Welcome to part three of our dangerous goods series!

Today, we’re discussing how to ship dangerous goods by Land Freight in the United States.

The Federal Motor Carrier Safety Administration, or FMCSA, estimates that around three million semi-trucks operate all over the country, driving days and nights to help Americans thrive. We see them, yet we think very little about what they carry and even less about the regulations they must uphold, especially regarding dangerous goods. Believe it or not, Land Freight accounts for 3.3 billion tons of hazardous materials shipped every year in the United States (PHMSA). And that was in 2022. The number continues to rise as our dependency on dangerous goods rises, which is becoming increasingly common in our modern society.

Land Freight is in America’s backyard. In this article, let’s break down how to safely and efficiently transport dangerous goods via truck.

*Please be advised that this article will only cover land freight regulation in the United States. Other countries have different regulations according to their respective governments, so please research the laws of other countries before shipping your dangerous goods via land freight in their backyards. *

Right! Now that we’ve laid the groundwork let’s dive in!

FMCSA and PHMSA

The United States Department of Transportation has designated two agencies to regulate hazmats for Land Freight: the Federal Motor Carrier Safety Administration (FMCSA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Besides the fact that these agencies have long names and equally troublesome acronyms to go with them, they are the leading authorities on dangerous goods transportation in the United States.

While FMCSA’s role focuses broadly on road transportation safety as a whole, PHMSA specifically targets the transportation of hazardous goods in the United States by both Land and Rail Freight. However, both play critical roles in the development and implementation of dangerous goods regulation in the United States.

For all hazardous shipments, please always consult these respective departments for complete regulatory instructions. Remember, our role is critical in keeping Americans and America safe.

But enough of the preliminaries. Let’s dive into regulation, beginning with the age-old devils of hazardous shipping…

Packaging and Labeling

Packaging

FMCSA regulations on just about everything Hazardous come directly from Title 49 of the Code of Federal Regulations.

Packaging is the first step in ensuring your shipment stays safe and keeps others safe during transit. Hazardous goods packaging is so important, in fact, that there are entire branches of packing companies that specialize in packaging for Dangerous Materials.

We would recommend DGM. Not only do they provide expert service in packaging, but they also provide dangerous good training courses for those who want to walk on the wild side.

You can find their website here. (Insert DGM Link)

Labeling

Labeling is the second most important step in safely transporting your hazardous material. It tells the random Joe handling your cargo that it’s dangerous. It keeps him safe and insurance companies happy.

The iconic hazardous label looks something like this:

I’m sure you’ve seen it before. Hazardous good labels for Land Freight are not very different from those for Ocean and Air Freight.

Still, when it comes to dangerous goods, details matter. Title 49 breaks down label regulation into three important keys…

• The labeling must be on a non-removable component of the packaging.
• The label must be in an unobstructed area.
• The label must contain the UN classification number, along with any further identifying numerals.
• The labels must be stamped, embossed, burned, printed, or otherwise marked to be easily read and understood.

When it comes to labeling, Title 49 is a wonderful resource that breaks down every single regulation for hazardous material marking, probably in the universe. Please check it out for yourself to make sure you’re complying with laws that help keep people and the planet safe!

Now, without further ado, let’s discuss…

Documentation

Title 49 of the United States Code of Federal Regulations sets out very clear rules regarding hazardous goods documentation. Documents convey crucial information to the carrier about your dangerous good, including its classification.

The main document for Land Freight would be the Bill of Lading.

However, unlike a BOL for a normal shipment, the dangerous goods BOL must meet higher standards. Its function is essentially the same as a Dangerous Goods Declaration, which is not required for domestic US shipments. The BOL tells the carrier what your dangerous good is and how to handle it. Perhaps most importantly, it assures them that it has been packaged, marked, and labeled according to regulation.

According to Title 49 (Part 172), a hazardous BOL must contain these elements:

• Description of the Hazardous Materials, including class, identification number, and packaging group I, II, or III
• The full complete name of the Hazardous Material (no abbreviations)
• All copies of the BOL must be printed in legible English
• An Emergency Response Telephone Number
• A declaration by the shipper that the hazardous materials have been packaged, marked, and labeled per DOT standards.

Title 49 is particular about this last item. It’s called the Shipper Certification. And it can’t be done in just any old way. They have two specific wordings…

“This is to certify that the above-named materials are properly classified, described, packaged, marked and labeled, and are in proper condition for transportation according to the applicable regulations of the Department of Transportation.”

Or

“I hereby declare that the contents of this consignment are fully and accurately described above by the proper shipping name, and are classified, packaged, marked, and labeled/placarded, and are in all respects in proper condition for transport according to applicable international and national governmental regulations.”

This declaration assures the carrier that you, as the shipper, have taken every precaution to ensure the safe and legal transport of your dangerous goods.

In addition, regulations demand that the shipper retain documents for hazardous shipments for two years after they have been accepted by the carrier. That’s if you’re transporting any old hazardous thingamabob.

If you’re transporting Hazardous Waste, better hold onto those documents for three years. Just in case…

*Remember, every shipment is different, so please consult the regulatory manual to ensure you comply with federal regulations. Our role is critical to keeping our people and planet safe. *

Conclusion

Shipping dangerous goods through Land Freight is not nearly as complicated as its Ocean and Air counterparts. However, it still takes a great deal of detail. Hazardous goods are always dangerous no matter how we ship them via land, air, or sea.

That’s where Veritas Global comes in! Our team of professionals is ready to walk side by side with you to ensure your dangerous goods shipment is a breeze from start to finish.

If you would like to request a quote, you can do so here. We will get back to you as soon as we can.

We offer dangerous goods services for all three primary modes of transport, so don’t hesitate to reach out!

This concludes our three-part series on dangerous goods, what they are, and how to ship them. We hope this has been helpful and insightful.

Let’s keep walking this shipping journey together!

*Sources obtained from FMSCA, PHMSA, and Title 49 of the Code of Federal Regulations.*

Welcome to part two of our dangerous goods series!

Today, we’re talking all about that phenomenon of modern transportation: Air Freight. And even more importantly…

How to Ship Dangerous Goods by Air Freight?

Air Freight is one of the leading methods for transporting dangerous goods, not least because it is quick and efficient.

But just because it’s fast doesn’t mean it’s easy. There are more variables to this shipping method, including but not limited to air pressure, temperature control, and passenger vs. cargo plane, which is where IATA swoops in. IATA, or International Air Transport Association, is another United Nations agency designed to regulate the safe transport of dangerous goods via air. The protection of human life, our skies, and aircraft is at the top of their list. The regulations discussed in this article are drawn directly from IATA’s extensive database.

Dangerous goods regulations for Air Freight are complex and difficult beasts to wrangle. But never fear! In this article, we have broken down these regulations into a digestible form.

If you’re looking to learn how to ship dangerous goods via Ocean Freight or just a rundown of what precisely a dangerous good is, check out part one of our dangerous good series here.

But before we dive into Air Freight, a note of warning…

*It is even more crucial with Air Freight that for all hazardous goods shipments, you consult IATA’s Dangerous Goods Regulations (DGR) handbook directly. Each shipment is different and requires specific, careful handling. Remember, regulations are all about keeping our people and planet safe!*

Now, let’s dive in!

One of IATA’s most valuable resources is the Dangerous Goods Checklist. It enables you to ensure that you have covered all your regulatory bases before submitting your cargo for transit.

There are three checklists: one for non-radioactive material, another for radioactive material, and finally, one strictly for dry ice. You can download the checklists below:

• Non-Radioactive Material Checklist here…
• Radioactive Material Checklist here…
• Dry Ice Checklist here…

IATA has a list of 8 steps required for every shipper wanting to ship their hazard goods via air freight.

• Comply with specific packaging requirements
• Use only the packaging permitted per IATA’s DGR handbook
• Correctly assemble and secure packaging according to instructions
• Adhere to proper quantity per package
• Ensure packaging exterior does not contain any contaminants
• Remove any previous marking of container that no longer applies
• Properly label each package
• Fill our Shipper’s Declaration of Dangerous Goods correctly along with Air Waybill

To start…

What are the Packaging Requirements for Air Freight?

The first step in packing a dangerous good per IATA regulation is to return to the SDS. As a refresher, the SDS is a “document prepared by the manufacturer or importer of a hazardous chemical” (UCSD). The SDS will provide information on hazmat classification and UN numbers. The classification of your dangerous goods is a crucial part of uncovering how exactly IATA permits your cargo to be packaged and transported and in what quantity.

IATA’s DGR handbook goes into the specifics of these regulations. So please always consult this document before submitting your cargo for transit. However, IATA requires that all dangerous good packaging meet the following requirements…

The packaging must be strong enough to withstand loading and transport from pallets and ULDS (Unit Load Devices). The packaging cannot leak or have any damage prior to shipping, and it must be able to withstand changes in pressure and temperature during transit without inflicting injury on the cargo.

There are specific companies that can help you properly pack your dangerous goods for air freight. Our top recommendation is DGM services. They specialize in packing and crating hazardous materials, as well as offering in-depth training courses for those wanting to know more!

You can visit their website here.

In addition to these requirements, IATA has broken down hazardous good packaging into three separate groups: Packing Group I, II, and III, depending on the risk of the shipment, with Group I being the highest risk and Group III being the lowest risk. These groups dictate the cargo’s packaging regulations and how they are loaded onto the plane.

Remember, packaging is an essential part of hazardous goods safety. It is the first line of defense to ensure that our people and planet stay safe. For all shipments, please always consult the DGR manual to obtain the complete regulations for your specific cargo.

Now, let’s discuss…

How Do You Label Dangerous Goods for Air Freight?

The DGR clearly states the necessity of properly labeling your hazardous cargo for transit. Labeling sends a clear message to all personnel that your cargo is dangerous and sets out clear instructions for handling your cargo during the loading process. It’s akin to putting “fragile” or “do not stack” on a regular package. However, the implications for dangerous good labeling are much higher.

IATA sets out a straightforward criteria for every label:

• The label must include the Hazmat Classification, UN Number, and Packing Group
• The label must conform to the proper shape, color, format, symbol, and text of IATA regulation.
• The label must be durable.
• The label must be printed on adhesive.
• The label must be adhered to the outside of the packaging and clearly visible.
• Every label must include an English version in addition to the language of origin.

This last item gives cause for pause. Let’s give a quick example:

If your package is traveling from Germany to the United States, then you must have two separate labels that follow the above criteria: one in German (Language of Origin) and the other in English. However, suppose your package is coming from Canada and heading to India. In that case, you must still have two separate labels, one in English, even though the United States is not your destination or origin.

Dangerous good labels for Air Freight will look something like this:

The above are in addition to the standard hazardous triangle seen below:

IATA provides an excellent resource, allowing you to purchase your labels directly from them for ease and specificity.

You can access their store here.

Once again, every label will be slightly different for every shipment, so please always consult the DGR manual for detailed instructions.

Finally, let’s talk…

Air Freight Documentation for Dangerous Goods

Similar to Ocean Freight, IATA regulation requires the shipper to complete a Dangerous Goods Declaration (DGD) alongside the standard transport document, the AirWay Bill or AWB.

Let’s discuss the DGD first.

A dangerous goods declaration tells the carrier, in this case, the airline, everything they need to know about your cargo in order to transport it safely. For Air Freight, the DGD looks like this:

You can download a PDF copy of this document here.

IATA requires all DGD’s to have the below information:

• Shipper Name
• Consignee
• Air Waybill Number
• Page of Pages Numbers
• Aircraft Limitations
• Airport Departure
• Airport Designation
• Shipment Type
• Nature and Quantity of Dangerous Goods
• Number and Type of Packaging
• Packing Instructions
• Authorizations
• Additional Handling Information – *This includes Emergency Situation Contact Information*
• Certification Statement
• Name of Signatory
• Date
• Signature

This may seem like a ton of information! But remember, your role in providing this information is crucial in delivering your cargo safely and efficiently.

In addition to the DGD, you must also fill out an AirWay Bill per IATA regulation, along with any other necessary documentation for your specific dangerous goods shipment.

Conclusion

Once your dangerous goods have been packed, labeled, and documented according to IATA regulations, they’re ready to fly! Of course, you’ll need to obtain approval from the airline when requesting a booking to ensure that your cargo is suitable for Air Travel.

Air Freight is a complex mode of transport, especially for dangerous goods. This article is not an exhaustive list of regulations and specificities; instead, we have tried to provide a brief overview to get you started on your shipping journey. That being said, please always consult IATA’s DGR manual for all hazardous goods shipments. The health and safety of people and the planet are our top priorities!

Veritas Global offers freight forwarding services directly for your dangerous good needs for all modes of transport, including Air Freight. We are here and happy to walk alongside you for all your shipping needs.

You can request a quote here. We will get back to you as soon as we can!

Next week, we will discuss how to ship dangerous goods by Land Freight in the United States. We hope you will join us!

*All sources obtained from IATA, the Federal Aviation Administration (FAA), and the University of California San Diego (UCSD).*

Dangerous goods have become an increasingly important commodity in our modernized society. According to the Federal Aviation Administration or FAA, more than 3 billion tons of hazardous goods are transported in the United States alone, with more than 261,000 tons of that total in Air Freight. And those numbers are in no way slowing down.

Dangerous goods are all around us, ranging in diversity from household items like bathroom cleaners to ultra-sensitive nuclear waste. But what exactly is a hazardous good and how does one go about shipping them to destinations across the globe?

This article will be the first in a three-part series that breaks down everything you need to know about hazardous goods. Today, we’ll discuss what a dangerous good is and how to ship it via Ocean Freight. From classification to proper shipping regulation, we’ve got you covered! So, let’s get started…

What is a Dangerous Good?

A hazardous material or “hazmat” is defined as “any substance or material capable of posing an unreasonable risk to health, safety, and property when transported in commerce” (FAA). But how do you know if your cargo fits into this description?

The United Nations has broken down these potentially harmful materials into 9 classes:

Class 1 – Explosives: This class is divided further into 6 categories as follows:

• 1 Explosives with a mass explosion hazard
• 2 Explosives with a projection hazard
• 3 Explosives with predominantly fire hazard
• 4 Explosives with no significant blast hazard
• 5 Very insensitive explosives; blasting agents
• 6 Extremely insensitive detonating substances

Class 2 – Gases: This class is subdivided into 3 categories as follows:

• 1 Flammable Gas
• 2 Non-Flammable compressed gas
• 3 Poisonous Gas

Class 3 – Flammable Liquids

Class 4 – Flammable Solids: This class is further subdivided into 3 categories as follows:

• 1 Flammable Solid
• 2 Spontaneously Combustible Material
• 3 Dangerous when wet material

Class 5 – Oxidizer and Organic Peroxide: This class is further subdivided into 2 categories as follows:

• 1 Oxidizer
• 2 Organic Peroxide

Class 6 – Poison, Poison Inhalation, and Toxic Waste: This class is further subdivided into 2 categories as follows:

• 1 Poisonous Materials
• 2 Infectious Substance (Etiologic Agent)

Class 7 – Radioactive Material

Class 8 – Corrosives

Class 9 – Miscellaneous Hazardous Materials and Lithium Batteries

Below is an excellent table from Starshipit with a few examples of cargo in these classes:

Knowing the class of your cargo is the first step in safe shipping operations. It will determine the type of packaging that needs to be used, if it is approved to travel outside the United States, and in what mode of transit. In addition to these classes, the United Nations has specific classification numbers for each type of product, known as “UN” numbers.

For instance, the UN number for Lithium-Ion batteries is UN3480. You’ve probably seen these numbers before in passing. Not only are they useful, but they are also heavily specific. Certain factors can play into the slightest changes in UN numbers. For example…

Lithium-ion batteries packed with or contained in equipment have the UN number UN3481.

It’s important to properly classify your cargo before beginning the shipping process. The best way to do this is to obtain a Safety Data Sheet (SDS) from your manufacturer. The SDS “is a detailed informational document prepared by manufacturer or importer of a hazardous chemical” (UCSD). It will tell you everything you need to know about your cargo, including its safety risks, packaging needs, and labeling, which will be discussed further below.

The regulation for transporting dangerous goods varies based on the mode of transport, the most important being Ocean and Air Freight. Road freight within the United States does not have too many differences; however, with dangerous goods, subtleties matter. We’ll discuss both Air and Road Freight and all their complexities in a later article.

For now, let’s tackle Ocean Freight.

How to Transport Dangerous Goods –

Ocean Freight

When shipping dangerous goods via Ocean Freight, look no further than the IMDG code. The code was developed by the International Maritime Organization (IMO), a specialized agency controlled by the United Nations. It breaks down step by step how to ship dangerous goods via ocean. Here, we have broken down the process into 4 simple steps:

*Please remember that every shipment is different, so there are exceptions to these steps. Please always refer to the IMDG manual for a complete process evaluation.*

Step #1: Packing and Labeling

The packaging of dangerous goods is essential for safe, efficient ocean travel. Workers and crew members, from vessels to ports, rely on safe packaging to keep them and the environment safe. Here, the SDS is most helpful. The manufacturer will designate the kind of packaging required for the designated product based on IMO regulations.

Second to this is labeling. Placing the proper label on your packed cargo alerts workers to the presence of your dangerous good and allows them to handle it properly. The iconic triangle label for hazardous goods looks like this:

Perhaps you’ve seen it before. It’s certainly not hard to miss, and that’s precisely the point. Per IMDG regulation, hazardous goods must be labeled with this triangle, which includes the correct UN number classification and the appropriate color code for its hazmat class.

For LCL cargo, this label should be appropriately applied on one side where it is clearly visible and legible. If your cargo is in a full container, the label must be on all four sides, again clearly visible and legible.

Remember, your compliance with proper packing and labeling regulations helps keep people and the environment safe from harm.

Step #2: Complete the Dangerous Goods Declaration (DGD)

The Dangerous Goods Declaration is an integral part of the shipping process. It is your confirmation to the shipping line that the goods have been classified, packaged, and labeled correctly (CTO).

The document looks like this:

• You can download a PDF version here.

Title 49 of the Code of Federal Regulations (CFR) breaks down precisely what information to include in this document:

• The full name of the dangerous good, per its UN Classification. It cannot be abbreviated and must be printed in legible English.
• The UN Number and Hazmat classification
• The Packing group in Roman numerals, as designated by the IMDG Code
• The number and type of packages
• Emergency response telephone number – this is exactly as it sounds. The shipping line must know who to call if something goes wrong with your cargo during transit.

This seems like a lot of information. But remember, many of these items can be found on the SDS for your specific dangerous goods, so acquire this document as soon as possible during the shipping process.

In addition to the DGD, IMDG regulation also requires you to fill out a Certificate of Origin, Packing List, and Bill of Lading. (Veritas Global would be happy to offer assistance in this area if required.) CFR requires that you retain all these documents two years after the shipment is accepted by the carrier. However, in the rare instance that you ship hazardous waste, you must retain these documents for three years.

(On second thought, if you’re shipping hazardous waste, don’t take my word for it. Go read the entire code for yourself and save the world!)

*Again, please see international regulation or reach out to Veritas Global for any exceptions or questions that may not be provided in this article, as each shipment is unique and requires its own specializations.*

Step #3: Steamship Line Approval

After you’ve completed the necessary documentation, you need to receive approval from the steamship line that your dangerous good is indeed ready to travel. Once you request a booking from the carrier, they’ll request a preliminary dangerous goods declaration. If this is approved, you will receive a preliminary approval and booking confirmation.

You’re dangerous good is ready to set sail…

Step #4: Sign the Final Declaration

Signing the final hazard declaration is the last step in the shipping process. It shows the steamship line that you (the shipper) have complied with all elements of the IMDG code, including classification, packaging, and labeling. The person to sign should be the shipper or someone closely affiliated with them and the shipping process.

Once this is completed, the final declaration can be submitted to the carrier. If your cargo passes this last hurdle, you will receive a final approval, and your dangerous good will be processed onto a vessel.

Congratulations! You just completed the dangerous good marathon, ocean-style!

Conclusion

Hazardous goods can be complex, and we’re just getting started! We at Veritas Global Transportation are prepared to walk alongside you throughout the shipping process. Our team of trained professionals will treat your cargo with the care it deserves.

If you have any questions about hazardous goods, we would be happy to oblige. To request a quote, click here… We will get back to you as soon as possible.

We hope you’ll join us for our next two articles where we’ll discuss shipping hazardous goods via Air and Road Freight.

Veritas Global is here for you in all your shipping needs!

*All sources obtained from Title 49 of the Code of Federal Regulations, FAA, the IMDG Code, The International Maritime Organization (IMO), Shipping Solutions, and the University of California San Diego (UCSD).*

At midnight on September 30th, approximately 50,000 longshoremen walked off the job at the ports in the East and Gulf Coasts, from New England to Texas, when their contract with the U.S. Maritime Alliance (USMX) expired.

As of now, the International Longshoremen’s Association (ILA) and the USMX have yet to reach a resolution for a contract renewal.  

This historic port strike has impacted our operations significantly and is expected to escalate once port operations resume with extreme delays, port congestion, and a backlog of cargo. During this time, Veritas Global Transportation will not be responsible for charges caused by the work stoppage. However, we will do everything we can in our power to keep your cargo moving and minimize extra costs as best we can, given the circumstances.

As an NVOCC, Veritas Global relies on vessel-operating common carriers (VOCCs), which have declared force majeure for all shipments in and out of the United States East and Gulf Coasts. We reserve all rights under our Bill of Lading Terms, including under applicable force majeure clauses, to temporarily suspend obligations where performance is affected by these extraordinary circumstances.

As previously announced, we have contingency plans in place for shipments to/from the ports affected. Below is a list of alternative solutions that we can utilize and believe will help, but we must warn you that transit time delays, congestion, and logistical issues are inevitable:

• Re-routing of containers/cargo to move via US West Coast
• Re-routing of containers/cargo to move via Canada
• Re-routing of containers/cargo to move via Mexico.
• Air Freight Solutions.
• Container trans-load on the US West Coast, Canada, and Mexico and delivery of cargo via Truck throughout USA.
• Truck solutions throughout USA, Canada, and Mexico

We value your partnership and understanding during this time. If you have any questions or need assistance, please don’t hesitate to reach out to your local Veritas Global representative. We are here to support you through this challenging period. 

To request a quote, click here.

Ocean Freight rates are yet again on the rise…

Toward the end of 2023, a golden year after the tumultuous period during the Covid-19 pandemic, Ocean Freight rates began to climb. Now, they’re reaching levels that have importers and exporters alike scrambling for answers.

In this article, we have compiled a list of 4 factors that have combined to create a perfect logistical storm. If we know the facts, we get to work on solutions, so let’s get started…

1# The Red Sea Crisis:

On October 19th, 2023, Iranian-backed Houthi rebels from Yemen launched a missile attack on Israel in direction retaliation to Israel’s invasion of the Gaza Strip. This began the long-standing Red Sea Crisis. The actions of the Houthi rebels have been directly linked to the Israel/Hamas War, as this group targets vessels specifically from nations in support of Israel (Logistics YouTuber). It is, perhaps, the catalyst event that began the climb of Ocean Freight rates.

It is reported that 10%-15% of the world’s trade goes through the Red Sea and Suez Canal (CNN). However, with this new threat, many steamship lines have diverted their vessels around the Cape of Good Hope, South Africa. This significant detour adds an additional 2-3 weeks to an average transit time if a vessel were traveling through the Suez Canal. Additionally, this extended sailing period adds dramatically to the fuel and operating costs of the steamship lines. These factors alone are enough to drive Ocean freight rates up. Additionally, the events in the Middle East have caused a chain reaction in other parts of the world.

#2 Port Singapore Congestion

There is a direct correlation between the Red Sea Crisis and the congestion in the port of Singapore. Already a main hub for Asiatic shipping and transshipments, Singapore has grown increasingly congested as vessels are rerouted from the Red Sea, making this Asian port a bottleneck for global trade (Reuters). According to India Shipping News, May 2024 saw a 66% increase in the number of vessels arriving at the Singapore port than May 2023. Currently, the port handles 2 million TEUs, which accounts for 7% of the global fleet. The wait times for vessels to berth rose to seven days at the peak of congestion in May, six days beyond the usual half-day delays (The Online Citizen). These conditions have driven freight rates to/from China and Southern Asia through the roof.

The Maritime and Port Authority of Singapore (PSA) has implemented many new tools to reduce this shipment overload. Not only have they brought unused berths back into action, but according to PSA president Ong Kim Pong, they are working on a “Node-to-Network” initiative to improve coordination with upstream and downstream ports. While President Pong insisted the delays would continue for a “prolonged period,” he assured the global supply chain of PSA’s efforts to quell this cargo storm. He said, “By leveraging our port facilities, supply chain capabilities and especially our people, we remain steadfast in enhancing collaboration with our customers to address their bespoke needs amidst the ever-changing global landscape” (Ship-Technology). Nevertheless, as the changes take root, port congestion continues to drive ocean freight rates sky-high.

#3 Potential East Coast Labor Strikes

The looming threat of strikes on the East Coast is another contributing factor to rising ocean freight rates. The International Longshoremen’s Association (ILA) has begun talks with the United States Maritime Alliance to review wage demand. ILA has reportedly requested a 77% pay bump over the course of the new contract. This is a 32% rise from the agreement ILA’s West Coast counterpart reached last year. The ILA represents more than 45,000 dock workers from Texas to Maine. If they do not reach an agreement by September 30th, longshoremen from Houston to New York will freeze all operations in the first East Coast strike since 1977. As of yet, no agreement has been reached (Inc).

A strike at this time would have huge implications on global trade, as well as the North American Christmas season. Due to this risk, some importers have begun importing their goods earlier than usual for fear of disruptions from potential strikes in the East Coast ports. This has created an imbalance in the supply/demand market, as supply skyrockets relative to lack of demand, hence the rise in freight prices.

#4 Blank Sailings

Blanks Sailings are a phenomenon straight from the pandemic age. A blank sailing happens when the carrier cancels a particular vessel, meaning it skips a port or an entire trade lane (Flex Port). During the pandemic, steamship lines expanded their fleet to meet the increasing supply and demand. However, at the beginning of 2022, demand plummeted, and steamship lines found themselves with too many vessels and too much space. Their response to this situation? Blank Sailings.

According to Dedola Global Logistics, “This is a classic supply and demand scenario: fewer sailings mean less space, driving up the price for available space.” This is especially true in shipments from the USA to Asia, where most COVID-19 demands originated. As steamship lines continue to artificially regulate the supply and demand of the Ocean Freight market, freight rates will only increase in the coming months.

Conclusion

In the end, the current conditions of the Ocean Freight market are due to a combination of multiple factors that have collided to make the perfect storm. We don’t know a lot, but we can act on what we do know. Ocean Freight rates aren’t getting any lower, and the factors contributing to their rise don’t seem to be going away either.

However, we at Veritas Global understand that knowledge is power. Knowing the facts can help us succeed in this increasingly hostile climate. Our goal is you. In choosing Veritas Global’s Ocean Freight import or export services, you are choosing reliability and stability in this world of uncertainty. We hope we can lend a hand where it is needed.

For Ocean export or import inquiries, please fill out our rate request form, and we will get back to you as soon as possible. We also offer services via air and truck, as well as specialty services to solve your complex shipping needs. Please see our “services” page for more information on how we can best serve you!

Cheers,

The Veritas Team

*Sources obtained from CNN, Logistics YouTuber, Ship-Technology, Flex Port, The Online Citizen, and Reuters.*

 

Exporting any amount of goods to a foreign country is an arduous task. However, the process is much simpler and efficient when the shipper knows what documents are required for legal export processes.

In this post, we’ll take a look at a few of the documents needed, why they are needed, and what exactly each entails.

The Commercial Invoice

The commercial invoice is a document that allows the forwarder to obtain information related to the value of the cargo.

The commercial invoice usually shows the cargo weight, value, official description, H.S. Code (if it is known), and the quantity.

Below is an excellent example of a commercial invoice:

As you can see from the above example, this commercial invoice also has information about the exporter, the consignee, and the sold-to party (which can be different from the consignee in some situations).

We have a commercial invoice template for your shipment that you can utilize at our Shipping Forms page.

The Packing List

The packing list is another export document that is closely related to the commercial invoice. The packing list details how the cargo is packed rather than how much the cargo costs.

Below is a wonderful example of a packing list:

 

As you can see from this document, it differs from the commercial invoice on a few aspects. Unlike the commercial invoice, the packing list details the cargo specifications instead of the cargo value.

However, similar to the commercial invoice, the packing list also gives the exporter, consignee, and sold-to parties.

A template for your shipment’s packing list can also be found at our Shipping Forms page for your convenience.

The SLI (Shipper’s Letter of Instruction)

The shipper’s letter of instruction (or more commonly termed, the “SLI”) is a document that does exactly what it says: informs the forwarder of the shipper’s instructions.

The SLI lists the shipper’s exact details, including the EIN number (a tax ID required for filing AES if the cargo value exceeds $2500), whether or not the shipper is related to the consignee (i.e. Coca-Cola U.S. exporting goods to Coca-Cola U.K.), and the shipper themselves will fill out the cargo details: what is the cargo’s H.S. Code, the H.S. Code unit of measure (which differs between commodities), the shipping weight, origin of goods (domestic or foreign), and the cargo value.

It also shows whether or not the transaction is a routed one (meaning whoever contacted us to arrange the shipping is not located in America).

Also, the SLI primarily aids the forwarder in filing AES (if it is necessary).

You can find a fillable form at our Shipping Forms page, and contact us if you have any questions filling yours out.

Certificate of Origin

The certificate of origin is used by many parties of the shipping transaction to identify the origin of the cargo’s goods – i.e. the location where the goods were manufactured. This is important for AES filing, which requires the forwarder to say where the cargo is coming from and whether the goods are of domestic (US) or foreign origin.

Export.gov, a trusted government source when it comes to international logistics, says the following about certificates of origin: “The Certificate of Origin (CO) is required by some countries for all or only certain products. In many cases, a statement of origin printed on company letterhead will suffice. The exporter should verify whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade Information Center” (“Common Export Documents”). 

You can find an NAFTA approved form for your certificate of origin at our Shipping Forms page.

Vehicle Title (Auto Exports)

For export projects that involve automobiles or self-propelled objects, the vehicle title is mandatory for export. In order for the vehicle to be loaded onto the vessel, title clearance must be shown, and in order for title clearance to be accomplished, we must obtain the vehicle’s title.

Foreign Passport (Only for specific shippers)

While a passport is not required for every shipper to export their goods out of the country, some shipments that fit the following criteria are required by U.S. law to provide a copy of their passport to the forwarder. As stated by the U.S. Customs and Border Patrol, “Foreign passport numbers or any other number assigned by CBP can only be used if the foreign individual was physically in the U.S. at the time the goods were purchased or obtained for export.”

Hazardous Documents (For Hazardous Cargo Only)

If your cargo is a hazardous chemical, then extra documentary precautions are required. Dangerous goods exports require two main forms of regulatory documentation: the hazardous declaration and an MSDS (Material Safety Data Sheet). These documents give exact descriptions of the dangerous cargo. The hazardous declaration declares (no pun intended) the actual hazardous commodity also gives the exact hazardous class, UN number, form of packaging, and emergency telephone numbers (for the carrier’s convenience). Below is an excellent example of a hazardous declaration:

An MSDS goes much deeper than a hazardous declaration and usually includes multiple pages of data concerning the cargo commodity. Mostly, it details minute elements of the commodity that are lesser known. For example: the temperature at which the chemical/gas becomes flammable, the PS numbers, degrees of skin irritation, etc. It’s incredibly lengthy and tedious. While not all carriers require an MSDS, most do, so it is important that this is always provided to us up front whenever we handle your dangerous goods.

Below is a sample of only one page of an MSDS (please keep in mind that there are usually more than just one page in an MSDS with about 16 sections of hazardous data – the following example is just a reference):

Case-by-Case Documents

The above documents are the most common among exports, however, there are some case-by-case scenarios that require extra certificates to be presented for shipping. In the next few sections, we will look over what these certificates entail, what they are, and when you would need one for your shipping endeavor:

Certificate of Insurance

A certificate of insurance is issued when cargo is insured by the freight forwarder. It is used to assure both the shipper and the consignee (though mostly the consignee) that if anything were to happen to the cargo while it is in transit, it is insured and the damages are covered. Some shippers/consignees will not request insurance, and in those instances a certificate of insurance is not required. It simply depends on whether insurance is requested by either party.

Certificate of Fumigation

Some countries require shipping containers to be fumigated (specially cleaned) in order for them to be unloaded at destination. The most well-known examples of countries that require container fumigation are New Zealand and Australia; both of whom have different regulations. However, there are a few other countries that require fumigation as well. As the freight forwarder, we would be able to tell you upon receipt of your request whether or not your container would require fumigation. After fumigation is completed at the origin, a certificate showing that it has been completed will be issued, and this will need to be presented overseas if the container is to be unloaded. In some cases, failure to provide a fumigation certificate (or to fumigate a container at all) will result in the container being shipped back (or the entire vessel being turned back) at the shipper’s expense. Going into all the detail regarding fumigation requirements would be incredibly extensive, but to make a long story short: each country and each commodity is different, and it is best to do a little research before assuming something doesn’t need to be fumigated/need a certificate of fumigation.

Export Licenses 

Most commodities do not require export licenses (this in itself is considered an EAR99 license). However, for some commodities (particularly firearms/defense articles), require the shipper to have an export license. An export license is issued by the government, allowing the shipper to export a certain commodity at a certain quantity to a certain destination. As per export.gov‘s regulations: “An export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination. This document may be required for most or all exports to some countries or for other countries only under special circumstances. Examples of export license certificates include those issued by the Department of Commerce’s Bureau of Industry and Security (dual use articles), the State Department’s Directorate of Defense Trade Controls (defense articles), the Nuclear Regulatory Commission (nuclear materials), and the U.S. Drug Enforcement Administration (controlled substances and precursor chemicals)” (“Common Export Documents”). Be sure to check out the links they provide on their website regarding the export license. It is incredibly important to know if you require one.

Inspection Certificate

The inspection certificate certifies that your shipment has been inspected before being shipped out. Such an inspection is called a pre-shipment inspection, which, according to export.gov, is “to ensure that the price charged by the exporter reflects the true value of the goods, to prevent substandard goods from entering the country, and to deflect attempts to avoid payment of customs duties” (Ibid). This is only required in certain situations for specific commodities. It is, as per advancedontrade.com, “Required usually for import of consumer goods such as softlines, hardlines, electronic goods, luxury goods; commodities such as bulk oil shipments and bulk scraps shipments” (“What is an Inspection Certificate”). To read more about the specifics of an inspection certificate, be sure to check out the link cited. 

Canadian Customs Invoice (Exports to Canada)

This invoice is a statement of the cargo value presented to Canadian customs for importation into Canada. It is not required, but it is preferred. The invoice is issued in Canadian dollars, and it is for all cargo that exceeds the value of 1600 Canadian dollars (“Common Export Documents”).

Import License 

An import license is a proof of the consignee’s validity as an importer. It is not required for export shipments, but it is encouraged for some countries, as it will make customs easier at the destination. It simply depends on where the cargo is going and how strict customs is in said country (Ibid).

Documents for “Temporary Exports”

Some documents are only applicable for “temporary” shipments. A temporary shipment is a shipment that is intended to be returned to the original country within a year of its exportation. For example, if someone exports exhibition goods to a museum in England and those goods are shipped back to America after the exhibition ends within a year of its exportation, that is considered a return shipment. Exhibition goods are the most common (but not only) commodity for temporary exports.

Below are the extra documents required for these sorts of shipments:

ATA Carnet Temporary Shipment Document

A carnet certifies a cargo’s intention of return back into the US, and eliminates VAT and other tariffs when it enters other countries (since it’s going to be sent back). According export.gov, “An ATA Carnet, a. k. a., ‘Merchandise Passport,’ is a document that facilitates the temporary importation of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or the posting of a security deposit normally required at the time of importation” (Ibid).

Below is an excellent example of a Carnet template:

 

Customs Certificate of Registration

A customs certificate of registration is a document for temporary exports that allows the shipment to pass through the U.S. customs and destination customs letting the authorities know that the cargo is being exported for repair in another country and is to be returned after the repair is complete (it is not staying in the country permanently). Export.gov states that it is used “often in conjunction with a temporary import bond or ATA Carnet for goods that are leaving the United States on a temporary basis for alteration, repair, replacement, and processing” (Ibid).

Documents for Food/Plant/Animal Exports

A vast majority of extra regulations exist strictly for the shipping of sensitive cargo (i.e. frozen/fresh food, live plants, and live animals). Below is an array of the different certificates shippers of food must be aware of when transporting their goods overseas. Whether or not it applies to their shipment is determined on a case-by-case basis and depends on aspects such as the cargo destination, specific commodity, and the type of packaging.

Certificate of Analysis

According to export.gov, “A certificate of analysis can be required for seeds, grain, health foods, dietary supplements, fruits and vegetables, and pharmaceutical products” N.B. the phrase “can be” in the quote; this implies that the certificate of analysis is not always required for such shipments, but should be expected or anticipated. The certificate of analysis is somewhat similar to the MSDS for hazardous shipments, although it is not usually as long (and isn’t for hazardous cargo).

Certificate of Free Sale

The certificate of free sale is a document simply verifying the legal sale of your goods. As per export.gov, “Required in some countries for certain kinds of goods. Your state government usually supplies this document, which indicates that the goods you intend to export have been sold in that state” (“Common Export Documents”). As before stated, this document is only applicable for some countries and for some commodities, nevertheless, food exporters should be prepared for this certificate to be asked of them for legal exportation.

Halal Certificate

The majority of Middle Eastern countries require imported meats to be verified Halal products (killed in a clean way according to their Islamic law). According to export.gov, “Required by most countries in the Middle East, this certificate states that the fresh or frozen meat or poultry products were slaughtered in accordance with Islamic law. Certification by an appropriate chamber and legalization by the consulate of the destination country is usually required” (Ibid). 

Health Certificate

This is yet another certificate for exporters of food and of live animals. Notarization of this certificate is sometimes required. The health certificate is “to certify that a food shipment is fit for human consumption, and meets safety standards or other required legislation for exporting” (“Health Certificate”).

Fisheries Certificate

This certificate is for exporters of fish. Namely, it is for fish/seafood intended for human consumption. You can read more about the specifics of exporting seafood and fisheries certificates at the NOAA (National Oceanic and Atmospheric Administration) here.

Ingredients Certificate

This certificate is usually requested for shipments that have vague or nonexistent ingredient labels. This certificate can be made by the manufacturer and should list a large number of the food’s specifications, including chemical makeup and fat types. As stated by export.gov, the certificate “must give a description of the product, contents, and percentage of each ingredient; chemical data; microbiological standards; storage instructions; shelf life; and date of manufacture. If animal fats are used, the certificate must state the type of fat used and that the product contains no pork, artificial pork flavor, or pork fat” (“Common Export Documents”). 

Phytosanitary Certificate

Dissimilar to the rest of this list of certificates for food products, this certificate is a legal requirement for all shipments of “fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants, and plant materials.” The phytosanitary certificate is a federal document that confirms that the fresh food being shipped is free of diseases or epidemics (Ibid).

Radiation Certificate (Saudi Arabia)

The radiation certificate is required for animal and plant exports to Saudi Arabia to confirm the absence of radio waves within the cargo (Ibid).

It is important to remember that every shipment is different, and some document requirements are a case-by-case scenario. For example, see below from export.gov:

Other (Product-Specific) Certificates

Shaving brushes and articles made of raw hair must be accompanied by a recognized official certificate showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a certificate of weight. Many countries in the Middle East require special certificates for imports of animal fodder additives, livestock, pets, and horses.

It all depends on the commodity and the country of destination. While it may seem daunting, it is an unavoidable export reality: paper is money in this business, and without the proper documents, a shipment can go south fast. Nevertheless, don’t worry. We have been taking care of shipment documentation in the logistics industry for over fifteen years. Your shipment (and it’s required documentation) will be taken care of by experienced hands.

Hopefully this little list of required documents has made it easier for you to see what your shipment needs. If you have any questions about documentation, we would love to speak with you; feel free to give us a call or email us as per our contact details on our  Contact Us page, or if you are considering shipping with us, please visit our Quote Request page. We would be glad to speak with you, and we look forward to handling anything you send our way!

Cheers,

The Veritas Team