Cargo Handling Rate for Multiple Hazard Labels

PPA Administrative Order No. 01-2005 clarifies the computation of cargo handling rates for dangerous cargoes under PPA Administrative Order No. 02-89 entitled “Cargo Handling Rate for Dangerous/Obnoxious Cargoes.”
The clarified rule applies when a dangerous cargo bears multiple hazards/risks (a principal risk plus subsidiary risk/s).
The rule for computation is that the cargo is charged on the basis of its principal risk.
Compliance is required for all concerned parties involved in handling and rate computation for such cargoes.

Section 1 provides that when the container or package bears multiple dangerous cargo labels, only the principal risk is considered in computing the premium.
Section 1 requires charging based on the principal risk even where subsidiary risks are shown through additional labels/placards.
Section 1 applies when multiple labels/placards indicate multiple hazards/classifications on the same container or package.
Section 1 establishes that premium computation must follow the principal-risk label/placard as the governing classification for rate charging.

Section 1.1 states that, under international standards, a dangerous cargo label or placard is diamond shaped with a symbol of the property on top and the United Nation (UN) code number at the bottom.
Section 1.1 requires that the label/placard be placed on all sides of the container van or package.
Section 1.1 distinguishes principal risk from subsidiary risks through labels/placards.
Section 1.1 provides that the principal risk label/placard includes both the property symbol and the UN number, while subsidiary risks labels/placards have symbols but without UN code numbers.

Section 1.2 gives BROMINE CHLORIDE as an example classified under the IMDG Code as Class 2.3.
Section 1.2 identifies the principal risk for BROMINE CHLORIDE as POISONOUS GAS (Class 2.3).
Section 1.2 states subsidiary risks for BROMINE CHLORIDE include CORROSIVE (Class 8) and OXIDIZING SUBSTANCE (Class 5.1).
Section 1.2 requires labeling/placarding so that:
- One label/placard bears the symbol of POISONOUS GAS on top and the number 2.3 at the bottom (principal risk); and
- Two other labels/placards bear the respective symbols for CORROSIVE and OXIDIZING SUBSTANCE with no numbers at the bottom (subsidiary risks).

Section 2 provides that if there is inconsistency between the shipping manifest declaration and the labels/placards pasted on the container/package, the labels/placards shall be considered.
Section 2 thereby establishes that physical labeling/placarding controls classification for purposes of applying the principal-risk charging computation.

Section 3 provides that if cargo is declared or classified as regular cargo at the port of origin and/or in its shipping manifest, it is still chargeable with a premium under PPA AO No. 02-89 when conditions are met.
Section 3 requires premium under PPA AO No. 02-89 when the cargo is in the PPA list of dangerous cargoes.
Section 3 further requires premium under PPA AO No. 02-89 when the cargo’s container or packaging physically contains a dangerous cargo label or multiple labels.

Section 4 provides that any problem arising in the classification of dangerous cargoes with multiple hazards must be brought to the Port Manager of the PMO concerned.
Section 4 requires that the reporting be done through the Safety Staff.
Section 4 directs handling of classification issues through the relevant local port management structure.

PPA Administrative Order No. 01-2005 requires guidance of and compliance by all concerned.
The order formalizes compliance rules focused on applying principal-risk basis for premium computation when multiple dangerous cargo labels/placards are present.
The order’s operative instructions apply to dangerous cargo handling rate computation under PPA AO No. 02-89 for dangerous/obnoxious cargoes.