Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

Poorly packaged containers, coupled with the shipper’s misunderstanding of the dangers of certain non-dangerous goods, may cause more than $6 billion in losses to the supply chain each year.

The well-known freight and transportation insurance company TT Club stated that “analysis consistently shows that two-thirds of accidents related to cargo damage are caused or exacerbated by bad practices when packing cargo into containers.”

And explained: "This misconduct in the supply chain has caused millions of dollars in losses, including the death of seafarers and major delays caused by container ship fires. Based on known data, all such incidents are estimated to cause economic losses of more than 6 billion US dollars each year. ."

Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

TT Club Loss Prevention Manager Michael Yarwood added: “The danger is not limited to chemical cargoes such as paints, cosmetics, cleaning products, fertilizers, herbicides and aerosols.

"A wide variety of consumer products and parts used in the manufacture of industrial products, household white goods and automobiles, if handled improperly during transportation, could cause major disasters."

"The list is long, and often surprising-barbecue charcoal, battery-powered electronics, fireworks, hand sanitizer, wool, cotton, plant fibers, marble, granite and other building materials, fish meal, seed cakes, etc."

He said: "Enterprises involved in purchasing, importing, storing, supplying or selling such goods should ensure that their procurement and logistics standards reach the highest level."

Poor packaging of containerized goods causes more than $6 billion in losses to the supply chain each year

He urged shippers to refer to the "Code of Practice for Cargo Transport Unit Packaging" ("CTU Code") jointly published by the International Maritime Organization, the International Labour Organization and the United Nations Economic Commission, which is the industry's closest regulation on container packaging.

Mr. Yarwood said: “It provides comprehensive information on all aspects of packaging and securing goods in freight containers and other modes of transportation under sea and land transportation. It can not only guide the personnel responsible for packaging and securing the goods, but also guide the collection Cargo and unpacking personnel."

He added: "This also solves the crucial issue of correctly describing and declaring goods, including any specific information about the handling of dangerous goods."

He said: "In addition to the serious health and safety risks already described above, poorly packaged containers may also cause damage to adjacent cargo in the event of an accident and cause significant consequences to the shipper."