Loss Prevention Advice
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On rising risks associated with scrap metal cargoes, particularly from East Coast USA and Ghent, highlighting the need for strict vigilance.
Scrap cargo: Follow the code
‘SCRAP METAL’ is a bulk cargo shipping name (BCSN) found in the IMSBC Code. It is a Group C cargo but it must not contain fine metal turnings known as ‘swarf’. If it does contain swarf, then it would likely fall under the schedule ‘FERROUS METAL BORINGS, SHAVINGS, TURNINGS or CUTTINGS UN 2793’, which is a Group B cargo.
Weather
- Details
- News /
Rising risks associated with scrap metal cargoes, particularly from East Coast USA and Ghent, highlighting the need for strict vigilance.
Scrap cargo: Follow the code
The ‘SCRAP METAL’ is a bulk cargo shipping name (BCSN) found in the IMSBC Code. It is a Group C cargo but it must not contain fine metal turnings known as ‘swarf’. If it does contain swarf, then it would likely fall under the schedule ‘FERROUS METAL BORINGS, SHAVINGS, TURNINGS or CUTTINGS UN 2793’, which is a Group B cargo.
Weather
The IMSBC Code clearly states that scrap metal should be kept as dry as practicable before loading and not loaded in the rain. The main reason for this is that when scrap metal is wet it will accelerate the oxidisation process. As oxidation is an exothermic reaction (generating heat).
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Below you will find ARC’s weekly report dated 1 October 2025, covering the period of 25 September to 1 October 2025, where the following incidents were reported:
- 2 maritime security incidents in West Africa in the last 7 days
- 1 maritime security incident in the Indian Ocean/Middle East in the last 7 days.
Full advisory at the following link
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Following renewed attacks on commercial shipping near Yemen, we would like to drawn attention to sanctions compliance and operational maritime safety on the areas of heightened concern.
According to the UKMTO, a vessel transiting the Gulf of Aden, off the coast of Yemen, came under attack on 23 September. The Shipowners’ Club has noted that sanctions compliance and operational maritime safety remain areas of heightened concern. Operators engaging in trade connected to Yemen are strongly advised to exercise extreme caution.
However, decisions regarding the use of armed security, choice of trade routes and other protective measures rest solely with the vessel operator. The recent incidents have involved vessels with outdated or indirect ties to Israel, underscoring the difficulty in identifying potential affiliations. To support risk assessment, a layered approach is recommended, considering factors such as vessel ownership structures and historical port calls to Israel.
Sanctions considerations
Ansarallah involvement: Transactions involving Ansarallah (Houthis) present significant sanctions risk exposure. Particular attention must be given to dealings or transactions with entities owned and controlled (50% or more) by Ansarallah and be treated as high-risk counterparties.
Petroleum products: There are restrictions on the delivery, offloading, or facilitation of petroleum products into Yemen where there is an Ansarallah involvement or port under Ansarallah control. Any Member considering the delivery of cargoes, including refined petroleum products to Yemen is strongly urged to undertake stringent due diligence as to the ownership of the intended port of discharge and the identity of the cargo receiver.
Enhanced due diligence: Ensure comprehensive screening of counterparties, cargoes and trade routes to avoid direct or indirect links with sanctioned parties or restricted goods. Supply chains face heightened scrutiny, with vessels, insurers, and traders exposed to potential secondary sanctions or compliance violations. These risks make financing, shipping, and insurance particularly complex and may bring it within the scope of sanctions.
Vessel and crew safety in the Red Sea