Archives for September 2017

25^th September, 2017

A coalition of leading cargo industry organisations representing the full breadth of the global supply chain is maintaining its campaign for safer practices in packing freight containers and other cargo transport units (CTUs). During a meeting held at the IMO during London International Shipping Week, the group asked delegates of IMO member states for the backing of their governments to communicate the content, to encourage and oversee the use of the IMO/ILO/UNECE[1] Code of Practice for Packing of Cargo Transport Units (CTU Code) within their jurisdictions.

The four industry bodies, Global Shippers Forum (GSF), ICHCA International, TT Club and World Shipping Council (WSC) participated in the experts group that created the comprehensive guidance for safe and secure packing of CTUs and was thereafter adopted by each of the UN agencies during 2014. As such, the key stakeholders in the intermodal supply chain together with the leading freight industry insurer continue to drive forward the implementation of this important work.

Speaking on behalf of shippers, Chris Welsh, the Secretary General of GSF said, “Our coalition epitomises the depth of industry cooperation that exists in ensuring the safety of operatives across the supply chain and the security of cargo; now there is clearly a greater need for action by national governments to support these industry initiatives. In fact it is critical that governments play a role in effecting the more widespread use of the Code among those loading CTUs on a daily basis.”

TT Club’s Risk Management Director, Peregrine Storrs-Fox pointed out the importance of this awareness and enforcement of the Code, “The maritime freight container, in particular, has diversified the responsibility for safe cargo packing away from the historic concentration of expertise at quaysides and docks. Those packing containers at factories, warehouses and depots situated remotely from the port, or indeed from a railhead or other intermodal hub, are generally unaware of the consequences of a poorly packed steel coil and unsecured drum of hazardous chemicals. As a specialist insurer, TT Club continually sees the sad repercussions of truck rollovers and train derailments, cargo spillages, and explosions and fires at ports or on-board ships.”

Credible statistics are hard to come by, partly due to a lack of engagement by state authorities with IMO’s container inspection standard, but ICHCA International’s Richard Brough made an attempt to estimate the extent of the problem based on UNCTAD trade statistics and the results of the relatively few inspections made during the last fifteen years. “Extrapolating from the UNCTAD figure of 180 million TEUs traded, via the 24% of inspected containers carrying dangerous goods (DG) that were found to be badly packed and bearing in mind that cargoes declared as DG make up only around 10% of all containers, we can estimate that each year some 25.9 million containers are potentially poorly packed and pose a danger at some point on their journey along the supply chain.”

Lars Kjaer, Senior Vice President of WSC drew attention to the vital matter of container pest contamination explaining, “Carriers should ensure that empty containers to be delivered for packing are clean and pest free. However, the International Plant Protection Convention (IPPC) has confirmed that pest contamination of containers and their cargoes is most likely to occur at the point of packing. Shippers and packers need to take appropriate steps to prevent pest contamination of containers while in their custody.”

All four organisations are in no doubt about the extent of the task in hand to extend the best practices enshrined in the CTU Code to the majority of those involved in packing containers around the world. A lack of training, language problems, the sheer density of the information contained in the Code, dramatic variations in the types of cargo now being carried in containers and the complexities of international supply chains are among the myriad of challenges facing the industry in achieving widespread adoption. However, this coalition of industry bodies is determined to advance towards their goal and emphasise once more the crucial role that IMO member states should play in supporting their efforts.

For reference the full CTU Code can be found here http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Pages/CTU-Code.aspx

ENDS

Notes for Editors

The Global Shippers’ Forum (GSF) is the world’s leading global trade association representing shippers engaged in international trade moving goods by all modes of transport. Chris Welsh MBE chaired the Expert Working Group charged with drafting IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). More information is available at: www.globalshippersforum.com

The International Cargo Handling Coordination Association (ICHCA) is an independent, not-for-profit organization dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA actively participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ichca.com

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ttclub.com

The World Shipping Council (WSC) represents the global liner shipping industry on regulatory, environmental, safety and security policy issues. The WSC has observer status at the IMO and was actively involved in the development of the CTU Code. More information is available at: www.worldshipping.org

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[1] International Maritime Organization, International Labor Organization and United Nations Economic Commission for Europe

Two leading container industry bodies, the Container Owners Association (COA) and the Cargo Incident Notification System (CINS), supported by the leading freight transport insurer, TT Club have published an in-depth guide for those seeking to use refrigerated containers in non-operating mode to carry commodities not requiring temperature control.  The Guidelines give extensive advice on the risks involved and correct packing to protect both container and cargo.

London 12 September 2017

The use of ‘non-operating reefers’ (NOR) is common practice in the industry and has significant impact in reducing empty re-positioning costs for container operators.  However both COA and CINS are keen that all involved, including shippers, forwarders, packers and terminals are fully appraised of best practices in the use of such containers.  TT Club, in maintaining its commitment to minimising damage and loss in freight transport, is pleased to have contributed to this valuable guidance.

This new document entitled “Guidelines for the Carriage of Cargoes in Non-Operating Reefer Containers” outlines in detail the caution that must be employed in using NORs considering the difference in design between a reefer container and a regular General Purpose (GP) unit, noting specifically the internal dimensions, vulnerable insulation, weight distribution and expensive refrigeration machinery. Types of NOR cargo need to be approved and recommendations are given as to which should not be carried either because of risk of contamination or the inability to secure them sufficiently.

“Repositioning expensive reefer units after they have been emptied at destination is a constant challenge for container operators”, explains Uffe Ernst-Frederiksen – Maersk Line’s Head of Cargo Management, as well as Chairman of CINS and Deputy Chairman of the COA. “There is often insufficient temperature controlled cargo for the return leg of a reefer’s journey and therefore the unit has to be repositioned empty. On busy trade lanes, empty reefers are competing for slot space with revenue earning dry cargo, so the NOR solution is attractive.  However, care must be taken when loading NOR cargo, to avoid disproportionate costs being incurred in cargo loss and container damage.”

“These guidelines will be extremely useful in helping operators, shippers and those responsible for packing NORs make decisions that will project both cargo and reefer unit from such loss and damage,” comments TT Club’s Risk Management Director, Peregrine Storrs-Fox.  “TT Club is therefore very pleased to have worked with COA and CINS in producing this valuable document.”

A PDF of the Guidelines is now available to download – click here

ENDS

Notes for Editors:

The Container Owners Association (COA) is an international organisation representing the common interests of all owners of freight containers.  Full members comprise container shipping lines and container leasing companies, while associate members include suppliers of container equipment and services.

The principle aims of the COA are as follows:

• Development of Industry Standards – with the aim of promoting industry efficiency
• Dissemination of information through Conferences, Training and Education
• Lobbying relevant regulatory authorities and co-operation with industry groups
• Promotion of Safe Operation of Containers
• Promoting Environmental Awareness

www.containerownersassociation.org

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the 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. TT Club is managed by Thomas Miller.

www.ttclub.com

Cargo Incident Notification System (CINS) is a shipping line initiative, launched in September 2011, to increase safety in the supply chain, reduce the number of cargo incidents on-board ships and on land, and highlight the risks caused by certain cargoes and/or packing failures. Membership of CINS comprises over 65 percent of the world’s container slot capacity. The CINS database permits analysis of operational information on cargo and container incidents which lead to injury or loss of life, loss or serious damage of assets, or environmental concerns. The database includes root cause analysis.

CINS publishes Operational Guidelines on the carriage of certain cargoes in containers.

www.cinsnet.com