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

The International Union of Marine Insurance (IUMI) has released a guidance paper highlighting the risks posed by non-compliant wood packaging material (WPM) in international cargo shipments. ISPM 15, an international standard governing the use of WPM, requires marked and treated wood packaging such as pallets and crates. While ISPM 15 is primarily a plant-health measure, enforcement can lead to significant operational and financial consequences for the marine cargo sector.

When non-compliant WPM is detected, authorities can detain shipments, require emergency treatment or fumigation, order repacking or destruction of the packaging, or even require the consignment to be returned to its origin. IUMI Secretary General Lars Lange emphasizes that ISPM 15 non-compliance is usually not about physical cargo damage, but rather the disruption and costs that arise when authorities intervene.

Although ISPM 15 has been in place for over 20 years, many cargoes still use unmarked or incorrectly marked WPM. The USA accounts for the majority of notifications, but ISPM 15 is adopted by all major trading economies, and rejections due to infringements occur worldwide. Fraud is also a concern, as WPM marking is easy to forge, and authorities may treat marked WPM as fraudulent if infested.

IUMI recommends sourcing WPM from registered treatment providers, conducting visual checks before loading, verifying IPPC marks, and retaining treatment certificates. They also advise applying these checks to all shipments, regardless of destination. The guidance emphasizes that while shippers and packers are typically responsible for compliant WPM, insurers should be aware of the complexities of the supply chain and the potential for operational disruption. Simple preventive measures can significantly reduce the likelihood of cargo rejections.