K LINE Cargo Acceptance Guidelines

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K LINE Cargo Acceptance Guidelines

• CONTQC/CMG
• June, 2005

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Contents

• Preface (1)
• Preface (2)
• Cargo Acceptance Guidelines
• Bulk cargoes
• Chemicals with strong odor
• (UN1334 UN2468)
• Cold wave container
• Dangerous goods destined for US inland via US
  rails
• Hide
• Hot cargo (1)
• Hot cargo (2) exceptional treatment
• Logs/ lumber
• Magnetic cargoes
• Malt

• Military goods
• Overweight containers
• Reefer as dry
• Scrap (Metal, Plastic, etc)
• Shippers own containers (SOC)
• Stone products
• Steel coil
• Steel products (pipes/sheet/plate)
• Used parts, machinery
• Valuable cargoes

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Contents (continued)

• Other basic guidelines
• Cargo screening procedures
• Container seal inventory control
• Containers used for DG for US
• DG placard
• Guidelines for handling cargo and cargo damage
• Guidelines for survey arrangement
• Partlow charts safekeeping
• Refrigerated foodstuff quarantine
• Standard vanning policy for dry containers
• Standard vanning policy for Flat rack containers
• Standard vanning policy for Open top containers.

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Preface (1)

• One year has passed since our first edition
  of KLINE basic guidelines for cargo acceptance
  was issued. While our Guidelines have been well
  penetrated into our colleagues, we have yet seen
  several serious and costly incidents caused by
  only a container with unscreened and risky
  cargoes.
• Just before preparing this third edition
  (now renamed to Cargo Acceptance Guidelines
  CAG), we carried out an inquiry about cargo
  screening procedures to almost all of our offices
  over the world and learned that there is still
  large room for improvement to protect ourselves
  against risks to take doubtful cargoes from
  unfamiliar customers. The result of the
  investigation is being summarized in the section
  Cargo Screening Procedures, which please
  carefully read to make your current screening
  procedures more effective.
• Under the circumstances that the cargo
  volume we handle would be expected to increase
  further, we sincerely believe our efforts to
  improve cargo screening method must have very
  important role all the more.
• 
  
• 
  KLINE CONTQC/CMG (June, 2005)

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Preface (2)

• All FCL (full container loads) container
  cargoes are received in a sealed and SLAC
  (shippers load and count)condition . Therefore
  Kline, as a shipping line, are not in a position
  to know the condition and securing arrangements
  of the contents of each container. It is,
  however, vitally important for us to understand
  cargo nature and securing manner from the cargoes
  description and/or customers business line
  through professional communication with them,
  because the nature of the cargo can cause damage
  to the cargo itself, the container and other
  objects (vessels, people and the eco system,etc).
  
• To help prevent such damage, it is
  essential for the entire Kline group to share
  some basic knowledge about cargo types and
  guidelines for cargo acceptance
• This booklet, which is a summary of
  instructions/recommendations, is compiled for
  that purpose.
• Please do not hesitate to contact TMO or
  us, whenever you have any doubts upon your
  accepting cargo in light of the guidelines.
• 
  KL CONTQC/CMG (April 2004)

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Cargo Acceptance Guidelines

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Bulk cargoes

• The transportation of bulk cargoes
  (unpacked) has below mentioned risks. Minimum
  requirement from CONTQC is proper setting of
  bulkhead to protect container door, but the
  risks should be well considered upon booking.
  TMO may restrict the cargo by their own judgment.
• Container doors and panels would
  receive strong pressure and easily bulge
• out by the cargo weight which could
  be further increased by rolling and
• pitching movement during navigation.
• Consequently the locking devices of
  the container doors might break and
• the cargoes spill over.
• Even if not broken, the bulge out
  itself would bring about handling
• difficulties.
• In case of hole/cut damage, the cargo
  would easily suffer wet damage.

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Chemicals with strong odor

• Certain chemicals have strong odor, which
  lingers for months and can not be removed easily,
  thus it causes huge extra cost for cleaning and
  deodorizing treatment, and in the worst case,
  total disposal of the unit.
• In 2003, following two products have been
  identified strong odor chemicals and prohibited
  without any exception.
• (1) Trichloroisocyanuric Acid (Class 5.1
  UN2468)
• (2) Crude, Refined Naphthalene (Class 4.1
  UN1334)

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Cold wave container

• We sometimes receive inquiry about so called
  cold wave container (container filled with dry
  ice to create ultra-freezing condition) and would
  reconfirm that Klines policy would not allow to
  accept such containers (neither Klines, SOC nor
  Partners) in any occasion due to not fully
  analyzed technical information, possible damage
  to containers and continuous outflow of CO2,
  which may threaten labors safety.

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Dangerous goods destined for US inland via US
rails(Improper blocking bracing)

• A lot of containers stuffed with dangerous
  goods are being rejected and ordered to rework by
  US rail due to improper blocking and bracing.
  This brings about our operational inefficiency
  and cost recovery job.
• In order to avoid such operational
  interruption and extra cost, the shippers who
  were responsible for FCL cargo stuffing, should
  follow the guideline announced by US rails and
  our POL offices are likewise required to
  enlighten them accordingly.
• Main requirements are
• Min 2 x 6 inches lumber are required
  for blocking
• Nails should be staggered side to side,
  not in a straight line, no more than
• 5 inches apart.
• Container door must not be utilized to
  sustain cargoes.
• Pallets should not be utilized as
  securing materials.

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Hide

• Hide is basically categorized into two
  types
• (1) Chrome hide
• This is half-finished products, which
  would not produce so-called hide juice. This is
  
• mainly transported in 40 containers.
• (2) Wet salted hide
• This is hide treated with salt and
  brine and would sometimes cause hide juice and
• leave strong odor in container. 20
  containers are normally used, as wet salted hide
• is much heavier than chrome hide.
  Perfect packing and lining is prerequisite
• condition for acceptance in order to
  avoid juice/odor problem.
• In general, hide requires extra cleaning
  and 7-10days waiting time (due to remaining odor
  problem) after being devanned We do not apply
  overall prohibition policy on this commodity, but
  characteristics mentioned above and problems have
  to be reminded when accepting booking. Certain
  TMO prohibit this cargo as their own trade
  management policy.

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Hot cargo (1)

• Hot cargo or hot stuffing can be simply
  defined as reefer cargo that has not been
  sufficiently frozen or cooled down to match the
  setting temperature of the reefer upon stuffing.
• What is sometimes not understood by shippers
  is the fact that reefer units are only designed
  to maintain temperatures and are not
  designed/able to freeze or cool down rapidly to
  the setting temperature.
• Therefore shippers should be reminded that
  it is their responsibility to ensure that
  potential cargoes are of a suitable temperature
  prior to being stuffed into reefers.
• General procedures are not to accept hot
  cargoes , or when it is required to be loaded by
  shippers, their Letter of Guarantee should be
  obtained before shipment.

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Hot cargo (2)(Exceptional treatment for certain
Asian countries)

• Despite our general rule stated in item Hot
  cargo (1), certain Asian countries express their
  difficulty to implement our rules perfectly
  because shippers are not fully accustomed to
  freezing or cooling down their cargo to the
  setting temperatures (partly due to lack of
  freezing facility) and unwilling to issue L/G.
  
• After interviewing with our Asian
  colleagues, we have compromised and established a
  practical rule, according to which L/G should be
  obtained without fail when the difference
  between the actual temp and setting temp is more
  than 5C (for frozen cargo only). We realize
  this is not legally recommended and subject to
  immediate review when we encounter certain
  problems.
• In order to avoid any unit disorder which is
  often reported concerning hot cargo stuffing, you
  are requested to advise to your shippers that
  unit should be always shut down during cargo
  stuffing and restarted upon (temporary) door
  closing. You may further have to suggest the
  necessity of manual defrosting, but this has to
  be done after fully consulting with IEC(ECNT) or
  other authorized experts.

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Logs/Lumber

• Logs should not be accepted, because they
  cause serious damage to containers during
  stuffing, transporting and un-stuffing.
• Lumber also has risks of container damage,
  therefore it could be only accepted when their
  method of stowage and lashing is established and
  approved by TMO. If the lumber has been treated
  in any way (i.e. Creosote), then the container
  must be lined or the cargo is to be packed.

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Magnetic cargoes

• Magnetic cargoes with strong magnetism may
  seriously affect nautical instruments on board.
  In this regard, before booking magnetic cargo,
  please obtain following information from actual
  supplier.
• (1) Magnetism leaking out of package. (The
  maximum magnetism to
• be accepted is 1 gauss)
• (2) Packing style and material (Magnet
  shield packing is required)
• Then please send application to Central
  Planner for acceptance, as it may require special
  stowage position on board.

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Malt

• Malt shipments to Japan have been regarded
  as very important base cargoes for various trade
  lanes. Due to the sensitivity of this cargo,
  Malt Task Force was set up in April, 2003 and
  General Guidelines for Malt/Hop shipments were
  issued.
• (Basic policy )
• Containers condition Food grade status
  (no foul/toxic odor, no bird
  
• 
  droppings, oil stain on exterior of container,
  No sharp
• 
  objects which may tear liner bags, etc)
• Containers age Not younger
  than 12months and not older than 8 years
• Liner bags Properly
  fitted inside container
  
• Stowage Under deck
  stowage
• For more in depth details, please refer to
  the Malt Task Force General Guidelines (latest
  issue May 31, 2004).

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Military goods

• Weapons, ammunitions and other military
  goods have never been permitted under Kline
  policy and we would like to make it clear that
  this policy remains stringently in force.
• The range of goods, which have or
  potentially could have, a military or para-
  military application is of course wide and you
  are therefore
• required to take great care and exercise due
  diligence in this respect upon your accepting
  cargoes. The fact of the shippers and/or
  consignees being governmental bodies does not by
  itself amend this policy.
• The consequences for the carriage of
  prohibited or suspicious commodities can be
  severe, which could include a vessel being
  refused entry to port, heavy fines and potential
  claims for loss of hire, loss of credit, etc.

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Overweight containers

• Overweight (in excess of max payload)
  containers must not be accepted nor loaded in any
  event, as it may cause serious physical damage
  to the containers and, as its result, might
  injure people who handle them. POD terminal
  may reject discharging them or require L/G for
  even slight excess of weight due to safety
  reason.
• Overweight containers must be detected
  through verification of booking office between
  manifested cargo weight and max payload of the
  containers.
• In case shippers manifestation is not
  correct, it also can be detected at Terminal gate
  or somewhere else, where the containers are
  actually weighed.
• Any shippers who are producing over-weight
  containers without taking proper measures should
  be blacklisted and their cargoes should be
  excluded.
• (There is also another weight restriction
  regulated by local traffic rules, which must be
  followed to avoid any troubles, penalties)
  

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Reefer as dry (RAD)

• Reefer container as dry use (Reefer as dry)
  has been promoted to save empty repositioning
  cost. While this policy would be maintained,
  please be reminded that high-priced freezer or
  complicated structure inside the reefer
  containers might be easily damaged when the
  cargoes are not chosen nor stuffed into our
  containers properly.
• Please refer to the attached technical
  guidelines for acceptable RAD commodities and
  securing method to be observed during cargo
  operation.

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Scrap (Metal,Plastic,etc)

• Scrap metal, plastic, etc are often confused
  with Waste by unscrupulous shippers and tend to
  cause troubles at POD. Therefore it is very
  important to take similar steps described in the
  item Waste in this guideline. Once it is proved
  to be non-waste, the cargo is still needed to be
  well secured in order not to damage our
  containers. Scrap in bulk must not be accepted
  without exception. To order B/Ls should not
  be accepted.
• In 2002, we are involved in metal scrap
  case which was contaminated with radioactivity.
  This is a health hazard to all who handle the
  cargo and resulted in rejection at POD. All the
  scrap metal should be checked and ensured
  radioactivity free by shippers.
• In 2003, we are involved in the plastic
  scrap case, which was finally ordered to be
  shipped out by POD authority after staying almost
  two years in the terminal.
• In both cases, Kline had to bear extra cost
  and exert a lot of efforts to solve the problem.
  

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Shippers own containers(SOC)

• When a booking is received and the cargo is
  to be loaded and shipped in a SOC container, then
  the container should be verified to have a valid
  CSC plate and class certificates (minimum of six
  months validity) and be suitable for ocean
  transport in all respects. It is also highly
  recommendable to sign an indemnity agreement with
  shippers, who indemnify Kline harmless from any
  and all consequences that may arise as a result
  of Klines accepting the SOC.

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Stone products

• All stone products can potentially damage
  the container and in the case of slabs and blocks
  and stone products in bulk, the damage can be
  excessive. They are also often proved to have
  exceeded our vanning restrictions (stated in
  Standard vanning policy of this guideline) at
  later inspection at POD.
• Therefore it is required to carry out
  condition survey at shippers account before the
  shipments, in order to ensure that it is safely
  secured according to KLine standard vanning
  policy.
• Our containers are also likely to be damaged
  during vanning and devanning operation due to its
  cargo nature or cargo handling method being used,
  therefore on TMOs instruction it is appropriate
  to obtain Guarantee of Payment from shippers for
  any potential container damage.

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Steel coil

• Steel coils are not suitable for closed van
  container transportation due to its particular
  shape and heavy weight. It would easily lead to
  heavy container damage or even more serious
  accident involving other containers, vessel, etc.
  
• Exception may be granted by CONTQC or TMO,
  provided
• - Weight of each coil should be less than
  4kt.
• - Weight/m2 should be less than 2kt.
• - Choking, securing method should meet
  Klines requirement.
• Booking offices are required to send
  application to TMO with cargo and securing
  details and obtain their approval in advance.

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Steel product (pipe/sheet/plate)

• Steel (metal) product such as pipes/
  sheets/ plates/ingot often causes serious damage
  to our containers due to their particular shape
  and high density, therefore strict observation of
  our standard vanning policy in this guideline is
  required in order to protect our containers from
  any potential physical damage.
• When you receive booking of the cargo made
  of steel or other metals, please do not fail to
  obtain cargo details (dimension, weight, packing
  style, etc) and securing method for TMOs
  approval.

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Used parts, machinery

• Commodities such as used auto parts and
  used machineries, which may contain oil, would
  often cause serious leakage problem during
  navigation. It would not only damage our ships
  and other adjacent containers, but also possibly
  pollute our ocean.
• Besides, unscrupulous shippers may confuse
  them with unauthorized Waste (please refer to
  item Waste in this guideline).
• These commodities are only accepted,
  provided
• (1) Shippers and consignees are
  environmentally conscious and reliable parties,
  who
• take full responsibility for any
  repercussions, environmental or
  equipment-related,
• that may result. To order B/Ls
  should not be accepted.
• (2) Anti-oil leakage treatments should be
  arranged. These include the removal of all oil,
  
• the complete plugging of drain
  outlet and general examination of any sign of
• leakage.
• (3) Other anti-pollution treatments
  should be arranged. These include the laying of
• plastic sheets (strong enough for
  folk lift or other vanning /devanning machinery
  to
• be operated upon it), and the
  scattering absorbent such as saw dust on the
  plastic
• sheets and the making necessary
  arrangement to prevent oil from spilling out from
  
• plastic sheets to containers floor
  board.

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Valuable cargo

• For any valuable cargo which includes but
  is not limited to platinum, gold, silver,
  jewelry, precious stones, precious metals,
  precious chemicals, bullion, specie, currency,
  negotiable instruments, securities, writings,
  documents, pictures, works of arts, curios,
  heirlooms, collection of every nature or any
  other valuable goods whatsoever including goods
  having particular value only for Merchant, you
  must seek approval from TMO in advance.
• It should be noted that Kline is not
  covered under its normal insurance policy for any
  claims for valuable cargo, therefore it is
  necessary for Kline to obtain special insurance
  cover for these types of cargo. TMO is requested
  to contact GALG for insurance coverage before
  accepting the cargo.
• It should be also noted that proper
  security measures must be worked out and
  implemented while the cargo is under our custody.
  

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Waste

• Waste often causes serious problems, as
  international conventions such as Basel
  convention and national regulations are not fully
  recognized by concerned parties. Besides a
  waste, which is accepted today, might be banned
  tomorrow, because of change of regulations as a
  consequence of ardent environmentalist movement.
  It is perfectly possible for the carriage of
  certain types of this class of cargo to reflect
  negatively on Kline.
• Therefore if you have to take waste cargo,
  you must obtain TMOs approval after confirming
  following points.
• The commodity is non-hazardous and
  lawful in all respects for POL
• country/ Transit ports countries /POD
  country. This has to be proved by
• written confirmation of competent
  authorities.
• Shippers and consignees are well
  known, reliable parties.
• To order B/Ls should not be
  accepted.
• The commodity is fully secured and do
  not cause any damage to our
• containers.

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Other basic guidelines

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Cargo screening procedures

• Whether the shippers are credible or not comes
  first of all. If you have any doubt, proper
• investigation should be carried out
  through method established by each local office
  or TMO. Know your shipper would be the very
  basic and most important policy to enhance our
  security and protect ourselves.
• If the cargo is dangerous goods (DG) , you would
  proceed to DG application /approval procedures.
  Any errors or flaws should be fully corrected
  according to DG Handling Guide and DG Application
  Tools before shipment. If it is general cargo,
  please screen it through these Guidelines and
  confirm the pre-condition for acceptance.
  Applications to TMO/Planners are required for
  awkward cargoes, steel products, etc.
• If the cargo requires inland transportation,
  especially, by rail, your pre-investigation
  must be carried out with utmost care, because
  even only 1 inadequate container would cause
  catastrophic result (such as derailment)
  involving many other containers or people.
• If it is heavy cargo such as steel
  product, mold ,etc, please never fail to check
  each package weight and securing method and
  weight per M2,M3 for each product inside.
• Steel coils or similar products must
  not be booked without prior approval from TMO.
• (4) All the bookings have to be re-screened
  by a good system or responsible person before
  making it final.

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Container seal inventory control

• Whilst in normal circumstances we would
  expect that our (Kline supplied) container seals
  are given to our shippers on one seal per one
  booked container basis. It may also be the case
  that regular shippers, haulage contractors or
  terminals are supplied with a box in advance for
  operational convenience.
• In any case, we specifically require a
  strong control over the inventory of KLine seals
  (both of given and remaining seals), as you will
  appreciate a weak or non-documented inventory
  control could directly result in our being found
  liable for loss or damage to cargo.
• For your guidance, in recent case for which
  we could not escape our responsibility fully, two
  seals were given to a trucker for one booked
  container. The trucker (or their accomplice) put
  2nd seal after pilferage to pretend that the
  container was intact. Our way of seal control was
  severely questioned in the lawsuit.

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Containers used for DG cargoes for US

• This is an instruction circulated in
  February, 2004.
• US Coast Guard(USCG) seems to be very
  zealous in inspecting physical condition of
  containers stuffed with DG cargoes and even
  slight damage to door/front sill would cause
  trans-loading of entire cargoes.
• In this regard, it was instructed by GCCO
  that only Klines containers, which
• are manufactured in/after1998 and called
  cone damage protector type (the lower parts of
  both ends of door and front sill are cut in order
  to avoid sill damage by stepping on twist cones
  or the similar during careless operation), should
  be assigned for the DG cargoes exporting to/from
  USA with immediate effect.

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DG Placard

• It is consignees obligation to remove the
  placards before their returning empty containers
  to our depot. Therefore it is primarily required
  to remind your customers (consignees) of this
  obligation.
• It is then required to strengthen your control
  upon receipt of empty containers, e.g. by
  implementing not to accept containers with old
  placard policy and charging them for removal
  expenses.
• Then please supply only containers without old
  placards and any other old labels for new
  shipments.
• Please guide your shippers to attach correct DG
  placard at correct positions.
• (DG placard requirement)
• a) Dimension equal or larger than
  250mm x 250mm
• b) Durability able to withstand
  90days water immersion
• c) Position (for US) about 1.8 m
  above the bottom rail of equipment and away
• from any kind of marking by at
  least 3 inches.
• (for other
  area) about 1.2 m --- 1.8 m above the bottom
  rail.

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Guidelines for handling cargo and container damage

• If we failed to take proper action in handling
  cargo and/or container damage upon being
  detected, our customers trust would be easily
  lost and extra cost for dealing with the troubles
  would be possibly increased.
• In this regard, we have issued Guidelines
  for handling cargo and container damage on 31st
  March, 2005 as basic reference materials.
• You are requested to peruse and apply it in
  your daily scene.

37
Guidelines for Survey arrangement

• Purpose of survey
• When our containers are reported
  seriously damaged or cargo claim is lodged, we
  have to think of sending a surveyor to protect
  ourselves, minimize losses, or proceed to cost
  recovery, by finding out exact cause, damage
  nature, its loss amount and responsible parties.
  
• (B) General procedures
• (1) First of all, please collect all the
  available information about incident and
• cargo/container damage condition
  through all the channels including clients.
• (2) Make best estimate about cause and
  loss. US2,000 is important amount- wise
  criteria for your judgment on whether sending a
  surveyor or not, as the loss less than
  US2,000 is not covered by our insurance.
• (3) Appoint a reliable surveyor and make
  your purpose of survey very clear upon
  making order.
• (4) Check carefully preliminary survey
  report and request amendment, if you find any
  disadvantageous description for Kline in the
  report.
• (5) Send survey report to all the related
  parties.

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Partlow charts safekeeping

• Partlow charts must be carefully treated as
  confidential documents, because they are
  basically used to protect our interest against
  any cargo claims lodged by our customers. Our
  safekeeping policy are shown as follows.
• (1) Charts have to be removed before
  delivery of containers to customers.
• (a) CY delivery
• Charts have to be removed before
  gate-out. When our customers happen to have
• a chance to see Container upon
  statutory inspection or other occasions, Charts
• have to be removed beforehand
  and new Charts have to be attached.
• (b) Door delivery
• Charts have to be removed and new
  Charts have to be attached just before gate-out.
  
• Newly attached Charts have to be
  removed when the unit returns to our depot..
• (2) Removed Charts have to be kept in safe
  places
• Removed Charts have to be kept for
  two years in safe places locally and be
• available upon our inquiry.

39
Refrigerated foodstuff quarantine

• Following recent outbreaks of livestock
  diseases such as BSE, Foot and mouth disease, and
  now Avian influenza(Bird flu), etc, most
  countries are introducing very strict animal
  quarantine and veterinary import regulations on
  foodstuffs. Typically the origin of the goods
  has to be an approved country or area, therefore
  trans-loading in other countries, or unauthorized
  door opening or seal exceptions would often lead
  to rejection by quarantine office at final
  destination. In this connection, please kindly
  note
• When a machinery malfunction occurs on
  a food stuff, first and best option is always
• to repair it.
• If this fails and there appears to be
  no choice other than trans loading of cargo into
• another container, please contact
  TMO and POD office and confirm regulations at
• POD/POR in advance. The written
  approval of our clients is also required.
• Any action taken without proper
  proceedings as above would result in more
• complicated situation and further
  increase of extra cost.

40
Standard vanning policy for dry containers

• The above list shows certain restrictions
  for cargo weight and size(individual), which can
  be accommodated within our containers safely.
  These restrictions were set up to protect our
  container from any potential physical damage.
• The high density cargoes such as steel
  products, stones, etc, may exceed weight/m2 or
  Weight limit easily, therefore it is required
  to confirm cargo details and securing method for
  TMOs approval. Other restrictions were set,
  taking safety operation during vanning and
  devanning into consideration.

41
Standard vanning policy for Flat rack containers

• Flat rack containers may be used when the cargo
  nature or dimension are not suitable for usual
  dry containers (so called awkward or Out of
  Gauge OOG cargo). The above diagram shows
  certain restrictions for flat rack containers.
• Please be noted following points
• It does not mean that all the cargoes within the
  restriction could be automatically accepted.
• Awkward cargo application/approval procedures
  should be followed without exception.
• Lashing plans or other technical information
  should be submitted upon request.
• Leased flat racks, which could accommodate
  heavier cargoes (max payload about 34,000kg/20
  and 39,650kg/40), might be provided subject to
  availability.

42
Standard vanning policy for Open top containers

• Open top containers may be used when the
  cargo nature or dimensions are not suitable for
  usual dry containers (so called awkward or Out
  of Gauge cargo). The above diagram shows
  certain restrictions for open top containers.
• Please be noted following points
• It does not mean that all the cargoes
  meeting the restriction could be automatically
• accepted. Awkward cargo
  application/approval procedures should be
  followed without
• exception.
• Lashing plans or other technical
  information should be submitted upon request.