Date: 201507
Local time of day: 0601-1200
Location: ZZZ.Airport, US
Light: Daylight
Aircraft: B747-400
Operator: Air Carrier
Operating under: Part 121
Flight plan: IFR
Mission: Cargo / Freight / Delivery
Flight phase: Parked
ATC / advisory: Ramp ZZZ
Reporter organization: Air Carrier
Reporter function: First Officer
Reporter qualification: Flight Crew Air Transport Pilot (ATP)
Human factors: Confusion; Situational Awareness; Troubleshooting
Anomaly: Deviation / Discrepancy - Procedural Hazardous Material Violation; Deviation / Discrepancy - Procedural Published Material / Policy
Detector: Person Flight Crew
When detected: Pre-flight
Result: Flight Crew Took Evasive Action
Contributing factors: Company Policy; Procedure
Primary problem: Procedure

Narrative: This report concerns the discovery of a damaged shipment of lithium ion batteries.  We arrived to the aircraft and found that loading was complete; the APU was off and the upper deck temperature was 38 degrees Celsius. The main deck was cooler but still felt very warm.  I conducted the Main Deck Procedure.  Lithium Ion Batteries shipments were included on the NOTOC (Notification To Captain) in 3 locations including position SL (Special Load).  Two positions were palletized cargo wrapped in black plastic.  Through the clear plastic wrap at position SL; however; I could see that at least two pallets of boxes each clearly marked with a Lithium Ion Battery label were stacked; one atop the other.  On two sides of the top pallet of this stack; were labels marked 'Received Damaged-XXX'.  I engaged another crewmember who agreed the pallet required more inspection.  We sought out the assistance of the Ground Ops agent who thoroughly inspected the entire pallet.  After cutting through the plastic wrap we discovered that the corner of the shipment of batteries was bearing the brunt of the weight of another pallet stacked atop it.  This was crushing one corner of the pallet of batteries.  So; not only did someone accept a shipment containing Lithium Batteries that was known to be damaged and simply put a sticker on it; but that same container was further damaged when it was used to bear the weight of another pallet stacked on top of it.Damaged containers of HAZMAT and Lithium Batteries are a serious risk to fight safety.  In this case the shipment was known to be damaged because someone affixed a 'Received Damaged' label directly over the Lithium Ion Battery HAZMAT label.  It must be reinforced to the persons entrusted to build the pallets that they must not load damaged containers containing HAZMAT or lithium batteries on aircraft and that battery shipments must not be exposed to harsh conditions like an overly hot cargo hold.  Crewmembers cannot be the 'last line of defense' because often palletized cargo is wrapped in opaque or black plastic wrap and the condition of the cargo known to carry hazmat cannot be readily assessed or the cargo is not accessible at all. I suggest that management self-impose reasonable precautions to include: not stacking pallets containing lithium batteries; not loading cargo unless the APU is operational and/or the temperature of the cargo hold is below a safe storage temperature; and our carrier should not accept any package for shipment containing lithium batteries that has been damaged. Note; I have pictures but I am having trouble attaching them here.  I can provide them upon request.




Synopsis: A B747-400 First Officer inspected a Lithium Ion battery pallet and after detecting pallet damage uncovered the contents. Damaged batteries were found under the 'Received Damaged' sticker which was further damaged by another pallet stacked on it.