Case Study: Around 10 percent of container cargo worldwide comprises hazardous goods, but as the following disaster makes clear, not every shipper chooses to declare the presence of hazardous materials. The process for calculating cargo risk that is currently used by Customs and Border Protection (CBP) in the United States begins with an analysis of the cargo manifest that an ocean carrier provides about any shipment that has been accepted for transport to the United States. This cargo manifest is provided to CBP by the carrier based on information provided by a shipper about the cargo it has contracted for transport. Since the container is sealed, an ocean carrier is in no position to confirm the accuracy of the declarations it receives from its customers. Essentially, it is an honor system. Unfortunately, some shippers are not always forthcoming about the cargo they are shipping. This reality was made clear on March 21, 2006. The M/V Hyundai Fortune, a large ocean-going containership, transiting from Asia to Europe via the Suez Canal, had a catastrophic fire off the Gulf of Aden, 60 miles south of the coast of Yemen. Efforts to contain the fire failed and the crew abandoned ship. Ultimately, the ten-year old ship was sold for scrap. The cause of the fire is believed to have been a container loaded with petroleum-based cleaning fluids stowed near the engine room. The shipper failed to indicate the hazardous nature of this shipment to the Hyundai Fortune, undoubtedly to avoid the special handling fees associated with transporting hazardous materials.

Key Takeaways: Failure to comply with shipping regulations can have far-reaching and catastrophic results for people, companies, and the environment.