Packaging is the most direct protection of cargo and is a critical point in cargo transportation. Especially in the maritime industry, where cargo damage risks are higher, a change of the long-standing cargo packages methods presents significant challenges to both cargo owners, carriers and the insurer.

Global freight rates have risen since 2020, buyers and sellers are looking for affordable ways to trade, it was realized that costs could be reduced by changing the cargo packing. For example, plywood and steel coils have been a major trend to adjust from containerized shipments to bulk cargoes stowed in the hold of a vessel. Containers, as the outermost layer of packaging, adequate firmness and airtightness for protecting cargoes. Analysis of plywood and steel coils cargo damage incidence in international maritime industry (2017 – 2024) reveals an upward trend from 2017 through 2023, with leveled returning to 2017 baselines in 2024 first half.

Cargo damage incidence：

• Plywood: 2017 (7.5%), 2018 (7.2%), 2019 (6.8%), 2020 (9.5%), 2021 (11.2%), 2022 (10.7%), 2023 (8.9%), 2024 first half (7.6%)

• Steel coil: 2017 (15.8%), 2018 (16.5%), 2019 (17.1%), 2020 (17.8%), 2021 (19.3%), 2022 (20.1%), 2023 (18.5%), 2024 first half (16.2%)

The downward trend in cargo damage incidence observed in H1 2024 stems from implementing optimization of shipping configurations, which are taken from accumulated operational experience over the previous three years, such as plywood shall be restricted to uppermost layer of cargo hold; the hollow part of steel coil should be braced using longitudinal timer battens. It is the effective measures taken by the related parties represented by the cargo owner and the Shipowner to deal with the challenges.

Cargo packaging in maritime industry is not always the same, and is usually influenced by policies, economic conditions, etc. When this situation arises, no party should be on the sidelines, but rather, active participation is the best strategy to meet these challenges.