NNPC PUBLICATION

Sea carriage of
steel products
 / transport van staalproducten / NNPC

CONTENTS
Foreword 3

Introduction 5

01 Fixing and drawing up the contracts 6

02 Preparation of the hold, hatches and hatch covers 7

03 The loading of operations 8

04 The sea voyage 10

05 The discharge of operations 11

Conclusion 11
 foreword / 

foreword
In the past years there was and is a large overcapacity in steel production. It is
expected and predicted that the yearly surplus of 300 million m.ton steel per year
will increase further. This resulted in a decrease of steel prices of at least 10%,
a decrease of the profit margins of traders and producers and an eagerness to
create claims – almost on every shipment claims are lodged.

Any deviation from the requested quality of the steel is claimed at the traders/
producers. Any deviation from the description of the steel on the Bill of Lading
will be claimed at the carrier. It is clear that besides the actual transport damages
there are a considerable number of ‘paper’ claims.

How can we protect ourselves against these claims?

The sea carriage of steel products such as coils, wire rods, billets, construction
steel and many other products is full of risks.

Most steel products (hereafter referred to as steel) are susceptible to moist, rust
and mechanical damages. All types of steel have in common that contact with
seawater can cause heavy damages.

Seawater with major component Chlorides causes pitting to the surface of the
steel. Pitting is a type of extreme local corrosion which is hard to detect. It
results in a local reduction of the thickness of the material, because of which the
steel can no longer be used for its original purpose.

We see – with regularity – that receivers use the presence of chlorides on the
steel, indicated by a Silver Nitrate test, to lodge high claims against the carriers.
By means of this publication we want to explain how claims can be avoided and
how the NNPC protects her members’ interests in these cases.

NNPC, Expertise bv
Gijs Lindenburg
 / Sea carriage of steel products / NNPC
 introduction / 

introduction
The transport of steel over sea can be divided
in the following sections that are all equally
important in order to avoid damages:

Fixing and drawing up the contracts

The preparation of holds, hatches and hatch
covers
The loading
The sea carriage
The discharging
 / Sea carriage of steel products / NNPC

01 Fixing and
drawing up the
contracts
When discussing the contracts parties maximum deck load. Furthermore it
will have to agree under which con- is important to agree if cargo is
ditions the cargo will be loaded and allowed to be loaded/discharged during
discharged, which party is responsible rain, and if a surveyor will be present
for the stevedores in both ports, who on behalf of cargo interests and/or if
is responsible for the stowage- and cargo interests will carry out a hose
securing materials. A loadlist will have test, ultrasonic test and/or another
to be presented mentioning particulars inspection prior to or upon completion
about the type and packing of the cargo of the loading operations. Once all
and the port(s) of loading/discharge. this has been recorded in a fixture it
With regard to the increasing dimensi- will have to be checked carefully if the
ons of the coils the maximum weights agreements are properly inserted in the
of the individual coils will have to be final charterparty.
mentioned in order to calculate the
Finally it is of great importance if
and what remarks are allowed to be
inserted in the Bills of Lading (Bs/L)
and which parties should be mentioned
on the Bs/L. (remarks are always to
be noted prior to/during the loading
operations!)
 Preparation of the hold, hatches and hatch covers / 

02 Preparation of
the hold, hatches
and hatch covers
As mentioned above the presence of Prior loading the bilges have to be
salt/salt crystals and seawater on steel tested on proper working (non return
are the major elements for lodging valves!) and have to be dried thereafter.
claims. These contaminants can be In the engine room the valves to the
present in the holds prior to loading bilges have to be in closed condition.
and/or can contaminate the cargo
during the voyage (e.g. condensation) If possible, a hose-test has to be car-
and/or can enter the holds during the ried out prior loading and the results
voyage through, for example, hatch- have to be mentioned in the logbook.
covers, ventilation openings and/or It is of utmost importance that the
bilges. rubber packing is in good condition,
with sound corner- and end pieces and
How to prevent the presence of salt in no openings. All previous cargoes must
the hold prior to loading? have been removed from gutters, there
should not be any damages to gutters,
Prior to loading the holds have to covers and compression bars and the
be cleaned thoroughly and have to be drains have to be free from rust,
free from previous cargoes, especially previous cargoes and closing properly.
if these contained salt. In any case the
holds have to be well rinsed/washed Steel itself has a high density of
with fresh water after cleaning. This approx. 8,000 kg/cbm and is therefore
should include, amongst others, the stowed in the bottom of the holds
bottoms of hatch covers, openings for of vessels. This will result in high
lashing eyes and container lashings, tensions in the vessel and high stabi-
bilges and manhole cover areas. There- lity that results in a stiff vessel (short
after all free water has to be removed rolling period, high accelerations
and holds have to be dried. The holds in ship, cargo and lashings). In bad
have to be completely dry prior to weather conditions this will result in
loading. heavy labouring of vessels for which
reasons the covers have to be in the
best condition.
 / Sea carriage of steel products / NNPC

03 The loading of
operations
What to do before and during the hold with packed cold-rolled steel coils
loading operations? that should be free from moist.

After arrival, when opening the During the loading operation it is

hatch covers upon request, make sure important not to open to many hatch
that there is no salt water leaking from covers in order to close them as
the hatches and that the covers are free soon as possible in case of rain or
from salt water. emergencies.

A surveyor or inspector, acting on Upon completion of loading the list

behalf of cargo interests, must have of remarks should be attached to the
obtained ship owners’ approval for B/L and on the B/L a reference must be
boarding in advance. Carefully note made to this rider.
down the particulars of this surveyor/
inspector – ask for a business card – When no surveyor or inspector is
and note down the purpose of his visit. appointed, the master and his crew
have to inspect the cargo and make
If and when a surveyor is appointed remarks. On steel cargoes remarks
by ship owners, always ask when and are always possible, such as general
where this surveyors will inspect the remarks referring to the condition of
cargo and ask for his remarks. Carefully the packing, dents and cracks, dirt,
peruse these remarks and compare the bird droppings, moist, rust, dirt, and
remarks with the remarks made by the damages caused by handling prior
vessel’s crew during loading. loading. Furthermore specific remarks
are required if the condition of a coil
When a stowage plan is made up, and/or other cargo clearly differs from
the stowage of different types of the condition of the other coils/cargo.
steel should be taken into account, if
possible. Unpacked hot-rolled coils We can forward riders with remarks
are allowed to be stored outside, are that can be used to note the actual
allowed to be loaded during rain and condition of the steel and to insert
are often wet. These coils should these remarks in the Bs/L.
preferably not be stowed in the same
 The loading of operations / 

If steel looks dry during loading but What were the temperatures, day
has obviously been wet before then a and night, if possible the relative hu-
remark “wet before loading” must be midity;
made. Without this remark traces of wet
damage discovered in the port of dis- What is the condition of the cargo
charge will lead to a claim against the after a period of rain? Make sure that
vessel. The same goes for light rusting. the covers are dry after a period of rain
in order to avoid water getting into the
It is also important to record the holds upon opening;
circumstances of the berth in the port
of loading. The following may be Take pictures of all matters that
important: might be relevant for the condition of
the cargo.
What is he origin of the cargo and
how is it brought alongside the vessel; In many loading ports plastic sheets
open trucks, dirty trucks, open train are placed over the cargo in order to
wagons; protect the cargo from droplets of
water coming from above. After
How is the cargo loaded. Shore loading the hatches have to be closed
crane, mobile crane, number of units and prepared for sea properly.
per hoist, means to hoist the cargo
such as braided wires or slings; The use of Ramnek tape provides extra
security in respect of watertightness.
Where is the loading berth located. When applying Ramnek tape make
Close to sea, close to a breakwater, sure it is not applied too tight, as it
next to ‘dirty’ industry; if there are would then crack during the moving of
activities in the port affecting the the vessel in bad weather conditions.
cargo a proper remark should be made;
10 / Sea carriage of steel products / NNPC

04 The sea voyage

It is important during the voyage that quantity of water increases, combined
sea water does not enter the holds and with heavy rolling and pitching of the
that condensation is avoided. vessel, the gutters could and seawater
could enter the holds. This should be
What can be done to avoid both? avoided at all times. Course and speed
should be adjusted to ease the vessel,
It may be possible that sea water all depending on the position of the
enters the holds through the hatches vessel, the local circumstances and the
during adverse weather conditions duration of the bad weather period.
and labouring vessel. The vessel’s hull
has a certain flexibility whilst the With regard to the above it is impor-
coamings, hatchways and hatch covers tant to monitor the condition of the
are rigid. When the vessel is moving cargo inside the holds, to verify if
heavily, the flexible hull in a way pulls seawater enters the hold, the check the
at the hatch covers due to which there water level in the bilges and to check
is no -or less- pressure between rubber if there is cargo or ships’ sweat.
packing and compression bar locally.
Because of this seawater could pass If there are, despite the above,
the rubbers, however this should be problems with regard to (sea) water
drained via the gutters. Should the in the holds, the owners should be
contacted immediately and be
informed fully about the situation.
Damages can be prevented and/or
mitigated if a surveyor, appointed
by the owners and/or the P&I club,
is present prior to and during the
discharge operations.
 The discharge of operations / 11

05 The discharge of
operations
Upon arrival in the port of discharge any information is given and/or before
and when opening the hatches the they are allowed to attend on board,
hatches should be free from salt water. enter the holds and/or take pictures.
We advise to flush the covers with
fresh water and dry the covers prior Upon completion of discharge sign
to opening as far as possible. Every only the usual documents and no
positive silver nitrate test increases the documents that are related to a
risk of being held liable for a (steel) possible damage.
cargo damage.
If a master is still forced to sign
If and when deviating circumstances documents relating to the condition of
are noticed upon opening of the the cargo the following remark should
covers, the owners should be informed always be added: “signed without
immediately. The owners can advise prejudice, for receipt only”.
and take measures, if need be jointly
with the P & I Club.
conclusion
Furthermore it is of utmost importance
that no information is handed over to It is always, but particularly when
cargo interests and that no access is carrying steel, of utmost importance
granted to a counter surveyor without that particulars are noted during the
the presence of an own surveyor. total transport, including loading
and discharging, that proper
During the discharge operation it is remarks are made on the bs/l and
also important not to open to many that utmost care is taken in respect
hatch covers in order to close them of seaworthiness. If there are any
as soon as possible in case of rain or doubts always contact the owners
emergencies. and/or the P & I Club for advice or
assistance.
If surveyors/inspectors and/or other
persons board they have to report and
identify themselves clearly. If they act
on behalf of cargo interests they have
to report to the Owners first before
 A MASTER’S GUIDE TO:

NNPC
Rijksstraatweg 361
9752 CH Haren (Gr.)

www.nnpc.nl
[email protected]

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In Ontwerp, Assen