China investigates 10 port officials, executives over Tianjin warehouse explosions

Law firm Homan Fenwick Willan predicts the ban on hazardous cargo resulting from the deadly blast will have a major effect on liquid bulk volumes going forward.    China announced an investigation of 10 officials and port executives for “alleged neglect of duty in the Tianjin warehouse explosions, which killed at least 139 people,” according to the state news agency Xinhua.
   Xinjua said the officials under investigation include Wu Dai, head of Tianjin Municipal Transportation Commission, Zheng Qingyue, president of Tianjin Port (Group) Co., Ltd., and  Wang Jinwen, a senior official with the Ministry of Transport.
   The story said an investigation by the Supreme People’s Procuratorate found Wang violated the law to help Tianjin Ruihai International Logistics Co. Ltd., owner of the warehouse that was the site of the blasts, to pass safety evaluations and obtain approvals to handle hazardous materials.
   According to a separate statement by the Ministry of Public Security (MPS) on Thursday, the police have detained 12 suspects involved in the massive blasts that devastated the port area, including Yu Xuewei, chairman of Tianjin International Ruihai Logistics Co. Ltd., vice-chairman Dong Shexuan, and Zeng Fanqiang, an employee with a safety evaluation firm suspected of illegally helping Ruihai acquire safety evaluation papers.
   The MPS statement added that suspects Zhi Feng, general manager of Ruihai, and deputy manager Shang Qingsen are under residential surveillance.
   One report from Reuters indicated that due to the level of public outcry in the case, it is possible defendants found guilty of negligence that lead to the explosions could be sentenced to death under Chinese law.
   A briefing on the situation at the port by George Eddings of the law firm Homan Fenwick Willan said while “Tianjin authorities report that currently all terminals of Tianjin port have resumed normal operations, a number of terminals, in particular the Huisheng Terminal and Euroasia Terminal which were the closest to the blast area, have experienced port congestion and lower productivity as a result of reduced cargo storage space and damage to infrastructure. Delays have also been caused by additional cargo surveys being conducted to ensure there is no contamination from the fall-out from the explosions, in particular traces of sodium cyanide.”
   “The import and export of dangerous goods cargoes continues to be banned completely, affecting not only container traffic but particularly liquid bulk cargoes,” said Eddings. “Tianjin is a major base for the petrochemical industry and this has impacted on vessels calling at the port.”
   Eddings added that the ban “is unlikely to have a major impact on liner vessels, container operations, or on time chartered vessels generally. However, owners and charterers of voyage chartered vessels will be looking carefully at their demurrage and force majeure clauses given the likely delays, and in some cases, the impossibility of either delivering or shipping out cargoes from Tianjin. Every case will turn on its individual facts and particular charter terms.”