The International Union of Marine Insurance (IUMI) has highlighted the risks associated with the use of non-standard wooden packaging materials (WPM) in the international transport of goods. This topic has been explored in a new report that addresses the insurance consequences of non-compliance with international standards, particularly the phytosanitary standard ISPM 15.
Consequences of Non-Compliance
Lars Lange, the Secretary General of IUMI, explains that if non-standard WPM is identified, authorities may stop shipments and take emergency measures such as treatment or fumigation, repackaging, or even destruction of the packaging. These disruptions can lead to significant costs for the maritime transport industry, even if the shipment itself is not damaged. In other words, non-compliance with ISPM 15 is more about operational disruptions and costs arising from authorities' interventions than physical damage to the cargo.
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Challenges in the Industry
Despite ISPM 15 being in effect for over 20 years, a significant portion of shipments are still transported with non-standard WPM. While the United States has the highest number of notifications, this standard has been accepted by all major trading economies worldwide, and violations occur in various countries. Therefore, IUMI recommends that this standard should be uniformly enforced across all jurisdictions.
The report also points to the risks associated with WPM marking fraud. Lange states that WPM marking is easily forged, and authorities may consider contaminated WPM as fraudulent if identified. This issue may lead to heavy fines and even criminal convictions in some jurisdictions, particularly in the United States.
IUMI recommends identifying WPM and documentation methods as part of understanding cargo risk and emphasizes that documentation cannot replace effective operational controls. Ultimately, simple and low-cost preventive measures such as using reputable suppliers and verifying IPPC marks before loading can significantly reduce the likelihood of shipment rejections.
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