Essentials of Freight Forwarding.pptxxxx

Essentials of Freight Forwarding.pptx

1. Essentials of Freight Forwarding Export Packaging and Warehousing

2. IMPORTANT DATES ASSSIGNMENT S – May 3 (Fri) MIDTERM – May 10 (Fri) FINAL EXAM: May 17 (Fri)

3. Enabling Learning Objectives ▶ Understand the significance of export packaging in international trade. ▶ Identify the key objectives and responsibilities of export packaging. ▶ Explore various materials used in export packaging and their suitability for different products. ▶ Familiarize with international packaging standards and regulations that impact export operations. ▶ Explain the concept and purpose of warehousing in the supply chain. ▶ Discuss the importance of effective warehousing in international trade. ▶ Differentiate between various types of warehouses and their specific functions in logistics. ▶ Understand the role of Warehouse Management Systems in optimizing warehouse operations.

4. Enabling Learning Objectives ▶ Define the concept of freight forwarding and its role in global logistics. ▶ Describe the key responsibilities and functions of freight forwarding in international trade. ▶ Explore the range of services offered by freight forwarders and their significance in the supply chain. ▶ Identify major players in the freight forwarding industry and their roles in global trade. ▶ Analyze how the integration of these three elements improves the efficiency of global supply chains. ▶ Discuss the specific packaging requirements for safe and efficient transportation of goods. ▶ Examine the unique considerations and strategies for warehousing in the context of export operations. ▶ Understand the interconnection between freight forwarding and the global supply chain.

5. Enabling Learning Objectives ▶ Identify and analyze the challenges faced by export packaging, warehousing, and freight forwarding in the global economy. ▶ Explore emerging trends in the logistics industry, including sustainability in packaging materials and practices. ▶ Investigate the use of eco- friendly materials and practices in export packaging to reduce environmental impact. ▶ Examine the role of IoT and blockchain technologies in enhancing tracking and transparency in logistics. ▶ Understand the implementation of automation and robotics in warehouse operations for efficiency and cost reduction. ▶ Explore the application of data analytics and predictive modeling for making informed decisions in logistics and supply chain management.

6. Introduction Export packaging is the process of designing and creating packages that protect goods during transportation and storage from their origin to their destination. It is the first line of defense in ensuring that products reach their customers in optimal condition. Proper export packaging serves several key functions: ▶ Protection: Packaging safeguards goods from damage, theft, and environmental factors such as moisture, dust, and extreme temperatures. ▶ Identification: It allows for easy identification of the contents, including product information, handling instructions, and markings that comply with international regulations. ▶ Marketing: Packaging can also serve as a marketing tool, promoting the product and brand. ▶ Compliance: Packaging must meet international regulations and standards, such as those set by the International Organization for Standardization (ISO).

7. Introduction ▶ Sustainability is a multifaceted concept, with ongoing debates about how best to address environmental damage, climate change, and other global issues at personal, corporate, and governmental levels. ▶ Many companies worldwide are actively addressing questions of sustainability and corporate social responsibility, striving to identify and mitigate their environmental impacts across various aspects of their operations. ▶ The packaging industry, under substantial pressure to reduce waste and improve recyclability, is making efforts to meet sustainability goals. However, there is concern that these objectives are sometimes pursued without considering the broader role of packaging within supply chains. ▶ Achieving environmental sustainability should not come at the expense of economic growth, employment, or quality of life. Therefore, businesses must integrate environmental goals with cost management, market dynamics, and customer expectations, all within the context of their position in supply chains. ▶ Various organizations and industry coalitions have attempted to define 'sustainable packaging' by establishing guiding principles and strategies. This paper critically reviews these efforts, proposes revisions, and underscores the importance of this work for corporate practices and future research.

8. SPA’s first definition of sustainable packaging In Australia, progress is being made towards more sustainable packaging, but more can and needs to be done around reduce, reuse, redesign and recycle via a cooperative supply chain approach. Packaging needs to be seen as an integral part of the product and as such more also needs to be done about educating the consumer about responsible behavior regarding the use and disposal of the packaged product. So, the sustainable packaging journey needs ongoing improved performance and attitudes by the producers (industry) and the users (community). Packaging manufacturer The unsustainable use of packaging is part of a wider phenomenon of unsustainable consumption. By itself, it is not the core problem, but it is the most visible symptom. However, it is itself a contribution to the phenomenon of unsustainable consumption. Plastic bags, wraps, EPS etc are litter- ugly and are marine pollutants. Paper bags and wrappers are aesthetically pleasing but (particularly) harmful in manufacture. At the same time, packaging is a great protector of agricultural and manufactured products and thus a great saver of scarce resources. A society's self- management of packaging is part of the bigger problem of its self- management of consumption. Packaging industry consultant In an ideal world packaging systems should seamlessly fulfill the expectations of all stakeholders involved in the supply chain as well as government and community stakeholders. It should be able to support business growth, to meet user/consumer values and expectations (both in terms of supplying expected quality of product as well as convenience in product use and discarding of packaging) and to minimally impact on the environment. Academic

9. SPA’s first definition of sustainable packaging SPA’s research was based on stakeholder engagement and consultation and was therefore iterative. The original work was disseminated, discussed at industry forums, revised and published in a number of different forms: ▶ a background paper called ‘Towards sustainable packaging’ was prepared as the basis for discussion with industry and government stakeholders in October 2002 (SPA, 2002). This paper identified the need for research which would establish consensus on the principles and strategies which should be followed to achieve ‘sustainable packaging systems’; ▶ a survey of 30 key stakeholders was undertaken in 2003 and the results were presented in a paper entitled ‘Defining packaging sustainability’ to an International Solid Waste Association (ISWA) conference in Melbourne in November of that year (Lewis, 2003); ▶ this research was used to shape the original SPA definition of sustainable packaging, which was published on SPA’s web site in 2004 (SPA, 2005); ▶ a more detailed paper on the research was later published in a peer- reviewed journal, Environmental Science & Policy (Lewis, 2005); and ▶ a series of ‘sustainable packaging indicators’, which were developed in a study of industrial packaging supply chains (James et al., 2005), and the definition were discussed at an industry Round Table run by SPA in June 2005. The basic principles and indicators are presented in the following section.

10. SPA’s first definition of sustainable packaging ▶ The Sustainable Packaging Alliance (SPA) was established in Australia in 2002 with the participation of Victoria University of Technology, RMIT University, and Birubi Innovation Pty Ltd. Its primary mission is to enhance the environmental sustainability of packaging through research, industry engagement, and the creation of practical tools and strategies for the packaging sector. ▶ SPA's initial project involved investigating the concept of 'sustainable packaging' by conducting a literature review and surveying key stakeholders. The objective was to bridge the gap between theoretical discussions on sustainability and the development of a practical definition for sustainable packaging. ▶ Defining 'sustainable packaging' is complex because it varies depending on specific factors, such as its intended use, supply chain characteristics, and recycling or disposal options. This complexity also stems from the need to consider the interplay of environmental, economic, and social performance requirements on a case-by- case basis. ▶ The goal of SPA was to create a set of guiding principles for decision- making, rather than providing a rigid, one- size-fits- all definition of the ideal sustainable package. ▶ The work conducted by SPA and similar initiatives plays a pivotal role in advancing the understanding and implementation of sustainable packaging within the industry.

11. Sustainable packaging definition and indicators The research identified several important issues which need to be considered in any evaluation of packaging sustainability, particularly in relation to scope: ▶ it needs to consider the entire lifecycle of the package from raw materials through to ultimate disposal to avoid problems being transferred from one part of the lifecycle to another; ▶ it needs to consider interactions between the package and the product it contains so that the environmental impacts of the product- packaging system are minimized; and ▶ it needs to consider ‘triple bottom line’ impacts of packaging: on the business, on people and on the natural environment.

12. SPA’s first definition of sustainable packaging

13. Effective ▶ The first principle focuses on the functionality of packaging and emphasizes that packaging should contribute to sustainable development by effectively preserving and safeguarding products during their journey through the supply chain. ▶ It underlines the concept that products should deliver genuine social value to users while also generating commercial profit for manufacturers. This principle aligns with the idea that packaging should not only be profitable but should also bring tangible benefits to society. ▶ This principle recognizes the diverse range of users in the supply chain, including manufacturers, wholesalers, retailers, and consumers. Each of these stakeholders has specific expectations and interests in the functionality of packaging. ▶ It also highlights the concept of 'sustainable consumption,' which implies that consumers should take responsibility for minimizing the environmental impacts of their consumption through careful product selection and proper disposal methods. ▶ Manufacturers play a role in promoting sustainable consumption by offering guidance to consumers on appropriate disposal practices, including recycling when relevant systems are in place.

14. Efficient ▶ The second principle highlights the importance of designing the packaging- product system for efficient use of materials and energy throughout the entire product life cycle. ▶ Efforts to achieve sustainability often involve a significant reduction in material and energy consumption. Various experts and organizations advocate for reducing resource consumption as a fundamental aspect of sustainability. ▶ The World Business Council for Sustainable Development promotes the concept of eco- efficiency, emphasizing the opportunity to create more value with fewer environmental impacts, aligning business and environmental objectives. ▶ While the total amount of material used in packaging and the product-packaging ratio are essential indicators of efficiency, it's crucial to approach this issue thoughtfully. Additional packaging can have environmental advantages, especially for perishable foods, as the benefits of preventing product loss often outweigh the environmental costs of additional packaging. ▶ This principle acknowledges that a balanced approach to material and energy efficiency is required, considering the entire life cycle of the product and packaging, as well as the specific needs of different products and industries.

15. Cyclic The important implication for packaging is that it must be designed for recovery through either: ▶ technical systems, for example the reprocessing of metal packaging back into metal packaging; or ▶ natural systems, such as the composting of corn-based plastics back into compost or mulch which can be used to grow new crops.

16. Cyclic ▶ The third principle promotes the continuous cycling of packaging materials through natural or industrial systems, aiming to minimize material degradation. ▶ This concept, popularized by William McDonough and Michael Braungart in "Cradle to Cradle," emphasizes eliminating waste by designing durable products that can be continuously reused, remanufactured, or recycled. ▶ Packaging must be designed with recovery in mind, either through technical systems (e.g., recycling metal packaging back into metal packaging) or natural systems (e.g., composting corn- based plastics into compost for agriculture). ▶ To ensure sustainable design, it's crucial that products meant for one system (e.g., composting) do not contaminate another (e.g., recycling). ▶ Challenges exist, such as health regulations restricting the use of recycled materials in food contact packaging, which necessitate finding secondary applications for packaging waste matched in scale to maximize the potential for continuous cycling.

17. Clean The fourth principle is that ‘packaging components used in the system, including materials, finishes, inks, pigments and other additives do not pose any risks to humans or ecosystems. When in doubt the precautionary principle applies.’ The aim is to minimize risks at every stage of the packaging lifecycle by reducing the use of toxic or hazardous materials and by implementing cleaner production programs.

18. Webinar: Take positive climate action with sustainable packaging

19. Measuring progress In Australia data is only available for a few of the indicators: ▶ effective – social attitudes to packaging; ▶ efficiency – total amount of packaging consumed and per capita; ▶ cyclic – recycling rates; and ▶ clean – litter impacts.

20. The Importance of Export Packaging ▶ Export packaging serves a crucial role in protecting goods from transportation and storage damage caused by long-distance travel and various environmental conditions. ▶ It ensures goods arrive at their destination on time and in good condition, which is vital for customer satisfaction and building lasting relationships. ▶ Well-designed export packaging can enhance a product's presentation, differentiate it from competitors, and effectively communicate information about the product. ▶ Export packaging must adhere to international regulations and standards designed to safeguard goods and the environment. ▶ Non- compliance with these regulations can lead to penalties and potential delays or confiscation of shipments, making adherence essential for exporters.

21. Factors to Consider When Designing Export Packaging There are several factors to consider when designing export packaging, including: The type of product being exported: The type of packaging required will vary depending on the product being exported. For example, fragile items will require more protective packaging than durable items. The mode of transportation : The mode of transportation used to export the goods will also affect the design of the packaging. For example, goods shipped by sea will require more durable packaging than goods shipped by air. The destination country: The destination country may have specific regulations or requirements for export packaging. For example, some countries have restrictions on the use of certain materials in packaging. The cost of packaging: The cost of packaging is also a factor to consider. Exporters need to choose packaging that is both protective and cost-effective.

22. The type of product being exported: Choose Choose the right shipping container Use Use cushioning materials Secure Secure the product Label Label the package

23. The Impact of Mode of Transportation on Packaging Design ▶ The choice of transportation mode significantly influences packaging design, impacting both product protection and shipping costs in the global supply chain. ▶ Different transportation methods, such as air, sea, road, and rail, present specific challenges and risks that packaging must mitigate. Airfreight faces turbulence and rapid handling, while sea shipments contend with saltwater and rough weather. Road and rail transportation involve vibrations and mechanical shocks. ▶ Packaging design must address these challenges by considering the fragility of products and providing cushioning and structural support, often using materials like bubble wrap, foam, or shock-absorbing pallets. ▶ The mode of transportation also affects packaging size and weight, with airfreight demanding lightweight solutions for fuel efficiency and sea freight requiring weather- resistant materials. Road and rail have more flexibility but can be impacted by excess bulk increasing shipping costs. ▶ Sustainable packaging, designed for recyclability and waste reduction, aligns with environmental concerns, offering eco- friendly materials and space optimization to reduce carbon emissions and waste generation, making it an essential consideration in modern supply chain logistics.

24. Use Cushioning Materials to Protect Products Cushioning materials are essential for protecting products during shipping and storage. They absorb shock and vibration, preventing damage to the product. There are a variety of cushioning materials available, each with its own advantages and disadvantages.

25. Common Types of Cushioning Materials ▶ Bubble wrap: Bubble wrap is a lightweight and versatile cushioning material. It is made up of small air bubbles that absorb shock and vibration. Bubble wrap is available in a variety of sizes and thicknesses, making it suitable for a wide range of products. Foam peanuts: Foam peanuts are another lightweight and versatile cushioning material. They are made of expanded polystyrene (EPS) foam and are shaped like small peanuts. Foam peanuts are available in a variety of sizes and densities, making them suitable for a wide range of products. Air- filled bags: Air- filled bags are inflatable bags that are filled with air. They are lightweight and easy to use. Air- filled bags are available in a variety of sizes and shapes, making them suitable for a wide range of products. ▶ ▶ ▶ Foam padding: Foam padding is a dense and durable cushioning material. It is made from EPS foam and is available in a variety of sizes and thicknesses. Foam padding is ideal for protecting heavy or fragile items. ▶ Paper void fill: Paper void fill is a lightweight and inexpensive cushioning material. It is made from recycled paper and is available in a variety of sizes and shapes. Paper void fill is ideal for filling empty spaces in shipping containers.

26. Bubble Wrap: The Versatile Cushioning Marvel ▶ Bubble wrap is a lightweight and versatile packaging material that uses small air bubbles encapsulated within plastic film to protect fragile items during transit. ▶ It is adaptable and available in various sizes and thicknesses, suitable for safeguarding a wide range of products, from glassware and electronics to artwork and collectibles. ▶ Bubble wrap's effectiveness lies in its shock- absorbing structure, evenly distributing external pressure and reducing the risk of damage during handling and transportation, making it essential for logistics and e-commerce industries. ▶ Its lightweight nature contributes to cost- effective shipping by providing excellent protection without adding significant weight to packages, aligning with environmental concerns for reduced fuel consumption and lower carbon emissions. ▶ Bubble wrap has innovative applications beyond packaging, including insulation in construction, artistic uses in creating unique pieces, and as a sensory tool for children, making it a versatile and valuable asset in various industries.

27. Foam Peanuts: The Unsung Heroes of Cushioning ▶ Foam peanuts, made from expanded polystyrene (EPS) foam, are essential in packaging and shipping for protecting fragile and valuable items. ▶ They are highly adaptable, available in various sizes and densities, making them suitable for safeguarding a wide range of products, including electronics, porcelain, and heavy equipment. ▶ Foam peanuts offer effective cushioning by absorbing and dispersing shock and impact, preventing damage by conforming to the shape of items and minimizing movement during transportation. ▶ They are environmentally friendly and often made from recyclable materials, supporting sustainability and waste reduction efforts. Many companies use them to demonstrate their commitment to eco-friendly practices. ▶ Foam peanuts' lightweight nature contributes to cost- effective shipping, as they don't significantly increase package weight, reducing expenses and aligning with sustainability goals by minimizing fuel consumption and carbon emissions during transportation.

28. Air- Filled Bags: Light as Air, Strong as a Shield ▶ Air- filled bags are a modern packaging solution known for their simplicity, versatility, and efficiency in protecting fragile items during transit. ▶ They are highly versatile, available in various sizes and shapes, making them suitable for safeguarding a wide range of products, from delicate glassware to larger or oddly- shaped items. ▶ Air- filled bags are easy to use and adjust, typically made from durable plastic materials that can be inflated using a standard pump or manually, providing effective cushioning and shock absorption. ▶ Their lightweight nature helps reduce shipping expenses, making them a cost- effective choice for businesses and individuals seeking optimal protection for their goods. ▶ Air- filled bags are environmentally friendly, often made from recyclable materials, aligning with sustainability trends and eco-friendly packaging practices while ensuring the safe transit of valuable items.

29. Foam Padding: The Guardian of Fragile and Heavy Cargo ▶ Foam padding, made from expanded polystyrene (EPS) foam, is a reliable and dense cushioning material used for safeguarding fragile and heavy items during transit. ▶ It is known for its exceptional ability to absorb and distribute shock and impact, protecting delicate or heavy items from damage throughout the shipping process. ▶ Foam padding is highly versatile and adaptable, making it suitable for various applications, including the protection of glassware, electronics, artwork, and heavy machinery. ▶ Its resilience allows it to maintain protective qualities even under challenging transportation conditions, particularly for heavy items where secure cushioning is essential. ▶ The availability of foam padding in various sizes and thicknesses allows for customization, ensuring that it meets the specific protection requirements of different products, making it a trusted guardian for items in the logistics industry.

30. Paper Void Fill: The Sustainable Solution for Secure Shipping ▶ Paper void fill is a lightweight and eco-friendly cushioning material used for filling empty spaces in shipping containers, ensuring safe product transit. ▶ Its eco- friendly composition, made from recycled paper, aligns with sustainability goals and appeals to environmentally- conscious consumers and businesses. ▶ The lightweight nature of paper void fill contributes to cost- effective shipping by minimizing shipping expenses and reducing fuel consumption and carbon emissions. ▶ It is highly adaptable, coming in various sizes and shapes that can be customized to meet the specific requirements of different products, preventing movement during transit. ▶ Paper void fill is simple to use and requires minimal effort, making it a practical choice for efficient and eco- conscious packaging and shipping.

31. Choosing the Right Cushioning Material When choosing a cushioning material, it is important to consider the following factors: ▶ The type of product: The type of product you are shipping will determine the type of cushioning material you need. For example, fragile items will require more cushioning than durable items. ▶ The weight of the product: The weight of the product will also determine the type of cushioning material you need. Heavier items will require more durable cushioning materials. ▶ The shipping environment: If you are shipping your product to a harsh environment, such as a hot and humid climate or a cold and snowy climate, you will need to choose a cushioning material that is designed to withstand those conditions. ▶ Your budget: Cushioning materials can range in price from inexpensive to expensive. It is important to set a budget before you start shopping for cushioning materials.

32. Securing Products for International Shipping: A Crucial Aspect of Freight Forwarding ▶ International shipping requires securing products within containers to protect them from damage during transit. ▶ Proper securing is essential to prevent movement, collisions, or toppling of items due to environmental and mechanical stresses during international shipping. ▶ Strapping, using strong materials like polyester or steel, immobilizes items by fastening them to anchor points in the container, benefiting heavy and bulky items. ▶ Tape, especially with strong adhesive properties, is suitable for securing smaller or irregularly shaped items, sometimes used with additional padding materials. ▶ Packing materials like airbags, dunnage bags, and edge protectors help create a snug fit, reducing lateral movement and minimizing collision or damage risks, contributing to smooth and cost- effective international shipping.

33. Labeling Packages and Cargo for International Shipping: A Crucial Aspect of Freight Forwarding ▶ Clear labeling of packages is crucial in the intricate world of international shipping to ensure a smooth flow of products through the supply chain. ▶ Label information should include complete and accurate contact details for the sender and recipient, facilitating communication and successful product delivery. ▶ A concise product description with details such as type, quantity, weight, dimensions, and relevant product specifics streamlines customs clearance and ensures proper handling. ▶ The fragile symbol, a universal warning sign, is essential for packages containing delicate items, prompting handling agents to exercise extra caution to prevent damage. ▶ Special handling instructions should be included when necessary, offering clear guidance on temperature- sensitive items, hazardous materials, or specific transport requirements, ensuring safe and appropriate handling.

34. Specific packaging requirements for different types of fragile items In addition to the general principles outlined above, there are some specific packaging requirements for different types of fragile items. For example: ▶ Glassware: Glassware is particularly fragile and should be packed carefully to prevent breakage. Each piece of glassware should be wrapped individually in bubble wrap or foam peanuts, and then placed in a sturdy box. The box should be filled with additional packing materials to prevent the glassware from moving around. ▶ Electronics: Electronics are also delicate and can be easily damaged by shock and vibration. When packing electronics for export, it is important to use a sturdy shipping container and to cushion the electronics with foam or other packing materials. The electronics should also be placed in an anti- static bag to protect them from electrostatic discharge. ▶ Artwork: Artwork is often valuable and irreplaceable, so it is important to pack it carefully for export. Artwork should be wrapped in a soft material, such as bubble wrap or foam, and then placed in a sturdy box. The box should be filled with additional packing materials to prevent the artwork from moving around.

35. Packing for Export Figure 14.1: Primary, Secondary and Tertiary Packaging Diagram courtesy of Daisy Krokos.

36. Packing for Export Secondary packaging is made up of one of two alternatives: ▶ The first alternative is a cardboard box. Since the term used more frequently in the industry is corrugated paperboard box, it will be the one used in this chapter. Paperboard is categorized on several criteria, including thickness, the type of flutes used—the way the layer of paper sandwiched between the faces of the board is folded —and the number of layers: paperboard is available in single-,double- , and triple- wall versions. ▶ The second alternative is a plastic wrap that is either stretched (stretch- wrap) or heat shrunk (shrink- wrap) over several units of the primary package (see Figure 14.3 on page 489). The purpose of either method is to consolidate multiple units into one-unit and to protect them from water. The two techniques differ in the thickness of the wrap, with shrink- wrap generally much thicker than stretch- wrap, and much more resistant to multiple handlings. The term “shrink- wrap,” whenever used in this chapter, refers to either of these two techniques.

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38. Packing for Export ▶ Exporters bear the responsibility of packaging goods for international shipment, with little guidance and sometimes cost constraints. ▶ Distinctions are made between primary, secondary, and tertiary packaging. ▶ Primary packaging is what consumers see when they purchase a product and is primarily a marketing function. ▶ Secondary packaging groups multiple consumer goods into one unit, which can be a corrugated paperboard box or plastic wrap. ▶ Tertiary packaging, or transportation packaging, provides additional protection to ensure safe and cost-efficient delivery to foreign purchasers, including protecting retail packaging units for consumer goods and safeguarding industrial goods during shipment.

39. Packaging Functions ▶ The first function of correct packaging for export is to protect goods from international shipping hazards, and the cost of proper packaging is justified as the cost of cargo loss from improper packing is generally higher and uninsurable. ▶ The second function of correct packaging is to facilitate the handling of goods during transit, respecting equipment and dimensional constraints while providing clear handling instructions. ▶ The third function of correct packaging is often overlooked but plays a role in a firm's customer service strategy, ensuring goods arrive in sellable condition and can be quickly unpacked without special tools or damage. Packaging should also reflect a positive image for the company and consider sustainability and legal requirements.

40. Packaging Objectives The objective of proper packaging is to ensure that goods are protected from the three major losses that can occur in international transit: ▶ Protecting the goods from mechanical damage: breakage, crushes, nicks, and dents (these perils represent roughly 43 percent of all claims made by shippers to their insurance companies) ▶ Protecting the goods from water damage: seawater, rain, floods, and container sweat (15 percent of claims made) • Protecting the goods from theft and pilferage (21 percent of claims made)

41. Packing for Export While it is difficult to give specific guidance, a few examples may illustrate the concept better: ▶ Instead of gluing— and then nailing— the plywood panels of a crate, a customer- focused exporter will just nail them or, even better, attach them with screws, so that they can be more easily taken apart by the importer’s receiving department. The boards can then be reused internally by the importer or by its employees rather than being discarded. An exporter shipping to countries where packaging materials may end up as housing materials is more empathetic if it considers using a slightly better grade of boards and plywood and making sure that they have been heat- treated rather than fumigated with chemicals. Another way of displaying customer focus is to include a packing list in the recipient’s language and to clearly mark all of the packages within a shipment; for example, by color-coding or letter- coding each pallet and its corresponding manifest. Yet another way of showing customer concern is to utilize unitized packages that match the size of the ones used by the customer, so that goods can be placed directly in its warehouse, without having to be reloaded onto the pallet size that the customer uses. ▶ ▶

42. Sea Freight: The Backbone of Global Trade ▶ Sea freight is a cornerstone of global trade, offering cost- effective transportation and connecting economies worldwide, enabling the exchange of goods. ▶ Sea freight's primary advantage is its cost-effectiveness, particularly for bulk cargo and oversized items, allowing businesses to maintain competitive pricing. ▶ A trade- off of sea freight is its slower transit time due to the longer distances covered and multiple port stops, necessitating careful supply chain planning and inventory management. Sea freight packaging faces unique challenges, as goods endure harsh conditions like high humidity, salt spray, and rough seas. Materials such as corrugated cardboard, wood, and metal are commonly used for their durability. Proper sea freight packaging design incorporates robust materials and cushioning to withstand maritime conditions and protect goods from potential impact damage, ensuring safe and successful transportation of goods across the seas. Sea freight remains pivotal in connecting economies and driving global trade. ▶ ▶

43. Sea Freight: The Backbone of Global Trade ▶ Ocean cargo shipping is essential for global trade, and packaging is a key element in ensuring the safe and efficient transport of goods. ▶ Containerization is a prominent mode in modern shipping, involving loading goods into standardized containers for secure transport on container ships. ▶ Containerization offers advantages such as efficient handling, reduced damage risk, and accommodation of a wide range of cargo types. ▶ Breakbulk cargo, consisting of non- standard cargo, necessitates alternative packaging methods, including heavy- duty materials like wooden crates or steel strapping. ▶ The choice between containerization and breakbulk packaging depends on cargo type, shipping route, and specific requirements, highlighting the versatility of the ocean cargo packaging industry.

44. Choose the right shipping container ▶ Shipping containers are essential for the global supply chain, offering transport for various types of goods worldwide. ▶ Selecting the right shipping container hinges on the nature of the product being shipped, as different products require specific containers to maintain their quality and protect them. ▶ For non- perishable goods like electronics and clothing, dry cargo containers are the most common choice, available in various sizes, typically ranging from 20 to 40 feet long. ▶ Perishable goods like food or flowers necessitate refrigerated shipping containers, equipped with cooling systems to maintain a constant temperature, also available in different sizes. ▶ Hazardous materials like chemicals or flammable liquids demand specialized shipping containers, purpose- built to safely transport and prevent leaks or spills.

45. Choose the right shipping container In addition to the type of product you are shipping, there are a few other factors to consider when choosing a shipping container: ▶ Size: The size of the shipping container should be appropriate for the size and weight of the product you are shipping. It is important to leave enough space in the container for packing materials to prevent the product from moving around during shipping. ▶ Condition: Shipping containers can be new or used. New shipping containers are more expensive, but they are also in better condition and less likely to be damaged. Used shipping containers are less expensive, but they may have dents, scratches, or other damage. ▶ Price: The price of a shipping container will vary depending on the type, size, and condition of the container. It is important to compare prices from different suppliers before making a purchase.

46. Choose the right shipping container Here are some additional strategies for choosing the right shipping container: ▶ Consider the shipping mode: If you are shipping your product by ocean freight, you will need to choose a shipping container that is certified by the International Maritime Organization (IMO). IMO- certified shipping containers are designed to withstand the rigors of ocean travel. ▶ Consider the shipping environment: If you are shipping your product to a harsh environment, such as a hot and humid climate or a cold and snowy climate, you will need to choose a shipping container that is designed to withstand those conditions. ▶ Consider your budget: Shipping containers can range in price from a few hundred dollars to several thousand dollars. It is important to set a budget before you start shopping for a shipping container.

47. Choice of Container ▶ Prior to using a container for shipping, it's crucial for the exporter to inspect it, especially when cargo will not be unitized on pallets or in crates. ▶ External inspection of the container is essential to identify structural damage, ensuring it can withstand the weight of other containers that may be stacked on top. ▶ Key aspects of the external inspection include checking for a straight frame, intact lifting and securing fittings, proper door function, competent repairs, and an absence of visible structural rust. ▶ Internal inspection, conducted with closed doors, is necessary to identify potential light leakage, which may indicate water infiltration risks during transit and potential structural issues. ▶ To protect the cargo, it is important to confirm the container has a wooden floor and ideally wooden sides, ensuring that condensation damage and direct contact with metal sides are prevented. The presence of hardware, the absence of odors, and cleanliness are also critical aspects of inspection.

48. Different types of shipping containers and their uses: ▶ Dry cargo containers: Dry cargo containers are the most common type of shipping container. They are used to transport non- perishable goods such as electronics, clothing, and furniture. ▶ Refrigerated containers: Refrigerated shipping containers are used to transport perishable goods such as food and flowers. ▶ Open- top containers: Open- top containers are used to transport bulky or oversized cargo. ▶ Flat rack containers: Flat rack containers are used to transport cargo that cannot be stacked, such as machinery and vehicles. ▶ Tank containers: Tank containers are used to transport liquid or gas cargo. ▶ Hazardous materials containers: Hazardous materials containers are used to safely transport hazardous materials such as chemicals and flammable liquids.

49. Full-Container- Load (FCL) Cargo ▶ While it is true that containers protect cargo against most damages, the choice of the proper container is important when shipping a full-container- load (FCL) shipment. An FCL shipment utilizes the entire capacity of a container, whether by weight or by volume. A shipper can also elect to use a full container if it wants its cargo to not be exposed to other goods while in transit.

50. Palletization ▶ Unitizing goods for shipment is preferable as it allows for more efficient handling using forklifts or other material handling equipment. ▶ Unitization can be achieved through palletizing or building boxes that contain the goods, adding an extra layer of protection compared to leaving them in their original secondary packaging. ▶ Palletizing and shrink- wrapping goods protects them from water infiltration and condensation, both during shipping and at the importer's warehouse, improving the chances of goods arriving in good condition. ▶ Unitizing prevents the primary package from being crushed, ensuring the goods are immediately sellable, even if the boxes have cosmetic damage. ▶ While some shippers provide additional empty boxes for customers to repackage damaged goods, it is more cost- effective to prevent damage through proper unitization.

51. Palletization ▶ Palletized units offer an advantage where secondary packaging made of corrugated cardboard may suffice to protect the goods, provided the pallets are corner- protected and stacked correctly with rigid support. ▶ The practice of alternating boxes in a "brick" pattern during palletization can lead to weaker parts of the boxes supporting more weight, increasing the risk of crushed boxes and should be avoided. ▶ Building pallets in columns, where boxes fit directly on top of one another, reduces the likelihood of crushed or damaged boxes during shipment. ▶ Goods shipped in corrugated boxes without reinforced corners, a column pattern, or proper use of stretch or shrink- wrap are at a higher risk of damage during transit. ▶ Poorly constructed pallets with boxes of varying sizes are also prone to damage in transit.

52. Palletization ▶ The standardized size of pallets in Europe is 80 × 120 centimeters, while in the United States, they are generally 36 × 48 inches. ▶ Pallet sizes in these regions do not neatly fit into standard container dimensions, posing challenges for container loading. ▶ When corrugated paper boxes are designed to fit a specific pallet's footprint, they may not efficiently accommodate another pallet size. ▶ European exporters using 40 × 40- centimeter base boxes may find that a portion of a U.S. 36- inch pallet remains unused. ▶ Finding a compatible dimension that suits both European and U.S. standards is a challenging compromise.

53. Non- Unitized Cargo: Protecting Goods in the World of Ocean Shipping ▶ Efficient packaging and protection of non- unitized cargo is crucial in ocean shipping. ▶ Non- unitized cargo needs tailored protection against crushing and moisture. ▶ Higher- grade corrugated paperboard (double- or triple- walled) is recommended for enhanced protection. ▶ To prevent damage when stacking goods, layers of corrugated paperboard or plywood should be placed between cargo layers. ▶ Additional protective measures are necessary in high- humidity regions, such as plywood on the container floor or the use of pallets to insulate cargo from moisture. Minimizing the use of paperboard in high- humidity environments is essential to maintain cargo integrity.

54. Blocking Materials ▶ Efficient cargo packing in international shipping is essential for safe transit. ▶ Preventing cargo movement within containers is a significant challenge. ▶ The most effective method involves attaching cargo to the container structure using hooks, straps, or wooden braces. ▶ Dunnage materials like pallets, lumber, or inflatable bags can be used as spacers between pallets or packages to reduce cargo movement. ▶ Bracing materials should be inserted between the cargo and the container door to eliminate void spaces. ▶ Proper packing within a Full Container Load (FCL) is critical, utilizing the entire floor space to prevent cargo from shifting. ▶ Neglecting proper dunnage use can result in costly damage, accidents, and puncturing the container walls. ▶ Shipping lines provide container- packing guides with recommendations for safe and efficient cargo transit in international shipping.

55. Overall Weight ▶ Weight limitations on truck trailers and shipping containers are crucial in the global logistics industry. ▶ Variability in weight restrictions across countries and states adds complexity to cargo transportation. ▶ Shipping lines recommend weight limits for containers, but some shippers exceed these limits. ▶ Previous container accidents revealed the dangers of containers with weights higher than declared. ▶ The SOLAS amendment mandates weight verification for containers before loading to enhance safety and accuracy. ▶ The SOLAS amendment promotes transparency, accuracy, and overall safety throughout the supply chain in the transportation of goods.

56. Optimizing Container Loading for Mixed Cargoes: A Balancing Act ▶ Efficient container loading is crucial in international shipping, affecting cargo safety and transportation costs. ▶ Placing heavier items at the bottom of the container enhances stability and reduces the risk of accidents. ▶ Maintaining a balanced center of gravity is vital for overall load stability during transportation. ▶ Symmetrical loading helps distribute weight evenly and keeps the center of gravity at the container's center. ▶ Modern software tools aid in optimizing container loading for mixed cargoes by considering volume and weight. ▶ Efficient container loading maximizes space utilization, reduces costs, enhances cargo safety, and streamlines the supply chain for mixed cargoes.

57. Less- than- Container- Load (LCL) Cargo ▶ Less-than-container- load (LCL) shipments are small shipments consolidated into full containers by a freight forwarder or NVOCC. ▶ LCL shipments require unitization on a pallet or placement in a crate or box to prevent damage. ▶ Due to the uncertainty of cargo types in the container, careful packaging and protection are essential for LCL shipments. ▶ LCL shipments face additional risks, including damage from other cargo, heavy loads, and hazards like leakage and odors from neighboring cargoes.

58. Breakbulk Cargo ▶ Breakbulk cargo refers to oversized or heavy cargo that cannot be containerized. ▶ Breakbulk cargo requires different packaging and handling as it is placed directly in the ship's hold, exposed to more frequent handling. ▶ Due to multiple handlings, breakbulk cargo packaging must withstand the rigors of the journey and extra handling. ▶ Shippers must ensure that the weight and dimensions of breakbulk cargo are manageable by all facilities involved in the cargo's journey. ▶ Specialized freight forwarders are often involved in handling heavy and cumbersome "project cargo" and can provide expertise on navigating limitations and logistics.

59. Crates and Boxes ▶ Boxes and crates are suitable containers for breakbulk cargo or LCL cargo bound for a freight consolidator. ▶ These containers should be sized appropriately to secure the cargo in place and prevent shifting. ▶ Crates and boxes should be structurally robust and reinforced at lifting points. ▶ If cargo must remain upright, options include mounting on a pallet or using hooks and straps for unidirectional handling. ▶ It's advisable to include devices inside and outside containers to record mishandling or improper orientation during shipment for evidence purposes.

60. Crates and Boxes ▶ Boxes and crates have different structures: boxes are wooden containers with integral sides, while crates are built on wooden frames, which may be open or enclosed with plywood. ▶ Crates rely on the strength of their frames, making them generally stronger than boxes. ▶ Well- built crates use three- way corners for maximum strength, but this technique is becoming less common. ▶ Both crates and boxes should be reinforced with corner strapping and metallic bands for added structural integrity. ▶ Open crates are unsuitable for cargo vulnerable to water, so boxes and enclosed crates for moisture- sensitive shipments should be lined with waterproof materials like polyethylene, and some may have drainage holes. ▶ Due to the risk of mishandling during international shipments, it's advisable to place monitoring devices on boxes or crates to detect shocks and ensure goods were kept upright throughout the journey.

61. Bags ▶ Bags can be used for transporting breakbulk merchandise, especially those unaffected by water and unlikely to be pilfered. ▶ Multi- wall shipping bags are designed for chemicals, plastics, and powdered materials. ▶ These bags consist of multiple layers of kraft paper, fabric, and light polymers but are not highly durable against frequent handling. ▶ To account for potential damage during international shipments, it's advisable to include around 3 percent extra empty bags. ▶ Shipping bags are sensitive to rough handling and can benefit from palletization and shrink- wrapping for increased integrity. ▶ Flexible intermediate bulk containers (FIBCs) are large woven bags constructed of polymer fibers, primarily used for transporting granular cargo like plastics, grains, and chemicals.

62. Drums ▶ Drums come in three forms: metallic drums (steel drums), polymer drums, and fiber drums. ▶ Steel drums are suitable for wet or dry cargo, resistant to water damage and pilferage, but heavy and costly. They can be handled by a single stevedore. ▶ Polymer drums are suitable for liquid and wet cargo but less resistant to rough handling; they should not be handled manually and are best placed on pallets. ▶ Fiber drums are for dry cargo like plastic pellets or fertilizers, often lined with a polymer bag for cargo containment. They should be palletized and not handled manually. ▶ Intermediate Bulk Containers (pallet totes) are larger and designed for liquids; they are too heavy for manual handling and should be moved with mechanical equipment. ▶ Fiber drums and Intermediate Bulk Containers are sensitive to mechanical damage, so care is needed during handling.

63. Wood Requirements ▶ International Phytosanitary Measure 15 (IPPM 15) is a global convention aimed at preventing wood pests like the Asian long- horned beetle and North American pinewood nematode. ▶ Wood products used in international trade must bear the IPPC symbol to indicate they comply with these regulations. ▶ The IPPC mark includes information about the country where the wood was treated, the plant where the process occurred, and the specific treatment method used. ▶ Currently, heat treatment (HT) and methyl bromide (MB) are the only allowable treatments, with MB still accepted for IPPC purposes. ▶ Other abbreviations such as DB for "debarked" and KD for "kiln- dried" are used in some countries. ▶ Compliance with IPPC regulations is crucial for preventing the spread of wood pests and avoiding potential fines.

64. Markings ▶ Use international pictorials for cargo handling, standardized by the International Organization for Standardization (ISO), to protect cargo from poor handling. ▶ Ideally, provide translations of these pictorials in the languages of the ports the cargo will transit. ▶ Clearly display the net weight and gross weight (metric and English units) on the outside of the package to prevent inappropriate equipment from handling the goods. ▶ Display the outside dimensions of the goods (both in English and metric units) to ensure proper equipment usage. ▶ Mark breakbulk or LCL cargo with the consignee's name (company picking it up at the destination port) and shipment number on several sides to prevent loss or shipping errors. ▶ Avoid consignee names that reveal the brand or type of goods to enhance security and prevent theft. ▶ Mark all units of the same shipment as "1 of 4," "2 of 4," etc., and use a designated color on the units to clearly identify them as part of one shipment. ▶ Employ alternative methods to detect tampering or theft, such as uniform paint, specific shipping tape, or colored shrink- wrap, while avoiding the use of company logos. Use codes instead of brand markings to identify shipments, changing them regularly and without patterns to enhance security.

65. The Speed and Precision of Air Freight ▶ Air freight is the fastest mode of international transportation, providing rapid delivery of goods but comes at a higher cost. ▶ The primary advantage of air freight is its speed, making it ideal for perishable or high- value cargo and meeting tight deadlines. ▶ Air freight packaging must strike a balance between weight and durability, as lightweight and compact materials are used to conserve space and minimize overall weight. ▶ Common materials for air freight packaging include lightweight options like corrugated cardboard, foam, and plastic, ensuring structural strength while reducing weight. ▶ Air freight packaging must also address unique challenges, such as vibrations, temperature changes, and altitude fluctuations, requiring airtight designs to prevent cargo damage and ensure goods arrive in perfect condition.

66. Unit Load Devices (ULDs) in Air Transport: Challenges and Considerations ▶ Different modes of transportation require distinct container types to ensure secure and efficient cargo transit. ▶ Unit Load Devices (ULDs) are specialized containers designed for air transport, catering to the unique constraints of the aviation industry. ▶ ULDs are not easily transferable between various transportation methods, except for a 20-foot container that can be used in cargo planes and on trucks. ▶ Cargo in air transport is consolidated into ULDs at the departure airport and then handled again at the destination airport, introducing additional complexity and potential risks. ▶ ULDs used in air transport are lightweight and typically made from materials like wood, Plexiglas, or aluminum, chosen to meet aviation weight constraints while ensuring structural integrity. ▶ Some ULDs lack full enclosure and may feature netting, leaving cargo exposed to environmental elements, which can result in wet and potentially damaged cargo. ▶ Most damage in air transport occurs during handling processes before and after flights, highlighting the importance of secure packaging to protect goods from moisture and potential damage. ▶ Cargo in air transport may undergo unloading from one container and reloading into another at connecting airports, underscoring the need for careful packaging to prevent damage during these transitions.

67. Air Freight: Packaging Materials ▶ Secondary packaging is generally inadequate for air cargo shipments due to its inability to protect goods from the hazards of handling before and after flights. ▶ Airline operations often involve hub-and-spoke models where goods are handled at multiple hub airports, increasing the risk of careless handling. ▶ Secondary packaging may include markings that make goods attractive to thieves. ▶ Appropriate shipping packaging should be tertiary, involving an additional layer of double-walled corrugated paperboard and shrink- wrap. ▶ The United Nations has established rules for air package resistance to drops and crushes, particularly for dangerous goods, with the last update in 2007. ▶ For fragile shipments, a box within a box strategy is effective, but it may incur higher shipping costs due to dimensional weight calculations. ▶ Additional protective measures include using desiccant packets for humidity- sensitive cargo, adding shrink- wrap for protection against condensation, rain, or leakage, and ensuring that packages can contain accidental leaks, especially for glass or plastic bottles, to comply with regulations and avoid substantial penalties.

68. Markings in International Air Shipments: A Universal Language of Logistics ▶ Cargo markings are crucial in international logistics, guiding goods through complex global supply chains, similar to ocean shipments. ▶ Markings on packages serve as a universal language, conveying information about contents, handling needs, and destinations to various stakeholders in the logistics chain. ▶ The use of standardized pictorial markings is valuable, transcending language barriers to quickly convey important information. ▶ Written instructions in multiple languages are essential for international air shipments to ensure correct handling, compliance with local regulations, and minimize misunderstandings due to language barriers. ▶ Standardized container numbering and barcoding, coupled with digital technologies, enhance cargo tracking and tracing, contributing to transparency and timely interventions in case of issues. Proper markings are essential for compliance with international regulations, such as IATA guidelines.

69. Road and Rail Transport ▶ International road and rail transportation should follow cargo protection policies similar to ocean container shipments. ▶ Unitizing cargo into pallets is advisable for efficient handling during loading and unloading. Protect cargo pallets by securing all four corners with nylon or steel straps and shrink-wrapping to guard against rain and humidity. ▶ ▶ Block and brace cargo within the truck trailer and railroad car to prevent damage from shifting and sudden accelerations. ▶ Railroad companies have specific bracing rules for cargo in containers or truck trailers carried on railroads. ▶ Large domestic shipments in the U.S. typically use trucks or rail for transportation, and they may be shipped as full truck loads (FTL) or partial less- than- truck loads (LTL). ▶ Light- weight secondary packaging may not be sufficient to protect goods, and improvements, such as heavier corrugated paper boxes and better pallet loading, have reduced damage costs. ▶ Pay attention to the risk of theft in consumer goods shipments by using unmarked packaging to prevent pilferage, as easily identifiable products are often targeted by thieves.

70. Small Packets ▶ International shipping encompasses diverse cargo types, including small packets handled by postal services and courier companies like DHL, UPS, and FedEx. ▶ Small packets contain individual items, documents, or small quantities of products for international shipping, serving e-commerce, personal correspondence, and small- scale exports. ▶ Small packets undergo numerous manual handling processes in various facilities during their journey, posing risks of mishandling, exposure to elements, and damage. ▶ The primary packaging challenge for small packets is ensuring durability and protection, as they are manually processed multiple times. ▶ Small- packet packaging must use robust materials and construction techniques to withstand sorting, stacking, and transportation stresses. ▶ Exposure to conveyor belts, automated sorting systems, and manual handling requires small- packet packaging to protect contents from compression, impacts, and vibration.

71. Common packaging considerations for small packets include: ▶ Size- appropriate packaging: Using packaging that closely fits the size of the item is essential to prevent movement within the package, reducing the risk of damage during transit. ▶ Protective cushioning: Providing adequate cushioning materials, such as bubble wrap, foam, or packing peanuts, helps absorb shock and protect fragile items from impact. ▶ Sealing and taping: Ensuring that packages are securely sealed and taped to prevent tampering or damage due to exposure. ▶ Labeling: Clear and accurate labeling is crucial for efficient handling and international customs clearance. ▶ Waterproofing: In cases where small packets may be exposed to rain or other environmental elements, waterproof packaging can prevent damage to the contents. ▶ Sturdy boxes or envelopes: Using boxes or envelopes made from strong and durable materials, designed to withstand handling and potential stacking in transit. ▶ Weight distribution: Distributing the weight evenly within the package helps maintain balance and minimizes the risk of damage due to shifting contents. ▶ Customs documentation: Including all necessary customs documentation to facilitate clearance through international customs authorities.

72. Considerations ▶ Small shipments are often consolidated into larger cargo loads for transportation, exposing them to potential damage from other packages. ▶ Inexperienced consumers may send packages with inadequate or inappropriate packaging, increasing the risk of damage to other shipments. ▶ Small packages undergo more handling, utilize multiple means of transportation, and pass through various sorting facilities. ▶ Automated sorting processes on high- speed machines subject small packages to shocks, abrasions, and multiple accelerations during sorting. ▶ Packaging for small shipments should be puncture- resistant, abrasion- resistant, and provide sufficient surface area for sorting bar codes. ▶ Information on tertiary packaging, such as bar codes, should be minimal to avoid confusing sorting machines and causing shipment delays. Many small-packet companies recommend using their own packaging materials.

73. Pricing ▶ Small- package carriers like FedEx, UPS, and DHL have shifted from weight- based pricing to dimensional weight pricing to determine shipping costs. ▶ Dimensional weight (DIM weight) accounts for the space occupied by a package during transportation, addressing spatial constraints and operational costs. ▶ DIM weight is calculated by multiplying the package's length, width, and height, then dividing by a specific constant for domestic and international shipments. ▶ Shippers are now encouraged to optimize packaging to reduce dimensional weight, which lowers shipping costs and promotes more sustainable practices. ▶ For lighter goods, smaller and more efficient packaging is favored to minimize dimensional weight and reduce shipping expenses. ▶ Balancing optimization for lower costs with the need to protect contents during transit is crucial.

74. DIM weight pricing The adoption of DIM weight pricing has encouraged businesses and individuals to reevaluate their packaging choices. Some considerations for shippers when selecting packaging include: ▶ Product Protection: Balancing the desire for smaller packaging with the need to protect the contents of the package. ▶ Cost Efficiency: Selecting packaging that minimizes dimensional weight while preserving product integrity for maximum cost savings. ▶ Environmental Impact: Reducing the environmental footprint of shipping by minimizing wasted space and emissions through efficient packaging. ▶ Carrier Guidelines: Understanding the specific dimensional weight rules and guidelines of the carrier being used to make informed packaging decisions.

75. Security ▶ Cargo theft is a significant problem for shippers, causing substantial financial losses globally, with estimates reaching billions of dollars annually. ▶ Reliable data on the extent of cargo theft is limited, making it a considerable concern for international shippers. ▶ Various methods have been developed to prevent cargo theft, but no single approach has proven completely effective, prompting the need for a combination of strategies to deter theft and pilferage. ▶ It is advisable to avoid prominently displaying the shipper's name, especially for goods with street appeal or those shipped in secondary packaging that doubles as primary packaging. ▶ Preventative measures include shipping exclusively in full container loads (FCLs) or full truck loads (FTLs) to restrict access to the cargo or using additional blank paperboard boxes for less-than- truck load (LTL) goods to protect against handling damage. ▶ The use of container seals, with seal numbers recorded on the bill of lading, is essential for tracking whether a container has been tampered with. Personnel involved in the shipping process should be carefully managed to reduce the risk of insider involvement in thefts, including limiting knowledge of shipment content to trusted employees, monitoring non- employees on the premises, and maintaining security measures like video surveillance.

76. Hazardous Cargo ▶ Hazardous cargo is commonly shipped by sea, especially if it includes flammable, explosive, or toxic materials. Containerized dangerous goods are typically transported on deck rather than below deck. ▶ The International Maritime Organization (IMO) regulates the shipment of dangerous goods by sea, publishing the International Maritime Dangerous Goods Code (IMDG) every other year, with the latest version valid for 2018- 2020. ▶ The IMDG Code covers packaging, labeling, handling, and emergency response procedures for hazardous cargo and is widely followed globally, serving as a de facto world standard. ▶ The shipment of dangerous goods by air is governed by standards outlined in the International Air Transport Association (IATA) Dangerous Goods Regulations manual. These regulations are revised annually, with the latest edition being the 58th in 2017. ▶ Shipping hazardous cargo by air is similarly intricate and cumbersome compared to shipping by sea, involving various safety and compliance measures. ▶ Domestic regulatory agencies impose additional requirements, as international shipments often consist of two domestic legs: one in the exporter's country and one in the importer's country. These regulations can be complex and occasionally conflicting. ▶ Due to the complexity of international hazardous goods shipments, shippers are advised to contract with specialized freight forwarders or consultants. Shipments involving radioactive components are even more intricate and require specific expertise.

77. The Safe and Secure Transport of Radioactive Material

78. Refrigerated Goods ▶ Refrigerated goods vary widely in their specific handling requirements, often requiring individualized treatment due to different temperature and humidity needs. In practice, different refrigerated goods are not mixed during transport to maintain the right conditions. ▶ Refrigerated cargo transported by ocean typically utilizes refrigerated containers, known as reefers. Monitoring temperature is essential, with temperature- sensitive indicators to ensure accuracy. Goods are usually pre-cooled before loading, as reefers are more effective at maintaining cold temperatures than actively cooling goods. ▶ Reefer containers may exhibit temperature variations of up to five degrees Celsius (nine degrees Fahrenheit) due to uneven air circulation. Confusion between Fahrenheit and Celsius temperature settings can be problematic, especially in U.S. trade. ▶ Adequate air circulation is crucial when loading refrigerated containers to ensure goods stay properly cooled. Goods must be centrally located in the container with space around the cargo for airflow. Framing, rather than inflatable dunnage, is used for bracing to facilitate airflow. Some goods require controlled atmospheres with specific oxygen and nitrogen ratios to prevent spoilage. ▶ Maintaining high humidity levels (95-100%) is crucial for fresh produce during transport to retain freshness and prevent weight loss from evaporation. Many fruits and vegetables are water- rich, and even a small weight loss can significantly impact revenue. ▶ Refrigerated air shipments pose different challenges since goods are placed in cargo holds with various temperature settings. Certain cargo carriers provide multiple cargo holds with distinct temperature settings to maintain the ideal environment for perishable goods. ▶ Air shipments should take care to prevent incompatible cargo mixing in cargo holds, possibly using solid-wall corrugated paperboard boxes and shrink- or stretch- wrap for protection against such events. ▶ Various experiments are exploring how controlled atmospheres, combined with the right humidity, temperature, and gas mix, can shift some perishable cargo from air transport to ocean transport due to cost savings.

79. Modern Marvels: How Supermarkets Operate

80. Size ▶ Consumer packaging varies by country based on consumer preferences, shopping habits, and cultural customs. ▶ Preferences for package sizes, shapes, and materials can lead to different packaging options even for standardized products. ▶ Retail store layouts, shelf depths, and shopping cart designs can also impact consumer packaging choices. ▶ Secondary packaging, which holds multiple consumer packages, is influenced by retail store size and truck size. ▶ Tertiary packaging, like pallets, is influenced by the frequency and volume of retail sales.

81. Legal Issues ▶ Legal requirements impact consumer packaging, including regulations on package sizes and weights in different countries. ▶ Maximum employee carrying weights set by regulations affect the weight of secondary packaging, consumer packaging, and tertiary packaging. ▶ Legal constraints on distribution channels can also influence consumer packaging. For instance, self- service drugstores in the United States use primary packages like blister packs, while French pharmacies prefer cardboard boxes. ▶ The nature of the product, whether over- the- counter or prescription drugs, leads to variations in primary, secondary, and tertiary packaging. ▶ Differences in primary packaging, due to legal constraints, have downstream effects on secondary and tertiary packaging configurations.

82. Storage and Transportation Environment ▶ Environmental factors such as dust, humidity, heat, and cold can influence packaging requirements. ▶ Constraints can arise from the absence of refrigeration resources, leading to packaging alternatives like long- conservation milk that doesn't require refrigeration throughout the supply chain. ▶ Packaging choices may vary based on domestic factors in the importing country. ▶ Companies should develop strategies to accommodate diverse consumer and retail packaging alternatives in export markets.

83. Packaging as a Marketing Tool ▶ Proper handling of packaging is crucial for smooth goods transfer from exporter to importer. ▶ Exporters should prepare for worst- case scenarios and challenging journeys when packaging their goods for export. ▶ Goods should be protected from physical damage by using sturdy cartons, proper pallet loading, dunnage separation, plastic film for humidity and rain protection, and desiccant strips. ▶ Effective shipping procedures should ensure that paperwork is in the hands of appropriate personnel only. ▶ Good packaging practices may have higher initial costs but lead to substantial benefits, such as preventing damage and insurance claim denials. ▶ Well-packaged goods generate goodwill with importers, enhance relationships, build trust, and should consider employee- friendliness for those unpacking the goods.