Sea, Air or Overland: Best Transport to Choose, Once all of the relevant information regarding an export shipment has been obtained from the client (it can be supplier or buyer), it is then necessary for a freight forwarder to review the various modes of transportation available to transport the goods and to make a selection of the best mode or combination of modes to meet that client’s needs.
So who is this freight forwarder and why an exporter or importer needs them in transportation of their goods from origin to the destination?
Let us go with the Wikipedia definition first and then go into details.
A freight forwarder, or forwarding agent, is a person or company that organizes export shipments for individuals or corporations (exporter and importer) to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers (can be shipping line, airlines, rail or trucks) to move the goods from one country to another.
A forwarder acts as an expert in the logistics network. The freight forwarder can use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often use multiple modes for a single shipment. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city and then moved from the airport to a customer’s building by another truck.
A freight forwarder is a firm specializing in the arrangement of cargo movement on behalf of shippers. An exporter or importer is not specialized in transportation of their goods and the documents and rules and regulations need to be followed in the export transportation process.
A freight forwarder being an expert firm provides this service to smoothly transport the goods from origin to the destination. The lists of services a freight forwarder can provide are:
Ocean, air, rail or road freight transportation
Inland transportation from origin and/or to destination
Preparation of documentation
Warehousing and storage services
Consolidation and deconsolidation
Cargo insurance and customs compliance
An exporter may be unaware of details of the transportation like:
Safety and security requirements for the cargo
Reasonable transportation costs
Scheduled delivery of cargo at destination.
A freight forwarder being an expert needs to work for the shipper taking into account:
The cargo itself
The packaging of the goods
The mode of transport
The urgency of the shipment
The value of the goods
The perishability of the cargo
Whether the cargo is hazardous or not, etc.
The price for the service the shipper is willing to pay
Let us see the features, advantages and disadvantages of different modes of transport and when to choose the alternatives from one mode to another
Ocean Freight
Ocean freight is used for the movement of goods that are heavy and voluminous and do not require fast transit times. Generally speaking, water movement is less expensive on a per-unit basis than land movement and air movement.
Ocean movement does have some downsides. It is comparatively slow. Arrival times are approximate.
Goods are exposed to more risks than in other modes of transport. Damage and loss risk is greater.
Ocean carriers have a very limited liability. Heavy packing and careful stowage are required.
Sensitive electronic equipment or computers can ill stand the rolling and swaying of a three-week sea voyage, the bumping in a railcar, or the stop and go of a long truck trip. Even if the cargo is relatively bulky or heavy, the client may still opt for air freight. The high per-unit value of the goods can more easily bear the costlier air freight.
A broken-down machine may bring an entire production line to a halt. A replacement must be flown in regardless of cost; for the cost of a day’s lost production is almost certainly a multiple of the air freight cost.
The high per-unit cost is air freight’s chief drawback, but it isn’t always as bad as it may sound.
There are advantages of using air transportation that, in many cases, are not readily obvious:
Less costly packaging
Lower insurance rates
Less likelihood of damage; the quicker the goods reach the buyer, the quicker the seller gets paid; and low inventories and warehousing – the buyer keeps a limited supply of goods on hand and can replenish them quickly by using air freight.
Overland by Rail or Truck
A whole freight train might move as much as 400 TEUs with little personnel cost and over a readily available, traffic-free roadbed.
In this scenario if we imagine the number of trucks needed to move the equivalent volume, and the cost to do so. Add the restrictions imposed on trucks: licensing in each province traversed, weight limitations, mandatory rest periods for drivers, restrictions in some towns on night driving.
Long distance overland transportation is best with rail.
For shorter distances, trucks are definitely the better choice. They serve more communities and can go into remote places; they offer door-to-door delivery; they are flexible, and in many cases, they offer better rates.
Factors Determining the Transportation Mode and Routing of the Shipmentin Best Transport to Choose
Let us explain the SEA/AIR transportation by an example.
To transport from the Far East to Europe through North America. Goods are brought by fast container ocean vessels to a West Coast port and then reloaded into a Europe-bound aircraft and air-freighted from those airports.
Transit time is about 14–16 days as compared with about 30 days or so by the all-water route. Cost is about halfway between the all-air and the all-water route, and thus represents a perfect alternative between cost and speed requirements.
Sea/Air combination transportation reduces the transit time but not increasing the cost as high as all-air shipment.
Packaging and labeling of goods is needed in import and export trade because of 2 basic reasons: Marketing and distribution of the goods. The function of marketing is, the packager provides information to the customer about the product, and promotes the product through the use of color, graphics and product quality benefits and description. The distribution function, keeps the product free from damage as it is transported and stored.
If we talk about the optimal packaging, we can say it is the one that meets requirements related to service, cost, and convenience.
The package should be designed to provide the most efficient stowage of the product for transportation and storage. Good packaging affects materials handling in terms of load stability and compatibility with different means of mechanization and automation, and it satisfies warehousing needs for stack ability and efficient storage.
The cost of materials and production is of prime importance too. One has to measure warehousing, transportation, and handling costs against packaging costs and all of these against product protection and marketing effectiveness.
To sum up the main factors involved in the design of an export package are transportation handling, climate, pilferage, freight rates, durability, and, most important of all, the requirements of the consignee.
The greater number of times goods are handled or transshipped, the greater is the risk of damage or pilferage.
It is also very important to note that, the export packer must take into consideration the inherent characteristics of the cargo itself. Fragility, shape, temperature withstanding and other inherent characteristics needs to be considered of the cargo.
Let us see some common forms of Export Packaging
Fiberboard Boxes (Cardboard Boxes)
The most common economical packaging is cardboard boxing.
In the packaging shippers seek efficient but inexpensive and lightweight packaging.
The cardboard carton comes closest to fitting the description of the ideal packaging material; it is light in weight and of low cost but able to withstand normal transportation hazards and to protect contents against loss or damage.
Now, how does an exporter decide whether to select cardboard boxes or any other material made boxes?
The shipper should keep in mind the item’s vulnerability, as well as the handling and transportation hazards to be encountered in the export process and whether the cardboard boxes withheld that vulnerability.
The factors the shipper can take into consideration while choosing the quality of the cardboard boxes can be:
Resistance to compression
Resistance to puncture
Strength of the material
Resistance to moisture absorption
Nailed Wooden Boxes
The nailed wooden box is mostly used for transportation of moderately heavy commodities in international trade.
Let us see some of the advantages of using nailed wooden boxes:
Its ability to support high loads
Its ability to take difficult loads without undue distortion or breaking open
The protection it affords the contents from damage due to puncture, breakage, or crushing
Crates
Crates are mostly used to carry small machineries. There are 2 types of crates:
Open or skeleton crate
Fully sheathed or closed crate
Wire-Bound Boxes and Crates
Wire-bound boxes and crates are great use for a large variety of products not affected by minor distortions of the container.
Cleated Plywood Boxes
Cleated plywood panel boxes have many uses in foreign trade. Their lightness and comparative strength particularly recommend them for air freight shipments.
Fiberboard drums used mostly used to carry bulk-purchase food.
Multiwall Shipping Sacks
Multiwall shipping sacks or bags are used for the packaging of powdered, granular and lump materials, particularly dry chemicals.
The Need of Shipping Marks and Symbols in the Packaging and Labeling of Goods
Shipping Marks and symbols are important for the identification of the goods inside the package and also for the identification of the seller and buyer of the goods. On the outside of shipping packages all the details are mentioned that enable the carrier to move it to its ultimate consignee in a safe and responsible manner.
In the packaging marks and symbols, Consignee (identification) marks and port marks showing destination and transfer points should be large, clear, and applied by stencil with waterproof ink.
They should be applied on three faces of the packing container, preferably side, ends and top.
If commodities require special handling or stowage, the packaging should be so marked. Any cautionary markings must be permanent and easy to read.
For the benefit of cargo handlers, the internationally recognized pictographs depicted below should be used.
Palletizing Cargo for Export Shipments
Palletizing is the assembly of one or more packages on a pallet base and the securing of the load to it.
If we palletized packages in export shipments, the benefits we get are enormous in distribution of cargo, handling, stowage, and protection of the products and commodities.
Pallet loads have lots of advantages:
Packing and handling cost are significantly reduced.
The use of mechanical handling equipment, reduces the manual handling damage hazard
Pallet and unit loads eliminate the multiple handling of individual items, further reducing possible damage from manual handling
Reduce the opportunity for pilferage and theft and permit the early detection of tampering
Speeds up the loading and unloading of boxcars, trailers, intermodal containers, barges, ships, and aircraft
Facilitate the application of waterproofing protection to the load; the overwrap applied accompanies the load for the entire journey
Reduce the incidence of lost or stray items; and facilitate checking and inventory of shipment.
So How do we Palletize the Goods?
We should assemble the individual unit packages on the pallet base without an overhang.
We insert spacers between the rows or layers of irregularly shaped items. Adhesives can be used between cartons in a uniform load.
Secure the load tightly and firmly by using horizontal and vertical strapping. Plastic shrink-wrap may be used to stabilize and protect palletized loads.
Provide stacking protection to the top of the pallet by using a lumber, plywood, or fiberboard cap.
Loads that are susceptible to compression must be supported with vertical framing.
Good packaging makes the distribution of the products in the international trade safe to carry and prevents damage of the goods. The products getting lost is also minimized in the ports and transshipment port because of the good labeling.
From the practical scenario, it is seen that because of poor packaging the goods that are exported when reached to the importer was completely damaged and in no condition to use. For example: once we have seen an exporter exporting ripe tomatoes to Dubai. But when the tomatoes reached the destination port of Dubai, the tomatoes were not in the shape of tomatoes rather it got bruised and smashed to the point of becoming ketchup.
So, it should be kept in mind of the exporter that good and reliable packaging is a must in the international trade. No excuse and discount should be taken for the packaging.
The goal is very clear. In the international trade the end result is exporting an intact product from the exporter end to the final destination.
The seven Incoterms (EXW, FCA, CPT, CIP, DAT, DAP and DDP) can be used even if there is no maritime transport and where a ship is used for part of the carriage.
The four Incoterms (FAS, FOB, CFR and CIF) have the point of delivery and the place to which the goods are carried to the buyer as ports; these are, therefore, rules for sea and inland waterway transportation.
Why the shipping incoterms are needed in the international trade?
Shipping incoterms are used between buyer and seller to clarify and define the responsibilities of the two parties in a contract of sale.
When trade terms are clear, such issues as risk of ownership, payment of freight charges, documentation requirements, etc. are also clear. When terms of trade are poorly defined, these same issues can become contentious between the buyer and the seller.
For a term of trade to be appropriate, it must address two important issues:
At what specific point of the transaction does the risk of ownership pass from seller to buyer
At what specific point in time do the responsibilities for payment of freight and other charges pass from seller to buyer
The Incoterms rules provide an important negotiating tool for buyers and sellers. International traders who understand the terms thoroughly can use them to negotiate a competitive advantage. The rules are simple and their purpose is evident.
The Incoterms rules are designed to:
Avoid uncertainties of different interpretations of terms in different countries and cultures
Eliminate any possibility of misunderstandings between buyers and sellers as to their rights and obligations
EXW (Ex Works)
“Ex Works” means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (e. g., works factory, warehouse, etc.).
The seller does not need to load the goods on any collecting vehicle, nor does he need to clear the goods for export, where such clearance is applicable.
FCA (Free Carrier)
“Free Carrier” means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.
The parties are well advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
If the parties intend to deliver the goods to the seller’s premises, they should identify the address of those premises as the named place of delivery. If, on the other hand, the parties intend the goods to be delivered to another place, they must identify a different specific place of delivery.
CPT (Carriage Paid To)
“Carriage Paid To” means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. When CPT, CIP, CFR, or CIF are used, the seller fulfills his/her obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination.
DAT (Delivered At Terminal)
“Delivered At Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination.
“Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.
The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
DAP (Delivered At Place)
“Delivered At Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
DDP (Delivered Duty Paid)
“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared of import on the arriving means of transport, ready for unloading at the named place of destination.
The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.
DDP represents the maximum obligation for the seller.
Rules for sea and inland waterway transport
FAS (Free Alongside Ship)
“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.
The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.
FOB (Free On Board)
“Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
CFR (Cost and Freight)
“Cost and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the goods are on board the vessel.
The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
CIF (Cost, Insurance and Freight)
“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered.
The risk of loss of or damage to the goods passes when the goods are on board the vessel.
The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
The exporter is responsible for determining the selling price, the product development, the distribution and the promotion to make the product demandable in the international market.
As exporting companies create jobs, bring wealth into a country, and help with the balance of payments, all governments look favorably on exports and assist their exporters in the international trade.
The Importer
The role of the importer is to find goods and services that are needed or wanted by domestic consumers and industry, and bring them to market in good order.
There are three types of importers:
Those that provide finished industrial and consumer goods to individuals and to other wholesalers and retailers.
Those that provide intermediate (semi-finished) goods required to complete the manufacture of the finished product.
Those that provide raw materials used in either semi-finished or finished products.
The Freight Forwarder/Shipping Agent
If we see most international shipments, we can see it involve more than one mode of transport and it would be nearly impossible for an individual exporter or importer to arrange with the various carriers, to pick up, document, insure, transport, report to customs and deliver the goods to destination.
A freight forwarder acts as a single touch point and is capable of providing the exporter or importer with a single document covering the multiple modes of transportation that may be required to move the goods.
The freight forwarder takes all the responsibility of the transportation of the goods across borders allowing the importer and exporter to focus on the sales of the product and increase their core business.
Each shipment accepted for carriage by the carrier must be documented.
Only shipments that are properly packaged, packed, labeled and documented are accepted for shipment. For these reasons, carriers prefer to deal with international freight forwarders who ensure the goods are “ready for carriage.”
The Customs Broker
Customs brokers clear goods through customs, and account for shipments, assessing duty and taxes on behalf of their clients. The customs broker works on behalf of the importer and exporter in the release of goods and work with all customs procedures to release the goods.
Often the exporter does not want to commit the goods to shipment unless it has some guarantee that payment will be made. Equally, the importer would not wish to pay for the goods unless he/she receives some guarantee that the goods have actually been shipped.
This is where a third party, the bank, enters the picture to mitigate the risk.
Governments
Governments have a strong involvement in the international trade.
The government of the exporting country will have export-reporting requirements. If the goods travel through a third or fourth country on their journey from seller to buyer, the governments of each of those “transit” countries will have regulations that must be met and obliged.
Finally, the government of the importing nation has something to say about the types and quantities of goods that enter its country and the duties and taxes that must be paid, safety and security regulations that must be followed, data collection and delivery laws that must be obeyed.
To prevent damage and theft of cargo, we analyze the ways of how the sea and air cargo shipments get lost, damage and stolen in the origin port, transshipment port, destination port or in the process of transit.
We can summarize the reason of the sea and air cargo shipments getting lost, damage and stolen in the below 3 ways.
Handling and storage of the goods in a careless way for which the goods get lost.
Theft or pilferage of cargo
Water damage or damage of goods because of poor packaging
Let us analyze the ways of how can we prevent Loss, Damage and Theft of Sea & Air Cargo Export.
Usage of only new, well-constructed packing for the goods to export. Do not use flimsy or previously used fiberboard boxes, wood crates, or bags for the package. Good packaging will prevent theft and damage of the goods.
Usage of consolidation methods – i.e., larger boxes, crates, etc. – for smaller, multiple, or non-uniform parcels. Unitizing, palletizing, and containerization will help keep shipments together and discourage the thief and loss of the small items.
Use of cautionary markings in English and if necessary in the language of the country of destination is important. The use of international handling symbols provides added effectiveness.
Rain, high humidity, condensation, and seawater (separately or in combination) can reduce otherwise stable cargo into a ruin of soggy, stained, mildewed or rusty merchandise. We need to apply preservatives, corrosion inhibitors, or waterproof wrapping directly to the item being shipped to prevent the exported products from getting ruined.
Inspection of the container to ensure proper accommodation and protection of the cargo is important to prevent damage of the cargo.
The stowing (stuffing) and securing of goods in the container needs to be carefully done and also the unloading of the cargo need to be cautious to prevent damage to the goods in the unloading stage.
Need to have clear documentation of the cargo that is exported, to keep in track of the number of goods exported from the shipper to the buyer.
It is good to handle the cargo with mechanical handling equipment, as a result reducing exposure to the inherently rougher manual-handling techniques. So it is wise to unitize, palletize, or assemble cargo into the largest practical unit.
Most of the land border countries, local, interprovincial transportation of goods and freight is done by railways. Railway transportation is fast and comparatively cheap.
To export any goods by Railway Transportation it is very important to obtain correct cargo measurements and weights in order to ensure that adequate transport equipment is used and that any exceptions and/or special requirements are taken into account (permits, routes, handling equipment, special equipment, etc.).
The exporter is responsible to provide accurate cargo measurements and weights to the freight forwarder/carrier; this information is usually included in the commercial documentation like (commercial invoice and/or packing list).
When the cargo is shipped as a part-load (less-than-truck load (LTL), less-than-car load (LCL)), the forwarder has the possibility to have it measured and weighed at the receiving terminal and make adjustments accordingly.
Well Cars are designed to transport double-stacked containers. The bottom container sits in a depressed “well” between the trucks (“truck” is the wheel/bogie assembly on which the car rides).
By sitting between the trucks, the bottom container rides low and a second container can be stacked on top of it and remain within the clearance envelope.
The car may be designed to handle only double-stacked containers, or it can be a dual-purpose car that can handle either double-stacked containers or trailers.
Spine Cars
The container (or trailer) sits above the trucks. Due to the height of the platform above rail, there is insufficient clearance to handle double-stacked containers.
The car may be designed to handle single-stacked containers or trailers.
What is Over-Dimensional Cargo ?
Over-dimensional cargo, also called out-of-gauge cargo, oversize cargo or dimensional cargo, is freight that exceeds the legal standard-size criteria of carriers based on the mode of transport, the area and the itinerary.
When moving over-dimensional freight, the forwarder must always keep in mind rail clearances for any tunnels or bridges that the cargo might pass over or through while en route.
The railways have specially trained personnel, qualified in handling and itinerary planning for the movement of a heavy-lift or oversized piece of equipment.
How the Railways Freight Quotation is provided ?
The railways freight is quoted based on the type of service required, origin and destination, equipment needed, time frame, volume, commodity and class, cargo specifications (type of packaging, weights and sizes), perishability, risk of damage and other relevant details.
Rail rates are generally expressed in lump sum per railcar, with ancillary and surcharges for fuel, currency, demurrage and switching.
Documents need in Export any Goods by Railway Transportation
To complete the railways shipment execution process, every shipment requires three types of documentation:
Commercial documentation
Financial documentation
Transportation documentation
Commercial Documentation:
The packing list is a detailed list of contents of the shipment
A pro-forma invoice is sometimes required to confirm the order before shipping and to enable the importer to open letter of credit.
The commercial invoice documents what the buyer must pay the seller and provides information to the countries of export, import and transit.
Depending on the terms of the contract between the seller and the buyer and the method of payment agreed to (e.g., open account, advance payment, documentary credit or documentary collections), various financial documents are required, like the letter of credit advice and confirmation (if applicable), the draft, the promissory note, the bill of exchange, as required by financial institutions.
Transportation Documentation:
The main document here is the bill of lading issued by the carrier in here it is the rail bill of lading.
This rail bill of lading serves as the receipt for the goods, a contract of carriage and, in some cases, for ocean freight, a transferable title of ownership.
What to do after goods arrive in destination ?
When the shipment arrives at destination, the proper parties like importer and importer’s agent are notified, delivery appointments are made and the shipment is delivered according to instructions and against payment of applicable charges to the customs clearance.
What are the Advantages and Disadvantages of Rail Transportation ?
Advantages:
For bulk products, railways transportation is very advantageous for carriage. Exporters of bulk products such as paper, lumber, grain, chemicals, metal products, etc. use rail transportation if connected by rail route from origin to destination. These advantages include lower freight rates, capacity to handle such loads and simpler documentation.
There are a wide variety of railcars available to meet the individual requirements of every exporter.
Disadvantages:
Rail transportation can be slow for some destinations in compare to trucking.
Frequent shunting and switching in rail transportation exposes shipments to impacts that can damage the products being shipped in railways.
Dangerous goods are products that are capable of posing a significant risk to health, safety, property, or the environment.
In export dangerous (DG) goods & chemicals, dangerous goods are transported on almost every aircraft, ship, truck, and railcar every day and in every country.
Shippers, exporters, and importers must ensure that their goods are properly identified and classified as dangerous goods or not. Once they have determined their goods fall into the category of dangerous goods, they must be properly packaged, marked, labeled, documented, and finally made safe for transport.
Ensure that all national and international regulations have been complied with
Ensure that their shipment is made safe for transport
Carrier Responsibilities in the Export of DG Goods
The carrier, shipping lines or air lines, makes the ultimate decision whether the DG goods shipment is acceptable for carriage or not for the voyage.
The responsibilities of the carriers are:
Acceptance or verification that the shipment of dangerous goods has been properly prepared.
Storage of dangerous goods shipments before and after carriage.
Loading and unloading of the dangerous goods shipments on and off the means of transport.
Inspection of the shipment during handling for any leaks or damage.
Provision of information to employees regarding the presence of dangerous goods.
Reporting of any accidents/incidents and undeclared dangerous goods.
Retention of records (waybills, bills of lading, dangerous goods transport documents, shipper’s letters of instruction, training, etc.).
Training of all employees who may come into contact with shipments of dangerous goods.
As we can see there is a high responsibility among the shipper, carrier, freight forwarding agent and buyer to handle the DG goods in safe manner within the transportation.
How do the Parties Handle the Responsibility?
So, how do the parties handle the responsibility? To handle the DG goods in a proper way the parties must receive proper training.
A carrier requires training because he is transporting the goods all the way from the origin to destination port.
A freight forwarder requires training because he is offering the dangerous goods to the carrier and may also be involved in handling and transporting.
A shipper/exporter requires training because he is offering the shipment and may be involved in handling and transporting.
An importer requires training because he has control and ownership of the shipment when it arrives in Canada and may be offering, handling, or even transporting the dangerous goods.
Identification & Classification of the DG Goods
Identification and classification of the DG goods are the two main responsibilities of shippers/exporters.
The shipper/exporter first responsibility is to recognize that their shipment contains dangerous goods and then to identify the specific article or substance.
Dangerous goods are identified in two ways: by proper shipping name and by a four-digit number.
These names and numbers are recognized internationally and are the same for air, ground, and ocean transport.
An example can be: Potassium Nitrate, UN2078
It can happen that due to the conditions of transport in an aircraft and the restrictions placed on items and quantities that can be carried, an item that is considered a dangerous good for air transport may not necessarily be considered a dangerous good for ground transport.
Classification of the Dangerous (DG) Goods
Dangerous goods are divided into nine classes according to the type of hazard they represent: corrosive, explosive, flammable, toxic etc.
* Ammonia solution, batteries [wet, filled with acid], chlorine, phosphoric acid, etc.
Class 09
Miscellaneous Dangerous Substances and Articles, Including Environmentally Hazardous Substances
* Asbestos, dry ice, internal combustion engines, magnetized materials, etc.
Classification of the Dangerous (DG) Goods
It is very important to note that, it is the shippers/exporters /importers responsibility to classify their shipments and to determine what class their items fall into.
Packages containing dangerous goods must have markings and labels that alert persons physically handling the packages of the contents.
Emergency response personnel can use the markings and labels to identify the contents when responding to a dangerous goods accident, spill, or leak.
The markings are normally in English but may have a translation in another language accompanying them.
The labels are universal in nature and may have wording in English on them. Again, the wording in English may have a translation in another language along with it.
It is the responsibility of the shipper/exporter/importer to properly package, mark, and label the shipment.
DG-Goods-Packaging
For ocean transportation, the method of marking the correct technical name and of affixing labels or applying stencils of labels on packages containing dangerous goods shall be such that this information will still be identifiable on packages surviving at least three months’ immersion in the sea.
In considering suitable marking and labeling methods, take account of the durability of the materials used and of the surface of the package.
Placarding the Cargo Transport Unit (ocean container, railway car, truck/trailer)
A placard similar to the dangerous goods labels must be applied to the outside of a cargo transport unit (ocean container, railway car, truck/trailer) to identify that dangerous goods are inside.
Placarding-the-Cargo-Transport-Unit
In considering placarding methods, take account of the durability of the materials used and of the surface of the cargo transport unit.
List of additional Markings and Placards
For Ground and Ocean Transportation:
Elevated Temperature Mark
Elevated-Temperature-Mark
The above sign is for Elevated Temperature Mark Used on shipments carried at high temperatures.
(Liquids shipped at 100 oC or more; solids shipped at 240 oC or more)
Environmentally Hazardous Substance/Marine Pollutant Mark
Used on shipments that can have a negative impact on marine life or the food chain if spilled into the waterways.
Danger Placard
Danger-Placard
This is used on trucks/trailers carrying different classes or divisions of dangerous goods at the same time.
Fumigation Placard
Used on transport containers those have been fumigated with toxic substances to eliminate insects and pests.
For Air Transportation:
Magnetized Material Label
Magnetized-Material Label
Used on packages containing magnetized items that may affect the aircraft’s instruments.
Cryogenic Liquid Label
Cryogenic-Liquid-Label
The level is used on packages containing super cold (cryogenic) liquids (e.g., liquid nitrogen).
Orientation Labels
Orientation-Labels
Used on packages containing liquids (either example permitted).
Lithium Battery Label
Lithium-Battery-Label
Used as a warning not to transport damaged packages or items containing lithium batteries.
Documentation process for Sea, Air and Land Goods Shipments of Dangerous (DG) Goods
It is very important to declare the dangerous goods in transport documents before the shipment is made by the shippers/exporters/importers.
The declaration will aware all the parties in the transportation process on the type of hazard goods the vessel of airline will carry and will help determine their measures to mitigate the spill or leak.
The transport document is normally completed in English but may have a translation in another language accompanying it. It is the responsibility of the shipper/exporter/importer to complete the transport document. The freight forwarder or carrier should NOT be involved in the actual completion of the documentation. The declaration should be signed and dated by the consignor/supplier.
Air Transportation
For air transportation, there is a standard dangerous goods transport document – the IATA shipper’s declaration for dangerous goods form. The shipper’s declaration must accompany the cargo air waybill, which must also contain certain prescribed information pertaining to the dangerous goods.
The IATA shipper’s declaration must be completed by the shipper/exporter. The importer must ensure the form is completed properly prior to the goods arriving at the destination port.
Example of an Air Dangerous Goods Transport Document (IATA Shipper’s Declaration for Dangerous Goods)
IATA-Air-Dangerous-Goods-Transport-Document
Land Transportation
For land transportation, there is no specific form, but the bill of lading is used as the dangerous goods transport document, with information relating to the dangerous goods indicated on the form in a precise sequence.
Ocean Transportation
For ocean transportation, there is a multimodal dangerous goods form. This document contains specific information relating to the dangerous goods, indicated in a precise sequence.
Example of an Ocean Dangerous Goods Transport Document (Multimodal Dangerous Goods Form)
Multimodal-DG-Goods-form
Container Packing Certificate
When packages containing dangerous goods are packed onto or into any cargo transport unit, such as an ocean container, flat, trailer, or other vehicle intended for transport by sea, those responsible for the packing of the cargo transport unit should provide a container/vehicle packing certificate specifying the container/vehicle/unit identification number(s) and certifying that the operation has been carried out in accordance.
If the container packing certificate is not available while shipment, the container will not be accepted by the shipping line for the transportation.
In the multimodal dangerous goods form, the container/vehicle packing certificate is included.
Container-Packing-Certificate
Fumigation for Safety of Human Health
What is fumigation of cargo?
Fumigation of cargo is a process of releasing toxic gases (pesticides) into a cargo hold or compartment for the purpose of eliminating or avoiding infestation by insects or other pests that may cause the cargo to deteriorate.
We all know that marine shipping containers are used to transport a variety of goods throughout the world, so trade companies rely on chemical fumigants to kill invasive alien species in cargo loads, preserve cargo loads, and maximize shipping techniques. If precautionary measures are not taken, these chemicals can be harmful to human health.
Further the trading companies can take steps like:
The cargo transport unit should be fumigated in accordance with the recommendations on the Safe Use of Pesticides in Ships.
Only cargo transport units that can be closed in such a way that the escape of gas is reduced to a minimum should be used for the transport of fumigated cargo.
Cargo transport units should be identified with a warning sign affixed to the access door(s) incorporating the identity of the fumigant used, as well as the date and time of fumigation.
The transport documents for a closed cargo transport unit should show the date of fumigation and the type and amount of fumigant used.
Fumigants should not be applied to the contents of a cargo transport unit once it has been loaded aboard the ship.
Documentation and Identification of Cargo Transport Units under Fumigation
Transport documents associated with the transport of cargo transport units under fumigation should show the date of fumigation and the type and amount of fumigant used.
A closed cargo transport unit under fumigation should be identified with a warning sign as specified, affixed to the access door(s) in a location where it will be easily seen by persons attempting to enter the interior of the cargo transport unit, and incorporating the identity of the fumigant and the date and time of fumigation.
Conclusion
The reason that dangerous goods are so regulated is that they have the potential to cause a serious catastrophe. However, when they are handled and transported properly through the supply chain, they are relatively safe.
Employers and employees in the supply chain – carriers, freight forwarders, shippers/exporters, and importers – must understand their responsibilities when it comes to dangerous goods.
Employers and employees must receive the correct training for each mode of transport and for their individual job function.
Employers and employees must use and follow the requirements of the current edition of the applicable set of dangerous goods regulations: IATA for air transport, IMO for ocean transport.
All employers and employees in the supply chain must exercise due diligence to ensure that undeclared or hidden dangerous goods do NOT enter the transportation chain.
