742 - 02/11 - Dried Distillers Grains with Solubles (DDGS) update - Worldwide

Trulli

Leading from the omission of DDGS as a classified commodity in the new IMSBC code the Club would wish to issue interim clarification on the carriage of this commodity to avoid differences in interpretation with Port States' and avoid potential claims and detentions.

The Clubs' advice as issued in Bulletin 654 stands. At present DDGS is not singled out as a separate commodity and the Club recommends that it would be prudent for Members to continue to regard DDGS be classified as SEED CAKE (Group B) and take necessary precautions.

However the US Coast Guard, being the competent authority at the load port, have begun issuing (as is their right under section 1.3 of the IMSBC Code) letters of authorisation to carry DDGS as a Group C (i.e. non-hazardous) cargo so long as the cargo complies with the details of that letter. Under the provisions of the Code, USCG do not need to get complicit agreement from flag state or country of destination authorities for cargoes they have assessed as non-hazardous, although they do need to notify those authorities in every instance.

Under the terms of the Code the USCG have one year to make a submission to IMO to make this ruling permanent.

This has already taken place as the USCG made such a submission to the IMO as of June 2010. The amendments of this submission have consequently been accepted by the sub-committee on Dangerous Goods, Solid Cargoes and Containers (DSC), but require ratification by the Maritime Safety Committee (MSC) before coming into force. The ratification of the amendments is on the agenda for the May 2011 meeting where it is widely expected to be approved. The amendments are expected to come into force shortly after this date.

Thus, DDGS loaded at US ports can now be carried as Group C cargoes, as long as owners are provided by charterers/shippers with a copy of the USCG authorisation letter and the cargo complies with the terms therein.

With the exception of the above it remains the Club's advice to members to classify all other cargoes of DDGS from other countries as SEED CAKE and carry under the terms of the current IMSBC code as it stands. This stance will be further reviewed after the next meeting of the MSC committee, to be held May 2011

Source of Information: Dr M. Jonas & Dr K. Aamlid

Brookes Bell LLP

Martin.jonas@brookesbell.comKai.aamlid@brooksbell.com

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UK P&I

Date11/02/2011

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