Evolving challenges of handling dangerous goods via air

There is no end to the ever-increasing demand of e-commerce in air freight, and with workers at the U.S. East Coast ports “temporarily” agreeing to come back to work after a three-day strike demanding better wages, the focus is on air cargo with limited capacity and rising rates.

It is in this context that the handling of dangerous goods (DG) comes into spotlight, and lithium batteries are the de-facto power source for almost all things electronics..and most of them are now transported via air cargo.

With more than one million dangerous goods shipments annually with an expected growth of nearly five percent for the next five years, regulations, training and sustainable practices become important for all the players in the value chain - shippers, airlines, airport operators, handlers and forwarders.

Paul Cheng, Executive Director, Operations, Hong Kong Air Cargo Terminals (Hactl) says: "Each year, International Air Transport Association (IATA) makes significant changes to its Dangerous Goods Regulations (DGR), embracing the latest guidelines on handling dangerous goods including lithium battery shipments. Local regulatory bodies also regularly share updated advice and best practice on dangerous goods handling.

"Hactl follows both IATA and local authorities’ guidelines to ensure full compliance with the latest regulations. Hactl has also adopted the Competency-Based Training and Assessment (CBTA) approach for staff training to ensure they are fully equipped with the necessary knowledge and competency for specific job functions such as dangerous goods handling."

We are very confident that any possible incident would be much easier to control within the new zone rather than if lithium battery cargo were stored in the main body of the terminal.
Paul Cheng, Hong Kong Air Cargo Terminals (Hactl)

The regulatory landscape for dangerous goods has evolved significantly due to increased global trade, technological advancements and safety concerns, adds Brandon Fried, Executive Director, Airforwarders Association. "Lithium battery regulations have become particularly stringent due to their growing prevalence in consumer electronics and electric vehicles. Regulatory bodies have intensified oversight of hazardous materials, leading to more frequent inspections and enforcement. New technologies, such as drones and autonomous vehicles, have necessitated updated regulations."

Regulations surrounding dangerous goods are constantly evolving, and the latest 2025 IATA DGR introduces significant updates aimed at ensuring compliance and efficiency in air cargo operations, according to Salil Chari, Senior Vice President, Marketing and Customer Experience, Asia Pacific, FedEx. "Notable changes include new UN numbers, shipping names and packing instructions for sodium-ion batteries, along with expanded definitions for explosives, flammable solids, and fire suppression devices.

"At FedEx, we have established a global dangerous goods training taskforce that diligently monitors these regulations. This team ensures that all training materials and operational procedures remain current. Our proactive approach allows our customers to benefit from our expertise in navigating the complexities of dangerous goods regulations, ensuring that their shipments arrive safely and on time. With over 40 years of experience in shipping dangerous goods, FedEx employs a team of highly trained safety advisors equipped to handle all aspects of compliance, from packaging to documentation."

A view backed by Cathay Cargo where safety is always the top priority for transporting dangerous goods. “Our close collaboration with IATA, government authorities, cargo terminal operators, ground handling agents and customers has enabled us to manage expectations, maintain or surpass industry standards, and enhance Cathay Cargo’s agility in ensuring safe transport of dangerous goods,” says Tom Owen, Cathay Cargo Director.

"Cathay Cargo’s approach to DG handling involves a comprehensive review of our processes and incorporating the relevant changes and feedback into our manuals, DG acceptance checklists and other documents. Also, we have notified our entire network of the addendum and changes to the IATA DGR. All amendments and updates made are aimed at improving the safety of transporting dangerous goods."

In August 2024, we implemented enhanced lithium battery screening (ELBS). Our objective is to identify and minimise mis-declared lithium battery shipments, particularly in e-commerce and co-loading scenarios.
Tom Owen, Cathay Cargo

SATS and IATA, for example, signed a three-year agreement to expand the rollout and implementation of DG AutoCheck compliance solution for the safe handling and transportation of dangerous goods shipments at key stations across its international network. The expanded agreement will facilitate the adoption of DG AutoCheck at both existing and new stations across the combined SATS and WFS network, which now operates over 215 stations in 27 countries.

Using the DG AutoCheck, IATA says cargo operations teams can:

*Process a shipment in as little as five minutes;

*Automatically generate a detailed report of compliance issues together with IATA DGR references;

*Make physical inspections easier with the package preview that shows required marks, labels and packaging requirements; and

*Display all applicable state or operator variations with a simple click of a button.

Henry Low, Chief Operating Officer and CEO-designate, Singapore Hub, SATS says: “SATS is proud to have signed the first global agreement with IATA to implement DG AutoCheck across our network as part of our commitment to the highest standards of aviation safety and security. We commend IATA for this initiative which is helping to maximise safety and improve efficiency by ensuring clear compliance and visibility of dangerous goods shipments moving by air cargo."

Focus on Li-Batt
Hactl recently opened a dedicated storage zone for lithium batteries equipped with CO2 fire suppression systems and fire-proof partitions to segregate battery cargo from other shipments. The new zone will be indicated by LED signage across its multiple floor levels to ensure all battery cargo is correctly stored and retrieval is more efficient.

"The new zone is fully operational but it is, of course, a preventative measure – so, unless there is an actual incident, it is not possible to fully evaluate its effectiveness," says Cheng. "We have had no incident which has called upon the zone’s special features, and we hope that will continue to be the case. However, we are very confident that any possible incident would be much easier to control within the new zone rather than if lithium battery cargo were stored in the main body of the terminal. So, we consider this a wise move. It speaks about Hactl policy of anticipating challenges and taking precautionary measures rather than waiting until an issue occurs. We consider that a responsible way of conducting our business, given the many potential issues of handling hazardous cargo."

Fried adds that industry stakeholders have implemented various measures to manage the increased volume of lithium battery shipments. "These include improved packing standards, enhanced screening procedures (including canine detection) and collaborative efforts among industry associations such as the Airforwarders Association, IATA, the Portable Rechargeable Battery Association (PRBA) and regulatory bodies."

With decades of experience in moving dangerous goods, including lithium batteries, to 80 destinations worldwide, we have developed expertise in this field. We leverage this knowledge to assist our customers in expanding their businesses across borders.
Salil Chari, FedEx

Cathay Cargo has adopted a proactive approach by implementing the IATA Cargo Agent Operation Programme (CAOP) to conduct risk profiling on cargo agents. "More frequent target screenings are applied to goods carried by moderate- and high-risk agents, including those shipping select categories of e-commerce or using routes considered to have higher geographical risk," says Owen.

"In August 2024, we implemented enhanced lithium battery screening (ELBS). Our objective is to identify and minimise mis-declared lithium battery shipments, particularly in e-commerce and co-loading scenarios where UN3480 (PI965) shipments are mis-declared as UN3481 (PI966/PI967). We actively collaborate with our cargo agents and business partners to contribute to the lithium battery library, which is regularly shared with CLG/HAFFA. This collaborative effort ensures that the industry stays well-informed of high-energy lithium batteries and their screening images."

In recent years, there has been significant growth in shipments of lithium batteries, especially from China to Europe, adds Chari of FedEx. "For instance, in the first four months of 2024, Asia, Europe and North America emerged as the top three export regions for China's lithium-ion batteries, with shipments to the U.K. increasing by 50 percent year-on-year.

"With an expansive network and differentiated freight solutions, FedEx is well equipped to meet customer demand for efficiently handling significant freight volumes. To facilitate easier shipping, we have developed an online lithium battery tool specifically for our APAC customers. This user-friendly tool allows customers in the region to answer just four simple questions to receive immediate guidance on the correct classification, packing, marking, labelling and documentation for their lithium battery shipments. By providing instant answers, we empower our customers to prepare their shipments accurately and confidently, reducing the need for additional inquiries to our customer service team. With decades of experience in moving dangerous goods, including lithium batteries, to 80 destinations worldwide, we have developed expertise in this field. We leverage this knowledge to assist our customers in expanding their businesses across borders."

Companies are strengthening their training programmes to cover a wider variety of dangerous goods, ensuring that every category is managed with the same diligence.
Vivek Pandit, Kale Logistics

Packaging for lithium batteries must meet rigorous performance-based standards to prevent short circuits and accidental activation, adds Vivek Pandit, Vice President, Air Cargo Solutions, Kale Logistics. "This often involves using UN-certified packaging. When lithium batteries are consolidated into overpacks, the outer packaging must also be appropriately labelled to ensure handlers are aware of the contents. Shippers, freight forwarders, ground handling staff and airline personnel are required to undergo specialised training on the handling and transportation of lithium batteries, focusing on hazard recognition, emergency response and compliance with regulations. Airlines are integrating lithium battery transportation safety into their overall safety management systems, ensuring comprehensive risk assessments and mitigation strategies are in place."

Importance of training
Cheng highlights that Hactl has performed its own in-house training for specialist areas such as DGR for decades. "We are an accredited IATA DGR trainer, and we take in and certify trainees from other companies as well as training our own staff. Training content is constantly reviewed in line with evolving regulations, best practices and available technology as well as changes in industry trends. Hactl was consulted in the structure and scope of IATA’s CEIV Lithium batteries standard, was one of its early adopters, and is audited annually for compliance."

Cathay Cargo is exploring the concept of game-based learning by developing a DG acceptance game. "This innovative approach has been shown to significantly deepen and intuitively improve trainees' understanding. By integrating game-based elements, we aim to make the learning process more engaging and effective, ensuring that staff are well-versed in dangerous goods handling," says Owen.

Chari of FedEx adds: "In our commitment to safely shipping dangerous goods, we prioritise continuous training for our team members. Central to this effort is our DG Acceptance training, a comprehensive five-day, in-person instructor-led course. We believe that investing sufficient time and resources in training is essential for staying ahead.

"We have a wide network of training instructors across the Asia Pacific markets where dangerous goods services are offered, ensuring that training is both accessible and tailored to local market needs. Our training programmes are designed based on operational requirements, allowing us to respond effectively to regulatory changes and meet growing customer demands."

While there has been progress in training, challenges remain, according to Fried of Airforwarders Association. "Online and blended learning options have made training more accessible but some employees still struggle with awareness, information retention and resistance to change. Members of the Airforwarders Association who maintain IATA accreditation are required to be trained in hazardous materials awareness and acceptance procedures."

Online and blended learning options have made training more accessible but some employees still struggle with awareness, information retention and resistance to change.
Brandon Fried, Airforwarders Association

Tech and dangerous goods - good combo?
Digitalisation initiatives significantly streamline the process of checking the latest regulations for dangerous goods in the IATA DGR Manual, minimising any risk of human error in documentation checking, says Cheng of Hactl. "The latest advances in Generative AI further enhance this, by speeding up searches for the most recent handling guidelines for special cargo, enhancing efficiency and performance."

Fried adds: "Technology has played a crucial role in improving the safety and efficiency of handling dangerous goods. IoT devices enable real-time monitoring, artificial intelligence (AI) analyses historical data for risk prediction, and advanced imaging technologies automate inspections."

The AI-enabled FedEx Surround dashboard plays a critical role in exception handling, particularly when managing dangerous goods, says Chari. "It can detect anomalies in the transit process such as package delays caused by external factors, and automatically notify our teams to take corrective action. This functionality not only mitigates risks but also ensures compliance with safety regulations."

Owen says: “At Cathay Cargo Terminal, we have already started using AI technology to identify potential lithium battery shipments during the x-ray screening process. While x-ray screening relies on the training and experience of the screener, the technology enhances the process by prompting alerts whenever it detects lithium battery shipments, thereby facilitating the interception of mis-declared and undeclared lithium battery shipments. We expect all x-ray machines to be equipped with this technology in 2025."

Technology certainly plays a crucial role in ensuring the safe handling of dangerous goods, adds Pandit. "For example, Kale Logistics Solutions has developed a DG cargo module within its Cargo Community System (CCS). This module digitises the entire DG export process in line with the International Maritime Dangerous Goods (IMDG) Code and International Maritime Organisation (IMO) recommendations. The system integrates key stakeholders and automates compliance checks, improving safety, efficiency and regulatory adherence. AI-powered tools automatically update compliance checklists, eliminating the risk of human error while machine learning algorithms manage vast amounts of documentation to ensure dangerous goods are correctly labelled, categorised and tracked throughout the supply chain."

Sustainability should be focus area
The transportation of dangerous goods can have significant environmental impacts, according to Fried. "Measures to address this include using eco-friendly packaging, optimising transportation routes, and developing robust emergency response plans."

The main area of crossover here, according to Cheng, would be how any chemical spill was handled. "As Hactl staff are fully trained to IATA DGR standards and our procedures comply with all regulation and best practice, and have been honed over many years of experience in handling large volumes of DGR, we can reconcile any potential conflict of interests. It’s also worth mentioning that sustainability is front and centre at Hactl, guided by our Sustainability Strategy Framework which covers every action and decision in the company."

On sustainability, Chari lists out FedEx's priorities: Training and awareness, efficient packing and transportation, sustainable technologies, regulatory compliance and sustainability goals. "We are committed to achieving carbon neutrality by 2040, driving progress towards enhancing safety in handling dangerous goods while supporting our environmental responsibilities."

Li-Batt at the cost of others?
Absolutely not, exclaims Cheng. "Hactl has an exhaustive, many-faceted regime that applies to all DGR shipments. We have even taken steps to educate shippers and agents in the correct procedures, packing, labelling and declaration. We are responsible for all cargo being loaded onto our many customers’ flights, and the correct handling and presentation of DGR are paramount to aviation safety. We could not take DGR handling more seriously than we do, and we have many measures in place to ensure only safe cargo is flown. I would like to think that all other handlers take this subject as seriously as we do. It is fundamental to our role in the supply chain."

While Cathay Cargo places significant focus on the safe handling of lithium batteries, its commitment to the safe transport of all dangerous goods remains paramount. Owen says: "Our comprehensive guidelines aim at ensuring that shippers and operational staff accurately declare and inspect shipments at the time of reservation and acceptance. This process includes verifying reservation details, packaging, labels and markings.

"Our Case Management System ensures that all cases undergo a comprehensive investigation and are reported to the relevant authorities as required. Corrective and preventive actions are formulated for lessons learnt, and best practices are shared across our network. An internal database has also been established for continuous improvement.

"We have shared our best practices of lithium battery handling and enhanced lithium battery library with our Cargo Agent Operation Programme (CAOP) agents, demonstrating our joint commitment to the safe transport of lithium battery shipments."

Chari reiterates that FedEx has established robust processes to identify all dangerous goods within its network, not just lithium battery shipments. "Every fully regulated dangerous good, including lithium batteries, undergoes a comprehensive inspection by a certified dangerous goods specialist before being accepted into our system. Shipments that do not comply with regulatory standards are returned to the customer, accompanied by a detailed inspection checklist outlining the reasons for the return."

While lithium batteries are receiving significant attention due to their rapid increase in air cargo shipments, the focus has raised overall awareness of the risks associated with all dangerous goods, adds Pandit of Kale Logistics. "Regulatory bodies such as IATA and IMO are continually updating safety guidelines for a broad range of hazardous materials, ensuring that no category escapes scrutiny. Furthermore, companies are strengthening their training programmes to cover a wider variety of dangerous goods, ensuring that every category is managed with the same diligence, irrespective of the spotlight on lithium batteries."

Fried sounds a note of caution. 'While the focus on lithium batteries is understandable, it is essential to ensure that other dangerous goods are not overlooked. Comprehensive screening procedures, increased vigilance, and enhanced training are crucial to prevent undetected hazardous materials."