INDIA - CHALLENGES IN HANDLING AND DEALING …steel-in-transit.com/assets/Uploads/3.pdf · INDIA -...

INDIA - CHALLENGES IN HANDLING AND DEALING STEEL CARGO

Presentation for Steel in Transit on April 18, 2013 in Bremen

Agenda

� About

� Services

Steel in Transit April 18, 20132

� Services

� Industry scenario

� Ports

� Inspection

� Precautions

� Challenges

� Photographs

� Summary

About

� Founded in 2012


� Subsidiary of Lampe & Schierenbeck, part

of Lampe & Schwartze Group

� Local service company with base of

operations in Mumbai

� Director: Capt. Venugopal Suvarna

Services

L&S Risk Management can assist clients:

� with consulting and onsite risk management,


� with consulting and onsite risk management,

� in claims handling and investigation,

troubleshooting and recovery actions,

� as surveyor's expert: choosing the right

surveyor in India, provide quality control in

technical and managerial issues,

� for any product, especially vegetable oils and

agricultural commodities or steel

Industry Scenario (I)

� Output 76.7 million tons


� 4TH in world steel production

� Net importer of steel

� Products exported: Hot and cold rolled coils, plates, billets, ingots, beams, pipes.

Industry Scenario (II)

� Products imported: Hot rolled coils

(seconds), wire rod coils, billets, plates,

CRGO (cold rolled grain oriented steel).


CRGO (cold rolled grain oriented steel).

� Top steel producers of India:

Major Ports for Steel Cargo


Inspection (I)

� 1st Objective: verify that the characteristics of the product is as stated on

purchase order’s product description, product specification and features.


purchase order’s product description, product specification and features.

� 2nd objective: ensure that goods are loaded in sound condition and properly

stowed for safe transport such that the goods reach destination without

damages.

� Inspection stage to be decided i.e. pre-shipment, during loading / discharging.

� Sampling plan and scope of inspection should be agreed between buyer,

supplier and inspection agency.

� Packing, marking and labeling to be checked.

� Rust condition and damages to be diligently recorded.

� Descriptive clauses for damages to be agreed with shipper before cargo is

loaded.

Inspection (II)

� Mate’s receipts and bills of lading should be appropriately claused to reflect true

condition of cargo.


condition of cargo.

� Vessel hatch inspection to be carried out diligently to check water tightness of

pontoons / other hatch openings. Ventilation system functioning to be also checked.

� Dunnaging / lashing to be supervised to ensure that it is as per instructions and

adequate for the intended voyage.

� Photographs to be taken at every stage of the operation as evidence as well as to

give a pictorial description on condition of cargo and operation.

� Silver Nitrate test to check cargo and holds are free of NaCl.

� Timely reporting such that any corrective action required can be taken as required.

� Comprehensive final report with photographs to be prepared.

Precautions

� Packing should be designed to protect the products from handling damage

taking into account voyage length and number of handlings required.


taking into account voyage length and number of handlings required.

� Appropriate warehousing taking into account nature of product to prevent

moisture and dust damage.

� Appropriate road transportation – to avoid damage due to motion and

weather.

� In order to avoid damage to products or their packaging, it is essential that

stowing, cushioning, bracing, lashing and securing on the means of transport

are performed carefully and in accordance with instructions.

� Suitable slinging and cargo handling equipment and lifting gear must be

selected and used on the basis of the cargo's weight and slinging points.

Challenges (I)

� Pre-shipment inspection: Suppliers may not be cooperative. Inadequate facility to

carry out a good inspection.


carry out a good inspection.

� Transportation from factory to port : Road condition not good. Inadequate covers.

� Port area : insufficient warehouse space. Cargo kept in open spaces exposed to

weather and dirty cargoes e.g. fertilizers & coal, leading to corrosion. Insufficient

attention given to how cargo is stacked.

� Inadequate cargo handling equipment and lifting gear leading to improper

handling, resulting in damages while being unloaded from road trailers / rail

wagons in port stack yard.

� In port stack yard, cargo not kept segregated lot wise resulting in mix up during

loading and delays.

Challenges (II)

� Lack of trained & experienced stevedores / foremen / laborers / forklift operators.

� In sufficient forklifts resulting in slow loading. Also resulting in damages to cargo


� In sufficient forklifts resulting in slow loading. Also resulting in damages to cargo

because attempt is made to load without fork lifts.

� Inadequate equipment's leading to difficulties in loading under hatch coamings /

vessel sides resulting in damages to cargo and sometimes ship structures. Also

broken stowage, delays.

� Port stevedoring in some ports – due care not given to load cargo without

damages. Protest letters not accepted.

� Wharf side / storage area not cleaned / having abrasive surfaces leading to

damages of delicate cargoes.

Challenges (III)

� In many ports, wharf side and stack yard lighting is inadequate to carry out a

satisfactory inspection at night time.


satisfactory inspection at night time.

� Inspection companies do not have sufficient number of trained staff to carry out a

diligent inspection.

� Packing lists / shipping documents not readily available at the time of inspection.

� Taking photographs inside the port area is either banned or made very difficult by

having impractical regulations.

� Some vessels do not allow shippers / consignees surveyors to board the vessel

to monitor loading / discharging.

� When Port is the Bailee of the cargo, clausing Mate’s Receipts or B/L is not

allowed unless shipper gives an undertaking that the port will not be held

responsible.

Challenges (IV)

� Also when Port is the Bailee, the Port Tally is final. In case of import cargo, there

are cases where the port tally sheet has shown lower quantity resulting in short


are cases where the port tally sheet has shown lower quantity resulting in short

landing claims.

� Mix up of lots due to improper segregation at stack yard or lack of

communication to stevedores.

� In some ports, dunnage quality and ready availability can be an issue.

� Improper dunnaging or poor quality of dunnage leading to collapse of stacks

leading to damages or problems in slinging.

Photographs – Stack Yards


Photographs – Loading


Photographs – Vessel View


Photographs – Vessel view


Photographs – Damages


Summary

� 4TH highest producer of steel.


� Net importer of steel.

� Challenges

� Safe loading / discharging in spite of insufficient /

inadequate cargo handling equipment's.

� Improving cargo care by personnel handling

cargo.

Your Questions?!


Thank you for your attention!

L&S Risk Management Pvt. Ltd.

Suite # 701 A, XTrium


Suite # 701 A, XTrium

Next to Holy Family Church

291, M.V. Road, Andheri (East)

Mumbai 400 099, India

Phone: + 91 22 61270991

E-Mail: [email protected]

Capt. Venugopal Suvarna

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