Dangerous Goods: What You Need To Know Presented by: Jim Powell Transportation Development Group Los Angeles, CA USA 1 (310) 302-0808 Email: jim@dgtraining.com www.dgtraining.com Who is TDG TDG was founded in February 1992 by Jim Powell. Before starting TDG, his background included the following: 1970 s Station Manager for a several all cargo airlines in BUF, BWI, and ATL ( Auto Air Cargo and Emery) 1980 s Hub Manager for AEI Airlines, Chicago 1980 s Director of Cargo, DHL Air Cargo (Hawaii) 1980 s Regional Manager Northern Air Freight (now Danzas/DHL/Airborne/AEI/MSAS/Excel et al.) 1987-1992 Skyway Freight System. Station Manager, and later Western Region Sales Manager 1-310-302-0808 1 1-310-302-0808 4 Welcome to the Seminar! I presume that Carl Strombom from the FAA will talk about the specifics of what they do in enforcing the DOT hazmat regulations for air shipments. There are some new DOT Regulations relating to air repair stations as well as Part 135 and 121 Carriers the he ll probably discuss, as well as a DOT Security Training Deadline coming up in March. 1-310-302-0808 2 Who is TDG (TDG Clients) Helped establish $500 million dollar logistics division of national trucking company Helped develop Logistics Information System training program for multi-billion dollar Asia based forwarder Set up 3 rd Party Logistics training program for MSAS and for BAX Global, trained hundreds of Global Account Managers and VPs in the US, Europe and Asia Jim Powell hired as International Product Manager to help establish help establish Arzoon.com, a global logistics software company Trained over 2,000 people in the IATA/FIATA Cargo Agent Certification Program Helped train over 150 Special Agents at FAA Academy 1-310-302-0808 5 A quick introduction Transportation Development Group is a Logistics Consulting Company based in Los Angeles and Hawaii, specializing in training and regulatory compliance TDG conducts hazmat training seminars nationwide for air, ocean, and highway transportation TDG trains forwarders and airlines in international air freight operations through the IATA/FIATA Cargo Agent certification program with CNS. 1-310-302-0808 3 Who is TDG TDG s Hazmat Clients (a short list) Large Retailers: Cartier (Hong Kong), Herbalife, Wal-Mart Government: Country of Micronesia, Bioterrorism Preparedness Dept, Maui County Police, Hawaii Police (SWAT), US Customs, FBI, State of Hawaii Health, Dept, Dept of Agriculture Aerospace: Northrop, Bombardier and many others Airlines: Continental Micronesia (CS) and many others Forwarders: Kintetsu and hundreds of others Education: University of Hawaii, California State University, California Maritime Academy and many others 1-310-302-0808 6 bonus@dgtraining.com Handouts Page 1
Reducing your Hazmat Liability Why should your company be concerned? 1-310-302-0808 7 Why should your company be concerned? Why? Public embarrassment can be more devastating than the direct fines and penalties. Everyone remembers name of the company responsible for the big oil spill in Alaska you may even remember the name of the ship! That was, what 20 years ago? Even a minor incident associated with your company can have a very negative impact 1-310-302-0808 10 Why should your company be concerned? Enforcement has never been greater Why? Environmental awareness/sensitivity is increasing globally National and international enforcement of the regulations is escalating dramatically Companies risk huge civil and criminal penalties for their employees knowing or unwittingly making mistakes with dangerous goods. 1-310-302-0808 8 The U.S. Department of Transportation Enforcement Agencies: AIR: The Federal Aviation Admin. (FAA) TRUCK: The Federal Highway Admin. (FHWA) RAIL: The Federal Railway Admin. (FRA) VESSEL: The U.S. Coast Guard (USCG-DHS) INTER- MODAL: Pipeline and Hazardous Materials Safety Administration [PHMSA] 1-310-302-0808 11 Why should your company be concerned? It could happen to YOU! Criminal Penalties can be involved Not often, but it does happen. A shipping manager in Southern California was indicted by a federal grand jury and went to jail for a hazmat shipping violation. Since September 11 th, the focus on hazmat is increasing 1-310-302-0808 9 TSA was part of DOT The Transportation Security Administration Now a separate agency under DHS Cargo security functions impact hazmat shippers TSA reports undeclared DG s to the FAA 100% inspection of cargo on passenger aircraft would result in a huge increase in violations for undeclared shipments Your shippers need to get their act together now. 1-310-302-0808 12 bonus@dgtraining.com Handouts Page 2
Who Regulates Dangerous Goods ( Hazmat ) The United Nations ICAO (Intl Civil Aviation Organization) Individual nations publish variations (additional restrictions) to the ICAO rules IMO (Intl Maritime Organization) The Airline Industry The International Air Transport Association Individual airlines also publish variations to these rules 7 Greatest HazMat Myths Packing companies are government certified to fill out the DG cert and pack the shipment. False Consumer Commodities (i.e. ORM-D) are not considered hazmat by ground transport. False Truck Drivers who haul under 1000 pounds don t have to be hazmat certified. False. 1-310-302-0808 13 1-310-302-0808 16 The Rule Books for Air Transport US Regulations 49 CFR Covers Air, Ground, Ocean and that other mode of hazmat transport (any guesses?) International Rules ICAO The International Civil Aviation Organization Rules govern int l transport These rules are found in three available books: ICAO Regulations Labelmaster Air Shipper Rules IATA Dangerous Goods Regulations 1-310-302-0808 14 7 Greatest HazMat Myths Cartage Agents don t need to inspect a shipment on pickup, if the forwarder will do that later. False Dangerous Goods Training Companies are authorize to certify students. False. HazMat/DG Instructors must have some sort of certification or experience. False 1-310-302-0808 17 Welcome to the Seminar! HazMat Myths and Misconceptions I want to use my limited time here to focus on clearing up some myths and misconceptions about hazmat that could cost you money, or worse, in your job as shippers, forwarders and carriers. The full version of this presentation can be downloaded from www.dgtraining.com 1-310-302-0808 15 7 Greatest HazMat Myths MSDS Sheets are a reliable source of HazMat Shipping Information. Well, maybe, maybe not. Myth 6 ½ if I rely on a suppliers MSDS that is wrong, I m not liable, they are. False. 1-310-302-0808 18 bonus@dgtraining.com Handouts Page 3
Myth 1 Certified DG Packers This is important for salespeople often times, they tell their clients oh well just send the shipment to a certified hazmat packer. So, myth #1: Packing companies are certified by the government to package DGs for shippers This is not true. Packing companies do not have any more or any less authority than anyone else to sign shippers declarations or pack hazmat shipments. Anyone can do it, without any approvals from anyone other than their employer, as long as they have the proper training and do it correctly! 1-310-302-0808 19 Myth 2 Certified Training Programs Here s a quick quiz Which of the following professions does NOT require government (i.e. State or Federal) Certification? Doctor Nurse Building Contractor Hairdresser HazMat Instructor 1-310-302-0808 22 Myth 1 Certified DG Packers Other concerns The inner packagings of combination packages must meet pressure, vibration and expansion criteria (for liquids), is your packing company really going to be able to verify compliance with these rules? Maybe. If you are a shipper or forwarder, make sure the shipment is fully compliant with the highway transport requirements before offering to a trucker to take to the packing company. A packing company can take advantage of some Materials of Trade Exceptions in 173.6 for ground transport if they use their own truck and not a public carrier. 1-310-302-0808 20 Myth 2 Certified Training Programs Okay, then who the heck certifies my employees for hazmat? You do. On other countries like the UK, there are government certified trainers and exams, but In the US, only the HazMat Employer can certify the employees. You can use the services of an outside consultant, such as my company to help you meet the employee certification requirements of 49 CFR but ultimately, you are the ones certifying your employees for their job function. Note: What about the FAA, don t they certify trainers? Nope. In fact the only training programs the FAA review in advance are Part 135 and 121 Air Carrier programs for training their own employees (not the public). 1-310-302-0808 23 Myth 1 Certified DG Packers So, can a shipper or a forwarder use a packing company to prepare a shipment of hazmat for an untrained shipper? Probably not. The packing company would have to go to the shipper s premises and pack it on the spot (in most cases) and no employee of the shipper could so much as touch it (i.e. load it on a truck) or prepare any bills of lading. This isn t realistic. Having said that, I did meet a company here in Miami that in fact has a mobile packing van and goes to a shipper s premises to pick up the cargo, but keep in mind, the shipper still needs to be trained. 1-310-302-0808 21 Myth 2 Certified Training Programs What if I hire a hazmat trained employee from a competitor do I have to see their certificate? Nope. The certificate alone isn t going to do you any good. You must evaluate the training they received from their previous employer, a certificate means little. You need to see the exams and the course materials or at least a syllabus. 1-310-302-0808 24 bonus@dgtraining.com Handouts Page 4
Myth 2 Certified Training Programs Let me give you an example: Acme Forwarding hires a forklift driver/warehouse employee from ABC Integrated Global Logistics, who was hazmat trained by Acme last year. Acme (the previous employer) only handled Cosmetics (Consumer Commodities) for a major retailer; ABC (the new employer) handles everything from Toxic to Explosive and Radioactive Materials. Do you think the certificate from Acme will be good enough? I doubt it. You need to be sure! 1-310-302-0808 25 Myth 2 Training Programs: Guidelines for Selecting a Trainer Course Syllabus My own recommendation for Training Times (Initial Training) DOT Ground Min 2 Days IATA Air Min 3 Days IMDG Ocean Min 2 Day Full Multimodal (Air, Ocean, Hwy) 4 to 5 days Multimodal Awareness Training 2 to 4 hours Infectious/Diagnostic or Consumer Commodity or other specialized course 4 to 8 hours. 1-310-302-0808 28 Myth 2 Certified Training Programs So what is an employer supposed to do? If you cannot get a copy of the employees training records (more than just a certificate) you ll have to retrain the employee as required for the functions that employee will perform. Let s say I start a new company. I don t know anything about hazmat training how do I know a training company is reputable? This is one of the unfortunate Catch-22 s. The DOT gives you the flexibility to decide what training is best for your employees, but how do you know what you don t know. References and some due-diligence on your part is your best bet here are some guidelines. Myth 2 Training Programs: What about Computer Based Training The same warnings apply be sure the training is appropriate for your needs. Like their classroom counterparts, online training programs are not certified by the government, it s left to the employer. Be very careful about General Awareness programs marketed as full training. 1-310-302-0808 26 1-310-302-0808 29 Myth 2 Training Programs: Guidelines for Selecting a Trainer Talk to your competitors or industry associations about a reputable trainer in your industry. Do they have any certification from industry trade groups? (i.e. IATA or other associations) Check the trainers references. Ask to see a course syllabus with instruction time detailed (see next page). Ask to audit a class. Does the course seem too good to be true? IATA Air in the morning, IMDG Ocean in the afternoon! $95.00 1-310-302-0808 27 Myth 2 Training Programs: What about Computer Based Training Last year I enrolled in an online IATA course (just to see what my competitors were doing). I paid my fee online (it was about half the cost of my own program). I logged in from a Starbucks and ordered a Latte. I finished this IATA Certification Program before I finished my Latte. My certificate that was immediately emailed to me shows my login time and finish time. About 20 minutes. My own web-based IATA training program takes from 12 to 18 hours. In fairness to IATA, the program I took was not IATA certified (they don t certify online programs), but you get the point. 1-310-302-0808 30 bonus@dgtraining.com Handouts Page 5
Myth 2 Training Programs: What about Computer Based Training Free Training from the Government! Really. This is paid by your tax dollars. You can get a full DOT HazMat training program from the DOT (PHMSA). Visit http://hazmat.dot.gov and click on the training icon. This program can be used to help meet all of your hazmat training requirements. Note, IATA (Air) and IMDG (Ocean) will require additional trainings not included on the CD. 1-310-302-0808 31 Myth 5 Small quantities of hazmat aren t regulated Many people have said oh, I m only shipping two ounces bottles of touch-up paint (or perfume, or adhesives, etc, etc) it s not hazmat as long it goes by ground transport. Wrong. ORM-D ( Other Regulated Material ) is a DOT hazmat classification. It is still subject to 49 CFR, even by ground transport. Under international rules as well as domestic, in most cases there are no lower limits for what is considered a hazardous material, only packaging and other exceptions. 1-310-302-0808 34 Myth 3 HazMat instructors must have some experience or certification. Well, actually we ve covered this. As you ve seen, you don t even have to have an instructor, let along a certified one, you can do it by computer... Nonetheless, the best training is usually done by the best instructors; computer have their place, but they're not a cure-all. Ask for references. Interview the instructor if that s appropriate. The best instructors are not necessarily the ones with the most technical knowledge. The best instructors are the best communicators. Give them an audition, put them on the spot ask them to give you a quick lesson on a topic, see how they perform. 1-310-302-0808 32 Myth 6 You can rely on the hazmat info on an MSDS (Materials Safety Data Sheet) This is a quasi-myth (is that a word?) The point is that many shippers think that the MSDS is the Gospel Truth when it comes to hazmat shipping info. Not so. An MSDS is an OSHA (not a DOT) document and in my experience is wrong or incomplete at least 10% of the time! (When it comes to hazmat shipping information.) 1-310-302-0808 35 Myth 4 On an import shipment to the US, the importer is not liable. Customs Brokers need to know about this one! Actually under 49 CFR 171.12(a) the importer is liable for certain things. The importer must inform their foreign supplier and US forwarder of the applicable DG regulations that will apply to the shipment when it reaches the US. It d be a good idea to keep a written record of this communication! For example, many foreign shippers don t know about the DOTs RQ requirement that applies to all air and ocean shipments that are listed in the appendix to 172.101 of 49 CFR (see next slide). 1-310-302-0808 33 Myth 6 1/2 If my supplier s MSDS is wrong, I m not liable Wrong. While the DOT and FAA has been known to give discounts on the fine to shippers who mistakenly rely on bad information from a vendor, there s no guarantee. For example, I had a case where a shipper got an MSDS with outdated shipping information from a supplier. They were fined $50,000 dollars and the DOT discounted it by about 25%. Make no mistake, the shipper is liable even if you buy a product from a supplier and never open the box before reshipping it. 1-310-302-0808 36 bonus@dgtraining.com Handouts Page 6
Myth 7 Cartage Agents don t need to do a full hazmat inspection This is really dangerous, both from a safety and liability standpoint. Many cartage agents pick up a shipment for a forwarder at a shipper and don t bother doing a full DG inspection they ll take it back to the forwarder and have them do it back at their office. Myth 7 Cartage Agents and a forwarder s liability A final note for forwarders It s a business reality, forwarders need to use truckers and other cartage agents, and may never physically handle the freight themselves Forwarders are typically shown as the shipper in the consignor box of the airline s master air waybill. You need to protect yourselves as much as possible. 1-310-302-0808 37 1-310-302-0808 40 Myth 7 Cartage Agents don t need to do a full hazmat inspection What s the problem? Here are a few examples: A cartage agent picks up a UN 1A1 steel drum filled with PG II Adhesives. The drum is marked with a Z (for PG III) instead of an X or Y for PG II. Assuming this error isn t discovered until the trucker brings the shipment to the forwarder and a trained employee inspects the shipment Once the forwarder discovers the error? The shipment is now stuck. It can t be moved by ground, or air, anywhere (because to do so would require the forwarder to re-offer an improper hazmat into transport). At the very least, do a highway shipment checklist before putting on a truck to an air freight or ocean forwarder. Myth 7 Cartage Agents don t need inspection more examples How can an intermediary protect themselves? I m amazed at how many forwarder/agent or franchisee agreements talk about TSA security regulations in great specificity but fail to adequately protect the parties when it comes to hazmat and DOT/FAA regulations. You need to take a careful look at your agreements with your cartage agents and other companies who operate under your name! Call us (TDG) for support. We have teamed up with a well known law firm to provide consulting and support services to forwarders and other intermediaries who need to evaluate their agreements with agents and others. 1-310-302-0808 38 1-310-302-0808 41 Myth 7 Cartage Agents don t need inspection more examples A cartage agent on the west coast is directed by their east-coast forwarder customer to pick up a piece of airline ground support equipment and tender it to an international airline for transport to Europe. The equipment listed as Engines, Internal Combustion on the DG form and master AWB which shows the east coast forwarder as the shipper on the MAWB. The cartage agent fails to notice a fire-extinguisher attached to the front of the unit. The FAA does notice it in a spotcheck of the airline and the forwarder gets a letter of investigation opened against them even though there were nowhere near the shipment!; the airline also missed it. 1-310-302-0808 39 Myth 8 I m shipping by ICAO air or IMDG ocean, I don t need the DOT rules Actually you might need them after all. DOT Lists hundreds of chemicals and substances that must be marked and documented as reportable quantities of certain hazardous substances. This information is not found in ICAO, IATA or IMDG. DOT Security Plan Requirements may apply to you and those are not found in the int l regulations. Airlines MUST follow Part 175 of 49 CFR, even if they are not US carriers! 1-310-302-0808 42 bonus@dgtraining.com Handouts Page 7
Myth 9 In the US, less than 1000 lbs of DG by ground isn t regulated I don t hear this one too often, but it comes up often enough to mention it: If I transport less than 1,000 pounds on my truck, my drivers don t need any special certification. Wrong. We ll they may not need a hazmat endorsement on a CDL but they still must be hazmat certified by their employer. Also, some items do not qualify for the 1,000 pound exception from a hazmat endorsement, such as 1 pound of Lithium, or any quantity of Radioactive Yellow III (plus several other items listed on Table 1 of the Part 172 placarding requirements in 49 CFR). Aviation is a precise business 1-310-302-0808 43 1-310-302-0808 46 Myth 10 HazMat Training Is Boring Well, quite often that s true. But it s not the training, but hazmat SHIPPING & TRANSPORT that should be boring! We should be so lucky. Too often the results are terrifying and tragic. When one hundred and ten people died 10 years ago in the ValuJet Crash, that well that speaks for itself. When a MD-11 freighter nearly burns to the ground at Stewart Airport, that may ve been a result of hazmat. When a busload of Senior Citizens burns to the ground because of a fire involving their supplemental oxygen The approach and process has to be carefully thought out 1-310-302-0808 44 1-310-302-0808 47 Myth 10 HazMat Training Is Boring Our training is not boring. Many of our competitors courses are good classes DGI, Bureau of Dangerous Goods, FedEx and others do a good job. There are lots of smaller trainers out there as well. But you or your customers need to do your due diligence in investigating a training company. How? Talk to their students, talk to the customers of these trainers talk to our customers (for a list, visit our website). If the student is not engaged in the course, you might as well toss a book at them and tell them to read it. 1-310-302-0808 45 Coordination is critical 1-310-302-0808 48 bonus@dgtraining.com Handouts Page 8
Not a business for shortcuts Spread the word to your shippers Okay, four things let your customers know that since July 1 st of last year, truckers, forwarders, brokers are now required by law to report undeclared shipments of DG s to the DOT. (This has always been true for airlines). I hope that you are going to do your part to see that it stays a safe and secure industry. Some shippers feel pressured to cut corners because of unethical competitors. Let them know that the DOT has a toll free tip line to report these violations. 1-800-467-4922 1-310-302-0808 49 1-310-302-0808 52 Safety is not just about passenger planes 1-310-302-0808 50 Facing an FAA or DOT Penalty? We can help you through the DOT Penalty Mitigation Process. If you believe you are facing an enforcement action, there are specific steps you need to take, immediately to enhance your chances, as much as possible, of reducing the proposed penalty. Call us. 1-310-302-0808 53 When you talk to your customers If there s three things you remember, tell them: Don t Guess when it comes to hazmat, and don t assume because you ve already done something one way, that that s the right way. Don t go it alone get professional help. You can go to the DOTs website at hazmat.dot.gov and look up a list of DG training companies; again they re not certified by DOT this is a good starting point. You can call us for free technical support. We don t charge anyone for answering hazmat questions. 1-310-302-0808 51 Thank you! Please call us any time with your hazmat questions or if you want help with training! 1-310-302-0808 jim@dgtraining.com 1-310-302-0808 54 bonus@dgtraining.com Handouts Page 9