Transportation

Finding the Logic in Reverse Logistics

Are reverse operations moving forward for retailers? If you manage a retail operation, you are confronted with waste and hazardous materials problems that can be confusing for even the most seasoned manager. Yesterday we looked at reverse distribution and how even one of the largest retailers with legal and environmental health and safety staff got dinged by reverse distribution mishaps. Today we will review the U.S. Department of Transportation’s (DOT) efforts to make reverse logistics easier for retailers that ship hazardous materials.

What Is Reverse Logistics?

Reverse logistics involves the transportation of hazardous materials that have been damaged or returned from the retailer to a return center. DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is close to issuing a final rule that will provide a regulatory definition of “reverse logistics,” and outline the responsibilities of those that offer hazardous materials returned by retail customers.

The amendments that PHMSA has proposed to include in the final rule primarily affect retail outlets that currently bear the full burden of the hazardous materials regulations (HMRs) even though PHMSA acknowledges that reverse logistics shipments of certain materials present a low risk.

The amendments address hazardous materials intended to be returned to or be distributed between a vendor, distributor, or manufacturer. The primary regulatory concern is that retail outlets are ill-equipped to meet the HMRs in areas such as classification, packaging selection, hazard communication, and employee training.

The final rule is expected to clearly identify the hazardous materials authorized, packaging, hazard communication, and training requirements for reverse logistics shipments. In addition to providing a new reverse logistics exception, the rule is also expected to expand an existing exception for reverse logistics shipments of used automobile batteries from retail facilities to recycling centers.


Join us on Wednesday, September 30, for our in-depth webinar, New Hazardous Waste Generators Rule: The Practical Impact of the EPA’s Push to Strengthen Environmental Protections


A New Definition

The final rule is expected to first define “reverse logistics” as “the process of moving goods from their final destination for the purpose of capturing value, recall, replacement, proper disposal, or similar reason.”

The final rule is expected to apply only to highway shipments of hazardous materials and only to certain classes of hazardous materials, such as:

  • 1.4—Ammunition
  • 2.1—Flammable gases
  • 2.2—Nonflammable gases
  • 3—Flammable or combustible liquids
  • 4.1—Flammable solids
  • 5.1—Oxidizers
  • 5.2—Organic peroxides
  • 6.1—Poisons
  • 6.2—Some infectious substances; e.g., diagnostic specimens
  • 8—Corrosive materials
  • 9—Miscellaneous hazardous substances; e.g., asbestos

The exception is not expected to apply to toxic gases, dangerous-when-wet materials, or certain explosives and radioactive materials.

Relief from Key Shipping Burdens

Employees covered by the new provisions will require a minimal amount of hazardous materials training; primarily, the training will be “knowledge of the types of materials that are being returned to the distribution centers.”

Furthermore, mixing materials of various hazard classes will be allowed, providing the packages do not leak. If the packages are compromised, those products need to be placed in a leakproof inner packaging for liquids or siftproof inner packaging for solids to prevent leakage in the event of further damage.

Shippers will be required to use the hazardous material’s original package or a package of equivalent strength or integrity. Inner packaging will need to be leak-proof for liquids and sift-proof for solids. Furthermore, for liquids, the outer packaging will be required to contain enough absorbent material to entirely contain a spill should the inner packaging fail.


On August 31, the EPA released a proposed rule to update the hazardous waste generator regulations. Click here to learn more!


What About Batteries?

The current PHMSA regulations include a single-shipper provision applicable to reverse logistics, which prohibits the pickup of batteries from multiple locations. PHMSA is now expected to allow for the pickup of used automotive batteries from multiple retail locations for the purposes of recycling, as long as pallets are built so that they will not cause damage to another pallet during transportation.

The new PHMSA rule addressing reverse logistics is expected in October.

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