Consultant Insight: Improvements needed in dangerous goods management

Despite nearly 1.25 million dangerous goods (DG) shipments handled by airfreight stakeholders each year, the industry needs more support in regulation compliance and supply chain changes. An industry survey of 439 DG professionals found that only 48% of respondents believe their organizations provide sufficient c-suite support, according to the “2022 Global Dangerous Goods Confidence Outlook” by Labelmaster and the International Air Transport Association (IATA). Indeed, penalties for not adhering to regulations are on the rise across all transportation modes. Earlier this year, the U.S. Department of Transportation (DOT) published its final ruling on increasing the minimum and maximum civil penalties for violations related to the shipment and transportation of hazardous materials. Hazmat violations Penalties for hazmat shipping violations such as failure to offer proper hazmat training are subject to a maximum penalty of $89,678, an increase of $5,000, according to the ruling. Such violations that result in serious injury, illness, death, or significant property damage are subject to a maximum penalty that has increased by more than $12,000 to $209,249. “Global supply chain disruptions have put even more pressure on those professionals and companies responsible for shipping goods safely and compliantly,” Robert Finn, vice president of marketing and product management at Labelmaster, said in a statement. “While there are many areas of improvement over the last year, the survey demonstrated widespread awareness of the need to improve dangerous goods processes, training, technology, and infrastructure.” Redefining dangerous goods [caption id="attachment_68221" align="alignright" width="310"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] A growing e-commerce market and increase in lithium batteries in the supply chain demonstrate DG shipments will only rise, said Nick Careen, vice president of operations, safety and security for IATA. “To handle them safely, we must further improve compliance with global standards,” he added. “Almost any item can be shipped safely, provided we have well-trained professionals following globally agreed standards and supported by the right technology and infrastructure.” The Federal Aviation Administration (FAA) defines DGs as “any substance or material that is capable of posing an unreasonable risk to health, safety and property when transported in commerce.” The agency says more than 3 billion tons (2.7 billion tonnes) of regulated DGs are known to be transported across all transportation modes in the U.S. each year. Identifying DGs is the first step to reducing the risks posed by using proper packaging, communication, handling and stowage, according to the FAA. In addition to lithium-ion batteries, common household items such as perfumes, nail polish and laundry liquids and powders are also classified as DGs and can also be easily ordered online. A list of commonly undeclared DGs can be found on the FAA website. Handling lithium batteries seen as ‘problematic’ Lithium batteries continue to be called out as a major concern, with 64% of survey respondents describing them as “problematic,” according to the IATA survey. In 2021, IATA launched a new industry certification program — Center of Excellence for Independent Validators (CEIV) Lithium Batteries — to improve the safe handling and transport of lithium batteries across the supply chain. “Lithium batteries are critical power sources for many consumer goods on which we all rely,” Willie Walsh, IATA’s Director General, said in the announcement. “And it is vital that we can ship them safely by air either with finished products or as components in global supply chains.” Just recently, LATAM Cargo Chile became the first airline in the world to receive IATA’s CEIV Lithium Batteries certification. “We hope that more players in the industry can become accredited in order to support the safe transportation of a product that is key to air cargo growth,” Andres Bianchi, chief executive of LATAM Cargo, said in a statement. Improving dangerous goods transportation Four key recommendations come from the annual Global Dangerous Goods Confidence Outlook survey: Automate DG operations and establish reliable processes across the supply chain; Utilize gamification or 3D training experiences to better train and recertify employees; Utilize new packaging solutions to further improve efficiency, safety, and compliance; and Use digital regulatory materials to keep dangerous goods professionals up to date.

Consultant Insight: Improvements needed in dangerous goods management

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