You are on page 1of 16

Iron Ore Fines & IMSBC (Code)

Thomas K Larsen Senior Claims Executive, lawyer

Seller - Iron Ore

Buyer Iron Ore

Stock piles

Loading from barges

SOLAS - 1974

IMO - IMSBC

IMSBC
! International Maritime Solid Bulk Cargo the Code. ! Replaces the BC code (2004). ! Voluntary 2009 1 Jan. ! Mandatory from 2011 1 Jan.

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.

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


!! Load port !! Flag state !! Discharge port

1.3 - procedure.

Government Authorities set the preliminary suitable conditions for the carriage of this cargo.

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.

Argument 1 - Well known cargo


! The Code targets new cargoes and we already know taht
nickel/iron ores may liquefy.

! Appendix 1 (listed cargoes) is not exhaustive and the Code


applies even though the cargo is not listed.

! Neither of them seems to work.

Argument 2 - Impractical
! Getting three government bodies to discuss the safe handling
practice 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 be
dismissed.

Argument 3 Customary Practice


! The industry as a whole, including the IG Clubs, do not seem
to address the non-compliance issue, as long as the cargo is treated with care.

! Since the Code has changed status from voluntary to


mandatory, past non-compliance can hardly form a successful argument.

Conclusion
! The Code applies to Iron/nickel ore fines, paragraph 1.3. ! Nickel ore cargoes loaded in Indonesia are consistently being
shipped without complying with the IMSBC code there simply 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 one of them does.

! IMSBC is violated on a daily basis.

Is that indeed so?