1 of 5 DECEMBER 14, 2010 CIRCULAR NO. 33/10 TO MEMBERS OF THE ASSOCIATION Dear Member: INDIA: SAFE SHIPMENT OF IRON ORE FINES FROM INDIAN PORTS Introduction Members may be aware that, in 2009, two vessels, the ASIAN FOREST and the BLACK ROSE, capsized and sank following liquefaction of iron ore fines cargoes which they had loaded in the Indian ports of Mangalore and Paradip. There have been other incidents of liquefaction, particularly when cargoes were loaded during or after the Indian monsoon season, resulting in vessels becoming unstable and being forced to seek refuge. In other cases cargoes have been found to have a moisture content in excess of the transportable moisture limit (TML) prior to departure and the vessels in question have been prevented from sailing by the local port authorities until the situation has been rectified. This has led to substantial delays. The Indian government, through the Ministry of Shipping, Directorate General of Shipping (DGS), conducted inquiries into the sinking of the ships mentioned above, and established a committee to look into the safe loading and carriage of iron ore lumps and fines from Indian ports. The DGS has issued a number of Merchant Shipping Notices, the latest of which is M Notice No. 9 of 2010, dated August 27, 2010. The International Group is in dialogue with the DGS on a number of issues arising from the M Notices and how they relate to the International Maritime Solid Bulk Cargoes Code (the Code). M Notice No. 9 is being made law in India as part of the new carriage of goods regulations. The Indian government also submitted a report to the 87th session of the IMO Maritime Safety Committee (MSC) in May 2010 reporting on the findings of its investigation into the two casualties and the actions that the Indian authorities had taken following the casualties together with various recommendations relating to the carriage of iron ore fines. The report was considered by the 15th session of the Sub-committee on Dangerous Goods, Solid Cargoes and Containers (DSC) in September 2010. The DSC issued a Circular – DSC.1/Circ 63 – which set out a number of conclusions and recommendations relating to the carriage of iron ore fines. In view of the above incidents, it is most important that Members ensure that all local and international requirements, including those under the Code, which relate to the loading, stowing, carriage and discharge of iron ore lumps and fines cargoes loaded at Indian ports, are fully complied with. 2 of 5 International Maritime Solid Bulk Cargoes Code (IMSBC Code) The Code is issued under SOLAS 1974 and its Protocols, which have been incorporated into the Indian Merchant Shipping Act 1958 (as amended). The Code sets out the internationally agreed provisions for the safe stowage and shipment of solid bulk cargoes, including cargoes that may liquefy, such as iron ore fines. Those cargoes not specifically listed are covered by Section 1.3 of the Code. It currently has advisory status, but becomes mandatory internationally on January 1, 2011. However, in India, it is already mandatory by virtue of M Notice No 9. Regulation VI/2, SOLAS 1974 requires the shipper to provide the master or his representative with all relevant information relating to the cargo sufficiently in advance of loading to enable precautions which may be necessary for the proper stowage and safe carriage of the cargo to be put into effect. Section 4 of the IMSBC Code sets out the obligations and responsib