Archives for June 2014

Speaking at TOC Europe’s Container Supply Chain Conference in London, freight insurance specialist TT Club’s Mike Yarwood has warned of the increasing dangers posed by ‘cyber-criminals’ targeting carriers, ports, terminals and other transport operators. Examples of computer hacking affecting organisations, companies and individuals are numerous.  Data and information used to focus on high value cargo and susceptible loads.

London, 26^th June 2014

As invasive cyber-technology becomes more widely available, a greater risk to legitimate trade is emerging, exposing operators in the supply chain to economic and commercial damage.  Whilst advances in IT systems undoubtedly provide greater opportunities for carriers, transport operators and cargo handling facilities to mitigate their exposure to theft and fraud, unfortunately such increased sophistication also benefits those with criminal intent.

As a leading provider of insurance and risk management services to the freight transport industry, TT Club is well-placed to observe and analyse both the nature and effect of such ‘cyber-crime’.  Insurance claims expert Mike Yarwood has made a particular study of the fast-growing trend. “We see incidents which at first appear to be a petty break-in at office facilities. The damage appears minimal – nothing is physically removed,” reported Yarwood in his TOC presentation. “More thorough post incident investigations however reveal that the ‘thieves’ were actually installing spyware within the operator’s IT network.”.

More commonly targets are individuals’ personal devices where cyber security is less adequate.  Hackers often make use of social networks to target operational personnel who travel extensively and truck drivers to ascertain routing and overnight parking patterns.

The type of information being sought and extracted may be release codes for containers from terminal facilities or passwords to discover delivery instructions.  “In instances discovered to date,” revealed Yarwood “There has been an apparent focus on specific individual containers in attempts to track the units through the supply chain to the destination port. Such systematic tracking is coupled with compromising the terminal’s IT systems to gain access to, or generate release codes for specific containers.  Criminals are known to have targeted containers with illegal drugs in this way however such methods also have greater scope in facilitating high value cargo thefts and human trafficking.”

Yarwood and TT Club are strenuous in their advice to operators to be vigilant. Simply identifying the value of the data held by an organisation or individual is a starting point when assessing potential exposure to cyber crime. “Awareness is often the first step,” commented Yarwood.  “Education of employees across all disciplines of the organisation is crucial.  Making them aware of robust risk management policies designed to defend the organisation from cyber-crime. Often the level of threat is dependent on an organisations’ own culture,” concluded Yarwood.

ENDS

Notes to editors:

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services.  As a mutual insurer, the TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Customers include some of the world’s largest shipping lines, busiest ports, biggest freight forwarders and cargo handling terminals, to companies operating on a smaller scale but whose operations face similar risks. TT Club specialises in the insurance of Intermodal Operators, NVOCs, Freight Forwarders, Logistics Operators, Marine Terminals, Stevedores, Port Authorities and Ship Operators.

www.ttclub.com

In a speech given to the Trans Middle East Conference in Qatar in May, Andrew Kemp, Regional Director EMEA of the freight transport insurance specialist TT Club, called for operators to do more to minimise the causes of incidents resulting in bodily injury, cargo and property damage

London 18 June, 2014

Analysis of extensive TT Club data has shown that over 80% of insurance claims related to cargo handling at ports and terminals are the result of operational shortcomings or poor equipment maintenance.  “It is clear,” emphasised Kemp, “that many of these incidents are avoidable if operators were to pay greater attention to some basic safety related processes and give a higher standard of training to their employees.”

In addition, the presentation to freight industry professionals from across the Middle East region stressed the economic validity of well-advised insurance cover.  Kemp quoted from UK Health & Safety Executive research.  “This national authority estimated that for every pound sterling spent on insurance there is between eight and thirty-six pounds of costs incurred through the consequences of uninsured incidents.  These expenses cover such outgoings as emergency supplies, reputational damage, operational delays and increased maintenance and training requirements after the event, let alone the costs of management time,” he highlighted.

The analysis of a total of over 9,500 claims, carried out by the Club on data received over the past seven years, showed that a low percentage, just 5%, were caused by weather or similar natural causes.  The vast majority came as a result of much more avoidable causes – a quarter being due to poor maintenance of property or equipment and some 66% down to failures in some facet of the operation.

Much can be learned from the analysis of these operational issues.  Kemp stated, “We found that over a half of incidents involved the internal systems and processes of the operator and another quarter were due to theft.  These types of claim are most assuredly to be placed in the category of preventable,” he said.

Terminal and cargo handling facility operators are therefore strongly urged to employ effective monitoring and checking procedures, a regular training regime and to maintain industry best practice for safety and security.  The conference presentation exemplified a number of situations where a lack of traffic flow systems and speed limits, allowing people into operational areas and use of inferior spare parts on lifting equipment (to name just a few examples) regularly caused damage and injury.

As a result TT Club can, and frequently does, offer effective advice on loss prevention and risk management.  “Prevention can be successfully achieved via a combination of safe and physically secure facilities and equipment, rigorous checks and double-checks on safety procedures, combined with well-trained, well-motivated employees and trusted partners,” concluded Kemp.

ENDS

Notes to editors:

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services.  As a mutual insurer, the TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Customers include some of the world’s largest shipping lines, busiest ports, biggest freight forwarders and cargo handling terminals, to companies operating on a smaller scale but whose operations face similar risks. TT Club specialises in the insurance of Intermodal Operators, NVOCs, Freight Forwarders, Logistics Operators, Marine Terminals, Stevedores, Port Authorities and Ship Operators.

www.ttclub.com

In a speech given yesterday at the ASEAN Ports & Shipping Conference in Jakarta, Phillip Emmanuel, Regional Director Asia-Pacific of the freight transport insurance specialist TT Club, called for operators to do more to minimise preventable accidents that result in bodily injury, cargo and property damage

Hong Kong 12^th June, 2014

As a leading freight transport insurer TT Club numbers many port terminals a cargo handling facilities among its Members and as such occupies a prime position from which to identify the primary causes of risk and to advise on how such causes can be minimised.  An extensive analysis the Club’s historic claims data has shown that 68% of the cost of claims results from incidents of an operational nature within the port or terminal and a further 14% from poor or insufficient maintenance.  The remainder were weather related.

“It is clear,” emphasised Emmanuel, “that many of these incidents are avoidable if operators were to pay greater attention to some key safety related processes, install more available technology to help prevent collisions and give a higher standard to training to their employees.”

The analysis of a total of over 9,500 claims over a seven-year period totalled some US$ 400 million and covered bodily injury, property and equipment damage and liability.

Emmanuel was at pains to point out that much can be learned from the analysis and that TT Club is ready, willing and able to advise its Members and the industry in general on how such incidents can be avoided and claims minimised.  “The reduction of claims assists the efficiency and profitability of many operators.  It is not just the unforeseen costs of such accidents and the crucial eradication of injury to staff and third parties that results from good risk management,” argued Emmanuel.   “The reputation of the cargo handling organisation is enhanced through an improved safety record.  Operational delays are lessened and customer service levels heightened,” he emphasised.

TT Club strongly urges the use of industry best practice when it comes to safety and security procedures, regular training regimes for management and employees and the inclusion of quality safety devices when designing handling equipment specifications and/or budgeting for retrofitting such devices.

In his presentation to industry professional from throughout the ASEAN region Emmanuel gave several examples of how the later measure can be particularly effective.  “31% of the quay crane damage identified in our analysis was as a result of crane boom collisions; either crane-to-crane or the crane boom hitting a vessel.  There is a good choice of effective boom anti-collision sensors on the market, which if installed professionally and maintained correctly would avert a large number of these accidents,” he noted.  In the container yard, automated stack profiling systems are also available, which would have helped avoid some of the 339 claims incidents experienced by TT over the seven years covered by its causal analysis.

Likewise much of the cost of theft can be alleviated by employing improved security regimes.  These may involve physical barriers such as better fencing and more CCTVs but should also include more effective processes such as paperwork checks and IT anti-hacking software.

Emmanuel concluded, “Prevention through careful risk management is by far the best cure for costly incidents.  A combination of safe and physically secure facilities and equipment; rigorous checks and double-checks on safety procedures and well-trained, well-motivated employees will go a long way to improve operational loss in ports.”

ENDS

Notes to editors:

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services.  As a mutual insurer, the TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Customers include some of the world’s largest shipping lines, busiest ports, biggest freight forwarders and cargo handling terminals, to companies operating on a smaller scale but whose operations face similar risks. TT Club specialises in the insurance of Intermodal Operators, NVOCs, Freight Forwarders, Logistics Operators, Marine Terminals, Stevedores, Port Authorities and Ship Operators.
www.ttclub.com

Contacts:

Media:

Peter Owen

ISIS Communications

Tel: +44 (0)1737 248300

E-mail: info@isiscomms.com  

TT Club:

Tally Judge

Tel: +44 (0)20 7204 2632

E-mail: tally.judge@thomasmiller.com

www.ttclub.com