2 - 05/97 - Steel Shipments ex Klaipeda (Lithuania)

We have been advised by reliable source that quantities of cold rolled steel are being left outside stored on the open quay in Klaipeda port, These are reportedly unprotected and in many cases standing in pools of water. We are further advised that shortly before arrival of the loading vessels the cargo is moved into the warehouse to mislead attending surveyors. Another source has advised us that there is presently some 300,000 to 500,000 tons of steel in the port which is causing serious problems in respect of delay and warehousing.

Please ensure owners requesting pre-loading steel surveys in this port are notified of the above. Please also, if appointing a local surveyor to conduct a pre-loading steel survey, stress the need that accurate surveying is required and that shipping documents must be claused.

We have also heard that a large majority of all coils coming from inland Russian steel mills are being brought to Klaipeda on open waggons exposed to the elements. We understand there is a way of proving that the open waggons were open by reading the waggon numbers (available on the shipping orders) should you want any further information on this please contact the undernamed.

Karl Lumbers

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Thomas Miller & Co Ltd

Date23/03/2009

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