Transport Guidance for Steel Cargoes

American Club: Transport Guidance for Steel Cargoes
7
Preface
Steel production has been at the core of industrial societies from the mid-19th century and into the 21st century. The
industrial revolution has led to an exponential growth in global steel production from 189 million tonnes in 1950, to a
peak of 1,621 million tonnes in 2014. In 2015, approximately 464 million tonnes of finished and semi-finished steel
products were sent for export, the highest volume ever exported representing 31% of all steel produced that year.
As these trade figures demonstrate, steel and steel products continue to be key commodities of today’s global economy.
The importation and exportation of steel cargoes are needed to fuel economic growth. The shipping industry, of course,
plays a central and pivotal role in safely and efficiently transporting steel cargoes around the world to meet the import
and export needs of industrialized nations and emerging markets alike.
Cargo claims have comprised, on average, about 25% of the American Club’s total claims exposure and, since 2002; steel
cargo claims make up approximately 10% of this category. In 2002, the American Club took its first major step in the
context of steel cargoes when it began sharing the costs of precautionary steel pre-load cargo surveys with its Member-
ship and set forth extensive recommendations for conducting precautionary surveys of certain steel cargoes to minimize
the prospect of spurious steel cargo claims.
Between 2002 and 2008, the average cost per steel cargo claim was US$ 31,910 per incident. Since then, the average
cost has dipped below US$ 17,000 per incident. It would appear that the American Club’s proactive and cooperative
approach with its Membership during the post-2002 period yielded fruit, culminating in further loss prevention efforts for
the Membership at large.
In 2014, the American Club updated its advice on steel cargo pre-load surveys and provided additional guidance for the
prevention of steel cargo and claims. With this backdrop, the American Club is pleased to present, Transport Guidance 
for Steel Cargoes, which addresses the carriage and shipment of steel cargoes by sea. This guidance draws upon the
knowledge and experience that the American Club has derived from its own claims, from those who are engaged in the
operation and/or chartering of vessels for the carriage of steel cargoes, and from surveyors regularly instructed to attend
steel cargo loadings and discharges.
It is our objective and hope that this guidance will increase awareness regarding all aspects of the carriage and shipment
of steel cargoes, and that it will ultimately become a useful resource for all in this trade. Members are also encouraged
to refer to the American Club’s website at

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