Food shippers are included in the coverage of the FDA Food Safety Modernization Act of 2010 (FSMA), signed into law in January 2011, which will take effect in 2017.
The new regulation also covers loaders, companies that load food for transport to a consolidator at a container freight station, warehouse, or distributor centre.
Carriers and receivers are likewise included in the four regulated entities.
The new provisions cover transportation equipment, transportation operations, carrier personnel training, and procedure documentation.
FSMA regulates three categories of food: bulk food, packaged food not fully enclosed by a container, and items that require temperature control. However, the new law exempts other food products. Some of the regulated parties, such as shippers, carriers, and receivers engaged in food transport that earn less than USD 500,000 annually are likewise excluded from regulation.
Supply chain stakeholders have until 2017 to fully study and adopt the rules of engagement of the new law, as some of its provisions remain ambiguous.
Among others, brokers and insurers may want to note the following for potential loss control impact:
- Shippers may be able to bypass FSMA provisions by invoking the $500,000 revenue exemption rule in shopping for small trucking companies transiting to and from US ports
- Shipments originating from overseas are regulated only when the shipper arranges for inland transit and thus raises questions over the interpretation of the application of the term “arrange” in sale and shipping.
- The new law does not mandate the use of temperature recording devices, which is a barrier to the determination of temperature deviation or proving of transit temperature compliance
- The shipper or loader assumes responsibility for the adequate preparation of each refrigerated conveyance, which puts the duty upon the carrier, from a loss control perspective because they have the experience and technical skill to assess the proper functioning of a refrigeration system.
- Mere knowledge of possible temperature failure or other conditions that may render the food unsafe will subject the stock to safety determination before the food can be sold or distributed, thus adversely affecting its salvage sale potential.
