INSIGHT: Mis-declaring dangerous goods is never the answer

SHIPPING line ANL has announced a peak season hazardous surcharge (PSHS) for all hazardous cargo loading from Melbourne and Sydney to New Zealand, effective 15 October.

The charge is USD 150 per TEU from each port and applies to all cargo classified as dangerous goods under the IMDG Code. The carrier cites increased operational complexity, stowage constraints and additional handling costs during peak season.

Nobody enjoys a new surcharge, particularly in a tight peak season. But the commercial response to a hazardous cargo surcharge is not, and should never be, to simply stop declaring the cargo’s dangerous goods status.

The risk lands on people

Undeclared or mis-packed dangerous goods put crew, stevedores, truck drivers and emergency responders at risk. When a container is dropped or starts leaking, the people attending need to know what they are dealing with.

Without that information, a manageable incident can become a fatal one. Ships, terminals and the marine environment all share that exposure, and Australia and New Zealand are rightly proud of their commitment to protecting that environment.

The rules exist for good reason

The IMDG Code, given force through SOLAS Chapter VII, is the foundation of dangerous goods carriage by sea. In Australia it is implemented through Marine Order 41, and New Zealand has its own maritime rules for dangerous goods carriage. Accurate verified gross mass under SOLAS Chapter VI, and Marine Order 42 in Australia, matter just as much, because stowage planning and stack safety depend on honest data.

The commercial exposure is worse than the surcharge

Misdeclaration rarely saves money. When a leaking container is attended and there is concern that its contents are undeclared hazardous cargo, a port shutdown can follow, and shutdown fees can start at $140,000. That is before any clean-up, delay or third-party claims, and it dwarfs any surcharge saved.

The liability picture is no better. Under the Hague-Visby Rules, a carrier may land, destroy or render harmless dangerous goods shipped without knowledge of their nature, and the shipper can be liable for resulting loss and damage. Misdeclaration can also complicate insurance recovery and create difficult questions about contribution if a general average event occurs. Add potential regulatory penalties and reputational damage, and USD 150 per TEU looks modest.

• Classify cargo correctly against the IMDG Code before booking.
• Pack, mark, label and placard to the Code’s requirements.
• Complete the dangerous goods declaration accurately and ensure it travels with the cargo.
• Check carrier and port requirements early, so new charges are priced into quotes and contracts rather than discovered at invoice.
• Challenge the surcharge commercially if you must, through negotiation, contract terms and consolidating bookings, not by hiding the cargo.

Forwarders, who sit between shippers and carriers, carry particular responsibility. If a customer asks you to “just leave off the DG”, that is a request to expose everyone downstream to risk, and to expose your own business to liability.

Help is available

If you are unsure about your obligations, training in dangerous goods classification, packing and declaration is available, and it is a small investment against the risks above. Legal advice is equally accessible. Getting it early helps you understand how an improperly declared cargo can affect insurance cover, claim recovery and liability, before an incident forces the question.

The bottom line

Surcharges come and go with the market. A fire, a chemical release or an injured worker does not. Pack, label and declare your cargo properly at every stage. It is the price of being a trusted member of the international maritime, trade and supply chain community.