A new study has found that the use of the CTU Code can significantly improve safety, efficiency, and costs in the supply chain. The study, which was conducted by researchers at the Italian University Politecnico di Torino, surveyed shippers and forwarders who use the CTU Code and found that they have incurred no extra costs in employees, contractors, or vehicles. The study also found that any increase in loading and waiting times were typically offset by CTU Code related efficiencies overall. Annual costs and penalties were reduced from €670,000 pre-implementation of the Code to €13,000 post-implementation. Extra costs as a percentage of revenue were reduced from 37% to 10%.
The CTU Code is a set of guidelines for the safe packing of cargo transport units (CTUs), such as containers. The code was published by the International Maritime Organisation (IMO), the International Labour Organization (ILO), and the United Nations Economic Commission for Europe (UNECE).
The study's findings are significant because they show that the CTU Code can be used to improve safety and efficiency without increasing costs. This is important because the supply chain is a complex and expensive industry. In fact, the global supply chain is estimated to be worth over $20 trillion.
The Cargo Integrity Group, which is a group of seven industry bodies dedicated to container safety, is urging the wider adoption of the CTU Code. The group has published a 'Quick Guide' and an editable and saveable Checklist to help businesses implement the code.
The benefits of using the CTU Code are clear: it can improve safety, reduce cargo damage, decrease environmental impact, increase efficiency, improve corporate image, and reduce costs. Businesses in the supply chain should consider using the CTU Code to improve their operations.
In addition to the benefits listed above, the CTU Code can also help to reduce the risk of accidents. Cargo accidents can be very costly, both in terms of human life and financial loss. In fact, the cost of cargo accidents is estimated to be over $100 billion per year.
The CTU Code is a valuable tool that can help businesses to improve their operations and reduce their costs. Businesses should consider using the CTU Code to make their supply chains safer, more efficient, and more cost-effective.Return to Articles