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Fos ter i ng Saf et y Exce l l ence & Sus ta i nab l e Sh i pp i ng

S A F E T Y 4 S E A We e k l y F l a s h M a i l 2 0 1 5 - 4 4


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2/ P&I Clubs to use electronic bills of lading

The International Group of P&I Clubs (IG) have now approved a third system, known as E-Title, for use of

electronic bills of lading. Bolero and essDOCS are, as known, the other two approved systems. IG of P&I

Club sets out further details as follows:

''Members will recall, as reported in the Group circular dated 8 September 2010, that, until February 2010,

the rules of all of the Group clubs specifically excluded liabilities in respect of the carriage of cargo under all

electronic, i.e. paperless, trading systems to the extent that the liabilities under such systems would not have

arisen under a 'normal' paper system, i.e. one using transferable paper documentation. From 20 February

2010, liabilities arising in respect of the carriage of cargo under such systems were covered, provided that

system had first been approved by Group. First two systems approved by Group were those administered by

essDOCS Exchange Ltd (more specifically version referred to as DSUA 2013.1) and by Bolero International

Ltd (more specifically the Rulebook/Operating procedures September 1999.) Both those two systems

continue to be approved. In addition, the e-title solution can now be added to the list of approved electronic

i.e. paperless systems. E-title is a secure mechanism focusing exclusively on title transfers, complementing

existing web-portal services offered by shipping lines, logistics operators and trade facilitators. Solution is

supported by a legal framework to facilitate electronic exchange of bills of lading and waybills, removing the

need for a paper bill of lading. Exclusions of cover under Group club rules relating to carriage of cargo will of

course continue to apply in respect of essDOCS, Bolero and E-Title in same way as for paper systems.

These exclusions include discharge at a port or place other than port or place provided for in contract of

carriage, the issue / creation of an ante or post-dated electronic document / record, and delivery of cargo

without production of negotiable electronic document / record, which in case of an approved electronic

trading system will mean delivery of cargo other than in accordance with rules of that trading

system''. [More…


3/ Most common causes for liquefaction-related incidents

DNV GL has published a guideline for design and operation of vessels with bulk cargo that may liquefy.

Guideline aims to raise the awareness of risks of liquefaction and describes mitigating actions to reduce

these risks. The following causes are most common causes for liquefaction-related incidents, along with DNV

GL’s guidelines for mitigating actions:

Wrong cargo name

Name of cargo should be described by using the Bulk Cargo Shipping Name (BCSN) as detailed in IMSBC

Code. Master and shipper/operator should always make sure the cargo is correctly identified before loading.

Cargo not listed in IMSBC Code

If cargo is not listed in IMSBC Code, such as bauxite with high moisture content, shipper must provide

competent authority of port of loading with characteristics and properties of cargo. Based on information

received, port authority will assess acceptability of cargo for safe shipment. Master should always make sure

proper documentation of cargo is received before loading.

TML (Transportable Moisture Limit)

Representative samples of cargo have to be tested in laboratories. TML testing is a specialized task, and

worldwide there are not many competent and independent laboratories. In some of main ore exporting

countries, there are few or none such labs. It is responsibility of shipper to declare cargo as a liquefaction

hazard and provide a TML certificate. Unfortunately it is difficult for Master to verify or independently assess

TML value other than with highly inaccurate can test, as mentioned in Section 2.3. Master should be updated

on any known problems with a specific cargo. It is recommended to appoint an independent surveyor or

cargo specialist for advice.

Moisture content prior to loading

Shipper has to present a declaration of average moisture content of cargo before loading. In this process

there are many potential sources of error, and again the unprocessed ore cargoes are most vulnerable. In

order to determine average moisture content, samples have to be representative of whole shipment. For ore

cargoes properties and moisture content may vary significantly. Interval between testing for moisture content

and loading cargo must be as small as practicable, and may in no case be more than seven (7) days.

Increased moisture during loading and during voyage

Even if a reliable measurement of moisture content is provided before loading, there are still some areas of

concern regarding moisture content. Moisture content will increase in case of heavy precipitation during