Safe and efficient cargo hold preparation for bulk carriers21 September 2021 • 09:00-09:45 BST

#bulkcarriers

Part ofBulk CarrierWebinar Week21-22 September 2021

Supporting organisation

Panellist documentsPage 2: Alexandra Chatzimichailoglou, GardPage 9: Nitin Mathur, Wallem GroupPage 16: Shubpreet Singh, Wilhelmsen Ship Management SingaporePage 24: Paul Markides, INTERCARGOPage 29: INTERCARGO's Annual Review

THE IMPORTANCE OF PROPER VENTILATION AND GOOD RECORD KEEPING FOR DEFENDING DRY BULK CARGO CLAIMSAlexandra Chatzimichailoglou

Senior Claims Adviser, Lawyer

21 September 2021

WHY CARE TO VENTILATE?

England: Supreme Court judgement on Volcafe (Volcafe v.CSAV [2018] UKSC 61):

• Supreme Court said on burden of prοof:

«When one examines the scheme of the Hague Rules, it is apparent they assume that the carrier does indeed have

the burden of disproving negligence…»...

«…where the cargo was shipped in apparent good order and condition but is discharged damaged, the carrier bears

the burden of proving that that was not due to its breach of the obligation in article III.2 to take reasonable care.»

• Supreme Court said on «inherent vice» exception [Art. IV R2 (m)]:

«…in order to be able to rely on the exception for inherent vice, the carrier must show either that he took reasonable

care of the cargo but the damage occured nonetheless; or else that whatever reasonable steps might have been

taken to protect the cargo from damage would have failed in the face of its inherent propensities.»

ARTICLE III RULE 2, HAGUE-VISBY RULES: « …THE CARRIER SHALL PROPERLY AND CAREFULLY

LOAD, HANDLE, STOW, CARRY, KEEP CARE FOR AND DISCHARGE THE GOODS CARRIED»

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WHY SHOULD A BULK CARRIER VENTILATE

• To prevent or reduce “Ship’s sweat” also known as “condensation”

• Ventilation should only start after the ventilation period as per fumigators’ instructions

• Ventilation can interact with a few cm of cargo on the surface and not deeper in the stow inside a vessel’s

holds

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HOW TO VENTILATE PROPERLY

WEATHER PERMITTING, VENTILATE WHEN THE AIR DEW POINT OUTSIDE THE HOLD IS LOWER THAN THE AIR DEW POINT INSIDE THE HOLD -HOLDS ENTRY REQUIRED

WEATHER PERMITTING, VENTILATE WHEN THE AIR TEMPERATURE OUTSIDE THE HOLDS IS AT LEAST THREE DEGREES LOWER THAN THE CARGO TEMPERATURE INSIDE THE HOLDS. CARGO TEMPERATURES TO BE TAKEN DURING OR AT COMPLETION OF LOADING ON TWO OR THREE SPOTS IN EACH HATCH AND TO BE AVERAGED - HOLDS ENTRY NOT REQUIRED

THE DEWPOINT RULE AND THE 3-DEGREE RULE

Dew point Rule Three Degree Rule

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KEEP GOOD RECORDS OF VENTILATION CARRIED OUT

THE THREE DEGREE RULE

VENTILATION FORM

THE RULE

VENTILATE WEATHER PERMITTING WHEN THE OUTSIDE AIR TEMPERATURE IS THREE DEGREES OR MORE

BELOW THE CARGO TEMPERATURE DETERMINED AT THE TIME OF LOADING.

DURING THE LOADING, DETERMINE THE TEMPERATURE OF THE CARGO AND RECORD THE AVERAGE OF THE MEASUREMENTS IN THE

VENTILATION FORM

DURING THE VOYAGE, THE OUTSIDE TEMPERATURE SHALL BE BE TAKEN AND RECORDED EVERY MORNING AND EVENING, AND AT

OTHER TIMES IF APPROPRIATE, IN ORDER TO DETERMINE WHETHER IT IS APPROPRIATE TO VENTILATE. THE WIND AND SEA

CONDITIONS SHALL BE RECORDED AND ADDITIONALLY, FOR EACH REPORTED PERIOD, IN THE REMARK COLUMN THE REASON(S)

FOR VENTILATING OR FOR NOT VENTILATING.

THE REMARKS SET OUT BELOW ARE OF GUIDANCE FOR REMARKS TO BE INCLUDED IN THE VENTILATION FORM:

· WHEN VENTILATING, FOR INSTANCE:

"APPROPRIATE TEMPERATURE DIFFERENCE TO CONDUCT VENTILATION"

“FAIR/DRY WEATHER”,

“LIGHT WINDS”.

· WHEN NOT VENTILATING, FOR INSTANCE:

“ADVERSE TEMPERATURE DIFFERENCES”

“SEAS SHIPPED ON DECK”

“HEAVY RAIN/PRECIPITATION”, ETC. It should be noted that as long as the temperature criteria for ventilation is met, FOG wil l not be a valid a

reason for not ventilating because it will clear in contact with the warmer cargo. This applies also for any reference to HIGH RELATIVE HUMIDITY

(or simply RELATIVE HUMIDITY), which in the same way should not exclude ventilation, because in contact with the warmer cargo the relative

humidity in the ventilating air will reduce.

“HEAVY ROLLING/PITCHING, NOT SAFE FOR CREW TO GO ON DECK”.

“HEAVY WEATHER OR HEAVY RAIN EXPECTED/FORECAST IN NEXT FEW HOURS SO VENTING CLOSED DOWN”.

THE DEW POINT RULE

VENTILATION FORM

THE RULE

VENTILATE WEATHER PERMITTING WHEN THE DEW POINT IN THE AIR INSIDE A

CARGO HOLD IS GREATER THAN THE DEW POINT IN THE AIR OUTSIDE.

DURING THE VOYAGE, DETERMINE AND RECORD THE DEW POINT IN THE AIR IN EACH HOLD AS

WELL AS IN THE OUTSIDE AIR EVERY MORNING AND EVENING, AND AT OTHER TIMES IF

APPROPRIATE, IN ORDER TO DETERMINE WHETHER IT IS APPROPRIATE TO VENTILATE. THE

WIND AND SEA CONDITIONS SHALL BE RECORDED AND ADDITIONALLY, FOR EACH REPORTED

PERIOD, IN THE REMARK COLUMN THE REASON(S) FOR VENTILATING OR FOR NOT VENTILATING.

THE REMARKS SET OUT BELOW ARE OF GUIDANCE FOR REMARKS TO BE INCLUDED IN THE VENTILATION FORM:

· WHEN VENTILATING, FOR INSTANCE:

"APPROPRIATE TEMPERATURE DIFFERENCE TO CONDUCT VENTILATION"

“FAIR/DRY WEATHER”,

“LIGHT WINDS”.

· WHEN NOT VENTILATING, FOR INSTANCE:

“ADVERSE TEMPERATURE DIFFERENCES”

“SEAS SHIPPED ON DECK”

“HEAVY RAIN/PRECIPITATION”, ETC. It should be noted that as long as the temperature criteria for

ventilation is met, FOG will not be a valid a reason for not ventilating because it will clear in contact with

the warmer cargo. This applies also for any reference to HIGH RELATIVE HUMIDITY (or simply

RELATIVE HUMIDITY), which in the same way should not exclude ventilation, because in contact with

the warmer cargo the relative humidity in the ventilating air will reduce.

EXPLAIN WHY YOU HAVE VENTILATED OR NOT VENTILATED & USE PROPER SPREADSHEETS

TO COLLECT ALL INFORMATION

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WHY IS GOOD RECORD KEEPING IMPORTANT?

There are jurisdictions which find against

the owners where there is not sufficient

documentary evidence that the vessel

properly ventilated even though there is

expert evidence that even if the vessel had

properly ventilated the damage to the

cargo would have occurred nonetheless,

i.e., the position is different from the position

under English Law

(the VOLCAFE)

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YOUR TAKE-AWAYS!

• Perform ventilation after expiry of the fumigation period to fulfill duty of

care for cargo

• Follow the ventilation rules properly

• Keep good record of your entries explaining why the vessel has

ventilated/not ventilated (recommend using the spreadsheets prepared by

Brookes Bell)

• Be prepared to defend any claims that may arise making use of your good

records

Visit Gard’s website for further information on ventilation and ventilation

spreadsheets:

INSIGHTS, 10 MARCH 2021 and 3 JUNE 2021:

https://www.gard.no/web/updates/content/31335236/best-practice-for-ventilation-of-soya-bean-and-grain-cargo

https://www.gard.no/web/publications/content?p_document_id=31814812

THANK YOU!

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Hold Preparation for grain loading – case study

September 2021

Presented by: Nitin Mathur

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HOLD UPGRADATION AT BERTH

• Chemical washed• Upgraded in port• Holds were fully painted• Tank tops descaled

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HOLD UPGRADATION AT BERTH

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HOLD UPGRADATION AT BERTH

• Previous cargo residue• Paint over rust scales• Rust scales• Paint flakes• Poor surface preparation

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LOSSES

• Offhire & shifting costs• Consequential costs – stevedores, cargo storage, delay penalties• Loss of reputation• Opportunity cost• Financial Loss

Description Amount in USDCleaning gang charges $140,160.82Berth charges + Agency charges $88,769.11Additional hold inspection charges $5,435.53Offhire $283,922.8Fuel consumption $34,536.96

TOTAL FINANCIAL LOSS $552825.22

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LESSONS LEARNT

• Proper surface preparation• No paint flakes• Previous cargoes• Proper cleaning between dirty cargo voyages• No shortcuts

DisclaimerThis document has been provided solely for the private use of the party to whom it is addressed, is not for circulation or publication without our written consent and no responsibility whatsoever can be accepted to any person. All data included in thedocument is provided in good faith and without guarantee.

Professional. Like you.

CARGO HOLD PREPRATION AND CARGO LOSS PREVENTION

INTRODUCTION

• Bulk Barges (500-1000 DWT)

• Mini Bulk Carriers (500-10000 DWT)

• Handy Size (10,000 – 35,000 DWT)

• Panamax (65,000 – 99,000 DWT)

• Cape Size (100,000 DWT and above)

• Kamsarmax (Max Length 229 mtrs designed for load in Kamsar)

• Newcastlemax (Max beam 50 mtrs Length 300 mtrs)

• Dunkirk Max (Max beam 45 mtrs, Length 289 mtrs)

• Valemax (380,000 – 400,000 DWT)

Types of Bulk Carriers

Bulk Carrier the Work Horse of the Sea!

“If there was a mountain to move, give me a bulk carrier and I will move it.”

-Unknown

7 907.3 Million Ton of Bulk Cargo moved on ships in 20192020 UNCTAS Report

HOLD PREPRATION

• Preparation of cargo holds for the next cargo is one on the most critical operations undertaken on a bulk carrier which required careful planning and optimal use of resources.

• An unprepared hold leads to number of issues like off-hire, delays and additional costs to engage shore teams and CP related disputes. In addition, an unprepared hold will result in bigger claims related to cargo quality, contamination and breach of the CP guaranteed warranties

• There are number of elements to consider when planning hold preparation but mainly follow the same principle:- Dry Sweep- Removal of previous cargo residues- Salt water wash- Chemical Does (Aquatuf, Oxalic Acid, Muriatic Acid etc)

( Subject to next cargo demand)- 2nd Saltwater wash- Draining and scaling of loose paint, loose rust from ---

nnnbulkheads and tank tops.- Freshwater rise- Paint Touch up- Cleaning of bilges- Final Inspection

CARGO VENTILATION

• Ventilation, is the supply of fresh air into a space. On bulk carriers, this generally means the provision of fresh air into the cargo holds.

• Types of Ventilations - Natural Ventilation- Mechanical Ventilation- Dehumidifier

• Why do we need ventilation?- Minimizing the formation of sweat by dew point control - Removing hazardous gases emitted by certain cargoes- Prevent tainting of cargo- Preventing excessive heating of the cargo- Very Hygroscopic cargoes

• When to ventilate and not to ventilate?- Cargo under fumigation- Dew point(Cargo cold outside hot – Ventilate NOT)(Cargo hot outside cold – Ventilate BOLD)

CARGO DAMAGE

• Types of Damage

- Physical Damage

- Wet Damage

- Infestation

- Contamination

- Decomposition

- Theft

- Shortages

• Majority of cargo claims come from 2 main causes wet damage and cargo contamination

• 35% of all insured bulk carriers suffer cargo claim due to shortage or wet damage. The average cost for a bulk carrier wet damage cargo claim is almost USD 110,000.

• Leaking hatch covers are the most common cause for wet damage.

HATCH COVER MAINTENANCE

• Types of Hatch Covers

- Folding, Side-Rolling, Lift away, Single Flap, Piggy-back, Stacking etc.

• Function of Hatch Covers- In open position, they provide access to the holds for ...loading/discharging cargo; - In closed position, they prevent water ingress by sealing the hatchway

in a weathertight condition, so that there is no leakage into the cargo hold in any sea condition.

• Testing and Maintenance of Hatch Covers- Chalk Test- Ultrasonic Test- Hose Test- Visual Light Test (Take Safety Precautions)• Maintenance on Hatch Covers- Rubber Gaskets Inspection- Hatch Cover Rest Pads- Compression Bars- Alignment- Cleats- Drain Values Inspection and O’haul.

Poorly maintained and Damaged Hatch covers are the single largest cause of wet cargo damage.

Hold sealing tapes are just and additional precaution not a substitute to a well-maintained hatch cover.

LOSS PREVENTION

• Know your cargo and carriage requirements

- Shipper Declaration

- Cargo properties

- Ventilation

- Segregation

- MSDS

• Cargo Hold Preparation

- Previous Cargo Residue

- Scales

- Painting

- Transferable Stains

- Hold Bilges

• Hatch Cover and Booby Hatches

- Hose Test

- Chalk Test

- Rubber Packing

- Rest Pads

- Drain Channels

Prevention is better than cure!

Bulk Carrier the Work Horse of the Sea!

Photo by Anshu A on Unsplash

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The Dry Bulk Management Standard

DryBMS

DryBMS

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•A framework for ship managers to self assess

their performance against legislative

requirements and industry best practice

•Defines specific subject areas where the

focus is on discrete but relevant areas of ship

management

3

Structure

• PEOPLEThe company’s organisation is fit for purpose staffed with competent people and teams.

• PERFORMANCEThe company promotes a strong, proactive HSSE culture throughout the organisation. HSSE objectives are set and communicated to the workforce. Measurement is used to understand, sustain and improve performance.

• PLANTThe ships and equipment onboard are fit for purpose throughout the lifecycle of operation.

• PROCESSThe company documents and rigorously follows procedures for safe compliant operations.

4

DryBMS Subject areas

30 discrete subject areas of which “Cargo & Ballast Operations” are one

ShipboardOperations

DryBMS Subject Area 20

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Hold preparation procedures cover

• Familiarisation & training

• Cleanliness appropriate to cargo to be carried

• Charter party requirements

• Office instructions

• Agreement for cleaning plan between master and terminal

representative

• Fumigation

• Use of PPE

• Any restrictions for hold entry

• Hold inspection prior to loading

Safe and efficient cargo hold preparation for bulk carriers21 September 2021 • 09:00-09:45 BST

#bulkcarriers

Part ofBulk CarrierWebinar Week21-22 September 2021

Supporting organisation

Click the banner for INTERCARGO's annual review