Hazardous Material Operations Will Need Improvement
Companies feel confident in their current dangerous goods (DG) / hazardous materials (hazmat) operations; however, preparing for the future will require greater investment in innovation, digitalization and packaging solutions.
This is according to the 10th annual Global Dangerous Goods Confidence Outlook.
The survey shows that most DG professionals are confident in their organizations’ ability to meet today’s compliance and safety standards (57% very confident, 35% somewhat confident). However, that confidence weakens when looking to the future.
“A decade of survey data reveals a clear pattern: investment drives both confidence and performance,” said Robert Finn, vice president, Labelmaster, in a statement. “Organizations that prioritize DG compliance and innovation gain measurable operational and financial advantages while those that don’t risk falling behind.”
Key Findings
- Confidence in current DG operations: 92% of respondents are confident their company can maintain safe and compliant operations today.
- Investment is increasing: 43% reported higher DG investment over the past five years, compared to just 4% reporting a decrease.
- Future readiness is a concern: 33% believe their current investment will meet future needs (up from 18% five years ago), yet 57% feel operations are adequate only for today.
- Confidence in supply chain partners is low: Just 22% are confident in upstream partners and 19% in downstream partners.
Innovation Driving Change
Where will companies invest moving forward? These two key areas:
- Smarter packaging: 60% of companies plan to invest in smarter packaging over the next two years, with 26% calling it a “major focus.” Packaging issues, such as leaks and damaged containers, have impacted more than half of organizations, with 21% reporting moderate to severe consequences.
“Hazmat packaging technology has advanced significantly in recent years, yet many companies still rely on outdated or inferior solutions,” said John Jansen, head of global marketing, CurTec International, in a statement. “Even in highly regulated markets like pharma and fine chemicals, the pressure to cut costs can lead to short-sighted decisions – choosing cheaper containers that may save a few dollars upfront but risk costly consequences such as leaks, product damage or regulatory non-compliance.”
Digital transformation: Companies continue to digitalize DG processes, including digital regulatory publications (57%), e-documentation (51%) and virtual training (50%). Nearly half (43%) now use digital traceability or smart sensors to monitor DG shipments in transit.
Over the next five years, DG professionals are most excited about advances in battery technology (56%), improved data connectivity (51%), smarter warehouse tools (51%), digital access to regulations and product data (41%) and sustainable packaging (38%).
Raising The Safety Bar in Dangerous Goods Operations
The survey highlights that those companies treating DG management as a business priority – and investing accordingly – achieve operational and financial advantages. Top-performing organizations excel in two areas:
Data Quality & Shipping Management
- Ensure consistency and compliance across locations
- Automate processes and reduce manual touchpoints
- Optimize costs and delivery speed
Modern Packaging
- Use slimmer, lightweight materials to cut costs and save space
- Employ advanced materials for rigorous testing
- Simplify compliance and reduce labor costs
- Make sustainable packaging choices with measurable ROI
According to Brendan Sullivan, global head of cargo, IATA, “Increased implementation of data-driven processes, along with sustainably sourced and modern packaging, will enable a more efficient, transparent and compliant supply chain.”