We’ve talked a lot about supply chain disruption in the last year, but one factor that often gets overlooked in conversations about risk management is the importance of cargo integrity. 

In simple terms, cargo integrity refers to the rules of best practice that should be applied to cargo throughout the supply chain. It covers everything from properly packing a unit to choosing the appropriate mode of transport for the load. The responsibility for cargo integrity is usually shared by shippers, 3PLs, logistics providers and carriers, but it’s integral to the secure and timely delivery of cargo in the intermodal supply chain.

With that in mind, let’s unpack the key elements of cargo integrity – and why it’s so important – in more detail. 

The key components of cargo integrity. 

Firstly, it’s worth taking a comprehensive look at just how multi-layered cargo integrity is. Done right, the process should start with establishing the right mode of transport for the freight. This generally depends on factors like budget, pick-up / drop-off destinations, customs rules, the nature of the products (e.g. perishables) and the desired transit time. Regulatory and legal factors also play a part — for instance, if the cargo is due to travel through a region with restrictions on specific goods, an alternative route by a different mode of transport might be necessary.

Once the most fitting mode of transport has been identified, it’s time to choose the correct unit for the type of cargo in question and the different phases of its journey. You’ll need to make sure the unit isn’t contaminated by traces of previous cargo, and that it’s adequately protected from possible contamination by plants, animals or insects while in transit. 

Next, there’s the highly-skilled process of unit packing. Cargo needs to be optimally packed and positioned with sustainable load distribution achieved by strapping and bracing. This is to guarantee the unit can be stowed securely for different stages in its intermodal journey, be it by road, air or sea. Today, you can even outsource unit packing to a transportation damage management system like Ship It Pro, which uses AI tested load patterns and modeled simulations to map out optimal load configurations. 

As well as packaging selection and unit packing, thorough cargo integrity also involves the correct classification of the goods in transit. That means ensuring these goods are appropriately marked and that any required documentation is accompanying them – especially if the goods could be considered high risk. This even extends to the advanced communication of information about the contents of the load, which should be sent to all the relevant parties to facilitate its safe handling.

Why is cargo integrity so important? 

Interestingly, there are no official regulations for cargo integrity, but there is the CTU Code – also known as the Code of Practice for Packing of Cargo Transport Units. This code was jointly developed by the International Maritime Organization (IMO), the International Labour Organization (ILO) and the United Nations Economic Commission for Europe (UNECE). It offers detailed guidance on “all aspects of loading and securing cargo in containers and other intermodal transport” – but it’s not compulsory. Instead, it’s described as a “non-mandatory global code of practice.” 

The biggest advantage of following this code and taking the measures outlined above is that the cargo is far more likely to reach its destination in saleable, usable condition. It not only protects the value of the individual cargo but also the cargo surrounding it in the unit. When everything is correctly packed, secured, and documented, the risk of accidental cargo loss (as well as the inevitable supply chain disruption that follows) is reduced. With that risk reduced, shippers are less likely to claim on their cargo insurance. 

Solid cargo integrity practices can also greatly reduce the number of injuries sustained during the loading and unloading process. It can even help to prevent large-scale incidents like warehouse fires, which could easily be caused by hazardous or flammable materials that aren’t safely packed.

When it comes to loss prevention, cargo integrity and freight insurance go hand-in-hand. 

Following cargo integrity guidance minimizes risk in the first place, but ensuring your cargo is properly covered can save you from dealing with the financial burden and reputational damage that might result from lost or damaged loads. 

Loadsure offers a diverse catalog of innovative cargo insurance solutions, including everything from affordable annualized policies to dynamic, on-demand cargo insurance. Plus, we pride ourselves on providing expedited settlements, so insureds can get back to business as soon as possible in the event of a claim. Combined with observing the CTU code, choosing the right freight insurance for your cargo forms an integral part of your loss prevention plan.