Watch Now


Wilhelmsen sounds alarm over black market refrigerants

Wilhelmsen Ships Service warned shippers and carriers that counterfeit products for reefer containers could contain a “dangerously unstable cocktail of gases.”

   Wilhelmsen Ships Service is sounding the alarm over the risk of using black market refrigerants.
   “Disposable cylinders represent a significant risk to port workers and support a black market in counterfeit refrigerants,” the company said in an advisory, noting that in 2011, several refrigerated containers exploded, killing three port workers.
   “While there has been no further tragedies since then, counterfeit refrigerants remain in circulation and still represent a significant safety risk,” said the firm, which is part of the Wilh. Wilhelmsen group and supplies safety products and services, Unitor products, Unicool refrigerants, Unitor and Nalfleet marine chemicals, maritime logistics and ships agency to the maritime industry
   “Counterfeit refrigerant cylinders typically consist of a dangerously unstable cocktail of gases, blended to roughly mimic the most common refrigerant, R-134a. These cylinders are often loaded with rogue gases such as R-40. Though similar to R-134a, R-40 reacts with aluminum to form trimethylaluminum, a highly volatile substance that, when exposed to air, can explode,” said Wilhelmsen. “At best, these fake refrigerants perform poorly, are energy-inefficient and are likely to damage hoses, seals and compressors. At worst, they are highly toxic, and in the case of the fatal accidents in Vietnam, China and Brazil in 2011, highly volatile.”
   It cited estimates from the insurer TT Club that R-40 contamination accounts for 0.2 percent of the world’s reefer container fleet, affecting about 2,500 reefers. Wilhelmsen said other counterfeit refrigerant mixtures, such as those containing R-50, R-744, R-22 or R-170, are also considered unsafe, so the number of reefers affected could actually be much higher.
   “Some operators may be unaware of the potential risk of using counterfeit refrigerants, while others may be seeking to cut costs. However, the main reason these refrigerants continue to circulate is because of the continued existence of disposable cylinders,” said Wilhelmsen.
   Svenn Jacobsen, technical product manager, refrigeration at Wilhelmsen Ships Service, says the absence of a worldwide ban on disposable cylinders has created a robust market for counterfeiters.
   “These cylinders are the container of choice for the counterfeiter,” he said. “Cheap and untraceable, no counterfeiter is ever going to get any complaints from their customers using this type of packaging”.
   Jacobsen said counterfeiters offer what appear to be authentic, trademarked refrigerants. Manufacturers such as Honeywell, Linde and Dupont, have taken legal action to crack down on counterfeiters and changed packaging to discourage fakes, but according to Wilhelmsen, “counterfeit refrigerants remain an industry menace. Even elaborate precautions, such as holographic seals or cylinder stamps, are easily copied in days rather than months.”
   Jacobsen believes disposable cylinders should be banned.
   “If the legitimate refrigerant suppliers no longer provided refrigerants in disposable cylinders, the counterfeiters would be out of business,” he said. “We don’t support their use and we believe a worldwide ban is far overdue.”
   In 2007, the European Union (EU) banned disposable refrigerant cylinders in the EU and on EU-flagged vessels. Similar bans are also in place in Canada, India and Australia. However, disposable refrigerant cylinders are still in use elsewhere in the world.
   EU legislation introduced in January may exacerbate the issue, said Jacobsen.
   The new EU regulation applies to the use of hydrofluorocarbon (HFC) R-134a. HFCs are fluorinated greenhouse gases (f-gases) with a relatively high Global Warming Potential (GWP). So while R134-a is an ozone-friendly, chlorine-free, energy-efficient, low toxicity refrigerant, its use still accelerates climate change.
   The EU regulation (EC517/2014) calls for the total supply of HFCs across the EU to be reduced to just 63 percent of the 2009-2012 baseline quantity by 2018, measured as the total tonnes of carbon dioxide equivalent (CO2e). This sustained reduction in capacity will continue until it reaches just 21 percent of the original baseline figure by 2030.
   Jacobsen applauded the EU’s bold move to reduce the environmental impact of R-134a refrigerants, but cautioned that these regulations may inadvertently create a strong market for suppliers of counterfeit refrigerants.
   “It is likely that the reduction in the supply of EU HFCs will lead to shortages and a sharp spike in costs, meaning some operators will be tempted to purchase lower-price refrigerants,” he said. “This regulatory change will create an ideal market for counterfeiters.”

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.