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INDIA - CHALLENGES IN HANDLING AND DEALING STEEL CARGO
Presentation for Steel in Transit on April 18, 2013 in Bremen
Agenda
� About
� Services
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� Services
� Industry scenario
� Ports
� Inspection
� Precautions
� Challenges
� Photographs
� Summary
About
� Founded in 2012
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� 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,
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� 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
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� 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).
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CRGO (cold rolled grain oriented steel).
� Top steel producers of India:
Inspection (I)
� 1st Objective: verify that the characteristics of the product is as stated on
purchase order’s product description, product specification and features.
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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.
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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.
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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.
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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
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� 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.
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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
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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.
Summary
� 4TH highest producer of steel.
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� Net importer of steel.
� Challenges
� Safe loading / discharging in spite of insufficient /
inadequate cargo handling equipment's.
� Improving cargo care by personnel handling
cargo.
Thank you for your attention!
L&S Risk Management Pvt. Ltd.
Suite # 701 A, XTrium
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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