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Wall- Diameter Length Steel grade Pipe end Weight Inner Outer Packing
thickness design coating coating
from from from from from from Epoxy flow Fusion Unpacked
razor-thin as little as short joints lowest plane straight lowest coating Bonded
(1 mm and 4 mm (3-4 meter) grades cuts weights s.a. Epoxy (FBE)
less) 40 kgs
up to up to up to up to up to up to Concrete Polypropylen Ends closed
heavy wall huge dias double joints highest specially individual e (PP) with caps
(100 mm (1.400 mm (24 meter) grades designed weights of
and more) and more) (X120) bevels 20 mt and
more
other Polyethylene Crated
(PE)
Concrete Cased
Lacquer
painted
TRANSPORT OF PIPES & TUBES
Since pipes and tubes for international installations are being produced in different sizes, qualities and
utilization at plants all over the world, they are being shipped as single pieces or single bundles in
Groupage consignment
Over dimensioned Cargo
Break bulk
using all modes of transport, sea, road , rail track and air and certainly a combination of these modes.
With these combinations, pipes are being handled, stowed and stored quite often until they are
Steel prices
Steel qualities
Mode of production
Dimensions
Availabilities
Capacity utilization of the relevant pipe plants
Exchange rates
Therefore procurement departments of buyers have to compare the a.m. attributes with their own
technical requirements.
Based on these procurement decisions single pipe joints can have values of up to 22,000.00 US $ and
higher.
RISKS WHILE SHIPPING PIPES & TUBES
Traditionally the risks which might lead to damages and/or incidents and accidents are being blamed
But the truth is, that most of the risks can be reduced or avoided already in the white collar
departments
or companies, such as
It is redundant to list here ALL possible theoretical and practical risks which might negatively influence
Nevertheless it is of importance to inform you about the possible results which might occur out of the
In order to define all types of loss, we need to accept, that not only a mechanical damage, such as a
Rather, the delayed delivery of a sub shipment, a certain rust grade or already the suspicions of
exceeding an individual layer limitation inside the transport vessel can lead , under certain
circumstances, to quality problems, monetary responsibilities and will definitely create a significant
unplanned overhead.
You might be of the opinion that usually all possible losses are covered by the relevant transport
underwriters or clubs, since you finally pay an enormous insurance premium.
these losses will definitely negatively influence the relationship between seller and buyer.
It will create an unplanned incalculable time-consuming and financial overhead at all parties involved.
And will definitely negatively influence the reputation of the relevant logistic provider and what is much
worse the reputation of the pipe producer.
SEA TRANSPORTATION
MARITIME
Twistlocks
CONTAINER
CONTAINER
PROJECTS
The pipe mill, the trader and / or the shipper must prevent or exclude
Accidents
Operation failure
Liabilities
Project stops
Quality defects
Consequential damages
Apart from the actual pipe production and their physically technical challenges,
pipe mills are contractually forced by their customers to deliver the pipes according to
extensive transport regulations and guidelines with regards to safety, quality and
However, shippers are contractually fully accountable to the recipient for all transgressions,
damages
and failures which might occur within the custody of the logistic provider.
A made-up example based on a typical logistic instruction from the oil and gas industry
pipeline from an offshore gas field to an onshore distribution node with a total length of about
In addition to many highly complex technical and environmental specifications for the actual
pipeline, diverse products are purchased on world markets and transported by ship to various so -
All following numbers, figures and information are based on averages and are adapted to the sample
project.
They reflect the results from different projects with different qualities and locations.
The budgeted costs for the entire pipeline project were
34 billion US $
60,000 pipeline pipes, after concrete coating with individual weights of up to 13 tons
The forwarding, the temporary storage in the seaports, the sea transport
and all handling and lifting operation until and storage at the interim
Safety requirements
Policy requirements
Quality requirements
the consortium created their own regulations and purchase fundamentals, that affect all aspects
Reference documents
Referenced specifications
Codes, standards and regulations
HSEQ requirements
General HSEQ requirements
HSEQ lifting requirements
HSEQ handling requirements
Technical requirements
It is the obligation of the supplier to ensure that an appropriate industry standard for HSEQ will be
planned, implemented and complied with during the execution of work.
The supplier shall ensure and demonstrate that all employees and sub-contractors are aware of
this responsibility and also implement them.
The supplier shall bear all costs and any consequences for not following the rules.
Regulatory requirements,
HSEQ policies and requirements of the company,
Carrying out the work according to the approved methods of the oil- and
gasindustry
If the consortium observes that unsafe non-described activities or a violation of applicable law are
executed, or the health, safety, environmental or safety requirements are not met, then
immediately contractually agreed measures, liabilities or guarantees come into force.
HSEQ REQUIREMENTS
HSEQ MANAGEMENT SYSTEM
The supplier must have a documented and fully implemented HSEQ management system.
Technical elevators Manual handling Colour work & Personnel protective Physical hazards
sandblasting equipment
Psycho-social factors Scaffolding Traffic management Vehicle equipment Plant & human
interface
Welding Working at heights Working in confined
space
So far this all is pretty theoretical and typical regulative.
Unfortunately ALL these points and regulations here listed are permanently audited and reviewed
during the handling, loading or discharging activities.
Reasons
Financial consequences
BEVEL DAMAGES
A very large portion of pipes and tubes being shipped around the world do have a bevel with a so
called
root face.
A bevel is a slanted surface, which is generated at the pipe ends. In preparation of welds, pipes are
beveled
at the joints already in the production process before being shipped.
These beveled ends are highly sensitive with regards to impacts to these bevels. The combination of a
sensitive and exact designed bevel, the individual weight of a pipe joint and rough handling often leads
to damages, which can delay the automatic welding process during pipe laying.
Bevel damages will lead to extensive inspection and repair costs, which might also negatively
influence
ORIGIN OF BEVEL DAMAGES
Narrow stow
Wrong lifting equipment
Shifted cargo (pipes)
APPEARANCE OF BEVEL DAMAGES
REPAIR OF BEVEL DAMAGES
PREVENTION OF BEVEL DAMAGES
COSTS OF BEVEL DAMAGES
Based on a real claim I will give you just an idea what can happen.
The pipes were determined for a pipeline project in Turkey and shippers could not ship
damaged pipes back to the mill for mill repair, due to a lack of time.
Totally 124 pipes of 3.500 pipes were suffering by bevel damages of different extent.
Manual grinding and filing of bevels were strictly prohibited by receiver’s quality department.
Costs of the qualified field repair for 124 pipes
US $ 235,000.00
• Excluding shipping and handling of the mobile bevel machine.
• Including cutting of affected pipe joints and loss in length.
• Including re-measuring and inspection.
• Including handling of pipe joints.
For corrosion protection Line pipes are usually ordered at the pipemills with an outer
and / or inner coating application.
These coatings are very sensitive with regards to impacts and clamping of foreign objects.
Meanwhile the thickness of the coating application is exactly defined in the individual pipe procurement
specification. Whenever these thicknesses are changed by any kind of impact or cut, the result is a
claim by receivers with appertaining costs and consequences.
ORIGIN OF COATING DAMAGES
There are hundreds of different service companies who offer coating field repairs, but having
in mind that these repairs are subject to inspection by several parties.
We are talking about a price range of
Assuming we are talking of a damage percentage of 3 % (on piece count), which is by the
way a very low figure, a shipment of 3,500 pipe joints can easily reach a claim amount of US
$ 20,000.00 – 100,000.00.
Claims based on misunderstanding,
misinformation or / and lack of inspection.
Reasons
Financial consequences
Try to explain a Japanese project inspector who will stop an entire shipment for
24 hours, with all the financial consequences for the German supplier,
why these two officers of the police
department run around without
a helmet under suspended loads,
and the supplier has no way to
prevent this.
The inspector has a lot of 400 pipe joints (approx. 3,600 tons) completely rejected.
These pipes had to be transported back to the plant and re-measured and tested.
The inspector had expressed the suspicion that the geometry of the joints is no longer within the given
specifications because of the unclear loads in the stack.
Total damage for the supplier
290,000.00 US$
transportation costs, dead freight, loss of work, measuring costs, ordered operation etc.
Here is a mobile crane fallen on a small stack of 20 pipes
because of incorrect operation in the port:
The consequence of this incident: All mobile cranes on all sites of the pipeline were closed overnight for
three days and all mobile cranes were subjected to a technical review.
In total, over 300 mobile cranes were shut down at 125 sections and 3 ports.
On the whole pipeline over a distance of about 2,000 kilometers, there was a
3-day standstill.
The theoretical total damage from this incident amounts to over
2,76 million US$.
Can you see the small white Minivan????
In this case a „normal“ thinking human
will not believe the following:
So far not so bad, this had been agreed in the 40-page HSE requirements between the supplier and
the consignee. These rules were also the basis of the contract of carriage between the supplier and
the ship-owner, who also had the discharging and delivery to the storage area under their
responsibility.
During discharge, an inspector of the consignee appeared unannounced and shut down all the work,
by pointing out that the ambulance would be not be correct. It has cost the ship-owner AND the
supplier 24 hours to find out, what “would not be correct” means. Finally it was found out, that the
ambulance was not standing in exit direction, but in opposite direction.
Pipes were loaded in the port of Bremen for a major international pipeline project.
The vessel, a 2011 build bulkcarrier with 38.000 ton dwt, was inspected prior loading with regards to
load readiness. The holds were obviously clean and the tanktop did not have any reaction on
silvernitrate. According to the vessel’s command the holds were fresh water cleaned and ready to load
a shipment of 3.000 steel pipe joints with a total weight of approx. 33.000 metric tons. Pipes were
loaded during rain and after completion hatch covers were closed. Due to draft restrictions, the ETS
was delayed for 12 hours.
So far so good, due to a pipe number confusion, pipes in the bottom layer in one hold had to be
manually checked. By entering the hold, accompanied by a crew member, the inspector discovered a
very high grade of condensation in the hold as well as water on the tanktop. Furthermore he
discovered glaring red rust coverage at uncoated pipe ends, which were two days ago “mostly blue”.
An immediate testing of the water in the holds as well as the wet pipe ends with silver nitrate
resulted in a very strong positive reaction, indicating that nitrates of any kind are involved.
To make a long story short, all 3.000 pipe joints were discharged again and individually
decontaminated with fresh water. All holds were inspected thoroughly with the result that cargo
residues of a 9 months earlier shipment of fertilizer were found in each hold at and on the girders,
downstand beams and joists.
The heavy condensation within the hold dissolved the residues of fertilizer and contaminated ALL pipe
joints within 24 hours with a highly corrosion boosting water / fertilizer mixture. Each pipe had to be
thoroughly individually inspected, measured and cleaned.
It is the understanding of these companies, that their rules are implemented also for
small and very small cargo.
Therefore the responsibility of implementation rests with the ship-owner, charterer or shipper.
LOSS PREVENTION
LOSS PREVENTION
class rules
unhealthy smattering of knowledge expert recommendations
Human error
Accidents
Natural disasters
LOSS PREVENTION
2. Fit-for-purpose packaging
4. Regulation of responsibilities
7. Monitoring / auditing
CAREFUL PLANNING OF THE TRANSPORT ROUTE
The experience shows that you may leave the planning of the transport route only limited to a
transport provider. In extreme cases, you are always responsible for the following:
Plant
Port of loading
Interim storage
Storage
Recipient stock
Storage
CAREFUL PLANNING OF THE TRANSPORT ROUTE
Of course, and for everyone involved it is clear, that a careful planning of the transport route
is
not always as possible as you want. This mainly for time, competencies or organizational
reasons.
Make your transportation provider (e.g. shipping agent) full responsible and ask him to
describe in detail the entire transport chain under the special consideration of the sensitivity
of your cargo.
This transport management plan should be standardized and processed by each service
provider.
With this tool, the service manager employed are forced to deal with the actual topic of the
transport, so that in addition to the easy booking activity they are also responsible for the
FIT-FOR-PURPOSE PACKAGING
A fit-for-purpose storage and stowage always takes into account the following
points:
Type of transport carrier (sea, road, rail, air or combinations)
Means of transport, for example
Ship = Tweendeck/ Singledeck/ Box etc.
Trailer = Curtainsider, Box, Platform etc.
Wagon = Snps / RS etc.
Route guidance with the following important information
Climatic conditions
Political conditions
double handling ratio
Provisions of the buyer in the purchase agreement
National regulations by the consular and model rules
Disposal of lashing and stowing materials
ASSESSMENT OF ALL RISKS IN TRANSIT
Apart from the relatively simple listing of risks, the assessment of these risks is a sensitive
issue, because this must be balanced or decided between commercial considerations and
actual risks.
A very classic example is the topic STACK LIMITATION and this is not just about pipes, but
also about girders, coils and wire rods and all other stackable goods.
A small number of layers means, on the one hand, considerable transport costs and handling
costs but on the other hand, an extremely high risk of damage.
From this assessment, NOBODY can be relieved and the shipper cannot delegate this
responsibility to the carriers or terminals and stevedore companies by just ignoring the
topic.
But also the transport provider has the obligation of reducing possible damages, therefore he is
obliged to bring this matter to shippers attention, before actually carrying out the work.
An significant help is here a good communication between the sales and transport
departments.
REGULATION OF RESPONSIBILITY
A very large part, if not the majority, of the known claims are due to poor regulation of
responsibility.
The shipper as the origin principal for a transport must be able to accurately define and retrieve,
who is responsible in the transport chain for what. Who may issue instructions and for what.
The cargo owners (in the commercial case) determine by your appointment of service providers,
who is responsible for which task.
Shippers nowadays try to avoid to give anybody the chance to escape from his responsibilities,
just because they do not have made clear requirements, or the competences and areas of
responsibilities in their own company or department was not clearly communicated to the service
provider.
Therefore you should make it unequivocally clear to your sub-contractors who has the right of
representation and jurisdiction in your organization and ask the same of him / them.
Otherwise there is a risk that damages are reported to your company but you know nothing about
it. Suddenly topics such as reversal of the burden of proof being raised, and that only because
you did not respond within a certain time frame.
INVOLVEMENT OF ALL PARTIES AND LEVELS
The shipper has a bunch and wide variety of handling and transport regulations for his
products – be it standardized rules, individual or project regulations.
By handing over these paperwork the shipper takes it as granted that his service provider
will act accordingly and will pass these rules and regulations to his sub-contractors and
departments, so that all parties involved are aware of the contents of these guidelines.
Therefore shippers are more and more forced to make sure that ALL parties are fully aware
of their requirements and have to indicate by writing the implementation.
ESTABLISHING OF CLEAR HANDLING RULES
The preparation of transport and handling rules is a difficult topic.
Here are a few key points that are definitely belongs to a transport rule
Whenever you are planning to transport pipes or tubes, make sure that all parties, who are involved in
the transport are speaking the same technical language. (This explicitly includes the blue collar
personnel – because they do need to know).
Most of the problems may occur during transport tendering, when producers or traders assume that
everybody in the shipping transport industry do know what is the meaning of abbreviations and what
are the appertaining sensitivity of the explicit product.
Pipes are not just pipes, they vary not only in size and weight but extremely in sensitivity and valence.
Therefore each pipe shipment does need individual attention and individual cargo care.
Contact:
Lloydstraße 4-6
Kaffee Quartier
D-28217 Bremen / Germany
E-Mail: info@mund-bruns.de
Web: www.mund-bruns.de