There have been several significant developments since the last Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) notice (UPDATE 11) in November 2023.
These have created a more complex position for shippers' interests as new global measures for the cleanliness of containers and avoidance of pest contamination reach pivotal points.
The following developments include:
1. Report of the CPM Focus Group on Sea Containers:
2. CPM Focus Group: expansion of membership and Terms of Reference
3. CPM Recommendation on Minimising the Pest Risk Associated with Sea Containers
4. Engagement with World Shipping Council (WSC)
5. Revision of the CTU Code
Below is an extract of a brief to the Global Shippers Forum (GSF) Container Cleanliness Working Group.
1. Report of the CPM Focus Group on Sea Containers
CPM established a Focus Group on Sea Containers was established in 2022 to continue the task of developing recommendations for global measures on container cleanliness and avoidance of pest contamination. The Focus Group comprises representatives of national and regional plant protection organisations and observers from the World Shipping Council (WSC) and the Container Owners Association (COA). A report of its work was submitted to the Commission for Phytosanitary Measures (CPM) in January 2024.
The report describes the progress made by Focus Group members in six separate workstreams:
a. Regulatory and non-regulatory options for risk reduction measures
b. Incorporation of phytosanitary aspects into the WCO SAFE model for Authorised Economic Operator schemes for secure supply chains
c. Incorporation of declarations of container cleanliness in the WCO Data Model for uniform customs entries, and designation of responsible party
d. Incorporation of revised pest avoidance recommendations in the CTU Code.
e. Analysis of available data from pest contamination surveys and literature reports
f. Modified design and construction of containers to minimize risks of pest contamination.
Of these the most significant development is in workstream c., where a specific proposal for a declaration by the importer that a container is free of pest contamination has been developed. The section of the report containing this proposal is reproduced at Annex A.
Elsewhere, the report applauds the significant role played by industry in proactively supporting the Focus Group's work. In particular, the principle of 'Custodial Responsibility' is highlighted as a recognition by supply chain stakeholders of their shared responsibilities to minimize pest contamination, although it is recognised that further development of the concept is required.
Reference is also made to the production by industry of awareness and guidance material, including the Container Packing Checklist and App, and guidance for consignees on the unpacking of containers, all of which have been developed or initiated by GSF. The redesign of containers to minimise voids and crevices is encouraged, as is the testing of new technology for pest detection, including cameras fitted to container cranes and chemical kits for detecting traces of pest DNA and RNA on surfaces.
2. Extension of the Focus Group and expansion of membership
None of the Focus Group's workstreams has yet reached final conclusions and the report makes two key recommendations that the term of the of the Focus Group should be extended to 2027 and that its membership should be expanded to include a further representation from industry. This is taken to mean the inclusion of shippers and parties other than shipping lines and container operators. These proposals are made in a separate paper to CPM 18 together with revised Terms of Reference for an expanded Focus Group.
3. CPM Recommendation on Minimising the Pest Risk Associated with Sea Containers
A draft CPM Recommendation on Minimising the Pest Risk Associated with Sea Containers was consulted on last year and GSF submitted a substantial response following close consultation in the CCWG and Policy Council. The revised draft submitted for adoption by CPM 18 is more concise than the original and directs its recommendations to all parties in the supply chain. Two key concerns raised by GSF have been acted on:
1. 'Vessel operators' and 'container operators' are now included in the list of parties having 'Custodial Responsibility'
2. The statement in the earlier draft that 'Packing is the most likely stage for contamination of sea containers' has been removed.
4. GSF/WSC Dialogue
Meetings between representatives of GSF and the World Shipping Council (WSC) regarding the practical implications and workings of Custodial Responsibility took place on 6 February and 18 March. The GSF delegation included representatives of the international removals sector and the food manufacturing sector, by invitation.
WSC has described the basic arrangements for 'Custodial Responsibility' in a revised edition of the Joint Industry Guidelines for the Cleaning of Containers and had invited GSF to formally endorse and co-sponsor this document ahead of the CPM 18 meeting.
Following discussions in the CCWG on 13 December and briefing meetings for delegates on 29 January and 1 February, GSF drew a clear distinction between shippers accepting responsibility for the avoidance of pest contamination of containers during packing, and the transfer of any liability for costs and consequences in the event of contamination being discovered and a container requiring de[1]contamination and cleaning. The requirement for the container operator to provide a 'clean' container was also held to be non-negotiable under any 'Custodial Responsibility' arrangements.
However, further consideration of the details of Custodial Responsibility and GSF endorsement of the Joint Guidelines was paused following the discovery of the proposals for statements of container cleanliness to be made as part of full Customs declarations by importers in the report of the CPM Focus Group. Based on the Focus Group's report, GSF's Policy Council concluded that the proposals for declarations of container cleanliness by a single entity were incompatible with the principles of shared responsibility. GSF also questioned why WSC had not thought to bring the emergence of these proposals to the attention of GSF in earlier meetings as they are self-evidently at variance with the principles of shared responsibility.
WSC insisted it was not responsible for the Customs declarations proposals by the Focus Group and that that they were complementary to the Custodial Responsibility approach. It considered that GSF's decision not to endorse the Joint Guidelines represented a loss of trust in the Dialogue process and withdrew. GSF has since confirmed to WSC it remains commitment to the principle of Custodial Responsibility and held open the resumption of discussions with WSC after the CPM 18 meeting.
5. Revision of the CTU Code
The CPM Recommendation on Minimizing the Pest Risk Associated with Sea Containers defines various terms using definitions appearing in the current edition of the CTU Code (the IMO/ILO/UNECE Code of Practice for Packing of Cargo in Cargo Transport Units). One of the workstreams reported on by the CPM Focus Group is the development of new and amended text and definitions on container cleanliness and pest contamination for incorporation into a revised edition of the CTU Code currently being led by the Inland Transport Committee of the UN Economic Commission for Europe (UNECE).
GSF has participated in meetings of the UNECE Group of Experts that considered other safety-related amendments to the CTU Code. These were adopted by the ITC at its meeting in February 2024 (ITC 86). The adopted text will now pass to the IMO and ILO for review and adoption by their respective committees, together with the revised texts on pest contamination expected to be adopted at CPM 18.
As part of the revision process the sponsoring agencies have proposed that the CTU Code is substantially restructured, and its provisions separated into two parts:
1. A Core document containing the high-level recommendations and principles of safe and clean packing of CTUs
2. A Supplementary section containing detailed advice and guidance on specific aspects of cargo packing. This part will incorporate much of the information currently published separately as Informative Material related to the CTU Code.
The restructuring of the CTU Code is intended to establish a relatively stable core section and allow the supplementary information to be more easily in line with developing practices and technology. GSF observes that such a restructuring would also be a pre-requisite for making the provisions of the CTU a mandatory requirement under international maritime conventions, although this is not, as yet a stated intention of the revision process.
The first meeting to consider the revised structure takes place on 26 April and a revised edition of the CTU Code is not expected to be published before 2027-28.