In this post, we will outline the critical risks that improperly identified shipments, or undeclared goods, can post to ships, their crews, and other individuals. We will also discuss how accurate declarations, along with adequate packaging and handling procedures, can contribute to safety at sea.
What Are Undeclared Goods in Shipping?
During transit, some goods pose a certain risk to human health, to property, or to the environment. Specific documentation and handling procedures are vital for managing and mitigating these risks.
But if these goods are shipped without the correct identification, documents, or packaging, then they are considered “undeclared goods”.
Essentially, an undeclared or misdeclared good is any shipment of potentially dangerous goods in which there is no visible indication that the packaging contains hazardous materials.
Examples of Common Undeclared Goods
There are nine main categories of dangerous goods, with specific handling and labelling requirements for each. If any of these are undeclared or misdeclared, they could pose serious risks to your ship or your crew:
- Explosives, such as ammunition or fireworks.
- This category incorporates both flammable and non-flammable gases, and both toxic and non-toxic gases, along with aerosols.
- Flammable liquids, such as paints and fuels.
- Flammable solids, including those which are capable of spontaneous combustion.
- Oxidising substances and organic peroxides – i.e. substances that could aid combustion in the event of a fire.
- Toxic and infectious substances, including medical waste and pesticides.
- Radioactive material.
- Corrosive substances, such as drain cleaners and other industrial cleaning agents.
- Miscellaneous dangerous goods. This category incorporates lithium batteries, which could spontaneously ignite, or even explode, if they are exposed to extreme temperatures, or if they are crushed or damaged during transit.
For more information, take a look at the HSE’s Carriage of Dangerous Goods (CDG) resources.
The Potential Risks of Undeclared Goods
Risk of Harm
If they are not correctly packaged, stored, or handled, these dangerous goods could cause:
- Fires
- Explosions
- Infections
- Illnesses
- Other damages to people, property, and the environment.
Regulatory Risks
Undeclared goods also carry a significant regulatory risk. There are severe penalties for shipping undeclared or misdeclared dangerous goods. You could face a significant fine per container, along with even heftier fines, and even prosecution, if any serious injuries or property destruction arises as a result of your actions.
Insurance Risks
There are also insurance implications. If a hazardous substance causes illness, injury, or property damage, you will naturally make a claim on your maritime insurance policy to cover the costs. But if your insurer finds that the hazardous substance was undeclared or misdeclared, then it will invalidate your insurance policy, meaning you may be liable to cover all of your costs yourself.
Managing The Risks of Undeclared Goods
You must ensure that any dangerous goods you ship are correctly documented and labelled, and you must abide by all relevant procedures for handling and storing these goods. Some goods may need to be segregated from others – certain chemical substances are reactive, for example – and you should also outline your response plan in the event of an incident.
Beyond this, it is important that you and your crew learn to identify potentially undeclared goods.
Signs You Might Have Undeclared Goods
Here are some red flags that could indicate that a crate, container, or package might actually contain something hazardous:
- Vague documentation. All shipping documents should be as accurate as possible. If the documentation says something generic, such as “parts” or “chemicals” or “samples”, then you should act to find out exactly what the shipment contains, and in what quantity.
- Packaging discrepancies. If the packaging appears rough, or damaged, or otherwise compromised, then it may suggest oversights on the part of the shipper. If they have been this shoddy in packing their goods, then who knows what else they have overlooked?
- Also look out for discrepancies in the declared contents and the weight, appearance, and labelling of the package. Odd odours may also indicate that the package may contain undeclared hazardous goods.
The Risks of Transporting Bulk Cargo
Certain bulk cargoes may also be at risk of spontaneous combustion or liquefaction, even if the materials themselves are not necessarily classed as dangerous goods.
Coal, iron ore fines, nickel ore, bauxite fines, and other bulk cargoes may pose a serious fire hazard if they are not correctly stored or managed while in transit. Documentation is important here too: Among other things, the moisture content of the bulk cargo must be certified prior to shipping, so as to ensure the correct precautions can be taken to prevent spontaneous combustion during a voyage.
What To Do If You Find Undeclared Goods In A Shipment
If you suspect there may be undeclared or misdeclared goods in a shipment, then you should refrain from taking things any further. Instead, contact the relevant authorities in your current location, who will advise you on your next steps.
You might be worrying about tight shipping deadlines, along with the added costs that delays could incur. But as we have seen, shipping undeclared goods could expose your ship, your crew, and the environment to some serious risks. You may also face some punishing fines, and you could even compromise your marine insurance.
Get The Specialist Marine Insurance You Need From James Hallam
Everard Insurance Broker is the specialist marine division of accredited Lloyd’s broker James Hallam Limited. We can help you secure comprehensive cover for shipping all kinds of dangerous goods, and we can advise you on best practice techniques for identifying and responding to potentially undeclared or misdeclared goods.
Learn more about our dedicated marine insurance services.