The U.S. Coast Guard has proposed several changes to bulk cargo handling requirements that could impact ammonium nitrate shipments, according to a recent Federal Register notice flagged by the Pike & Fischer FR Today alert service.
The changes are being proposed to harmonize the Coast Guard’s regulations with International Maritime Organization (IMO) amendments that require all vessels operating under the International Convention for the Safety of Life at Sea (SOLAS) and carrying bulk cargoes other than grain to comply fully with the International Maritime Solid Bulk Cargoes (IMSBC) Code.
The IMSBC Code is the international standard for the marine transport of solid materials in bulk. IMO first issued it in 1965 and has amended it several times since, most recently in 2008. The IMSBC Code provides standards for shippers, vessel operators, and masters to ensure the safe handling and carriage of bulk solid cargoes.
The Coast Guard is proposing certain amendments to its regulations governing the carriage of solid hazardous materials in bulk to allow use of the IMSBC Code as an equivalent form of compliance for all domestic and foreign vessels operating in U.S. navigable waters. Proposed changes to the Coast Guard regulations will expand the list of solid hazardous materials authorized for bulk transportation by vessel and include detailed special handling procedures based on the IMSBC Code and existing special permits.
One change suggests tighter controls on the temperature of bulk shipments of ammonium nitrate. The Coast Guard said it agreed that the temperature of ammonium nitrate fertilizer or any other bulk commodity is “best controlled through the manufacturing process. However, only monitoring immediately before loading would ensure that the temperature of the cargo on the vessel is within safe limits.”
Another issue addressed by the Coast Guard involved clarifying a prohibition on fuel oil transfers during the loading of ammonium nitrate fertilizers. Responding to comments that internal fuel transfers should be allowed, the Coast Guard said: “The purpose of prohibiting bunkering and fuel transfers during the handling of ammonium nitrate and ammonium nitrate fertilizers is to preclude any possibility of forming an explosive mixture through the contamination of the ammonium nitrate. This prohibition does not extend to transfers of fuel on board the vessel through the vessel’s fixed piping system. We have reworded the section to clarify this.”
The notice of proposed rulemaking also referred to a detonation test for ammonium nitrate that was once prescribed by The Fertilizer Institute (TFI) as an industry standard. The Coast Guard said the test was not allowable as a standard because it is no longer being maintained by TFI.
The Coast Guard said the proposed changes would reduce the need for current special permits required for the transportation of certain solid hazardous materials in bulk. “This proposed rule would also result in cost savings to certain vessels, as preparation of permit renewals will no longer be needed,” the notice said. “We estimate this regulation would reduce the need for ten permit requests per year.”
It did detail some expected cost increases as a result of the changes, however, noting that additional equipment, training, and operating costs would likely fall on industry. “We estimate that industry would incur equipment costs during the implementation period (Year 1) of $2.7 million undiscounted,” the notice said. “We also estimate there will be annual recurring costs due to equipment maintenance and replacement.” The Coast Guard also referred to training and operating costs, including equipment testing, record keeping, and vessel preparation. “We estimate industry would incur an annual recurring operating cost of $7.4 million undiscounted,” the notice said.
Implementation of the IMSBC Code will not become mandatory until January 1, 2011, but several countries have already adopted it as a national regulation. Countries that are parties to SOLAS will require compliance with the IMSBC Code for all bulk solid shipments occurring in their jurisdiction.
The Federal Register notice kicked off a 30-day public comment period on the proposed changes. Comments and related materials must be submitted by July 19, 2010, to an online docket via http://www.regulations.gov.