Disruptions through the global supply chain continue to create opportunities for criminals to infiltrate and access cargo. In recognition of the threat landscape, TT continues its advisory campaign with the second edition of its a regularly published Supply Chain Security Bulletin.

London 17^th November 2022

The international freight transport insurer, TT Club is redoubling its efforts to inform the sector on critical risk profiles. The ongoing impacts of the pandemic blight economies, variable consumer demand trends, labour disputes, and the war in Ukraine all have an influence on continuing the profoundly dynamic global supply chain situation.  Congestion at ports and other freight hubs, mis-matches in the availability of transport equipment and ships in relation to demand are all consequences of this volatile environment. 

TT’s latest Supply Chain Bulletin* highlights that such disruption can create opportunities for those with criminal intent. Drawing on data, expertise and opinion from organisations across the globe, including TT’s own claims analysis, the  Bulletin highlights a series of risk trends and in particular cargo theft.

The graphic above taken from the Bulletin highlights the top countries for cargo theft.

Commenting on the latest publication, Mike Yarwood, TT’s Managing Director, Loss Prevention said, “Our series of Bulletins are aimed at identifying global trends, as well as to focus on particular areas of concern and offer practical guidance for those potentially impacted by freight crime.  The risk landscape is constantly evolving; the criminal organisations providing the threat are getting ever more sophisticated. So our regular Bulletins will keep track of those intent on monitoring supply chain activity and building operational profiles to identify a weakness or a particular vulnerability to exploit.”

The 2022 year to date TT claims data utilised in this latest Bulletin highlight the preponderance of electrical goods as targets globally, with the US reporting over 70% of these losses.  The split in general between theft from vehicles and depots is in the order of two-thirds versus one-third.  This is a consistent finding; though vehicles ‘at rest’ as opposed to hi-jackings are more prevalent targets. 

The threat posed by the insider continues to present challenges. TT’s analysis for 2022 suggests that around 23% of reported cargo thefts likely involved insider activity, whether it is in facilitating intricate knowledge of systems and security provisions or simply allowing access to criminals.  Digital solutions to enhance the free-flow of goods within a disruptive supply chain environment, however well designed, is a further trend which can give rise to internet-enabled fraud.  Computer generated access is creating opportunities to steal cargo through seemingly legitimate transactions.

Yarwood underlines the Bulletin’s advisory nature, “At this time, it would be prudent for those throughout the international supply chain to heighten their levels of awareness and increase their vigilance when carrying out financial transactions. The insider threat clearly also needs to be managed. Security strategies should include control over identification badges/passes and restricting full site access where applicable.”

Other issues covered in this latest edition of the Supply Chain Security Bulletin are the power of social media as a means of investigation; the threat imposed by fake carriers in Europe and a special focus on theft in Papua New Guinea. 

Yarwood concludes, “During this final quarter of the year when this type of crime is typically at its most abundant, those managing risk through the supply chain must remain vigilant. The holidays unfortunately create increased demand and market opportunities for criminals to sell their stolen cargo.  Via its Bulletins and other stringent risk management activities TT remains dedicated to advise on robust mitigation processes and efforts to disrupt criminal activity throughout the year.”

* Guidance | Supply chain security bulletin (ttclub.com)

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

Regulation and improving fire-fighting techniques have proven inadequate to stem the tide of serious incidents costing lives, significant cargo losses and ship damage.

London 10^th November, 2022

The freight transport and logistics insurance specialist insurer, TT Club is continuing its battle to convince cargo interests, supply chain professionals and enforcement agencies that the responsibility for mitigating container ship fires is shared by numerous entities involved from end to end of the entire global supply chain.  With its estimated sixty-day average occurrence of serious fires being maintained by the Zim Charleston fire in August and the TSS Pearl in the Red Sea in early October, TT is once more urging a more comprehensive approach to arresting the trend.

“There were significant lessons coming from the sad incident on the MSC Flaminia, which cost the lives of three seafarers, particularly from the subsequent legal proceedings that adjudged the shipper and NVOC responsible for root cause errors,” says TT’s Peregrine Storrs-Fox.  “Despite the biennial updates to the IMDG Code, including multiple arising from this particular incident, the judge’s assessment that the regulations merely set the ‘baseline’ for good practice remains utterly true today.”

Ensuring compliance with the latest mandatorily applicable version of the IMDG Code is essential as a minimum standard for all those shipping dangerous goods by sea. But the liability judgment in the MSC Flaminia case made it clear that regulations merely set the baseline.  “This is an important statement to which any entity inclined to rely solely on the letter of the law when consigning dangerous goods, would do very well to pay heed,” comments Storrs-Fox.

TT advocates a comprehensive approach, striving to bring an understanding of all the factors contributing to these fires to everyone involved in the movement of cargo in containers and therefore underlining their responsibilities for safety. Errors, misunderstandings, mis-declarations and inadequate packing and securing lie at the heart of many significant incidents, both at sea and in storage facilities. Movement of cargo is initiated in the trading of goods – sellers and buyers – who instruct packers and whoever becomes the shipper. They have a duty of care as much as the packers, warehouse operators, forwarders, logistics companies, carriers of all modal types, cargo handlers and terminal operators. Attention to accurate classification and declaration are critical to improve certainty of outcome from end to end. This requires truth as much as awareness of regulations and sound safety practices.

TT’s efforts to disseminate such awareness and knowledge have been long-standing and remain prolific.  Along with its sister insurer, the UK P&I Club it has recently up-dated its guideline publication, ‘Book it Right, Pack it Tight’¹.  This provides key insights for all involved in dangerous goods’ shipments, including a clear exposé of the more technical aspects of the IMDG Code. The aim is to influence higher standards of compliance by assisting all involved to understand their own duties and the duties of their contractual partners.

Closely related to the issues specific to dangerous goods are the broader aspects of packing cargo in general. While the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) remains non-mandatory international law, it is clearly referenced from the IMDG Code. Through its participation in the Cargo Integrity Group, TT has contributed to work on the ‘CTU Code – a quick guide’². Once more this has been recently updated and assists those responsible for packing containers, accurately declaring details of their contents in order to access the guidance contained in the voluminous CTU Code itself more easily.  There is also a useful Checklist of actions required, which along with the Quick Guide is available in multiple languages.

TT’s campaign to influence all parties continues with a series of Webinars early in 2023 on the subject of container ship fires and the on-going efforts to prevent them.  The intent is to attract awareness and debate particularly around innovations that could materially improve the risk, including a number of those whose efforts have been recognised through the TT Club Innovation in Safety Awards over recent years. Thus, these online forums will contribute further to the valuable weight of knowledge and expertise in the arena.  This year’s Safety Award entry process is nearing its conclusion but further information is available HERE

“The complexities of the global container trades increase rather than diminish,” concludes Storrs-Fox.  “No one entity can surmount the dangers of these horrific fires, as a consequence it is essential that the entirety of the risk faced should be embraced by all involved through the supply chain if they are to be successfully reduced.”

¹ https://www.ttclub.com/news-and-resources/publications/birpit

² https://www.ttclub.com/news-and-resources/publications/ctu-code-a-quick-guide

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com