Tube City, ship owner disown debris in cargo
Nov 03, 2010 | 01:32 PM
| Michael Marley
Tube City IMS LLC's foreign trading unit came to an unusual stalemate with a ship owner as neither would take responsibilty for the amount of debris in a shipment of ferrous scrap unloaded at a Turkish port.
Detlef Mueller, managing director of Tube City IMS' U.S. Ferrous Trading Division, warned that problems could occur for other scrap exporters, especially when involving cargoes sold through a bank letter of credit and if made when ferrous scrap prices were declining.
"This is very dangerous, especially in a falling market," he said.
The incident in which the ship owner, and not the Turkish mill buying the scrap, complained about dirt in a cargo that originated in the Netherlands did not result in a lawsuit and was resolved with the Turkish steelmaker accepting the cargo and paying the agreed upon price for the 80/20 mix of No. 1 and No. 2 heavy melting steel scrap.....
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