The complexity of innovation
As a freight forwarder that interacts with multiple industry sectors on a daily basis, we at Canaan see both the opportunity and challenges of the move toward clean energy.
The opportunities are broadly understood, with clean energy solutions often benefiting economies, the environment, and local businesses that are hoping to serve growing demand.
For those of us in logistics, the challenge we often see is that supply-chain structures and processes aren’t always able to keep up with innovation.
Whether it’s with safety regulations, or classification, or the know-how of handling and moving new machinery or parts, each jurisdiction has to work through a range of details. Once those details are determined, there’s then the additional challenge of dealing with other jurisdictions that may have very different guidelines in place.
Case Study: Lithium Batteries
A case in point is with the transport of lithium batteries, used in electric vehicles and numerous devices. While the movement of batteries might seem straightforward, it’s anything but. Treated as dangerous goods, lithium batteries are subject to many regulations and with those regulations a lot of documentation. Countries like China are regularly amending their requirements, and as a result, some shippers easily fall behind in their understanding of what documentation is required by which countries, resulting in the possibility of delays.
Adding to this complexity is the vast difference between the handling of new and used batteries. Though, according to industry experts, many used batteries still have much more life to them and should be re-used in order to reach clean energy and zero-waste goals, some jurisdictions and companies are wary of safety hazards and so the paperwork required can become a deterrent for those wanting to buy or sell used batteries between countries.
Canaan’s Expertise
Recently, we’ve taken on the challenge of managing the import of lithium batteries for one of our key customers.
The first step – securing the necessary paperwork – is not simple; we work closely with overseas vendors who may not always be familiar with the documentation requirements. In many cases, language barriers add an extra layer of complexity to the process.
Next: ensuring compliance. Compliance doesn’t just stop with us, as we need to guarantee that our third-party vendors can safely handle the cargo as well.
Packaging plays a pivotal role in this process. Lithium batteries require specific labeling and careful handling, so being attentive to detail is critical. Unfortunately, last year saw a number of accidents at some ports due to misdeclared or improperly packaged shipments. We have to get this right not just for our clients but for the safety and smooth operation of everything along the supply chain.
At Canaan, we have experts in place who understand both the big picture and the details of shipping dangerous goods, such as batteries. We help our clients strategize and then accompany the client and the shipment around each hurdle.
If you have questions about the opportunities and challenges of the clean energy sector, we’d be glad to chat with you.
Three Preparation Tips
Here are three tips that will help you prepare for the process of shipping lithium batteries:
1. Make sure you have updated information about the requirements in all the jurisdictions your shipment will travel through — the point of origin, the destination, and every potential stop in between. Don’t assume the requirements are the same — they often aren’t.
2. Different carriers have different readiness for handling dangerous goods. Working with a freight forwarder, such as Canaan, that is in constant communication with carriers, can help you find the carrier that will provide the best chance of a smooth delivery.
3. Don’t expect an expedited shipment. Items classified as dangerous goods often require planning and documentation preparation. Plan ahead by making sure you’ve given yourself enough time to absorb the unexpected.
Need more information or have more questions? Reach out to us today! sales@canaangroup.ca
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