Reducing risk in transit cargo

Analysis of claims by TT indicate that two thirds of incidents related to cargo damage are caused or exacerbated by poor practices at the time of packing goods into a freight container. Such supply chain malpractice results in multi-million dollar losses, including tragic containership fires with loss of seafarers lives and significant delays. Extrapolating known figures, all such incidents are estimated to result in economic losses exceeding USD 6 billion per year.

This issue is of major concern to TT, the mutual status of which underpins its commercial philosophy by urging operators to seek ways of minimising risk in the supply chain and maximising safety in all its various forms. In particular, cargo owners, whether retailers, manufacturers, traders, exporters and particularly importers, which rely so heavily on the global supply chains that transit thousands of miles of ocean and land transport, need to take responsibility to ensure these risks are mitigated. It is vital that they are well advised by their forwarding agents and other intermediaries, who are privy to the exact nature of cargoes and their potential dangers. In addition, forwarders with a global reach are often better placed ‘on the ground’ in comparison with their clients, to monitor the packing process.

It should also be understood that the dangers are not just restricted to the more obvious hazardous chemical cargoes, such as those used in paints, cosmetics, cleaning products, fertilisers, weedkillers and aerosols of all types, but also to a wide variety of consumer goods. The list is long and often surprising – BBQ charcoal, fireworks, hand sanitizer, wool, cotton, vegetable fibres, marble, granite and other building materials, fishmeal, seed cake and many more. Those involved in sourcing, importing, storing, supplying or selling such commodities should ensure their procurement and logistics standards are of the highest level.

Lithium-ion batteries
Significantly in recent years, lithium-ion batteries and the devices which they power have been added to this list. They have become a preferred energy source for many products because of their high-power density and light weight, as well as the ability to recharge. Depending on the frequency of use and re-charging a lithium battery may be expected to last several years.

Inevitably, lithium batteries are being moved by all modes of transport. However, following serious incidents, revised regulatory restrictions regarding their carriage by air, that took effect from 1 April 2022, inevitably resulted in greater volumes being transported by surface modes. Coupled with a number of recently recorded incidents, safety concerns around the shipping of lithium batteries rightly continue to grow amongst the maritime community.

The risks presented through multimodal supply chains primarily exist where newly manufactured lithium batteries are poorly manufactured, untested or defective. These have a higher propensity to malfunction. The catalyst for a fire event is typically either mechanical abuse (damage), thermal abuse (exposure to heat) or electrical abuse (over charging or allowing to discharge to dangerous levels). It is recognised that risks are higher during any period that batteries are being charged. The supply chain risk – at any point of handling, storage and transport – is compounded by used, fully or partially charged batteries.

Furthermore, some incidents have revealed the use of inadequate packaging, fundamentally compromising safety. The consequences can be dire as lithium-fuelled fires are very difficult to extinguish, prone to thermal runaway, production of toxic gases and potentially explosion. Due to the heat generated, re-ignition once a fire has been extinguished is an additional risk.

As with many cargo types, the majority of shippers will take all practicable steps to ensure that their cargo meets specifications, achieves certification and is classified, packaged, packed, labelled and declared correctly for transport. The small – frankly criminal – minority are motivated to avoid compliance, entering cargo into the supply chain that presents great risk to all.

Once lithium batteries are placed into the intermodal supply chain, there is very little opportunity for the cargo to be checked, visually or otherwise to verify compliance. Due diligence and the adherence to ‘good practice’ is therefore critical. Accurate, unambiguous and timely communication between contracting parties is also vital, ensuring that critical information is shared with all participants in a given supply chain.

Good practice defined
But what is ‘good practice’? TT’s simple response is the CTU Code, the joint publication of the International Maritime Organization, International Labour Organization and the United Nations Economic Commission for Europe. This non-mandatory global code of practice for the handling and packing of shipping containers, and other cargo transport units, for transportation by sea and land was approved in 2014.

The CTU Code sets out the principles required for effective, safe and secure packing. The guidance applies across all modes and supports not only those responsible for packing and securing cargo, but also those initiating a consignment through to those who receive and unpack the goods. However, running to 13 chapters and 10 annexes, the CTU Code’s encyclopaedic approach may be seen as complex for those wishing to locate and apply what relates to a specific function. It is undeniably wordy and still cannot address all possible cargo types in a way that can readily be applied in practice.

TT has, therefore, along with its fellow partners in the Cargo Integrity Group, compiled a ‘Quick Guide’ to the CTU Code together with a Container Packing Checklist. The Quick Guide concentrates on creating a ‘route map’ to aid understanding and implementation of the CTU Code, taking the user through the complex relationships typical in the freight supply chain.

Pests
This brief review of risk to goods in transit must also give mention to the possibility of contamination. Invasive pests can have devastating consequences for agriculture and the natural environment; the containerised pathway is being called upon to mitigate these impacts. Concerns have been increasingly expressed over the last decade that global trade has facilitated the movement of invasive plant and animal species. Inevitably, there are numerous vectors by which this may happen, but maritime freight containers and their cargoes have come under scrutiny, not least due to the multimodal nature of their movements, reaching far into hinterlands with relative ease and lack of inspection.

While there are, of course, multiple sources of potential pest contamination through a container’s journey, the most likely point of potential invasion is the location at which it is packed. The shipper once more potentially exerts control, either directly or via contractual agreement with the packer, over this process. Again guidelines exist and an important initial step in developing, improving and raising awareness of applicable standards and practices lies in a greater exposure of these to supply chain professionals. TT remains dedicated to creating such exposure.

For further information, please visit: www.ttclub.com