Transport of dangerous goods survey highlights challenges
Labelmaster, the International Air Transport Association (IATA) and the Hazardous Cargo Bulletin have announced the results of their seventh annual 2022 Global Dangerous Goods Confidence Outlook. The survey results highlighted the need for greater process consistency, increased automation and more reliable data to facilitate the safe and secure transport of dangerous goods (DGs).
“The airline industry handles over 1.25 million DG shipments annually.”
“Global supply chain disruptions have put even greater pressure on professionals and businesses tasked with shipping goods safely and compliantly,” said Robert Finn, Vice President of Labelmaster. “While there are many areas for improvement over the past year, the survey demonstrated widespread awareness of the need to improve company processes, training, technology and infrastructure. DG.”
“The airline industry handles more than 1.25 million dangerous goods shipments a year,” said Nick Careen, IATA’s senior vice president of operations, safety and security. “The growth of e-commerce and the proliferation of lithium batteries in global supply chains are two indicators that the number of DG shipments will increase. To manage them safely, we still need to improve compliance with global standards. Almost any item is safe to ship, provided we have well-trained professionals who adhere to globally recognized standards and are backed by the appropriate technology and infrastructure.
Main conclusions and recommendations
There is a solid foundation for compliance.
- Nearly a quarter of respondents (24%) said DG compliance is a competitive advantage
- A further 37% said their organizations go beyond what is required by regulation, while 39% only meet minimum requirements.
There is a realization that critical improvements are needed.
- Only 25% believe their organization’s current infrastructure is equipped to meet future needs
- 82% believe their organization’s DG investment cannot support future regulations or supply chain changes
Confidence in key aspects of CEO management hovered around 50%, indicating areas for improvement.
- 64% said they were confident in their ability to handle reverse logistics
- 56% said they received prompt/quality responses from regulatory authorities
- 55% were confident in the reliability of the baseline data
- 55% believed the technology was leveraged enough to support safe shipping
- 53% said GD rules were easy to apply
- 52% have the required budget
- 48% thought C-suite support was sufficient
- 48% noted sufficient regulatory application of DG rules
- 48% were confident in their organization’s CEO compliance
Most respondents (67%) indicated that their organization was ready to manage DGs in most or all of their locations. The main priorities have been identified as follows:
- Process automation (61%)
- Harmonization of processes throughout the supply chain (59%)
- Access complete and accurate data (52%)
- Obtaining special permits, interpretation letters, etc. (48%)
- Ensure training is effective and up-to-date (45%)
Four key recommendations stem from the investigation:
- Technology: Automate DG operations and establish reliable processes throughout the supply chain.
- Coaching: Use gamification or 3D training experiences to better train and recertify employees.
- Packaging: Use new packaging solutions to further improve efficiency, safety and compliance.
- Regulations: Use digital regulatory documents to keep DG professionals informed.
“The survey shows that it is essential for organizations to assess their CEO operations and identify processes, infrastructure gaps and areas of opportunity. The good news is that achieving meaningful improvements doesn’t have to be difficult or require large investments,” Finn said.
Careen added, “Companies don’t have to reinvent the wheel. IATA offers digital solutions to improve compliance. DG AutoCheck, for example, automates the complex and time-consuming manual task of verifying that each shipper’s declaration is correct and that the package(s) are correct, marked, labeled and packed, improving efficiency. This streamlines processes and improves security.
To learn more about the state of the global DG supply chain, download the full infographic.