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TT Club

‘Play for Pink’ Fundraising nears Half a Million Dollars

A charity initiative by insurance services company Thomas Miller ( Americas) Inc  has very nearly broken the half a million dollars barrier in funds raised for the Breast Cancer ReseaPlay for Pink - Image 11rch Foundation over the last three years, thanks to the ‘Play for Pink’ Golf Day held last month.  A total of 112 players representing companies throughout the US maritime and insurance community and also from Venezuela and Panama participated at the Forsgate Country Club in New Jersey.

This was a corporate golf day with a difference and thanks to the generosity of the hosts, sponsors and guests, it will make a real difference in the fight against breast cancer.  $206,000 was raised to add to the ‘Play for Pink’ donations from the last two years in order to reach a total of just under $500,000. 

Thomas Miller is the manager of shipping and transport insurance mutuals, UK P&I Club and TT Club.  Mike Jarrett, president of Thomas Miller (Americas) Inc thanked all the participants, “The commitment of the UK P&I and TT Club members as well brokers, attorneys and industry consultants in supporting our fund-raising efforts is astonishing.  I’m proud to be able to bring together the maritime community in the US to help research into the eradication of breast cancer; a blight that has touched us all either directly or indirectly”.

Among the organisations participating (many representatives of which are highlighted in the accompanying images) were:

  • Royal Caribbean Cruises
  • Disney Cruise Line
  • Bouchard
  • Harley Marine
  • Phoenix Bulk
  • Seaboard Marine
  • US Shipping
  • Dunlap Towing
  • Mediterranean Shipping (MSC)
  • Chembulk Tankers
  • AP Moller-Maersk
  • Diamond S Shipping
  • OEC Group
  • Atlantic Container Line (ACL)

Thomas Miller Americas considers itself dedicated to this cause and its fundraising efforts will be on-going.  Organization of each event and recruiting of sponsors begins in May each year and the 2019 Play for Pink Golf Day is already on the calendar for 1st October.  “The maritime community in this part of the world is as altruistic as any industry group,” comments Jarrett, “And we look fo

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BSI and TT Club Issue Semi-Annual Global Cargo Theft Intelligence Report

First edition of a new regular report reveals violent truck hijackings account for 24% of cargo theft incidents globally; food and beverage sector most targeted at 27%.  Other detailed trends and risk mitigation advice included

BSI Supply Chain Services and Solutions and leading international transport and logistics insurer, TT Club launch the first joint 2018 Semi-Annual Global Cargo Theft Intelligence and Advisory Report. The report brings together threat and intelligence data from BSI’s supply chain security country risk intelligence tool, SCREEN and TT Club’s insurance risk management and loss prevention insights.

Several key findings from the TT Club/BSI report highlight the severe impact which cargo theft has on global supply chains. As highlighted in the report, the Food and Beverage sector suffers from the highest rates of cargo crime across the globe, accounting for 27 percent of all incidents; whilst Consumer Products and Hi-Tech Electronics industries suffer high rates of cargo theft as well. Transport by road is the most often targeted mode for cargo crime across the globe, attributed to over 75% of all cargo theft incidents, with warehousing being the second most vulnerable target 19 percent.

BSI and TT Club have authored this report to demonstrate their shared goal of educating the transport and manufacturing sectors about the dynamic cargo theft risks present across the globe. With the enhanced awareness of cargo crime trends across the globe, industry will be able to engage in a proactive approach in preventing cargo crime and also minimising the financial loss and brand reputation damage that results from cargo crime.

The report highlights key risk insights into the trends in the following cargo disruption-related topics, including:

  • Regional Breakdown
  • Countries of concern
  • Tactics and Trends
    • Targeted modes
    • Targeted Commodities
    • Top Locations of Thefts
    • Prevalence of hijackings
  • Incident Highlight and Analysis article

Furthermore, the report includes several pieces of loss prevention advice to counter the identified threats presented in the report. The risk mitigation advisory sections have been co-authored by BSI’s Advisory Supply Chain Security team and the TT Club’s claims and loss prevention team.

To download the BSI/TT Club Semi-Annual Global Cargo Theft Intelligence Report –2018, please click on this link- https://www.ttclub.com/loss-prevention/publications/tt-club-bsi-cargo-theft-report-h1-2018/

ENDS

About TT Club

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

About BSI

BSI is the business improvement company that enables organizations to turn standards of best practice into habits of excellence. For over a century BSI has championed what good looks like and driven best practice in organizations around the world. Working with over 86,000 clients across 193 countries, it is a truly international business with skills and experience across a number of sectors including automotive, aerospace, built environment, food, and healthcare. Through its expertise in Standards Development and Knowledge Solutions, Assurance and Professional Services, BSI improves business performance to help clients grow sustainably, manage risk and ultimately be 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, auditing services, audit compliance and risk management software solutions, and advisory services. Our mission is to help corporations, governments and associations identify, manage and mitigate global supply chain risks and maintain world class governance risk and compliance programs.  Our holistic supply chain risk management suite is designed to predict and visualize risk, and develop robust risk mitigation and compliance management programs to protect your supply chain, brand and reputation. Our intelligence-infused supply chain solutions and global network empower our clients to understand global supply chain risk with unequaled precision.

To learn more, please visit www.bsi-supplychain.com

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Young International Freight Forwarder Award Enters its Third Decade with Announcement of this Year’s Winner

181001 YIFFY Award Winner

(l to r) Thomas Sim, Chairman of FIATA’s ABVT Group; Award Winner Louis Perrin, Hemisphere Freight (UK); Michael Yarwood of Sponsor, TT Club; Huxiang Zhao, immediate past President, FIATA

The FIATA award programme, exclusively sponsored by freight insurance specialist TT Club, was completed with the 2018 Winner, Louis Perrin of Hemisphere Freight representing BIFA (UK), announced and presented with his award at the FIATA Annual Congress in New Delhi, India this week.

01 October, 2018

The future sustainability of professional standards of skill and knowledge in the global freight forwarding community depends on training and motivation of the young recruits to the industry. For twenty years FIATA has maintained its efforts to nurture such talent through its annual Young International Freight Forwarder of the Year campaign.

The competition is both challenging and rewarding for the candidates, who are nominated by their National Forwarding Associations to take part in the competition.

Each candidate is required to submit a 6,000 word dissertation outlining an import and export shipment from their native country. The four regional finalists are then 

invited to attend the World Congress to present their dissertations in person to a panel of judges. This experience provides each with an invaluable learning and networking experience. 

On this occasion the overall winner, Louis Perrin was joined by the three other regional finalists Tjaka Segooa representing SAAFF (South Africa), Kendyl Baptiste representing CIFFA (Canada) and Sarah Skrypec representing CBFCA (Australia).

As an organisation committed to encouraging the highest standards of best practice in the freight industry, specialist insurance provider TT Club has been supporting the award through its sponsorship for all of its twenty-year history. The award winner will be able to attend two one-week training sessions with the TT Club at one of their regional headquarters in London, New Jersey or Hong Kong.

TT Club’s Senior Loss Prevention Executive, Mike Yarwood on presenting the winner with his award commented, “In keeping with FIATA’s commitment to encourage professional skills development, we will continue to invest, through this programme and others in the training and education of logistics and supply chain professionals around the world. We are delighted that the YIFFYA programme grows in popularity with a total of 17 entries this year; ranging in content from the transport of live plants, super cars and aircraft components to Antarctic ice and even a rhinoceros. Long may our future logistics leaders learn, improve their skills and enthusiastically report in their achievements.” Mr Thomas Sim, Chairperson of the Advisory Body Vocational Training looked forward to next year’s participants and to reading the impressive dissertations that result from this competition. He invited all FIATA Association Members to participate.

To learn more about the YIFFY Award, please join us through the following social media platforms.

Twitter:       @yiffya

LinkedIn:     https://www.linkedin.com/groups/3670002

Facebook:  https://www.facebook.com/groups/252961425173993/

About TT Club

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

About FIATA

FIATA, the International Federation of Freight Forwarders Associations, was founded in Vienna, Austria on May 31st 1926.  It is a non-governmental organisation that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 10 million people in some 160 countries. FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations (inter alia ECE, ESCAP, ESCWA, etc.), the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL) as well as many other UN related bodies, e.g. the World Bank. It is recognised as representing the freight forwarding industry by many other governmental organisations, governmental authorities, private international organisations in the field of transport and logistics, such as the European Commission (through CLECAT), the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), the World Trade Organization (WTO), etc.

For further information, please go to: www.fiata.com 

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TT Club Emphasises Need for Cargo Integrity Ahead of IMO Meeting on Container Safety

London, 10 September, 2018

The International Maritime Organization’s (IMO) latest meeting of the Sub-Committee on Carriage of Cargoes and Containers (CCC) takes place in London this week and the international freight insurance specialist, TT Club is calling for more urgent action on issues pertaining to the safety of container transport.

For some time now the insurer has been drawing both industry and regulators’ attention to the need for greater ‘Cargo Integrity’, by which is meant the safe, secure and environmentally sound packing, handling and transport of all goods in containers and other transport units, in compliance with conventions (such as SOLAS[1]) and codes, including IMDG Code[2] and the CTU Code[3]

TT Club’s Risk Management Director, Peregrine Storrs-Fox comments, “Achieving such Cargo Integrity across the complex web of the international freight supply chain is a big ask and we are in little doubt that a comprehensive result will take time to achieve.  However many industry bodies are making significant strides, particularly in the areas of dangerous goods identification, declaration and handling as well as container weighing and packing.  We are calling on the regulators, in this case the IMO, to assist in taking action to identify appropriate legislative and behavioural change that will improve safety and certainty of outcome.”

A primary concern is the problem of mis-declared dangerous goods, with some sources suggesting that container fires occur on a weekly basis and that a major container cargo fire engulfs a ship at sea on average once every 60 days.  Such incidents are costing seafarer lives, result in loss and damage to goods and ships running into hundreds of millions of dollars, impact the environment and are significantly disrupting supply chains serving markets throughout the world.

TT Club has analysed data pertaining to such losses and contributed the aggregated experiences of those it insures, carriers, forwarders, ports, terminals and cargo owners, to help inform the cargo handling trade association, ICHCA, which benefits from consultative status at IMO, in its submissions to CCC sitting this week.

There are both general and specific issues addressed in these submissions, which are intended to urge the committee members to propose positive action.  Storrs-Fox emphasises just two of the more urgent initiatives required, “Reports by IMO member states of container inspections are woefully few; just seven countries submitting reports this year.  Furthermore, TT Club and ICHCA have submitted details of the Top 10 commodities that may lead or have led to incidents – not all of which are classified as dangerous goods.  Understanding in detail the parameters in force for the various stakeholders involved with such cargoes should inform how advances in safety can be achieved.”

In addition, there is a need for increased regulatory coordination and harmonisation.  The TT Club/ICHCA submission recognises the need for greater collaboration by all stakeholders in industry and government to engender consistency in the guidelines that all may follow and promote greater safety in transporting cargoes around the world.  “As a step towards the goal of true Cargo Integrity, we are calling on the IMO to initiate a correspondence group to advise on the best means of achieving such unified guidelines,” concludes Storrs-Fox.

For full details of the TT Club/ICHCA Submission to IMO please click here ICHCA CCC5    Further information on current regulations and codes of practice, please refer to TT Club’s latest newsletter, TT Talk www.ttclub.com/loss-prevention/tt-talk

[1] International Convention for the Safety of Life at Sea (SOLAS), 1974 as amended

[2] International Maritime Dangerous Goods Code

[3] 2014 IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units

About TT Club

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

 

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Rising to the digital challenge in shipping

  • Joint TT Club & McKinsey report concludes that the future is digital
  • ‘Brave new world?’ examines two potential future digital scenarios, one of which is termed ‘Digital reinvention’

Industry experts, looking at the future for the container transport industry over the next 25 years, see the possibility of traditional supply chain service providers being significantly challenged. Increasingly digitally enabled services, which can directly control the flow of goods from factory to consumer, will become progressively more influential.

Indeed, these ‘Digital natives’, that apply technology to previously unsolvable challenges (as has been seen with Amazon and Alibaba), as well as ‘scrappy tech start ups’, fast-moving newcomers assuming an integrator role, could transform and re-shape the container transport industry.

In their ‘Brave new world? – Container transport in 2043’ report, leading international freight transport insurer TT Club, in conjunction with global management consulting firm McKinsey, have looked at the future of containerised trade, how value can be created and who the ‘winners’ could be within the industry by 2043.

Having carefully garnered the perceptions of leading figures from a cross section of the transport industry and beyond, the report highlights that an efficient containerised supply chain, acting like a conveyor belt from factory to consumer, could be one of the significant changes in the future outlook. 

It acknowledges the well-known paradox of cargo owners and end-consumers enjoying lower costs, while industry players struggle to share in the value-creation and highlights six potential sources of value creation.

180806 Six Sources of value creation

 

1.    Greater economies of scale – The exceptional expansion in ship sizes has reverberated through the rest of the container supply chain. A key question for the future is the extent to which customers prefer lower unit costs or greater flexibility
2.    Flexibility – Do customers value faster, more direct services? If so, scale would be deprioritised in favour of flexibility and modularity
3.    Supply chain reliability and predictability – The other side of the flexibility coin, as e-commerce changes consumer expectations, driving improved cycle-times and transparency
4.    Consolidation and integration – So far seen in limited segments of the industry, which is still fragmented compared to some comparable industries and with potential of optimisation through vertical integration 
5.    Automation and productivity hold the potential to improve reliability and service levels, while reducing structural cost#
6.   Environmental performance – Responding to the challenges relating to fuel and emissions but also the growing societal sensitivities towards protection of the environment

 

 

The container transport industry today is entering a period of incredible experimentation as different players try to find a winning formula to create value. The Digital Reinvention scenario goes some way to utilising the six suggested sources of such value creation, resulting in a 2043 landscape in which the incumbents of the container transport industry lead what is fundamentally a digital future, where trade developments may not be the key driver. In this world, flexibility, resilience and optimisation are paramount, applying the ‘last mile’ lessons to deep sea trades. Furthermore, vertical integration becomes the strategic imperative in order to build effective digital platforms and operating systems that both satisfy, and benefit from, end to end demand. Scale economies lose value, as flexibility and deep integration into customer supply chains  increase, providing transparency, predictive capability and high reliability.

In this 2043 scenario, as the report states, “Digital, data and analytics have indeed become the fundamental driver of value creation. Players with significant asset footprints lead the way, with proprietary data that allows them to out-compete any potential disruptive entrant. Data and technologies like blockchain are used in creative ways and many digital native suppliers of software and analytical solutions thrive.”

Charles Fenton, TT Club’s CEO highlights the thought-provoking nature of the research:

“The container transport industry faces a complex future. The industry experts in this research are generally agreed that the physical characteristics of the industry won’t change radically. However, automation holds enormous potential; digital, data and analytics will be central to competitive dynamics, and the business models of industry leaders in 2043 could look very different from today. Digital reinvention is just one of four potential scenarios that our report envisages.  Its in-depth challenge to our perceptions of the future is well worth close consideration. ”

To download a copy of ‘Brave New World?’ please visit: https://www.ttclub.com/news-events/brave-new-world/

ENDS

About TT Club

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

 

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Regional Winners of FIATA’s Young International Freight Forwarder of the Year Award Announced

London, 11 July 2018

In the year that leading international freight insurer TT Club celebrates its 50th anniversary, FIATA’s Young International Freight Forwarder of the Year Award (YIFFYA) also passes a significant milestone. The 2018 competition witnesses the 20th year of support and collaboration between TT Club and FIATA. Sponsorship of FIATA’s YIFFYA continues to be a priority for TT Club. 

TT Club believes the annual award and the associated entry process is crucial in identifying, recognising and encouraging young talent throughout the freight forwarding community around the world. 

The four regional finalists, selected this year from among 17 entries representing national forwarding associations globally, are:

Region Africa/Middle East:   Miss Tjaka Segooa, South Africa – SAAFF

Region Americas:   Mrs Kendyl Baptiste, Canada — CIFFA             

Region Asia/Pacific:   Miss Sarah Kate Skrypec, Australia — CBFCA           

Region Europe:  Mr Louis Perrin, UK – BIFA 

The entries this year were, as ever, of a high standard and drew from a wide range of dissertation topics. The work of the entrants demonstrated the complexity of processes carried out within the global supply chain and the logistics skills required to serve it.

The diverse subjects covered by the dissertations of this year’s entrants included live plants, super cars, flexi-tanks, aid shipments, aircraft components, Antarctic ice and a rhinoceros.   

Later this year the regional finalists will travel to FIATA’s World Congress hosted by the Federation of Freight Forwarders’ Associations India in New Delhi, India (26th – 29th September) in order to present their dissertations to the steering committee and for the final judging and announcement of the international award winner. 

The prize to be awarded to the winner principally consists of practical and academic training, including a week based at one of TT Club’s regional centres in London, Hong Kong or New Jersey plus a week in TT Club’s Head Office in London. Additionally, one year’s subscription to the International Transport Journal (ITJ) is granted to all four regional winners. 

Mike Yarwood, TT Club’s Senior Loss Prevention Executive and Chairman of the Award Steering Committee commented, “This award aims to contribute to the development of quality professionals in the freight forwarding industry and rewards young talent with valuable training. At TT Club, we are proud to have been a sponsor of the award since its inception and firmly believe in the importance of nurturing the talents and enhancing the skills of young individuals in freight forwarding.”

Thomas Sim, Chairman of FIATA’s Advisory Body Vocational Training, mentioned, “For an emerging young freight forwarder, the YIFFYA is a great platform to immediately be seen by such a wide audience and the press,  and the winning candidate receives generous support from the TT Club team and sponsor. I am extremely excited for this amazing opportunity to showcase young professionals in the pursuit of a successful career.”

ENDS

Notes to editors

TT Club

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.

About FIATA

The International Federation of Freight Forwarders Associations (FIATA) was founded in Vienna, Austria on 31 May 1926. It is a non-governmental organisation that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 10 million people in some 160 countries. FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations, the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL) as well as many other UN related bodies such as the World Bank. It is recognised as representing the freight forwarding industry by many other governmental organisations, governmental authorities, private international organisations in the field of transport and logistics, such as the European Commission (through CLECAT), the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), and the World Trade Organization (WTO). Learn more at www.fiata.com.

Hans Guenther Kersten, Director General, kersten@fiata.com

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A Twenty-five Year Partnership in Safeguarding Russian Freight

1807 TT Club 50th Anniversary Dinner in Moscow

TT Club and its partner in Russia, the CIS countries and Baltics, Panditrans celebrate both TT Club’s 50th anniversary and their twenty-five year partnership in providing a unique insurance and risk management service to the freight industry.  TT Club insureds, both within the territory and those trading with the region, have enjoyed tailored extensive cover and accurate trusted advice on the special characteristics of this particular transport environment.London, Moscow 10 July, 2018

There has been a steady increase in importance of the container to Russian trade that began some twenty-five years ago and it was then, in 1993, that Panditrans became TT Club’s representative in Russia.  At this time the Club wanted to have experts on the ground in what was, and remains, a rapidly changing freight transport environment serving one of the largest potential consumer markets in the world. 

Panditrans, with its offices in Moscow, Russia and Odessa, Ukraine, as well as contacts throughout the region, has been a perfect fit with TT Club, serving the mutual’s membership of shipping lines, port and terminal operators and freight forwarding and logistics companies.

The fact is that Russia presents a number of particular challenges to freight traffic.  Customs clearance errors in documentation can result in the confiscation of cargo, while uninsured subcontractors, and even fake ones, remains an on-going problem.  It still can be quite difficult to find a subcontractor with appropriate liability insurance with the result that freight forwarders hire uninsured carriers without clearly understanding that there is little chance of holding it liable for any loss as it has very little capital and few assets.

In addition, the sub-standard nature of the region’s road and rail infrastructure causes more incidents that damage cargo and transport asset than might be expected to occur in other parts of the world.

“It is this type of circumstance that is very particular to the Russian transport environment,” comments TT Club’s Regional Director for EMEA, Kevin King.  “This makes it essential to have indigenous, extensive expertise at the disposal of the Members.  I’m very pleased to say that Panditrans has, by partnering with the Club for the past twenty-five years, provided that expertise. I hope that TT Club Members will benefit from our partner’s guidance in a challenging political, economic and legislative environment for a long time to come.” 

During this quarter of a century TT Club and Panditrans together have become adept at advising Members of the potential pitfalls in transporting freight to, from and around Russia and therefore been able to assess risk comprehensively and advise on appropriate cover. 

Throughout this period Panditrans has handled in excess of 20,000 claims, benefiting TT Club Members with its in-house surveying, legal and customs expertise, together with its knowledge of the market to allow the identification of the most appropriate option to investigate and defend a claim.  Furthermore, Panditrans’ extensive contacts with insurance and regulatory inspectorates, customs authorities and law enforcement bodies throughout the territory, are unique, enabling the complete legal and ethical position to be established.

To mark TT Club’s 50th anniversary and the 25th anniversary of this successful partnership, TT Club and Panditrans held a celebratory dinner at the iconic Metropol Hotel in central Moscow in April. Over 150 guests attended and included some of the five hundred companies insured by TT Club in the region from Belarus, Ukraine, Lithuania, Latvia, Estonia and of course Russia.  An honoured guest was Vladimir Tian, the General Director of Sovtransavto, TT Club’s first and oldest Member that began its relationship with the Club in 1989.

TT Club was founded in 1968 by some of the early adopters of the unitisation of cargo, the container. From its inception, the Club has had a philosophy of listening to its Members and sharing their experiences to make the industry safer and to minimise risk whilst lobbying for and embracing change when and where it’s required. The Club has marked its 50th anniversary by issuing a report entitled ‘Brave new world? – Container transport in 2043’. This is a wide-ranging, qualitative report, produced jointly with McKinsey & Company, summarising the thoughts and opinions of industry leaders on what the future holds for the container industry.

Kirill Berezov, Managing Director of Panditrans commented, “We are proud of our long and successful history with TT Club.  Both the number and variety of our guests at the celebration is testimony to the standard of service Panditrans and TT Club together have provided to the market.  Senior figures from both global carriers and forwarders, as well as Russian transport companies, ports and rail and road operators have supported us.  Brokers also have shown their appreciation of our services for which we are grateful.”

ENDS

About TT Club

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

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‘Brave new world?’ – What industry leaders really think the future holds for container transport

~  A comprehensive report into the global container transport industry authored by TT Club and McKinsey ~

Coinciding with its 50th anniversary, leading international freight transport insurer TT Club, in conjunction with global management consulting firm McKinsey, have today published ‘Brave new world? – Container transport in 2043’, a wide-ranging, qualitative report summarising the passionate thoughts and opinions of industry leaders on what the future holds for the container industry over the next 25 years.

Rather than focusing on purely quantitative research and analysis of trends, the authors of the report interviewed over 30 highly respected industry leaders and experts from a wide cross section of the industry. The aim was to gain a qualitative insight into the perceptions and confidence of the people who have greatest experience in the industry and are best placed to predict the sector’s future. These included Board Members of TT Club, but importantly other supply chain professionals, financial intermediaries, law firms, and disruptors and innovators.

Following the research, TT Club and McKinsey, in ‘Brave new world?’ have drawn five broad conclusions as to where the industry is going and then have examined four specific potential future scenarios together with their implications. Two of these scenarios centre on digitalisation and two on trade development, or the lack of it.

The development of containerisation over the past fifty years is well documented. The industry is now well-established at the centre of international trade with over 90% of consumer goods (TVs, toys, clothing, furniture) and many raw materials being shipped in these metal boxes. Yet despite the success of the container, the returns for the average container liner operator or freight forwarder have lagged the cost of capital over the last two decades. There have only been a few winners who have found a sustainable recipe for value creation.

So what will change in the future or will the familiar boom and bust cycle continue? ‘Brave new world?’ reports five broad conclusions:

  1. The physical characteristics of the industry are unlikely to change, as the container and the ships that carry them will still exist over the next 25 years
  2. Trade flows will become more balanced across trade lanes as incomes converge between East Asia and developed economies, and the emerging economies in South Asia and Africa “catch up”
  3. Automation will be broadly adopted across the value chain, especially on the landside in ports, terminals, rail and trucking, to unlock significant efficiencies
  4. Digital, data, and analytics will cause a fundamental shift in the sources of value creation and customers will expect a high level of reliability, transparency and user-friendliness
  5. The industry leaders in 2043 will look very different; some will consolidate, others may change their business model. Some will be “digital natives”, either start-ups or e-commerce players optimising the container transport leg of their supply chain

Drawing together these broad conclusions, the report identifies the key sources of value creation for the industry, leading to a pivotal debate as to whether the future is fundamentally driven by trade or by digitalisation. From this, the authors derive four possible outlooks for the future in thought-provoking articulation.

Charles Fenton, Chief Executive Officer, TT Club, says:

“TT Club was founded in 1968 by some of the early adopters of the unitisation of cargo, the container. We have been keen to mark our 50th anniversary of the start of a Member-owned, mutual insurer by launching this report. From inception, TT Club has had a philosophy of listening to its Members and sharing their experiences to make the industry safer and to minimise risk whilst lobbying for and embracing change when and where it’s required.

“Therefore this piece of research, asking industry leaders what the future of the industry may look like and issuing ‘Brave new world?’, is I think a most appropriate project. We believe the container transport industry will face challenges as technology changes the environment, but we are confident that an industry that has shown itself adept at change will rise to meet these challenges.

“The container’s simplicity and modularity has made it the mode of choice for transporting many goods across the globe. This examination of the wisdom and perceptiveness of the industry’s opinion formers is, we believe, relevant in exploring how such strengths will develop the container transport environment by 2043.”

Martin Joerss, Senior Partner, McKinsey, says:

“More than 50 years after the introduction of the container, the container transport industry faces the transformative rise of digital, data, analytics, and automation. There is a range of futures where digital fundamentally changes the industry’s economics – for the benefit of both customers and industry participants – but getting there will require vision and relentless execution.”

For further details, including a full transcript of the report please visit:

www.ttclub.com/tomorrow 

Notes to editors

About TT Club

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

 

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TT Club announces positive financial results for 2017 and A.M. Best affirms A- (Excellent) rating

TT Club, the leading international transport and logistics insurance provider, today announces its financial results for the year ended 31 December 2017, and A.M. Best affirms its A- (Excellent) rating

Highlights:

  • $181.8 million gross earned premiums (2016: $177.8 million)
  • $7.3 million surplus for the year (2016: $5.2 million)
  • Total assets of $597.6 million (2016: $613.0 million)
  • Total surplus and reserves $193.1 million (2016: $185.8 million)
  • 2017 financial year combined ratio of 97.0% (2016: 95.3%)
  • A.M. Best affirms financial strength rating  as  A- (Excellent)

Chairman of TT Club, Ulrich Kranich, said:

“The Club has taken in its stride hurricane-related claims that impacted a number of Members’ operations in the Caribbean and North America in August and September 2017. To have done so in the context of the highest ever level of insured losses on record from natural catastrophe events is a notable achievement and is especially pleasing given this year we are celebrating the 50th anniversary of the Club.

“The Board’s key objective is to maintain at all times its A- (Excellent) financial strength rating awarded by A.M. Best. This rating was affirmed by Best on 24 May 2018.The business plan adopted by the Board is set to drive the business forward, while ensuring the rating is maintained, and financial performance in 2017 was in line with the business plan.

“In particular, the financial year combined ratio, which is the main measure of operating performance, was within the Board’s target range, despite the claims arising from the three hurricanes. As a mutual, the finances are managed to maintain a balance between Members’ premiums and claims on the Club, together with the expenses of running it. A small surplus is targeted as required to ensure the Club’s capital strength is maintained to support on-going growth.

“In December 2017, the Club repaid its $30m long-term subordinated debt which was taken out in 2006 to enhance the Club’s capital strength. This will lead to a saving in interest payable on the debt of US$ 1.2 million per annum. The capital was fully admissible for both regulatory and rating purposes and has given the Club valuable financial flexibility in the period since 2006.

“New business performance was positive in the year, and net new business was slightly higher than budget, which is in part a result of the strong retention levels achieved by the Club in 2017. The Managers are prudent in writing new business in the current, very competitive market conditions, as it is very important to prioritise managing the Club’s loss ratio.

“Attritional claims performance in 2017 was as expected. The Club’s book of business is now a healthy mix of Member sizes, sectors and geographies, and the impact of this is that in respect of attritional claims, the loss ratio fluctuates within a very small range each year.

“Large claims performance in the year was dominated by claims from the three North Atlantic hurricanes, Harvey, Irma and Maria. Aon Benfield has estimated the industry’s insured losses from these hurricanes to be around US$ 80 billion. Set in this context, the Club’s estimated losses from the three hurricanes, at less than US$ 10 million, are testament to the success in ensuring the Club is managing its gross and net exposure successfully.”

An official announcement from A.M. Best stated that TT Club’s ratings reflected: “its balance sheet strength, which A.M. Best categorises as very strong, as well as its adequate operating performance, and appropriate enterprise risk management”. The announcement also referenced TT Club as a mutual with “a strong position in its niche market, which is supported by its excellent member retention and global presence.”

The TT Club’s 2017 Annual Report and Financial Highlights can be downloaded here: https://www.ttclub.com/brokers/document-store/

Ends  -

Notes to editors

TT Club

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.

Thomas Miller

Thomas Miller is an independent and international provider of insurance, professional and investment services.

Founded in 1885, Thomas Miller’s origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Thomas Miller also manages insurance facilities for all the self employed barristers in England & Wales, as well as trustees of pension schemes, patent agents and housing associations.

Principal activities include:

  • Management services for transport and professional indemnity insurance mutuals
  • Investment management for institutions and private clients
  • Professional services
  • Building defects insurance

www.thomasmiller.com

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TT Club Highlights Cyber Activity is the Norm not the Exception

Speaking at the 6th Med Ports Conference in Livorno (Italy) last month, TT Club’s Andrew Huxley highlighted that cyber activity is a daily operational risk which needs to be addressed urgently. 

London, 3rd May, 2018

According to freight transport specialist insurer TT Club, supply chain operators are vulnerable to disruptive cyber activity, from criminals or other perpetrators, impacting operations and putting commercially sensitive or confidential data at risk.

Huxley explained, “Many in the marine supply chain business have operations characterised by widespread office networks and a reliance on multiple third party suppliers. Often IT systems are of an in-house, legacy nature, which may be poorly protected by security software.” Specifically, ports and terminals are exposed to threats as they are at the confluence of physical and communications activity.  The data interfaces are complex and the drive towards interconnected control systems and efficient processes, exacerbates the opportunities for outside malicious interference. Most of all, at the ship/port interface there is much opportunity to cause loss and damage, far beyond the persistent exposure to criminal activity.

The problem is intensifying. At a global level reports by AV-TEST indicate that on average 4.2 new files of malware code were generated every second last year.  From a maritime supply chain perspective an example of serious IT incursion in 2017 was the spoofing attack on over twenty ships in Novorossiysk (Russia). Navigation experts claim the spoofing sent false signals and resulted in ship-board equipment providing false information as to the location of the ships. There is speculation that this incident could have been a state-sponsored attack. A second incident, the NotPetya strike, impacted many in the supply chain, including AP Moller-Maersk, resulting in large scale disruption and substantial costs for those immediately impacted and their partners.

As to the extent of attacks, research that is available reveals a worrying situation.  “A BIMCO survey in 2016 suggested that more than 20% of respondents admitted to cyber attacks and last year a SeaIntel Maritime Analysis report estimated that 44% of the top 50 container carriers had weak or inadequate cyber security policies and processes,” stated TT Club’s Huxley.

The US Coast Guard issued a draft Navigation and Vessel Inspection Circular (NAVIC) titled ‘Guidelines for Addressing Cyber Risks at Maritime Transportation Security Act (MTSA) Regulated Facilities’. The circular currently under review requires incorporation of personnel training, drills and exercises to test capabilities, security measures for access control, handling cargo, delivery of stores, procedures for interfacing with ships and security systems and equipment maintenance.

Additional national and regional initiatives, exemplified in the European Union by the Directive on Security of Network and Information Systems (NIS Directive) and General Data Protection Regulation (GDPR), are indicative of the development of regulatory expectations. While the latter does not directly address it, cyber protection is intrinsically at the core of data protection. Such initiatives, together with known vulnerabilities, highlight that cyber security is ever more pertinent for ports and terminals, as well as the broader supply chain community.

TT Club, jointly with UK P&I Club (also managed by Thomas Miller) and cyber security consultants NYA, has published a paper entitled ‘Risk Focus: Cyber – Considering Threats in the Maritime Supply Chain’.  This is available as a free download here

Huxley introduced the paper in his Livorno presentation, “As an insurance mutual, TT Club has always been dedicated to minimising risk through its loss prevention efforts. By publishing ‘Risk Focus: Cyber’ we hope to generate more awareness of the risks to help combat the situation.  Ultimately, the main threat continues to derive from human error – downloading malicious content, opening an unsecured web browser or falling victim to social engineering attacks and phishing scams.”

Awareness of the nature of potential attacks and the need for protection is clearly a crucial initial step towards thorough risk assessment and mitigation – and this needs to become part of corporate culture.

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, 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. TT Club is managed by Thomas Miller.

www.ttclub.com

About Thomas Miller

Thomas Miller is an independent and international provider of insurance, professional and investment services.

Founded in 1885, Thomas Miller’s origins are in the provision of management services to mutual organisations, particularly in the international transport and professional indemnity sectors; where today they manage a large percentage of the foremost insurance mutuals. Thomas Miller also manages insurance facilities for all the self-employed barristers in England & Wales, as well as trustees of pension schemes, patent agents and housing associations.

Principal activities include:

  • Management services for transport and professional indemnity insurance mutuals
  • Investment management for institutions and private clients
  • Professional services including legal services, claims and captive management
  • Managing General Agency

www.thomasmiller.com 

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