The International Maritime Dangerous Goods (IMDG) Code was developed as a uniform international code for the transport of dangerous goods by sea covering such matters as packing, container traffic and stowage, with particular reference to the segregation of incompatible substances.
The Carriage of dangerous goods and marine pollutants in sea-going ships is respectively regulated in the International Convention for the Safety of the Life at Sea (SOLAS) and the International Convention for the Prevention of pollution from Ships (MARPOL).
Relevant parts of both SOLAS and MARPOL have been worked out in great detail and are included in the International Maritime Dangerous Goods (IMDG) Code, thus making this Code the legal instrument for maritime transport of dangerous goods and marine pollutants. As of 1st January 2004, the IMDG Code will become a mandatory requirement.
For all modes of transport (sea, air, rail, road and inland waterways) the classification (grouping) of dangerous goods, by type of risk involved, has been drawn up by the UNITED NATIONS Committee of Experts on the Transport of Dangerous Goods (UN).
1.1: Explosives with a mass explosion hazard
Consists of explosives that have a mass explosion hazard. A mass explosion is one which affects almost the entire load instantaneously.
1.2: Explosives with a severe projection hazard
Consists of explosives that have a projection hazard but not a mass explosion hazard.
1.3: Explosives with a fire
Consists of explosives that have a fire hazard and either a minor blast hazard or a minor projection hazard or both but not a mass explosion hazard.
1.4: Minor fire or projection hazard
Consists of explosives that present a minor explosion hazard. The explosive effects are largely confined to the package and no projection of fragments of appreciable size or range is to be expected. An external fire must not cause virtually instantaneous explosion of almost the entire contents of the package.
1.5: An insensitive substance with a mass explosion hazard
Consists of very insensitive explosives with a mass explosion hazard (explosion similar to 1.1). This division is comprised of substances which have a mass explosion hazard but are so insensitive that there is very little probability of initiation or of transition from burning to detonation under normal conditions of transport.
1.6: Extremely insensitive articles
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
2.1: Flammable Gas
Gases which ignite on contact with an ignition source, such as acetylene and hydrogen. Flammable gas gas means any material which is ignitable at 101.3 kPa (14.7 psi) when in a mixture of 13 percent or less by volume with air, or has a flammable range at 101.3 kPa (14.7 psi) with air of at least 12 percent regardless of the lower limit.
2.2: Non-Flammable Gases
Gases which are neither flammable nor poisonous. Includes the cryogenic gases/liquids (temperatures of below -100°C) used for cryopreservation and rocket fuels. This division includes compressed gas, liquefied gas, pressurized cryogenic gas, compressed gas in solution, asphyxiant gas and oxidizing gas. A non-flammable, nonpoisonous compressed gas means any material which exerts in the packaging an absolute pressure of 280 kPa (40.6 psia) or greater at 20°C (68°F), and does not meet the definition of Division 2.1 or 2.3.
2.3: Poisonous Gases
Gases liable to cause death or serious injury to human health if inhaled. Gas poisonous by inhalation means a material which is a gas at 20°C or less and a pressure of 101.3 kPa (a material which has a boiling point of 20°C or less at 101.3kPa (14.7 psi)) which is known to be so toxic to humans as to pose a hazard to health during transportation, or in the absence f adequate data on human toxicity, is presumed to be toxic to humans because when tested on laboratory animals it has an LC50 value of not more than 5000 ml/m3.
A flammable liquid means a liquid which may catch fire easily or any mixture having one or more components whith any flash point. As example: acetone, diesel, gasoline, kerosene, oil etc. There is strongly recomended for transportation at or above its flash point in a bulk packaging. There are three main groups of flammable liquid:
Low flash point – liquids with flash point below -18°C
Intermediate flash point – liquids with flash point from -18°C. up to +23°C
High flash point group – liquids with flash point from +23°C
4.1: Flammable solids
Solid substances that are easily ignited. Self-reactive materials, which are thermally unstable and that can undergo a strongly exothermic decomposition even without participation of air. Readily combustible solids that can cause a fire through friction and show a burning rate faster than 2.2 mm (0.087 inches) per second, or metal powders that can be ignited and react over the whole length of a sample in 10 minutes or less.
4.2: Spontaneously combustible solids
Solid substances that ignite spontaneously. Spontaneously combustible material is a pyrophoric material, which is a liquid or solid that can ignite within five minutes after coming in contact with air or a self-heating material that when in contact with air and without an energy supply is liable to self-heat.
4.3: Dangerous when wet
Solid substances that emit a flammable gas when wet. Dangerous when wet material is a material that when it makes contact with water is liable to become spontaneously flammable or give off flammable or toxic gas at a rate greater than 1 L per kilogram of the material per hour.
5.1: Oxidizing agent
Oxidizing agent means a material that may, generally by yielding oxygen, cause or enhance the combustion of other materials.
5.2: Organic peroxide oxidizing agent
Organic peroxide means any organic compound containing oxygen in the bivalent structure and which may be considered a derivative of hydrogen peroxide, where one or more of the hydrogen atoms have been replaced by organic radicals.
6.1: Poison
Toxic substances which are able to cause death or serious hazard to humans health during transportation.
6.2: Biohazard
Infectious Substance material is known to contain or suspected of containing a pathogen. Infectious substances are substances which are known or are reasonably expected to contain pathogens. Pathogens are defined as micro-organisms (including bacteria, viruses, rickettsiae, parasites, fungi) and other agents such as prions, which can cause disease in humans or animals.
Radioactive
Radioactive substances comprise substances or a combination of substances which emit ionizing radiation
Corrosive
Corrosive materials means a liquid or solid that causes full thickness destruction of human skin at the site of contact within a specified period of time. A liquid that has a severe corrosion rate on steel or aluminum is also a corrosive material.
Miscellaneous
A material which presents a hazard during transportation but which does not meet the definition of any other hazard class. This class includes: any material which has an anesthetic, noxious or other similar property which could cause extreme annoyance or discomfort to a flight crew member so as to prevent the correct performance of assigned duties or material for an elevated temperature material, a hazardous substance, a hazardous waste, or a marine pollutant.
created by the International Chamber of Commerce (ICC) in 1936, used universally, defining the key parts of freight forwarding.
Ex Works (EXW) is the term used to describe the delivery of goods to an available designation at their place of business, normally in their factory, offices or warehouse.
The seller does not need to then load items onto a truck or ship, and the remainder of the shipment is the responsibility of the buyer (e.g. overseas shipment and customs duty).
EXW is therefore more favourable to the seller as they do not need to worry about the freight once it has left their premises.
Unlike EXW, Free Carrier pushes the responsibility of delivering the goods to the buyers nominated premises onto the seller, so they have to organise shipping and various export documents.
“Carriage Paid To”, or CPT, goes into a little more detail than FCA, specifying that the seller bears the costs for transporting the goods to the nominated place that the buyer requests.
Carriage Paid To can be used in any transport mode, and the risk transfers from the seller to the buyer as soon as the goods reach the nominated destination and the carrier takes charge of these.
“Carriage and Insurance Paid to”, or CPI, specifies that the seller needs to pay the costs of transport as well as the insurance cover for the goods in transit (by any transport mode) to the destination named by the buyer.
In terms of level of insurance, the cover level can be minimum, defined by the ICC’s INCO Terms, and should they request a higher level of insurance, this would need to be agreed on the contract.
The risk is then transferred from the seller onto the buyer once the goods reach the nominated point.
“Delivered at Terminal”, or DAT, means that all of the costs up until the point of delivery to a nominated terminal (e.g. a port or a quay) need to be covered. As in the table above, the buyer would need to arrange Duties and Taxes and clearing goods through customs. With DAT, the seller is also responsible for unloading the goods at the terminal.
It’s advisable to ensure the terminal, hub or port is clearly specified, given the size of many terminals.
“Delivered at Place”, or DAP, can also be used for any mode of transport. An extension of DAT, the seller delivers the goods at a named destination, specified by the buyer, although under the ICC rules, the unloading of the goods are the responsibility of the buyer.
The buyer is also required to sort out duties and taxes, as well as clearing the goods through customs.
“Delivered Duty Paid”, or DPP, can be used for any mode of transport. In this case, the seller is responsible for delivering the goods at a place specified by the buyer, up to the point of unloading. Unlike DAP rules, the seller is also required to pay for all Duties and Taxes, clear the goods for import and pay relevant taxes.
DPP is often complex as shipment of goods into a market are often best left to local experts (e.g. the in-market buyer), so it’s a less commonly used INCO Term.
“Free Alongside Ship”, or FAS, is used in situations when the seller can place the goods alongside other non-containerised goods (e.g. on a vessel or barge).
The seller might do this if they have access to sea or inland waterway routes and want to place the goods en route to the buyer alongside other goods on the ship. It’s not recommended for goods that can be placed in a container (more on this below, see FCA).
The risk of transporting the goods ‘alongside ship’ move from the seller to the buyer once the goods are delivered to a terminal or port and unloaded.
“Free On Board”, or FOB, occurs when the seller delivers the goods to the port of shipment, at which then it becomes the responsibility of the buyer once unloaded onto a vessel. If the goods are damaged when on board the vessel, it’s the responsibility of the buyer.
“Cost and Freight”, or CFR, incurs more risk and responsibility onto the seller. The seller delivers the goods up and takes all responsibility and cost right up until the ship has docked at the end point and the goods have been unloaded. The seller will also cover the cost of insurance at atleast the minimum level.
“Cost, Insurance and Freight”, also known as CIF, is also restricted to sea or inland waterway modes of transport. In this case, the seller insures the goods transported up until they arrive at the port, but it becomes the responsibility of the buyer (in terms of risk and insurance).
DDU Incoterm, which is short for “delivered duty unpaid,” is an international commerce term (incoterm) which means that the seller will deliver the goods as soon as they are made available at an agreed-upon location in the country to which they are imported.
Unlike DDP (delivery duty paid), where the seller takes the most responsibility for delivery costs all the way up to the consignee’s doorstep, DDU requires the consignee to take the responsibility of costs, and oftentimes physical delivery, once they have signed for the shipment.