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TT Club

Supply chain congestion increases threat of cargo theft

Joint report of 2021 global cargo theft trends finds shift in emphasis from risk of in-transit, vehicle- based attacks to losses while cargo is at-rest — storage locations are critical at risk areas.  Widespread congestion at ports and inland facilities lead to increased opportunity for thieves during the period

London & New Jersey, 16th May 2022

  • Globally cargo thefts from or of vehicles in-transit declined as incidents at storage facilities rose to nearly 30%
  • In North America prevalence of port congestion and railhead delays seen as crucial factor
  • Idle times in European locations also augmented theft and stowaway risk
  • Strict Covid-19 protocols at Asian ports, particularly in China created delays and backlogs leading to theft opportunities
  • Increased influence of insider infiltration into operator organisations such as haulage companies and warehousing facilities
  • Adoption by criminals of new technology- assisted by increased digitalisation of supply chain processes and communication

The annual report, based on recent incident data for the whole of 2021 collated from sources including law enforcement agencies, governments and trade associations, has been compiled, as in the past years by leading international transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI.  In this last reporting period input from the Transported Asset Protection Association’s (TAPA) Europe, Middle East & Africa (EMEA) region has also helped to significantly increase the level of intelligence in these territories.   

“Constant vigilance is required in order to combat the growing risk divergence in theft trends,” says Mike Yarwood, Managing Director, Loss Prevention at TT Club. “Criminals are quick to adapt to prevailing conditions and have swiftly responded to the increased opportunities that supply chain congestion presents through the amount of cargo laying idle.  In addition, the transport industry’s growing reliance on technology and a rapidly changing market for sourcing materials and components have opened up new avenues for criminals to take advantage of companies’ increased vulnerabilities. TT, along with its partners is committed to tracking and reporting on such developments in criminals methods of operation in order to reduce the risk of losses wherever possible.” 

As the graphic above illustrates the products most frequently involved in global cargo thefts overall last year, included agricultural produce (12%), food and beverage (14%), construction materials (9%) and electronics (10%) Significantly, many of the materials used to produce the latter two, such as nitrogen, iron ore, lumber, steel and semiconductors, have all experienced sharp price increases since the outbreak of the global pandemic due to shortages with a consequent increase in the value of the manufactured products.

The report also offers advice on how operators can protect their cargo from the theft risks outlined.  Tony Pelli, BSI’s Practice Director for Security and Resilience has produced a checklist of precautionary action points.  “To mitigate risk there are a range of safeguards, including careful verification of trucking companies and other sub-contractors; insisting on the provision of details such as driver’s name, trailer number and appointed pick-up times and background screening of employees,” explains Pelli.  “Vigilance is paramount, and we hope our reporting and advice will help supply chain partners to maintain and increase their diligent efforts to combat crime.”

Thorsten Neumann, President & CEO, of TAPA EMEA, commented: “What we are seeing in EMEA is a heightened level of risk to virtually all types of goods moving in supply chains across our region. This comes from increasingly active and sophisticated organised crime groups which often regard supply chains as an easy and lucrative target. Sadly, too many companies wait to seek solutions until they become a victim of a cargo crime but, by then, they will have suffered a significant financial and reputational loss. The way forward is to recognise the risks which exist and to learn about the industry standards, training and intelligence solutions which are available today and which are already key to the supply chain resilience of leading manufacturers and freight transport and logistic providers. All is not lost, but it is a time for action to manage these risks and prevent rising product losses.”  

Please click the following link for the BSI & TT Club Cargo Theft Report

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 1100 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 97% 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

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain. To learn more, please visit www.bsigroup.com/supplychain

About TAPA

The Transported Asset Protection Association (TAPA) is a not-for-profit industry that helps Manufacturers/Shippers and Logistics Service Providers minimise losses resulting from cargo thefts and to increase the security and resilience of their supply chains. Today, in the Europe, Middle East & Africa (EMEA) region, the Association provides a host of certifiable, independently-audited industry Standards for facilities, trucking operations and secure parking as well as training. The TAPA EMEA Intelligence System (TIS) also provide the latest and historic recorded incident intelligence, enabling more secure route planning by helping members understand when, where and how criminals are targeting supply chains, and the products most frequently stolen. The Association strongly advocates the reporting of all cargo thefts to increase industry knowledge of risks and to assist companies’ loss prevention strategies. TAPA EMEA’s President and CEO is Thorsten Neumann.

Time to take charge of lithium battery moves

Amid a number of recent fire incidents affecting container transport, ro-ro ships and air cargo movements allegedly involving lithium batteries, international freight transport insurer TT Club is calling for increased vigilance to ensure a secure safety environment for the fast-developing supply chains of this increasingly common component.

The market is exponentially increasing through consumer demand for a wide variety of rechargeable products from handheld devices to power tools and electric vehicles. Recently recorded incidents of container fires caused by, or suspected to involve lithium batteries, as well as conflagrations of significant proportions on car carriers and ro-pax ships mean that safety concerns rightly continue to grow amongst the maritime community.  In addition to which revised regulatory restrictions regarding the carriage by air of lithium batteries, which took effect from 1st April, may result in greater volumes being transported by surface modes.

“Understanding the risks is crucial,” comments TT’s Risk Management Director, Peregrine Storrs-Fox.  “As with many successful technologies, market demand has outpaced the development of safety regulations. Since the mid-1980’s lithium batteries have been classified under dangerous goods regulations for transport based on the weight of lithium contained in the cells or batteries and the potential hazard presented by a given battery is also related to the amount of lithium it contains. However, as technology has advanced, the amount of energy derived from the active material has increased by up to 50%, leading to regulatory mismatch where provisions are essentially framed around mass and energy output.”

Lithium batteries are required to be certified to an international standard involving a rigorous series of tests performed by an approved independent testing laboratory, to ensure they can both withstand everyday use through their expected lifetime and the rigours of transport. Responsibility for testing and achieving certification rests with the shipper and/or manufacturer. The sharp rise in demand has been accompanied by supply of cheaper, poorer quality and untested batteries, including refurbished and even homemade power banks. E-commerce platforms have facilitated a global trade in potentially lethal products, often circumventing global standards and regulations.

Throughout their intermodal journey the primary risks exist when batteries are poorly manufactured, untested or defective; these have a higher propensity to malfunction. However, supply chain risk – at any point of handling, storage and transport – is compounded by used, fully or partially charged batteries. As such the reverse logistics of batteries must be carefully managed; damaged and faulty products being returned or shipped as waste for disposal or recycling present increased risk.

The consequences of lithium fuelled fires can be more extensive than others.  They are very difficult to extinguish, prone to thermal runaway and present an explosion risk. Due to the heat generated, re-ignition once a fire has been extinguished is an additional risk.  In the unforgiving maritime environment, where the crew capability to fight fire is strained, the hard lessons learned by land-based fire responders, particularly relating to electric vehicles, need to be assimilated.

“The majority of shippers will take all practicable steps to ensure that their lithium batteries achieve certification and are classified, packaged, packed, labelled and declared correctly. A small – frankly criminal – minority are motivated to avoid compliance, entering cargo into the supply chain that presents great risk to all,” Storrs-Fox observes.  “Once lithium batteries are placed into the intermodal supply chain, there is little opportunity for the cargo to be checked, visually or otherwise to verify compliance. For all who are contracted to transport, handle or store lithium batteries therefore, developing a thorough understanding of this particular cargo is a prudent step. Moreover, due diligence into the origin of manufacture and integrity of the shipper instigating the move of these potentially lethal power sources is critical.”

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 1100 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

TT Club puts risk from invasive pests into sharp focus

Various sources of potential pest contamination exist throughout the global freight supply chain. Both national legislatures and multinational regulators are keen to minimise potentially devastating consequences to agriculture and the natural environment that unwanted invasive pests can deliver. All those involved in the movement of cargo internationally must heighten their awareness and tighten biosecurity measures.

The international freight transport insurer TT Club is bringing the nature of these phytosanitary risks into even sharper focus by helping to educate those involved in the intermodal supply chain about pests taking unwelcomed rides. This is building on the success of its series of animated supply chain security videos. As many vulnerabilities emanate at the time of packing freight units at export locations across many countries, the visual impact of video animations can be effective in conveying these crucial messages.

In introducing the videos Peregrine Storrs-Fox TT’s Risk Management Director commented, “The condition of the structure of the ‘metal box’ and its cleanliness are clearly important elements in relation to pest movement. However, there needs to be focus attention on the condition of the goods themselves and any packaging or dunnaging materials to ensure that they are not contaminated either. We have attempted to emphasise both these aspects in these animations and are grateful also for input from partners in the Cargo Integrity Group”.

The four video clips, that can all be accessed HERE , feature how the route taken by a road transport vehicle can affect cleanliness, as well as how mud and vegetation, however acquired, can harbour invasive pests, risking contamination before loading on board a ship. They also highlight how packing freight units under bright lighting at night can attract unwanted insects and the risk of cargo from previous loads also introducing invasive creatures.

A red curtain in a room

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TT wishes to bring the substantial issues of such contamination to the broad range of stakeholders as container flows are complex, involving multiple handovers of control and transport modes. The shipping company, which often operates the container, has little direct control over or access to containers except, with the involvement of local operators, when they are empty in depots or at terminals. This by no means applies to every trip. On many occasions containers are delivered empty for packing immediately after discharging the previous cargo.

A critical place of potential pest contamination is the packing point, over which the shipper exerts the most influence and control, either directly or via contractual agreement with the packer. It is clear therefore that an understanding by a number of parties about the interdependencies and mechanics of the supply chain is required to build effective, sustainable measures to mitigate the risks of transfer of invasive pests. So too is an understanding of biology of the range of pests at the point of origin. TT will continue to communicate the consequences of these risks and the means of reducing them through as many channels as it believes can be effective.

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 1100 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

BIC and FIATA join Cargo Integrity Group

February 24, 2022 – The original five partners of the Cargo Integrity Group are excited to welcome the Bureau International des Containers (BIC) and the International Federation of Freight Forwarders Associations (FIATA), strengthening the group in its efforts to improve safety in the global supply chain.

The Cargo Integrity Group brings together international freight transport and cargo handling organisations with different roles in the supply chain and a shared dedication to improving safety, security and environmental performance throughout the logistics supply chain.

BIC and FIATA bring valuable complementary perspectives, resources and networks to the group, further deepening its competence and scope. Both organisations have already worked closely with the Cargo Integrity Group and will directly contribute to faster and more effective progress in reducing incidents, accidents, and biosecurity issues in the international supply chain.

“FIATA has long supported the work of the Cargo Integrity Group and has already collaborated with its stakeholders to promote the CTU code through the activities of its Working Group (WG) Sea headed by FIATA Senior Vice-President, Jens Roemer. By joining the group, FIATA reaffirms its commitment to improving the safety and security of sea freight in the best interest of its customers. FIATA is a key component in reaching out to the end customer and making a difference in the implementation of the CIG’s work, while bringing strong safety and security expertise through the
collaboration of its WG Sea and Advisory Body Safety Security,” comments the FIATA Director General, Dr Stéphane Graber.

“With safety and sustainability at the very core of BIC’s mission, topics like cargo safety, proper declarations and the avoidance of pest contamination are clearly of high interest to us. We’ve been supporting the promotion of the CTU code in communications both with our members and externally since it was first published, and most recently sponsored one of the CTU Quick Guide translations. We’re pleased to take this next step by joining the group, and look forward to working more closely with our partner organizations in helping increase safety in our industry,” says Douglas Owen, Secretary General of Bureau International des Containers (BIC).

Dedicated to improving the safety, security and environmental performance throughout the logistics supply chain, the Cargo Integrity Group will continue its efforts in is chosen focus areas:

• Collaborating with other industry and governmental stakeholders in promoting awareness and better understanding of safe cargo packing and handling practices such as the CTU Code
• Working to improve regulatory requirements such as the International Maritime Dangerous Goods (IMDG) Code, and
• Working for strengthened cargo screening processes and more effective container inspection regimes.

NOTES FOR EDITORS

About the Cargo Integrity Group
The Cargo Integrity Group brings together international freight transport and cargo handling organisations with different roles in the supply chain and a shared dedication to improving safety, security and environmental performance throughout the logistics supply chain. The Bureau International des Containers, the Container Owners Association, the Global Shippers Forum, the International Cargo Handling Co-ordination Association, FIATA, the TT Club and the World Shipping Council are co-operating on a range of activities to further the adoption and implementation of crucial safety practices and regulations.

About Bureau International des Containers (BIC)
The Bureau International des Containers (BIC) was founded under the auspices of the International Chamber of Commerce in 1933 as a neutral, non-profit, international organization. BIC seeks to promote efficiency, safety, security, standardization and sustainability in the container supply chain and today has over 2600 container owning and operating members in 125 countries. Publisher of the BIC Code Register since 1970, BIC also operates the BoxTech Global Container Database (bic-boxtech.org), providing API-accessible equipment details to help improve efficiency and safety in the supply chain, the BIC Facility Code Database, providing harmonized codes to identify over 17,000 container facilities in 160 countries, and the Global ACEP Database. BIC holds official observer status at the International Maritime Organization (IMO), the World Customs Organization (WCO), and the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT). www.bic-code.org

About FIATA
FIATA International Federation of Freight Forwarders Associations is a nongovernmental, membership-based organization representing freight forwarders in some 150 countries. FIATA’s membership is composed of 109 Associations Members and more than 5,500 Individual Members, overall representing an industry of 40,000 freight forwarding and logistics firms worldwide. Based in Geneva, FIATA is ‘the global voice of freight logistics’. www.fiata.org

Cargo Integrity Group Media Contacts

Bureau International des Containers (BIC)
Douglas Owen, Secretary General, douglas.owen@bic-code.org

Container Owners Association (COA)
Patrick Hicks, Secretary, secretary@containerownersassociation.org

Global Shippers Forum (GSF)
James Hookham, Secretary General, jhookham@globalshippersforum.com

International Cargo Handling Co-ordination Association (ICHCA International)
Maria Udy, Media contact, Portcare International, maria@portcare.com

FIATA (International Federation of Freight Forwarders Associations)
Stéphane Graber, Director General, communications@fiata.org

TT Club
Peter Owen, Media contact, Portcare International, info@portcare.com

World Shipping Council (WSC)
Anna Larsson, Communications Director, alarsson@worldshipping.org

Virtual Presentation Ceremony Celebrates the Winners of TT Club Innovation in Safety Award

From a record number of over thirty entries VIKING Life-Saving Equipment A/S was announced the winner for its innovative HydroPen system designed to fight onboard container fires.  Both PSA International and Cargotec Sweden AB were highly commended.

The ICHCA International (ICHCA) and TT Club collaboration once more recognised the crucial role played by organisations across the world in constantly searching for better solutions to the challenges of improved safety in the cargo handing industry.  While the three short-listed entries, and particularly the eventual winner VIKING, were to be congratulated, the efforts of all the organisations that provided details of their innovations are to be admired.  Their striving for improved safety underlines the need for increased vigilance in the cargo handling and freight transport sector to reduce the loss of life and damage to property while facilitating global trade.

The ceremony, held virtually at TT Club’s offices in London was aired this afternoon and addressed by Heike Deggim, Director of Maritime Safety Division, International Maritime Organization (IMO), which has been a consistent supporter of the Awards both currently, and in the past.  The ceremony also gave an opportunity for each of the three short-listed companies to give a presentation of their successful safety innovations.  A recording of the whole event will be available shortly on ICHCA and TT’s websites.

Hosting the presentation on behalf of ICHCA was Richard Steele, the association’s CEO.  “The list of innovations from our award entrants is truly exciting,” he said.  “Innovation doesn’t just happen by itself.  All the participants have put in hard work, drive and ambition and I am sure there are many entries not short-listed today that will inspire others in the industry and achieve practical success in reducing accidents.  To that end we will be providing a digest of all the entries in the coming months.” Steele also thanked the panel of judges, made up of professionals from across the industry including representation from the International Transport Worker’s Federation (ITF) for their dedicated conscientious work.

The winner, VIKING’s HydroPen helps address the increasing incidence of fire in containers while onboard ships at sea.  The complexity of the cargoes carried and the frequent challenge of accessing the containers makes fighting fires most difficult for the first responders, the ships crew.  HydroPen enables such fires to be attended from a safe distance and the judges were particularly impressed by the specific online training that is provided with each unit.

PSA International’s highly commended Video Analytics solution helps with preventing in-terminal collisions of the heavy cargo handling equipment that can be so damaging to both life and cargo, while Cargotec’s innovation deals with the tricky task of container inspections from below; safely identifying any damage to the under-side of containers and ensuring they are clean and free of any invasive pests.

TT Club was delighted with the industry response this, the fourth, Innovation in Safety Award  Mike Yarwood is the international insurer of cargo handler’s Managing Director, Loss Prevention.  “It is hugely encouraging to have so many entrants seeking to solve a host of challenges from the provision of geo-spatial data and predictive maintenance software to technology that measures local climatic conditions.  The last two years have been incredibly busy and difficult for all concerned and safety issues have arguably increased significantly.  It is good to see that despite these conditions the industry’s commitment to be resilient and increase safety is undiminished.”

Peregrine Storrs-Fox, TT’s Risk Management Director commented, “This Award was inaugurated to celebrate solutions that have proven to make the industry workplace safer. We find that sharing such ideas openly is core to the Club’s mission to make the industry safer and more secure.”

Bill Brassington, Chair of the ICHCA Technical Panel was keen to emphasise the partners in organising the Award’s consistent efforts to improve safety.  “In recent years the shipping industry has suffered a number of severe fires originating in containers and the TT Club and ICHCA have been campaigning consistently to reduce these life-threatening events,” he highlighted.  “Frequent webinars and publications have been dedicated to creating a greater awareness of the difficulties in containing fires both below and on deck especially where the container is high in the stack.  It is therefore heartening to congratulate VIKING Life-Saving Equipment and their innovative HydroPen System.   I would also like to congratulate all of the entrants to the TT Club Innovation in Safety Awards; I am sure that the diverse and fascinating subjects that they covered taxed the judges deeply.”

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 1100 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

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.


Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

Organisations deprioritised CyberSecurity during supply chain crisis despite rise in attacks, Kaspersky reveals

A new Kaspersky report – produced in association with leading freight transport insurer TT Club – has revealed that despite a rise in cyberattacks during the supply chain crisis, 16% of UK businesses deprioritised CyberSecurity last year amid the pandemic, port closures, HGV driver shortages and other challenges associated with Brexit.

Cybercriminals have become ever more sophisticated at exploiting organisational silos, security gaps caused by remote working and the supply chain crisis, to undermine the safety and security of critical systems. So much so that companies across the UK and Benelux reported a 30% rise in the number of cyberattacks they faced during last year, compared to previous years.

Indeed, the National Cyber Security Centre (NCSC) recently reported an unprecedented 777 incidents over the last 12 months – up from 723 the previous year. High-profile attacks, such as the SolarWinds attack in 2020, have demonstrated how threat actors can target a vast number of organisations by breaching a single link in a supply chain.

Despite these threats, Kaspersky’s report – titled Supply Chain CyberSecurity – Potential Threats and Rising to the Challenge – found that both enterprises and SMEs are showing a worrying level of complacency when it comes to protecting the resilience of their supply chains. Even though almost three-quarters (72%) of companies state CyberSecurity threats are their number-one concern, only a third (33%) have the necessary internal resources and knowledge to respond to a CyberSecurity incident. And just 35% are certain they have taken every possible step to mitigate third-party risks in their organisation. The findings reveal that companies that deprioritised CyberSecurity did so in favour of other real-time challenges, such as HGV driver shortages and other logistical issues caused by the pandemic.

At TT Club we are constantly assessing the risk profile of the global supply chain and alerting the industry to our concerns, hence our support of this unique report,” says TT Club’s Managing Director, Loss Prevention Mike Yarwood. “One should not underestimate cyber criminals. They are agile, focused and highly sophisticated, presenting a significant threat to businesses in the global supply chain. As we emerge from the COVID-19 pandemic, TT would encourage a re-evaluation of cyber risk policies and urge operators to satisfy themselves that sufficient resource is allocated to addressing this threat. Resilience in the face of cyber risk is critical.

A supply chain attack targets an organisation by infiltrating or attacking a business that sits in its chain of suppliers. If one of these entities has low CyberSecurity threat protection – or it is avoiding some specific cyber security hygiene protocols – it could become the entry point into a much wider network of suppliers. The risk can vary greatly and adds to a company’s threat surface complexity.

A vulnerability in one organisation can significantly impact somewhere else in the supply chain, whether that’s via compromised personal identity or payment credentials. If a supply chain’s weak link is exploited, a business can be brought to its knees. Yet, Kaspersky’s report reveals that just a fifth (20%) of businesses have a third-party risk management solution in place and only 18% of companies have cyber/business resilience insurance.

Commenting on the findings, David Emm, principal security researcher at Kaspersky, stated: “The pandemic, Brexit and supply chain crisis have complicated the cyber threat landscape, making it crucial that organisations take steps to defend against evolving threats under new circumstances. Cyberattacks and data breaches can be highly injurious to any business in terms of damage to reputation, costs of remediation, lost business and other expenses. Companies must ensure they only share data with reliable third parties and extend their existing security requirements to suppliers. We urge businesses large and small to scrutinise their suppliers’ credentials as part of the standard due diligence and contracting process, or risk sleepwalking into a CyberSecurity disaster.”   

To read Kaspersky’s Supply Chain CyberSecurity – Potential Threats and Rising to the Challengereport in full, click here.

About Kaspersky 

Kaspersky is a global CyberSecurity and digital privacy company founded in 1997. Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative security solutions and services to protect businesses, critical infrastructure, governments and consumers around the globe. The company’s comprehensive security portfolio includes leading endpoint protection and a number of specialized security solutions and services to fight sophisticated and evolving digital threats. Over 400 million users are protected by Kaspersky technologies, and we help 240,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com

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 1100 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

Research methodology

During November and December 2021, Arlington Research surveyed 240 C-suite, middle managers (director level and above) and senior managers who are also sole or joint decision makers for CyberSecurity, IT and information security, across both SMEs (businesses with an annual revenue of less than £/€100m) and enterprises (businesses with an annual revenue of more than £/€100m). 150 interviews were completed in the UK (split 100 SMEs and 50 enterprises) and 90 interviews were conducted across Benelux (split 75 SMEs and 15 enterprises).

Tank container risk analysis reflects supply chain pressures

TT Club’s analysis of 2020 claims points to an increase in impact related incidents, with corrosion of tank containers’ inner surface and contamination caused by cargoes previously carried as significant other causes of loss.

The analysis makes clear that the effects of increased volumes of tank containers used to trade chemicals and other liquids on the primary east-west trades have altered, to a degree, the risk profile of damage to such units. While in previous years there has been a consistent dominance of contamination as the major source of losses for tank container operators, the current figures show impact incidents as the foremost causation.

The primary causal types reported in the TT analysis account for over 80% of the incidents notified. They are: impact at 36%; internal pitting (from corrosion) accounting for 27% and contamination with an 18% share. The regional breakdown of total claims follows broadly the pattern of the trades on which tank containers are employed: 50% in Asia-Pacific; Europe at 36% and 13% occurring in the Americas.

International freight transport insurance specialist TT Club insures over 50% of the global tank container fleet. The data generated in its latest analysis of notified claims covers the 2020 policy year and is seen as a reliable representation of the risks faced by those businesses worldwide that operate tank containers.

TT’s Managing Director Loss Prevention, Mike Yarwood comments on the findings of the analysis, “The most significant trend we see is the relative increase in claims originating from impact incidents and from pitting of the tank’s internal steel surface. Historically we have experienced higher levels of contamination-related claims,” he says. “The increased occurrence of impacts involving tanks would seem to be a factor of higher container volumes handled at maritime and intermodal terminals. The pie chart breaking down our data below shows some 63% of impact incidents occurring at these locations. Volume increases at terminals, and associated congestion puts additional pressure on operators of handling equipment to achieve greater throughput levels. This effect, exacerbated by many tanks being ‘super-heavy’, has elevated risk.”

Road traffic accidents are the second highest cause of impact damage to tank containers with a higher proportion occurring in the Americas (almost 50%) despite this region accounting for only 21% of total impact-related damage incidents. Of those claims involving pitting damage, an overwhelming proportion occurred in Asia (87%), and the majority involved hazardous material (59%). Yarwood comments, “While there is a plethora of potential causes for this damage, there is currently no identifiable trend causing the increase in claim frequency. It would however be prudent for operators to be mindful of this exposure; ensuring where possible tanks are prioritised for cleaning once in an ‘empty dirty’ state and considering more regular inspections.”

Impact damage by cause

The lower incidence of contamination evident in the current analysis compared with previous years can also be explained by the increased volumes of trade, capacity restrictions and the beginning of serious congestion experienced in recent years. Yarwood once more explains. “An assumption that one could reasonably reach, given the supply chain constraints, is that consignees are arguably more willing to accept cargoes, even where they suspect a negligible contamination issue, on the basis that replacing the product from its supplier could be complex and time consuming.”

TT Club’s Loss Prevention service is extensive and regular alerts and StopLoss documents are issued to assist operators to reduce their risk and avoid time-consuming claims. For more information, please visit TT’s Loss Prevention webpage or for specific tank container information, read TT’s Tank Container StopLoss and latest alert relating to the classification of divinylbenzene.

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 1100 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

ICHCA Announces Record Number of Entries for the TT Club Innovation in Safety Award

Over 30 organisations from around the world have submitted entries for the 2021 TT Club Innovation in Safety Award.  Covering products and procedures that achieve a demonstrable improvement in cargo handling and transport safety, the submissions range in focus from bulk cargo handling to containerised cargoes; safety reporting and education to environmental monitoring and fire- fighting.   

London, 20 January 2022

Designed to both encourage safety innovation at a time of increased operational demands on the global cargo handling infrastructure, and to celebrate the practical success of such initiatives, this will be the fourth time that the Award has been presented. TT Club, as a prominent freight transport insurer, and the association representing cargo handlers, ICHCA International, have long worked together to identify and promote operational safety in the industry.  They consistently produce safety advice and support innovation to improve safety in cargo operations and logistics.

“With over 50% more submissions than in any previous year, I am thrilled to see a record year for entries to the TT Club Innovation in Safety Award,” said ICHCA CEO, Richard Steele.  “The judges had an abundance of creative, innovative and thought-provoking content to consider.  This level of response emphasises that there are lots of smart, dedicated people who are working throughout the cargo handling world to improve safety and we are proud to be part of that endeavour.”

As the leading specialist insurer of cargo handling risk worldwide, TT is a mutual organisation dedicated to reducing risk and advising on loss prevention through improved safety regimes.  TT Risk Management Director, Peregrine Storrs-Fox comments “We consider our founding of, and continuing support for the Innovation in Safety award as entirely appropriate to the Club’s core mission.  TT remains dedicated to safety through the industry and is proud to have celebrated past winners such as Hapag Lloyd’s Cargo Patrol, as well as terminal automation experts, Kunz and Yardeye for their work with CSX Intermodal Terminals, in addition to all the other worthy entrants, for their innovations, each of which can be seen to improve safety standards significantly in the global transport and logistics industry.”

The Award, open to any individual, team or company that is part of the cargo supply chain, is presented to the entry that has been judged as the best product, idea, solution, process, scheme or other innovation delivering improvement in operational safety.  The Award event, a virtual ceremony to be held on 22nd February, 2022, https://attendee.gotowebinar.com/register/5371375306422039564 will profile a limited number of shortlisted entries, culminating in the Award being made.

Speaking on behalf of the judging panel, Bill Brassington, Chair of the ICHCA Technical Panel, “It was exciting to read all of the excellent submissions covering such a wide variety of safety related innovations.  The quality and quantity of submissions demonstrates the importance of the TT Club Innovation in Safety Award, and it was hard to differentiate their value to the cargo handling world,” he commented.  “Out of this strong field, there were only a few marks between many of the entries. While the Award will inevitably recognise one entry, we will, as previously, publish a digest of all entries to give profile to all of the really valuable innovative work that is being done.  In that context, we would congratulate all for their work and dedication to improving safety in cargo handling.”

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.

Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

www.ichca.com

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 1100 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

Rise in differing cargo theft types driven by conditions at congested US ports

Third quarter cargo theft data in the US shows storage facilities targeted in 45% of reported cases; up from 20% of recorded cases in the same quarter in 2020.  Fall in hijacking and robbery of vehicles from 67% to just 25% this year coincidental with rise in theft of cargo units in unsecured storage areas. Congestion throughout the supply chain but particularly in and around ports is a significant contributory factor to this diversification of theft types.

London & New Jersey, 18th January 2022

Freight insurance specialists, TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company have highlighted the increased risk of theft from storage facilities seen over the past few months in the United States. The changes in theft patterns from the same quarter last year highlight a trend away from ‘on the move’ targets to those locations where cargo is temporarily stored and delivered.  These locations include traditional warehouses and depots where containers and trailers are being held awaiting collection, many of which are temporary facilities in port areas without adequate security regimes.

As the diagrammatic comparisons below show, the largest rise in the methods and locations for cargo theft was from facilities:  the percentage of the total increasing to 25% in the third quarter this year in contrast with just 7% in 2020.  At the other extreme theft of vehicles fell from a dominant 47% in 2020 to a surprisingly low 15%; in addition, hijackings halved from 20% to 10%.


Please note the more prevalent types of theft for each quarter are indicated by the ‘hotter’ colours in the illustration above

In commenting on some of the more contrasting figures, Mike Yarwood, TT Club’s Managing Director, Loss Prevention said, “The is little doubt that the problems of supply chain disruption that are currently bedevilling the US freight transport system, particularly that of container congestion at ports and inland hubs, is creating increased opportunities for thieves. The static nature of cargo in these circumstances, often stored in temporary and less secure facilities, leads to criminal ingenuity adapting the modus operandi of theft in a typically resourceful way.”

TT is keen to use the insightful data provided by BSI Screen in identifying sifts in cargo theft trends and bring them to the attention of operators in as timely as a fashion as possible. Those concerned with risk management in the supply chain both in the US and throughout the world should be aware of such patterns and hopefully take measures to reduce losses, costs and insurance claims. 

TT is committed to providing resources to help supply chain stakeholders to enact such mitigating measures.  Yarwood explains, “Whatever the location and means of cargo theft such incidents can often be averted through straightforward due diligence, management processes and employee vetting and training.” To this end, TT has a webpage dedicated to advice on improving supply chain security which can be accessed via this link

https://www.ttclub.com/loss-prevention/supply-chain-security/?utm_source=pressrelease&utm_medium=article&utm_campaign=bsi_cargotheft

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 1100 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

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain. To learn more, please visit www.bsigroup.com/supplychain

Theft from warehouse facilities is primary cargo crime in the Middle East

Crime report from TT Club and BSI finds over three-quarters of cargo theft occurs at logistics hubs and warehouses, with Free Trade Zone (FTZ) particularly vulnerable locations.

Dubai & London, 16th December 2021

The well-established collaboration between international freight transport insurer, TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company has produced the latest report on trends in the theft of goods entitled, ‘Cargo Crime in Gulf Countries and Regional Free Trade Zones’¹. Intended as a risk mitigation tool for transport operators, its timing might be more relevant given the spike in cargo movements running-up to the seasonal festivities.

Key findings include:

  • 76% of cargo theft is from warehouse and storage facilities
  • Crime hot-spots in UAE & Saudi Arabia
  • High-value goods such as electronics targeted
  • Insider assistance and corruption plays a prominent role
  • Smuggling of illicit contraband prevalent in Free trade Zones (FTZ)

TT Club’s Mike Yarwood comments, “Our reports are intended to alert those in the supply chain to the variable and developing trends in the risk of cargo theft during intermodal transportation.  The unique combination of BSI sourced data on criminal activity and TT Club’s insurance claims records provides valuable intelligence to operators.”

“Regular updates of this nature are essential as criminal gangs are constantly altering their points of attack.  The current prevalence of supply chain congestion, delays, disruption, and in the Middle East region in particular packed warehouses, makes such information critical.”

The report highlights that warehouse thefts and supply chain corruption are the stand-outs, with a concentration on higher risk areas across the United Arab Emirates (UAE) and in the Kingdom of Saudi Arabia (KSA). The role special economic zones play in the Middle East also effects regional disparities in cargo theft.

Free Trade Zones (FTZ) are a significant feature of the regional economy and represent potential vulnerabilities for supply chains by virtue of facilitating high volumes of trade under simplified customs procedures that can provide opportunities for criminals to act. Furthermore, as Gulf Cooperation Council (GCC) economies return to pre-pandemic levels, and data provided by the International Road Transport Union (IRU) is projecting growth in trade², it is possible that criminals will also seek to exploit these higher volumes of cargo throughput to introduce illicit drugs and counterfeited products into shipments.

Umberto de Pretto, Secretary General, International Road Transport Union comments, “The IRU, together with its members and partners, continues to strengthen global transport supply chains, notably through the implementation of international standards such as TIR for compliance management and security, and through innovative training to help road transport professionals identify risks and adapt operations to avoid security threats.”

There is also valuable guidance on mitigating the risk contained in the report.  These guidelines cover avoiding the introduction of drugs into shipments; reducing theft from facilities and combating counterfeit smuggling, all of which are of particular concern in the Middle East region.

“Operators should be consistent in their vigilance, especially in the current season of festivities when the movement of gifts is at a peak” recommends Yarwood.  “TT’s intention is to help reduce theft related loss and to that end these reports offer loss prevention advice to complement the joint analysis of current trends.  As well as financial damage these incidents can cause severe operational disruption and unquantifiable reputational damage to supply chain service providers.  As a consequence, it remains of key importance to the transport industry to identify, prevent and report any criminal activity.”

¹A PDF of the full report is available for free download Here

² https://go.iru.org/9N

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 1100 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

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain.

To learn more, please visit www.bsigroup.com/supplychain