This week in London the key subcommittee of the International Maritime Organization (IMO) approved a U.S. proposal that distiller’s dried grains with solubles (DDGS) be classified as a non-hazardous cargo.

“This is a major step toward resolving confusion that has emerged about shipping requirements for DDGS,� said Erick Erickson, U.S. Grains Council special assistant for planning, evaluation and projects.

The subcommittee decision is expected to be ratified by the Maritime Safety Committee when it meets in December.

“Even though the new classification will not become binding in the IMO code until 2013, the decisions this week and its expected ratification in December will have significant force in the international marketplace in the interim,� said Erickson.

DDGS exports have grown rapidly in the past five years, but some insurance companies insisted that DDGS be treated as a hazardous cargo. This confusion has led to shipping disruptions and higher transportation costs for DDGS exports.

Beginning in spring of 2010, the Council coordinated an industry effort to obtain clarification that DDGS is a non-hazardous cargo. With support from industry contributions the Council retained a consultant, arranged for laboratory tests on DDGS samples, and cooperated with the U.S. Coast Guard in preparing a formal proposal to the IMO. The tests confirmed the experience of the industry that DDGS is a non-hazardous cargo. The U.S. proposal went to the IMO in June and met the deadline for consideration at the annual meeting of the Dangerous Goods, Solid Cargoes and Containers (DSC) Subcommittee this week.

In addition to strong support from the U.S. Coast Guard and other advisors on the U.S. delegation to the meeting, the Council obtained signatures from dozens of U.S. DDGS producers, traders and transport companies affirming the safety of DDGS. A similar letter collected the endorsements from dozens of non-U.S. DDGS users, traders and shipping companies. The North American Export Grain Association, the Grain and Feed Association and a number of international trading and shipping companies complemented the efforts of the Council’s international staff to alert other countries about this proposal and obtain the support of their delegations in the IMO meetings.

The subcommittee’s decision to approve the U.S. proposal must be ratified by the full Committee in December, but the subcommittee process is considered the critical hurdle and we do not expect any further debate in the full committee.