Labelmaster, today announced the 2024 results of the ninth annual Global Dangerous Goods Confidence Outlook, which is run together with the International Air Transport Association (IATA) and Hazardous Cargo Bulletin.

The survey results spotlighted areas of innovation within the dangerous goods (DG) / hazardous materials (hazmat) industry, including digitalization and sustainability. However, respondents indicated that additional investment and support are needed to overcome barriers and facilitate safe and compliant transport.

“Like other industries, the DG supply chain is evolving,” said Robert Finn, vice president, Labelmaster. “The good news is that the DG industry is poised for innovation. The survey results show organizations are increasingly investing in digitalization and sustainability initiatives within their DG operations. However, these efforts are often met with significant hurdles DG pros must overcome.”

Key Findings and Recommendations

Organizations are taking steps to digitalize their DG operations but find it challenging.

• 83% reported efforts to digitalize their DG operations: e-documentation (52%), virtual training (51%), paperless/digital regs (49%), digital validation/acceptance (36%)

• 80% reported difficulties with digitalization efforts

• The areas most identified as challenging include: company financial investment (86%), supply chain partner support (86%), gaining carrier/modal variation (86%), access to technology (84%)

Sustainability is a focus across the industry, but adoption is slow due to several barriers.

• 81% of respondents said their companies have sustainability practices in place

• The top three sustainability practices used are sustainable packaging (48%), working with environmentally responsible suppliers (48%) and using digital publications vs. printed publications (46%)

• However, several hurdles have slowed the adoption, with 56% blaming the current business environment, 39% citing lack of data and 30% indicating change management issues

Despite innovation and evolution throughout the industry, improvements are still needed when it comes to declared goods and new products.

• 80% of DG pros cited misdeclared/undeclared goods as being problematic

• 2/3 said defining, accepting and managing new products entering supply chain is challenging

The Future of DG Innovation

While many respondents recognize that the DG industry has evolved, most say that further innovation is needed to meet future demands.

Several innovations DG pros are most excited about over the next 5 years include:

• Improved data connectivity – saving time and increasing transparency (74%)

• Smarter warehouse tools to streamline acceptance and shipping (59%)

• Quicker content consumption – digital regulatory access and product data (56%)

• Sustainable packaging options (47%)

Injecting innovation into the DG supply chain does not have to be costly or difficult. Below are three ways to establish more digitized, sustainable and compliant DG operations.

• Digitalization: Integrate DG software, such as Labelmaster’s DGIS, into your enterprise resource planning (ERP) and warehouse management system (WMS) to ensure complete, accurate data, for example, connecting DG AutoCheck via API Connect.

• Sustainability: Incorporate reusable and recyclable packaging or leverage digital publications and licenses.

• Reduce Misdeclared/Undeclared Goods: Establish repeatable processes with DG software and keep employees and partners trained and informed using eLearning platforms and digital materials.

According to Nick Careen, IATA's senior vice president operations, safety, and security, “Embracing digitalization, sustainability and precise data management will enable a more efficient, transparent and compliant DG industry. By integrating advanced DG software solutions such as DG AutoCheck, companies can ensure accurate data and streamlined operations. Additionally, adopting sustainable packaging and digital publications support the industry’s commitment to innovation and environmental responsibility.”