that they are there to be used. But, as a new publication from the International Tank Container Organisation (ITCO) says, working on top of a tank container should be the last resort and, if possible, should be eliminated altogether. ITCO’s Guidance for working on top of a tank container sets out the legal position as regards working at height and is designed to assist companies in undertaking the risk assessment needed to ensure safe work, whether that is on top of the tank or on the ground. As ITCO explains, tank containers are primarily designed for filling and discharge at a shipper’s terminal facility that is equipped with permanent top access gantries. The tank container is fitted with a ladder and top walkway only as a secondary provision, in recognition of the occasional need for personnel to gain access to the top of the tank for other reasons. The guidance document details the specifications for the tank-top walkway and the ladder, highlighting the issues experienced by personnel during the transition from the ladder to the walkway. It also looks at the use of collapsible guard rails which, ITCO says, “are not recommended as an alternative to terminalinstalled on-site fall protection systems”. However, when used, such guard rails should meet the relevant standards (ISO 1496.3 and EN 13374) and should be designed in such a way as to provide effective fall protection on all sides of

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TANK CONTAINERS 21

the work area. When not in use, the guard rail must be stored within the ISO frame dimensions and should be secured with an automatic fail-safe safety catch: if the rail inadvertently lifts during transport it can cause severe problems. WHO DOES THE WORK? One alternative that helps avoid the need for anyone to work on top of a tank is the use of bottom filling and discharge; the only issue is that the ‘airline’ vapour valve, normally fitted on top of the tank, needs to be opened to allow the tank to vent as it is filled. It is possible to install remote units to allow this valve to be opened from ground level, or the airline can be piped to the bottom of the tank. Which raises the question: who should be operating the tank during the loading or discharge? Is it the driver, whose job it is to drive, or the facility personnel, whose responsibility it is to operate the site? ITCO is clear: the tank container operator and its employees provide a logistics

 DRIVERS SHOULD CERTAINLY NOT BE ASKED TO WORK ON TOP OF A TANK CONTAINER AND ANY PERSONNEL WHO DO DESERVE TO HAVE PROPERLY INSTALLED AND EFFECTIVE FALL PROTECTION

service, delivering the tank to and from the shipper’s facility. When it is at the shipper’s or receiver’s facility, the tank should be ‘operated’ by the terminal personnel, who should be responsible for the filling and discharge process, as well as sampling. These personnel should be fully trained and qualified in those activities, as well as in safety in working at height. “The tank logistics operator’s personnel, including any contracted personnel such as a truck driver, should not be involved in the filling and discharge of the tank at the shipper’s terminal,” ITCO’s guidance states. A contract should exist (and is possibly assumed to) between the facility and the tank operator or sub-contracted haulier, setting out the terms and conditions that apply to any activity required by the terminal and agreed by the tank operator. However, ITCO recognises that, in some countries, trucking company personnel may be asked to carry out tasks at the loading or discharge terminal, which might involve

OPTIONS AVAILABLE ITCO’s guidance document goes on to discuss the various types of gantry and fall arrest systems available, with the pros and cons of each. It also looks at the specific situations applicable at tank repair depots, tank cleaning stations and inspection facilities. Specific comments are given relating to interior access – and ITCO is planning some further guidance on tank entry, due to be published shortly. Examples are given of the types of fixed and mobile inspection gantries, mobile ladders with pulpit, mobile stairs and access platforms, fall-arrest body harnesses and repair yard ladders. The guidance document concludes with an example of the items that need to be considered during a risk assessment, along with a hierarchy of controls. This starts from the assumption that tank top working should be eliminated and that procedures should be reviewed to determine the possibility that a process change could be introduced to ensure that all tasks are undertaken at

working on top of the tank. In such cases there should be a risk assessment and appropriate function-specific training. Tank operators should not instruct contracted drivers to undertake operational tasks at the terminal site, as they are not fully trained or qualified to do so.

ground level. ITCO’s Guidance for working on top of a tank container, number TG04 in its series of technical guides, is available from the ITCO website free of charge at www.international-tank-container.org/ storage/uploads/ITCO_Guidance_for_working_ on_top_of_a_tank_container.pdf.

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READY FOR THE FIGHT RESULTS • SUCCESSFUL INTEGRATION OF RECENT ACQUISITIONS HELPED BOOST VTG’S 2019 FIGURES TO RECORD LEVELS. IT IS NOW FACING THE CORONAVIRUS OUTBREAK WITH CONFIDENCE VTG AG HAS reported the best financial results in its history with 2019 revenues up 14 per cent year-on-year at €1.22bn and EBITDA ahead by 47 per cent at €512m. The disproportionately strong increase in earnings compared to revenue is due to operational improvements in all three divisions – Railcar, Rail Logistics and Tanktainer – and to positive one-time effects overall. “We can be very satisfied with the 2019 financial year and are proud of the best result in the company’s history,” says Dr Heiko Fischer, chairman of the Executive Board of VTG AG. “This comes as clear evidence that we have in the past charted the right course for the future of VTG – not least thanks to the smoothly integrated takeovers of recent years. “It is particularly gratifying that all three divisions were able to contribute to the good result by improving their operating business,” Dr Fischer continues. “From this strong position, we are determined to face the current crisis and pressing ahead with our consistent course of internationalisation, digitisation and innovation – as far as the present developments around the spread of the coronavirus allow.” During 2019 the Railcar division benefitted from the successful integration of the Nacco Group – which alone contributed some €66m to group EBITDA - and was also able to significantly increase its revenue from operations. The Rail Logistics division also considerably increased its revenue thanks

 VTG ENJOYED BETTER RETURNS ACROSS ITS THREE OPERATING DIVISIONS IN 2019

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to the acquisition of new business, while the Tanktainer Division also recorded an increase in revenue, albeit only a moderate growth due to international trade conflicts and the weakening global economy. A BIGGER BOARD At Group level, 2019 saw new appointments and the expansion of the Executive Board. VTG took an important strategic step by creating two new Executive Board portfolios that are broken down more by regional criteria than by business segment. Since September 2019, Sven Wellbrock, formerly head of the European Railcar Division, has been responsible for railcar and rail logistics business in Europe in his capacity as COO Europe. Oksana Janssen, previously head of the Railcar Russia business

segment, now serves as COO Eurasia & Far East for railcar business in the Eurasian region, for tank container and project logistics activities and for services provided along the Silk Road. “These new Executive Board portfolios and the associated reorganisation of our business activities strengthen our competitive position,” says Dr Fischer. “Closer integration of the railcar and logistics units will enable us to offer our customers an even more comprehensive range of services, and to model transport chains better, faster and more comprehensively. “In view of the current situation surrounding the coronavirus, this is more important than ever. Right now, we are clearly seeing the importance of international rail freight transport for the security of supply lines throughout Europe,” Dr Fischer continues. “We are fully aware of this responsibility. The strengths of rail freight include the transportation of large quantities with relatively few personnel. Our employees, especially in the plants, in mobile service, on the trains and in the dispatching and control centres, are doing everything in their power to guarantee the ongoing smooth flow of goods. Especially those that cannot work from home, but are on-site to ensure smooth supply chains for us all, are among the heroes of our times. Our thanks go to them.” www.vtg.com

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RUN ON TIME DIGITISATION • IMPLEMENTATION OF IMPLICO’S SYSTEMS NOW PROVIDES EVOS HAMBURG WITH A DIRECT LINK TO THE PORT AUTHORITY AND BETTER DATA ON RAIL MOVEMENTS EVOS HAS IMPLEMENTED a digital connection with the Hamburg Port Authority (HPA), using a software solution developed and implemented by Implico, a specialist in tank terminal software systems. The Evos tank terminal and HPA now exchange rail movement data completely automatically, with no need for manual entry and transfer by employees. Every year, thousands of railcars are handled at the Evos terminal in the port of Hamburg. These ensure the rail-based supply of various hydrocarbon products from different refineries and terminals. Until now, an incoming freight train meant a lot of manual work for the Evos team: employees had to record each arriving railcar by hand, including the associated master data. Based on this information, they generated the required unloading order. This process was both time-consuming and error-prone. Now that HPA and the terminal management

system OpenTAS ‘Blue Edition’ used by Evos are connected, terminal operators receive all information about incoming freight trains in advance. The data is imported into the system via an interface and the unloading order is generated automatically. To further digitalise the remaining safety check of the railcars, Evos is planning to introduce additional mobile devices. These handhelds will be integrated into the terminal management system and will allow the terminal crew to check the railcars directly and digitally – from the master data to the sequence of the wagons to the visual security inspection via checklist. This increases safety as the employees cannot overlook anything. In addition, the use of handhelds eliminates redundant tasks and supports the field staff optimally with state-of-the-art technology. Consequently, it makes the process much more efficient.

KNOW THE FUTURE “With the new interface and the planned handhelds, we take a big step towards the further digitalisation of our processes,” says Sebastian Palandt, IT and OT manager at Evos Hamburg. “For the deliveries that reach us by rail, we now receive all relevant information in advance – be it the actual wagon data, the order data or the details of the products loaded. Furthermore, the usage of mobile devices directly on site at the train significantly increases the level of transparency and security.” The data exchange between HPA’s TransPORTRail system and the OpenTAS terminal management system used by Evos is carried out via the innovative web service iGOS Data Exchange, provided by Implico. In the implementation of the project, the experts used many innovations, such as the state-of-the-art cloud technologies Docker and Kubernetes. “Implico develops cloud-based solutions that find usage along the entire oil and gas supply chain,” observes Thomas Roller, head of sales, marketing and business development at Implico. “Since these web services are extremely flexible, companies can implement them quickly and use them easily. The rail interface used by Evos is part of a broad portfolio and marks an important step in the digitalisation of tank terminals.” Evos Hamburg is a big site: it has 149 storage tanks ranging in size from 1,000 m³ up to 26,000 m³, with a combined storage capacity of more than 670,000 m³. It handles various petroleum products, biofuels, gases, sulphuric acid, base oils and paraffins and, in addition to storage, offers a range of services including blending, additivation, heating and dedicated system. Hamburg is one of four terminals in the Evos network, the others being located in Algeciras, Amsterdam and Rotterdam. All four sites have been acquired over the past year by First State Investments, which also owns Navigator Terminals in the UK and ANZ Terminals in Australia and New Zealand. www.implico.com evos.eu

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Being first to market with this type of innovation demonstrates CSafe’s commitment to best-in-class products and continuous improvement across our product portfolio.”

CSAFE GLOBAL, AN innovation leader in temperature-controlled container solutions for the transport of life-enhancing pharmaceuticals, has become the first cold chain packaging provider to successfully implement track and trace technology into its active air cargo containers following a flawless commercial pilot shipment in partnership with DHL. For the pilot, CSafe’s RKN containers were loaded with temperature-sensitive pharmaceuticals, flown from Puerto Rico to Kentucky and then transported by truck

The ability to offer this level of visibility derived from the successful integration by CSafe engineers of state-of-the-art tracking devices into the RKN containers. These tracking devices provide real-time data on location, container temperature, ambient temperature, container tilt, container shock, door opening/closing events and humidity. “This technology will bring the insight into shipment status and product condition that customers expect,” says Tom Weir, CSafe’s COO. “The tracking devices continually collect data and deliver it in real time to

DRUGS DELIVERED With this first commercial pilot now finished, CSafe plans to move on with additional commercial test shipments during the next few months and incorporate customer feedback into its custom visibility platform. The platform will be device-agnostic and able to track additional, commercially available telemetry devices. This flexibility is seen by CSafe as being essential for the successful implementation of the technology across its entire portfolio of Air Cargo, Parcel and Cell & Gene solutions. As a key partner focused heavily on its Strategy 2025 of digitisation, DHL has been very supportive of CSafe’s efforts on this project. Patricia Cole, global head of Temperature Management Solutions and Same Day for DHL Global Forwarding, notes: “We at DHL appreciate partners who are dedicated to innovation that not only meets the current need but goes well beyond to anticipate the future needs of our customers. This technology will revolutionise the cold chain and we are thrilled to be involved.” CSafe’s CEO, Patrick Schafer, was not at all surprised that the team delivered in spite of the challenges that 2020 has brought with it. “Tom and his entire team have been researching, planning, testing and retesting every aspect of this project for months to ensure we provide the best possible hardware, software and experience to our customers. They enlisted help and insight from our partners and customers and the result is once again something we are all very proud to offer.

to their destination in Chicago.

a cloud-based platform. From there customers and CSafe support staff have 24/7 access to monitor every shipment and intervene if necessary. It’s this ability to intervene that will give CSafe customers additional peace of mind that their products will arrive in perfect condition for patients.

“While others may have delayed or cancelled innovation efforts due to COVID-19, we saw it as an opportunity to truly test the equipment and software. As always, the CSafe team, our partners at DHL and our active containers performed exceptionally well.” csafeglobal.com

EYES IN THE SKIES COLD CHAIN • CSAFE GLOBAL HAS SHOWN IT IS POSSIBLE TO KEEP TRACK OF TEMPERATURE-CONTROLLED AIR SHIPMENTS FROM PICK-UP THROUGH TO DELIVERY

 DHL BELIEVES THAT THE NEW CAPABILITIES OFFERED BY CSAFE WILL REVOLUTIONISE THE TRANSPORT OF COLD-CHAIN CONTAINERS BY AIR

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platform to promote promising applications such as CCU and hydrogen. In the meantime it gives a strong signal that Port of Antwerp is keeping to its transition agenda.”

input of sustainably produced hydrogen, to process it into methanol. The plan is to start work in 2022 on a demonstration plant at the Inovyn site in Antwerp and to produce 8,000 tonnes of methanol per year, saving an equivalent amount of CO² emissions. The methanol produced at the plant will find ready buyers within the chemical cluster of Antwerp, it being an essential raw material in many processes. “Our future prosperity will be sustainable, or there will be no prosperity,” says port alderman Annick de Ridder. “Innovation is

DIFFERENT SKILLS The consortium brings together a number of skill sets that will be needed to see the plan to fruition. The partners are power utility Engie, storage terminal operator Oiltanking, Indaver, which has expertise in CO² capture, Fluxys, with its infrastructure experience and specific expertise with regard to the certification of green gases, Vlaamse Milieu Holding, which will provide financing, and the Port of Antwerp, playing a role to bridge the gap between the private companies involved and the Belgian government. As well as hosting the project at its plant, Ineos subsidiary Inovyn will contributes to the project with the supply of hydrogen along with its chemical and electrolysis expertise. “The formal continuation of the ‘power-tomethanol’ project in the Port of Antwerp confirms the conviction of this group of cross-industrial players to pursue our cooperation,” a statement from the consortium says. “The project shows in a very practical and innovative way the importance of industrial symbiosis as part of the energy transition pathway. The different partners have the ambition to advance the energy transition and to strengthen their presence in the Port of Antwerp not only for the business of today but also for that of tomorrow.” “Innovation is essential for the transition to a sustainable, circular economy. But collaboration is also crucial. The consortium demonstrates that by combining the knowhow and expertise of different partners we can get a whole lot moving,” adds

key to tackling climate change. In Flanders we have a tradition of innovative entrepreneurship and as Port of Antwerp we play a pioneering role in serving as a testbed for technological and sustainable innovation. We combine this innovation with our strengths as a multi-industry port

Hilde Crevits, the Flemish minister for the Economy, Innovation, Employment, Social Economy and Agriculture. “In this way we are putting Flanders on the map as a region that is going ahead fully with alternative sources of energy.” www.portofantwerp.com

THE POWER OF SEVEN SUSTAINABILITY • AN ANTWERP-BASED CONSORTIUM IS AIMING TO MAKE METHANOL FROM CAPTURED CARBON DIOXIDE IN A WIN-WIN FOR THE LOCAL CHEMICAL CLUSTER THE IDEA OF carbon capture and storage (CCS) has been around for a few years now, as a way of reducing the amount of CO² emitted to the atmosphere in order to slow climate change. But as the idea has been investigated, thoughts have turned towards carbon capture and utilisation (CCU), if ways can be found to transform the captured CO² into something valuable. Last month a seven-strong consortium was formed under the name Power-toMethanol Antwerp, which is aiming to do just that: to take CO² produced at various industrial plants in the port and, with the

 INOVYN’S ANTWERP PLANT (ABOVE) WILL BE THE HOST FOR THE INNOVATIVE AND COLLABORATIVE POWER-TO-METHANOL PROJECT

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STAY POSITIVE

PLANNING TO STAY AHEAD “The macroeconomic framework conditions for the [Hoyer Group] companies were very difficult in 2019,” the company says in its annual report for the year. “A sustained upswing in Germany and Europe had come to an end and the global economy was in a cooling phase. The reasons for this …

In the face of this uncertainty, Hoyer trimmed its investment plans for the year from €173m to €106m, although this was still well above the levels spent in the previous two years. Investment was concentrated on the rejuvenation and modernisation of the tank container fleet, including the installation of the latest generation of telematics systems, and for the replacement and expansion of other transport assets, including road tankers and intermediate bulk containers (IBCs). Hoyer had originally planned an investment budget of €146m for 2020 but, in light of the Covid-19 crisis and its impact on economic performance, this has been revised, with expenditure focusing now only on essential strategic projects. Thomas Hoyer, chairman of Hoyer’s advisory board, says: “Hoyer will remain one step ahead, even in times of crisis. The Executive Board manages prudently and sustainably. That enables targeted investments even in economically difficult times.” These are likely to include a dangerous goods terminal, buildings and technical installations, further expansion of the Smart Logistics concept, state-of-the-art information technology, international business acquisitions and joint ventures, such as the Hoyer Bulk joint venture established last year with Dupré

were on the one hand negative effects due to a worsening of the trade conflicts between China and the USA, and the expectation of growth-retarding effects resulting from an unregulated Brexit. Increasing political uncertainties also negatively affected economic growth.”

Logistics in the US. “Thanks to our global presence and strong network, we can meet our customers’ regional and international logistics needs along the supply chain in an optimum way,” says CEO Ortwin Nast. www.hoyer-group.com

FINANCIALS • HOYER REMAINS A PROFITABLE COMPANY DESPITE THE ECONOMIC HEADWINDS OF THE PAST YEAR AND IS PLANNING TO STAY THAT WAY WITH TARGETED INVESTMENT THE HOYER GROUP achieved turnover of €1.18bn in 2019, a 0.9 per cent increase over the 2018 figure, despite the economic slowdown in Europe. Pre-tax profit came in at €38.1m. The growth in revenues derived in part from higher volumes in the UK retail fuel distribution sector, new business and transport growth in the gas logistics segment, improved returns from tank container leasing, and some currency effects derived from the strong US dollar. Hoyer’s Chemilog business unit, the largest of the five units in the group, increased turnover by 0.6 per cent, largely through increased capacity utilisation and greater efficiency. The Deep Sea business unit, responsible for overseas activities, grew turnover by 3.7 per cent, primarily as a result of exchange rate movements. The Petrolog business unit, which includes fuel distribution services to service stations and airports, aircraft refuelling and bitumen transport, saw a drop in turnover but pre-tax

 HOYER’S MINERAL OIL DISTRIBUTIONS BUSINESSES HAVE DONE VERY WELL OVER THE PAST YEAR

earnings “improved significantly”. The Gaslog business unit boosted turnover by almost 6 per cent and Hoyer says the development of its business transporting industrial, chemical and special gases was “pleasing”, especially in Germany. The Netlog business unit, which includes global container management, tank cleaning and maintenance, depot services and related technical services, increased turnover by 6 per cent.

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NEWS BULLETIN

TANKS & LOGISTICS

HOYER ADDS CAPABILITIES

Hoyer Group has taken delivery of the first of more than 500 new trucks across its European fleet as part of a €42.7m investment, the biggest fleet replacement and expansion project in its history. Most of the new trucks are for use in its UK mineral oil business, although there are also new Volvo units for its chemical divisions based in Germany and Poland. “The safety of our drivers and of other road users has top priority. We transport highly sensitive goods every day, and consider it our duty to reduce risks and dangers to the absolute minimum,” says Rudolf Schumacher, group fleet manager. “Thanks to our fleet’s innovative safety equipment, we more than satisfy the legal requirements and set standards in the sector. Moreover, we emphasise the continuous instruction and further education of our personnel. We regularly and intensively

train our drivers on the topic of safety in the framework of classroom training sessions and online training courses.” In separate news, Hoyer’s UK Petrolog division has begun training its drivers to deliver medical-grade oxygen to hospitals, in partnership with Air Products, as part of its efforts to support the national effort to fight the Covid-19 outbreak. The drivers chosen for training were volunteers based near the Air Products depots in Didcot and Manchester and all had Class 1 HGV and Class 2 ADR licences. “Whilst both Hoyer and Air Products hope that our support is not required, we now have a group of drivers who can be deployed quickly to ensure that these lifesaving deliveries can continue uninterrupted,” says Jonathan Lawrence, divisional director, field operations for Hoyer UK Petrolog. www.hoyer-group.com

IMPERIAL PLUGS INTO BATTERIES

Imperial’s Chemical Logistics division has won a contract to store and handle lithium ion batteries for the German operations of a major global automotive manufacturer. Imperial will store the batteries at two locations with a combined footprint of some 25,000 m2; it will also charge the batteries prior to delivery to the manufacturer’s market network at one site. “The regulations governing the storage of rechargeable batteries are necessarily extremely strict, and our site at Rieste meets and exceeds these stringent criteria,” says Michael Pohl, vice-president, commercial, chemicals. “We are delighted to complement Imperial’s existing automotive logistics services for this client, with the addition of our extensive specialist capabilities and resources in the field of hazardous materials handling and storage.” “As the world’s automotive manufacturers accelerate their move to zero-emissions vehicle production, the demand for high-output lithium batteries will increase exponentially. Imperial is targeting this sector as a logical progression of its already heavy involvement in automotive supply chain logistics,” adds Markus Kanis, executive vice-president, industrial and chemicals. “Our battery logistics solution addresses all environmental and safety issues involved in transporting, handling and storing largeformat lithium batteries – from delivery of raw materials through battery manufacture, to supplying both the assembly track and after-market,” Kanis adds. “The winning of this contract is recognition of the commitment we have already made to this exciting but challenging new market.” www.imperiallogistics.com GENESIS LOSES RAIL VOLUMES

Genesis Energy reports that crude oil shipments from Canada to the US have disappeared since 1 April, following the collapse in the price differential between Canadian crude and the Gulf Coast. The company expects the situation to last for the rest of the year, which will have an impact on its full-year figures.

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Its first quarter was firm, though, with net income rising from $16.0m a year ago to $24.9m. “For the quarter, our diversified businesses delivered financial results consistent with, if not slightly greater than, our expectations,” says CEO Grant Sims. “The results were positively driven by solid pipeline volumes out of the Gulf of Mexico, strong crude-by-rail volumes out of Canada and robust demand for marine transportation across our different classes of assets.” However, Genesis is now dealing not only with the oil price collapse but also the slump in end-user demand caused by Covid-19. As a result, Genesis has reduced its quarterly distribution and is postponing capital expenditures until the situation stabilises. www.genesisenergy.com FUEL OF THE FUTURE

Den Hartogh has begun a project to supply methanol in tank containers as bunker fuel for SAL Heavy Lift. In collaboration with Helm Proman Methanol, the methanol was supplied in a tank and loaded aboard SAL’s vessel Trina in Hamburg; once empty, it will be swapped out for a full tank wherever in the world the vessel is located. Methanol is injected into the ship’s engine along with hydrogen, using a system developed by Fuelsave Green Technology that provides

valuable fuel savings and reduces emissions. www.denhartogh.com TWO WINS FOR SUTTONS

Suttons Tankers has won a significant new contract with Haltermann Carless to transport gas condensate from its subsidiary Spirit Energy’s gas terminal in Barrow-in-Furness to Haltermann Carless’s site in Harwich, UK. “We are delighted to be working with Suttons on this contract,” says Steve Richardson of Haltermann Carless. “The safe delivery of our material is of utmost importance to us and Suttons’ track record and commitment to safety made them the ideal partner for this contract. Due to the nature of Spirit Energy’s gas field operation, reliability of the transport service is crucial and the scale and infrastructure that Suttons offers assures us that we can meet the needs of the business.” Suttons Tankers has also won a deal to provide transport for denatured spirit produced by major distiller William Grant & Sons, supplying it to manufacturers of hand sanitisers responding to the Covid-19 pandemic. William Grant & Sons has adapted its technology to produce some 5m litres of denatured ethanol. “We are thrilled to be working on this project that contributes to the nationwide effort to fight against Covid-19,” says Michael Cundy, managing director of Suttons Tankers. “We are

proud of the division’s ability to be reactive and redistribute fleet and resource to provide an exceptional level of service and safety to critical industries during these difficult times.” www.suttonsgroup.com IRISH BUY FOR RHENUS

Rhenus has acquired Ireland-based chemical logistics specialist C+G Logistics. Headquartered in Mulhuddart, Dublin, C+G has more than 40 years’ experience in the storage, transport and handling of raw materials, ingredients and chemicals, and its acquisition will further the already established position of the Rhenus Group within the chemical market. C+G’s warehouse provides full Seveso capabilities with 5,000 m2 of hazardous goods storage. “Joining the Rhenus family is an important step for our business, opening up new service provisions for our client base. We are delighted to be starting 2020 with the support of a global organisation behind us,” says Patrick Wogan, general manager of C+G. Declan Sinnott, managing director of Rhenus Logistics Ireland, adds: “The acquisition of C+G Logistics is a milestone in the ongoing development of Rhenus in Ireland, and we’re delighted to expand the scope of services we can offer our clients, both existing and new.” www.rhenus.group

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WHAT CORONA TELLS US OPINION • DOROTHEE ARNS, FECC’S DIRECTOR GENERAL, TAKES A LOOK AT WHAT WE’VE LEARNED SO FAR AS A RESULT OF THE COVID-19 CRISIS AND HOW DISTRIBUTORS HAVE RESPONDED SPRING 2020 WAS a very challenging time for chemical distributors. Like all other players in the chemical value chain and beyond we were confronted with unprecedented political and supply chain dynamics, while in parallel coping with a simultaneous global supply and demand shock. Fortunately, the overwhelming majority of the member companies of the European

Association of Chemical Distributors (Fecc) all over Europe stayed fully operational over the past months and without infections. As we are all adapting to the ‘new normal’ now, lessons learned from the Corona crisis and mid-/long-term perspectives for the chemical value chain enter the picture again. Especially in our business sector, diverse

product portfolios, thorough market know-how, supply chain excellence and the agility to respond quickly to emerging challenges and dynamic situations are key to success. This has helped us greatly to weather the storm. Nevertheless, the Covid-19 crisis can be seen as a sort of magnifying glass, which brought several aspects to the forefront of attention, which actually had already emerged beforehand - just in a more subtle way. In particular, this applies to diversification, digitisation and free trade. DIVERSIFICATION IS STRENGTH The full impact of economic lockdown measures on our sector will become fully visible only in the course of the next months, and presumably the picture will be as diverse as the distribution sector itself is. Usually, distributors serve a broad portfolio of applications, which is now particularly beneficial when it comes to balancing out lacking demand in segments such as automotive, construction or textiles with an over-proportionally high demand for pharmaceutical substances and disinfectants. In the absence of a remedy against Covid-19 the latter trend is expected to hold for the foreseeable future, whereas activities in almost all other segments are starting to resume slowly. Moreover, diversification in supply sources, logistics channels and packaging material helped to mitigate the Covid-19 impact on companies, when global supply chains were disrupted and many – even intra-EU borders closed with almost no lead time. DIGITISATION IS AN ASSET The pandemic has also showcased the value of digital solutions. Not only does this apply to home offices and virtual team meetings, but also to integrated digital supply chain solutions, which enable the quick, always-upto-date, reliable, flexible and contactless

 DOROTHEE ARNS (LEFT): COVID-19 HAS HIGHLIGHTED SOME IMPORTANT TRENDS IN DISTRIBUTION

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CHEMICAL DISTRIBUTION

processing of orders, deliveries and many other supply chain functions including inventory management and related cashflow monitoring. In this area Europe will certainly see a bigger push from now on. Since distribution is ideally placed at the core of all supply chain operations (e.g. blending, formulating, customising, packaging, warehousing, R&D, recycling) and covers all segments, while combining production, distribution and international trade, we consider ourselves to be best suited for piloting all kinds of innovative, digital solutions in close collaboration with our value chain partners. In this respect associations such as Fecc can enhance their crucial role, especially when it comes to elaborating industry-wide standards and testing new innovative solutions for their community with internal and external partners in the framework of legally sound governance and compliance rules.

have gone a bit into silence mode over the growing concern about the economic damage of Covid-19, but mid- and long-term they will have a huge, long-lasting impact on the chemical value chain and the way we do business. Not only regulators, but also many chemical players see Covid-19 as an opportunity to accelerate a transition which was anyhow underway.

All of these topics will also shape the future of Europe´s chemical distributors, and we as Fecc see our top priority in preparing our member companies as early and as well as possible for the times to come. One thing can be taken for granted: we have exciting times behind us and - even more - ahead of us! www.fecc.org

FREE TRADE IS A MUST During Covid-19 peak times the growing fragmentation of European and global trade flows became visible more than ever before. It started with each EU member state closing down their borders from almost one moment to the next without Europe-wide coordination, which led to an immediate disruption of all interconnected and optimised supply chains. And it culminated with some European countries battling about face mask deliveries from other continents and blocking personal protective equipment from exports, which ended up in a domino effect. One lesson learned from this example is that free trade is beneficial for everyone and can mitigate the consequences of force majeure events of all kinds. To the contrary: suspending free trade leads to significant supply chain distortions and disruptions as well as national retaliations to the detriment of all countries. Hopefully, this aspect will also be considered in the Brexit negotiations. Last but not least, let us not forget about sustainability in general and the circular economy in particular. Recently, these topics

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navigate the post-Brexit regulatory and trading environment,” Budd says.

of the UK’s chemical exports and the source of 70 per cent of the UK’s chemical imports. “But the UK Government has made it clear that it has no intention of even attempting to achieve regulatory alignment with the EU as far as chemicals are concerned. CBA is therefore now advising member companies trading with the EU to pursue the following options – before the end of the transition period – in order to secure EU market access.” There are three options for CBA members: - Use an existing subsidiary or create a new one in the EU and transfer any registrations under the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation to that subsidiary - Establish a partnership with a company in the EU and transfer any REACH

LOCKED DOWN Turning to the Covid-19 pandemic, Budd says: “We have all become familiar with the lock-down and working from home, though it is impossible to imagine the lonely and isolated deaths its growing number of victims experience. And there is no immediate end in sight. Science is guiding us through the pandemic but has yet to create an effective vaccine. No doubt one will come – but time is not on our side. “I’m proud to say that member companies have put their shoulders to the wheel to help in the crisis. Member companies have maintained critical supplies to the NHS as well as the main utilities, such as water and energy. They have also responded to the shortage of hand sanitisers by producing industrial alcohol and other companies have supplied glycerine. “In terms of supporting its member companies, CBA has provided the latest information as the pandemic develops and UK regulations change to increase supplies of key chemicals to strategic downstream users. CBA has also been in continuous dialogue with the Government and industry regulators to maintain a proportionate balance between regulatory controls, protection of stakeholders, and to support measures to counter the pandemic. “Meanwhile the Government has launched a massive programme of support for companies, employees, and the self-employed. Tax and VAT are deferred. Grants and business rate relief have been introduced. Business loans are guaranteed by the Government – though for the lender not the borrower. Many firms may baulk at taking on additional debt – but, I realise, some may not have a choice.” Concluding, Budd says: “I said at the outset that we live in unprecedent times – and times full of commercial, financial, and health dangers. Yet here we are. Each

registrations to that company, or - Support CBA’s plans to create or contract with a collective Only Representative entity in the EU for member companies. “CBA remains absolutely committed to providing you with practical information, support, and solutions to help your business

one of us confident that our companies will survive these testing times and return to growth. As a business sector the chemical supply chain is massively resilient. We will endure the current hardships. We will find a way to survive and prosper.” www.chemical.org.uk

PERFECT STORM ASSOCIATION • CBA CHAIRMAN DARREN BUDD DESCRIBES HOW THE TWIN CHALLENGES OF COVID-19 AND BREXIT ARE CREATING AN UNPRECEDENTED YEAR FOR CHEMICAL DISTRIBUTORS THE COVID-19 LOCKDOWN caused the UK Chemical Business Association (CBA) to cancel its much-anticipated annual lunch – widely known as the ‘Floggers’ Lunch’ – on 29 April. Its chairman, Darren Budd, commercial director of BTC-Europe, was due to speak to members that day but instead has offered some thoughts on what he calls a ‘perfect storm’ for many companies. “We have the immediate reality of the Covid-19 pandemic and waiting in the wings we have the prospect of further Brexit uncertainties,” Budd says. On the topic of Brexit, Budd has this to say: “CBA has continued to call for an end to uncertainty and, like most of UK business, close regulatory alignment and continuing frictionless trade with the European Union. Our advocacy campaign will continue to secure market access and frictionless trade with the EU – the destination for 60 per cent

 CHEMICAL DISTRIBUTORS IN THE UK ARE WORKING HARD TO SURVIVE DURING A DOUBLE CRISIS

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STICK WITH THE PROJECT RESULTS • BRENNTAG MADE A SOLID START TO 2020 AND, DESPITE THE COVID-19 PANDEMIC, IS CONTINUING WITH ITS PLAN FOR A HOLISTIC TRANSFORMATION BRENNTAG BEGAN THE new year in a mood of optimism, with a new CEO in the shape of Christian Kohlpaintner, who came with a plan to take the company forward. As he said at the time of the release of Brenntag’s 2019 financial results in March, “Brenntag is a strong brand with a good reputation in its markets. Our company offers great potential for organic profitable growth.” Kohlpaintner’s leadership brought with it

also said it intended to further expand its already very customer-centric approach. “Brenntag’s transformation will be a comprehensive journey. We are now creating the strong basis to drive sustainable organic earnings growth,” Kohlpaintner says. Brenntag says it has made good progress with the project, which it expects to define distinctive initiatives and create an overarching plan for their implementation based on the

‘Project Brenntag’, a “holistic analysis” of the company’s internal structures, processes and organisational forms along the value chain. Brenntag saw potential for improvements through harmonisation and standardisation as well as in the stringent internal execution of initiatives and measures. The company

findings of the analysis.

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SOLID START In the meantime, however, Brenntag has been affected by the Covid-19 pandemic, just as all its competitors and supply chain partners have been. Nonetheless, its first quarter financial

results showed limited impact up to the end of March 2020. “Despite the exceptionally difficult conditions, we were able to achieve solid results,” Kohlpaintner says. “The Covid-19 pandemic had a limited impact on our business and financial performance in the first quarter – due also to the dedication and flexibility of our employees. We were able to maintain business operations at our sites worldwide.” Group sales for the first quarter amounted to €3.2bn, virtually unchanged from a year earlier, though operating EBITDA increased by 10.1 per cent to €263.0m. CFO Georg Müller says: “We can be pleased with the performance of our key financial indicators in the first quarter of 2020. In addition to the positive trend in operating EBITDA, we again generated a high cash flow. Especially at the present time, this is an important component and a source of stability in the face of the uncertainty over the further course of the year.” Brenntag will have been particularly happy to see a return to growth in its Europe, Middle East and Africa (EMEA) division, where sales were up by 3.3 per cent at €1.39bn and operating EBITDA rose by 20.9 per cent to €123.1m. “Most of our customers were able to largely maintain business operations during the crisis. Some of our customer industries, such as in the food sector for example, performed excellently,” the company says. ALL AROUND THE WORLD Brenntag’s Asia Pacific division was the first to feel the impact of Covid-19 and this is reflected in its figures, with sales down 2.2 per cent at €349.7m. Nevertheless, in what the company describes as a “solid first quarter”, operating EBITDA was up 22.3 per cent on the previous year at €26.3m, largely as a result of the acquisition last year of Tee Hai Chem. Brenntag’s Latin America division is still operating under what the company terms “a continued difficult and volatile macroeconomic environment”. However, it achieved a 3.1 per cent year-on-year increase in sales to €217.1m and a 20.0 per cent rise in operating EBITDA to €13.8m. Brenntag’s North America division was also impacted by a clear decline in business with the oil and gas industry that was not fully offset by the positive trend in demand from other

CHEMICAL DISTRIBUTION

industry segments. As a result, sales were down 2.5 per cent year-on-year at €1.15bn and operating EBITDA was off by 1.7 per cent at €110.1m. The full effects of the Covid-19 pandemic and the associated lockdowns and business restrictions will not be felt until the second quarter and it will be instructive to see how those financial results look. At the start of the second quarter, Brenntag suspended its forecasts for the full year due to the considerable uncertainty caused by the outbreak and said it would update those forecasts “once the effects on Brenntag’s further business performance in 2020 can be reliably determined”. However, unlike some other companies in the sector, it says it will pay the 2019 dividend in full, subject to approval by shareholders in early June.

 CHRISTIAN KOHLPAINTNER, BRENNTAG CEO (ABOVE): “WE ARE NOW CREATING THE STRONG BASIS TO DRIVE SUSTAINABLE ORGANIC EARNINGS GROWTH”

UNCERTAIN FUTURE Regardless of the Covid-19 outbreak, Brenntag says it will continue to expand its initiatives

related to customer and supplier relationship management and improving warehouse logistics. These initiatives were launched in the second half of 2019 and are designed to improve working capital turnover. Current planned investment in existing infrastructure remains in line with previous years. However, Brenntag says, these plans may be adapted to respond appropriately to market changes resulting from the Covid-19 pandemic. “In 2020, we must prove ourselves in a very challenging environment and under conditions incomparable with any situation in the past,” Kohlpaintner says. “We expect increased levels of uncertainty over the further course of the year, which will affect our business performance. Our top priority remains the protection and health of our employees. We also do our utmost to ensure that our customers are supplied with products.” www.brenntag.com

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SPRING INTO ACTION RESULTS • UNIVAR SOLUTIONS HAS REPORTED WHAT IT TERMS ‘SOLID’ FINANCIALS FOR THE FIRST QUARTER, THANKS TO ITS ABILITY TO REACT QUICKLY TO RAPID CHANGES IN DEMAND UNIVAR SOLUTIONS HAS reported adjusted net income of $52.3m for the first quarter of 2020, up 5.2 per cent on the previous year, with adjusted EBITDA ahead by 0.9 per cent at $161.6m. “I’m pleased with our performance this quarter and our strong liquidity position. We remain positive about the path we are on but will remain agile to adjust to changing demand patterns as the impact of Covid-19 continues to develop,” says David Jukes, president/CEO. “Our number one priority

 UNIVAR’S EMPLOYEES HAVE PLAYED A MAJOR PART IN THE COMPANY’S COVID-19 RESPONSE

is always safety and the health and well-being of our employees. I’m extremely proud of how our organisation has been rapidly able to adapt to new ways of working. The strength of our supplier and customer relationships, operating infrastructure, and the ability of the sales force to react quickly and decisively, enabled us to execute well in a challenging market, supporting an increasing number of customers.” Net sales came in at $2.2bn, a 3.6 per cent increase over first quarter 2019 on a constant currency basis. This growth was driven in part by the acquisition last year of Nexeo Solutions, together with higher demand for products in “essential end markets”, offset partly by lower demand from global industrial end markets.

That Nexeo acquisition certainly boosted sales in the Americas, with external sales in the US growing by 3.8 per cent, in Canada by 4.4 per cent and in Latin America by 21.8 per cent. Elsewhere, though, lower demand in some markets held back sales and EBITDA, though gross profit from the EMEA division rose by 3.0 per cent due to a favourable product mix and management initiatives to boost margins. THROUGH THE MIST As with many other companies during this current pandemic crisis, Univar is less bullish about the rest of the year, even if it confident that it has the financial stability to see it through. Univar has withdrawn its full-year EBITDA guidance and says it “plans to provide an update as appropriate once it has greater clarity regarding the implications of Covid-19 and the impacts on its business”. Univar has also been taking active steps to manage its expense base in order to maintain its financial health while also service the needs of its suppliers and customers. These include the elimination of some salaried positions, the elimination of salary increases, the suspension of all hiring, except in critical positions, temporary furloughs for other staff to match demand changes in certain locations, and a reduction in travel and other discretionary spending. Univar expects these steps to deliver cost savings of more than $40m this year, though it has also reduced its expected synergies from the Nexeo acquisition by $5m to $35m due to timing delays. It has also lowered its planned capital expenditure for the year by $25m and will be monitoring the situation in case further cost reduction measures are warranted. In the meantime, Univar points out that its liquidity at the end of the second quarter is projected to be in the region of $700m to $800m and that it has no significant debt maturities until 2024. www.univarsolutions.com

HCB MONTHLY | JUNE 2020

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technologies”. Deloitte also noted that the rejuvenation of an otherwise ageing workforce by a younger, tech-savvy generation would accelerate the process of digital acceptance.

DIGITAL TRANSFORMATION IN the chemical industry has been evolving gradually, bringing with it tools such as digital portals, remote sensors, dashboards and e-commerce sites, all of which aim to improve the efficiency of suppliers and their supply chain partners. Those companies that are ahead of the curve can operate more effectively and efficiently. According to Matlack Leasing, a service provider to the North American chemical supply chain, the benefits digitisation brings in terms of fleet management and distribution include more efficient route planning, optimised equipment utilisation and improved client relationships.

The US chemical industry is responsible for around one quarter of national GDP and it continues to expand. To deal with that, chemical distributors have been required to update their traditional business models in order to stay relevant and continue to add value in the supply chains. “Specifically, chemical distributors looked to leverage technological solutions to meet industry demands for increased capacity, efficiency, and transparency,” Matlack says. A 2018 study by Kearney outlined the business models that chemical distributors can use to add value and to increase their market share, noting that their implementation often benefits from – or even relies on – the use of

CHANGE IS AT HAND The chemical transport sectors, including trucking, rail, and shipping, will evolve to support these demands from chemical companies to improve the efficiency of the supply chain and provide greater transparency, Matlack says. It notes that the trucking sector, which supports more than half of all chemical shipments, has already seen changes through the incorporation of digital technologies, including mobile sensors, real-time position tracking and online recorders to monitor product status en route. These digital enhancements all improve visibility, quality, and control. In 2020, digitisation was expected to become a major differentiator for those companies willing to risk investing in the advantages of economies of scale and improved control over their operations, supply chain and distribution channels. However, the forecasted slow growth rate for the chemical industry and the chemical transport sector came to an abrupt end with the emergence of the Covid-19 pandemic. The temporary shutdown in countries across the globe for all but essential goods and services, and the glut of oil, gas and petroleum products, required a rapid shift from transport to storage. It also required cuts in production, even as new mandates emerged for transitioning to a remote workforce and the implementation of social distancing requirements. In the short term, companies have shifted to conserve cash, postponing projects that are in early stages, while wrapping up phases currently nearing completion. While it is still too soon to evaluate the longer-term impacts of the pandemic, it seems reasonable to assume that companies at the forefront of the digital transformation are in a better position to collaborate remotely while operating



digital technologies. Similarly, a report from Deloitte published earlier this year noted that, in order to relieve pressure on margins, chemical companies should direct their efforts towards “driving higher process efficiencies and enhancing cost savings across the chemical value chain with the help of digital

transparently and efficiently. One of the few more certain outcomes is the heightened awareness of the need for digitisation in chemical manufacturing and distribution. Ultimately, it is likely these trends will resume when capital and cash flow allow. www.matlackleasing.com

TOMORROW IS NOW DIGITISATION • WILL THE COVID-19 CRISIS ACCELERATE THE UPTAKE OF NEW TECHNOLOGIES IN THE CHEMICAL SUPPLY CHAIN? MATLACK LEASING THINKS IT JUST MIGHT

MATLACK BELIEVES THAT CUSTOMERS FOR ITS TRANSPORT ASSET LEASING SERVICES WILL BENEFIT FROM THE ADOPTION OF DIGITAL STRATEGIES

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NEWS BULLETIN

CHEMICAL DISTRIBUTION

IMCD OPENS WITH A BANG

IMCD has reported first quarter revenues of €748.8m, up 6 per cent on the year earlier figure, with operating EBITA up 12 per cent at €70.9m and net profit up 13 per cent at €50.2m. “IMCD’s first quarter results were strong with an operating EBITA increase in all regions,” says CEO Piet van der Slikke. “In this extraordinary time, we are fortunate to be able to rely on our excellent staff and strong commercial relationships for the continuation of our business. Whilst adapting working practices to safeguard the health of our employees and business partners, we have been able to remain open for business, even in cases of severe lock-down restrictions. “However,” van der Slikke (below) continues, “with the duration of the Covid-19 crisis still unpredictable and the severity of its effect on the global economy yet unknown, it is difficult to quantify how it will impact our results in the months to come. We are nonetheless confident that IMCD’s resilient business model and strong financial position will enable us to continue to pursue opportunities for future growth.”

In other news, IMCD has opened a new office in Dubai, expanding its presence in the Middle East and allowing it to serve customers in Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, the UAE and Jordan. The opening follows on from IMCD’s first operations in the area when it opened an office in Cairo in 2018. Manuel Baumann has been appointed as regional managing director to drive IMCD’s growth strategy in the Middle East. “Throughout our operations around the globe, IMCD’s main focus has been to help our suppliers grow their business and to provide our customers the technical advice and formulatory support they need to create market leading and innovative products. Our principals in the Middle East needed a partner with these capabilities, and from this new office in Dubai, we will be able to provide them, as well as our customers, solutions that help them innovate and grow,” says Frank Schneider, business group director, coatings & construction. IMCD has also agreed to acquire the pharmaceutical business in China of Develing International Trade (Shanghai), a subsidiary

of the Dutch firm Develing that is involved in the sale and distribution of high-quality ingredients for the food, pharmaceutical, chemical and feed industries in China and Vietnam. The acquired business, which has annual sales of some €10m, will be integrated into IMCD China’s Pharma business unit. www.imcdgroup.com CALDIC BRINGS INDIA TO EUROPE

Caldic has secured a strategic partnership with Veeral Additives to distribute its portfolio of polymer additives in western Europe. Veeral has recently started production of the additives at a new site south of Mumbai, India, currently capable of manufacturing 24,000 tpa phenolic and phospite anti-oxidants, but with the intent to increase output to 40,000 tpa. “We believe that our customers will strongly benefit from our partnership with Veeral Additives,” says Tom de Bondt, Caldic’s European product manager, polymer additives. “It opens new doors and we will be able to provide our customers with tailor-made solutions adding value to their business. Caldic is looking forward to representing the Veeral Additives range of phenolic anti-oxidants and phosphites.” www.caldic.com HELM INVESTS IN CHILE

Helm AG has agreed to set up a joint venture with ACF Minera for the production and marketing of potassium nitrate and other products. Under the terms of the deal, ACF will expand potassium nitrate output from its mines in the Atacama Desert in Chile, while Helm will apply its established fertiliser network to distribute the product worldwide. “This is a landmark agreement for us, as we aim to develop our specialty fertiliser product line,” says Helm’s executive director Olivier Saulnier. ACF Minera’s CEO, Carlos de Urriticoechea, adds: “The partnership with Helm will increase our ability to compete and effectively reach many

HCB MONTHLY | JUNE 2020

CHEMICAL DISTRIBUTION 39

more markets. We look forward to combining ACF’s production expertise with Helm’s marketing reach and competence”. www.helmag.com TER TAKES TREXAN

TER Chemicals has acquired Trexan Chemicals, a well-established US distributor for ExxonMobil Chemical and TSRC/Dexco and a specialist in adhesives raw materials. Trexan handles a number of lines that TER Chemicals distributes in Europe and the deal is expected to enhance TER’s visibility in the US marketplace. “Our acquisition of Trexan Chemicals complements our overall US chemical distribution offering so we can now provide multiple products to the adhesive formulation industry in the US and Canada,” says Jens Vinke, who has been installed as director of Trexan Chemicals. www.terchemicals.com BIESTERFELD BIGS UP

Biesterfeld Spezialchemie has entered into a distribution partnership with Omya, covering the distribution of natural and functionalised calcium carbonates for the pharmaceutical and nutraceutical sectors in Germany and Austria. “Biesterfeld will be a strong and reliable partner for us. With their proven experience in the pharmaceutical sector and technology-based consulting, Biesterfeld’s experts can offer a comprehensive range of services. These are

the optimum prerequisites for placing our products on the market in the best possible way and to develop the business together,” says Dr Javier Camargo, global business development manager, Pharmaceuticals and Nutraceuticals, at Omya. Biesterfeld Plastic has appointed Olga Baburina as head of sales for Germany, based in Hamburg. “We are very pleased that in Olga Baburina we have gained a new Head of Sales Germany for our team, who is not only vastly experienced in the field of plastics distribution, but also fits in very well with our team and our strategic orientation,” says Martin Umbach, managing director of Biesterfeld Plastic. www.biesterfeld.com AZELIES SECURES PERSTORP DEAL

Azelis has secured a new distribution agreement with Perstorp, involving distribution of Perstorp’s polyols and solutions portfolio in parts of northern Europe. “Perstorp’s highquality portfolio is a great new asset in Azelis’ lateral value chain in the respective countries, enabling us to offer innovative, tailor-made solutions to our customers,” says Marnick Tack, market segment director, performance chemicals at Azelis. “This new agreement is also an important acknowledgment of our continuous efforts to build strong and value-added partnerships in EMEA.”

“We are confident that the strategic partnership with Azelis will provide our customers with an outstanding customer service and strong supply chain,” adds Klaudija Cavala, director of chemmel management for Perstorp’s speciality polyols business unit (above). “Perstorp’s decision was driven by Azelis’ commitment to growth and dedicated organisation for each industry, its market knowledge, commercial drive and continuous focus on innovation.” www.azelis.com ARAKAWA PICKS CAMBRIAN FOR CANADA

Arakawa Chemicals has appointed Cambrian Solutions, a Maroon Group company, to distribute its Arkon® C9 hydrogenated hydrocarbon line in Canada. “We are excited to be partnering with Arakawa Chemical in Canada and bringing their world class technology and market leadership to the Canadian CASE market,” says Greg McDonnell, senior commercial director at Cambrian Solutions. “We are continuing to expand on our successful relationship with Arakawa and see them as a leader in the hydrocarbon resin industry,” adds Thomas Papasso, Cambrian’s vice-president, principal management. “We are looking forward to bringing these solutions to our customers in Canada.” www.maroongroupllc.com

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JUST THE TICKET RECONDITIONING • EXPANDING THE NUMBER OF IBCS THAT CAN BE RECONDITIONED THROUGH CROSS-BOTTLING WILL LEAD TO SUSTAINABILITY GAINS FOR THEIR USERS, SAYS SCHÜTZ GERMANY-BASED INDUSTRIAL packaging giant Schütz has introduced a new reconditioning service for composite intermediate bulk containers (IBCs) – Recontainer – that allows for cross-bottling. A specially designed replacement inner bottle can fit the frame of any manufacturer’s IBC, meaning that many more IBCs can be reconditioned. Schütz was one of the pioneers of global IBC reconditioning, first offering the service in 1976 and then in 1980 introducing a fully equipped circular system to collect its used

service locations around the globe. This Schütz Ticket Service guarantees worldwide collection and has become the largest producer-owned network for the collection and reconditioning of emptied IBCs. Collected IBCs are fitted with original inner bottles and components produced in a globally standardised, eco-friendly process. The resulting Recobulk IBC is a fully compatible version of the original Ecobulk unit with the same standard specification. Taking this concept a step further with Recontainer means that cross-bottling of

IBCs for return to its 50 production and

IBCs from other manufacturers also meets the same standards.

 SCHÜTZ HAS FOUND A WAY TO RECONDITION THIRDPARTY IBCS TO PRODUCE RECOBULK UNITS TO THE SAME SPECIFICATION AS THOSE MADE FROM ITS OWN IBCS

HCB MONTHLY | JUNE 2020

HOW IT WORKS Just as with the reconditioning of its own IBCs, the Recontainer process starts with an evaluation of each used IBC, particularly with

regard to the last product carried. Schütz has developed a comprehensive database with more than 200,000 evaluated filling products, which it keeps constantly updated. Any residues are removed and properly disposed of. The old inner bottle is removed and recycled in an internal system that generates high-quality HDPE recyclate, which is then used to produce plastic components such as corner protectors and plastics pallets for the remanufactured IBCs. The grid cage of the old IBC is extensively cleaned and, if necessary, repaired and then fitted with a new universal Schütz inner bottle. This specially developed inner bottle has been technically adapted to fit into the cages of numerous IBC models on the market. Furthermore, the Recontainer is equipped with a new label plate, which again has been optimised to fit the different grid cages; adhesive residues from old labels are unavoidable on the old label plates when they are only cleaned during the reconditioning process. Further components such as screw caps and discharge valves are replaced with new original parts during the inner bottle replacement process. “Customers that use the Recontainer can rely on Schütz’s proven standards when using this packaging for their valuable filling products,” Schütz states. “The IBCs are delivered as a single-type standard specification. At the same time Schütz is contributing to the conservation of natural resources through the eco-friendly reconditioning of IBCs from other producers.” In Covid-19-related news, Schütz has stepped in to help BASF in its ‘Helping Hands’ project to supply hand sanitiser free of charge to hospitals in the Rhein-Neckar region of Germany, supplying every second IBC for the project free of charge. BASF had not produced sanitiser at its Ludwigshafen plant before but had the necessary know-how and some of the raw materials needed. Schütz supplied IBCs meeting the latest safety requirements for sensitive hygiene products and has upped production at its Selters headquarters with additional weekend shifts. The IBCs are collected free of charge from end users by the Schütz Ticket Service and recycled internally as part of the sustainable reconditioning process. www.schuetz.net

INDUSTRIAL PACKAGING 41

OPEN AND SHUT CASE STRATEGY • GREIF HAS RECENTLY TRIMMED ITS PORTFOLIO THROUGH INVESTMENT AND DISPOSALS, AIMING TO FOCUS ON WHAT IT DOES BEST GREIF HAS TAKEN a minority shareholding in Centurion Container, one of the pioneers in the intermediate bulk container (IBC) reconditioning business, to expand its network in North America. “Greif is pleased to be taking a minority stake in Centurion and agreed to a clear path to full ownership,” says Ole Rosgaard, Greif Group president, Rigid Industrial Packaging & Services and Global Sustainability. “This deal and its partnership will enable us to provide our customers with an enhanced sustainable packaging solution along with the economies inherent in reusable packaging.” Elliot Pearlman, chairman of Centurion, adds: “We are excited to partner with a company like Greif that will provide us with global recognition and the added resources needed to better serve our customers throughout our expanding industrial footprint.” Meanwhile, in response to growing demand for sustainable packaging, Greif has invested in two new Kautex CoEx blowmoulders for its North American drum manufacturing plants. “The multi-layer technology allows us to encapsulate up to 60 per cent post-consumer resin (PCR, which often comes from recycled drums) while still meeting the rigorous performance requirements,” says Kevin Kling, plastic and IBC development director for Greif. “Plastic drums are already a fantastic packaging solution due to their ability to be reconditioned and reused many times and this technology allows us to evolve with the growing demands of the planet.” Drums produced on the new lines will expand Greif’s EcoBalance portfolio, which includes products made with recycled content and/or innovative designs to reduce material requirements.

DECLUTTERING THE PORTFOLIO On the other side of the ledger, Greif has completed the sale of its Consumer Group Packaging (CPG) business to Graphic Packaging for $85m in cash. Proceeds from the sale will be used to pay down debt. “Given our industrial focus, we were not the rightful owner of the CPG business,” says Pete Watson, Greif’s president/CEO. “The sale helps us de-lever our balance sheet, optimise our capital allocation plans and refocuses our business on our core industrial franchise and strategic growth priorities in IBC production and reconditioning and containerboard integration.” Elsewhere, Greif has announced the closure of its plastics and fibre drum plant in La Palma, California. Regional plastics drum business will be serviced through the Merced plant and fibre drums through Morgan Hill, both also in California. “The widespread and diverse

economy throughout California requires a more strategic and dedicated approach to the unique business dynamic,” Greif says. “Investments have been made to modernise and expand capabilities at both of these two locations. Morgan Hill will have the capability to make all products previously made in La Palma, as well as have increased capacity to service peak demands during the harvesting season. Earlier this year, a plastic blowmoulding machine was installed in Merced, and additional capacities will be brought online to double our production capacities from this location.” In other news, Greif has elected Robert M Patterson, chairman, president and CEO of PolyOne Corp, to its board of directors. Patterson has extensive financial and global operational experience in manufacturing and distribution businesses with expertise aligned to Greif’s end markets. “Bob’s deep financial and global operational experience will be a valuable asset to Greif,” says Mike Gasser, chairman of Greif’s Board of Directors. “The values Bob has helped to instil at PolyOne – collaboration, innovation and excellence – and his customer-centric mentality make him an ideal Board member and we are honoured to have him join us.” www.greif.com

 GREIF HAS ADDED NEW PLASTICS DRUMS PRODUCTION CAPACITY AT ITS NORTH AMERICAN PLANTS

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THROUGH THE MILL DGSA • HCB’S EDITOR-IN-CHIEF RECENTLY SAT THE DGSA EXAM AND, WITH THE HELP OF GOOD PREPARATION, PASSED. HERE HE REFLECTS ON HOW IT WENT AND WHAT HE LEARNED IN EARLY MARCH, I did something I hadn’t done in 40 years: I went into a room lined with desks, sat down with my pen and took an examination. I heard recently that I passed and, as a result, I am now qualified to act

papers totalling more than five hours over the course of a day (closer to seven hours for those who take the rail paper too). The questions in the exam are designed to test the candidate’s knowledge of the

as a dangerous goods safety adviser (DGSA) for the road transport of dangerous goods anywhere in the EU. It’s unlikely I shall have the time to practice as a DGSA but the process of qualification has given me a new-found respect for those who do. The exam itself is a real test – three

regulations – in this case, the regulations contained in the annexes to the ADR Agreement. So the questions grab the candidate by the scruff of the neck and drag him or her backwards and forwards from the Introduction to Chapter 9.8 and back again, searching for the text to support each

HCB MONTHLY | JUNE 2020

answer. And knowing where those references are is just as important as knowing the answer: one cannot pass this exam without giving chapter and verse for each question. So I am now the proud owner not only of a confirmation from the Scottish Qualifications Authority (SQA) that I have passed the exam but also a well-thumbed copy of the twovolume ADR regulations, extensively tabbed up and annotated to make it easier to remember where everything is. WHY BOTHER? You may well ask: what’s the point? Why should I put myself through a tough and costly exercise, at my own expense, just to get a certificate for the office wall? Well, to some extent it was to test myself. I have been writing about the transport regulations for around 25 years now and, though I might have thought I knew them pretty well, it would be good to find out.

COURSES 43

What I did find out very quickly was that I didn’t know ADR as well as I thought I did. Fortunately, I had taken the precaution of arranging to take the five-day DGSA training course. I paid for a place on the February course run by Peter East Associates, in coordination with other UK training providers. It meant, of course, that the cost of the training had to be supplemented with the cost of staying at a hotel for five nights, and feeding myself in its restaurant, as well as the price of the copy of ADR I needed to buy. And that’s on top of the cost of sitting the exam and another night away from home to ensure I was up bright and early and ready for the test. Our instructor, Graham Fitzgerald, is clearly an old hand at getting his charges to understand not only how the ADR regulations are organised but also what the SQA examiners would be looking for – and especially the importance of getting all of the references down on the paper (which usually begin with ‘ADR 3.2.1 Table A’). I am used to going to conferences and exhibitions, where most evenings find a congregation of attendees around the bar, talking about the day or – more likely – gossiping about football or beer or whatever. But not during DGSA training: there is just too much to cram into one’s head. Every evening, while wolfing down a hotel burger in the restaurant, I could spot others from the course, heads down over their laptops, either revising the day’s teaching or catching up with emails and work. I had wondered, before arriving in Heathrow for the course, how it could possibly take up five whole days – we got off an hour or so early on Friday but otherwise it was a 9 to 5 event. But there was no let-up in the instruction, or at least not until we started practicing with mock exams. This was an extremely valuable aspect of the instruction, as it prepared us for what we would face during the exam itself and also highlighted each candidate’s weak points – as well as the importance of getting all the references right. INTO THE EXAM ROOM I understand that there are some candidates for the DGSA exam who think that they are so well drilled in the regulations that they do not

“MANY THANKS TO THOSE EXPERTS IN GENEVA WHO DEVELOPED ADR

We had also been warned to make sure we chose the right case study of the three options offered in the All Classes paper. Looking back, I realise I picked the wrong one, as it got more complex the further I went with it. But clearly my training worked and I got through it in the end – thanks again, Graham!

need to bother taking the course. It’s tempting, certainly, as it comes at a cost and takes them away from work for a week. But I also understand that it is often these same individuals who fail the actual exam. There is a lot to be gained by being taken through the regulations, page by page. That was certainly true for me. I learned a lot more than I thought I didn’t know, although I was glad to be taken carefully through the exemptions in 1.1.3.6 of ADR – something I knew about but didn’t quite understand. I also now understand the concept of ‘overpack’ rather better than I did, although I was surprised to learn that the maximum capacity of an intermediate bulk container (IBC) is set down in the definitions in 1.2.1 and not, as one might reasonably expect, somewhere in Chapter 4.1. I sat three papers for the exam: Core, Road and All Classes. Fortunately there was nothing on Class 7 in the last of these as that remains a lacuna in my understanding – though bizarrely I am now qualified to cover it as

PUT IT TO USE So what now? Well, I certainly have a greater respect for those who have already gone through this process, which is certainly a test of the candidate’s knowledge of the regulations as well as something of a test of the candidate’s ability to stick at it through five days of training and a pretty full day of an examination. But if the training course prepared me for the examination, neither it nor ADR itself actually explains in detail what I would do if I were to be engaged to act as a DGSA – I guess I would have to work that out as I went along. Also, it appears that the pass mark for the exam is around 70 per cent, which means that it’s possible to get 30 per cent of the answers wrong and still qualify. I have spent enough time with trainers, DGSAs and other dangerous goods experts to know that, if you put four of them in a room and give them the same question, quite often you will get four different answers, all of them justifiable but perhaps some righter than others. That makes it clear that it’s not just a matter of knowing the regulations inside out but also about understanding how they are applied in the real world – and also that sometimes there are more ways through the woods than one. The other thing I am glad about is that I was able to achieve this qualification by using ADR. I have also been writing about the US regulations for the past 25 years but if I had to go through the same process using 49 CFR I don’t think I could have done it in the same time – it is a much more complicated document and, on the face of

a DGSA. Taking the mock papers during the course had taught me to be careful with the Road paper, although in the real exam it turned out to be rather easy – so much so that I had to check whether I hadn’t missed a page out in the exam booklet. So thanks for that, SQA, it made the task a lot simpler.

it, does not appear to have been put together with a view to helping the user. So many thanks to those experts in Geneva who created ADR and made it comparatively easy to use. For my next project? Maybe it’s the IMDG Code next…

AND MADE IT COMPARATIVELY EASY TO USE”

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44 COURSES & CONFERENCES

CONFERENCE DIARY The global Covid-19 pandemic has caused the cancellation or postponement of many events planned for the next few months. A number of events have also been transformed into ‘virtual’ meetings. HCB has been trying to keep on top of developments but readers should check the dates and locations shown below as things are still changing rapidly.

JUNE Petrochemical Supply Chain and Logistics June 10-11, virtual Conference on optimising polymer and liquid petrochemical supply chains www.petchem-update.com/petrochemicalsupplychain/ LogiPharma June 16-18, virtual Digital meeting to discuss pharma logistics during Covid-19 https://uforms.wbresearch.com/ logipharmadigitalsummit/ International Transport & Logistics Week (SITL) June 23-26, virtual Annual transport event, including Dangerous Goods Logistics Pavilion www.sitl.eu/en-gb.html LogiChem June 30-July 2, virtual Digital meeting to discuss responses to Covid-19 impact on the chemical supply chain https://uforms.wbresearch.com/ logichemeuropevirtualevent2020/

AUGUST Expo Logisti-K August 11-14, Buenos Aires 14th international exhibition for logistics technology and equipment www.expologisti-k.com.ar/en/ Oil & Gas Africa 2020 August 13-15, Nairobi Ninth annual exhibition for the upstream and processing sectors in east Africa www.expogr.com/kenyaoil/ ChemEdge August 16-19, Indianapolis Conference for the North American chemical distribution sector www.nacd.com/education-meetings/meetings/ chemedge/2020-chemedge/ UKIFDA Expo 2020 August 18-19, Liverpool Annual exhibition for the fuel distribution sector in the UK and Ireland (formerly FPS Expo) https://ukifda.org/ukifda-expo/

HCB MONTHLY | JUNE 2020

PPC Fall Meeting August 30-Sept 1, Nashville Semi-annual meeting of the Petroleum Packaging Council www.ppcouncil.org/upcoming-meetings.php

sponsored by the Virginia Association of Hazardous Materials Response Specialists www.virginiahazmat.org/annual-hazmatconference/

AHMP National Conference August 30-Sept 2, Omaha Annual conference of the Alliance of Hazardous Materials Professionals www.ahmpnet.org/page/AHMP2020

ChemUK 2020 September 16-17, Manchester Supply chain expo and conference for the UK chemical industry www.chemicalukexpo.com

SEPTEMBER LogiPharma September 1-3, Nice Conference on the end-to-end pharmaceutical supply chain logipharmaeu.wbresearch.com Bulk Tanker Day September 8-9, Brisbane 12th annual road tanker event hosted by the National Bulk Tanker Association www.nbta.com.au/tankerday/ Gastech 2020 September 8-10, Singapore International conference and trade show for the LNG and LPG industries www.gastechevent.com LogiChem September 8-10, Rotterdam Chemical supply chain and logistics conference http://logichem.wbresearch.com/ Labelmaster DG Symposium September 9-11, virtual 15th annual Dangerous Goods Symposium hosted by Labelmaster www.labelmaster.com/symposium Labeline Biennial Dangerous Goods Roadshow September 15, virtual Biennial conference to provide a regulatory update to industry www.labeline.com/events/dangerous-goodsroadshow/ Virginia Hazmat Conference September 15-18, Norfolk 37th annual networking and training meeting

Pumps & Valves Asia September 16-18, Bangkok Exhibition for the ASEAN pumps, valves and fittings sector www.pumpsandvalves-asia.com CVSA Annual Conference September 20-24, Wilmington, DE Annual meeting of the Commercial Vehicle Safety Alliance www.cvsa.org/eventpage/events/cvsa-annualconference-and-exhibition/ European Bulk Liquid Storage Summit September 30-Oct 1, Cartagena Eighth annual conference on the European market for bulk liquids storage www.wplgroup.com/aci/event/european-bulkliquid-storage/

OCTOBER Argus LPG Moscow October 1-2, Moscow 15th annual event for the regional LPG sector www.argusmedia.com/en/conferences-eventslisting/lpg-2020 EPCA Annual Meeting October 4-7, virtual 54th annual meeting of the European Petrochemical Association www.epca.eu Intermodal Europe October 6-8, Rotterdam Annual trade show and conference for the container, transport and logistics industry www.intermodal-events.com

SAFETY 45

INCIDENT LOG ROAD/RAIL/AIR INCIDENTS Date

Location

28/3/20

Vehicle Type

Substance

Details

Source

Akure, truck dynamite Ondo, Nigeria

Truck carrying dynamite to quarry in Edo state developed mechanical fault, causing fire that ignited cargo; blast injured 13 people, damaged more than 70 homes; fewer people around than normal due to lockdown

Vanguard

8/4/20

Moro, road tankers Kwara, Nigeria

Three gasoline tankers and one car were in head-on collision with three other road tankers with diesel at Oloru-Kanbi; 12 died, mainly on tankers; police blamed bad driving

Guardian

14/4/20

Eveleth, road tanker — Minnesota, US

Tank truck overturned in apparent single-vehicle accident; driver was pinned in cab and died; photo showed some release of product but no indication as to nature of load

Star Tribune

20/4/20

Montgomery county, freight train herbicide Virginia, US

Freight train struck tank truck, presumably on grade crossing; cargo of Roundup weedkiller spilled from train, was contained on tracks and cleaned up; no word on contents of tank truck; one person injured

WSLS

22/4/20

Sunol, road tanker California, US

Tank truck crashed on off-ramp, spilling some diesel from fuel tank; cargo of ethanol was transferred to another tanker; one person injured in crash

East Bay Times

27/4/20

Ogba, road tanker diesel Lagos, Nigeria

Road tanker caught fire while delivering 33,000 litres diesel to NNPC filling station; fire spread to rest of filling station and neighbouring car showroom; 30 cars burned in fire; no injuries reported

Premium Times

28/4/20

Samalaju, road tanker palm oil Borneo, Malaysia

Road tanker overturned, crashed into drain on Pan Borneo Coastal Highway, spilling much of 10,000-litre palm oil load; fire crews deployed foam to prevent ignition; spill contained after wreck was craned off road

The Star

28/4/20

Afrin, road tanker fuel Syria

Bomb placed on fuel tanker exploded in market, crowded ahead of Ramadan, killing at least 47 with dozens more badly injured; officials blamed Syrian Kurdish fighters; several cars, shops caught fire

The National

29/4/20

Charlotte, rail tank car N Carolina, US

Fire crews were called to reports of leaking tank car, found spill of hydrochloric acid; nearby businesses advised to shelter in place; no injuries reported; cause of leak unclear; not known who owns the tank car

WSOC

gasoline, diesel

ethanol, diesel

hydrochloric acid

MARINE/INLAND WATERWAY INCIDENTS Date

Location

Vessel

Substance

Details

Source

25/3/20 off Malta Lady Sandra —

Inland product tanker, presumed in ballast, broke in two in rough seas 13 nm off Malta; all crew rescued, though liferaft ruptured; unclear what inland tanker, thought working as bunkering vessel, was doing in open sea

gCaptain

10/4/20

Dakhla, Aziz Torlak unknown Morocco

Oil/chemical tanker (7,620 dwt, 2010), arriving from Cartagena in load, ran aground on entry to Dakhla port; no hull damage or pollution reported; vessel refloated 11 days later with tug assistance

FleetMon

11/4/20

off Zhoushan, Ningda 10 unknown Zhejiang, China

Coastal tanker, thought to be in cargo, grounded on rocks 11 nm off Zhoushan while en route Ningbo; hull was damaged, causing water ingress; all crew rescued with no reported injuries; no word on pollution

Shipwreck Log

13/4/20

Detroit, Michigan, US

Tug and barge with some 95,000 bbl diesel for Green Bay ran aground on mud bank in mouth of Detroit River in Lake St Clair; USCG attended, found no leak; investigation underway

Shipwreck Log

15/4/20

Tanjung Penyusop, Wan Da unknown Johor, Malaysia

Product tanker (500 dwt, 1989), thought to be in cargo, capsized off Johor; all crew rescued; wreck drifted into shipping lanes and had to be taken under tow to Riau Islands; some pollution spotted at site of capsizing

Shipwreck Log

Details

Source

Albert/ diesel Margaret

MISCELLANEOUS INCIDENTS Date

Location

Plant type

Substance

11/3/20

Delaware City, oil refinery oil Delaware, US

Two workers seriously injured when fire broke out at PBF Energy refinery; nearby roads closed as smoke drifted over wide area; no details on what happened but investigation will be undertaken

Delaware News J’l

15/3/20

Pengerang, oil refinery diesel Johor, Malaysia

Five people killed in explosion, fire in diesel hydrotreater unit at Pengerang Integrated Complex, jointly owned by Petronas and Saudi Aramco; cause of blast unclear but operator will conduct full inquiry

Insurance Journal

15/3/20

Festac, pipeline oil Lagos, Nigeria

Tipper offloading sand caught fire, which spread to nearby pipeline that had earlier been vandalised by oil thieves; massive explosion killed at least 15, destroyed some 50 buildings over wide area

Channels TV

10/4/20

Meraux, oil refinery oil Louisiana, US

Explosion, fire in one of the processing units at Valero refinery caused one minor injury; blast could be felt across the Mississippi River in Algiers; fire put out in two hours; cause of explosion not known

WWL

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STAY SAFE

and that space would run out in a matter of weeks. That leaves the supply chain looking for alternatives.

CAPACITY • THE COVID-19 PANDEMIC HAS CAUSED CHAOS TO SUPPLY CHAINS, WITH GOODS PILING UP AROUND THE WORLD. TT CLUB HIGHLIGHTS SOME POTENTIAL PROBLEMS THE EFFECT OF the current lockdown around the world on global supply chains has been well documented, with storage terminals filling up rapidly and tankers being repurposed for storage. Similar stories have come from the chemical supply chain, with tank containers increasingly being used as temporary storage. But all supply chains have responded to slowing consumer demand, with cargo building up in warehouses, terminals and inland depots. International freight and logistics insurer TT Club has some warnings.

in its effects between the large-scale sourcing regions of China and other parts of Asia and the consuming markets of Europe and North America has caused significant build-ups of goods produced in the former regions but not now required in the latter. Such accumulations include cargo in containers at both transhipment and destination port terminals, as well as import consignments that have been delivered to warehouses and distribution centres (DC). These are primarily non-essential products, for which there is little

STAY SECURE “Security is clearly the most dominant of the risk issues as operators seek alternative storage,” says Michael Yarwood, managing director of Loss Prevention at TT Club. “Whether it’s taking up buildings not usually used for storage or laden vehicles parked adjacent to a full warehouse, or simply facilities unfamiliar to the operator, the security regime may not be of a similar standard. This concern is not just limited to fencing, lighting, security patrols and CCTV, but also communication with hauliers delivering cargo to the unfamiliar premises. There is also the constant danger of vehicles being diverted into the hands of criminals.” The physical characteristics of a temporary facility may also be unsuitable in many ways,

The crisis has disrupted global supply chains in a wide variety of ways. In particular, the lag

demand as retail outlets are closed or supplies for production lines that are either static or at reduced capacity. As an indication of the level of disruption, the UK Warehousing Association (UKWA) announced in April that 90 per cent of the country’s warehouse capacity was full

such as weather-tightness, phytosanitary issues, or uneven hard standing. Further, consideration needs to be given to the nature of the cargo and the capability to handle and store hazardous materials and specialised commodities correctly (such as high value or temperature controlled). These factors

 SHIPPERS MAY BE LUCKY TO FIND SUITABLE WAREHOUSING SPACE DURING THE CURRENT CRISIS

HCB MONTHLY | JUNE 2020

SAFETY

may also extend to inappropriate or substandard handling equipment and the requirement to subcontract labour and security personnel from previously unknown sources. Where possible, established standards should be maintained, including undertaking full due diligence. Yarwood also draws attention to the importance of maintaining records and an efficient documentation ﬂow. “In a situation where goods and cargo units are located in unusual facilities, perhaps off-site at some distance, it is vital for accurate records of movements, storage times and potential drawdown requirements to be preserved.” It may be that these bottlenecks in supply chains resulting from weak demand will be resolved as manufacturers and suppliers respond by putting less product into the chain. However, TT Club says, one knock-on effect currently being experienced is that some port

terminal operators, along with their ocean carrier customers, are attempting to help importers by delaying delivery and/or providing temporary storage for containers. RESPONDING TO DEMAND Peregrine Storrs-Fox, TT Club’s risk management director, adds: “There will be regional variations within these trends of course. As inbound congestion on terminals rises, we are seeing some European ports offering off-terminal storage for undelivered import containers. In the current extraordinary environment, all involved in the supply chain should be taking extra steps to assist in finding solutions. Care must be taken however to ensure that in providing such a facility, operators do not expose themselves to additional liability and risk.” Many of the potential risks and liabilities that apply to warehouse and DC operators

will face a terminal or carrier in placing undelivered containers in temporary storage locations. In addition, container and cargo damage potential could be heightened in facilities unaccustomed to handling full containers. There is a heightened risk of phytosanitary issues where off-terminal storage locations may have less permanent surfaces or increased exposure to vegetation and pest ingress, particularly if the storage is long-term. The dwell time of such containers may also become an issue if the cargo is eventually abandoned as the goods become ‘off-season’ or the importer ceases to trade. The question of traceability then becomes a more critical issue. TT Club is continuing to monitor the situation and now has a dedicated page on its website with links to a range of resources and advice on business operations during the crisis. This can be found at www.ttclub.com/newsevents/coronavirus-guidance/.

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ship, while Vopak’s PIC was responsible for the shore valves. At that point there was a shift change at the terminal, with the incoming dockman taking over the role of PIC. The ship was not informed of the change.

IT’S GOOD TO TALK OVERPRESSURISATION • SHIP/SHORE COMMUNICATION IS VITAL TO ENSURE SAFE CARGO HANDLING. A RECENT REPORT FROM NTSB SHOWS WHAT CAN HAPPEN WHEN IT FAILS AN INCIDENT ABOARD the chemical tanker Fairchem Filly in May 2019, during which a cargo tank suffered overpressurisation that caused damage to the ship and contaminated the cargo, was probably due to personnel failing to follow policies and procedures, combined with a lack of effective communication. This is the conclusion of an incident investigation undertaken by the US National Transportation Safety Board (NTSB), whose report on the incident has recently been released. Fairchem Filly, a 2007-built chemical tanker with 20 stainless steel cargo tanks, arrived at Vopak’s Deer Park terminal on the Houston Ship

began. Three of the ship’s crew, including the chief officer, and three shoreside personnel were involved. Only four of the cargo tanks were in cargo: one part-loaded with methyl isobutyl ketone and three full with hexene. Hexene must be carried under a blanket of inert gas in order to prevent it being contaminated by oxygen; Fairchem Filly was using nitrogen as a blanket over the cargo. During discharge, the ullage volume increases as the cargo is pumped off, so additional blanketing must be provided. In this case, Vopak was supplying nitrogen from a shoreside system.

Channel on 30 May 2019. Once the vessel was securely moored, cargo discharge operations

Vopak’s person in charge (PIC) met the chief officer onboard the ship and discussed the planned discharge; they completed the necessary paperwork and established the means of communication using UHF radio. The ship’s pumpman was assigned the task of operating the cargo manifold valves on the

 POOR SHIP-SHORE COMMUNICATION WAS BEHIND THE DAMAGE TO THE CHEMICAL TANKER

HCB MONTHLY | JUNE 2020

THE ACCIDENT BEGINS Discharge began from two of the tanks with hexene and, around 30 minutes later, low inert gas pressure alarms for both tanks sounded in the cargo control room. The chief officer made several attempts to contact the Vopak PIC by radio but failed to reach him. He ordered the ship’s pumpman to fully open the ship’s nitrogen valve, although he could not know whether the terminal’s nitrogen valve was open and, if open, how far. Shortly after, a further alarm indicated that the two tanks were experiencing high pressure and both pressure relief valves opened. The crew reported that the vessel “surged” and ballast water began flowing through the vent and onto the deck. They turned off the cargo pumps to prevent the ballast water spilling over the side of the vessel. The chief officer then re-established contact with the Vopak PIC and informed him that the vessel had experienced overpressurisation in both cargo tanks and that one had ruptured, releasing hexene into the adjacent ballast tank. All valves were closed and cargo transfer operations ceased. After the accident, the vessel’s cargo pressure monitoring system showed that the pressure had peaked at 109 kPa; the pressure relief valves were set to open at 20 kPa. Following repairs at a nearby shipyard, damage to the vessel was estimated at $750,000. The loss of the contaminated cargo was valued at some $100,000. WHERE IT WENT WRONG NTSB’s investigation found a number of failures on the part of both the crew and the terminal. The ship’s Quality, Health, Safety and Environment Management (QHSE) manual specified that, when receiving nitrogen from shore to blanket cargo, a 1-inch hose or orifice must be installed between the shore hose and the ship’s manifold in order to control the flow of nitrogen; during the incident, a 4-inch hose was connected directly to the manifold. The

SAFETY

QSHE manual also referred to a Nitrogen Handling Checklist, but this was not completed prior to the incident. The terminal’s policy called for a Nitrogen Supply Acknowledgment to be completed by the ship’s chief officer and the Vopak PIC prior to supplying nitrogen, stating the different procedures for purging and blanketing. This was not completed prior to the incident. A ‘work instruction’ for liquid cargo handling specified a 2-inch nitrogen hose, though the associated ‘work instruction’ for nitrogen blanketing had no similar specification. NTSB’s investigation found no fault with the pressure relief valves on the vessel. However, the report notes that, with a 4-inch hose and valves fully open, the terminal could move 250,000 ft³/hour of nitrogen, while the relief valves had a capacity of 17,057 ft³/hour. “Without

accurate and ongoing throttling of the nitrogen control valves, the risk of overpressuriation was constant,” the report states. At the point where the chief officer was alerted to low pressure in the tanks, his decision to instruct the pumpman to fully open the nitrogen valve meant that there was no capability to control the flow of nitrogen, while at that point there was no communication with the Vopak PIC and the dock’s valve position could not be verified. The incident could have been avoided if, at that point, he had shut down the discharge operation. Although both the terminal and operator of the vessel had procedures and control measures in place that clearly outlined a nitrogen blanketing operation, the procedures were not followed on the day of the accident, NTSB notes. In particular, the use of a 4-inch

nitrogen transfer hose removed the engineered controls designed to limit the flow rate. The crew’s failure to consult the Nitrogen Handling Checklist contributed to this error. NTSB determines that the probable cause of the overpressurisation and cargo tank rupture during offloading was the failure of both vessel and terminal personnel to follow established policies and procedures for cargo discharge and nitrogen blanketing. Contributing to the casualty was the lack of effective communication between the vessel and terminal personnel and the decision by the vessel’s PIC to continue discharge operations when unable to communicate with the terminal. NTSB’s investigation report can be consulted in full at www.ntsb.gov/investigations/ AccidentReports/Reports/MAB2014.pdf.

FIRE IN THE HOLD

the Mantle FCC offers airlines the opportunity to carry lithium ion batteries in a range of cargo holds and spaces, effectively creating a greater scope of possibilities to expand existing contracts as well as opening doors to new business.

AmSafe Bridport says it is the first company to achieve C203 certification from TSO for Type 1 FCCs and is now looking to reinforce its position and the leading FCC manufacturer and provider. amsafebridport.com

LITHIUM BATTERIES • TECHNICAL ADVANCES IN FIRE CONTAINMENT SYSTEMS ARE OPENING UP NEW STANDARDS FOR THE TRANSPORT OF LITHIUM BATTERIES BY AIR AMSAFE BRIDPORT’S MANTLETM fire containment cover (FCC) has passed another demanding test, becoming the first such unit to undergo a six-hour fire containment test in a 1 m³ space. The test used 4,800 lithium ion batteries, all at a 50 to 70 per cent state of charge and put into thermal runaway. During the test, internal temperatures reached more than 1,500˚C. “Mantle is the only product in the world to contain a fire of this intensity and within such a small space,” AmSafe says. By reducing risk and improving safety,

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WAITING TO HAPPEN

JUNE 2011 MAY be nine years ago now, but the deaths of four workers at Chevron’s Pembrokeshire refinery do not deserve to be forgotten. The UK Health & Safety Executive (HSE) has published a full report on that incident, which highlights the various safety failings and management shortcomings that led inevitably to the fatalities. Shortly after the explosion on 2 June 2011, HSE issued a safety alert to inform industry of the preventative measures required to avert a similar occurrence. “The investigation was complex and we can now share further information about the underlying causes, so that everyone in major hazard industries (not just those involved in tank storage or tank cleaning) can learn from this incident, understand what went wrong, and apply

HSE is quite clear about the causes of the incident. The report states: “The investigation revealed a longstanding and widespread failure to understand and control risks posed by the flammable atmosphere inside the tank. The explosion and the resulting fatalities were therefore avoidable. The incident was not merely the consequence of errors by individual employees, but because of the failure of safety management systems to ensure a safe place and safe systems of work.” TANKS IN QUESTION During what should have been a routine cleaning operation on an atmospheric storage tank within the amine regeneration unit (ARU) of the refinery, an explosion split the tank open, killing four workers on the

The ARU was fitted with two breathable tanks, one used for the separation of waste streams and the second acting as the reservoir for lean diethanolamine, used in the scrubber to strip hydrogen sulphide from petroleum. The stripping process also caused some light hydrocarbons to become entrained in the amine solution; this was designed to be skimmed off in a surge drum. Both storage tanks included a 300-mm blanket of diesel to inhibit oxygen ingress. The HSE report details how changes had been made to the system over the years. Indeed, the two tanks, designed for different purposes, had been used interchangeably. HSE also notes how a proportion of the light hydrocarbons, designed to be skimmed off in the surge drum, accumulated over time in the amine running tank and were taken up by the diesel blanket. This had, over time, expanded in size to 900 mm deep and could no longer be regarded as diesel due to the change in composition. This blanket therefore needed to be siphoned off at intervals. This was not a normal design process and HSE states: “Looking back, HSE believes there were a number of significant events that should have alerted the refinery management team to the presence of light hydrocarbon within the

lessons to their own organisations,” says Jane Lassey, director of HSE’s Chemicals, Explosives and Microbiological Hazards Division, in her introduction to the report. “Although a number of years have elapsed since the incident, the information contained within this report remains highly relevant today.”

spot and severely injuring a fifth; the force of the blast ejected the 5-tonne steel tank roof more than 55 metres through the air. It narrowly missed a pipe rack and landed on a pressurised storage sphere containing butane – luckily the sphere was not punctured.

running tank. These events presented several opportunities to reduce risk and prevent the incident, through the critical review and refreshing of risk assessments, training and maintenance arrangements. Regrettably, the significance of these opportunities went unrecognised.”

ACCIDENT REPORT • SAFETY MANAGEMENT FAILINGS WERE AT THE ROOT OF THE FATAL EXPLOSION AT CHEVRON’S PEMBROKE REFINERY IN JUNE 2011, HSE’S FINAL REPORT CONCLUDES

HCB MONTHLY | JUNE 2020

SAFETY 51

THE TRAGEDY UNFOLDS Some weeks before the explosion, the tank was drained; however, the plant operator who undertook the task was unfamiliar with the valve manifold and was unaware of the internal sump and drain equipment, which was necessary to empty the tank completely. As a result, there was liquid left in the tank when it was described as ‘empty’. Similarly, when the tank was then isolated from the rest of the process unit with ‘spades’, the Chevron employee responsible for the work was unaware of the presence of diesel, light hydrocarbons or potentially pyrophoric material in the tank. The contractors fitting the spades did encounter a significant flow of liquid gushing from the tank when isolating the inlet and outlet lines at the bottom of the tank and further spills took place when the contractors removed a shell manway to ventilate the tank. It was erroneously believed that diethanolamine had leaked back into the tank through the process lines after being emptied. It was decided that the cleaning contractor, B&A Contracts, should remove the remaining liquid by sucking through the roof manway using a vacuum tanker. This was to be done without ventilating the tank. This modified system of work was decided on verbally and, HSE says, “insufficient consideration was given to the application of safer, alternative systems of work”. Before this work was done, the plant operator was asked to carry out a gas test and manual dip test. The dip test recorded a liquid depth of 36 cm but the operator was unaware that there was a dip plate fitted near the base of the tank to protect against impact damage from repeated dip testing; as a result, the true liquid depth was closer to 46 cm. Further, the plant operator had no previous experience of carrying out a gas test and took only one measurement, whereas the requirement is for several measurements to be taken in different parts of the tank.

Furthermore, while B&A Contractors had a four-year contract with the refinery for the cleaning of storage vessels, it had only worked on those containing diesel, kerosene, gasoline, slop fuel oil and water. Both Chevron and B&A staff proceeded on the basis that the amine tank was equivalent to the normal work under the contract. The planning team had, HSE says, “an incomplete understanding of what was in the tank, including the potentially flammable atmosphere resulting from light hydrocarbon contamination of the running tank”. In addition, HSE says, “generally there was insufficient evaluation of the risk posed by static ignition sources, particularly B&A’s work equipment”. CAUSES AND FAILURES On the day of the explosion, B&A staff were on site along with employees of Hertel, who acted as fireguards. Two people were on top of the tank, feeding a two-inch non-conductive hose through the manway; the vacuum tanker was parked nearby, with the hose connected to its rear inlet. This was a four-inch fitting and a non-standard adapter had been fitted to attach the smaller hose. HSE notes that this reduction in diameter would have significantly increased the linear velocity of the liquid being drawn into the tanker and increased the extent of static charging.

The explosion ripped the tank shell away from the floor, emitting a fireball that engulfed the vacuum tanker and three people nearby; the roof was blow off, killing the two people stood on top. HSE has identified two potential sources of ignition: either the discharge of static electricity from a scaffolding pole attached to the end of the hose inside the tank to weigh it down (apparently common practice), or the spontaneous ignition of iron sulphides present in the tank. Neither can be shown definitively to be the cause. More fundamentally, HSE found a long list of safety management failings on the part of both Chevron and B&A. In particular, procedures developed by Chevron were often inadequate and/or overlooked or ignored; the site’s permitting system was not linked to hazardous area classification; the contracting process was inadequate; site risk assessments were too generic and failed to take account of specific hazards; there was no meaningful risk assessment of tank cleaning operations; refinery personnel engaged in safety-critical tasks lacked the knowledge or experience to carry out those tasks adequately; and B&A employees were not properly trained. HSE highlights some broader lessons to be drawn from the incident. The law requires that companies should possess clear and accurate information regarding hazardous material

 THE DEATHS OF FOUR WORKERS AT THE CHEVRON REFINERY IN PEMBROKE WERE AVOIDABLE BUT, HSE SAYS, GIVEN SAFETY MANAGEMENT FAILINGS, WERE INEVITABLE

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stored within tanks. Furthermore, all employees and contractors involved in planning and maintenance activities on tanks should know and understand the dangers presented by the materials inside. This should include rigorous analysis (including sampling when appropriate) of the hazards of all constituents remaining within the tank prior to starting removal work. Section 2.5 of the Energy Institute’s Model Code of Safe Practice Part 16: Guidance on Tank Cleaning contains detailed information regarding pre-cleaning checks and inspections. A risk assessment and the establishment of clear work instructions for any tank cleaning operation should be conducted by trained and competent staff. To organise the work as safely as possible, the planning and preparation work should be based on knowledge of the hazardous tank contents, combined with a good understanding of and adherence to the published HSE guidance and specific tank cleaning standards, for example the Energy Institute’s Model Code of Safe Practice.

CASE CLOSED HSE believes that the four deaths were preventable. The fact that the tank contained flammable material emerged several times, but Chevron did not take the opportunity to train staff and update its systems. Any change of plant operation should be critically risk assessed, adequately controlled and relevant systems updated accordingly, to ensure the significance of a newly generated hazard is not lost over time. This is particularly important where hazardous waste streams are recycled back into the process. Other opportunities to prevent the explosion were also missed. Two days before the incident, a gas test indicated a potentially explosive atmosphere within the tank, but this information was either not shared or acted upon by those planning or carrying out the job. Companies should reflect upon this failure and review their own systems to ensure that they provide training and arrangements for the recording and communication of important safety-critical information.

This incident clearly demonstrates that safety management systems are only effective when robustly audited, monitored and enforced. Safety arrangements that have been allowed to degrade over time become weak and ineffective. Whilst providing an illusion of safety and risk control, as seen in this case, ineffective systems do not remain strong enough to prevent real harm occurring. Charges were laid against Valero Energy UK Ltd, which had acquired the refinery from Chevron, and against B&A Contracts Ltd, both under the Health & Safety at Work etc Act 1974. Valero pleaded guilty and was fined £5m with £1m costs; B&A also pleaded guilty and was fined £120,000 with £40,000 costs. HSE’s report includes the sentencing remarks of the Hon Mr Justice Lewis, which explain the judgment in greater detail. The full report can be accessed via the HSE website at www.hse.gov.uk/comah/chevronpembroke-report-2020.pdf.

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HCB MONTHLY | JUNE 2020

SAFETY 53

GETTING WET DRY BULK • CARGO LIQUEFACTION HAS CAUSED A NUMBER OF SHIP LOSSES OVER THE PAST DECADE, TAKING A HEAVY TOLL ON SEAFARERS’ LIVES. INTERCARGO WANTS ACTION IN THE TEN years to the end of 2019, a total of 39 dry bulk carriers were lost, according to data released by the International Association of Dry Cargo Shipowners (Intercargo). The sinking of the 52,400-dwt Nur Allya off Indonesia in August 2019 spoilt what would have been a welcome trend in the decline in the number of losses but this incident also highlights the seemingly intractable problem of cargo liquefaction. Of the 39 losses during the decade beginning 2010, eight bulkers were lost due to cargo shift or liquefaction, not counting Nur Allya, as the cause of its sinking is not known – although it was carrying nickel ore from Indonesia,

as were six of the eight ships where cargo liquefaction has been pinpointed as the cause. The other two involved fine iron ore (Bright Ruby, which sank off Hong Kong in November 2011) and bauxite ore (Bulk Jupiter, which sank off Vietnam in January 2015); both of these cargoes were loaded in Malaysia. Cargo liquefaction incidents place a heavy toll on life. Of the 173 fatalities recorded as a result of the 39 ship losses over the period under review, 131 happened as a result of cargo liquefaction (if Nur Allya is included). When a bulk cargo becomes unstable, so does the ship. This means that the ship can capsize very quickly, often without warning, giving the crew no time to evacuate. LEARNING THE LESSONS In its commentary to the statistical report, Intercargo says that the loss of Nur Allya “cast a shadow over the industry’s excellent safety performance” in 2018, when no losses were recorded. “This incident alone clearly demonstrates there is no room for complacency,” the Association says.

Intercargo also calls for more rapid incident investigation and publication of incident reports. “Lessons learned from past incidents play an important role in determining where additional safety improvements are necessary, both at an industry and an international level,” it says. “To this end the prompt publication of thorough and complete casualty investigation reports remains a key objective of the industry. It is vitally important that casualty investigation reports are submitted to the International Maritime Organisation (IMO) in a timely manner so that the root causes of serious incidents can be properly identified and the appropriate corrective actions taken.” Intercargo says it finds it “difficult to accept” that accident reports on only 24 of the 39 recorded incidents have been made available on IMO’s Global Integrated Shipping Information System (GISIS) database and that the average time between an incident and the publication of the investigation report is 32 months. However, those lessons that need to be learned are feeding through into regulatory changes. Amendment 05-19 to the International Maritime Solid Bulk Cargoes (IMSBC) Code, which takes effect on 1 January 2021, includes lessons learned from the Bulk Jupiter incident, with new instructions on the carriage of bauxite fines: This cargo may suffer instability due to moisture content resulting in dynamic separation and formation of a liquid slurry (water and fine solids) above the solid material, leading to a free surface effect which may significantly affect the ship’s stability. This cargo is not liable to undergo dynamic separation when the cargo is shipped below its TML [transportable moisture limit]. Similarly, the investigation into the foundering of Stellar Daisy in March 2017 has led IMO to consider additional measures for bulk carriers in the International Convention for Safety of Life at Sea (Solas) and the International Code on the Enhanced Programme of Inspections during Surveys of Bulk Carriers and Oil Tankers (ESP Code) to close gaps that the investigation identified. Intercargo’s report can be downloaded in full from its website at www.intercargo.org/ wp-content/uploads/2020/04/INTERCARGO-BulkCarrier-Casualty-Report_2020-web-PRESS.pdf.

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KEEP IN STEP MULTIMODAL • THE UN EXPERTS HAD PLENTY TO CHEW ON AT THEIR DECEMBER 2019 SESSION, INCLUDING SEVERAL ISSUES RELATING TO MULTIMODAL HARMONISATION THE UN SUB-COMMITTEE of Experts on the Transport of Dangerous Goods (TDG) held its 56th session this past 4 to 10 December with Duane Pfund (US) as chair and Claude Pfauvadel (France) sitting as vice-chair. The session was attended by experts from 18 countries and representatives from the EU, the Intergovernmental Organisation for International Carriage by Rail (OTIF), the International Civil Aviation Organisation (ICAO), the International Maritime Organisation (IMO), the Food and Agriculture Organisation (FAO), the World Health Organisation (WHO) and 20 non-governmental organisations. The session was the second of four planned

for the current regulatory biennium, which will result in the adoption this coming December by the parent Committee of the changes that will appear in the 22nd revised edition of the UN Recommendations on the Transport of Dangerous Goods (alternatively known as the UN Model Regulations or the ‘Orange Book’). The first part of this three-part report on the December meeting (HCB April 2020, page 50) covered discussions on the transport of explosives, classification and packaging, and electric storage systems. The second part (HCB May 2020, page 57) focused on some significant changes involving the

transport of gases. This final part looks at the other proposals for amendment and discussions surrounding harmonisation with other regulations. HAZARD COMMUNICATION The Council on Safe Transportation of Hazardous Articles (COSTHA) recalled how the Sub-committee had agreed in 2004 that there was a need to differentiate the hazard communication for oxidisers and organic peroxides and had adopted the new red/yellow label and placard for Division 5.2 organic peroxides. COSTHA felt that, given this obvious distinction from the all-yellow label and placard for Division 5.1 oxidising substances, indicating the division number in the lower portion is superfluous and that this should be changed to show just the class number. The Sub-committee failed to see any safety benefits in the idea, although it acknowledged the rationale behind the proposal. On balance, it was not supported. Spain and the International Association of Fire and Rescue Services (CTIF) followed up on their joint proposal at the previous session to improve hazard communication in the transport of gases. Their point was that, while the inclusion of the gas cylinder image within the Division 2.2 label clearly identifies the hazard, the same is not true of the labels for Divisions 2.1 and 2.3, which are, at least from a distance, hard to distinguish from those for Classes 3 and 6, respectively. The original proposal had sought to include the gas bottle symbol in the lower half of labels 2.1 and 2.3. That proposal was not dismissed but it did generate no little discussion. It had been decided to set up a correspondence group to continue the work, which in the interim had provided a forum for an exchange of views. It had recognised the safety benefits but had also identified some serious difficulties in implementation, not least that there are around 2 billion cylinders in use around the world, already labelled. Indeed, an informal document from the World LPG Association (WPLGA) and Liquid Gas Europe (LGE) pointed out that it was far from clear whether the change would correct erroneous responses on the part of the emergency services since,

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having searched for examples of erroneous response, had found none. Furthermore, there are many other ways of communicating the hazard. Nonetheless, work did carry on in a lunchtime working group, where it was agreed that the original proposal did not offer a suitable way to deal with the matter. Some compromises were suggested, and the group also thought that the emerging digital solutions for hazard communication could make the topic irrelevant. At the end of all this, Spain indicated that work would continue intersessionally and that another formal proposal would be forthcoming at a future session. PACKAGING PROPOSALS A joint paper from the International Confederation of Plastics Packaging Manufacturers (ICPP) and the International Confederation of Container Reconditioners (ICCR) urged the extension of the existing permission for the use of recycled plastics in the manufacture of packagings for dangerous goods. The subject had been raised at the previous session and received some support, it being felt that this would support the EU Commission’s pledge to increase the level of plastics recycling and other similar initiatives around the world. Currently, the use of recycled plastics is limited to plastics drums and jerricans; the paper sought to extend this to rigid plastics intermediate bulk containers (IBCs) and to composite IBCs with plastics inner receptacles. Belgium thought it might be worth considering a more generic approach, although the general mood of the Subcommittee was to limit any changes at this point to those proposed by ICPP and ICCR. The amendment, agreed on a vote, involves the insertion of a new sentence after the first sentence in both 6.5.5.3.2 (for rigid plastics IBCs) and 6.5.5.4.6 (for composite IBCs): Except for recycled plastics material as defined in

 RECYCLED PLASTICS ARE WIDELY USED IN ALL MANNER OF APPLICATIONS AND SOME FEEL THAT THEY SHOULD BE ALLOWED IN THE CONSTRUCTION OF PACKAGINGS FOR THE TRANSPORT OF DANGEROUS GOODS

1.2.1, no used material other than production residues or regrind from the same manufacturing process may be used. Paragraphs 6.5.5.3.5 and 6.5.5.4.9 are deleted. There was no support for the proposal to delete the provisions on quality assurance as it was felt there remains a need for a harmonised approach. Germany sought to pin down the wording proposed earlier on alternative service equipment for IBCs, which had been left in square brackets. There had been disagreement whether the wording “to withstand the tests”, as used in 6.1.1.2, 6.3.2.1 and 6.6.1.3, should also be used for IBCs in 6.5.1.1.2, or whether the originally proposed “to fulfil the test requirements” worked better in this context. The Sub-committee agreed a slight compromise, so that 6.5.1.1.2 will now read: The requirements for IBCs in 6.5.3 are based on IBCs currently in use. In order to take into account progress in science and technology, there is no objection to the use of IBCs having specifications different from those in 6.5.3 and

It was, though, felt that some consequential amendments were needed in Chapter 1.2 and in 4.1.1.9; Germany will consider these in a separate paper. Germany also brought another paper with a consequential amendment necessary as a result of special packing provision B15 in packing instruction IBC02, to clarify that it applies to the inner receptacles of composite IBCs rather than the composite IBC as a whole. This too was agreed, with the words “of composite IBCs with a rigid plastics inner receptacle” replaced by “of rigid plastics inner receptacles of composite IBCs” in B15. Switzerland felt that packagings for Category A medical waste (UN 3549) should be subject to the same requirements as those for UN 3814 and 2900 and that their use should not be limited to five years. In an informal document it offered some changes in 4.1.8. There was both support and opposition to the proposal, although those who supported it in general felt a change to packing provision P622 would be better. It was also suggested that, if Switzerland felt strongly about the issue it could issue a derogation.

6.5.5, provided that they are equally effective, acceptable to the competent authority and able to successfully fulfil the requirements described in 6.5.4 and 6.5.6. Methods of inspection and testing other than those described in these Regulations are acceptable, provided they are equivalent.

After the discussion, Switzerland said it would consider making a revised proposal. TANK PROPOSALS The informal working group on fibre-reinforced plastics (FRP) portable tanks gathered at the beginning of the session for three days, with »

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ten government delegations and several industry representatives taking part. It reviewed the work completed through correspondence prior to the session on design approval, inspection, marking, manufacturer quality assurance and specific design criteria. The chair of the group informed the Subcommittee that, while additional work is still needed, a large proportion of the text needed to accommodate FRP tanks within the regulations has now been drafted. It hoped to gather again during the 57th session and to present draft proposals at that meeting. The UK asked that titanium should be taken into account as a material for the construction of the shells of portable tanks; this is more compatible with certain dangerous goods. While Chapter 6.7 allows tanks to be constructed from metals other than steels, aluminium and aluminium alloys, it does not include minimum properties for other metals and it may be possible to use a grade of titanium that could be too brittle. Its paper offered an addition to 6.7.2.3.3.3 to clarify the position. There was support in principle for the idea but the text provided by the UK was questioned. The UK expert invited others to send comments in writing so that the proposal can be revised accordingly, with the assistance of Germany.

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“A LARGE PROPORTION OF THE TEXT NEEDED TO ACCOMMODATE FRP TANKS WITHIN THE UN REGULATIONS HAS BEEN DRAFTED”

OTHER PROPOSALS The European Aerosol Federation (FEA) and the Household and Commercial Products Association (HCPA) returned to a topic they had raised at the previous session, namely the idea of raising the maximum internal pressure of aerosol dispensers. There was support in principle, with some experts noting that RID and ADR have already moved on this issue, although there was debate as to where best to put the proposed amendment. China also thought it worth including provisions addressing aerosols containing different propellants. As a result, the proposal was withdrawn but FEA will work with interested delegations to draw up a revised proposal. Belgium had earlier noticed a difference between the English and French texts of 2.2.8.3(c)(ii), dealing with the types of steel to be used in classification for corrosivity. It offered some options for the resolution of this problem. The Sub-committee chose the simplest, which was to delete the words “or a similar type” after “(UNS) G10200”. There is also a small change in what is now 37.4.1.2(b) in the Manual of Tests and Criteria. Germany and the European Chemical Industry Council (Cefic) returned as promised with a proposal to define the meaning of “structurally serviceable”, which is not harmonised across the modal regulations. Information on the background of the existing text provided by the secretariat had clarified some issues but it was still not clear why the current text focuses on Class 1 substances nor where the 19 mm limit for dents and bends comes from. While there was opposition from the US for any change, other delegations felt a harmonised approach across all modes would be justified. On a vote, the proposals were adopted. The main change is the addition of text after the existing paragraph in 7.1.1.6: The cargo transport unit shall be checked to ensure it is structurally serviceable, that it is free of possible residues incompatible with the cargo and that the interior floor, walls and ceiling, where applicable, are free from protrusions or deterioration that could affect the cargo inside and that freight containers are

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free of damages that affect the weather-tight integrity of the container, when required. Structurally serviceable means that the cargo transport unit is free from major defects in its structural components. Structural components of cargo transport units for multimodal purpose are e.g. top and bottom side rails, top and bottom end rails, corner posts, corner fittings and, for freight containers, door sill, door header and floor cross members. Major defects include: (a) Bends, cracks or breaks in structural or supporting members and any damage to service or operational equipment that affects the integrity of the unit; (b) Any distortion of the over-all configuration or any damage to lifting attachments or handling equipment interface features great enough to prevent proper alignment of handling equipment, mounting and securing on chassis, vehicle or wagon, or insertion into ships’ cells; and, where applicable; (c) Door hinges, door seals and hardware that are seized, twisted, broken, missing or otherwise inoperative. NOTE: For filling portable tanks and multipleelement gas containers (MEGCs), see Chapter 4.2. For filling bulk containers, see Chapter 4.3. There is also a consequential amendment in 4.3.1.15, where indents (a) to (i) are replaced with the following (a) to (c): (a) Bends, cracks or breaks in the structural or supporting members and any damage to service or operational equipment that affects the integrity of the container; (b) Any distortion of the overall configuration or any damage to lifting attachments or handling equipment interface features great enough to prevent proper alignment of handling equipment, mounting and securing chassis or vehicle, or insertion into ships’ cells; and, where applicable. (c) Door hinges, door seals and hardware that are seized, twisted, broken, missing, or otherwise inoperative. Germany took issue with the information to be included on the transport document

document that they are being used for salvage operations? As things stand, the provisions are illogical, Germany said. There was general agreement with Germany’s point though no agreement was reached on how to resolve it. The expert from Germany said she would work with those who commented, with the aim of submitting a revised proposal at a future session. During its work to prepare a consolidated version of the Manual of Tests and Criteria, the secretariat had noticed an inconsistency in the arrangement of 37.4, dealing with Test C.1. The Sub-committee agreed and rearranged the structure of that section so that the Introduction is now in 37.4.1.1. Spain had spotted a consequential amendment that had been overlooked earlier. In the 2017 edition of the Model Regulations new text was introduced in 3.1.2.6(b) to indicate that the words “TEMPERATURE CONTROLLED” must be included as part of the proper shipping name when temperature control is used for stabilisation, but 5.4.1.5.4 was not amended accordingly. Spain also thought it worthwhile to expand on the use of the word “MOLTEN” in the proper shipping name, in the same way as other terms are set out in 5.4.1.4.3. While there was general support for the amendments, several delegations provided comments. Moreover, as the proposals had been made in informal documents, Spain was invited to consolidate all the proposed amendments, taking the comments into account, in an official document for the next session.

when using salvage packagings. This works when using salvage packagings that are type-approved and marked “T” but the regulations allow other appropriate packagings or large packagings for salvage operations, which are not mentioned in 5.4.1.5.3. In such cases, should it be indicated in the transport

the working group has included alignment with GHS and ADR. The experts were invited to consider some proposals and to provide any comments to their counterparts. It is unlikely that any changes made by the expert working group will be approved until 2023.»

GLOBAL HARMONISATION The Secretariat of the Basel, Rotterdam and Stockholm Conventions on the control of trans-boundary movements of hazardous wastes and their disposal presented a brief report on the ongoing discussions of an expert working group on the revision of Annexes I to IV of the Convention. In terms of Annex III,

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The UN ECE Secretariat submitted a note with comments made by the RID/ADR/ADN Joint Meeting Ad Hoc Working Group on the harmonisation of RID/ADR/ADN with the UN Recommendations following work by the Joint Meeting to consider the latest round of amendments dropping down from UN level. Germany had raised a question about the reference to “except for animal material” in table 1.10.3.1.2 of RID/ADR/ADN (Table 1.4.1 in the Model Regulations), its point being that, while ‘animal material’ was formerly mainly carried in cultures and therefore by default was considered Category A infectious substance, this is no longer the case: most ‘animal material’ now fulfils the criteria for classification as Category B. As a result, ‘animal material’ is not considered a high-consequence dangerous good under RID/ADR/ADN. However, the Sub-committee did not consider this wise and did not support its deletion from Table 1.4.1.

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The Working Group had felt that 2.1.3.5.2 on the assignment of fireworks to UN 0431 could be clarified and suggested some editorial amendments. The Sub-committee agreed and adopted a revised first sentence for 2.1.3.5.2, which is regarded as a correction to the 21st revised edition of the Model Regulations: Assignment of fireworks to UN Nos. 0333, 0334, 0335 or 0336, and assignment of articles to UN 0431 for those used for theatrical effects meeting the definition for article type and the 1.4G specification in the default fireworks classification table in 2.1.3.5.5 may be made on the basis of analogy, without the need for Test Series 6 testing, in accordance with the default fireworks classification table in 2.1.3.5.5. The Working Group had felt that mention of “proper shipping name” in Note 1 to 2.6.3.2.2.1(b) for UN 2900 was incorrect, since the text in lower case characters is not part of the proper shipping name. The Sub-committee did not agree: several experts felt the proposed

change could have unintended consequences and that, in any case, the matter is addressed in 3.1.2.1. The Working Group offered a revision to packing instruction P622 for clarity, which was acceptable to the Sub-committee. As a correction to the 21st revised edition of the Model Regulations, the text of additional requirement 1 of P622 is amended to read: Fragile articles shall be contained in either a rigid inner packaging or a rigid intermediate packaging. The Working Group had felt that the use of “UN design type mark” in 6.1.3.1(e) was inappropriate and that “type approval mark” should be used instead, although the Subcommittee disagreed and made no change. On the other hand, the Sub-committee did agree that “must” should be replaced by “shall” in the English version in 6.1.3.14 and 6.6.3.4 and that “a packaging” should be replaced by “an IBC” in 6.5.2.1.3.

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In addition, the Sub-committee adopted a number of editorial corrections to the 21st revised edition of the Model Regulations proposed by the Working Group, not all of which apply to the English version. ICAO presented a paper with some observations and recommendations made by its Dangerous Goods Panel (DGP) following its meeting in April 2019. Most of these related to the provisions applicable to radioactive materials although there were two on other topics. These included a proposed amendment to special provision 388 to show only the proper shipping name for UN 3536, and a proposed revision to the text in 6.1.3.13 allowing more than one mark to appear on a package that conforms to more than one tested packaging design type. ICAO was invited to draw up a formal proposal for amendment for consideration at the next session.

Editorial and Technical (E&T) Group of the Sub-committee on Carriage of Cargoes and Containers (CCC) that had met in September 2019. That session had been charged with finalising the changes that will appear in Amendment 40-20 of the International Maritime Dangerous Goods (IMDG) Code and also with carrying out a comprehensive review of the footnotes used in the Code. In respect of the latter topic, the E&T Group had suggested that consideration should be given to incorporating some of the footnotes into the regulatory text. The chair of the E&T Group said he was proposing to work with the IMO secretariat on a proposal to conduct a similar review of the current notes in the Model Regulations. IMO’s paper, like that from ICAO, also considered some matters relating to the transport of radioactive material and these were considered alongside a note from the

In a similar vein, IMO presented a report of the outcome of the 32nd session of the

Secretariat summarising earlier discussions on the harmonisation of the Model Regulations with the 2018 edition of the International Atomic Energy Agency’s (IAEA) Regulations for the Safe Transport of Radioactive Material (SSR-6, Rev 1). The Sub-committee was informed that the proposals and comments »

 PROPOSALS RELATING TO AEROSOLS AND SALVAGE PACKAGINGS REMAIN TO BE AGREED

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raised by ICAO and IMO would be discussed during an inter-agency meeting and submitted for consideration by IAEA as potential corrections to SSR-6, Rev 1. If those corrections are adopted by IAEA, the Sub-committee would be notified at its next session. In the meantime, the Sub-committee did agree to delete references to the suffix “-96” in the type codes for low dispersible radioactive materials in the examples shown in 6.4.23.12, as a correction to the 21st revised edition of the Model Regulations. It was also agreed to amend the text of 5.1.5.1.3 on special arrangements, which is based on the definition used in SSR-6, Rev 1 but has proven difficult to translate into some languages. The revised text will be included in the next revised edition of the Model Regulations: A competent authority may approve provisions under which consignments that do not satisfy all the applicable requirements of these Regulations may be transported under special arrangement (see 1.5.4). Switzerland offered a proposal to introduce existing provisions from the Universal Postal

“THE 57TH SESSION OF THE TDG SUBCOMMITTEE HAS BEEN POSTPONED AND WILL HAVE A LOT OF WORK TO DO TO COMPLETE THE LATEST REVISION”

Union (UPU) Convention on Class 7 excepted packages into the Model Regulations, in order to facilitate the transport of such packages by post. However, the Sub-committee felt that this was an air-specific issue and some delegations noted that such transport is not allowed at national level in their countries. The proposal was withdrawn. GUIDING PRINCIPLES Canada put forward a proposal to amend the Guiding Principles for the Development of the UN Model Regulations to provide further information on the perceived discrepancies between the Limited (LQ) and Excepted Quantity (EQ) thresholds, following a paper at the 55th session of the Sub-committee. Shippers, carriers and trainers have expressed confusion regarding the discrepancies between the respective schemes, given that some dangerous goods are forbidden for transport in EQ – that is, very small quantities contained in robust and tested packagings - yet the same substances are permitted in LQ, that is, in larger quantities contained in non-tested packagings. Canada’s paper explained how the EQ provisions had been brought into the Model Regulations from the ICAO Technical Instructions and were therefore not based on the same experience as the LQ provisions. The EQ thresholds for the respective dangerous goods correspond to the quantities permitted for transport on passenger aircraft; as such they are generally more restrictive than the equivalent LQ thresholds. Canada felt this background information should be included in Chapter 3.5 of the Guiding Principles. The Sub-committee welcomed this explanation and agreed to the suggestion, asking the Secretariat to make the necessary changes on the UN ECE website. The Netherlands encouraged ICAO to provide further information on the more restrictive thresholds for EQ and ICAO promised to bring the issue to the attention of DGP.

 THE EXPERTS WERE RELUCTANT TO INCORPORATE UPU RULES ON EXCEPTED PACKAGES

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GHS ISSUES France updated the Sub-committee on the ongoing work to review and improve the testing of oxidising liquids and solids and the testing methods of Tests O.1, O.2 and O.3. The main work covers issues related to the particle sizes of a solid sample, the friability characteristic and the coated materials. It involves the participation of 13 laboratories from eight different countries in round-robin testing. Experimental data were being gathered and processed at the time of the Sub-committee’s session and it was hoped that it could be finished by the end of 2019. Based on these results, a formal proposal for the amendment of the Manual of Tests and Criteria would be presented at the next session. The EU and the Netherlands referred to decisions made earlier to update references to OECD Test Guidelines; on examination, it was felt that the current text of 2.8.3.2 could be misleading and offered an alternative. The Sub-committee agreed on the changes to the second sentence of that paragraph with more specific references to the OECD Test Guidelines concerned, and adopted a new sentence at the end, which remains in square brackets pending comments in writing: [If the test results indicate that the substance or mixture is corrosive, but the test method does not allow discrimination between packing groups, it shall be assigned to packing group I if no other test results indicate a different packing group.] The expert from Sweden informed the Sub-committee that the work on the review of Chapter 2.1 of GHS is entering its final phase and that the new classification system for explosives will be fully harmonised with the Model Regulations, without entailing changes to the transport classification of explosives. There may be some amendments required in the Manual of Tests and Criteria, which was

Sub-committee’s session. The experts involved were collating their assessments of possible and impossible combinations of physical hazard classes, which will be used as a living document and form the basis of their discussions. The group will aim to develop criteria or principles to analyse the remaining combinations, taking into account issues such as the safety of testing personnel, limitations in terms of the conduct of tests and the interpretation of their results, and the redundancy of hazard communication. The UK provided a detailed summary of proposed changes to Annex 1 of GHS, which contains the classification and labelling summary tables. The Sub-committee took note of these amendments, which will not affect the Model Regulations. China had invited both the TDG and GHS Sub-committees to reconsider the text for the classification of chronic aquatic environmental hazards of mixtures in the Model Regulations and GHS as it was felt that there is some inconsistency. It offered a change to 2.9.3.4.3.4 in the Model Regulations as a way of bringing about closer alignment. While there was general support, some experts felt the proposed wording could be improved. China asked for comments in writing so that a revised proposal could be developed, taking into account also any feedback from the GHS Sub-committee.

to be discussed at a joint session of the TDG and GHS Sub-committees at their mid-2020 session. Germany provided some information on the work of the Informal Working Group on combinations of physical hazards, which was due to meet immediately after the

was scheduled to take place from 29 June to 8 July in Geneva; travel and work restrictions imposed as a result of the Covid-19 crisis have caused the postponement of that session until 30 November to 8 December. It will have a lot of work to do to complete the new edition.

OTHER BUSINESS The Sub-committee was informed that Gudula Schwan, head of the German delegation, who had been participating in its work since 2005, would no longer be attending as she has taken on new responsibilities within the government. The Sub-committee expressed its gratitude for her work and dedication and wished her every success. The 57th session of the UN TDG Sub-committee

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CATCH THE LAST TRAIN RAIL • THEY WERE NOT TO KNOW IT AT THE TIME, BUT THE RID STANDING WORKING GROUP’S NOVEMBER 2019 SESSION WAS THE LAST OPPORTUNITY TO MAKE CHANGES TO THE 2021 TEXT

THE RID COMMITTEE of Experts’ standing working group held its 11th session in Vienna this past 25 to 28 November. Its main task was to progress with agreement of the amendments that will appear in the 2021 text of RID, the regulations governing the transport of dangerous goods by rail in much of Europe, taking account of the amendments included in the 21st revised edition of the UN Model Regulations and the decisions made by the RID/ADR/ADN Joint Meeting of experts. The session was chaired by Caroline Bailleux (Belgium) with Othmar Krammer (Austria) as vice-chair. It was attended by delegations from 19 RID contracting states and representatives from Russia (as an OTIF

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member state that does not apply RID), the European Commission, the EU Agency for Railways (ERA), the Organisation for Cooperation of Railways (OSJD) and five non-governmental organisations. UN HARMONISATION The Secretariat provided the meeting with a consolidated list of the amendments agreed at its session in November 2018 and those adopted by the Joint Meeting in 2018 and 2019. The meeting confirmed the changes, correcting a few errors along the way. [HCB will report in more detail on the amendments adopted once the final text has been approved later in the year.]

Russia picked up on the use of different formats in the presentation of alphanumeric codes: in the Dangerous Goods List these are shown without blank spaces but in the texts of the provisions they are shown with blank spaces. This could cause problems when using IT systems. Austria pointed out that the UN Model Regulations also use alphanumeric codes without blank spaces throughout. Belgium followed up on a proposal made by the International Tank Container Organisation (ITCO) at the Joint Meeting in September 2019 to refine the definition of ‘tank-container or portable tank operator’, which had been adopted. ITCO had not made any proposal to amend the definition of ‘operator of a tank-wagon’, which Belgium now offered, on the basis that the term ‘operator’ in this context is equivalent to the term ‘keeper’ as used in other rail-related legislation and regulations. The standing working group did not accept the rewording of the definition of ‘operator of a tank-wagon’, as it felt it is correct as it stands. However, it did amend footnote 5 to that definition, to update the references to EU directives on railway safety and interoperability.

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The Secretariat provided a paper detailing the necessary updates to some of the transitional provisions, which were all adopted. The general provisions in 1.6.1.1 were extended by two years, along with the documentation details in 5.4.1.1.12. The existing transitional provisions in 1.6.1.30 and 1.6.3.3.2 were deleted, as they will be out of date by 2021, as was the final paragraph in 1.6.3.27(a). The UK noted that the transitional provisions in 1.6.3.16 and 1.6.4.18 will still have to be amended. The Secretariat also provided the meeting with an extract from the draft report of the 107th session of the Working Party on the Transport of Dangerous Goods (WP15), held from 11 to 15 November (and reported on in HCB in the March 2020 issue, beginning on page 66), concentrating on those items with relevance to the rail transport sector. The paper included a list of proposed changes, mostly editorial in nature and not all applicable to the English language version of RID, which were carried over into RID. One exception was made. An amendment to footnote 5 to 6.8.2.1.18 was proposed but the standing working group noticed that this footnote appears in the tank container column in RID but not in ADR; in order to align RID and ADR in terms of tank container operations, footnote 5 and reference to it in 6.8.2.1.18 and 6.8.2.1.19 were deleted. Switzerland sought the opinion of the standing working group on the issue of the type of inspection to be performed on tanks covered by Chapter 6.8 of RID/ADR in cases where the three-month period provided for by 6.8.2.4.3 has expired. It felt that discussion was necessary as there is now confusion among both inspection bodies and users, which derives from changes adopted by the Joint Meeting in September 2019 based on the text in the 21st revised edition of the UN Model Regulations.

 THE RID COMMITTEE OF EXPERTS’ STANDING WORKING GROUP HAS TO TAKE ACCOUNT OF THE FACT THAT MANY TRANSPORT UNITS USED IN RAIL OPERATIONS ARE ALSO SUBJECT TO THE ROAD TRANSPORT REGULATIONS

In response, Belgium and the International Union of Wagon Keepers (UIP) both were of the opinion that the matter is clear: if the three-month period is exceeded the intermediate inspection must still be carried out, though there is no need for a periodic inspection, as is the case with portable tanks. For subsequent inspections, the date originally specified remains unaltered. Austria concurred and pointed out that 4.3.2.4.4 allows the carriage of empty uncleaned tanks after the expiry of the three-month period, for the purpose of undergoing the inspection. The Secretariat also circulated a list of corrections to the 2019 text of RID; again, many of these did not apply to the English language version and, of those that did, most were editorial in nature. One that might have been causing problems is found in paragraph (b)(ii) of special provision 670, where “333 g” is corrected to read “333 kg”. PROPOSALS FOR AMENDMENT Belgium pointed out that the Joint Meeting’s informal working group on the testing and

UIP noted that the mutual recognition of inspections had been introduced into RID ten years ago so as to avoid the need for a tank-wagon to return to the country in which it was approved for its inspection. The texts proposed to the Joint Meeting would reflect the existing RID text. However, it should be made clearer that approvals from the country of manufacture must always be recognised and UIP felt that the newly introduced ‘entry into service verification’ should be dispensed with when registering in another country. ERA pointed out that, in the context of the vehicle approval, an administrative check of the tank’s design type approval certificate and the initial inspection certificate is carried out, without re-checking the technical content of the certification. The keeper decides which country to register the vehicle in, which must be within the area in which the vehicle is intended to be used. ERA also confirmed that the registration of a vehicle is an independent step, coming after the authorisation of the vehicle. ERA was of the view that the entry into service verification could not call the approval procedure into question.

certification of tanks was developing proposals for amendments to RID/ADR Chapter 6.8, 1.8.6 and 1.8.7. Belgium’s opinion was that there were no amendments concerning the approval and registration process for tank-wagons, so there was no need for specific amendments to RID.

There was clearly some disagreement on these questions and the chair pointed out that the next meeting of the informal working group on the testing and certification of tanks was due to take place in December 2019; delegations were urged to send any comments to the chair of that group as soon as possible.

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The European Commission also pointed out that it was preparing a decision of the Council of the EU on the 2021 amendments to RID and only minor decisions made by the March 2020 Joint Meeting or the May 2020 session of the standing working group [both of which were, in any case, cancelled due to the Covid-19 crisis] would be included. As such, the amendments proposed would not enter into force until 2023. Russia proposed that the definition of ‘fine grain steel’ in 6.7.2.1 should be clarified, with reference to ISO 643:2012, and that it should be moved to 1.2.1 as it also applies to Chapter 6.8. The standing working group was sympathetic to the paper and several delegations were in favour of Russia’s suggestion to use the term ‘grain number’ in the definition. Russia was asked to submit a proposal to the UN Sub-committee of Experts, taking the comments made into account. TANK AND VEHICLE TECHNOLOGY The Secretariat provided a paper with the report of the 17th session of the RID working group on tank and vehicle technology, which had taken place in Ludwigshafen on 14 and 15 October under the chairmanship of Rainer Kogelheide (Germany).

“THE 2021 TEXT OF RID WILL CONTAIN ONLY THOSE CHANGES ADOPTED AT THE 10TH AND 11TH SESSIONS OF THE STANDING WORKING GROUP”

Attendees at the session had the opportunity to tour the BASF plant in Ludwigshafen and see for themselves the new generation of extra-large tank containers in action at the site. These tanks are transported around the facility on driverless vehicles and there is a storage area for 600 tanks. Professor Hecht of the Technical University of Berlin explained the risk assessment that had been carried out on behalf of BASF, which compared the new arrangement with the use of 20-foot tank containers on conventional carrying vehicles and with the use of tank-wagons. In terms of rail transport, the risk assessment concluded that, in all respects, such extra-large tank containers are at least as safe as conventional tanks, provided that the existing provisions are applied, although the protective aims of special provisions TE22 and TE25 could be achieved by significantly increasing the distance between the buffers and the end of the tank. UIP pointed out that the extra-large tankcontainers and innovative carrying wagons and the operational conditions under which they are currently running had been taken as a basis for the risk assessment. In particular, only humps with automatic retarders had been travelled over and the extra-large tank-containers had only been loaded at certain transhipment terminals whose staff had been trained accordingly so that extra-large tank-containers were only loaded onto suitable carrying wagons. It was therefore necessary to adapt the provisions to avoid the system being used in operating environments for which the safety of the system had not been checked. The European Chemical Industry Council (Cefic), which has been involved in the project, explained that the new tanks are optimised for rail transport but have also been approved for road and inland waterway use. At the BASF site, they are already carried intermodally before and after carriage by rail on automated guided vehicles. For these vehicles, approval for their use on selected public roads around intermodal terminals was currently being examined with the ministries and authorities responsible for approval in Germany. As the

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automated guided vehicles only travel at 25 km/h, travelling by road over distances of more than 30 km is not economically viable. It is the intention that, for distances of more than 30 km, the railways should be used. Uncleaned, empty extra-large tank-containers are already carried without restriction on conventional road vehicles on public roads, when tanks are being carried for cleaning or to workshops. Carriage of such tanks in a loaded condition, when they can weigh 75 tonnes, on conventional road vehicles requires special approval from the competent authorities. BASF had not at the time applied for any such special approvals. There are plans to use the tank containers in maritime transport (e.g. for carriage to the US and China), but this has not yet been done, as terminal infrastructure (cranes) would be needed and it would take several years to build such infrastructure. Germany thought that, as the tanks are being used in multimodal transport, it may be necessary to discuss a definition at the RID/ADR/ADN Joint Meeting so as to

Germany also presented a preliminary assessment of certain questions arising from the risk assessment. While the extra-large tank containers and innovative carrying wagons meet the current requirements, it cannot be taken that the provisions do not need to be adapted, particularly as stricter requirements had been taken into account with these new tanks and this would have to be documented to ensure that future projects follow the same degree of safety. Cefic did not agree. It pointed out that tank containers, including the new tanks, had proven to be safe in the tests and simulations that had been carried out. The existing provisions therefore cover the extra-large tank containers very well. Some modifications are necessary to the provisions for the carrying wagons, so that all participants in the transport operation can select wagons that are suitable for the new tanks. One other topic was raised by UIP, which sought an amendment to the text of footnote 1 to 6.8.2.1.2 that deals with the checking of stress resistance in tank-wagons. ERA

said they would use the adopted text as a basis for a proposal to amend the standards EN 12663-2:2010 and EN 14025.

distinguish between different types of tank.

was against the idea, as it would have to be cross-checked with EU directives, and other experts were also dubious. However, after discussion, a revised version was submitted which, with a few amendments, was adopted. Owing to ERA’s reservation, the text has been left in square brackets. Germany and UIP

filled to a maximum level of 83 to 85 per cent, in addition to the maximum mass of filling per litre of capacity. This is achieved by the use of a shut-off valve. UIP said that, while this method of filling is not used for standard gauge tank-wagons, it did not pose a safety risk.

 RID AIMS TO ALIGN AS MUCH AS POSSIBLE WITH THE SMGS RULES IN FORCE FOR THE WIDE-GAUGE RAIL SECTOR ACTIVE IN RUSSIA AND OTHER PARTS OF EURASIA

RID/SMGS HARMONISATION Russia updated the standing working group on the progress of work on the new Chapter 6.20 of Annex 2 of the Agreement on International Freight (SMGS), which includes the construction and testing of tank-wagons for use on 1,520-mm gauge tracks. This work has raised some questions about the corresponding provisions in RID for standardgauge tank-wagons. One issue is the difference in the requirements concerning the non-destructive testing of welds, where the Russian national standard (GOST) takes a different approach to ISO. The standing working group did not feel it was in a position to assess the implications of this difference and asked Russia to consider submitting a paper to the Joint Meeting’s working group on tanks. The paper also explained that 1,520-mm gauge tank-wagons in Class 2 use may be

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Russia also informed the group that there is a plan to extend the periodic inspection deadline for tank-wagons for the carriage of liquefied gases from eight years to ten. The standing working group did not see any safety-related problems. UIP was of the opinion that, bearing in mind the low corrosiveness of liquefied gases, it might make sense to make the same change in RID. Russia also proposed an amendment to special provision TE14 to take account of tankwagons equipped with thermal insulation and a heating system, which are used for the carriage of molten sulphur or liquid pitch, for example. On such tank-wagons, the thermal insulation is not in contact with the tank shell but with the heating system. This proposal was welcomed but, as TE14 appears in both RID and ADR, Russia was asked to submit the proposal to the Joint Meeting.

shell are not clear and could be misinterpreted. UIP confirmed that the provision for permissible stress values in 6.8.2.16 should be checked. Again, Russia was asked to submit a paper to the Joint Meeting’s working group on tanks. Russia further reported on some research and testing that had been carried out to investigate the corrosion rate of concentrated nitric acid (UN 2031) on aluminium alloy. At present, it is only allowed to be carried in high-purity (at least 99.5 per cent) aluminium but the testing found no difference when aluminium alloy was used. Russia proposed an amendment to permit the carriage of UN 2031 nitric acid in tank-wagons with shells made of aluminium alloy. The proposal was supported by UIP and the UK but it was felt that, again, this was a topic that needed to be dealt with by the Joint Meeting’s working group on tanks.

that the ‘entry into service verification’ step, that is to be included in the 2021 text of RID, covers among other things the conditions to be applied for the use of the tanks; this ERA considers to be outside the scope of the authorisation process. The responsibility of performing the configuration management of vehicles lies with the keeper or an entity entrusted by the keeper. Following the publication of the guides to the Inland Risk Management Framework and the positive response of the Joint Meeting at its autumn 2019 session, ERA believed that the guides should be referenced in footnotes in Chapter 1.9. This idea was welcomed by many delegations and ERA was to present a formal proposal to the Joint Meeting.

Russia also felt that the provisions in RID for calculating the minimum wall thickness of the

ERA INFORMATION On the request of the European Commission, ERA now provides the standing working group with a regular update of its activities, which at this session included some valuable feedback from its work in the vehicle authorisation process. It raised the point

The Secretariat informed the standing working group that Gulf Cooperation Council (GCC) member states were intending to accede to the Convention concerning International Carriage by Rail (COTIF) and, hence, to RID. It also highlighted the fact that Saudi Arabian Railways (SAR) had

 THE WORKING GROUP WAS INVITED TO CONSIDER EQUIVALENCE BETWEEN RID AND US TANK CONSTRUCTION STANDARDS

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REGULATIONS 67

already signed contracts for 1,500 tankwagons built in accordance with North American provisions. UIP explained that there are fundamental differences between North American and European tank-wagons; if SAR intends to use these tanks purely on its own network it is not a problem but they cannot be used in international transport with other RID states. Austria observed that, within the GCC states, this could be achieved through the use of derogations in 1.5.1 but SAR will need to consider how the tank-wagons are to be employed. As part of the investigation into this issue, it was observed that RID does not contain any provisions dealing with equivalence between those standards referenced in RID and other standards. The Secretariat invited the standing working group to consider the subject, noting

that it was in discussion with GCC with the aim of commissioning a study to compare the relevant standards. Some delegations questioned the use of such a study, with the Netherlands being of the opinion that, if one were to be carried out, it should be the responsibility of candidates for accession to RID. The standing working group also confirmed the conclusion reached by the working group on tank and vehicle technology, that regionally applicable CEN standards should not be replaced by globally applicable ISO standards. The Secretariat also presented a paper containing the guidelines for the use of RID/ ADR/ADN 5.4.0.2 on the use of electronic data exchange to satisfy the documentation requirements of Chapter 5.4, which had been adopted by the Joint Meeting. The standing working group confirmed it was happy to

adopt the guidelines and asked the Secretariat to make them available on the OTIF website. The 12th session of the RID Committee of Experts’ standing working group was due to be held in Bern on 25 and 26 May; however, due to the Covid-19 pandemic and the restrictions on travel and gatherings, this session was postponed until late November. The planned session of the RID Committee of Experts, scheduled for 27 May, was cancelled. That session was due to confirm the amendments adopted by the standing working group for publications in the 2021 text of RID. It is understood that the 2021 text will include only those changes adopted at the 10th and 11th sessions, with any consequential amendments and corrections. The final draft version of RID 2021 will be circulated to states and adopted using the written procedures.

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68 BACK PAGE

NOT OTHERWISE SPECIFIED SUITS YOU SIR The hospitality sector has been particularly badly affected by the Covid-19 outbreak and the resulting restrictions on behaviour. How can social distancing be enforced in a restaurant or a bar? It’s not easy, especially after a few drinks. But one enterprising bar owner has come up with a solution – and it uses hazmat response suits as a model. Production Club, which operates bars in Spain and Los Angeles, has worked hard on the ‘Micrashell’ concept, which it says will allow people to socialise responsibly and help improve mental well-being. It consists of a transparent hood and an upper-body jacket and gloves. Clean air is fed into the hood, which is also equipped with connections for canisters of drink or vaping liquid, and the whole thing runs on batteries that can also be used to charge a mobile phone. The whole package looks pretty snazzy too – perhaps this is a model for the hazmat emergency responder’s outfit of tomorrow?

to the truck’s onboard camera, disappeared underneath the barrel. The tanker driver, already calling CHP, noticed that the tank gauge was dropping, indicating that his red wine cargo was leaking. He pulled over and found the hijacker flat on his back on the ground with wine pouring out all over him. The desperate boozer was arrested and spent the night behind bars, although at this point hunger got the better of him. Released the following day – lockdown measures meaning there was no bail set – and desperate for a sandwich, he stole another truck and was arrested again.

TAKE ME TO THE SLAMMER And it is not just in clubs and bars that the need for booze to get us through the pandemic is causing issues. A man in California was arrested last month after stealing wine from a tank truck – while it was moving. According to the East Bay Times, the man drove up to the Cherokee Freight Lines tanker on Highway 99 and signalled the driver to pull over. Believing

ETHANOL, SCHMETHANOL Elsewhere, those hankering for hard liquor have not been so fortunate. At least 70 people are thought to have died in Mexico in recent weeks after drinking bootleg booze tainted with methanol. These fatalities are thought to be one unfortunate result of the restrictions on the sale of legitimate alcohol. In Puebla state, at least 20 died in the town of Chiconcuautla after buying liquor from one particular store, which has now been closed; in Morelos state, inspectors seized 20-litre jugs of unlabelled alcohol thought to have been the cause of 15 deaths in Telixtac; 25 died in Jalisco state after drinking a cheap brand of cane alcohol known as ‘El Chorrito’; and another seven died of methanol poisoning in the Yucatan

there was an issue with the rig, the tanker driver complied, but then saw the miscreant, clad only in underpants and a face mask, disappear round to the back of the tanker. At this point the tanker driver decided to get back on the road; the other man managed to grab hold of the ladder and then, according

village of Acanceh. Authorities – eager no doubt to avoid blame - have not said whether people are drinking the adulterated booze because legitimate liquor is unavailable or whether the economic effects of the lockdown have forced people to turn to cheaper bootleg versions.

HCB MONTHLY | JUNE 2020

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CIMC Enric Fort Vale Freight Merchandising Services ILTA Labeline Nantong Tank Container

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HCB Magazine June 2020

Articles inside

Intercargo wants action on liquefaction

More amendments from the UN

RID experts agree changes

HSE slams Chevron over deaths

NTSB identifies communication issues

Amsafe FCC passes another test

TT Club highlights Covid-19 risks

Greif concentrates on industrial markets

Incident Log Stay safe

The editor becomes a DGSA

Conference diary

Cross-bottling reconditioning from Schütz

News bulletin – chemical distribution

Matlack highlights digitisation benefits

Univar starts 2020 brightly

News bulletin – tanks and logistics

Brenntag’s holistic transformation

UK distributors face double trouble

Fecc looks for lessons in a crisis

Hoyer targets investments

Power-to-methanol plan in Antwerp

CSafe tracks the cold chain

Implico finds where the trains are

VTG breaks all records

Big landmark for Framo

News bulletin – tanker shipping

ITCO guidance on tank top working

Team outsources management

US barge business going strong

Letter from the Editor

30 Years Ago

Gasum helps Preem get clean

Gas ship owners enjoy it for now

Odfjell takes advantage of market

Learning by Training

In memoriam: David Jenkins