A single, undeclared lithium-ion battery can bring an entire shipment to a halt – leaving the mover facing fines and unforeseen costs. Marie-Pascale Frix, FIDI Business Intelligence Manager, draws on a real case reported to FIDI to share the best practices that would have prevented it.
An air freight shipment from Vietnam to India was delayed for several weeks recently, after two undeclared lithium-ion (Li-ion) batteries were discovered during inspection on arrival. There was no signed customer declaration confirming that the shipment did not contain dangerous goods, meaning it incurred financial penalties. Storage and demurrage charges were also levied before the shipment was finally released.
When a shipment is held and costs begin to accumulate, the question of liability quickly becomes the most pressing one: who pays the fine and who bears the storage charges? The answer depends entirely on what documentation was obtained and what was communicated before the shipment left.
The issue
● No declaration of non-hazardous goods signed before shipment.
● Customer wasn’t informed of IATA restrictions on lithium-ion batteries shipped by air.
● No process in place to identify restricted items at the pre-move survey stage.
● Fine, storage costs and delay absorbed by the mover – not the customer.
Implications for FIDI Affiliates
Lithium-ion batteries are now present in almost every household goods shipment, part of many everyday items such as laptops, tools, toys, e-bikes and power banks. Regulations governing their transport by air, sea and road are becoming increasingly stringent, and are likely to continue tightening.
It is essential that FIDI Affiliates stay up to date with evolving requirements, and apply them correctly, to continue to provide professional moves. When authorities identify cargo as non-compliant, the consequences affect both the mover and the customer.
FIDI’s Professional Cooperation Guidelines (The PCGs) provide a practical compliance framework for FIDI Affiliates. While they do not contain a dedicated lithium-ion chapter, several of their obligations – covering pre-move survey, restricted and prohibited items, packing list requirements and booker responsibilities – apply directly to situations such as those in the Vietnam example. Following them rigorously is one of the most effective ways to avoid the consequences of non-compliance.
A best-practice guide
- Know before you pack – the survey is everything. It is the only time to identify, assess and manage Li-ion risk before it becomes a liability.
- Obtain a signed declaration of non-hazardous goods from every customer on every shipment, for all transport modes – this is your primary evidence of due diligence.
- Classify before you commit. Not all Li-ion batteries carry the same risk – the risk band drives decisions on packing, documentation, carrier selection and storage.
- Brief packing crews on prohibited and restricted items before packing day.
- Check the carrier before you book. Carrier policies on Li-ion are inconsistent, change without notice, and can differ between carrier and the vessel operator.
- Get the documentation right – this is the most common failure point. A shipment with correct goods and wrong paperwork will be treated as a misdeclaration.
- Inform the customer – in writing, before the move. The customer must be told in plain language which items are restricted, which are prohibited, the consequences of non-declaration and that their insurance may not cover a Li-ion incident.
- Reduce charge before storage or transport. Never store or transport items at full charge unless the manufacturer specifies otherwise.
- Manage storage as actively as transport. Li-ion fires in storage are no less likely than in transit.
- Document all customer communications on restricted items in writing; if a customer insists on including an item that cannot be accepted, and confirm your position in writing.
- Review your terms and conditions to include clear language on the customer’s dangerous goods disclosure obligation.
- Stay current – the regulatory landscape is moving fast. At minimum, check IATA DGR and IMDG updates annually.
As lithium-ion battery regulations continue to tighten worldwide, Affiliates are advised that staying informed and compliant is essential to protect themselves and their customers.
For further details:
- Consult the FIDI guidance report on lithium-ion batteries in personal effects shipments – available for download on fidi.org/publications
- Consult the FIDI Professional Cooperation Guidelines (available on FIDINET)
- Sign up to FIDI Academy webinars, including Forwarding by Air, at academy@fidi.org.
For more information, contact Marie-Pascale Frix, FIDI Business Intelligence Manager, marie-pascale.frix@fidi.org.