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TT Club

Insurers pinpoint the complex causation of container casualties

Both the extent and pace of growth in container volumes have put strains on a wide range of operational procedures and the physical hardware employed to handle the steel boxes, particularly onboard ships. Attention to numerous factors is needed to avoid repeated casualties.

A webinar organised by the Thomas Miller managed insurance mutuals, container freight specialist TT Club and protection & indemnity insurer, UK P&I Club, revealed the diverse range of factors important to safe container ship operations and the security of the container stacks they carry. ‘Container Casualties – the sum of the parts’ looked in detail at the complex range of moving parts involved in these operations and concluded that each must be considered individually and collectively in order to keep collapse of stow incidents to a minimum.

In chairing the session, UK P&I Club’s Loss Prevention Director, Stuart Edmonston set the scene, “Container loss incidents attract attention. Overall, the industry loses a relatively small amount of roughly one unit per 160,000 carried but each loss has significance to a range of stakeholders, including the ship operators, cargo interests, insurers and, not least to the natural environment both at sea and on shore.”

A review of the webinar proceedings (https://vimeo.com/444176895) highlights the wide range of influences that can impinge on stack collapses on ships and the potential loss of containers overboard. Peregrine Storrs-Fox TT Club’s Risk Management Director took the lead in summarising these. “While adverse weather and the avoidance of it through to considered design and construction of container ships are clearly vital, the ‘moving parts’ of causation range through all aspects of container operations. TT Club is involved in all aspects of the container supply chain, but uniquely concentrates its energies on those factors considered within the Cargo Integrity campaign that have bearing on this type of casualty, such as the correct declaration of cargo mass as well as the safe packing and securing of the freight within the container, together with the container structure and maintenance.”

Ship-board factors run from proper inspection and regular maintenance of deck fittings, locking bars, twistlocks and lashing bridges, to the use of accurate data to predict parametric rolling and other ship motions, and the incidence of a so-called ‘stiff ship’ situation, at the design and construction stage. Neil Gardiner of casualty investigators, Brookes Bell lead the discussion on this area of causation. “In addition to taking into account the bending motions of ships in heavy seas in the design of, particularly, the larger container ships of today, operational prevention of isolated and unnecessarily high stacks coupled with high GMs should be prioritised,” advised Gardiner. “The whipping action that ships often experience can have a significant effect on high and isolated container stacks that may have been left between interim discharge/load ports to avoid restowing.”

From the legal perspective Tom Starr, Senior Claims Director at UK P&I pinpointed the difficulties in establishing causation and liability. “The very nature of the modern container shipping industry, the very large and sophisticated ships and the involvement of numerous parties means that evidencing seaworthiness, proper stowage and the cause of a casualty is a huge challenge,” explained Starr. “Add to this the variable investigation standards of flag states in conducting official investigations; it may be unsurprising that lessons learnt for the future can be speculative.”

From a plethora of audience questions, one was noteworthy: challenging the panel to suggest their most pressing improvement to oil the moving parts driving this issue. “It is a shame that the MARIN report Lashings@Sea was only partially followed through; there are a number of outstanding recommendations,” was Storrs-Fox’s answer. “That study itself was in relation to ships around 10,000 TEU, so less than half the capacity of the largest now in service. A second MARIN type research, picking up the unresolved actions, and drawing on developments in technology and the other factors would be valuable in increasing safety and certainty in shipping.”

For Gardiner more accurate data on the physical forces at play on containers stacks to be used in calculations at the ship design and construction phase and for Starr better communication between all parties. “When these casualties occur and are under investigation, it is only through more transparency about the actions of the moving parts that future incidents can be minimised,” he concluded. 

About TT Club

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

www.ttclub.com

About UK P&I Club

The UK P&I Club is a leading provider of P&I insurance and other services to the international shipping community. Established in 1869 the UK P&I Club insures over 244 million tonnes of owned and chartered shipping through its international offices and claims network. ‘A (Stable)’ rated by Standard & Poor’s with free reserves of $505m, the UK P&I Club is renowned for its specialist skills and expertise which ensure ‘best in class’ underwriting, claims handling and loss prevention services.

The UK P&I Club is managed by Thomas Miller, an independent and international insurance, professional and investment services provider.

www.ukpandi.com

FIATA and TT Club congratulate regional winners of young international forwarders award

Geneva/London, 4 August 2020 – FIATA International Federation of Freight Forwarders Associations and international freight transport insurer, TT Club, announce this year’s regional winners for the Young International Freight Forwarder of the Year Award (YIFFYA). For over 20 years, the award has been providing valuable training opportunities for young talent in the freight forwarding industry.

The YIFFYA has again attracted many talented candidates from around the world. Representing their respective companies and national associations, candidates submitted their dissertations earlier in the year, focused on demonstrating their expertise in freight forwarding. The dissertations sought to illustrate complex multimodal shipments of cargoes such as large crane assemblies, locomotives, halal meat and rainbow trout eggs. Many of the candidates this year were able to further demonstrate their expertise through inclusion of COVID-19 challenges, explaining how these were overcome.

TT Club recognises the importance of encouraging new talent in the freight forwarding business and has supported the competition with its sponsorship throughout the 20 years of the award’s history. Mike Yarwood, TT Club’s Managing Director, Loss Prevention and the Chair of the Award Steering Committee, commented “The awards continue to celebrate the achievements of young forwarders and both the Club and FIATA recognise the high standards of professionalism in our industry that must be exhibited in the most challenging of times. Throughout the current crisis – and for some time into the future – forwarders will be critical to the maintenance of an efficient and effective global supply chain.”

This year’s regional winners are:

  • Region Europe: Ms Femke Marie Fürst (DSLV – Germany)
  • Region Africa and Middle East: Ms Vimbai Loreen Manyumbu (SFAAZ – Zimbabwe)
  • Region Americas: Ms Anastasia Gureeva (CIFFA – Canada)
  • Region Asia Pacific: Mr Umair Aamir Sheikh (PIFFA – Pakistan)

FIATA President Basil Pietersen added his congratulations to the four winners, “Our award aims to contribute to the development of quality professionals and reward young talent. The entries this year were, as ever, of a high standard and drew from a wide range of dissertation topics. I am heartened by the exceptional work of all the entrants, which demonstrates the complexity of processes carried out within the global supply chain and the logistics skills required to serve it. In addition, they underline the need of forwarders worldwide to adapt quickly to regulatory, political and economic pressures.”

Traditionally, the four regional winners would present their dissertations to the Award Steering Committee at the FIATA World Congress, with final judging and the announcement of the global winner taking place during the event. Travel restrictions being as they are, there will be no congress held this year, so the judging will be completed remotely, with the regional winners’ entries being presented via videocall in October 2020.

Both FIATA and TT Club wish to thank all those individuals who entered this year’s competition and acknowledge their employers and national freight forwarding associations for the enthusiasm and commitment they have shown to ongoing training within the international logistics and freight forwarding sector.

About FIATA

FIATA International Federation of Freight Forwarders Associations is the largest nongovernmental organization in the field of transportation. It is the global voice of freight logistics, representing an industry that covers approximately 40,000 freight forwarding and logistics firms, and employs around 10 million people in some 160 countries. 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 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 forum examines the barriers to growth of autonomous freight transport

The forum, held via an interactive webinar entitled ‘Drones and autonomous vehicles: The future… now?’, presented the current advances in autonomous transport in the air, at sea and on land. It examined the benefits and limitations of the technologies as well as the accelerating effects on adoption within international supply chains brought about by the current crisis.

The development of drones, autonomous road vehicles and unmanned ships has been rapid in recent years. The benefits of such automation to freight transport infrastructure are often enumerated – sustainability, cost reduction, environmental protection and resistance to disruption. However, the adoption of such technologies has seen a degree of resistance due to concerns over safety, security, levels of investment and variable regulatory regimes.

“To provide a forum at which the pros and cons can be explained and debated was our primary aim,” says TT Club’s MD Loss Prevention, Mike Yarwood. “Some of the concerns about widespread use of autonomous transport methods, safety and security for instance, can be in fact improved in certain circumstances through the technology. At TT Club, one of our fundamental principles is the dissemination of best practice and risk mitigation across all modes. We feel therefore that an understanding of, and debate about, the implications of automation is vital for its responsible development.”

Participating in the forum under Yarwood’s guidance were: Svilen Rangelov, Co-Founder and CEO at Dronamics; Pranav Manpuria, CEO of autonomous truck developer, Flux Auto and Hussain Quraishi, Strategic Innovation Manager at Wärtsilä, a leader in smart technologies for marine and energy markets. Each emphasised the advantages of autonomy on the transport modes in which they specialise.

In the air, most notably Rangelov outlined the flexibility of drones in delivering cargo to smaller and possibly more remote centres of population as economically and as swiftly as larger cities. Speed to market for urgently required supplies, such has been seen during the COVID-19 crisis, was also emphasised.

Taking a broader slice of the supply chain, Manpuria suggested that driverless trucks could be slotted into a transport system that also features automated warehouses, ports and freight terminals. Computer-guided inventory selection, product picking and packing and lift-truck operations can be integrated with optimum road vehicle scheduling to improve supply chain efficiency.

At sea, the near-term benefits of autonomy including increased safety and voyage optimisation have already been realised. The medium-term benefits of reduced crew are expected to impact coastal cargo vessels the most, where crew expense forms a higher percentage of operating costs and where enhanced situational awareness and precise manoeuvrability is at a premium. Wärstilä’s autonomous technology in the marine sector is well advanced across smart sensors, smart routing and smart vessel control. The technology is demonstrable and has been proven to enhance safety and provide operational savings. 

So what of the barriers to more rapid development? “The COVID-19 crisis has certainly acted as an accelerant for change in potential adoption of autonomous technology, as it has in other aspects of supply chain management,” says Yarwood. “But significant barriers need to be overcome. Our panel identified a number of these and responded to concerns from the webinar’s participants around the world.”

As an obstacle, perhaps surprisingly, the level of investment required is not high on the list.  A lack of uniform regulation across national governments and even within countries is a major block to autonomous vehicle and drone deployment. This is an incidence of regulation and certainly international authorities not keeping pace with commercially driven technological advancement.

Environmental hazards such as bad weather, winds and high seas affecting drone operation and autonomous ships, and icy and rain-effected roads are seen as challenges that technology can cope with and the avoidance of human error is generally seen as an asset in improving safety. A vulnerability to cyber-attack that is perceived to increase with the use of computer-controlled vehicles is a strong disincentive to adoption, the forum concluded.

“However, this particular threat is of critical concern across the supply chain in general,” says Yarwood. “And autonomous transport with all its environmentally sound and economically tempting characteristics will continue to progress.”

A recoding of the webinar proceedings can be viewed here – https://vimeo.com/438946190

An overflow of Q&A’s can be found with this link: https://i.emlfiles4.com/cmpdoc/4/9/5/3/files/673720_drone-webinar-qa.pdf?dm_t=0,0,0,0,0

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

DRONAMICS

www.dronamics.com

silven@dronamic.com

Flux Auto

pranav@fluxauto.xyz

https://fluxauto.xyz/

Wärtsilä

https://www.wartsila.com/marine

hussain.quraishi@wartsila.com

TT Club supports UK crime agency targeting cargo theft

The Freight Unit of the National Vehicle Crime Intelligence Service (NaVCIS) has been involved in numerous theft cases related to cargo crime in the UK; most recently acting to recover £200,000 of stolen goods.  Long-time supporter, international freight transport insurer TT Club welcomes the agency’s successes in recovering goods and tracking their owners, significantly reducing the extent of the loss.

London, 14 July 2020

Through the recent period of lockdown in the UK, there has been a demonstrable change in behaviour and tactics of criminal organisations involved in cargo theft. Restrictions on free movement have impacted criminal “business models”. Reported theft cases have demonstrated an increase in local activity and involved thefts from warehouse facilities, something less frequently experienced in the UK.

In recent weeks there have been a number of “hook-up” thefts, whereby perpetrators steal entire loaded trailers from premises. This type of incident underlines the need for physical barriers to protect goods and assets. King pin locks, perimeter fencing, CCTV and security guards would also serve to deter perpetrators.

Following a recent spate of arrests across the UK in such cases, police searched various premises and discovered several hundred boxes of fashion goods. In the normal course of events, these goods risk disposal or destruction. Fortunately, on this occasion, the arresting police force contacted NaVCIS’ Freight Unit to report the discovered goods. The agency used its extensive database of theft activity to identify the reported loss of such goods and therefore the rightful owner. In this instance nearly £200,000 worth of stolen goods were recovered and returned.

The Freight Unit is part of the NaVCIS, a national police unit that acts as a bridge between the police and industry.  Different sections of the service, of which the Freight Unit is one, handle crime involving ports, vehicle financing fraud and agricultural machinery among other types of crime.  It works hard to protect communities in the UK from the harmful consequences of crime. It provides dedicated police capability into developing and disseminating intelligence that helps police forces pursue offenders, recover stolen goods and prevent crime, when and where possible.

“This is a great demonstration of the valuable work being undertaken by NaVCIS’ Freight Unit,” said Mike Yarwood, TT Club Managing Director Loss Prevention. “Unfortunately, the Unit would not exist without the continued support and sponsorship of multiple private entities,” he continued. “Results like this should be a call to action for all potential stakeholders to support this valuable resource – less about direct benefit, rather taking responsibility to tackle crime proactively.”

TT Club has supported NaVCIS’ Freight Unit for a number of years as it believes their work is crucial to understanding and stamping out crime in the supply chain. In addition to helping recover stolen goods and allowing police to hold thieves to account, their work improves insurance records and disrupts criminal activity in the supply chain on a larger scale.

As it remains one of the main disruptors of global supply chains, TT Club’s own commitment to minimising the effects of cargo theft remains undaunted.  This element of risk is consistently one of the top five heads of cost in terms of claims for businesses TT Club insures. In addition to collaborating with a number of organisations to address this global challenge (for a recent example see the Club’s joint report on theft with BSI Supply Chain Services and Solutions here), TT Club is focused on understanding all aspects of this risk and where possible influencing good management controls to mitigate the potential losses. More advice on this approach is available in the Club’s StopLoss publication.

As restrictions on movement are lifted in the UK, stakeholders need to be ever more vigilant, exercising due diligence to ensure that they maintain security, in what is predicted to be a very active period of cargo theft. The COVID-19 lockdown is unlikely to have diminished organised criminal gangs’ appetite to realise funds through cargo theft, which continues to be a low-risk high-gain opportunity for them.  

For more information on how to support the work of the NaVCIS’ Freight Unit and to help mitigate the risk of cargo theft, please contact freight@navcis.pnn.police.uk.

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.

TT Club publishes workplace guidance to help UK ports through the coronavirus pandemic

As businesses across the UK strive to regain levels of activity with the easing of restrictions, it is imperative to maintain the safety and well-being of all workers and more important than ever for employers to understand the unusual risks that they and their workforce face under unique circumstances. TT Club, a leading international insurance provider specialising in the cargo handling sector and an Associate Member of the British Ports Association (BPA) has prepared a short paper for UK ports and terminals to consider as part of their risk assessment and management plans during the COVID-19 outbreak. 

UK ports have demonstrated their resilience by continuing to facilitate 95% of the UK’s trade throughout the lockdown period, which includes half of the country’s food imports, along with medicines, energy and fuel. Those port workers responsible for making it happen have been identified as ‘key workers’ by the Government and continue to need support as the lockdown now starts to be gradually lifted.

The TT Club paper (available Here) is part of the BPA’s Port Futures Programme, which considers emerging and innovative trends in the ports sector.

Commenting on the TT Club paper, Sara Walsh, Corporate Services Manager, at the British Ports Association said: “Duringthis rather unusual and challengingtime,all UK ports are under a lot of pressure. They are having to make difficult decisions about how best to maintain their workforce so critical tasks are performed and legal duties met, whilst also supporting staff who are working at home or are self-isolating.

We are pleased to be working with TT Club to produce this short paper that addresses some of the key things UK ports and terminals must continue to prioritise when managing their workforce during COVID-19 and its immediate aftermath.

The maritime sector is like no other and has worked together during this unprecedented time to overcome the challenges faced as best it can whilst still ensuring food, medicines, energy, fuel and other products continue to flow into the country.”
TT Club is a mutual insurer, formed by the transport industry for the benefit of the industry. Its mission is to make the industry safer and more secure and therefore prioritises risk management and loss prevention, promoting the development and implementation of sound operating practices to the port and terminals sector. In the current COVID-19 pandemic, TT Club has a wealth of guidance to the industry as a whole through its dedicated web page that can be accessed here https://www.ttclub.com/news-events/coronavirus-guidance/

Michael Yarwood, TT Club’s Managing Director for Loss Prevention commented on his organisation’s report for the BPA: “Like many other sectors who have ‘key workers’, those who work at UK ports and terminals are in a unique position as the vast majority of roles cannot be performed at home.
We have compiled a list of factors operators should consider as part of their risk assessments and management plans during the COVID-19 outbreak. From social distancing, cleaning facilities, personal protective equipment, shift patterns, communications to remote working and health and well-being, ports must continue to support their staff and ensure all risks are managed as best they can be.

We are committed to supporting the industry in this effort and are continuing to create and collect resources such as this paper to guide good practice.”
In further support of the ports sector during the pandemic, Port Skills and Safety, the industry body for port health and safety with which BPA works closely is developing a ‘Gazetteer’ document that will signpost the various government and industry guidance documents available. 

Ports of all size and type are having to alter their usual ways of working to ensure social distancing measures can be followed as much as possible. The Gazetteer will be circulated to BPA members and can be consulted here, Ports Coronavirus Hub. It is intended as a living document, updated as new government and industry guidance continues to be published.
About TT Club – TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.  www.ttclub.com  

About British Ports Association (BPA)

  1. The British Ports Association represents the interests of over 100 port members, covering more than 400 ports, terminal operators and port facilities.
  2. The UK ports industry plays a key role in the country’s economy as 95% of the UK’s international trade – imports and exports – is carried through British ports.
  3. UK ports also handle more than 60 million international and domestic passenger journeys each year.
  4. The UK port industry is the second largest in Europe, handling around 500 million tonnes of freight each year.
  5. UK ports directly employ around 115,000 people.

The British Ports Association recently produced a video which highlights the importance of ports to the UK’s economy. It can be viewed by clicking here

Media / Photos
Photos are available for publication in connection with this story: https://www.dropbox.com/sh/hpmvwcu8o3dm2lp/AAChVlLzRrXl1s5As8uj2Zm2a?dl=0

TT Club warns of persistent ‘stowaway’ risk

Clandestine migration has been a problem for the transport sector across Europe for some time now. While more stringent border crossing checks have been imposed due to the current COVID crisis, the risk to operators is not diminished. Furthermore, as the restrictions on movement begin to ease migration activity could be set to escalate warns international freight insurer TT Club

The smuggling of people has unfortunately become a major issue in certain parts of the world. Political imperatives in target countries have led to stricter immigration restrictions and increased government action. International clandestine migration has become a persistent threat to the unitised supply chain.

No mode of transport can be considered exempt from clandestine movement of people. However, the risk is greatly heightened during the road modality. In Europe, BSI Supply Chain Services and Solutions statistics highlight that 86% of recorded incidents involve movement of cargo by road, which in the case of the UK also often involves a ferry crossing.

Nor has the current COVID pandemic lessened the dangers.  The effect is more that enhanced border control measures and travel restrictions have merely shifted the focus or means of smuggling activities temporarily.  Indeed, according to a recent report[1]from the European Migrant Smuggling Centre (EMSC), part of Europol, migrant smugglers have been increasingly using small boats to cross river borders and the English Channel.  More significantly for the freight industry, the report goes on to say there has also been a shift “to hiding of irregular migrants in concealments in freight vehicles and cargo trains that still move across the borders” during the COVID outbreak.

“Our first consideration of course must be with the well-being of the migrants themselves, who are often victims of criminal activities and whose lives are often at risk,” says TT Club’s Managing Director, Loss Prevention Mike Yarwood. “In terms of the liabilities that transport operators are exposed to, however, TT Club is warning of potential physical damage to cargoes, additional freight costs, vehicle and equipment detention, fines, penalties and reputational damage,” Yarwood states.

Criminal organisations are often the facilitators of this clandestine movement. They know that the simplest way to move people across international borders is to hide them in legitimate freight transport.

Pre-COVID there had been numerous incidents featuring the cross-channel route to the UK in the recent past, including the tragic case of 39 Vietnamese migrants found dead in a refrigerated road trailer last October. However, such events have not been limited to this type of cargo unit – as proved by the discovery in March of 10 Eritreans in a shipping container in Hull. The container was unaccompanied and was loaded onto a ferry in Zeebrugge.

TT Club emphasises that all stakeholders who regularly undertake cross border freight movements must be vigilant. Close consideration should be given to the preventative guidance that governmental authorities produce. TT Club itself has collaborated with leading global provider of supply chain intelligence; BSI Supply Chain Services and Solutions to publish a StopLoss briefing entitled Clandestine Migration*.

In the fast-changing COVID circumstances, the easing of ‘lockdown’ restrictions may further exacerbate the problems of illegal migration. “This might be a particular danger as regards potential movement into the UK,” states Yarwood. “Although cross-border freight services are still running during the COVID lockdown and therefore providing opportunities to migrants, it is likely that there are large numbers of people currently unable to move, who may want to cross to the UK and will attempt to as the restrictions on movement are lifted at first gradually and then fully.”

“Constant vigilance and awareness are the only ways to combat stowaways in these types of transport. Vehicles should be checked regularly en route to ensure that they have not been entered, particularly after stops when left unattended,” advises Yarwood. The briefing document details the measures that should be taken: specific training for drivers; precise security procedures; robust security devices to secure the vehicle, goods and cargo space; and practical measures before and during the packing process, and in transit.

TT Club remains committed to assisting operators with advice and the development of good practice guidance in all risk situations, including the serious situation involving clandestine migration. But as Yarwood concludes, “Whilst owners, operators or drivers may contract with third parties to conduct the required checks on their behalf, they are likely to remain liable to any penalty and/or loss incurred. Consequently, due diligence in the selection of such contractors is critical.”

[1] EMSC 4th Annual Activity Report – 2009 (https://www.europol.europa.eu/sites/default/files/documents/emsc_4th_annual_activity_report_-_2019.pdf)

*Available for download 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 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 welcomes impetus given to electronic bills of lading development

The target of 50% of all bills of lading to be electronic within the next decade has been set by the Digital Container Shipping Association (DCSA) in an announcement made last week.  The international freight transport insurer, TT Club welcomes the commitment by the group of container shipping lines that together operate nearly 70% of the world’s capacity.  The initiative is consistent with the increased trend towards digitisation across the industry to improve efficiency and reduce costs.  However, the current pressures felt through the supply chain as a result of the COVID-19 pandemic have no doubt spurred the action.

In its role as liability insurer and adviser on risk management throughout the container industry, TT Club is active in encouraging digitisation, including the cumbersome bill of lading processes.  Additionally, the mutual has been providing valuable guidance to operators on the unique practical issues that they are experiencing with the physical transfer of bills of lading and other documentation due to lockdowns, government restrictions and other COVID-19 related disruptions. The Club has compiled a dedicated COVID-19 webpage¹ to communicate such advice, including numerous briefings, FAQs and links to further regulatory information.

Peregrine Storrs-Fox, TT Club’s Risk Management Director comments, “As early as the late 1990s TT Club recognised the substantial benefits that would accrue to the entire international unitised supply chain, as well as liner shipping businesses, through the adoption of electronic documentation, taking its part in the foundation of bolero.net². This initiative also understood that the bill of lading is but one component in much broader trade practices, including buyers and sellers and, critically, banks. As a result bolero.net has developed a significant array of trade offerings that wrap around the fundamental characteristics that are fulfilled legally in the traditional bill of lading.”

TT Club is concerned that there continues to be such significant reliance on paper-based processes, whether certification, checks, or the range of contractual documents in international trade.  The opportunity for seismic efficiencies and broader benefits were extensively explored in TT Club’s joint work with McKinsey & Co, ‘Brave new world? – Container transport in 2043’³ which adamantly concluded that the future for the container shipping industry was digital.

Some advances towards true digitisation have been made over the last two decades, including the formation of DCSA itself, with a mission to bring efficiencies through standardised messaging amongst shipping lines. More pertinent to the electronic bill of lading (ebsl) itself, the last few years have seen a proliferation of options being brought to market, mostly embracing to greater or lesser extent the much-vaunted distributed ledger technologies, or Blockchain. It is also clear that TradeLens, the consortium founded by Maersk and IBM, also has ebsl in sight.

Storrs-Fox concludes, “The current pandemic has inevitably advanced the digital cause. It is entirely reasonable for DCSA to grasp this particular nettle, taking full advantage of the lessons learned over the last two decades. Indeed, the plethora of physical documentation and ‘chops’ for every international transport involving sea carriage remain fertile ground for further efficiencies that may yet dwarf those immediately in view.”

¹https://www.ttclub.com/news-events/coronavirus-guidance/

²https://www.bolero.net/

³https://www.ttclub.com/news-events/brave-new-world/

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

Maintaining supply chains: TT Club supports the industry

While many of the Western consumer economies tentatively explore the easing of social restrictions, the global supply chain environment remains significantly disrupted and operators will continue to face many challenges.  International freight insurer, TT Club seeks to guide them with advice for turbulent times.

London, 14 May, 2020

TT Club draws attention to its dedicated Coronavirus webpage, including both risk briefings and alerts, as well as a set of Frequently Asked Questions (FAQs)*.  The insurer, in line with key elements of its mission to make the industry safer and more secure, is keen to provide commentary on issues that have arisen during the onset of the pandemic.  The diverse governmental responses around the globe have created a variable demand for goods, complex regulatory structures, and significantly changed trade patterns.

Among the expanding range of questions dealt with by TT Club’s FAQ service, cargo abandonment and seafarer welfare at port facilities, a current focus for crew exchanges, are particularly salient.  There is likely to be an increase in the abandonment of low value cargoes in containers, either delayed in transit or for which a market is no longer available, causing additional headaches for forwarders and terminals alike.  Similarly, amongst the issues faced by ports, many face a responsibility for properly protecting all involved in the safe transfer of ships’ crews, many of whom have had protracted periods at sea.

“While the current circumstances facing global supply chains and the operators that serve it are truly challenging, TT is providing carefully considered and pragmatic advice to real issues,” says TT Club’s Risk Management Director, Peregrine Storrs-Fox.  “As a specialist insurer for the international transport and logistics the Club has a unique insight into the nature and extent of risk exposures.  As such, the ability to compile and recommend mitigating measures in the current circumstances is well-founded.  In relation to the FAQs, we would welcome enquiries from the industry on issues that maybe of concern.”

Other topics currently covered by the FAQs include: dealing with customers whose cargo delivery has been delayed and the proper use of force majeure clauses in contracts; protecting key workers in a responsible way; advice on demurrage and detention charges; comments on the need to alter terms of Standard Terms and Conditions (STCs) and bills of lading in order to protect against liabilities; and a responsible approach to any relaxation of safety regulations by government authorities.

“Extraordinary circumstances will often require innovative and exceptional practices.  At this time, while supply chain stakeholders strive to maintain their valuable operations effectively, we seek to provide input that supports sound, safe practices, protecting as far as possible against unexpected liabilities,” concluded Storrs-Fox.

* https://www.ttclub.com/news-events/coronavirus-guidance/

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 warns of risks arising from the accumulation of cargo

As consumer demand and manufacturing production slows in many parts of the world, cargo, either in containers or stripped from transport units, is building up in warehouses, port terminals and inland depots. International freight and logistics insurer, TT Club warns of the additional risk this is bringing operators.

The current pandemic has disrupted global supply chains in a wide variety of ways. In particular, the lag in its effects between the large-scale sourcing regions of China and other parts of Asia and the consuming markets of Europe and North America has caused significant build-ups of goods produced in the former regions but not now required in the later.

Such accumulations include cargo in containers at both transhipment and destination port terminals, as well as import consignments that have been delivered to warehouses and distribution centres (DC). These are primarily non-essential products, for which there is little demand as retail outlets are closed or supplies for production lines that are either static or at reduced capacity.

In the UK for instance, the latest estimates are that 90% of the country’s warehouse capacity is full, with the UK Warehousing Association (UKWA) forecasting no available space by two weeks’ time. One high-street fashion retailer has reportedly leased 40% more storage than it would have under normal circumstances.

“Security is clearly the most dominant of the risk issues as operators seek alternative storage,” comments Michael Yarwood, Managing Director Loss Prevention at TT Club. “Whether it’s taking up buildings not usually used for storage or laden vehicles parked adjacent to a full warehouse, or simply facilities unfamiliar to the operator, the security regime may not be of a similar standard. This concern is not just limited to fencing, lighting, security patrols and CCTV, but also communication with hauliers delivering cargo to the unfamiliar premises. There is also the constant danger of vehicles being diverted into the hands of criminals; so-called round the corner theft,” emphasises Yarwood.

The physical characteristics of a temporary facility may also be unsuitable in a range of ways, such as weather-tightness, phytosanitary issues, uneven hard standing. Further, consideration needs to be given to the nature of the cargo and the capability to handle and store hazardous materials and specialised commodities correctly (such as high value or temperature controlled). These factors may also extend to inappropriate or substandard handling equipment and the requirement to subcontract labour and security personnel from previously unknown sources. Where possible, established standards should be maintained, including undertaking full due diligence.

Yarwood also draws attention to the importance of maintaining records and an efficient documentation flow. “In a situation where goods and cargo units are located in unusual facilities, perhaps off-site at some distance, it is vital for accurate records of movements, storage times and potential drawdown requirements to be preserved.”

Such bottlenecks in the supply chain through the lack of demand for goods may be temporary as diminishing orders start to affect the flow through. However, one of the knock-on effects currently being experienced is that some port terminal operators, along with their ocean carrier customers, are attempting to help importers by delaying delivery and/or providing temporary storage for containers.

A recent survey by the International Association of Ports & Harbors (IAPH) shows a mixed picture at ports around the world. “35% of ports reported an increase in utilisation of warehousing and distribution facilities for foodstuffs and medical supplies, with some ports reporting capacity shortages,” the analysis shows.

Peregrine Storrs-Fox, TT Club’s Risk Management Director, commented, “There will be regional variations within these trends of course. As inbound congestion on terminals rises, we are seeing some European ports offering off-terminal storage for undelivered import containers. In the current extraordinary environment, all involved in the supply chain should be taking extra steps to assist in finding solutions. Care must be taken however to ensure that in providing such a facility, operators do not expose themselves to additional liability and risk.”

Many of the potential risks and liabilities that apply to warehouse and DC operators will face a terminal or carrier in placing undelivered containers in temporary storage locations. In addition, container and cargo damage potential could be heightened in facilities unaccustomed to handling full containers. There is a heightened risk of phytosanitary issues where off-terminal storage locations may have less permanent surfaces or increased exposure to vegetation and pest ingress, particularly if the storage is long-term. The dwell time of such containers may also become an issue if the cargo is eventually abandoned as the goods become ‘off-season’ or the importer ceases to trade. The question of traceability then becomes a more critical issue.

TT Club remains vigilant in its care for its Members’ concerns and will continue with risk management and loss prevention advice to the freight and logistics industry during the current crisis. A dedicated Coronavirus Guidance page is available 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 Continues Guidance to the Freight Industry Amid COVID-19 Crisis

As the unfolding consequences of the coronavirus pandemic continue to disrupt international trade, freight transport specialist insurer TT Club is maintaining its advice service to stakeholders along the global supply chain.

London, 1st April 2020

Over the coming weeks there will be considerable uncertainty for stakeholders through the entire transport industry as the global economy slows, governments prioritise specific supplies, consumer spending decreases and personnel shortages become more prevalent. However, the need for the supply chain of essentials – foodstuffs, pharmaceuticals and medical equipment – to remain robust and efficient will be more critical than ever. The demand to maintain reliability, and continued flexibility of the services provided, will be acute for many stakeholders, faced with the common three business imperatives during the current crisis of staff, customers and cash.

In this unusual, indeed unprecedented environment, TT Club points out that all sectors of the industry will be put under pressure by customers and suppliers to help mitigate potential issues, losses and liabilities. The scenarios faced will be many, various and complex, affecting port, terminal and warehouse operators as well as carriers across all modes, forwarders and logistics companies. TT Club aims therefore to continue providing an advisory service that is supportive and alive to the additional and unfamiliar risks and liabilities being presented.

“As we have advised in the past, fundamentally there is a need to communicate; to have an open dialogue with customers and suppliers and a good understanding of fast-changing controls and regulations imposed by local, national and even international authorities,” comments Peregrine Storrs-Fox, TT Club’s Risk Management Director. “The physical movement of cargo is understandably experiencing delays due to cancelled ship sailings, shortage of air freight capacity and land border checks and these disruptions to the norm will cause friction between the various links in the chain. An understanding of ‘what is going on’ by participants in the chain will serve to ease such friction.”

Those involved in the global transport industry are by their nature experienced problem solvers often employing innovative solutions. Where contractual relationships are in place, the supplier is generally obligated to explore all reasonable options to mitigate a potential loss arising in circumstances such as presented by this coronavirus outbreak. As Storrs-Fox comments, “Any party seeking in the event of a future dispute to rely on a ‘force majeure’ defence may well face the burden of evidencing that they took all reasonable steps to mitigate the loss”.

Depending on the individual stakeholder responsibilities, there are a number of proactive risk mitigation strategies that may be considered. Clearly, keeping well informed and maintaining open channels of communication with the national or local authorities relevant to the business obligations will be key, both to compliance with additional requirements and service to customers – even recognising that such obligations may be in another part of the world and possibly managed through a partner.

Many established ‘crisis management’ plans will be relevant for the circumstances faced, even if the scale and scope of the current disruption was not envisaged. Such frameworks will, however, assist in identifying vulnerabilities that may impact the ability to fulfil usual obligations or carry out standard business requirements. The specifics of this virus – such as exposure through contact with surfaces – necessitates consideration of additional protections and training for staff and will almost certainly make usual personnel and site security procedures more complex.

While TT Club looks to provide supportive and relevant advice, it is also building a dedicated page of available materials (https://www.ttclub.com/resources/coronavirus-guidance/) in order to share good practice findings from around the globe. In amongst all the strain of responding to the immediate crisis, however, the Club urges stakeholders to maintain as much normal rigour as possible in their internal systems and processes, in sound safety practices and in robust physical and cyber security. As Storrs-Fox concludes, “Such standard business ‘hygiene’ retains lasting significance, alongside the much heightened health hygiene to which we are all responding”.

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