Nikki Schots, Senior Contractual Loss Prevention Consultant, and Pieter Bruins, Loss Prevention Executive at Amlin, have noted that in the past few years Amlin had experienced an increase in the number of claims caused by fires in scrap metal cargoes.
Since the consequences of such fires could be serious, Amlin has decided to publish an updated version of its August 2019 circular about the underestimated risk of scrap metal cargoes.
MS Amlin highlights some of the dangers and risks associated with loading and transporting scrap metal cargoes, and provides recommendations on improving safety.
In principle, scrap metal consists of recyclable materials left over from product manufacturing and consumption, such as vehicle parts and surplus materials.
The commonest risks of handling and transporting scrap metal argo are :
1. Spontaneous combustion
Iron can oxidise rapidly, which releases heat. In large compact quantities of scrap, this heat will be largely retained and the temperature of the mass will rise. There are known cases where the temperature has reached 500°C just a few metres below the surface of the cargo, without producing flames.
2. Fire
Cargoes of mixed scrap may be contaminated with paper, car tyres, rags and all kinds of flammable material. If seawater and salt crystals are present in the cargo hold, this can lead to rapid oxidation. The result is a rise in temperature and the contaminants catching fire.
Given the near-ubiquitous nature of lithium-ion batteries are these days, there was an increased risk that scrap metal would contain these batteries or parts of them. Lithium batteries in the cargo increase the fire hazard. Broken, cracked or crushed battery cases allow moisture and oxygen to enter the battery cells and oxidise the lithium components, causing a heat reaction. Ultimately, this can lead to fires or explosions.
Moreover, lithium battery fires can release irritating vapours and toxic fumes, and the fires are difficult to put out. In fact, the only effective way of extinguishing fires caused by lithium batteries is ‘total flooding’.
3. Damage to the cargo hold during loading
Scrap metal consists of heavy pieces which can easily penetrate the tank top and the sides of the cargo hold. This may cause leaks in ballast and fuel tanks, which can be difficult to detect when the cargo holds are full.
Pieces of scrap can also fall from the grab or magnet during loading and damage decks, railings and hatch coamings.
Contractual Considerations:
In accordance with most standard charter parties, the charterer is responsible for loading and discharging of the cargo under the supervision of the master. During loading, however, the parties may not notice damage to the vessel caused by the scrap metal cargo as the holds are full. To protect both the owner and charterer in case of damage to the vessel’s holds, special rider clauses can be inserted in the charter party.
“BIMCO Scrap Metal Clause 1998” states that cargo must be loaded in accordance with Annex 9 of the IMO Code of Safe Practice for Cargo Stowage and Securing. If a charterer does not comply with these provisions, the costs of damage caused to the vessel shall be for the charterer’s account.
Another commonly used clause is a “soft landing clause”, stating that the first layer of scrap must be dropped from the crane as close to the tank top as possible to form a ‘cushion’. Compliance with this clause minimises damage to a vessel’s cargo holds.
However, the contractual position always depends on the negotiating position of the parties and all other terms of the charter party.
MS Amlin recommends appointing the professional services of a qualified cargo surveying company to assist the Master prior and during loading.
