252373 Basics of Cargo Care v 2021

Package Labeling Example: Plastic drum

SHIPPER: UN1999 Tars, liquid, net
quantity 3L
Universal Chemicals
11 12 1 16 Anvil Rd
10 2 Isando
Gauteng, South
93 Africa

CONSIGNEE:

Bauer GmBH
513 Ludwigstrasse
6546 Frankfurt,

Germany

8 4 U 1H2/Y/4.0/50/08/ZA/NPK231
76 5 U

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Package Labeling Example: More than 1 Hazard

UN2604 Boron trifluoride diethyl etherateU
net quantity 2.0 L
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SHIPPER:
Universal Chemicals
16 Anvil Rd
Isando
Gauteng, South Africa

CONSIGNEE:
Bauer GmBH
513 Ludwigstrasse
6546 Frankfurt, Germany

U 4C2/X50/S/O8/ZA/NCP653

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Package Labeling Example: Packed as one

UN2210 Maneb preparation net quantity 25 kgU
UN2392 Iodopropanes net quantity 30L
UN2038 Dinitrotoluenes, liquid net quantity 30L NB: Q = 0.9
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SHIPPER:
Universal Chemicals
16 Anvil Rd
Isando
Gauteng, South Africa
CONSIGNEE:
Bauer GmBH
513 Ludwigstrasse
6546 Frankfurt, Germany

U 4C2/X100/S/O8/ZA/NCP653

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Package Labeling Example: Radioactive

SHIPPER: CONSIGNEE:

Universal Chemicals Bauer GmBH
16 Anvil Rd 513 Ludwigstrasse
Isando 6546 Frankfurt,
Gauteng, South
Africa Germany

Radioactive material, Type A TYPE A CONTENTS………C…- 1…4…………
package UN2915 ZA ACTIVITY……3…00…0…GB…q………
0.0
NAMPAK TRANSPORT INDEX

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ASSESSMENT CRITERION 2:

The concept of cargo compatibility and separation is
explained

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Guidelines

• Do not pack odour-releasing goods together with odour-absorbing goods
• Do not pack “wettening” goods together with moisture-sensitive goods
• Commodities which are incompatible when loaded:
• Perishable Cargo Handling Manual -certain horticultural products emit a

gas called ethylene
• Dry ice should not be loaded in close proximity to hatching eggs

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ASSESSMENT CRITERION 3:

Volumetric and tarre capacities of cargo carrying equipment
is explained

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Concepts

• Volumetric Capacity
• Tare weight
• Tare limits

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Ships - The Plimsoll Line

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Unit Load Devices - Air

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Rail

• Rail wagon/ container carrying capacities

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Road

• The road repair backlog is around R164 BILLION
• Overloading on South African roads is a criminal offence

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Containers

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Packaging

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Cargo handling equipment

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ASSESSMENT CRITERION 4:

The outer packaging of received cargo is examined for
damage and discrepancy

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Introduction

• Discrepancies need to be identified when the goods arrive
• All discrepancies must be recorded on the delivery document
• goods should be examined initially for external damage
• The receiver should compare the markings on the packages with those on the

transport documents
• packages should be counted to ensure that the correct quantity has been

received
• important to note on the delivery documents that the contents have not been

examined
• In the event of goods arriving damaged, delivery document must be endorsed
• external damage photographed for record purposes
• “mitigate” - “to take preventive steps” against further loss or damage

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FCL Container

• Unloading within four hours on 12 metre units and three hours on 6 metre units
• receiver must, before opening the doors, check that it is the correct container
• state of the container and the seal must be examined
• anything wrong with the seal, receiver must immediately contact the insurance

company

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Container Damage

• sides and doors of the container to be examined for holes, serious
dents or other damage

• Parties to be notified of container damage:

- importer’s insurance company,
- shipping line (or ship’s agent)
- haulier

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Containers Received by the Clearing and Forwarding
Agent

• Inspect the seal and container, and/or
• Be present when the goods are unloaded, and/or
• Arrange for an insurance surveyor to be present.

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Marine Insurance arranged by the Clearing and Forwarding Agent

• Importer expected to notify the agent of any damage
or discrepancy -

• Additional to the shipping line and haulier

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Signing the Delivery Document

• Details of any seal discrepancy or outward damage to the container
must be noted

• “claused receipt”.

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Damaged/Missing Goods

• Evidence of serious damage photographs taken and insurance surveyor
called

• No unpacking should be done except in the presence of the surveyor
• Persons responsible for unloading to check that correct quantity of goods

has been received - tally conducted against the manifest
• Check the weights of packages to verify that correct quantity has been

received
• A note of any missing goods must be made on the delivery receipt

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Pilferage

• Not always easy to detect that pilferage has occurred

• Carefully examine every package or carton when removing them from the
container

• details of pilferage must be noted on the delivery receipt

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Breakbulk Consignments

• Number of packages received must be verified against the shipping
documents (bill of lading) and/or the delivery document

• palletised goods - take extra care to ensure that the correct count is
made

• check weighing the pallet and its load
• Note details of any damage, pilferage or missing on the delivery

document
• Serious damage - insurance surveyor should be present when the

contents are unpacked

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Breakbulk Goods Landed Damaged ex-Ship

• T918
• shipping lines still employ their own tally services who check cargo
• goods may have to be re-packed or the original packaging may have to be repaired
• Inadequate packaging or packing may result in claims for damages being rejected by the insurers
• Importers must be advised by clearing agents when breakbulk goods have been landed damaged
• If damaged packaging has not been repaired prior to delivery of the goods to the importer, a note

of the damage should still be made on the delivery document on receipt of the goods

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Goods Missing when Breakbulk Shipments Landed ex-Ship

• Short-shipped goods - goods which were left behind
• Goods which have been landed at the wrong port are said to be short-

landed
• If breakbulk goods are short-landed or short-shipped this would be

established at the port of discharge by the importer’s agent
• Part or all of a breakbulk consignment is missing at the time of discharge

from the ship, details recorded on the SA port operations form T918
• At the time the consignment is collected, details of the missing packages

will be noted on the landing, delivery and forwarding order

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Goods Missing when Shipments Unpacked at a Container Depot

• Missing packages are detected by the depot operator
by comparing the depot’s container out-turn report
with the container manifest.

• Details of the missing goods are recorded on a
document called the Container Contents Discrepancy
Report. (CCDR)

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Airfreight Shipments

• In airline bond stores airline pallets and ULD’s are unpacked and goods stacked ready
• warehouse personnel to check that all the cargo has arrived
• Details of any shortages, damages and any other discrepancies are recorded on a discrepancy

report
• seriously damaged goods should not be uplifted from the bond store until a proper inspection

carried out by insurance surveyor
• Damaged or pilfered goods - airline to check weigh the goods and to record weight on the

discrepancy report
• Shortages may arise when goods are short-shipped
• On the receipt of goods, importer must ensure that the delivery note is properly endorsed with

the details of the damage, pilferage or shortages

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ASSESSMENT CRITERION 5:

Appropriate action is taken in respect of damaged or
discrepant cargo

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Lost, Damaged, and
Discrepant Cargo Procedures

Submission and Handling of Claims

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Proforma Claims

• First steps to be taken when there is damage or loss to goods is to submit a written proforma
claim

• Notice that damage or loss has occurred
• Notice of intention to submit a fully documented and priced claim
• Proforma claim is to ensure that a claim is not time barred
• When the party responsible for the loss or damage can be readily identified, a proforma claim is

lodged with that party
• When it is not clear which party is responsible for the loss or damage, proforma claims should be

lodged with all the parties involved in the transport or handling of the goods

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Detailed Priced Claim

• Monetary amount expected by the importer or exporter is set out in a
detailed “priced claim”.

• Gives all the necessary financial details to support the claim, including costs
and selling prices.

• Attached to a priced claim will be supporting documents such as
commercial invoices and transport documents.

• On the strength of a priced claim that payment will be made to the insured
under the rights of subrogation.

• Insured party (i.e. ,The cargo owner, importer, consignee etc) who is
responsible for the preparation of a priced claim.

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Transnet Freight Rail claims

• Obtain what is known as an “incident” number, arrange for an inspection of the
goods.

• Transnet Freight Rail will want to inspect the goods if the value exceeds R25 000.
• Claims on Transnet Freight Rail must be submitted on a completed Freight

Protection Facility Claim Form.

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Goods short-supplied or short-shipped

• Claims should be lodged against the supplier
• An FCL container arriving with its seal intact but with goods

missing, one could safely conclude that the missing goods were
never loaded- proforma and price claims would be lodged
against the supplier

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Tracing of cargo

• When goods have gone missing, every effort should be made to
recover the goods

• Firstly determine where the goods are
• Arrange for their delivery to correct destination
• Sometimes possible to determine where goods have gone missing

from the shipping documents
• Submission of a proforma claim on “lost” goods is an indirect

request to the recipient of the claim to search for the goods

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Records of claims

• resolution of cargo claims can take a long time

• Delays - poor administration,

o repudiations,
o reluctance to accept liability,
o disputes,
o time taken to trace goods,
o difficulties in assessing the cost of damage, human factors of mistakes and inefficiency

• major disputes - parties will resort to litigation

• personnel quite often change and one cannot then rely on people’s
memories

• documentary records of claims to be of the highest standard - a standard
which will stand up to scrutiny in a court of law

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Records of claims (contd.)

• Separate file for each claim
• Endorsements on documents must be legible, including dates and

signatures
• The contents should be filed neatly and in date order
• Communications should noted on the file with the date, time and the

person responsible
• Claims files should be housed in a safe place

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Finalisation of claims

A claim is finalised when:

o It has been settled in full or in an amount deemed acceptable to the insured
o legal action has been pursued to finality by the insurer on the insured’s behalf
o a responsible person within the insured’s organisation decides that no fruitful

result will be obtained

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Finalisation of claims summary

• Persons responsible must see to it that:
• A proforma claim has been issued on all relevant parties
• All relevant documents are collected
• Tracers on lost goods are initiated and followed up
• Proper and regular contact is maintained with the insured to ensure that a priced

claim is produced and submitted without delay
• Queries originating from the insurance company or insurance broker are dealt

with promptly and efficiently
• Regular communication with the insurance broker and insurance company is

maintained

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ASSESSMENT CRITERION 6:

The consequences of not following procedures when
packing and stowing cargo is explained

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Consequences

• Improper stowage can cause damage to any cargo
• Leakage is most likely to occur in cargoes of barrelled or drummed goods
• Improper stowage of heavy and light cargo together causes crushing and damage to contents
• If packages are stowed loosely, chafing damage is likely
• Road transport, traffic penalties for overloading is payable
• Aircraft/vessel penalties are payable for overloading, not labelling and marking properly
• When goods are not properly labelled (e.g., Markings showing “this way up”) it can lead to

damage
• If weights of cargo are under declared it may lead to the misdistribution of weight, unsafe

travelling conditions, possible permanent damage to vehicles and huge claims

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SPECIFIC OUTCOME 4:

Explain the cargo care requirements for
specialised cargo

ASSESSMENT CRITERION 1:
The reason for an international code for the packing, handling, stowing

and labelling of dangerous goods is explained in the context of the
international movement of goods

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Transport of dangerous goods by air

• Dangerous Goods Regulations (DGR) of the the International Air
Transport Association (IATA)

• Technical Instructions of the International Civil Aviation Organization
(ICAO)

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Transport of dangerous goods by rail, road and sea:

• International Maritime Dangerous Goods Code (IMDG
Code) of the International Maritime Organisation
(IMO)

• Several SANS codes are applicable to Dangerous
Goods from the South African Bureau of Standards
(SABS), e.g. on classification, packaging, transporting
and placarding requirements for vehicles transporting
dangerous goods

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ASSESSMENT CRITERION 2:

The labelling requirements of dangerous goods are
explained

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Marking and labelling airfreight – see previous lecture

• "Hazard" labels
• Handling labels

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Marking, Labelling and Placarding – Road and Rail

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ASSESSMENT CRITERION 3:

The specific separation requirements of dangerous goods
are explained

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Use of cargo compatibility chart

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