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TT Club

Russian transport operators must insist on comprehensive insurance cover

Recent changes to regulations in Russian law now make it possible for forwarders and road hauliers to access full liability cover, similar to that enjoyed by those in the global supply chain. However, most insurance products on the market don’t offer comprehensive protection. Executives from Panditrans, TT Club’s Network Partner in Russia, have outlined the improved regulatory situation but emphasized the inferiority of the cover available in the market. Valuable risk management advice on temperature controlled and tank container cargoes was also presented at the recent TransRussia trade show in Moscow.

Moscow & London, 17th May, 2021

After five years of pressure from the Russian freight forwarding and transport community comprehensive freight liability cover is now possible, as officially confirmed by the applicable transport laws. Sadly, local insurers have not responded by changing the terms of their very restricted policies that continue to deny valid claims in many circumstances. TT Club’s Network Partners in Russia is strongly urging forwarders, and road hauliers, in particular to increase their demands on insurers for better, all-inclusive insurance cover.

Alexander Petrenko of Panditrans

In his lecture at the TransRussia event last month, Alexander Petrenko of Panditrans drew attention to the shortcomings of the policies that are still on offer in the market despite the regulatory change. “Operators are still opting to buy cheaper forms of protection,” he stated, going on to provide a range of examples of such policy restrictions. “We see cover that has just a few named risks, such as traffic accidents, fire and theft. Often, additional conditions are imposed, with special requirements put on sub-contracting, parking places and driver practices, that are difficult to comply with. Typical of most contracts with poor cover are low claims limits and pro-rata reimbursement clauses for when the cargo value is higher than the limit per incident.”

Having in the past cited the lack of freedom in the regulations to purchase more comprehensive cover, forwarders and carriers are now failing to demand better value for their insurance premiums. “Now is the time to change these attitudes and for demands to be made of insurers to improve their service,” urged Petrenko. “Extensive risk mitigation tools are now possible through which the insured can avoid policy restrictions as well as safeguard against other risk such as errors and omissions and legal defence costs. Higher insured limits on the value of goods in transit are also possible avoiding excessive deductibles. Forwarders and road hauliers in Russia must now demand such protection from their insurers.”

Panditrans also took the opportunity to address many stakeholders in the freight transport sector at the TransRussia conference to present some of TT Club’s loss prevention initiatives to assist those involved in temperature-controlled cargo movements, as well as the risk management of tank container operations.

Kirill Berezov of Panditrans

Kirill Berezov of Panditrans lead this part of the conference agenda. “With the movement of perishables increasing in Russia, by both container and road trailer, it is timely to remind those in the sector of the wisdom of maintaining the safety of cargoes through professional risk management,” explained Berezov. “Panditrans and TT Club have much experience in these measures, ranging from pre-preparation of the transport equipment, packing and route planning; through to awareness of, and measures to mitigate the risks involved; and ultimately the appropriate insurance cover.” Such comprehensive advice is available to download for free in both Russian and English on TT Club’s website: Stop Loss: Temperature Controlled Cargo.

Similarly, when considering the risks involved in the movement of tank containers and their often hazardous cargoes, careful consideration of safety and security issues are critical. “The main danger lies not in the loss of the tank with the cargo itself or in damage from road accidents, but in a complex chain of errors that, as a result, can lead to catastrophic consequences given the hazardous nature of many commodities involved. Severe liabilities for the transport operator can ensue,” warned Berezov.

The main risks, with the highest potential cost of damages are environmental and injury to, or even the death of, third parties. The correct choice of specialised tank equipment, as well as thorough preparation, including cleaning to avoid contamination, are basic to avoidance of calamity. Once more, TT Club has set out best practice guidelines for operators that can be accessed in the Russian and English languages: Stop Loss: Tank Containers.

In addition to having the accolade of The Official Insurance Company of TransRussia 2021, the organisers of the event marked its 25th Anniversary by presenting Panditrans/TT Club with an award for their ‘Contribution to the Business Programme’.

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Russian Cargo Theft Trends 2020

Report finds dominance of fraudulent activity as the cause of road freight losses as year-on-year incident volumes decline in 2020 by 35%.  Food and beverages remain the chief targets, though type of goods stolen were more necessities rather than luxury items.

Moscow & London, 13th April, 2021

The joint report published by international freight insurer, TT Club; IMPACT, a digital cargo theft information and prevention exchange and the Transported Asset Protection Association (TAPA EMEA) details trends in the prevalent modus operandi of thefts and the type of cargo commodities lost within the Russian road freight sector, analysing the data by month and federal region.

The COVID-19 pandemic that took hold through 2020 impacted historical cargo theft trends in a multitude of ways. Local and national restrictions on general movement affected the thieves’ ability to move undetected when undertaking their activities, influencing how they operated. The economic impact of the pandemic influenced market forces and therefore the cargoes primarily targeted by criminals. The overall number of recorded incidents reduced year-on-year by approximately 35%, despite a 10% annual growth in the total road freight market.  The average value of each loss also reduced to nearly US$39,000 in 2020 from US$43, 000 in 2019.

As in the previous year the 2020 report pinpoints various methods of fraud as by far the most common modus operandi of thieves, with such methods once more accounting for around 83% of incidents. The balance was almost entirely theft from parked vehicles.  Food and beverages also remain the most common type of commodity targeted.  The volume of incidents fell by nearly a third, but these goods still made up 28% of total losses.  Interestingly, the average value of goods taken fell by 22% indicating a focus on essentials rather than more attractive products of higher value.

The second largest cargo category remains metals but with much reduced share; 13% in 2020 against 24% the previous year.  Once more there was a ‘value shift’ but this time to more valuable cargoes; the average per incident rising from US$28,000 to US$44,000.  The year-on-year increases were seen in small increments across other categories including electronics, auto parts, household goods and clothing. Full details of the report’s analysis can be studied in English or Russian Click Here

Kiril Berezov is Managing Director of Panditrans, TT Club’s Network Partner in Russia.  He emphasises the dominant role that fraud plays in losses overall.  “In contrast with many other countries, data from our 2020 report highlights that thieves in Russia rely heavily on fraud as a means of accessing cargo. The methodology of criminal organisations are distinct and fall into two primary categories: the driver being diverted by phone to unload at an unauthorized location and the use of fraudulent identities to access cargo. The ingenuity of the fraudsters is remarkable. They have sound knowledge of how the supply chain operates,” he said.

The report contains detailed case studies that describe, step-by-step how such diversions are arranged and how types of fraud are employed to ultimately complete the thefts.  Mike Yarwood, TT Club’s Managing Director of Loss Prevention highlights the report’s important role in mitigating these incidents.  “Above all else awareness is crucial.  Everyone within transport and supply chain service companies need a degree of knowledge of the risks and how perpetrators of theft operate.  Our report is aimed at providing detailed data but also provides a wealth of guidance on creating this awareness as well as further actions to be taken by operators in avoiding loss and damage to their customers’ cargoes and their own business reputations.”

Thorsten Neumann, President & CEO of TAPA in the Europe, Middle East & Africa (EMEA) region, says companies can take action to increase the resilience of their supply chains in Russia. “TAPA’s Incident Information Service (IIS) has recorded hundreds of cargo thefts and millions of euros of product losses, and this increases every month. In a high number of these crimes, losses could easily have been prevented by companies carrying out simple due diligence checks on the transport partners they are working with. There is now so much evidence of Fraud and Deception impacting supply chains in Russia, businesses should be well aware of the risks. This new report will help prevent losses.”    

Ilya Smolentsev is Co-founder of IMPACT.  He comments, “Cargo theft in Russia is heavily under-reported as in many other parts of the CIS area and Europe. The accumulated annual losses exceed RUB 10 billion (US$130 million) and exhibit a growing trend of producing negative influence on local and international businesses. IMPACT, as the leading independent cargo theft data source in Russia, created a unique risk management tool that helps the industry in understanding the magnitude of the problem in both Russia and the CIS region and in developing effective mitigation strategies.”

About TT Club

Mike Yarwood, TT Club’s Managing Director of Loss Prevention

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

About IMPACT:

Ilya Smolentsev is Co-founder of IMPACT

IMPACT is a partnership initiative for information exchange and industry collaboration to minimize risks in the supply chain and reduce cargo losses in Russia. Industry’s first innovative digital platform for collecting and analysing intelligence on cargo theft, providing online vetting services to identify individuals, forwarding and transport entities, and vehicles that routinely take part in fraudulent pickup and full truck loss incidents. IMPACT was established in 2019 by leading experts in supply chain and corporate security with a vision to establish open collaboration within the industry for legitimate data exchange on cargo theft threats in Russia, as well as share intelligence and best practices with leading international institutions and companies who are active in security risk management, fraud prevention and cargo protection to enable effective incident data exchange, improve security awareness and theft prevention, referencing various consulting services and solutions.

www.impact.ru.com

About TAPA:

Thorsten Neumann, President & CEO of TAPA in the Europe, Middle East & Africa (EMEA) region

The Transported Asset Protection Association (TAPA) is a not-for-profit industry Association founded in 1997 to help Manufacturers/Shippers and their Logistics Service Providers minimise losses from their supply chains resulting from cargo thefts. Today, the Association provides a host of industry standards, training, incident intelligence, route planning and networking tools and opportunities which are used by its member companies as part of their own in-house supply chain security programmes to mitigate risk and optimise loss prevention. Its membership also includes Insurers, Security Service Providers and Law Enforcement Agencies.

www.tapa-global.org

Suez Canal blockage: supply chain risks assessed

International freight transport and logistics insurer, TT Club alerts supply chain operators to the consequential impact of disruption stemming from recent blockage in the Suez Canal and urges a greater emphasis on resilience.

London, 12th April, 2021

Global supply chains already strained by the disruption caused by the pandemic have been further challenged recently by the blockage of the Suez Canal, an artery that carries 30% of the world’s container cargo each year.  Happily, the Canal is now functioning normally again, but a reported 300 ships have been delayed awaiting transit, many others were re-routed via the longer passage around South Africa’s Cape of Good Hope.

In its advisory capacity as a mitigator of risk and loss in the supply chain TT Club is warning of the consequences of these recent events.  Mike Yarwood, TT’s Managing Director, Loss Prevention comments, “Beyond the delay to cargo on board those ships affected, there will inevitably be a knock-on impact for those involved in discharging the containers at destination ports when they finally arrive, as well as the final mile delivery carriers. While the immediate impact may be a lack of cargo arriving when expected, presenting market supply challenges, it is when the cargo does start to turn-up that further potential risks emerge.”

The arrival of large volumes of laden containers, coupled with the requirements for hinterland distribution, will create disruption at ports and terminals, straining throughput and yard capacities, and creating accumulation of cargo. This is a complex risk and one that will not only affect destination hubs.

The situation will also aggravate an already widely reported imbalance of container equipment especially on the East to West trade routes as laden containers are tied up and consequently empty availability to reposition to shipment areas worsens.

Yarwood further stresses, “The risk of theft at ports and freight depots in this scenario is heightened and a greater focus on security is required. Whether it simply be at an overspill holding or storage area, or temporary warehousing, wherever and whenever cargo is not moving, it is more likely to be stolen. Those active in the supply chain should be mindful of these security risks.  Due diligence, undertaken to ensure that any third party provider of storage is adequately resourced to meet these demands, is a prudent step to take in these circumstances.”  

Particularly in Europe, driver shortages are already expected to soar through 2021, as highlighted by a recent International Road Transport Union (IRU) survey.  This will exacerbate the difficulties in delivering import cargoes and picking-up consignments for export. The overall lack of capacity to move containers has the potential to create additional challenges. Those seeking to secure road haulage capacity should be mindful of the associated security risks outlined in the recent TT Club/BSI joint cargo theft report, and take the advised steps in mitigating the threat of theft.

Yarwood concludes, “The last decade has witnessed many in the supply chain drive towards streamlining and operational efficiencies. Such measures have included reducing the number of suppliers and introducing ‘just in time’ principles to lessen the burden of unnecessary inventory costs. Experiences over the last twelve months through the pandemic, the Brexit transition and more recently the Suez Canal blockage, bring into question this bias towards efficiency and cost reduction.  If such are achieved at the expense of resilience, is this policy the correct one? The new normal might see many stakeholders increase their focus on contingencies and adopt more a ‘just in case’ philosophy than a ‘just in time’ one.”

 ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Coastal States need to reconsider their responsibilities in granting refuge

In its continued campaign to reduce the risk and consequences of container ship fires, TT Club turns its focus to the plight of fire damaged ships and their often prolonged search for a place of refuge.

London & Dubai, 6th April, 2021

A detailed review of some of the more serious container ship fires of recent years highlights concerning features of the aftermath in terms of safety to crew, the stricken ship and its cargo, and the maritime and coastal environment. 

Speaking at the Middle East Transport and Logistics Summit recently, TT Club’s Abdul Fahl pointed to the substantial delays in finding damaged ships a place of refuge (usually an existing port), illustrated by the examples of ‘MSC Flaminia’, ‘Maersk Honam’ and ‘Yantian Express’. These heavily damaged, fire-stricken ships took at worst almost three months to be granted refuge and a further period approaching six months elapsed before their cargo could be safely and securely discharged.

Fahl explained, “A place of refuge – typically a port – is where a ship in need of assistance can take shelter to enable it to stabilise its condition and reduce the hazards to navigation and protect human life and the environment.” He goes on, “There are no international conventions or mandatory regulations directly compelling a State to provide refuge.  IMO resolutions promote preparedness and the need for coastal States to take responsibility to avoid compounding issues faced by ships in distress. Equally, EU member States are required to draw up and implement plans to take ships in distress requesting refuge under their authority. However, the relevant Directive stops short of imposing a legal obligation on the coastal States to provide such refuge.”

The International Maritime Organization (IMO) guidelines state ‘when a request for an access to a place of refuge is made, there is no obligation for the coastal State to grant it, but the coastal State should weight all the factors and risks in a balanced manner and give shelter whenever reasonably possible.”

Despite such ‘requirements’ and ‘guidelines’, the fire-crippled ‘MSC Flaminia’, on which three crew members died, was denied access to a number of ports in Europe for eleven weeks before berthing in Wilhelmshaven, Germany.  Even then, a further twenty plus weeks elapsed before her remaining containers were discharged in Romania.  The ‘Maersk Honam’ was even more seriously damaged in the Arabian Sea, with five crew losing their lives.  The severely destabilised ship was eventually allowed into Jebel Ali, Dubai some eleven weeks later.

Such delays endanger crews and salvors, increase the risk of further fire and damage, augment the possibility of maritime pollution and environmental damage of the coasts, and enlarge the losses of unaffected containers and cargo due their extended transit times to their final destinations.  While clearly each incident presents multifaceted issues and diverse interests, the balance in favour of coastal State sovereignty, economy and environment may restrict the readiness to provide assistance to ships in distress.

As a result, TT Club urges all stakeholders, port administrations, coastal States and the regulatory authorities to consider carefully their responsibilities to be proactive in setting up and testing emergency plans in regard to places of refuge on safety, environmental and moral grounds.

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Vaccine supply under threat from theft and counterfeits

Having warned of various threats to the COVID-19 vaccines supply chain late last year, international freight insurer TT Club is now reporting a spate of disruptions to effective distribution across the globe.

London, 29th March, 2021

All actors in the global supply chain must be increasingly alert to a range of risks due to criminal activity targeting vaccine supply.  From theft and illegal sale of authentic vaccines to counterfeiting, substitution with fake pharmaceuticals and contamination, the threats posed by criminals attempting to take advantage of this very high -value cargo, are widespread.

Mike Yarwood, TT Club’s MD Loss Prevention, warns the risks should not be under-estimated, “It is probable that the market for counterfeit pharmaceuticals is worth US$400 billion a year and the World Health Organisation (WHO) estimates that up to 1 million people die annually from counterfeited drugs,” he points out.

“The current and future supply chain challenge to distribute the COVID-19 vaccines, in all their forms, from various countries of production, will mean that these figures are likely to grow.  Multiple incidents have already been reported,” said Yarwood.  

In the Netherlands, upon opening the trailer doors of a full truck load of pharmaceutical products, the consignee was faced with ten male migrants who had been hiding in the trailer. The cargo was contaminated and destroyed.  While in the UK, three arrests were made following the theft from a truck of COVID-19 lateral flow testing kits worth over UK£100,000.

Recently two counterfeiting organisations focusing on COVID-19 vaccines were successfully broken up. In one case more than 3,000 saline filled vials were being sold as authentic vaccines and seized in Chinese police raids. Another report noted that 400 vials, the equivalent of around 2,400 doses, were discovered as containing fake vaccine in a warehouse in Gauteng, South Africa.  While in both cases a quantity of counterfeit goods was seized and arrests made, it remains unclear what volume of fakes had already been manufactured and shipped. 

Latin America is the latest region to report extensive serious malpractice.  In Mexico a variety of Pfizer vaccines and others from three Chinese manufacturers (both genuine and counterfeit) have been offered for sale at up to US$1200 per dose.  Many have been subsequently administered.  And in Brazil, water-filled and empty syringes have been found on the black market.

A range of COVID-19 vaccines have been posted for sale on the dark net. The prices, in Bitcoin, ranging from US$250-300. There is no way to determine whether these vaccines are genuine, or even exist at all, placing potential users at huge risk.

As the WHO and altruistic charitable organisations such as the Gates Foundation, with its Global Alliance for Vaccines and Immunisation (GAVI), strive to ramp up vaccine supply to the poorest nations, there needs to be appropriate investment in the security of the subsequent supply chains, maintaining the integrity of the cargo.

Indeed, TT urges equal attention by all governmental agencies to the end-to-end vaccine supply chain to avert fatal undermining of the substantial R&D efforts globally.

Yarwood concludes, “Should the responsibilities of the pharmaceutical companies and organisations funding the supply, end at the point of production and sale, leaving local governments to manage security through the supply chain? A degree of uncertainty will prevail and security effectiveness differ from region to region. Operators who are called upon to transport, store and deliver such vital supplies therefore must be super vigilant in guarding against loss through theft and the infiltration of fakes into the supply chain.”

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

TT Club highlights significant changes to RHA’s Conditions of Carriage

Freight transport liability insurer TT Club provides important insight to recent changes to the UK’s Road Haulage association’s (RHA) Conditions of Carriage (2020) that have ramifications to carriers’ liabilities.

London, 17 March, 2021

The latest version of the RHA conditions of carriage (2020)* were released last year, effective 1 September. TT highlights changes to three clauses in particular: protecting carriers’ obligations if delays in transit result from the customer’s omission, clarifying the issue of liabilities for loading and unloading cargo from the vehicle, and providing a useful definition of ‘commencement of transit’ with its implications on liability in the event of damage or loss prior to that point.

“Although relatively small, these changes can have significant impact on the liabilities sustained by carriers under certain circumstances,” says TT Club’s Mike Yarwood. “Since Brexit, for example, there have been a number of occasions of hauliers arriving at UK ports seeking to cross the EU border without the necessary documentation or permits. Documentary errors, potentially by the customer, cause delay, which if perishable cargoes are involved can result in extensive losses.  Under clause 5 (4) of the new conditions, a carrier has the right to suspend or possibly even terminate the performance of the service, and in addition damages such as loss of business and driver’s wages could be claimed from the customer,” he explained.

TT Club and commercial law firm Hill Dickinson have worked together to outline the important clause changes that effect the customer-carrier contractual relationship.  Hauliers and other stakeholders who incorporate the terms of the earlier, 2009 version are encouraged to alter their own Standard Trading Conditions (STCs) in line with the new provisions.

A further issue clarified in the 2020 conditions is connected to liabilities for loading and unloading cargo from a vehicle. Clause 4 now states that unless otherwise agreed in writing, responsibility for loading cargo onto the vehicle and the unloading of the cargo at the consignee, rests with the customer. Further, the customer is also required to indemnify the carrier from and against all and any loss, damage, death or injury that might arise during such operations. 

Yarwood goes on to profile another clause that has been altered, “TT has recently been active in reporting the increase in theft from warehouse premises, a consequence primarily of pandemic related backlogs and delays.  This includes from loaded trailers awaiting departure.  In this regard, Clause 7 of the new conditions sees a material change to the definition of commencement of transit.  This is defined as after the consignment has left the premises from where the consignment is collected.”

This is of significant assistance to the carrier when no alternative secure parking facility is available enroute to the destination or the driver does not have sufficient driving time to reach a secure parking location.  In the spirit of security, it would now be advantageous from both a liability and a security perspective to leave the loaded trailer at the shipper’s premises until the driver’s hours allow a more seamless delivery option.

TT Club consistently advises carriers to review their STCs on a regular basis in order to maintain control over their risk profile.  In this instance, the RHA have provided a valuable service in up-dating some of the clauses of these conditions of carriage, which it would be wise of carriers to adopt.

*https://www.rha.uk.net/membership/member-benefits/conditions-of-carriage-and-storage

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Annual cargo theft report indicates significant new trends

The report, which reflects whole year data from 2020 compiled by leading international transport and logistics insurer, TT Club, and global provider of supply chain intelligence, BSI, highlights significant new trends in risks both regionally and globally.

  • Thefts of cargo in transit remains highest proportion of total, all though the 71% share is a decrease from 2019 (87%)
  • Losses from warehouses and other storage facilities increases to 25%
  • An atypical year due to supply chain threats from the pandemic. These likely to be of continued concern well into 2021
  • New high-value targets created such as PPE, face masks and anti-bacterial gel. Vaccine supply chain to come under threat as roll out expands
  • Food & beverage sector remains largest target at 31%

24th February, 2021

The most significant trend highlighted by the report was the relative shift in the location of thefts, with in-transit incidents and those involving vehicles showing a decline, though remaining the most dominant threat, and theft from storage facilities increasing. The extent of the rise in the latter was variable from region to region however this trend was reflective of the disruption to supply chains brought about by radical changes to consumer buying patterns as a consequence of the pandemic.

TT Club’s Managing Director, Loss Prevention, Mike Yarwood explains more, “The effects throughout 2020 of the COVID crisis threatened supply chain security, continuity and resilience. Not only did newly created high-value commodities such as PPE become targets for theft but bottle-necks in the logistics infrastructure at ports and warehouses brought increased potential risks. Temporary overflow storage facilities added to the dangers in loosening the grip of existing security systems.”

Although specific incidents have not yet occurred, unless distribution plans for vaccines are perfectly executed within the expectations of any given population, challenges will arise in protecting the single most valuable cargo of all in the coming months.

The accompanying infographics give an overview of the global data findings, but regional variances are worthy of note. In Europe, the stockpiling of goods meant these inventories came under particular threat with 48% of 2020 reported thefts coming from warehouses and production facilities. This was in contrast with 2019 when only 18% came at such locations. On the other hand, 54% of incidents occurred in rest areas and parking sites in 2019 — the 2020 figure was 19%.

In Asia, the countries with the highest risk remain India, Indonesia, China and Bangladesh. The proportion of storage-based risk remains around 50% in Asia as a whole but in Southeast Asia the in-transit risk indicates the prevalence of bribery and corruption with a high percentage of thefts being facilitated by employees and customs or other officials. 

North America continues to see theft coming almost exclusively in-transit via hijackings or directly from a parked vehicle. The risk of social unrest, particularly in Mexico, arguably impacted the risk of cargo loss through most of last year. Significant disruption to the Mexican rail freight industry, with protesters setting up blockades on train tracks, created a backup of cargo across the country. This disruption led to estimated losses of close to US$4.4billion

In South America, Brazil was a hotspot last year. A key driver of the high rates of cargo theft here remains the presence of major illegal drug smuggling gangs that need to fund their trafficking efforts. Again, the dominant risks were from hijacking and theft from or of vehicles.  These theft types accounted for 78% of the total losses reported. The extreme rate of cargo theft, however, did drop for the first time in several years, as continued efforts by police and industry contributed to a slight decline in incidents in 2020.

In the coming year disruption and the uneven resumption of international trade resulting from the spread of COVID will continue with imbalances in shipping container distribution that are likely to impact maritime, and through a knock-on effect air cargo capacity throughout 2021. The added vulnerability of cargo will therefore continue.

The key to mitigating threats in 2021 is to stay ahead of the risk. BSI and TT Club have once more collaborated to analyse the detail of these risks. In the report, the authors furthermore offer mitigation techniques so organisations can proactively understand their risk and build a supply chain that is ahead of the criminal tactics and emerging threats.

The full report can be downloaded free of charge HERE

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

TT Club offering evermore tailored service with additional underwriting resource in the Benelux Region

Leading international freight and logistics insurer, TT Club is pleased to announce Marcus Kuling’s appointment as a specialist underwriter in the Benelux region.  The thirty-year marine and transport insurance veteran will be based in Rotterdam as part of the Thomas Miller BV team and solely dedicated to servicing the TT Clubʹs European Membership.  

Rotterdam & London, 20th January, 2021

The appointment both underlines TT’s commitment to provide superior service to Members in the Benelux region and wider European markets and promoting business growth in an area that is key to European freight and logistics corridors. Marcus will underwrite TT Club risks as part of the Thomas Miller team based in the Netherlands.

Marcus has crucial local knowledge and much experience in marine insurance from working as both a broker and underwriter in the Netherlands throughout his career, with companies that include AON, AEGON, Generali and Amlin.  In servicing the European TT Club Membership, his role will be to uphold the very best standards of service the Club’s Members know and expect, continuing to forge ever closer and enduring relations while bringing his skills and experience to bear in building the Membership across the Benelux region.

In welcoming Marcus to his new position, Mark Argentieri, TT’s Regional Director, EMEA highlighted, “Both the Netherlands and Belgium are major gateways to Europe with an extensive port and logistics industry. It is fantastic to bring ever more bespoke and local service to our Members by having a presence on the ground in Rotterdam through Marcus. The Benelux region is one of real importance for the Club, which Marcus will be ideally placed to offer on the ground support. 

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

Shippers urged to take more responsibility for supply chain safety

International freight transport and logistics insurer TT Club wants cargo owners to be more aware of safety issues arising from poorly packed containers and misdeclared goods. Urging them to make good practice in the supply chain part of their ESG (environmental, social and governance) policies

London, 6th January 2021

TT Club’s analyses consistently indicate that two thirds of incidents related to cargo damage are caused or exacerbated by poor practices at the time of packing goods into a freight container. Such supply chain malpractice results in multi-million dollar losses, including tragic containership fires with loss of seafarers lives and significant delays. Extrapolating known figures, all such incidents are estimated to result in economic losses exceeding USD6 billion per year.

Cargo interests, whether retailers, manufacturers, traders, exporters and particularly importers, which rely so heavily on the global supply chains that transit thousands of miles of ocean and land transport need to take responsibility to ensure the risks are mitigated.

“The dangers are not just restricted to chemical cargoes, such as those used in paints, cosmetics, cleaning products, fertilisers, weedkillers and aerosols of all types. A wide variety of consumer goods, as well as components used in the manufacture of industrial products, domestics white goods and automobiles, if incorrectly handled in transit can cause major disasters,” comments Michael Yarwood, Managing Director, Loss Prevention at TT Club.

“The list is long and often surprising – BBQ charcoal, battery powered electronic devices, fireworks, hand sanitizer, wool, cotton, vegetable fibres, marble, granite and other building materials, fishmeal, seed cake and many more. Those involved in sourcing, importing, storing, supplying or selling such commodities should ensure their procurement and logistics standards are of the highest level.”

Sustainability and environmental impacts are subjects that are constantly in the public eye and there is an ever-heightened sense of urgency to act responsibly to reduce waste and the carbon footprint. However, the risks of supply chain dereliction frequently go unnoticed. Yet, mishandling of cargoes can result in unacceptable danger to those employed in their movement, to the environment, the general public, and not insignificantly to brand reputations.

And the concerns extend far beyond awareness of commodity-specific risks. Packaging and dunnaging already need to comply with safety and environmental standards, but there are increasing demands around recyclable and biodegradable materials. Furthermore, international attention is being directed urgently at phytosanitary risks – the avoidance of visible pest contamination in the movement of freight. Since not every responsible actor will physically see the potential contaminants, it is a matter of considering the origin of the goods being sourced, the location for packing, the season and biology of pests (when eggs or seeds are most likely), the compliance of the required packaging and the prevailing conditions at the time of packing the container(s).

As CSR (corporate social responsibility) and ESG policies come under increasing scrutiny, those entities that profit from the efficiencies and opportunities of the global and regional supply chains need now to be confident that those acting on their behalf in preparing, packaging, packing and dispatching their goods are doing so in accordance with industry standards, and within the applicable regulatory frameworks.

“So, what are ‘industry standards’? The simple answer is the Code of Practice for Packing of Cargo Transport Units (CTU Code),” advises Yarwood. “This is a joint publication of IMO[1], ILO[2] and UNECE[3]. It provides comprehensive information on all aspects of packing and securing of cargo in freight containers and other transport units across all sea and land transport modes. The Code guides not only those responsible for packing and securing cargo, but also those who receive and unpack the goods. It also addresses the vital issue of correct description and declaration of the goods, including any specific information about the treatment of dangerous goods.”

The full CTU Code is most comprehensive, but for those wishing to navigate it for guidance on their particular function or commodity, it might appear a little complex, especially for those unfamiliar with the processes. TT Club has therefore, along with its fellow partners in the Cargo Integrity Group*, compiled a ‘Quick Guide’ to the Code. This includes a Checklist of actions and responsibilities for those packing cargoes in freight containers specifically. The aim is to make the Code accessible to as many operatives as possible, encouraging them to adhere to the good practices that it specifies.

The complexity of supply chain relationships across the globe makes it no easy task to achieve material change in behaviour and practice. It is recognised that beneficial cargo owners, and in particular buyers and retailers, often hold an influential position in the supply chain and can exercise control on the way that specifications and contracts are drawn up between entities. They are regarded as vital in disseminating good practice information and insisting on compliance by those suppliers of goods and services who they employ either directly or indirectly.

The Global Shippers Forum (GSF) represents the interests of cargo owners in international supply chains. James Hookham, Secretary General, recognises the crucial role cargo owners have in promoting high standards of safe and ecologically-responsible container packing, stating, “In addition to the serious health and safety risks already described, poorly packed containers can also cause damage to adjacent cargoes in the event of incident and have been a cause of major consequential losses for shippers. GSF played a leading role in the development of the advice in the CTU Code and contributed to the writing of the ‘Quick Guide’ and the Container Packing Checklist.”

Furthermore, combatting the inadvertent transfer of invasive plant and animal species via contaminated cargoes and shipping containers is now a major priority for many governments around the world anxious to protect vital economic and ecological industries in agriculture and natural resources. The CTU Code and the associated guidance material sets out practical steps that can be taken to minimise this real and serious threat to trading nations.

James Hookham concluded, “Insofar as these practices will help minimise the impact of cargo movements on the environment and on people that come into contact with them, they are a valid item for inclusion on the ESG agenda of all responsible businesses.”

[1] International Maritime Organization www.imo.org

[2] International Labour Organization www.ilo.org

[3] United Nations Economic Commission for Europe www.unece.org

* Container Owners Association (COA), the Global Shippers Forum (GSF), the International Cargo Handling Co-ordination Association (ICHCA) and the World Shipping Council (WSC).

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com


[1] International Maritime Organization www.imo.org

[2] International Labour Organization www.ilo.org

[3] United Nations Economic Commission for Europe www.unece.org

Young International Freight Forwarder of the Year announced

Umair Aamir Sheikh

Geneva/London, 10 December 2020 – FIATA International Federation of Freight Forwarders Associations and TT Club announce the 2020 winner of the Young International Freight Forwarder of the Year Award (YIFFYA). Umair Aamir Sheikh from the Pakistan International Freight Forwarders Association, and Asia-Pacific regional winner, is awarded this year’s global award.

The YIFFYA demonstrates recognition by FIATA, and TT Club as a sponsoring partner of the award, of the need to develop quality in the freight forwarding industry and reward young talent. For over 20 years, the YIFFYA has been providing valuable training opportunities for young freight forwarders in the industry.

“In the face of such a difficult year due to the pandemic, we are heartened to receive very high-quality dissertations from all four FIATA regions,” said Thomas Sim, FIATA Senior Vice President. “Candidates have demonstrated tenacity, versatility and high standards of research and applications in their various domains and areas of operations. FIATA’s continuous efforts towards nurturing and motivating the youth in logistics and freight forwarding will persist in the face of our industry’s disruption and digital transformation.”

Sheikh joined the freight forwarding industry four years ago and comes from a country where 64% of the population is under 30 years old – emphasizing the relevance and timeliness of this award. His dissertation took into account the effects of digitalization on freight forwarding activities and concluded that, despite the technology currently available, the role of the freight forwarder remains essential.

The YIFFYA selects four regional winners who are invited to attend the annual FIATA World Congress. The global winner is usually announced during the congress and receives, as part of the prize, one week’s practical experience of multimodal transport infrastructure and one-week academic training in the TT Club’s Head Office in London.

“This year more than ever we at TT want to pay tribute to the freight forwarding fraternity across the world that have helped keep essential global supply chains flowing,” said Mike Yarwood, TT Club’s Managing Director, Loss Prevention. “In turn the young, talented employees of these regional and international companies have excelled. The entries into YIFFA and particularly the finalists have exemplified this talent and dedication. In addition to Sheikh, I want to congratulate them all, and in particular the regional finalists: Femke Marie Fürst (DSLV – Germany) ; Vimbai Loreen Manyumbu (SFAAZ – Zimbabwe) and Anastasia Gureeva (CIFFA – Canada)

One of FIATA’s key priorities is to bring new talent into the freight transport industry to meet the need for human resources in the coming years. The YIFFYA provides young professionals looking to develop their knowledge with networking opportunities. FIATA encourages young freight forwarders from Association Members to apply for the award to get global exposure to the industry.

About FIATA

FIATA International Federation of Freight Forwarders Associations is a nongovernmental, membership-based organization representing freight forwarders in some 150 countries. FIATA’s membership is composed of 108 Associations Members and more than 5,800 Individual Members, overall representing an industry of 40,000 freight forwarding and logistics firms worldwide. Based in Geneva, FIATA is ‘the global voice of freight logistics’ www.fiata.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 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com