Transport communications

Portcare International is the press relations consultancy for the shipping and logistics industry. Formed by transport people for transport people. We can truly claim to understand our clients’ needs and ‘talk the same language’. Portcare provide effective, value for money PR to some of the industry’s best-known names.

TT Club

Safety innovators acclaimed at annual award ceremony

From a shortlist of three chosen by judges from a total of twenty-eight outstanding entries for this year’s competition, the partnership between Cross Currents 88 and G2 Ocean AS was announced as the winner of the TT Innovation in Safety Award, at a presentation ceremony in London today.  The two highly commended innovations came from Royal Haskoning DHV and Trendsetter Vulcan Offshore.

Winner Photograph : (l-r) Richard Steele, ICHCA; David Robinson MBE; Jan Andreassen, G2 Ocean; Thomas Keenan, Cross Currents 88; Mike Yarwood, TT Club

Independently organised by international cargo handling association ICHCA, the TT Club Innovation in Safety Awards are dedicated to both organisations’ mission to promote and improve safety in all operational aspects of the supply chain.  In encouraging innovation, the Awards are aimed at showcasing products, processes and services that address safety issues, to as wide an audience as possible, in an increasingly complex and challenging industry.

The successful shortlisted entries offered solutions to preventing potentially fatal falls in cargo holds, enhancing mooring safety and improving the safety and stability of containers on board ships.  In a competitive final “Spyder Netting” from Cross Currents 88 and G2 Ocean AS was declared the winner. CEO of ICHCA, Richard Steele said, “Falls from height during cargo operations is a vitally important risk to be managed. Spyder Netting, a thin layer of plastic film which can be rolled out across gaps and secured between layers of cargo, has already saved lives. Cross Currents has been personally thanked by a stevedore whose fall was arrested by the netting.”

At the presentation ceremony, attended by representatives of many of the Award entrants and safety professionals from across the global industry, all three short-listed innovations were revealed in detail.  Cargo handling veteran David Robinson delivered a keynote speech and presented the award to the winners.

The wide-ranging safety challenges tackled by this year’s award entrants fell into four main categories. Both the advantages of using data collection in providing insight into safety improvements and the growth of learning technology in training using virtual simulation featured heavily. In the operational environment, practical products to secure cargo and distance human involvement through automation were put forward.  Finally, segregating machines from people was a primary aim of many. This goal is crucial in improved safety, as the situation causes the second highest amount of severe consequence incidents in cargo operations.   

This, the sixth iteration of these unique and prestigious awards, is part of ICHCA and TT’s jointly held value to encourage innovative solutions to crucial safety challenges. “However, they are just part of our efforts,” said TT’s Mike Yarwood.  “We want to nurture widespread and varied advances in safety innovation, so we seek to give all entrants the oxygen of visibility in the marketplace to help develop and grow their initiative to benefit cargo handling operations globally.”

So, the partners aim to provide a tool kit that helps promote these ground-breaking ideas in a number of ways.  A Digest of all the award entries is available   NOW. In the months between awards cycles, entrants are invited to various discussion forums, conference and exhibition appearances, including the TT/ICHCA Safety Village at TOC Europe in June (details HERE).

All these opportunities seek to enable and act as communications conduits for innovative thinking in safety, the partnership helps link innovators with those looking to invest in safety measures and operators seeking solutions.  Through these efforts, the relevance of the innovative products and services can also be honed to maximum effect, and their place in established safety practices of the future cemented.

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 1200 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

TT Club’s Laurence Jones announces retirement plans

After a career of over 50 years, the last 18 of which spent as Global Risk Assessment Director at cargo handling insurance specialist TT Club, Laurence Jones has announced that 2024 will be his final year.

London, 20th February 2024

During his 18 years with TT, based in Sydney, Laurence has consistently championed safety in the port and terminal industry to assist the TT membership, and the industry at large, in becoming safer and more secure. His range of industry experience has provided considerable value to TT, further enhancing the insurer’s global reach and credibility in the broader industry.

“In his time with us Laurence has applied his deep expertise of port and terminal operations and enthusiasm for improving safety and security for the benefit of the Membership,” says Peregrine Storrs-Fox, Director Risk Management.  “I’m pleased that Laurence has agreed to dedicate this year to continuing to transfer his skills and knowledge within the business, including to last year’s newcomers, Neil Dalus and Josh Finch, who are already expanding the capacity of the loss prevention function to deliver TT’s high standards of risk assessment and risk management output.”

As a qualified engineer, Laurence’s 52-year career has spanned general management, operations, maintenance, design, construction, mechanical, electrical and civil engineering, industrial relations, safety, environment, risk assessment and auditing.

These varied skills have been brought to bear in the fields of bulk materials handling (terminals, open cut mines and underground mines), container terminals, logistics (rail and road), manufacturing (steel) and insurance. Prior to joining TT, Laurence worked 26 years for BHP Billiton and then spent eight years in container terminals with P&O Ports.  After assisting with the integration of P&O Ports and DP World, he joined TT in December 2006 for a role that spanned internal advice and support in underwriting decisions and claims assessment, together with hands-on approach with TT Club’s membership to highlight first-hand the areas where risks may be reduced.

Many will recognise Laurence from his extensive presence at a wide range of industry events. As a moderator, Laurence has demonstrated a talent for probing panellists and drawing questions from the audience.

Indeed, ever active in the wider transport and logistics industry, Laurence has participated actively on ICHCA boards and Technical Panels. He has also energetically supported the Port Equipment Manufacturers Association (PEMA), specifically promoting safety from the perspective of loss experience, as well as with the International Association of Ports & Harbors (IAPH).

While TT will continue to enjoy Laurence’s presence for the remainder of this year, he will be missed by his colleagues, his contacts within TT’s membership and so many of his friends and associates across the global industry.

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 1200 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

TT Club : Safety culture essential for a sustainable supply chain

Future sustainability of the sometimes fragile global supply chain must revolve around a fundamental safety culture throughout all operators and organisation involved, determines International freight and cargo handling insurer TT Club.

“The importance of culture within an organisation, particularly where safety is concerned cannot be underestimated,” says TT’s Logistics Risk Manager Josh Finch.  “Safety is everybody’s responsibility and everybody has a voice in safety matters.  A strong safety culture will positively impact safety performance.”

In an increasingly risk intense global supply environment, a greater emphasis on safety will help avoid critical incidents such as fire, cargo damage and vessel loss, which further exacerbate shortages, congestion and human suffering. This message pervades the loss prevention work of TT and is exemplified in a wide variety of studies and reports published in the insurer’s latest review of current and on-going risk trends – A Year in Focus*.

TT’s view of an pervasive safety culture is represented by a number of contributions in this publication.  Analysis of its own claims data and detailed research into a range of risks across the supply chain results in reports on and advisable actions to mitigate invasive pest in freight containers and increased cyber security risk as ports automate; increased customs documentation errors and clandestine immigration threats; help from drone technology and the dangers of plastic micro pellet spillages.  Attention to a broad spectrum of hazards is essential in developing the all important safety culture.  

“TT has recently witnessed a renewed focus and commitment towards loss prevention activities, with additional emphasis placed on the Club’s mission statement to make the industry safer, more secure and more sustainable,” comments Loss Prevention Managing Director Mike Yarwood.  “Greater safety goes hand-in-hand with enhanced security and consequently sustainability. TT’s mutual ethos demands that we  guide those we insure – and indeed the wider industry – in all aspects of risk through the container transport and global logistics supply chain. Via our latest Year in Focus we aim to add to the large cannon of knowledge and guidance.”

*Available HERE for free download

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 1200 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

TT Club seeks to mitigate a common cause of workplace injury

Falling from height is a leading cause of workplace fatalities and injuries.  International freight transport and cargo handling insurance specialist TT Club is warning of this danger in the transport, port and logistics industries, environments in which, unfortunately elevated working locations are often unavoidable.

Continuing with its series of TT Briefs aimed at simplifying complex risk issues by providing easily digestible information and guidance, TT has published its latest Brief, Understand and mitigate the risks of working at height.’ In such working environments that are common throughout the supply chain, prioritising safety is of the utmost importance to prevent accidents and injuries. In this Brief TT looks at the steps that should be taken to reduce such risk, ensure the safety of your workforce when working at height, avoid exposure to injury claims and safety prosecutions, and reputational damage.

The series was Introduced three years ago by the specialist liability insurer; a TT Brief* is a two-sided infographic-style advice sheet, each aimed at a specific risk.  It is designed to offer guidance on general good practice to avoid loss.  It also has the potential to act as a poster to be utilised in the workplace so as, always in plain sight, it is a constant reminder to both employees and management.

TT’s Managing Director, Loss Prevention Mike Yarwood pinpoints the relevance of the latest Brief, “Globally, there is no consistent regulation that outlines at which height a worker is considered to be at risk of serious injury should they fall. Therefore, simply complying with regulated safety provisions may not be enough to protect a workforce from potentially fatal accidents. Our advice therefore is a considered guideline on the minimum measures that employers, be they warehouse, port or terminal operators, road hauliers or other carriers, should put in place.”

Recognising the range of operational conditions across the transport and logistics industry, the advice raises a number of points to consider relating to infrastructure design and improved working practices.

Safe stowage of cargo at various points in the supply chain is also discussed, as is the use of technology such as drones to carry out inspections or stocktaking, and deployment of fall prevention platforms.  Not least, training programmes and the encouragement of a strong safety culture should be in place throughout any operation.

Yarwood concludes, “When promoting best practices in working environments that have similar physical characteristics but are spread throughout the world, we believe effective communication is paramount. TT is always concerned with delivering relevant insight, based on the experiences of its insured, to best assist operators in avoiding situations of maximum risk. ‘Understand and mitigate the risks of working at height’ represents that commitment to safety that TT has at its core.”

* TT brief: working at height (ttclub.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 1200 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

TT Club highlights the freight crime supply chain

Surprisingly, this shadow supply chain uses all of the same components as the legitimate one, from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers. Freight insurance provider TT Club is promoting awareness of this supply chain ‘Black hole’.

London, 11th January 2024

Much freight crime is perpetrated by organised crime with profit, similar to commercial businesses as the ultimate aim. The process of storage, transport, distribution and marketing of stolen goods often shadow those of legitimate supply chains with criminals acquiring sophisticated logistics skills.  Their knowledge assists them in targeting shipments at a multitude of points; from truck hijackings to pilfering items from unsecured warehouses. Needless to say such theft not only results  in significant financial losses but also disrupts the flow of goods, leading to delayed deliveries and dissatisfied customers.

“At TT we are striving to highlight the responsibility that landlords in particular have to properly vet tenants of storage facilities and how they can prevent their properties being used to warehouse stolen goods” says Josh Finch.

“In a recent operation, police in the UK discovered a warehouse, at a location in Bradford that held hundreds of pallets of stolen goods. With the assistance of the National Vehicle Crime Intelligence Service (NaVCIS) the goods found were linked to known cargo theft incidents which spanned the previous six years and  amounted to several million pounds in value,” continues Finch.

“The warehouse itself was an unassuming commercial unit, which blended seamlessly with other legitimate businesses and exemplifies the duty landlords have to ensure that the sites they own and lease are not being used by their tenants for illegal purposes.”

TT Club is endeavouring to pinpoint the warning signs, and the nature of due diligence that is essential in preventing such properties from being exploited by criminals. Such measures include:

  • Background checks to scrutinize the business operations, financial stability, and track record of potential tenants
  • Inspection of premises regularly to ensure they are being used for legitimate purposes
  • Monitoring tenant activity, employing modern monitoring technologies, such as security cameras and access control systems
  • Collaborating with law enforcement at a local levelto share information and report any suspicious activity promptly
  • Review lease agreements to include clauses specifying the permissible uses of the property and outline the consequences for illegal activities
  • Engagement of professional services such as security experts with experience in identifying and preventing criminal activities

Increasing evidence from law enforcement agencies is confirming that a shadow supply chain operates alongside the legitimate transport of goods, using all of the same components from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers. 

“As TT helps operators to navigate the complex world of cargo theft and freight crime, it becomes increasingly clear that shedding light on this black hole requires a collective effort from all stakeholders in the supply chain, from law enforcement agencies to warehouse landlords. Only through such collaboration can we hope to mitigate this ongoing threat and safeguard the integrity of the supply chain,” concludes Finch.

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 1200 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

TT Club : Stolen goods need a market – Avoid being a receiver

Reducing the threat of theft in the supply chain can have many lines of attack, freight insurance specialist TT Club is advocating that of cutting off the market for stolen goods. Receiving stolen property is not just illegal, it provides a market for the criminals, consequently causing  lost time, revenue and reputational damage to the rightful owners as well as the transport and storage business that serve them.

Theft of cargo is an ever-present concern within the logistics industry and prevention is in the interest of businesses, law enforcement agencies and the economy as a whole.  As the industry seeks to understand the way that criminal networks operate, it is worth questioning what happens to goods after they are stolen. Organised criminal networks employ many of the same ‘business’ strategies used by legitimate supply chain operators. There are a myriad of examples of police forces uncovering large warehouses containing stolen goods, trucking operations engaged in the movement of those goods and incidents of  stolen goods entering the retail market.

As TT’s Managing Director, Loss Prevention Mike Yarwood reports, “Earlier this year two containers of BBQ equipment destined for a high street retailer were stolen from a depot in the UK. Two months later the owner of the goods, shopping in another retail store recognised the equipment and, by tracing the serial numbers, was able to identify them as those stolen earlier in the year.” A ongoing legal wrangle has ensued but as Yarwood explains, “The moral of the tale is that a relatively ready market for stolen goods is accessible to thieves if unknowing ‘receivers’ do not take sufficient care to ensure the goods they purchase are legitimate.”

TT is promoting the need for more vigilance and is offering preventative advice to procurement managers that covers such means as:

  • Forming strong, ongoing partnerships with trusted suppliers and thoroughly vetting all new suppliers
  • Implementing a code of conduct that explicitly forbids unethical and illegal procurement practices, including whistleblower protection
  • Verifying the provenance of all goods. All incoming goods should be accompanied by documentation such as bills of sale, invoices and shipping records
  • Initiating regular audits to be conducted by an external party and conducting particularly stringent due diligence when procuring high-risk goods, such as electronics or luxury goods
  • Engaging with law enforcement immediately if suspected stolen goods are identified

Yarwood emphasises the damage caused by theft, “A recent study by the University of Plymouth valued the cost of goods stolen in the UK alone during 2020 at £95.7m. However, the cost of the goods fails to take into account many other factors that impact on the businesses involved,” he highlights.  “Every theft costs the transporter wasted resource as that particular order was not delivered; survey costs to assess the value of the lost cargo are incurred and, most importantly, reputational damage occurs that may lead to the future loss of business. Moreover, insurance premiums will rise for all participants.”

The wider impact on society at large include the funding of criminal organisations, which leads to not only further freight crime but other criminal activity.  It is thought that the sale of stolen cargo has become one of the primary revenue streams for organised criminal groups around the world. Stopping, or at least reducing the market outlets for the proceeds of such thefts must become a priority of all supply chain participants.

For further information please refer to TT’s lates Supply Chain Security Bulletin HERE

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 1200 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

Graeme Sassarini to take over as Regional General Manager – Americas for TT Club

Leading insurance provider to the international freight and logistics sector, TT Club has announced a significant change to its New Jersey office leadership. After 29 years at Thomas Miller, TT’s management company, Leo Kirchner will retire at the end of June 2024. A period of leadership transition will commence in January 2024, with Leo continuing to provide support to Thomas Miller Americas for a further two years.

Leo Kirchner

Succeeding Leo as TT’s Regional General Manager – Americas from 1st January 2024 will be Graeme Sassarini, who has been with the company for 20 years and based in the New Jersey office since 2003. Graeme’s close working relationship with TT Members across the region will continue as he leads the Club’s further development of its risk mitigation services to the intermodal and maritime transport, as well cargo handling, sectors.

Graeme Sassarini

Assuming Leo’s role as CEO for Thomas Miller Americas (TMA) will be Leanne O’Loughlin, effective from 1st January 2024. Leanne is currently Regional Director of UK P&I Club in New Jersey having joined TMA in 2019 from a London-based P&I Club.

Charles Fenton, TT’s Chief Executive Officer said: “Leo’s contributions to TT Club have been invaluable. His leadership has been instrumental in strengthening our position in the region’s complex and varied risk management market.  We are pleased that Graeme will be assuming this important leadership role. He brings extensive experience and knowledge to the position that will be of continued benefit our Members and stakeholders.”

Leo added: “I congratulate Graeme on his new appointment.  I have the utmost confidence in him to continue the work that has been so important to me personally throughout my career at TT and Thomas Miller. I look forward to assisting him during the ensuing transition period.

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 1200 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.

TT Club : Environmental threat of the transport of plastic pellets

International freight insurance provider, TT Club highlights the dangers to the marine environment of plastic pellet or nurdle spillage.  Those involved in the supply of what is a universal component of plastic materials must be more aware and take steps to ensure their safe carriage.

With the ever-increasing focus on care for the marine environment greater attention must be afforded to the particular risks associated with the transport of microplastic pellets. Commonly referred to as ‘nurdles’ these are the building blocks used in the production of most plastic products. Concerns about the universal use of secure packaging, as well as the stability of these receptacles, and their weight distribution within sea containers are mounting.

However, it is the consequences of a spillage that rank highest in the urgent requirement to minimise incidents involving these cargoes in transit. Typically measuring just a few millimetres in diameter the release of nurdles into the sea, other waterways or the environment in general can have severe ecological implications. Accumulating in the stomach of any creature consuming them they have a negative effect on nourishment.  Furthermore, nurdles have a unique chemical composition that enable the absorption of toxins, adding to risks to the food chain of creatures from fish to birds, and from microbes, insects, and small mammals.

“Some estimates count as many as one in ten containerised consignments experience some form of spillage,” comments TT’s Logistics Risk Manager, Josh Finch. “Additionally, packing of bulk road and rail tank containers, often undertaken outside, often incurs incidental spillages. A greater understanding of the risks involved in handling and transporting these products is required.  At TT, we are both raising awareness and offering advice particularly on appropriate packaging and container packing that minimises cargo shifting and split packaging resulting in spillages.”

There are a variety of packaging methods utilised, each with its own characteristics and benefits.  These range from tank and dry bulk containers, cardboard boxes with plastic linings, polypropylene or cloth bags and sacks, and intermediate bulk containers and drums. Advisory information produced by TT covers the chief risk cause of stability of the cargo within such packaging as well as emphasis on the correct weight distribution to reduce movement during sea voyages in particular. Load restraint recommendations are made along with manual handling procedures and other risk mitigation measures*.

“There are no easy solutions to the challenges of safely transporting nurdles,” concludes Finch. “Tank containers are viewed as costly, while bags split and shift in transit.  However, it is important to emphasise that the risks to safety are not commonly understood, and that the environmental repercussions of spillages are a danger throughout the supply chain – on land and for the oceans.  As the industry considers, particularly at the IMO, how to address these issues, a proactive approach to risk mitigation is advisable.”

*www.ttclub.com/news-and-resources/news/tt-talk/2023/tt-talk-transport-of-plastic-pellets

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 1200 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

Use of CTU Code boosts supply chain safety and savings, survey finds

The seven industry bodies dedicated to container safety, collaborating as the Cargo Integrity Group, highlight an independent study carried out by researchers at Italian University Politecnico di Torino into shipper and forwarder application of the CTU Code.  The 2023 survey yielded encouraging signs of adoption and highlighted several convincing arguments – including financial benefits for its use

The survey highlights multiple benefits to CTU Code users including:

  • Improved safety, reputation and supply chain coordination
  • Decreased cargo damage, environmental impact and operational inefficiencies
  • Those using the CTU Code incurred no extra costs in employees, contractors, or vehicles
  • Any increase in loading and waiting times were typically offset by CTU Code related efficiencies overall
  • Annual costs and penalties reduced from €670,000 pre-implementation of the Code to €13,000 post-implementation
  • Extra costs as a percentage of revenue reduced from 37% to 10%

In the words of the report’s authors (Bruno, et al.), “The application of the CTU Code to cargo loading and transportation processes can increase the safety level of transport activities, and also improve business processes and competitiveness. The results show that the use of the CTU Code provides an increase in safety with a drastic reduction of loading accidents and damage to goods, as well as important benefits in terms of costs, improved efficiency, corporate image and reduced environmental impact.”

The Cargo Integrity Group continues its efforts to underline the positive effects of the widespread use of guidance in the CTU Code, which is the Code of Practice for Packing of Cargo Transport Units jointly published by the International Maritime Organisation (IMO), the International Labour Organization (ILO) and the United Nations Economic Commission for Europe (UNECE)¹.

The Group is dedicated to improving the safety, security and environmental performance throughout the logistics supply chain. In particular, it is concerned to promote safe methods to those responsible for the packing of cargoes in containers, securing them and accurately declaring them.

Welcoming the Politecnico survey, the CEO of ICHCA, one of the Group’s founding associations, Richard Steele said, “As far as we are aware, this is the first example of publicly available empirical evidence about the use of the CTU Code made by forwarders, shippers and others responsible for safe packing.  Notwithstanding the regional focus of this particular survey, we believe the results to be genuinely encouraging.  They show that good operational management, efficiency and safety are partners, not opposites.”

To facilitate a greater degree of understanding and wider use of what is a lengthy and complex document, the Group has published a ‘Quick Guide’ to the CTU Code, together with an editable and saveable Checklist of actions and responsibilities for the guidance of those undertaking the packing of cargoes in containers.  These materials are now available in all six of the United Nations’ official languages, as well as Italian².

The full results of the Politecnico di Torino’s survey can be accessed here https://www.sciencedirect.com/science/article/pii/S2590198223000738?via%3Dihub

Footnotes:

¹http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Documents/1497.pdf

² Arabic, Chinese, English, French, Russian and Spanish.  Downloadable HERE

Recognise that sales terms may have crucial safety implications warns TT Club

With the primary goal of ensuring the safety of the global supply chain, international freight insurer TT Club draws attention to the critical question of who is initially responsible for the state in which cargo is shipped. The insurer also updates its guidance on correct dangerous goods packing procedures by reissuing its ‘Book it right and pack it tight’ publication.

The intricacies of responsibilities during the transfer of goods internationally are standardly defined by the INCOTERMS¹ that may govern the sale and purchase of the goods. This has a crucial bearing on who has responsibility for certain risks relating to the cargo in transit. TT indicates that a substantial 65% of cargo damage claims can be attributed to inadequate packing and securing in the cargo transport unit (CTU). The question of responsibility for packaging and packing has therefore an important impact on the safety of the supply chain.

“Poor packing practices, including improperly secured loads and mis-declared goods, give rise to the majority of incidents resulting in damage to cargo both on land and at sea, and potentially in injuries or broader incidents. While INCOTERMS seek to standardise the responsibilities and costs between seller and buyer under a sale of goods contract, where the goods are to be transported, such that there is clarity for delivery, the influence on the fulfilment of the transport (or ‘carriage’) contract may be less understood ,” explains Peregrine Storrs-Fox, TT’s Risk Management Director. “There is, therefore a need to increase awareness for those involved in trading goods to ensure that responsible decisions are taken in relation to the physical packing operations or, indeed, placement of cargo insurance.”

When incorporated, INCOTERMS will determine when responsibility, and therefore risk, is transferred from the seller to the buyer for delivery of the goods, which includes not just who is contracting for the transport but also inherently issues relating to packaging and packing. For example, under the “Ex Works” (EXW) INCOTERM, the risk is transferred from the seller to the buyer at the seller’s premises. This means that the buyer assumes responsibility for packing and transporting the goods from that point onward. In contrast, under the “Delivered Duty Paid” (DDP) Incoterm, the seller is responsible for delivering the goods to the buyer’s premises, including arrangements for transport.

“Issues impacting safety within the supply chain are not directly answered by INCOTERMS, and thus the concern. As with much of logistics, the range of practices is complex, but there is silence or insufficient clarity around issues of safe packaging and packing that impacts the interface between the differing types of contracts involved (including sales, financing, carriage and insurance). These terms may mitigate certain risks associated with cargo safety,” concludes Storrs-Fox. “Therefore, businesses engaged in international trade need to consider carefully the implications of the choice of terms of sale, specifically ensuring that packaging and packing are adequately understood to enhance safety.”

Regardless of any sales term that may be agreed, therefore, both parties need to consider responsibly the broader issues. However, TT urges buyers, often also importers, particularly to consider carefully the potential implications of the term selected, not just in relation to the simple division of responsibilities, but also the impact of the condition of the goods at the commencement of the movement on all involved in fulfilling the transport, as well as the wider environment.

Alongside this alert on the influence of this trading scenario may have, TT regularly highlights safety issues arising from inadequate CTU packing processes, most notably in relation to Dangerous Goods. In regard to this critical aspect of international trade, TT has, along with its sister insurance mutual UK P&I, recently published an update to the ‘Book it right and pack it tight’², joint publication, now reflecting Amendment 41-22 of the International Maritime Dangerous Goods (IMDG) Code, which enters mandatory effect on 1st January next year.

This publication also explains the importance of the Code of Practice for Packing of Cargo Transport Units, known as the CTU Codeᵌ and provides the important reminder from caselaw that it is the shipper’s duty to ensure that the carrier is alerted to all the hazards posed by the cargo, even beyond what may be strictly required by the regulations.

TT’s intention in all these regards is to support shippers, forwarders, those who pack CTUs, and all carriers to understand the interplay of differing responsibilities in ensuring a safe outcome for all.

¹ https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020

² https://www.ttclub.com/news-and-resources/publications/book-it-right-and-pack-it-tight

ɜ https://unece.org/transport/intermodal-transport/imoilounece-code-practice-packing-cargo-transport-units-ctu-code#:~:text=The%20CTU%20Code%20applies%20to,the%20packing%20of%20dangerous%20goods

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 1200 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