These common mistakes when shipping hazardous materials can end up costing your business a lot of money.
Shipping hazardous materials have very little room for mistakes but very large consequences if done incorrectly. Mistakes when shipping hazmat materials can cause injury, damage to property, or endanger lives, so hazmat shipping should always be handled with tremendous caution.
Safe hazmat shipping is possible but requires diligence, communication, and attention to detail.
These are the most common mistakes companies make when shipping hazardous materials.
- FAILING TO LABEL AND DECLARE GOODS PROPERLY
- NOT ACCOUNTING FOR DIFFERENCES IN MODES OF TRANSPORTATION
- LACK OF FAMILIARITY WITH SPECIFIC REGULATIONS FOR EACH SUBSTANCE
- ASSUMING GOODS AREN’T HAZARDOUS
- LETTING UNTRAINED EMPLOYEES HANDLE HAZARDOUS MATERIALS
- NOT FOLLOWING EXACT INSTRUCTIONS FOR PACKAGING BY THE MANUFACTURER
- THINKING ANY MISTAKES WILL BE OVERLOOKED
DEFINITION OF HAZARDOUS MATERIALS/DANGEROUS GOODS
First, let’s clarify what hazardous materials or dangerous goods are.
Many think of hazardous materials as things like explosives, gasoline, or acids. Yet, many common goods are hazardous when shipped, such as aerosol sprays, nail polish, alcohol, paint, dry ice, or cosmetics. Any substance or material that can pose a risk to health, safety, or property is a hazardous material or dangerous good.
SHIPPING HAZARDOUS MATERIALS VIOLATIONS
Hazmat safety regulations exist to keep people, property, and the environment safe. The Pipeline and Hazardous Materials Safety Administration (PHMSA) handle these regulations.
One reason you don’t want to make any hazardous shipping mistakes? Violations. Currently, hazmat regulation penalties are:
- Maximum civil penalty violation is $84,424 per day, per violation,
- Maximum civil penalty violation that results in death, serious illness, severe injury, or large destruction of property is $196,992 per day, per violation,
- Civil penalty for a violation of hazardous training is $508 per employee, per day.
HAZARDOUS SHIPPING MISTAKE EXAMPLES
Many companies have made hazardous shipping mistakes. Here are some true scenarios.
Example 1: Online Retailer
Fined $91,000
An online retailer shipped a package by air containing flammable liquid adhesive. The motor carrier discovered the product leaking from its container. The online retailer offered the shipment, not including the required shipping papers or emergency response information. The freight’s packaging was incorrect and not marked or labeled as required. Nor were the company’s employees trained in handling hazmat packages for shipment by air.
Example 2: Chemical Company
Fined $325,000
On two separate occasions, a chemical company shipped undeclared hazardous material that is illegal to transport by air. The chemical company allegedly shipped pints of acrolein, which can become explosive when combined with air. Neither shipment had the required shipping papers or emergency response information. Additionally, one of the shipments was not marked, labeled, or packaged as required. Employee training was also found to be non-compliant.
Example 3: Flooring Company
Fined $63,000
A flooring company shipped a package of hazardous freight. The motor carrier found a package leaking. The flooring company did not provide the required shipping papers or emergency response information, nor did they mark, label, or package the shipment as required. Additionally, employees were not trained to handle hazardous materials.
COMMON HAZMAT SHIPPING MISTAKES
Failing to Label and Declare Goods Properly
Failing to label and declare hazardous goods is one of the most common shipping mistakes. Transparency is critical at every level to ship hazardous materials without mistakes.
All hazardous freight must have the proper UN hazmat labels or hazmat placards to identify their contents. Shippers must also disclose the information on the shipper’s declaration form.
Failing to properly mark, label, and declare your hazardous materials keeps employees from knowing what kind of materials they are handling, which hazard class they belong to, and what kind of precautionary measures they need to take. In the end, improper labeling and declaration can be an endangerment.
Not Accounting for Differences in Modes of Transportation
Regulations on certain hazardous goods and packaging methods can vary based on which mode they’re shipped with.
Take dry ice as an example. It has different regulations when shipped by ground than when by air. Another example is magnetized material. It’s only subjected to regulation restrictions when transported by air due to the interference it can cause to aircraft instruments.
That’s why it’s important to confirm the mode of transportation when shipping hazardous materials before packing, marking, labeling, and documenting everything. This way, you and your logistics provider know the exact shipping requirements needed.
Lack of Familiarity with Specific Regulations for Each Substance
The USDOT provides detailed tables of hazardous materials and their specific regulations for each classification. This includes specific information such as what packaging to use or transportation modes to ship. It’s your company’s responsibility to be knowledgeable and familiar with those regulations. Even still, ignorance of these regulations is a common mistake when shipping hazardous materials.
Assuming Goods Aren’t Hazardous
There are many materials that the average person wouldn’t think of as hazardous. Assuming goods aren’t hazardous materials when they are is a common mistake that happens when employees aren’t properly trained on hazmat and dangerous goods. As a result, they lack the required knowledge to differentiate what is and isn’t hazardous. This risks transporting hazardous material without being packaged, labeled, and communicated in the correct manner.
This mistake has the potential to cause catastrophic consequences depending on the product, the transportation mode, and several other factors. Ensure your employees are trained and when in doubt, don’t assume. Take the extra time to research the material if needed and follow hazardous protocol when applicable.
Some common items that are assumed to be non-hazardous are:
- Magnetized materials
- Lithium batteries
- Contaminated medical equipment
- Dry ice
- Aerosols
- Equipment with gas cartridges or compressed air
- Genetically modified organisms
Letting Untrained Employees Handle Hazardous Materials
What’s the easiest and most important way to avoid hazardous material shipping mistakes? Make sure your employees are trained in hazmat shipping.
Many of these mistakes happen due to untrained employees handling hazmat shipments. Therefore, employees need to undergo formal training and show competence under supervision before handling hazardous goods on their own. Additionally, employees should frequently be reeducated to stay keen on hazmat shipping requirements.
Not Following Exact Instructions for Packaging by the Manufacturer
Hazardous material packaging is designed to meet regulatory requirements. Many hazmat packaging manufacturers will include detailed instructions on how to use their packaging for safe and compliant shipping. It’s important that employees have access to these instructions and understand them completely.
Thinking Any Mistakes Will be Overlooked
It can be easy to think your business won’t get caught with a hazmat shipping violation. Yet, as noted by the examples above, it can and does happen. As the U.S. government remains vigilant in cracking down on hazmat shipping violations, fines continue to increase, making it even more financially smart to stay compliant. Not to mention that those violations can cause harm to the environment or people. No matter what, risking a hazmat shipping violation is never worth it.
AVOID HAZARDOUS SHIPPING MISTAKES WITH AN EXPERT
Everyone makes mistakes sometimes, but when it comes to shipping hazardous materials, it’s crucial to do all you can to reduce them. Now that you know the most common mistakes when shipping hazmat, you can be more aware of avoiding them.
An easy way to help stay compliant when shipping hazardous materials is partnering with an expert knowledgeable in its regulations, like Trinity Logistics. We’ve been in the business of arranging hazardous shipments in several modes for over 40 years. We’ve also been Responsible Care certified since 2009.
If you’re looking for a reliable partner to help you with shipping your hazardous materials, consider Trinity Logistics. We can help take the guesswork out of keeping your hazmat shipments compliant.
Get help with my hazmat shipmentsShipping freight is often a large and crucial part of a company. To make a profit, you need to get your customers the right product at the right time, and for the best cost. If not managed properly, your transportation can cost you substantial money. With costs rising recently, it’s easy to see why the challenge for many companies has been to reduce their transportation costs. Are you taking the proper steps to do so?
WHY COSTS ARE RISING
Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise.
CUSTOMER EXPECTATIONS CONTINUE TO INCREASE
Consumers’ demand for faster delivery times is affecting everything from food and more. It’s forcing shippers to try to keep up to retain their customers. The so-called “Amazon effect” is alive and well as the world of e-commerce and faster shipping times grows.
HIGHER DEMAND
As noted, e-commerce was growing steadily before, but the pandemic only accelerated it. Consumers are ordering and demanding more, delivered right to their doors. Demand is far exceeding supply, and this trend is expected to continue through the rest of 2021.
TIGHTER CAPACITY
With such overwhelming demand, there are not enough drivers or labor to keep up. These shortages are impacting every mode of transportation, causing delays, and raising rates higher.
RISING COSTS FOR DRIVERS
Drivers are also experiencing rising costs. Fuel prices have been increasing, and tolls have risen; truck costs and insurance prices have gone up. All these costs roll over to their trucking rates.
STEPS TO REDUCE TRANSPORTATION COSTS
There are several ways to reduce transportation costs while also improving your logistics.
CUT YOUR MANUAL PROCESSES
Chances are, you’ve been doing things the same way for so long, you don’t even recognize there’s a better way to do them. We’ve all been there, and while change can be challenging, noticing you have room for improvement is the first step towards growth.
Automating your manual processes will help reduce your transportation costs. With automation, you’ll streamline your operations, allowing for better management while creating and improving your efficiencies. As a result, you’ll end up saving time and becoming available for your more important tasks.
USE ANALYTICS TO IMPROVE OPERATIONS
Reviewing historical records and analyzing trends can help uncover any slow processes and extra costs. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not.
TRY DIFFERENT MODES OF TRANSPORTATION
Trying different modes of transportation could help you offset your costs. Shipping freight by sea could be less expensive than by air. Intermodal transportation is another option that you may not have considered. Shipping intermodal is usually less expensive than trucking. Even using a combination of the two could reduce your cost. Keep an eye on the transportation costs for different modes and don’t be afraid to make the switch. Being more flexible with your freight shipping could give you some financial benefits.
SEE IF YOU CAN CONSOLIDATE
Are you making the most of every truck moving your freight? Your shipment planning team should analyze current and future orders to build your shipments in the most cost-effective manner possible. Less-than-truckload (LTL) shipments are cost-effective for smaller weights. Yet, consolidating your shipments into one full truckload could have you seeing savings. With consolidation, there will be fewer trips, meaning you’ll see lower rates on one bulk shipment versus many small ones.
BID MORE OFTEN
To offset tight capacity and rising shipping costs, shippers should go out to bid for new transportation contracts more than annually. This allows you to find the best rates and avoid potential disruptions from transportation shortages.
GAIN CONTROL OF YOUR VENDOR-ROUTED OR CUSTOMER-ROUTED SHIPMENTS
Depending on your customer, sometimes you have your hands tied when it comes to logistics. For example, you may be required to use their specific providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don’t you wonder about the potential for savings if you controlled this section of your business?
By leveraging ALL of your volume, you could qualify for some decent savings with LTL and truckload providers. Additionally, you’ll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. You can better measure service performance and rates to ensure your best interests are being cared for when the ball is in your court.
INCREASE VISIBILITY
Without visibility, costs can begin to sneak in like stealth monsters that eat away at your bottom line. True visibility is using a best-in-class TMS that enables you to see all your transportation network. You can track and manage control over your products, see service disruptions or shipment delays in real-time, find optimized routes, and work with the best carriers. You’ll not only reduce your costs but increase your service levels and improve your relationships with all stakeholders.
PREPARE AHEAD
The more time you have before your shipment gives you more options in carrier selections and the chance to find a decent rate. Or look into another mode, as mentioned earlier. It also gives your provider more time to prepare themselves and let you know of any upcoming circumstances that may increase your logistics costs, giving you more time to consider making any changes. It also helps you alleviate delays and missed deadlines.
CONSIDER WAREHOUSING SERVICES
If you do a lot of shipping to and from the same lane, especially if it’s over a long distance, it may be a good idea to warehouse your goods closer to your customers so you can reduce those long-haul transportation costs.
BECOME A SHIPPER OF CHOICE
It’s never a bad thing to be a shipper of choice. Carriers are in the position of choosing which shippers they want to work with. Those shippers who provide better experiences for them can not only reap the benefits of better rates but higher service levels and fewer claims. To become a shipper that carriers will want to work with, it’s important that you run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations, and pay your carriers quickly.
GET DATA-DRIVEN INSIGHTS
Data has quickly become one of the world’s most valuable resources. With a best-in-class TMS and proper reporting that you can analyze, you’ll be able to better manage disruptions, reduce downtimes, and effectively plan and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are the most likely to have the capacity and ensure proper rates for shipments.
CONSIDER OUTSOURCING
In business, any activity that isn’t directly tied to securing more business deflects attention away from your goal of making a profit. That means the hours you can spend sourcing transportation providers and managing your logistics are not considered a profitable way to spend your time. By outsourcing your logistics and partnering with a third-party logistics company (3PL), like Trinity Logistics, you gain back all those hours to focus on what you do best – make a profit!
According to the 2020 Annual Third-party Logistics Study, 67 percent of shippers stated that using a 3PL contributed to reducing their overall logistics cost, while 83 percent said using a 3PL has improved their service. By utilizing Trinity Logistics, you won’t have to worry about any of the steps above because we’ll take care of them for you.
We’re listed as a Top 100 3PL by Inbound Logistics, and through our People-Centric service, we can help you find one or more customized solutions to meet your business needs. The first step to finding out exactly how we can help you reduce your transportation costs and improve your service is by having that initial conversation.
Will you choose to take that step today?
REQUEST A LOGISTICS MANAGEMENT CONSULTATION REQUEST A FREIGHT QUOTEUpdated September 16, 2021 by Christine Morris.