Essentials of Freight Forwarding.pptx

1. Essentials of
Freight
Forwarding
Export Packaging and Warehousing

2. IMPORTANT
DATES
ASSSIGNMENTS – 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.

37. Tree to Box: The Billion Dollar
Cardboard Business

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.