Iron Ore Fines & the IMSBC Code

8/13/2019 Iron Ore Fines & the IMSBC Code

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Iron Ore Fines&IMSBC (Code)

Thomas K Larsen

Senior Claims Executive,lawyer


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Seller - Iron Ore


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Buyer Iron Ore


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Stock piles


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Loading from barges


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SOLAS - 1974


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IMO - IMSBC


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IMSBC

International Maritime Solid Bulk Cargo the Code.

Replaces the BC code (2004).

Voluntary 2009 1 Jan.

Mandatory from 2011 1 Jan.


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Ore - types

Concentrates! Mineral concentrates are refined ores in which valuable components have

been enriched by eliminating the bulk of waste materials.

Natural, but crushed! Fines: less than 6 mm particles.! Sized: 5 20 mm particles.! Lumps: 10 - 40 mm particles.


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IMSBC

Individually listed cargoes Annex 1! Their properties and methods of handling have been established.! Iron ore and nickel ore concentrates are mentioned.

Cargoes not listed in the Code 1.3 - procedure.

! Load port! Flag state! Discharge port

Government Authorities set thepreliminary suitable conditions for thecarriage of this cargo.


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Does IMSBC 1.3 apply at all?

1.3 does not apply, because

! (1) Nickel/iron ores are well known cargoes.

! (2) 1.3 procedure is impractical.

! (3) 1.3 procedure is contrary to customary practice.


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Argument 1 - Well known cargo

The Code targets new cargoes and we already know tahtnickel/iron ores may liquefy.

Appendix 1 (listed cargoes) is not exhaustive and the Codeapplies even though the cargo is not listed.

Neither of them seems to work.


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Argument 2 - Impractical

Getting three government bodies to discuss the safe handlingpractice of (each) cargo being loaded would take months!

List of contact names in the Supplement to the Code.

Impractical and/or impossible arguments can both bedismissed.


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Argument 3 Customary Practice

The industry as a whole, including the IG Clubs, do not seemto address the non-compliance issue, as long as the cargo istreated with care.

Since the Code has changed status from voluntary tomandatory, past non-compliance can hardly form a successfulargument.


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Conclusion

The Code applies to Iron/nickel ore fines, paragraph 1.3.

Nickel ore cargoes loaded in Indonesia are consistently beingshipped without complying with the IMSBC code theresimply is no authority as envisioned in 1.3.

(Probably) each cargo needs to go through the 1.3. procedure,because of their very individual properties, but hardly any oneof them does.

IMSBC is violated on a daily basis.


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Is that indeed so?

Iron Ore Fines & the IMSBC Code

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Transcript of Iron Ore Fines & the IMSBC Code