BIFAlink


Policy & Compliance


www.bifa.org


opportunity to influence. This includes activities such as the correct identification of and declaration of cargo, the gross mass of the packed CTU, segregation where appropriate and how the cargo is actually secured within. The majority of the responsibilities identified within the code are therefore placed with these stakeholders. There is evidence that the CTU Code is


gaining wider recognition in the shape of the latest IMDG Code (Amendment 39-18). Where dangerous goods are concerned, the IMDG Code now contains multiple references to the CTU Code. If cargo is not packed and secured in an


CTU Code aims to cut cargo-related incidents


The Code of Practice for Packing of Cargo Transport Units (CTU Code) addresses many of the container packing issues that lead to damage, loss, injuries and even fatalities


Poor loading and securing of cargo in transport units (CTUs) is responsible for an alarmingly high percentage of incidents through the supply chain, leading to damage, loss, injuries and fatalities. TT Club’s claims experience shows that 65% of incidents involving loss or damage to cargo are thought to be caused by poor or improper packing and securing. The ocean carriers’ Cargo Information Notification System (CINS) has also revealed that some 35% of incidents investigated relate to poorly or incorrectly packed containers. This is a global issue which should be attracting the attention of all stakeholders. The potential for the actions of one


stakeholder, having mis-declared or poorly stowed its cargo into one container, to have an impact on a vessel now carrying over 21,000 teu is very real. We have seen in the last 18 months a number of high profile losses, which are generally considered to have been caused by the cargo stowed in a single container. The proper packing and securing of cargoes is


a matter of universal supply chain concern. The IMO/ILO/UNECE Code of Practice for


Packing of Cargo Transport Units (CTU Code) seeks to address many of the common issues experienced. The CTU Code provides an encyclopaedic best practice guide and contains advice and information for all stakeholders in the


18


logistics chain – from shippers, cargo packers, forwarders and logistics companies through to road, rail and sea carriers, ports, terminals, depots and consignees. The code of practice is far more


comprehensive than the original 1997 packing guidelines from the same three influential organisations. Applicable to all types of cargo moving in dry freight, reefer and tank containers, road trailers and tankers, swap bodies and railcars, the code provides parties along the supply chain with vital information, including details of how to pack and secure items of cargo.


Defining responsibilities Chapter 4 of the code defines for the first time where responsibilities rest for the various supply chain stakeholders. Whilst the current status of the code of practice is non-mandatory international law, its content and structure are such that it is becoming widely recognised as the industry standard and will inevitably be brought into litigation. Stakeholders who are not aware of, or are not adhering to the CTU Code, are therefore placing their business at risk of attracting liabilities if incidents do occur. In terms of responsibility, the CTU Code


recognises that the stakeholders involved in shipping cargo up to the point that the doors of the CTU are closed and sealed have the greatest


appropriate manner the consequences can be severe, compounding any shortfall in correct classification or handling of dangerous goods. Whilst the CTU Code itself is not mandatory, the referencing of it in the IMDG Code, which is mandatory, makes knowledge of the CTU Code’s contents and the application of its precepts vital. Adherence to the CTU Code is a further step in


achieving true ‘cargo integrity’ not just within container trades but throughout the entire supply chain. By increasing the visibility of cargo integrity, attention can be drawn to other vital aspects of secure and safe cargo transport. This will include the proper packing of cargo


within a CTU; transparent data regarding contents (particularly classification of regulated goods) and the appropriate safe handling of such commodities; the highest standards of CTU construction and maintenance; and the most advanced methods of stowing and lashing containers onboard ships.


Safeguarding personnel These varied aspects of cargo integrity are all important in not only safeguarding the cargo itself, but also the well-being of those handling the goods at warehouses during inland transport, at ports, and of course at sea. The product of a group of experts, including


TT Club, ICHCA, GSF and WSC, amongst others, the CTU Code legitimises the chain of responsibility for all stakeholders, providing a comprehensive framework to ensure cargo can complete its entire journey safely and successfully. Freight forwarders have a vital role, not only in the physical CTU supply chain but also in disseminating general best practice and raising awareness of the CTU Code across their client base, which should result in material benefits through a reduction in the costs associated with cargo-related incidents.


BIFA would like to thank the TT Club for its assistance in preparing this article


July 2018


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20