W H I T E P A P E R

U N D E R S TA N D I N G H A Z M AT

T R A N S P O RTAT I O N M A N A G E M E N T

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Transportation Management

W hether the goal is to prevent accidents,

preserve human lives, minimize adverse
consequences, or ensure timely emergency
Sometimes a company’s hazmat shipping
papers contain incomplete or inaccurate
information, meaning that there’s potential that
response, the rules and regulations outlined by shipments are non-compliant with hazardous
laws governing the transportation of hazardous materials regulations. These discrepancies
materials (hazmat) are complex and apply may range from minor issues such as no
directly to shippers and carriers. That means, package type or unit of measure listed for each
whether shipping hazmat by highway, rail, air or hazmat entry on the shipping paper, up to more
water, any company whose goods fall into the concerning violations such as incorrect or no
hazmat category must adhere to these rules shipping descriptions listed, missing or incorrect
or risk fines, penalties, bad publicity and other hazmat placards offered and improper load
potential exposure. securement—all of which are violations of U.S.
Department of Transportation (DOT) regulations.

Moreover, violations listing both the shipper of

goods and the carrier are recorded within the
DOT database. To further complicate things, not
all hazardous materials regulations are congruent
or aligned with one another. For example,
according to the National Conference of State
Legislatures (NCSL), state laws address some
or all of the following key benchmarks within the
hazmat supply chain:

• Registration and permit programs

• Routing requirements
• Notification
• Financial liability
• Emergency response planning and training
• Inspection
• Enforcement
• Shipment restrictions

Hazmat transportation’s multifaceted nature

makes logistics particularly complicated,
especially when carriers don’t realize that
they’re transporting such goods. “Even though
a manufacturer may be an expert at producing
goods,” says Mike Cobb, Landstar’s vice
president of safety and compliance, “it may not
be as well-versed in the intricacies of transporting
those materials, including unknowingly offering
carriers non-compliant hazmat shipments.”

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What are Hazardous Materials?

Any company working with hazardous materials of
any type must understand the nature of hazardous
materials and the steps that must be taken to ship
such goods in the safest possible manner.

By definition, a hazardous material is a

substance or material that the Secretary of
Transportation has determined is “capable of
posing an unreasonable risk to health, safety,
and property when transported in commerce
and has been designated as hazardous under
the federal hazardous materials transportation
law.” The term includes substances,
hazardous waste, marine pollutants, elevated
temperature materials, and other materials
designated as hazardous.
“By having a hazmat program in
It’s important to note that there’s a distinction place, a company limits its risk
between the obvious hazardous materials and potential liability.”
(liquid gasoline, ammunition, explosives) and —Wes Pace, Landstar’s director of hazardous
less obvious hazmat, like in the case of Class materials compliance
9 commodities (lithium batteries, dry ice)
that don’t require the transport vehicle to be “While the process for regulation changes is
placarded for domestic transport. lengthy,” Pace explains, “it provides ample
time—for the most part—for businesses to
When a company understands whether or ensure they can and do have measures in
not its goods meet the definition of hazardous place to meet the regulation changes and
materials, it can then initiate, use and requirements.”
continuously monitor the appropriate hazmat
management programs. “By having a hazmat Most recently, for example, classification
program in place,” says Wes Pace, Landstar’s revisions have been made for the transportation
director of hazardous materials compliance, “a of lithium batteries—a point made very public
company limits its risk and potential liability.” in connection with the controversy over the
Samsung Note 7. “Due to the safety concerns
An established hazmat management program also associated with transporting lithium batteries,
helps companies adjust when there are changes particularly by air,” says Pace, “the government
to state or federal regulations. For example, the has made ongoing revisions to the regulations
program manager should review Federal Register on lithium batteries to ensure safe transport and
notices available online on a daily basis to identify to protect the public.”
any changes or proposed changes that could or
would impact the company’s business practices.

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Measuring the Risks

The risks of shipping hazardous materials
without following the proper procedures are
many, and they include:

RISK FOR MANUFACTURERS/SHIPPERS:

1 T
 he principal risk when transporting
hazardous materials is always the potential of
personal injury and property damage due to
mishandling;
2 R
 egulatory risks include exposure to potential
civil penalties imposed by the US DOT, such
as by the Pipeline and Hazardous Materials
Safety Administration (PHMSA);
3 Individual state violations can also occur; and
4B
 ased on incident circumstances, other
government agencies such as Occupational RISK TO THE GENERAL PUBLIC: The general
Safety and Health Administration (OSHA) public could encounter risk associated with
and the Environmental Protection Agency an incident/accident involving a shipment of
(EPA) can be involved. hazardous materials if in close proximity to a
release of certain hazardous commodities.
Other risks include the potential for negative
impact viewed by the general public, potential While there are many risks associated with
loss of authority to ship hazardous materials, mishandling hazardous materials in the supply
and potential loss of business. The DOT has chain, the biggest challenge is that shippers
established guidelines for minimum and maximum may be unknowingly offering such materials
civil penalties of not more than $78,376 for each to carriers. There are nine different hazard
violation, except for the maximum civil penalty of classes/divisions of hazardous materials. All
$182,877 if the violation results in death, serious hazard classes pose equal risk of fine, penalty
illness, or severe injury to any person or substantial and violation, from paint that falls under Class 3
destruction of property. (Individual states can and Flammable Liquids to Helium and Oxygen that
often impose fines, which vary by state.) fall under Class 2.2 Non-Flammable Gas.

RISK FOR CARRIERS: All of the above, plus “Most Class 2.2 Non-Flammable Gas meets the
Compliance, Safety, Accountability (CSA) definition of a hazardous material because the
points, which are points assigned to a carrier commodity is under pressure,” Pace explains. “By
by DOT based on violations received during the same token, some hazard classes pose severe
roadside inspections. risk as is the case with some Class 1 Explosives,
Class 2.3 Poisonous Gasses, and Class 6.1
RISK FOR TRUCK OWNER-OPERATORS AND Poisonous Liquids that pose an inhalation hazard,
DRIVERS: Operators face the same monetary where there is no room for error.”
penalties as shippers and carriers, plus potential
of suspension from transporting hazardous
materials or loss of truck lease or employment.

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visit and discussion with a carrier’s key hazmat

professionals will provide insight into their
processes around training, monitoring and
communication.

When evaluating which hazmat carrier to work

with, shippers should verify whether the carrier is:
1 Registered and permitted to transport hazmat;
2 Financially stable; and
3P
 roperly insured with appropriate levels
and coverages applicable to hazmat
transportation.

And, look into whether the hazmat carrier has:

1 An understanding of which classes of hazmat
they are able to transport;
2D
 edicated and experienced personnel to
monitor regulatory changes and assist a
shipper with hazmat questions;
3 The ability and willingness to review and
understand a shipper’s product, shipping
papers, applicable placarding and first-
In many cases, it’s the companies that don’t responder requirements; and
regularly handle hazmat that find themselves 4 Capacity management capabilities to ensure
operating on the wrong side of state and compatibility between shipper, commodity
federal regulations. “Even companies that offer and capacity.
hazmat to carriers for transport and are on top
of their game don’t always operate in a safe Using carriers that scrutinize the hazmat
and compliant manner,” Pace points out. “As shipments they accept can and does catch
well, those companies that rarely handle hazmat shipment discrepancies that could otherwise
may not be up-to-date with the ever-changing result in unsafe situations or violations at
regulations and wind up offering non-compliant roadside DOT inspections. Such carriers
shipments to carriers.” minimize potential risk and liability of non-
compliant shipments to the company.
It’s important to understand that regulations
require that a company shipping hazardous Risk at Shipper/Company Facility
materials must offer compliant shipments to For example, a company or manufacturer not
carriers and that carriers should only accept normally involved with hazmat could run into
compliant shipments. Companies should a situation where a chemical that has been
vet the hazmat carriers they utilize on items released in its facility must now be properly
ranging from financial stability to appropriate disposed of. The simple transport of those
insurance to experienced personnel and only materials to a waste facility for disposal can
use reputable carriers that are knowledgeable throw the company unwittingly into the role of
in hazardous materials. For example, a site “hazmat shipper,” literally overnight.

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To avoid potential
securement violations,
unlike in this photo,
totes must be blocked
or braced to prevent
left and right motion,
and buckles should be
placed so they do not
rub against tanks.

Another example would be a chemical— “Because those bills were computer-generated,”

hazardous or otherwise—that may have says Pace, “we knew that the issues would
exceeded its shelf life and that now has to be continue both for us and for other carriers
disposed of. “These types of situations—and the transporting the firm’s hazmat shipments.”
potential risk and liability associated with them—
can often be avoided by simply having a strong When the customer was alerted about the
Environmental Health, Safety & Security (EHS&S) problem, it questioned Landstar. After all,
program in place,” says Cobb, “or by having a the company had been “doing it this way for
knowledgeable regulatory compliance member years with no issues,” what could be wrong
on the team.” with that established process? “We explained
that federal regulations required that specific
How One Company Overcame its Hazmat information be listed with each hazmat entry on
Challenges the bill,” Pace recalls, “and that by accepting
While working with a large, national customer and moving the load, we’d also be at risk for
several years ago, Landstar discovered several violations, fines, and potential out-of-service
issues with the hazmat descriptions listed on orders during roadside DOT inspections.”
the customer’s shipping documentation.
The problem continued, namely because the
customer was reluctant to make the necessary
corrections. “Landstar capacity providers made
the necessary corrections on each shipment, to
ensure compliance,” says Pace.

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Safety Education is a Must

At Landstar, safety comes first. That’s why Landstar developed M.U.S.T.–Mutual
Understanding of Safety Together–a unique program that brings Landstar
representatives and customers together to ensure their freight is delivered safely, on time,
damage free and in a professional manner.
This program can be customized specifically to address hazardous materials, allowing a
manufacturing customer to participate in the fundamentals directly related to its business.
Through a mutual understanding of each other’s perspectives – shipper and carrier –
safety awareness can be raised to new heights.
The M.U.S.T. program includes analysis and methodologies to:
• Provide safety statistics to better evaluate carriers
• Help identify proper ways of securing freight, including hazmat
• Eliminate potential accidents at loading and unloading facilities, especially customer or
manufacturer locations
• Identify cargo damage causes
• Understand various regulations and best practices for transporting hazmat

And while this process worked, the root cause “The risk, liability and exposure
was not fixed. That was until Pace met with
are too great to not have a clear
the appropriate customer representative who
agreed to review 50+ shipping documents that
understanding of the products
had been itemized by violation and regulation they’re handling, and to ensure
reference number. Agreeing that there was a their processes are both safe and
problem that needed mitigating, the customer compliant.”
upgraded its computer system while at the —Mike Cobb, Landstar’s vice president of safety
same time informing all of its facility managers and compliance
of the need to comply with hazmat regulations.
qualified carriers with hazmat certified drivers,
“I’ll never forget coming in early one morning and ensuring that only qualified and trained
and finding all of that customers’ hazmat employees have access to any part of the
shipping descriptions correct and shipping hazmat operation are all “must haves.”
documentation compliant,” Pace recalls. “We
continue to service this customer, which now Staying abreast of changing regulations is
understands and appreciates what we’re trying equally as important, as is maintaining constant
to accomplish, which is to protect both them vigilance over exactly what is being shipped,
and us from roadside violations. Together we how it’s being shipped, and what entities are
were able to find a solution,” Pace added. handling those shipments.

Hazmat 101: Steps to Success “Any business that uses, stores, or offers
For companies that regularly or occasionally chemicals of any kind, hazardous or otherwise,
transport hazardous materials, maintaining that doesn’t have an EHS&S/regulatory person
hazmat authority (either with an EHS&S on staff should consider bringing in a consultant
expert or an outside consultant), securing to evaluate their processes and what chemicals

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are being used,” Cobb states. “The risk, liability

and exposure are too great to not have a clear
understanding of the products they’re handling,
and to ensure their processes are both safe and
compliant,” Cobb added.

When selecting a carrier, Pace says companies

should seek out one that has a hazmat
department that offers high levels of service and
either meets or exceeds safety and compliance
standards. Owner-operators leased to Landstar,
for example, are hazmat certified and Landstar
is one of the few carriers that requires all of its
owner-operators to maintain certification.

For insurance and regulatory reasons, many

general commodity carriers have moved away “By taking the few minutes required to check a
from hauling hazmat over the last few years. shipment,” says Pace, “drivers can focus more
This has opened an opportunity for Landstar, on driving and less on worrying about violations
but it also means that companies should not at roadside inspections and potential fines.”
assume that all carriers will haul hazmat or that
the carriers they select will look after their best Compliance is a team effort and customers,
interests by ensuring shipments are compliant. carriers and drivers play a major role in
ensuring hazmat shipments are transported
At Landstar, the company utilizes stringent safely and compliantly.
compliance programs that go beyond what state
and federal laws require. “Customers should About Landstar
really vet the carriers they’re working with,” Landstar is a worldwide, asset-light provider of
Pace advises. “This includes requesting proof of integrated transportation management solutions
operating authority, permits, safety rating, and that delivers safe, specialized transportation
years in business providing hazardous materials services to a broad range of customers by using
transportation services.” a network of agents, third-party capacity owners
and employees. Companies turn to us for the
Finally, it’s important to note that owner- expertise needed to transport highly regulated
operators and other drivers have a responsibility freight, complex oversize heavy haul loads,
to validate that the hazmat shipment they’re routine truckload shipments, and everything
transporting is compliant. That includes ensuring in between. For more information about how
packages are properly marked and labeled, free Landstar can help move your freight,
of damage/leaks, shipping paper documentation visit www.landstar.com.
is compliant, freight is properly secured to [email protected]
prevent relative motion, and that the transport 1-877-696-4507
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vehicle properly displays hazmat placards.