Inbound Logistics | September 2023

planning should minimize total system risk and avoid disproportionately exposing specic populations to hazmat-related risks, Ke explains. WHAT’S NEXT: TECHNOLOGY AND RESILIENCE Technology and digitalization are affecting the logistics of hazardous material shipments, along with most other business functions. Analytical tools powered by articial intelligence, real-time monitoring systems, and blockchain-enabled traceability solutions can boost visibility and risk-management capabilities across hazmat supply chains, Ke says. At the same time, organizations need to manage the cybersecurity and data-governance issues that these technologies can bring. Looking ahead, the most resilient hazmat logistics operations will combine operational discipline, a strong culture of safety, advanced digital capabilities, integrated emergency-response planning, transportation resilience, and equitable risk-management strategies, Ke says. And as transportation systems become more connected and complex, the ability to proactively manage uncertainty, disruptions, and societal concerns will become more critical.

compliance issue is now a routine operational requirement,” Knight says. Moreover, the regulations governing lithium batteries may change yet again. The Committee of Experts on the Transport of Dangerous Goods, a United Nations group, has proposed breaking miscellaneous hazardous materials into four groups. They are: 1) Environmentally hazardous

substances: These generally are substances that are not caustic or corrosive, but are typically

These can include tunnel restrictions, designated hazmat corridors, and time-of- day limitations. “While these regulations improve public safety, they also increase operational complexity,” she adds. Risk equity is another emerging concern. This refers to the equitable distribution of transportation risk across communities and regions. Hazmat trafc has often been concentrated along transportation corridors that are near economically disadvantaged communities, as these routes may appear operationally convenient or lower cost. However, it’s increasingly recognized that transportation Digital tools like this shipping app from ShipMonk help ensure hazmat shipments are properly labeled. Technology solutions also provide traceability, visibility, and risk- management capabilities.

transported in bulk, and could ruin plant or animal life if dumped in a body of water. 2) Energy storage devices, like lithium ion batteries 3) Low-hazard energetics, such as airbags 4) Miscellaneous products The good news? The change should reduce the regulatory burden on many products, Paquet says. EMERGING CONCERNS Some government entities are implementing routing restrictions and risk-management policies for transporting hazardous materials, particularly in urban areas and around sensitive infrastructure, Ke says.

VETTING LOGISTICS PROVIDERS

Because hazmat shippers retain responsibility for their products, they need to carefully evaluate the logistics providers and carriers with whom they partner. While cost remains important, it shouldn’t be the only consideration, especially with dangerous goods. The consequences of an accident or regulatory violation will quickly dwarf any other savings. Strong logistics partners for hazmat supply chains possess the following attributes: 1. Safety-First Culture Safety should be incorporated directly into operations. At ShipMonk, for example, its warehouses are built to certied re protection standards for ammable and combustible liquids. The company has also earned the highest level of BRCGS Storage and Distribution certication, an independently audited benchmark that covers product storage and handling. Technology also helps ShipMonk enhance operational safety. For instance, once employees designate

A strong safety culture is crucial when selecting a logistics provider for hazmat shipments.

a stockkeeping unit (SKU) as a hazardous material, software ensures that orders containing that SKU can only ship by an approved method. The system also automatically ags these

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