How to protect goods during international transportation?

Protecting goods during international transportation is essential to prevent damage, loss and delays. Find out which solutions help keep your goods safe throughout the delivery.

What to keep in mind:

• Professional packaging and correct labeling;
• Insurance against damage, theft or mishandling;
• Essential documents: CMR, loading lists, insurance policies;
• Intelligent monitoring and sealing systems;
• Adaptation of the means of transport to the type of goods.

International freight exposes your goods to a variety of risks that can cause significant losses to your business. In reality, goods are vulnerable to both ordinary risks such as handling, storage or loading, and extraordinary risks such as riots, strikes or acts of terrorism.

In the field of international transportation, an essential point to understand is that carriers have limited liability. In fact, in international road transport, they are not liable for loss or damage to goods if they can prove that the problem was caused by force majeure. Also, in maritime transport, companies are not liable for losses caused by their own defects of the goods or nautical error of the crew. We therefore consider cargo insurance to be indispensable as an agreement to protect against loss or damage caused by the risks covered by the policy.

In this article, we explain how you can effectively protect your goods during international transportation, from choosing the right packaging to properly securing the goods being transported.

Types of risks in international transport

In global logistics, goods are exposed to numerous hazards every day. The global losses associated with the various risks in international transportation are estimated at around 40 billion dollars annually. Understanding these risks is the first step towards effectively protecting the goods being transported.

Improper handling of goods

Improper handling is one of the most common risks in the supply chain. In terminals, ports or airports, goods are often damaged due to mishandling. To avoid these situations, it is essential that loading and unloading is carried out by the right means.

In accordance with the regulations, before loading or unloading operations begin, vehicles must be secured against uncontrolled movement by braking on level ground and by braking with stop blocks on sloping ground. Heavy or bulky materials must also be handled using lifting equipment under the supervision of a specialized person.

Bad weather

Unpredictable weather significantly affects international transportation. Air transport, although less vulnerable than other modes, can be delayed or canceled due to storms or dense fog. Maritime transport is even more sensitive to weather conditions - strong storms and high waves can cause considerable delays or even compromise the safety of cargo.

In China in particular, typhoons are a major challenge, with around 7-8 typhoons occurring annually, causing substantial disruptions to transport routes and schedules.

Thefts and losses

Freight theft is a major risk, especially in road transport, where trucks are vulnerable to unauthorized stops or in unattended areas. The Transported Asset Protection Association (TAPA) recorded 11,332 cargo thefts in the EMEA (Europe, Middle East and Africa) region between January 2021 and June 2022.

In July 2023 alone, 1,736 theft events were reported across 31 countries in the EMEA region, with losses estimated at around €16 million. The most affected countries are South Africa, Germany and the UK, and the most targeted products include cash, metals, tires, clothing and food.

Theft methods are becoming increasingly sophisticated, including:

• Using vehicles with beacons to imitate police vehicles
• GPS signal jammers
• False documentation for goods collection
• Using freight exchanges to obtain goods by deception

What anti-theft measures have a real impact without significantly increasing costs?

Two things make the difference in practice: the drop-off procedure (secure parking lots, routes with checkpoints) and identity verification upon pickup/delivery (two-step confirmation, contact person, signatures, and photos). In many cases, it is not the lack of technology that is the problem, but the lack of a clear procedure in the field.

Road or maritime accidents

Transportation accidents can result in the complete destruction of the goods transported. When transporting dangerous goods, the risks are magnified. Drivers transporting such goods must be ADR-certified and familiar with emergency procedures.

In the event of an accident involving dangerous goods, personnel must immediately notify the authorities, avoid contact with spilled substances and remove potential sources of fire. Electrical equipment must also not be used, except for those certified for emergency response.

Customs delays and bottlenecks

Customs blockages are a significant source of delays in international transportation. Customs inspections can take place for a variety of reasons, including suspicions about the accuracy of declarations, routine monitoring procedures or concerns about smuggling.

Common problems include documentation errors, incorrect tariff classifications and port congestion. Also, the implementation of new security systems, such as e-location devices in Serbia, have created delays of 1-2 days at border crossing points.

All these risks underline the importance of thorough preparation for the international transportation of goods, including the correct choice of packaging and additional protection, which we will discuss in more detail in the following sections.

Packing goods correctly for transportation

Protecting goods in transit starts with choosing the right packaging, which is one of the most effective ways to prevent damage in international transportation. The right packaging not only protects products, but also facilitates their handling, thereby reducing the risks identified above.

Choosing the right packaging depending on the goods

The choice of packaging material should take into account the specific characteristics of the product being transported. For heavy or bulky products, wooden boxes offer optimal protection against stacking pressures and vibrations. They are indispensable for transporting engines, industrial equipment or car parts.

For lighter products (under 30 kg), cardboard boxes are the ideal solution. Filling materials such as bubble wrap, polystyrene or multi-layered cardboard also play a crucial role in isolating products from the edges of the box.

Essential principles for proper packaging:

• The product should be positioned in the center of the box, not touching the edges
• Protective materials must be placed on all sides of the product
• The contents must not be able to move inside the packaging
• The box must be properly sealed with wide adhesive tape in at least three layers

Using pallets and stretch film

To apply stretch film correctly, it must be wrapped evenly, completely covering the edges of the pallet. Boxes should not extend beyond the edge of the pallet as this exposes the goods to damage during handling.

How can you quickly recognize a pallet that is "properly prepared" for international transport?

A secure pallet has a stable base, evenly distributed weight, and protected corners. If the load "moves" during transport or the stretch film does not cover the bottom of the pallet, there is a high risk that the goods will shift when braking, cornering, or when handling with a forklift.

Marking fragile or dangerous parcels

Proper labeling of fragile or hazardous packages is essential for proper handling. In the case of fragile products, the labels "FRAGILE" or "CAUTION, CONTAINS PLASTIC" should be affixed visibly on the packaging, informing couriers of the need for careful handling.

For dangerous goods (ADR), marking and labeling is carried out in accordance with the legislation in force. Labels for ADR goods are diamond-shaped, 100 mm wide, with a drawing illustrating the type of hazard at the top and the classification number at the bottom. They must be displayed on a contrasting background for maximum visibility.

Vehicles transporting dangerous goods also require orange rectangular placards or diamond-shaped label plates 250 mm wide. These orange plates, made of reflective material, are marked with the UN number and the hazard class of the goods being carried.

Packaging according to type of transportation (road, sea, air)

Each mode of transportation imposes specific packaging requirements due to the different conditions goods are subjected to.

Whichever mode of transportation is chosen, the packaging must comply with international regulations and offer optimal protection, adapted to the specific nature of the goods and the risks identified earlier in the supply chain.

Essential documents for the protection of goods

Proper documentation is a fundamental aspect in ensuring the protection of goods during international transportation. The right paperwork not only facilitates the transit of goods through customs, but also defines the responsibilities of each party involved in the supply chain.

CMR carriage letter

The CMR must contain precise information such as: consignor and consignee details, place of loading and unloading, detailed description of the goods, gross weight, transportation charge and instructions for customs formalities.

ADR transport document

For the transportation of dangerous goods, the ADR transport document is mandatory. It must include the full description of the goods according to chapter 5.4 of the ADR Agreement.

This document must specify: the UN number preceded by the letters "UN", the official name of the substance, the model label number, the packing group, the total quantity transported, the names of the consignor and consignee. Also, in the case of routes including tunnels, the tunnel restriction code specific to the substance being transported must be mentioned.

Safety data sheets for dangerous substances

Safety data sheets are documents detailing the properties and risks of hazardous substances. They provide the information necessary for the safe handling, transportation and storage of chemicals.

The law requires these sheets to accompany any transport of dangerous substances and to be available to drivers and control authorities. The documents contain information on first aid measures, procedures in case of fire or accidental spills.

Written instructions for drivers

According to ADR, written instructions for drivers are mandatory on board any vehicle carrying dangerous goods. They must be provided by the carrier in a language the driver understands.

The instructions contain vital information about the nature of the hazard of the goods being carried, the measures to be taken in the event of an accident, the necessary protective equipment and first aid procedures. Before the start of the journey, crew members should consult these instructions and familiarize themselves with the cargo-specific emergency actions.

Thus, the above-mentioned documents are not only legal obligations, but also essential tools for protecting goods and ensuring safe transportation.

Cargo insurance: types and cover

For complete financial protection against transportation risks, understanding the different types of insurance available is essential. Goods can be affected by numerous perils, and specialized insurance provides the necessary security for business continuity.

The difference between cargo insurance and carrier's liability

Although they are often confused, there is a fundamental distinction between cargo insurance (CARGO) and carrier's liability insurance (CMR). The main difference is who is the beneficiary: CARGO insurance protects the cargo and is taken out by the owner of the goods, while CMR covers the carrier's liability for the goods transported.

CARGO insurance is valid for all types of transportation (air, sea, inland or combined) and indemnifies according to the value of the goods. CMR, on the other hand, covers the carrier's liability, indemnifying on the basis of the weight of the goods, not their value.

What a CMR policy covers

A standard CMR policy covers partial or total loss of or damage to goods during transportation. The carrier's liability is defined under the international CMR Convention, with compensation limited to 8.33 SDR/kg cargo (approximately EUR 10/kg).

However, due to the complexity of the transportation business, there are extensions of coverage that may include:

• Theft of goods by burglary or robbery
• Damage caused during loading/unloading operations
• Damage to transport containers
• Cabotage operations
• Covering defense costs (legal and out-of-court costs)

Common limitations and exclusions

Most CMR policies contain significant exclusions, such as:

• Improper packaging of goods
• Damage caused intentionally by the insured or their employees
• Usual weight loss or leaking
• Radioactive contamination
• Normal wear and tear
• Theft (unless there is a specific extension)
• Exceeding the delivery time for reasons not attributable to the carrier
• Damage caused by war, strikes or acts of terrorism

When additional insurance is recommended

Equipment and safety measures during transportation

Safety in international freight transport depends to a large extent on the specialized equipment and procedures implemented along the route. These preventive measures not only protect the cargo, but also the people involved and the environment.

Mandatory equipment for ADR transport

According to section 8.1.5 of the ADR Agreement, each vehicle carrying dangerous goods must have a specific set of equipment. They are mandatory for all transport units:

• A hold appropriate to the mass of the vehicle
• Two independent warning devices
• Eye washing fluid
• For each crew member: fluorescent vest, portable torch, protective gloves and goggles

Depending on the hazard class, additional equipment may be needed, such as an evacuation mask, shovel, manhole cover and collection container.

Vehicles must also be equipped with portable fire extinguishers. A vehicle with a maximum mass of up to 3.5 tons requires two extinguishers with a total capacity of 4 kg, while vehicles over 7.5 tons require extinguishers with a total capacity of 12 kg.

GPS monitoring systems

GPS monitoring is an essential element for transportation safety. From September 2024, the RO e-Transport application will become mandatory for monitoring road transportation of goods with fiscal risk on Romanian territory.

The transport operator has the obligation to ensure the transfer of vehicle position data throughout the entire journey. Failure to comply with this obligation is punishable by a fine of between 20,000 and 100,000 lei in the case of legal persons.

GPS systems offer significant benefits such as:

• Real-time fleet monitoring
• Optimize routes and reduce fuel consumption
• Monitoring driver behavior
• Generate detailed route and milestone reports

Training the staff involved

According to section 1.3.1 of ADR, all persons involved in the transportation of dangerous goods must be properly trained. Training should cover general awareness of the regulations, job-specific training and safety training.

This training must be regularly updated and documented, and records kept by the employer and made available to the authorities on request.

Role of the safety adviser

The counsellor must hold a valid training certificate for the specific mode of transport, obtained following a specialized course and passing an examination. The certificate is valid for 5 years.

Conclusion

Effective protection of goods during international transportation requires a well-planned, multi-stakeholder approach. Every aspect, from correct packaging to adequate insurance, plays a crucial role in minimizing risks. Of course, international transportation will always present certain dangers, but the preventive measures discussed can significantly reduce the likelihood of damage or loss of goods.

As outlined above, risks such as theft, adverse weather conditions or customs delays can be addressed by a combination of the right packaging, comprehensive documentation and modern monitoring systems. Furthermore, proper training of staff and the presence of a security advisor increases the level of protection for the goods being transported.

Choosing the right type of insurance is undoubtedly the cornerstone of your financial protection strategy. The difference between CARGO insurance and a CMR policy needs to be clearly understood to avoid situations where the damage suffered exceeds the standard compensation limits.

Last but not least, compliance with international regulations on the transportation of dangerous goods, as well as the use of specific equipment, becomes essential for the safety of all parties involved. Thus, thorough preparation and compliance with standards are the foundation of successful and safe international transportation.

We therefore recommend the implementation of a comprehensive protection strategy tailored to the specific type of cargo and mode of transportation chosen. The long-term benefits - reduced losses, optimized costs and enhanced reputation - fully justify the investment in the security measures described in this article.

Here is a list of frequently asked questions (FAQs) and answers