Vol. 12 No. 56                          THE GLOBAL AIR CARGO PUBLICATION OF RECORD                          Tuesday June 18, 2013
air cargo news May 16, 2013

 

hen it comes to dangerous goods (DG) shipping, everything is in compliance—or so it seems.
Forwarders and (more to the point) their industry associations tend to complain about lack of recognition on the side of airlines.
And indeed, the relationship between forwarders and airliners is in dire need of being redefined.
     Shippers complain about why they cannot directly deal with the airlines and why airlines are seemingly unable to meet the specific needs of shippers.
     As always, there are three sides to this story, and all stakeholders involved have more or less reason to complain.
     However, when it comes to the shipping of Dangerous Goods by Air, more often than not, forwarders don’t do what they’re paid to do.
     Airlines, conversely, are sometimes unable to admit when they are in error, and shippers do business “like we have always done it.”



     All Dangerous Goods shipped by air by means of civil air transport must conform to the “ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air” in their most recent edition.
     In most cases the more restrictive “Dangerous Goods Regulations” of the International Air Transport Association are applied, since these are an industry standard and required for all DG shipped by an IATA member airline or associated airline.
     Both the ICAO TI and the IATA DGR recognize so-called “state and operator variations,” which means that both states and airlines may impose further requirements on each DG consignment.
     Typical additional requirements are the indication of emergency contact numbers, embargoing certain commodities from carriage, or requiring additional packaging measures, such as an Overpack.


     The issue at hand is that the shipper would need to know both the airline transporting the cargo and its exact routing.
     That is far away from being as trivial as it seems, since most shippers and forwarders tend to use the least expensive option.
     In other words, the cheapest offer will make it.
     This isn’t helped by the fact that state and operator variations are subject to frequent changes, updated with each addendum or corrigendum of the IATA DGR, and that shippers have a hard time incorporating such additional requirements into their shipment preparation procedures.
     Shippers tend to focus on their own business, and rightly so.
     They do not necessarily need to know which airlines have merged (IB/BA and KL/AF/MP come to mind) or cooperate in some way.
     That’s what they pay their forwarders for, but a cargo consignment booked on AF may in fact be carried by MP on a different routing than anticipated by the shipper, which means that first, the airline must inform the forwarders they work with about any such particular requirement, and second, the forwarder must communicate such requirement to the shipper prior to undertaking preparation of the shipment.
     Rejection statistics show that there are considerable shortcomings in practice.


     Let’s assume that one wants to ship 120 Liters of a medium danger paint (packing group II, for those familiar with the term) from Europe to, say, Hong Kong.
     The IATA DGR will permit the shipper to pack a maximum net quantity of 5 liters per combination packaging (consisting of inner and outer packaging components), where such shipment is to be transported aboard a passenger aircraft, or a maximum of 60 liters either per single packaging (such as a steel drum or plastic jerrican) or combination packaging at the shipper’s choice, where the consignment is intended to go on an all-cargo aircraft.
     That’s a basic requirement of the regulations, and shippers typically have no issues with that.
     However, if the forwarder has earmarked Cathay Pacific (CX) for carriage, they better inform the shipper about CX’s requirement to have all single packages overpacked (such Overpacks are intended to avoid costly damages and spills, particularly on smaller aircraft not using ULDs).
     More often than not, shippers are not provided with the original “DG acceptance check sheet” of the airline, and it seems common practice for shippers to foot rejection fees caused by forwarder’s shortcomings.
     The aforementioned “DG acceptance check sheet” is intended to ensure the shipment is in full compliance with all applicable regulatory requirements.
     Subparagraph 1.3.1 of the IATA DGR 54 require that “A shipper must fully comply with these Regulations (…).
     “In addition, shippers must comply with any applicable regulations set forth by the states of origin, transit, and destination”—and sometimes also consider the requirements of states which are just overflown.
     That’s a bold requirement, and one shippers usually can’t comply with without proper guidance from their forwarders.


     Publications such as the IATA TACT Rules—available only on a subscription basis—help to establish such additional requirements not necessarily limited to Dangerous Goods; for example, weaponry of a non-dangerous nature often requires transit permits.
     There seems to be precious little communication between shippers and forwarders about these issues.
     Most shippers admit in DG training that they do not know on which airline their shipment will fly, and more often than not the most neglected personnel group in the transport chain—the DG packer—claims to have no knowledge even about the transport mode for the shipments he is tasked to prepare.
     The latter, however, is a source for a potential disaster waiting to happen, since the air mode has certain packaging requirements that neither road, nor maritime, nor rail transport has.
     One must keep in mind that only the outside of a package can and must be inspected during a DG acceptance check. Where packages are overpacked, the DG check sheet can and must only consider the requirements applicable to such Overpack, not to the packages contained therein.
     Opening of packages that do not exhibit signs of apparent non-compliance or spill is usually limited to DG Inspectors from regulatory authorities and customs officers, and since most DG packages cannot be resealed in a compliant way, that is hardly ever done.


     Nevertheless, DG training for shippers also shows that shippers are prone to certain misperceptions in regard to the packaging materials being used.
     A common error is to assume that because the outer packaging is of the UN specification type and the particular packaging is permitted by means of the applicable packing instruction of the IATA DGR, it is in compliance.
     Nothing could be further from the truth. A package is always a packaging system, consisting of elements such as inner, outer, and intermediate packagings, seals, fittings, tape, cushioning material, absorbent material, and the like.
     What is permitted—and what is not permitted—must be determined in accordance with the packaging performance certificate and the closure instructions provided by the packaging’s manufacturer.
     A considerable number of the students in DG training qualifying for shipping DG admit that they have never seen such documentation, least of all have they ever considered “conditions normal in air transport” prior to shipping.
     Since there is no definition for normal conditions of carriage worldwide, the user is obliged to specify a packaging design that meets the requirements of his particular application, since only he knows whether the packaging will be going on a long sea voyage into hot and moist tropical climates, or by rail into cold Siberia.


     The user should know that during shipment by air, there will be a drop in air pressure.
     Thus, even in the case where the approval does not require an inner receptacle in a combination packaging, the user must have provided evidence that a test for 75 kPa or 95 kPa respectively has been successfully passed.
     As clear as the verbiage of the BAM’s regulatory guidance may be, regrettably it is not often taken into consideration when it comes to the packaging of Dangerous Goods.
     It may be noteworthy that especially large sized organizations with clearly defined reporting requirements and a multitude of DG-trained staff are subject to certain shortcomings.


     Now that we’ve laid some blame on both shippers and forwarders it should be noted that airlines also have some homework to do.
     In clear words, an IATA member carrier should not uphold a rejection where regulatory guidance from either IATA or a competent national authority indicates that the shipper is not in error (and where the shipment in question does not contradict an applicable operator or state variation).
     Such practices are certainly not the norm, but they happen far too often to put shippers at ease.
     In general—probably because of liability issues and broader experience—ground handling service providers acting on behalf of airlines often seem to do a better job than the airlines themselves, maybe because of their business relationships with all stakeholders in the transport chain.
     A considerable number of shipments are stopped in transit because of apparent shortcomings, which underlines that airlines are not entirely free from such shortcomings. Furthermore, airline cargo and passenger sales and reservation staff are not always DG trained as required, thus causing commodities which may or may not contain DG being unidentified in the first line:
     When commodities such as “spare parts,” “pharmaceuticals,” or “consumer electronics” are offered for transport, it’s the carrier’s and forwarders obligation to establish the exact nature of the goods beforehand.
     The air transport industry is changing and adapting to the requirements of volatile markets and cyclical downturns by various means, and rightly so; however, it seems that the stakeholders still do not communicate enough.
     Just as a by note, it should be said that whatever homework airlines may have to do, DG check fees are certainly not a source of ancillary revenue.
     When all related costs are factored in, DG check fees may cover the cost of the product, but not much more.
     Last but not least, IATA for one may want to work on the language quality of their foreign editions.
     Although “not legally binding,” more often than not these are the only regulatory source shippers and forwarders have at their disposal for the shipping of DG.
Jens/Flossie


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hile attending the sessions at EMO Trans Annual Meeting in Lisbon this year, we were struck by the universal benefit of sharing both ideas and logic, not only by EMO team members, but also various presenters at the four-day event.
In a world where news that appears is most often the same subject in various publications, it is both refreshing and enlightening to observe news and views off the beaten path and expressed by people involved in the effort of a solid, mid-sized transportation company.
     So while everybody else covers the mainstream in air cargo (we do as well),
FlyingTypers will always be out there in the weeds talking to the people that make this great global industry what it is today.
     The people here are not everyday names in air cargo, but by our measure they are just as important a force as any other group.


      “Eurozone is still in heavy sea,” said EMO Managing Director, Germany, Stefan Ritter, in his report to the rest of the company.
      “Trust in the sustainability of public finance in various countries is eroded.
      “To balance the budgets and make the economies more competitive again, many countries have pushed for reforms, which are in some cases extremely radical.”
      “After a stable year in a very tough 2012 driven by strong exports, in 2013 the German economy—as a whole—is at the edge of recovery, with export growth expected to jump nicely—by some estimates, as high as 6 percent.
      “Last year EMO Germany established a new business vertical that we have branded ‘Cool Chain Solutions (CCS).’
      “CCS is managed by Mrs. Nicole Ahrensfeld and is targeted primarily to the food, beverage, and pharma industries.
      “EMO Germany is also developing as a preferred resource to the automotive business, especially in the China trade, as a result of our ongoing cooperation with our network partner Gulf Agency China (GAC).
      “Automotive shippers initially do not talk about rates and service, but rather prefer to discuss processes and structures.
      “They simply talk a different language that you must know and be familiar with.
      “To that end, EMO Germany brought in Stefan Lechthaler with a solid background in this industry.
      “Stefan speaks the language.
      “Mr. Lechthaler is actively approaching mainly the bigger and mid-size suppliers in Germany and has already been successful.
      “During our joint sales calls in Germany, Mr. Lechthaler and I learned to our surprise that even big OEM suppliers do not prefer to work with companies in shipping that are sized like the ‘Big Five.’
      “They are looking for midsize LSPs, who have the network, the knowledge, and the motivation and willingness to perform.
      “Tools we developed to support our effort in this segment include our Supply Chain Visibility Software (SCVS), that has been in use since 2011 for multiple customers in Germany.
      “SCVS is the same product our partners in the USA are utilizing.
      “Our new logistic company EMO-LOG in Münster is developing very well and is growing fast.
      “In the course of the year 2012 we needed to expand our warehousing capacities there and the staff to handle the business.
      “From our point of view, this was a good step to separate logistics from freight.
      “2013 will be a challenging year for the airfreight industry in Europe.
      “The measures in the fight against international terrorism will move to a new stage.
      “As a part of the EU security initiative, it has been decided that effective April 29, 2013, all airfreight shipments will have the status ‘unsecured’ unless the shipper has qualified himself as a ‘Known Shipper.’
      “Originally the kick-off date was March 25, 2013, but this had to be postponed due to technical reasons.
      “It’s worth recalling that until March 28, 2010, it was accepted that a simple, signed security declaration handed to an authorized agent confirmed that an air shipment was secure.
      “Needless to say, those days are long gone, as other more stringent procedures will be launched come the end of next month.
      “But in security as well as all other aspects of the shipping experience and requirement, EMO Trans is compliant and in fact leading the way.”
Geoffrey/Flossie


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