Page 214 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 9: Characteristics of Shipping Industries

Notes

Case Study Recycled Timber Dunnage a Win for the

Shipping Industry Illawarra S&N Enterprise

llawarra S&N Enterprise collects, reprocesses and resells timber used in shipping bulk
cargo—cargo that does not get transported in shipping containers. Called ‘dunnage’,
Ithe timber is used to chock, support and distribute the weight of the cargo. Before
Illawarra S&N Enterprise developed a business for doing this, the timber had previously
not been recycled, and was dumped as waste.
Company Characteristics
Illawarra S&N Enterprise was established in 2002 for the specific purpose of recycling
dunnage. The company is located in Port Kembla, NSW, and is owned by Habibul Haque—
the sole operator.
Seeing enormous potential in dunnage recycling, and well aware of the environmental
benefits it offered, Illawarra S&N Enterprise approached Austral Asia Line (AAL) Shipping
Agencies and was granted approval to collect and use the dunnage generated from its
general cargo liner services docked at Port Kembla.
Shipping and stevedoring agencies incorporate the cost of supplying new dunnage into
every shipping load. The quantity of dunnage used per voyage varies. However, it would
not be unusual for between 50–70 cubic metres of dunnage (approximately 5–6 trees) to be
used for every brake bulk cargo vessel departing Australia. Metal strapping and cables are
also used to secure cargo and are included in general waste dunnage material calculated
for this project.
What did they do?
AAL Shipping Agencies provided their support for the idea, and the next step for Illawarra
S&N Enterprise was promoting the reuse concept to the existing market, while at the same
time exploring and developing new markets for a recycled dunnage product.
Once collected from AAL Shipping vessels at the Port Kembla multipurpose wharf, the
dunnage was processed. The timber had to be de-nailed, recut into suitable lengths, bundled
and fumigated. Certified fumigation is an essential step in the recycling process because
the timber has to meet strict international quarantine requirements. Illawarra S&N
Enterprise then resold the recycled dunnage back to AAL Shipping, at a significantly
reduced price compared to the cost of buying new dunnage.
Why did they do it?
With many years experience in the merchant navy, the principal of Illawarra S&N
Enterprise, Habibul Haque, saw first hand the amount of unnecessary waste generated
during transportation of brake bulk cargo.
Further, he became disillusioned and frustrated when he learned that disposing of this
waste overboard in international waters was common practice. Jettisoned dunnage at sea
is a hazard to marine life, particularly large mammals such as whales and dolphins, but
also coral reefs and shoals. It can also severely damage vessels or spoil coastlines and
beaches.

Contd...

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