Ruling May Eliminate Soy Oil from Biodiesel
(May 5, 2009)

Notice of Proposed Rulemaking
Read../pdf

BSE Rule Changes
(April 29, 2009)

The new BSE rule changes effective date has been changed from April 27 until October 26, 2009.

Updated AFOA Arbitration Rules
(March 2009)

The American Fats and Oils Association (“AFOA”) has made arrangements to transfer the administration of its arbitrations to the American Arbitration Association as of March 8, 2009.  

Transportation Committee
(12/2005)

IMO Annex II Revision

The following cargos, mentioned in the last Transportation Committee report have been evaluated by the GESAMP working group. The evaluations have been forwarded to the ESPH for categorization under the revised IMO Annex II. They were given the same hazard ratings as the original 18 oils and thus will likely be categorized in the same fashion, namely; Category Y, requiring IMO Annex II type 2/3 double hull ships, and pre-wash for viscosity of greater than 50 milli Pascals at pumping temperature.
High-erucic acid rapeseed oil Palm kernel olein
Illipe oil Palm kernel stearin
Mango kernel oil Palm fatty acid distillate
Mixed acid oil Safflower oil
Palm acid oil Shea butter

Other products not presently listed need to be addressed as soon as possible.

The United States Coast Guard has stated that it will not be able to promulgate regulations in time to meet the January 1, 2007 implementation date and will likely issue a guideline in the interim before full regulations can be properly developed.

The viscosity of a fat or oil at its pumping temperature is still an issue of concern to the Industry. Milli-pascals (mPa) is a unit used to describe viscosity. If a cargo has a viscosity of greater than 50 mPa at its pumping temperature then the tank used to carry that cargo cannot have its washing flushed at sea. The washings must be pumped to an onshore reception facility that is permitted to handle such washings. If the Fats and Oils Industry wishes to prevent this requirement, it must develop new heating guidelines on a world wide basis. This is perhaps an area for discussion by the Veg Oil and Tallow Committees.

Railroad Update
Submitted by Dennis Bell,
Burlington Northern Santa Fe Railroad.

As you know, all levels of transportation services have been affected by the recent hurricanes in the southern region. This has been amplified by FEMA's requests for transportation services to assist in the clean up efforts at the Gulf. We heard this week, FEMA has collected open top
barge offers for the northbound movement of one half million tons of debris from NOLA, destined for the St. Louis area. The market anticipates multiple tenders will be forthcoming. Request such as these will certainly reduces available supplies, under pin demand and keep all modal rates firm.

The general outlook for domestic growth remains very strong in the coming months. Currently, all rail market segments are experiencing tremendous growth. Additionally, we expect to harvest record volumes of corn & beans again this year. All these factors, plus rising energy cost, will certainly present additional transportation challenges and service delays for the balance of year, and will likely extend into 2006.

Prior Cargo Rules

Further attempts have been made to completely harmonize the Prior Cargo Lists of FOSFA and NIOP. The only sticking point is Nitric Acid which FOSFA still considers unacceptable. The basis for this opinion is the concern about reactivity with Edible oil. However, no specifics are available. The inability to rationalize the lists gives the regulatory community a “foot in the door” to make its own lists.

*SPCC-EPA

EPA’s Spill Prevention Control and Countermeasure Rule requires plans to be submitted, reviewed, and amended by Feb. 2006. A Guidance document instructing industry on how to do this was to be made available by August 2005 and has not yet been produced. A coalition of 50 national food trade organizations has submitted a letter to EPA requesting an extension to a time six months after the promulgation of the last anticipated final rule and that the final rule contain “appropriate” rules for fats and oils. Anyone who has “oil” stored in any size container will be required to have a SPCC plan.

Transportation Committee Chairman - Liam J. Rogers

UPDATE ON INTERNAIONAL
MARITIME ORGANIZATION
(IMO) REVISIONS

As mentioned previously to our membership, the IMO has revised the International Convention for The Prevention of Pollution from Ships. Part of this revision was the recategorization of the chemical cargos in the convention’s Annex II. Vegetable and animal oils and fats are part of this annex. These revisions become effective on January 1, 2007. Annex II is accompanied by a listing of cargo names representing products that may be carried under the convention. This list is known as Chapter 17 of the International Bulk Chemical Code (IBC).

There are presently 18 oils and fats listed in the new Chapter 17 of IBC. They are as follows:

• CASTOR OIL
• COCONUT OIL
• CORN OIL
• COTTON SEED OIL
• FISH OIL
• GROUNDNUT OIL
• LARD LINSEED OIL
• OLIVE OIL
• PALM KERNEL OIL
• PALM OIL
• PALM OLEIN
• PALM STEARIN RAPESEED OIL
• SOYABEAN OIL
• SUNFLOWER SEED OIL
• TALLOW TUNG OIL

If a cargo is not listed in the new Chapter 17 it cannot be carried under the revised convention as of the above date.
Download Chaper 17 (300KB PDF)

In order for a cargo to be listed, it must be submitted to IMO for review of its hazard profile. IMO has established a process for this type of review. A “Product Data Reporting Form” has been made available to industry and contains sections on Identity, Physical Properties, Relevant Chemical Properties, Toxicity (Mammalian and Aquatic) and Environmental Effects.
Download Product Data Reporting Form (200KB PDF)

If a cargo of concern to any of our members is not on the list, a submission must be made to IMO to request its listing. The Product Data Reporting Forms are available through the AFOA offices as is a copy of the revised Chapter 17. We have already received forms for Safflower Oil, Shea Butter, Illipe Butter and Mango Kernel Oil. These have not yet been submitted to IMO.

Discussions are presently underway about how products such as interesterified and hydrogenated oils and fats are to be listed. The industry would like to have these types of materials listed under the “parent” oil but IMO’s position is not yet clear. Any questions regarding this issue should be passed through AFOA to the Transportation Committee.

Liam J. Rogers,
Hudson Tank Terminals Corporation
Transportation Committee Chairman