Transportation of Coal Using a Ship

Coal is one of the major cargos that are shipped every year in hundreds of millions of tons though it is no longer used as a major ship fuel.  Currently, coal is mostly shipped for power consumption and for industrial purposes such as steel production.  However, shipping coal is associated with several safety concerns for the dry bulk industry (Ott, 2012).  These safety concerns are attributable to the fact that coal can self-heat, ooze corrosive substances, generate explosive gases, and liquefy.  A ship (Ship M/V EVRIDIKI) managed by this operations department has been scheduled to load coal 42’ at port of Gladstone (Australia) on 20th November 2016 under a voyage charterparty.  The destination of this shipment is the port of Constanta in Romania.  The distance is 9510 nautical miles (8392 to Suez) and the discharging will be carried out with the ships’ gears.  Some of the important issues to consider in this shipment process include cargo handling information, sea voyage estimate, and information collected from agents during the voyage.

Coal is a cargo that was deposited more than 300 million years ago through a mixture of geological and biochemical processes (Ott, 2012).  Ship M/V EVRIDIKI will transport large quantities of this cargo over a long distance.  The large quantities of coal to be transported by this ship is evidenced in its number and capacity of 5 x 30mt (which includes 1 Twin 60mt) while the long distance is 9510 nautical miles (8392 to Suez).  One of the major challenges in transporting such large quantities of this cargo is the likelihood of the coal to self-heat to the point of ignition.  This poses a serious threat and challenge to those handling this cargo, which implies that suitable cargo handling processes should be adhered to or carried out.  The need for suitable handling of the cargo is also fueled by the fact that one of the specifications of Ship M/V EVRIDIKI is electro-hydraulic type.  

One of the important aspects for handling this shipment of coal is communication with charterers or agents.  The agents should provide the Master with written information regarding the characteristics of the cargo and recommendations on safe procedures for handling, loading, and transporting the cargo.  Since this ship will be transporting large quantities of coal, the communication with the Master and charterers should entail providing information about the cargo’s specifications for sulfur content, moisture content, and size.  The Master should be informed whether this cargo is liable to self-heat or emission of methane since coal usually emits methane and is vulnerable to self-heating (CJA Marine Services Pte Ltd, 2010).  

The characteristics of Coal 42’ that will be loaded on Ship M/V EVRIDKI include high sulfur content, lower moisture, and relative volatile matter.   This type of coal is commonly known as bituminous coal, which is the largest category of coals that are shipped across the globe.  This cargo has lower fixed carbon, relatively higher volatile matter and agglomerating and slagging characteristics.  The heating values of this cargo are between 10,500 and 14,000 British thermal units per pound (Btu/lb) on a wet, mineral-matter-free basis (US Environmental Protection Agency, n.d.).

The International Maritime Solid Bulk Cargo (IMSBC) Code that provides guidelines for loading and carriage of coal requires Shippers to provide cargo characteristics before loading.  Consequently, the first step in stowage is to provide information on coal characteristics including size, moisture content, sulfur content, and liability or vulnerability to self-heating or emission of methane.  The Master should not accept the cargo until he/she is provided with such information to a satisfactory level as described above.  Once such information has been provided, the cargo should not be carried unless sufficient precautionary measures are undertaken to lessen the likelihood of a fire outbreak since coal is vulnerable to combustion or spontaneous heating.  The third step is the stowage plan is to ensure that the Ship has an instrument for measuring methane, oxygen and carbon monoxide and a way of evaluating pH values of bilge water samples (Ott, 2012).  Additionally, gas sampling ports should be in place on all holds and a means of evaluating cargo temperature should be established during loading and voyage.

Since this cargo is bituminous coal, it should not be loaded on the Ship if its temperature is beyond 55°C in order to minimize any chances of spontaneous heating or combustion.  Cargo hold preparation for this shipment should entail ventilating the holds for at least 24 hours or when the concentration of methane is acceptable.  In this case, the acceptable concentration of methane for the cargo is below 20% LEL.

When loading this cargo, the coal should be cautiously trimmed into the ends of compartments and wings to help realize a level stow while safeguarding against increase of pockets of methane beyond the stow (CJA Marine Services Pte Ltd, 2010).  Loading the cargo in the hatch square should involve using chutes and extra boards that help prevent any damages to the tank or banker top plating.

For crew protection, entry into a coal compartment should be restricted as a means of preventing any unprecedented events.  The crew should be provided with breathing apparatus while support personnel are put on standby to offer necessary assistance to those who enter into a coal compartment.  Prior to entering a coal compartment in the ship and when in the space, thorough ventilation of the space must be provided.  Firefighting and smoke detection equipments should be carefully tested and provided to crew members for use during loading and voyage.  In this case, the firefighting equipment should be available for instant use during loading whereas the smoke detection equipment is continuously monitored and operated.

The sea voyage estimate for Ship M/V EVRIDIKI carrying coal include 3 loading days, 6 discharging days, canal/Bosporus transit 2 days each, FO 800tns ROB, and DO 100tons ROB.  Based on the sea distance calculator, the distance between Gladstone port in Australia and Constanta in Romania via the Suez Canal is 9,461 miles.  At a laden/ballast speed of averagely 14.5 knots, the ship will take approximately 27.4 days at sea.  The total estimated voyage duration will be the sum of the number of days at sea, port, discharge, and transit as follows:

Total Estimated Duration = Days at Port + Days at Sea + Days of Discharge + Days of Transit
                  = 3 + 27.4 + 6 + 4 = 40.4 days.

Therefore, the total estimated voyage duration for Ship M/V EVDIRIKI transporting coal is 40.4 days.  This essentially means that the estimated voyage duration for this shipment of coal will take more than a month.

The consumption of this ship requires calculating the daily consumption IFO multiplied by the number of days at sea and the daily consumption IFO at port multiplied by the number of fays at port.  The cost of fuel oil (bunker oil) in November 2016 was $309.50 per metric ton while the cost of marine diesel oil in November 2016 was $477.07 per metric ton.  Using these costs, the consumption of Ship M/V EVDIRIKI is as follows:

A. IFO (Fuel Oil) at Sea
Total cost of consumption at sea = (Daily Consumption IFO * Number of Days at 
   Sea) * $309.50
   = (30mt * 27.4) * $309.50 = 822*$309.50
   =$254,409
Since the ship was geared, the total in port consumption with use of cargo gear is as follows: 

B. In Port Consumption (Diesel Oil)
Total cost of consumption in port = (Daily Consumption IFO* Number of Days in 
   Port) * 477.07
   = (6.0mt * 3) * 477.07 = 18*$477.07
   = $8587.26

The estimated total cost of consumption for this ship is the total cost of fuel at sea and in port, which is $254,409 + $8587.6 = $262,996.26.  Additionally, there are costs provided by the agent for using the Suez Canal.  Based on information from the Suez Canal Authority, the cost of passage through the Suez Canal is estimated at $15,000.  Therefore, the total cost of this voyage is $262,996.26 + 15,000, which is $277,996.26.

During the voyage, there was some information collected from agents given that communication is an important factor in cargo handling.  One of the important information collected from agents during this voyage is pro forma DAs, which help in ensuring quick PDA turnaround time and effective management of advance payment.  The pro forma DA contained information regarding the costs of the various aspects relating to the shipment of coal from Gladstone, Australia to Constanta, Romania.  These port expenses in the pro forma were outlined in a standardized format and included agency fee and overhead, vessel port expenses, and payment follow up.

To help in outlining the expenses and costs effectively, the agents provided a draft of the port for the vessel.  Generally, ports that export or import large quantities of coal are enhancing the depth of their drafts as means of enhancing their capacities to handle larger vessels (Mitra, 2011).  The agents indicated that larger vessels like Ship M/V EVDIRIKI are increasingly becoming common for dry bulk cargo.  The draft included a clear representation of the loading area and guidelines to help crew members ensure safety when loading coal into the ship.  The ship was required to enter the port using berths and maintain an additional depth of not less than 10% of its draft during entry and departure regardless of the existing conditions.  Based on the draft, vessels entering the port are given navigational support depending on their sizes.  Additionally, vessels are granted or restricted a passing in the channel depending on their LOA.  Since this ship had a LOA of 189.9, it was restricted to pass by a ship with a LOA of 200m or more but not exceeding 220m.

The vessel will be loaded by at least five ship loaders who receive coal from feeder bins that function at a capacity of 5,750 tons per hour.  After receiving the cargo from the feeder bins, the ship loaders transfer it to the vessel waiting at the berth, which is the entry point of the port.  As part of enhancing safety, these ship loaders are required to have appropriate equipment and clothing for their operations.  Moreover, the port utilizes local maritime regulations and International Maritime Solid Bulk Cargo (IMSBC) Code for strict control of all activities.  Some of the items that are evaluated during ship operations at the port and voyage include fluctuation of the vessel, tide, and compliance with relevant regulations.  

In conclusion, shipment of coal is one of major maritime activities carried out in several ports throughout the world.  As shown in the example of Ship M/V EVDIRIKI, this process is multi-faceted and complex because of the vulnerability of the cargo to spontaneous heating and combustion.  The handling of coal during shipment is characterized by a series of steps that need to be carefully planned and conducted while adhering to several local and international regulations.  This process entails estimating the costs of the entire voyage and constant communication with agents to ensure safety and efficiency.

References

CJA Marine Services Pte Ltd 2010, Coal Cargo (Bulk) – Precautions Prior to Loading & During Voyage, CJA Marine Services, viewed 14 January 2017,

Mitra, A 2011, Ports Need Deeper Draft to Attract Bigger Ships, Business Line, viewed 14 January 2017,

Ott, C 2012, Safe Shipment of Coal, Shipping Regulations and Guidance, viewed 14 January 2017,

US Environmental Protection Agency n.d., Bituminous and Subbituminous Coal Combustion, US Environmental Protection Agency, viewed 14 January 2017,