International%20logistics%20standards%20as%20platform%20for%20global%20economic%20integration

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International logistics standards as platform for
global economic integration
Chung Tam, CTL Chief Representative, ASTL-China
2nd Global Shipping Summit Nov., 23,
2007 Shenzhen, China
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Logistics has developed from a local industry to
a global industry. Since the opening up, the
Chinese economy has developed from a local
economy (where goods are sourced and sold
locally) to a truly global economy where raw
materials are sourced from all over the world,
processed in China then sold to consumers
domestically and overseas.
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This global economy is made possible by a very
complex global logistics network.
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Imagine if every country had different
regulations and standards
What meets the requirements of one country,
doesnt meet those in another.
This would slow these processes down, add
unnecessary cost and may even stop the flow of
goods all together.
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International logistics standards and regulations
are necessary to ensure a safe, efficient and
secure global supply chain.
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International Maritime Dangerous Goods (IMDG)
codes
The International Maritime Dangerous Goods (IMDG)
Code was developed by the International Maritime
Organization (IMO) as a uniform international
code for the transport of dangerous goods by sea
covering such matters as packing, container
traffic and stowage.
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• The IMDG Code is intended to
• Prevent injury or damage to ships and cargoes
• Prevent harm to the marine environment
• Enhance the safe transport of dangerous goods
• Facilitate the free unrestricted movement of
  such
• goods

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History of the IMDG Code

• Recognition of need - 1929 (SOLAS)
• Classification of goods - 1948 (SOLAS)
• Report on classification, listing, labeling,
  documentation -1956 (UN Expert Committee)
• Rule development -1960 (SOLAS)
• IMDG developed and recommended to governments
  -1965 (IMOs MSC)

• MARPOL 73/78 initial development - 1973
• Scope of rules developed - 1974 (SOLAS)
• Revisions and amendments - 1986, 1992, 1994(M),
  1996(M), 2000
• Mandatory - 2004
• Future - Continued revisions

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Today at least 150 countries whose combined
merchant fleets account for more than 98 of the
world's gross tonnage use the IMDG Code as a
basis for regulating sea transport of hazardous
materials. The U.S. Hazardous Materials
Regulations authorize use of the IMDG Code as a
means of compliance with the HMR when at least
one segment of transport involves sea transport.
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China has become a major exporter of dangerous
goods with the growth of its chemical and
fireworks industries. But its compliance with
international dangerous goods transportation
requirements has not kept up.
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• Problems
• Accidents
• Heavy fines
• Increased inspections
• Poor international reputation
• Increased transportation cost

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International Cooperation
U.S. China agreement on Hazardous Materials
Transportation
ASTL US Dept. of Transportation cooperation on
Hazardous Materials transportation in China
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Conclusion Conformance with IMDG codes will
serve as a platform for Chinese producers and
shippers of dangerous goods to grow and develop a
global market. To become a true global logistics
player, you need to comply with global
requirements. By following International
Logistics standards and regulation, you will gain
a business competitive advantage not a cost
disadvantage.
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Thank you !