IUMI highlights avoidable disruption and costs from non-compliant wood packaging

The International Union of Marine Insurance (IUMI) has issued a guidance paper highlighting the risks associated with non-compliant wood packaging material (WPM) in international cargo shipments. ISPM 15, the international standard for phytosanitary measures, governs the use of wood packaging material like pallets, crates, and dunnage.

While ISPM 15 is primarily a plant-health measure, its enforcement can lead to significant operational and financial consequences for the marine cargo sector. Non-compliant WPM may result in cargo detainment, emergency treatment or fumigation, repacking, destruction of packaging, or return of the consignment to its origin. The main concern for marine insurers is that cargo typically remains undamaged; the issue lies in the disruption and costs caused by regulatory intervention.

ISPM 15 has been in place for over two decades, yet many cargoes continue to be shipped using WPM that is either unmarked or incorrectly marked. While the USA has the majority of notifications, ISPM 15 is adopted by all major trading economies. Rejections due to infringements occur in many countries worldwide. Therefore, ISPM 15 should be universally applied and not limited to regions with stringent enforcement.

WPM marking is not difficult to forge; when authorities find a marked WPM infested, some may treat the marking as fraudulent rather than non-compliant. Some jurisdictions, notably the USA, have imposed large civil penalties and felony convictions for such cases.

To mitigate risks, IUMI recommends sourcing WPM from appropriately registered treatment providers, conducting visual checks before loading, verifying the presence and legibility of International Plant Protection Convention (IPPC) marks, and retaining treatment certificates, batch records, and supplier registration evidence. Insurers should recognize WPM sourcing and documentation practices when assessing cargo risk, acknowledging that documentation alone cannot replace effective operational controls.

Pascal Dubois, Chair of IUMI’s Loss Prevention Committee, emphasizes that in most cases, ISPM 15 non-compliance is an operational issue, such as detention, fumigation, repacking, and delays, rather than physical damage to the cargo. Simple preventive measures, like using registered treatment providers and verifying IPPC marks before loading, can significantly reduce the likelihood of regulatory rejections.