Date: 201705
Local time of day: 1801-2400
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
Reporter organization: Air Carrier
Reporter function: Captain; Pilot Flying
Reporter qualification: Flight Crew Air Transport Pilot (ATP)
Human factors: Training / Qualification
Anomaly: Deviation / Discrepancy - Procedural Published Material / Policy; Deviation / Discrepancy - Procedural Hazardous Material Violation
Detector: Person Flight Crew
When detected: Aircraft In Service At Gate
Result: General Work Refused
Contributing factors: Human Factors; Procedure
Primary problem: Human Factors

Narrative: Upon arrival at aircraft First Officer accomplished his pre-flight duties. Upon his arrival to the flight deck; he informed us that he had found a questionable HAZMAT container that appeared to be in non-compliance with the affixed HAZMAT labeling. I accompanied him down to the main deck to location 6R where the HAZMAT was indicated on the paperwork. We approached the position and it was clearly marked 'CAUTION! LITHIUM ION BATTTERY' and the pallet was also labeled with another 8.5x11 sheet indicating 'FRAGILE DO NOT DOUBLE STACK' as well as another label 'PLEASE HANDLE WITH CARE - FRAGILE'. The pallet was also wrapped in black security plastic and sealed with 'STOP' security tape in respect to opening or otherwise investigating its contents. Directly on top of; and loaded on this pallet was another wooden pallet; with a solid wood box with unknown contents. It was obvious that this pallet above the suspect HAZMAT container was loaded contrary to the HAZMAT labeling affixed to the shipment we had concern with. Upon further investigation; it was clear and obvious that the HAZMAT shipment had suffered compression by the 'Stacked Load' and compressed the shipment down and around the pallet which it was loaded on. I would describe the compression of the packaging extending approximately 2-3 inches below where it originally should have indicated. This is in respect to the forward right side corner that did not indicate any compression related deformation. The container because of the security packaging and indicated markings prevented us from making any further investigation as to its contents and internal condition.The Ramp Supervisor was called to inspect; and in no uncertain terms claimed that the 'Stacked' cargo was 'okay' and not a problem 'It's legal'. Whether or not it was legal; it was clear that the HAZMAT shipment had been deformed and indicated obvious distortion from compression related loads imposed on it. The fact the pallet contained Lithium Ion Batteries of unknown quantity; condition or security left us no choice but to refuse its continued transport on this flight without thorough investigation as to the security and fitness of its contents. The Ramp Supervisor removed the damaged shipment from the aircraft. The crew discussed the condition of the shipment; and arrived at a consensus that the shipment was not safe for carriage. The Ramp Supervisor was combative regarding the labeling; and was clearly angered by our insistence that it be removed from the plane. There appears to be a lack of awareness by the Ramp Supervisor as to the severe risk a damaged Lithium Ion Battery shipment posed to our aircraft. Why are we allowing stacking of cargo on top of HAZMAT that is clearly marked 'FRAGILE' 'DO NOT STACK' labeling? It was clear that schedule was of a much higher consideration than that of the safety and security of the HAZMAT comprised of Lithium Ion Batteries in an aircraft with no means of containing a Lithium Ion battery thermal runaway. The Lithium Ion Battery shipment was surrounded by Flammable materials; Wooden Pallets; and other unknown materials that would have absolutely resulted in extremely toxic fumes had ignition occurred. Did we not learn from [previous incidents] regarding the severe danger these shipments pose if not handled correctly and properly?




Synopsis: B747 Captain reported they had a lithium ion battery shipment removed from the aircraft after noticing it was not properly loaded.