Using CTU Code “boosts supply chain safety and savings”

News

The Cargo Integrity Group cites a report by researchers at Italy’s Politecnico di Torino, which concludes that CTU Code adopters have achieved improved safety and reputation and more cost-effective supply chain coordination

As previously discussed, the CIG is made up of seven industry associations to raise awareness and encourage use of the 2014 IMO/ILO/UN-ECE Code of Practice for Packing of Cargo Transport Units (CTU Code), for which ICHCA acted as Secretariat. CIG’s members are ICHCA, BIC, COA, FIATA, GSF, TT Club and WSC.

 

Benefits of using the Code reported by the university in Turin are:

  • Improved safety, reputation and supply chain coordination
  • Decreased cargo damage and environmental impact, and reduced operational inefficiencies
  • Those using the CTU Code incurred no extra costs in employees, contractors, or vehicles
  • Any increase in loading and waiting times were typically offset by CTU Code-related efficiencies overall
  • Annual costs and penalties reduced from €670,000 pre-implementation of the Code to €13,000 post-implementation
  • Extra costs as a percentage of revenue reduced from 37% to 10%

In the words of the report’s authors (Bruno, et al.), “The application of the CTU Code to cargo loading and transportation processes can increase the safety level of transport activities, and also improve business processes and competitiveness. The results show that the use of the CTU Code provides an increase in safety with a drastic reduction of loading accidents and damage to goods, as well as important benefits in terms of costs, improved efficiency, corporate image and reduced environmental impact.” 

 

CIG continues its efforts to underline the positive effects of the widespread use of guidance in the CTU Code. The Group is dedicated to improving the safety, security and environmental performance throughout the logistics supply chain. In particular, it is concerned to promote safe methods to those responsible for the packing of cargoes in containers, securing them and accurately declaring them.

 

Welcoming the Politecnico survey, the CEO of ICHCA, Richard Steele, said: “As far as we are aware, this is the first example of publicly available empirical evidence about the use of the CTU Code made by forwarders, shippers and others responsible for safe packing. Notwithstanding the regional focus of this particular survey, we believe the results to be genuinely encouraging. They show that good operational management, efficiency and safety are partners, not opposites.”

 

To facilitate a greater degree of understanding and wider use of what is a lengthy and complex document, CIG previously published a ‘Quick Guide’ to the CTU Code, together with an editable and saveable Checklist of actions and responsibilities for the guidance of those undertaking the packing of cargoes in containers. These materials are now available in all six of the UN’s official languages, and in Italian.

Politecnico di Torino – study extract

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Using CTU Code “boosts supply chain safety and savings” ‣ WorldCargo News

Using CTU Code “boosts supply chain safety and savings”

News

The Cargo Integrity Group cites a report by researchers at Italy’s Politecnico di Torino, which concludes that CTU Code adopters have achieved improved safety and reputation and more cost-effective supply chain coordination

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