As per UK P&I club’s research one in six container journeys result in damage to cargo .Yet over half of these could be easily avoided!
Damage is often the result of bad packaging, choosing inadequate containers, poor labeling and insufficient security and safety measures.
The following is the advice from Thomas Millar P&I Ltd (TT Club), the world's largest marine mutual insurer, aims to increase awareness, identifying some of the most frequent causes of cargo claims and suggesting ways in which you can avoid them.
A minimal amount of time could save you a lot of expense in the long run.
Basic Principles
1. Choosing the right container 2. Checking your container 3. Produce a packing plan 4. Packaging Goods 5. Security Safety and 6. Unpacking
1. Choose the right container
Containers come in several types, lengths, widths and heights. Different shipping lines have different types of containers with different inner dimensions. Match this to your requirements.
Do not overlook climatic changes along the route that could affect your cargo.
Choose a container type that is appropriate. It is often false economy to avoid the additional cost of a container with a fan, temperature control or ventilation.
Temperatures can increase inside a container e.g. a tropical climate can produce temperatures of 50 degrees plus which in turn causes condensation and roasting.
Ensure the container has enough lashing points of the strength you require.
Confirm your requirements in writing to the freight forwarder and shipping line.
Seek guidance of the experienced freight forwarder or a shipping line.
Remember the responsibility of choosing equipment is of exporter and or importer and not of the freight forwarder. The onus is on you!
2. Checking your container
Prior to stuffing do a light test, which can reveal small holes in the container. Holes could let in moisture.
Leftovers from previous consignments may contaminate your consignment.
Residues of previous cargo could be hazardous. If in any doubt return the container for cleaning.
Watch out for structural damage such as damage to post rails or corner castings. This can cause damage to cargo. If in doubt reject the container.
Before stuffing check that you can securely lock the doors. If not reject the container.
Always check that the container is dry.
Ensure that the door gaskets aren't hard or damaged. If gaskets are damaged rainwater might seep in.
Check for rust as rust is porous, rainwater might seep in.
Watch out for taped up vents to avoid condensation.
Remove old labels as these can be misleading and lead to delays
Just a few minutes of your time prior to stuffing can reduce the chance of your cargo being damaged. If you overlook defects a court might decide negligence on your part and you may find your insurance claim is drastically reduced or even rejected.
3. Prepare a container packing plan
Most shipping lines charge by the container load. The more goods you fit into the container lower will be per unit cost to ship your goods. It is wise to draw up a packing plan to maximize the fill factor.
Remember less free space in the container mean less risk of cargo shifting.
Weight must be evenly spread; side to side, end to end.
Always keep the centre of gravity as low as possible. Place large heavy items on the bottom of the container and lighter ones on the top
Never exceed the containers maximum pay load. Pay load capacity is mentioned on the door of a container.
Never exceed over the road restrictions on route.
If cargo doesn't fill the container (under utilized box), start by covering the floor space at an even height.
If you have to leave gaps try and leave them in the centre so that the cargo can be secured by wedging them to the sidewalls.
If the upper tier doesn't run the full length of the container a vertical separator can be used to restrain it.
Use an interlocking stow whenever possible.
Unitized cargo (pallets) is often more stable and quicker to pack.
Make a point of strongly shoring and blocking the face of the stow as this prevents the cargo from falling out when the doors are open.
Place the heaviest items in the centre of the container.
Always place liquids underneath dry goods.
Ensure drums and barrels are stowed buns up and if possible separated as vibration can wear away the seams and allow the contents to escape. It is best to use a double layer of dunnage to limit damage.
Ensure you are aware of the safe loading limits of the lashing points.
Do not pack cargoes that are incompatible together e.g. cargoes that are prone to sweating packed with moisture sensitive cargo.
Some destination countries require a packing list fixed to the inside of the container door. Some destination countries require wood treatment certificates attached here too. Follow the rules.
Declare the cargo weight accurately.
4. Packaging Goods
The forces exerted on a containers contents in transit by road, rail, ship or gantry crane are considerable. If the contents are not properly secure, no matter how heavy, damage will occur.
Most shippers tend to undercut costs by not packaging their goods properly which often leads to crushed, unsalable goods. Appropriate packaging should be used to protect your investment.
Remember free space in a container increases the risk of cargo shifting. Packaging that fits in exactly (i.e. cardboard boxes) will reduce dead space and reduce the cost of dunnage. All loose items must be chocked / lashed.
Stretch or shrink wrap is great for protection against wet damage. It's not cheap but could save you money in the long run.
Use dunnage to protect non unitized cargoes from damage.
Dunnage: Materials of various types, often timber or matting, placed among the cargo for separation, and hence protection from damage, for ventilation and, in the case of certain cargoes, to provide a space in which the tynes of a forklift truck may be inserted.
Ensure that dunnage is not wet or made from unseasoned wood as this may cause condensation and damage. Be careful to check the quarantine regulations in the port of destination as they may require the dunnage to be treated or fumigated.
5. Security
No seal can stop a theft. It's main function is to signal where and when a container has been broken into.
Bolt seals are the best. Always check the seal and ensure it is the right type.
Always record the date and the seal number and keep these records safe.
Seal container yourself. Never leave the sealing of a container to a third party. Who knows how honest they are?
Enter the seal number on all shipping documentation.
Arrange a convenient time for your cargo to be delivered as this reduces the time the container is exposed to the elements and the risk of theft.
6. Safety and unpacking
Do not overlook what type of equipment the consignee has for unloading the container
Always look at all external notices/labels before you open the container
If the contents is hazardous and appears to be leaking you should evacuate the area immediately
If gas is present let it dissipate before entering the container
Always document the external appearance of the container. Are there any dents, holes, rust. Keep camera handy to take photographs.
Inspect the internal contents of the container for damage and document any found.
Keep camera handy to take photographs.
It is always best to take photographs where possible as this could assist any claims.
Before opening import container always check the seal is the right type and that the serial number agrees with the documentation. Has the seal been tampered with?
Always keep both parts of the seal until you have checked that all the cargo is present and correct.
A useful idea is to use a strap tied round the door stanchions. This will prevent the doors from swinging open and goods falling on you. Once you know you are safe you can remove the strap and open the container fully.
Doors can easily cause damage if the wind slams them - secure them open.
It is the consignee’s responsibility to clean the container to a level that you would wish to receive it.