Analyzing whether a shipping container qualifies as packaging under Incoterms 2020 and the responsibilities of sellers and CTU operators.

Introduction

Excluding shipper-owned containers.

For all Incoterms, the seller is responsible for packaging. For full container loads (FCL), the transportation provider, usually a shipping line or freight forwarder, arranges transportation from the place of receipt to the place of delivery.

Is a shipping container considered “packaging” under Incoterms 2020?

Background

As defined by the IMO, a Cargo Transport Unit (CTU) is a cargo container, swap body, vehicle, railway wagon or other similar unit, especially when used in intermodal transportation.

In most cases, the CTU is a large metal box used to contain packages of dangerous goods. - The CTU must be strong enough to withstand the shocks and stresses encountered during transportation. - The CTU must be constructed to prevent loss of contents. - The CTU must be adequately maintained.

The CTU operator is the party that owns the CTU, usually a shipping line. Therefore, the CTU cannot be considered as packaging. The goods inside the CTU must be adequately packaged to withstand transport. In most cases, the goods are packed before delivery. The arrangement of the goods inside the container to prevent shifting, stacking and lashing varies depending on the Incoterm and the party responsible for loading the CTU.

The CTU is provided for the purpose of transportation and is charged with a transportation freight.

Conclusion

The cargo container (CTU) cannot be considered as “packaging”.