TT Club

The foremost port and cargo handler insurer, TT Club has spoken of the risk factors most commonly facing port authorities and terminal operators, offering focused advice on how these entities can most easily minimise risk of damage to both cargo and equipment, bodily injuries and reputational impairment.

Barcelona & London, 11th December, 2017

Speaking at October’s Mediterranean Ports Conference in Barcelona, Dorota Jilli, a Senior Underwriter at TT Club, outlined the insurer’s broad approach to the risks presented in the port environment, borne out of the benefit of TT Club’s vast experience of providing cover to a large variety of port authorities and terminal operators around the globe. Apart from assessing the differing business models and activities, the Club also carries out detailed analysis of historical claims of all types including property, liability and bodily injury, in order to provide effective advice on loss prevention and risk management.

“The risk profile of ports and terminals can be measured against a basic matrix,” said Jilli in her presentation. “For example, cargo handling operations will fall into a higher end of risk assessment if they have poor equipment maintenance or lack staff training regimes. A culture of favouring productivity over safety, or scant attention to security are key characteristics of higher risk operations.”

For landlord port authorities, which don’t provide operational services but grant concessions to operators, heightened risk factors include poorly constructed contracts with concessionaires or other port community stakeholders. A lack of emergency response protocols or clarity of interface with other port service providers also lead to greater risk.

Those operations that are found at the lower end of the risk spectrum feature well-trained and motivated workforce and a management culture with commitment to safety, properly maintained equipment and secure premises.  In the case of landlord authorities those at lower risk display a strong element of control over the relationship with their tenants, having robust contracts in place with port stakeholders and plan carefully for the correct response to emergencies.

Naturally, each port environment is individual and different, but Jilli stated that the risks faced by both ports and operators are both symbiotic and able to be grouped for risk assessment purposes. While direct involvement in cargo operations, for example, has certain risk factors, setting appropriate frameworks and contracts may be equally important for those acting more in the ‘landlord’ capacity.

“In this environment, it would be fallacy to think that non-operational risks are entirely benign,” Jilli said. “Furthermore, the interactions between the port community stakeholders, for activities such as navigation, berthing or emergency response, are critical not just for liability but also on-going successful outcomes.”

The presentation proceeded to explain how TT Club is committed to communicating lessons from incidents, as much in relation to improving risk management as evidencing the need for adequate insurance protection. Case examples illustrated the ways in which risks have arisen and may be mitigated. However, Jilli was careful to highlight that port entities, both operational and landowning (which are often governmental) should consider the effect of uninsured costs that can transpire from accidents. “Well-established research evidences that uninsured or economic loss arising from incidents may be as much as $36 for every $1 that is recovered under an insurance policy,” she quoted. “In the unfortunate event of a serious incident, unexpected expenses will be incurred such as diversion of management time, delays in re-establishing normal revenue streams, temporary additional labour and emergency supplies, and on-going reputational damage among others.”

Common sense in the consideration of the complete port community risk universe should be part of all good risk management for all stakeholders.

ENDS

Notes to editors:

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. As a mutual insurer, TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Customers include some of the world’s largest shipping lines, busiest ports, biggest freight forwarders and cargo handling terminals, to companies operating on a smaller scale but whose operations face similar risks. TT Club specialises in the insurance of Intermodal Operators, NVOCs, Freight Forwarders, Logistics Operators, Marine Terminals, Stevedores, Port Authorities and Ship Operators. TT Club is managed by Thomas Miller.

www.ttclub.com

About Thomas Miller

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

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

Principal activities include:

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

www.thomasmiller.com 

Amsterdam, 28^th November, 2017

Safety aspects of the way in which cargo is packed and transported in unit loads across the global supply chain continue to be the focus of opportunities for improvement.  During a session of the Intermodal Europe Conference in Amsterdam today, four industry organisations representing different sectors of the supply chain have been drawing attention, in particular, to the responsibilities of container owners and operators in providing equipment that is fit for purpose and  properly packed with cargo as set out in the CTU Code.

The Global Shippers Forum (GSF), ICHCA International, TT Club and the World Shipping Council (WSC) have for some months now been working together to improve safety through a focus on cargo integrity.   The specific aim has been to promote wider use of the IMO endorsed CTU Code[1] for correct packing and securing of all cargo transport units (CTUs).  Improved standards of declaration and handling of dangerous goods are also within the scope of the Code, together with steps to prevent pest contamination, and the provision of containers and other equipment that comply with international rules and standards.

The Code calls for effective interaction between the shipper, who is responsible for specifying requirements for the type of equipment suitable for the cargo intended to be carried, and the container operator in providing units that satisfy such requirements, meet applicable safety and manufacturing standards, and are clean.  Faulty and badly maintained units may have as serious ramifications as incorrect and deficient packing of cargo inside the units.

The Intermodal Conference followed a meeting of the Container Owners Association (COA – http://www.containerownersassociation.org/) earlier in the week and Bill Brassington, representing ICHCA, drew attention to the importance of liaising with that group to ensure safe containers are provided. “While we wish to create greater awareness to the way in which cargo is correctly packed into units, we must also emphasise that those units are suitable.  Our group and the COA are working together to advise operators of their responsibilities,” he said.

“Engagement with governments and industry groups representing the diverse mix of supply chain stakeholders is one of our primary goals,” explained TT Club’s Peregrine Storrs-Fox. “Through communication and understanding of the safety issues comes a wider implementation of the CTU Code and other best practices aimed at cargo and environmental safety.  To this end we urge regulatory and advisory bodies as well as associations to unite with us in spreading the good word.”

The group has been working with the IMO for some time, contributing to aspects of the CTU Code and other regulatory recommendations, but there remains an element of concern that governments may not effectively be communicating agreed IMO requirements and advisory information within their jurisdictions.

Lars Kjaer of the WSC explained, “Although the IMO agreed to amend SOLAS[2] to require a verified gross mass of packed containers as a condition for vessel loading, government enforcement of the regulation may be uneven. We want to make sure that governments as well as industry are promoting the CTU Code and its best practices to all parties in the CTU supply chain around the globe.”

Of course, those that pack the units are primarily responsible for cargo integrity and safety.  These individuals act on behalf of the shipper or beneficial cargo owners.

Chris Welsh as Secretary General of the GSF is representative of shippers within the group of four. He spoke in Amsterdam of the complexity of interaction between stakeholders in the supply chain and how this adds further to the need to engage all in promoting safety.  He stated, “In many modern international supply chains there are multiple ‘hand-offs’ where cargo is passed variously from manufacturers, suppliers, distributors, warehouses, consolidators, forwarders and logistics operators to shipping lines.  Ultimately, however, it is the responsibility of the shipper as the party causing the transport of the CTU unit to demand and control compliance with proper packing standards, and to specify the type of equipment needed for the cargo. This is a responsibility clearly set out in the CTU Code. It cannot be negated or ignored irrespective of the complexity of the logistics chain.”

The challenge taken forward by this industry group is communication to all stakeholders. Through governmental and industry events, progress is being made in increasing awareness of the CTU Code and linking with other organisations which can assist in promoting its widespread adoption in order to deliver improved safety and sustainability in the international supply chain.

[1] IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Pages/CTU-Code.aspx)

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

ENDS

Notes for Editors

The Global Shippers’ Forum (GSF) is the world’s leading global trade association representing shippers engaged in international trade moving goods by all modes of transport. Chris Welsh MBE chaired the Expert Working Group charged with drafting IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). More information is available at: www.globalshippersforum.com

The International Cargo Handling Coordination Association (ICHCA) is an independent, not-for-profit organization dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA actively participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at:  www.ichca.com

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ttclub.com

The World Shipping Council (WSC) represents the global liner shipping industry on regulatory, environmental, safety and security policy issues.  The WSC has observer status at the IMO and was actively involved in the development of the CTU Code. More information is available at: www.worldshipping.org

13^th November, 2017

The Trans- Pacific Asia Conference, held in Shenzhen, China last month provided an opportune forum for leading international freight transport insurer, TT Club to add its voice to growing concerns over the frailty of the global supply chain when faced with cyber-attack.

Alexis Cahalan, formerly of the TT Club, now with Thomas Miller Law based in Sydney, emphasized the logistics and freight forwarding community’s particular vulnerability to disruptive cyber activity.  “Operations which are characterized by widespread office networks;  reliance on multiple third party suppliers;  IT systems predominantly of an in-house, legacy nature, which are poorly protected by security software; and a lack of open communication and reporting of damaging past cyber experiences, are common within the global logistics community.  These characteristics lead to greater risk,” Cahalan emphasized.

Her conference paper, entitled ‘Cyber Risk: Protecting Your Assets from Invisible Attack’ referenced the recent “not Petya” incident as evidence that the risk of cyber attack is now a reality which needs to be seriously addressed by all participants in the transport supply chain.  “There is a case for employing a corporate culture of risk management to assess these vulnerabilities within individual companies and to develop a response framework with this in mind,” advised Cahalan.

Risks are increasing rapidly not just in terms of greater hacking and malware activity.  The desire for supply chain visibility and efficiencies is driving technologies, such as IoT (Internet of Things and access through smart phones and the like.  There is a danger that rapid adoption of such technology means many companies have yet to consider thoroughly the cyber security implications of BYOD (‘bring your own device’) procedures.

TT Club is committed to preparing appropriate loss prevention and risk management advice and support for freight transport operators on an ongoing basis. Defensive action in such a challenging environment can’t be whittled down to just one area of operation. However, human behaviour, both a successful supply chain’s greatest strength and weakness, can be usefully targeted.

“Employee awareness of the potential dangers of day-to-day activities will help with cyber defences. Trust in email communication, auto-connect Wi-Fi settings and password protocols, peripheral equipment and flash drives, computers in general, should all be monitored and reviewed,” concluded Cahalan. “Staff and contractors should be brought to understand that the critical balance between ease of operation and security may bring inconvenience. A corporate culture that articulates, enforces and educates cyber defence will achieve much in terms of mitigating risk.”

ENDS

Notes to editors:

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. As a mutual insurer, TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Customers include some of the world’s largest shipping lines, busiest ports, biggest freight forwarders and cargo handling terminals, to companies operating on a smaller scale but whose operations face similar risks. TT Club specialises in the insurance of Intermodal Operators, NVOCs, Freight Forwarders, Logistics Operators, Marine Terminals, Stevedores, Port Authorities and Ship Operators. TT Club is managed by Thomas Miller.

www.ttclub.com

About Thomas Miller

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

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

Principal activities include:

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

www.thomasmiller.com 

London and Darlington, UK, 3 October 2017

To be announced at ICHCA Conference, Las Palmas, Gran Canaria, Spain

2-6 October 2017

Freight insurance specialist TT Club and the UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, two Thomas Miller managed transport insurers have joined forces with Exis Technologies to move the Hazcheck Restrictions Portal into its next development phase.  Hazcheck Restrictions enables participating lines to enter (or upload) and maintain the operator, vessel and port restrictions for their operations, check for dangerous goods (DG) compliance with partner lines and accept provisional bookings.  The portal started as an initiative with several major container lines that already used Exis Technologies range of Hazcheck compliance systems for their DG shipping operations, particularly to resolve issues posed under vessel sharing agreements.

The next phase of implementation involves encouraging container lines, ports, terminals, shippers and forwarders to upload their data into the portal free of charge for a minimum of two years.  Facilitating the retrieval of the whole range of information from the portal for operational use may lead to a new global portal for the whole supply chain to use in helping to make operations more efficient and safer.

The announcement is made at the International Cargo Handling Association (ICHCA) Conference held in Las Palmas, this October, attended by shipping lines, ports and terminals, as well as shippers and intermodal operators, discussing the latest ways to improve the safety, efficiency and sustainability of the cargo handling industry worldwide.

Peregrine Storrs-Fox, Risk Management Director, TT Club commented, “TT Club has been working alongside Exis Technologies since 2009 to deliver e-learning training solutions to the global supply chain.  The Hazcheck Restrictions portal is an ambitious initiative aimed at reducing incidents related to dangerous goods shipments.  Stakeholder engagement, particularly from ports and terminals, has the potential to deliver a portal which will make a huge difference for the intermodal industry.”

James Douglas, Director, Exis Technologies said, “We are delighted that TT Club and UK P&I Club have recognised the potential in our Hazcheck Restrictions portal.  We hope that the supply chain will join us in our efforts to create this exciting new portal”.

Why is the portal needed?

It is estimated that 10% of containerised shipments include DG, with the result that some ships will have in excess of a thousand containers on any given voyage. This necessitates critical checks to be made against the particular voyage legs (voyage segments between ports/ terminals) for all the DG being shipped. These checks are complex:

• Most lines restrict or prohibit certain classes of DG (particularly explosives, radioactive materials and some organic peroxides in reefer containers) so the booking line needs to know if the partner line that will carry the box or boxes will accept the DG.
• Detailed stowage requirements (–such as on deck only, away from accommodation, or away from sources of heat) mean that suitable space is finite.
• Many ports and individual container terminals have strict rules on the classes of DG that can be loaded, unloaded or transhipped, or even present on board while the ship is in port. Significant disruption can ensue if the ‘wrong’ DG is aboard a ship.

Multiply this process by the thousands of partner line DG bookings made each day and by the number of ports/terminals in the network, under time pressure, and the scale and complexity of the problem becomes clear. Unlike the world of airline cargo shipments there is no single database of port and terminal restrictions or indeed operator restrictions. This leaves each shipping line trying to capture and keep its own record of port and terminal restrictions as they change on a frequent basis anywhere in their global network. The vision of the Hazcheck Restrictions Portal is to deliver significant simplification for all stakeholders, and improve safety and compliance.

NOTES TO EDITORS:

About TT Club

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

TT Club is managed by Thomas Miller.

www.ttclub.com

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 1865 the UK P&I Club insures over 239 million tonnes of owned and chartered shipping through its international offices and claims network. ‘A (Stable)’ rated by Standard & Poor’s with free reserves and hybrid capital of $558m, 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

About Thomas Miller

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

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

Principal activities include:

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

www.thomasmiller.com 

About Exis Technologies

Exis Technologies, headquartered in Darlington, UK, has been a leading supplier of compliance systems for the management of dangerous goods in sea transport for nearly 30 years. They serve 9 of the top 10 container lines.  Exis has been developing e-learning courses for the transport industry since 2009 in collaboration with the International Maritime Organization and in partnership with the TT Club and ICHCA. www.existec.com

The industry coalition committed to promoting the use of the Code of Practice for Packing of Cargo Transport Units (CTU Code)* stresses two of its primary aims: the need for more widespread communication of the Code’s existence and greater cooperation from all parties in the supply chain in putting the Code’s guidelines into practice in accordance with their roles and responsibilities.

Las Palmas, Spain, 3^rd October, 2017

Safety improvements throughout the international supply chain can be made through the proper packing, handling  and transport of cargo transport units (CTUs), including containers, according to the four bodies making up the industry coalition, and which are responsible for a broad cross-section of the global CTU freight  industry.  Speaking at a special session of ICHCA International’s 65^th anniversary conference in Las Palmas, Spain today a spokesperson from each coalition member – Global Shippers’ Forum, ICHCA International, TT Club and World Shipping Council – highlighted the varied challenges the industry faces in achieving such improvements.

Having addressed national government delegates at the IMO last month, impressing on them the shared responsibility to promote the Code’s use, the coalition members today turned their attention to cargo handlers and stevedores.

“Terminal operators and stevedores in many locations play a relatively minor role in packing containers and other CTUs. They nevertheless play an important role in identifying eccentrically loaded, overweight, bulging and otherwise dangerously packed units, and in taking appropriate steps to address any safety concerns,” said Captain Richard Brough representing the hosts, ICHCA International.  “In terms of disseminating this message, we are particularly pleased today to be able to address such a significant group from CARC, the Canarias/Africa Chapter of ICHCA, who are meeting with us this week.”

In highlighting the need for stepping up efforts to communicate the Code and its content, Peregrine Storrs-Fox of TT Club commented, “We recently surveyed some 6,000 industry professionals to ascertain their knowledge of the Code.  A low level response of 5% completing the questionnaire in itself indicates a lack of awareness. Of those expressing an opinion, just 56% felt the Code is sufficient to address safety issues.  Given the comprehensive nature of the Code, this suggests a need for more clarity and explanation of its important safety recommendations. Cooperation from all stakeholders across the global supply chain in order to improve this communication of the Code and, importantly, its uptake is vital.”

Exemplifying one aspect of the Code’s complexity but also its remarkable comprehensiveness, Lars Kjaer of the WSC examined the issue of pest contamination of containers and their cargoes. “The International Plant Protection Convention (IPPC) confirms that the packing of sea containers with cargo is the most likely stage in the sea container supply chain at which pest contamination can occur,” emphasised Kjaer.  “Use of the Code, supported by targeted guidelines, will assist in efforts to mitigate this problem as all involved in the international container supply chain have a duty to ensure that CTUs and their cargoes are not infested with soil, plants, plant products, insects or other animals.”

It is clear that shippers and those acting on their behalf in packing containers and other CTUs around the world are a key group to be engaged in efforts to promote the Code in practice.  Chris Welsh, representing the Global Shippers Forum, also meeting in Las Palmas this week, is keen to spread the message. He commented, “Today’s meeting brings together in a single venue those who operate cargo handling facilities and the shippers and packers who initiate the movement. It is a key moment to bring our important safety messages to all elements of the supply chain and particularly those responsible for packing and securing cargo in CTUs.  We continue to call for cooperation from all such stakeholders to improve the industry’s safety record in this crucial regard.”

*IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Pages/CTU-Code.aspx

ENDS

Notes for Editors

The Global Shippers’ Forum (GSF) is the world’s leading global trade association representing shippers engaged in international trade moving goods by all modes of transport. Chris Welsh MBE chaired the Expert Working Group charged with drafting IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). More information is available at: www.globalshippersforum.com

The International Cargo Handling Coordination Association (ICHCA) is an independent, not-for-profit organization dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA actively participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at:  www.ichca.com

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ttclub.com

The World Shipping Council (WSC) represents the global liner shipping industry on regulatory, environmental, safety and security policy issues.  The WSC has observer status at the IMO and was actively involved in the development of the CTU Code. More information is available at: www.worldshipping.org

25^th September, 2017

A coalition of leading cargo industry organisations representing the full breadth of the global supply chain is maintaining its campaign for safer practices in packing freight containers and other cargo transport units (CTUs). During a meeting held at the IMO during London International Shipping Week, the group asked delegates of IMO member states for the backing of their governments to communicate the content, to encourage and oversee the use of the IMO/ILO/UNECE[1] Code of Practice for Packing of Cargo Transport Units (CTU Code) within their jurisdictions.

The four industry bodies, Global Shippers Forum (GSF), ICHCA International, TT Club and World Shipping Council (WSC) participated in the experts group that created the comprehensive guidance for safe and secure packing of CTUs and was thereafter adopted by each of the UN agencies during 2014. As such, the key stakeholders in the intermodal supply chain together with the leading freight industry insurer continue to drive forward the implementation of this important work.

Speaking on behalf of shippers, Chris Welsh, the Secretary General of GSF said, “Our coalition epitomises the depth of industry cooperation that exists in ensuring the safety of operatives across the supply chain and the security of cargo; now there is clearly a greater need for action by national governments to support these industry initiatives. In fact it is critical that governments play a role in effecting the more widespread use of the Code among those loading CTUs on a daily basis.”

TT Club’s Risk Management Director, Peregrine Storrs-Fox pointed out the importance of this awareness and enforcement of the Code, “The maritime freight container, in particular, has diversified the responsibility for safe cargo packing away from the historic concentration of expertise at quaysides and docks. Those packing containers at factories, warehouses and depots situated remotely from the port, or indeed from a railhead or other intermodal hub, are generally unaware of the consequences of a poorly packed steel coil and unsecured drum of hazardous chemicals. As a specialist insurer, TT Club continually sees the sad repercussions of truck rollovers and train derailments, cargo spillages, and explosions and fires at ports or on-board ships.”

Credible statistics are hard to come by, partly due to a lack of engagement by state authorities with IMO’s container inspection standard, but ICHCA International’s Richard Brough made an attempt to estimate the extent of the problem based on UNCTAD trade statistics and the results of the relatively few inspections made during the last fifteen years. “Extrapolating from the UNCTAD figure of 180 million TEUs traded, via the 24% of inspected containers carrying dangerous goods (DG) that were found to be badly packed and bearing in mind that cargoes declared as DG make up only around 10% of all containers, we can estimate that each year some 25.9 million containers are potentially poorly packed and pose a danger at some point on their journey along the supply chain.”

Lars Kjaer, Senior Vice President of WSC drew attention to the vital matter of container pest contamination explaining, “Carriers should ensure that empty containers to be delivered for packing are clean and pest free. However, the International Plant Protection Convention (IPPC) has confirmed that pest contamination of containers and their cargoes is most likely to occur at the point of packing. Shippers and packers need to take appropriate steps to prevent pest contamination of containers while in their custody.”

All four organisations are in no doubt about the extent of the task in hand to extend the best practices enshrined in the CTU Code to the majority of those involved in packing containers around the world. A lack of training, language problems, the sheer density of the information contained in the Code, dramatic variations in the types of cargo now being carried in containers and the complexities of international supply chains are among the myriad of challenges facing the industry in achieving widespread adoption. However, this coalition of industry bodies is determined to advance towards their goal and emphasise once more the crucial role that IMO member states should play in supporting their efforts.

For reference the full CTU Code can be found here http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Pages/CTU-Code.aspx

ENDS

Notes for Editors

The Global Shippers’ Forum (GSF) is the world’s leading global trade association representing shippers engaged in international trade moving goods by all modes of transport. Chris Welsh MBE chaired the Expert Working Group charged with drafting IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). More information is available at: www.globalshippersforum.com

The International Cargo Handling Coordination Association (ICHCA) is an independent, not-for-profit organization dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA actively participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ichca.com

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated in the Expert Working Group and debates leading to the approval of the CTU Code. More information is available at: www.ttclub.com

The World Shipping Council (WSC) represents the global liner shipping industry on regulatory, environmental, safety and security policy issues. The WSC has observer status at the IMO and was actively involved in the development of the CTU Code. More information is available at: www.worldshipping.org

##

[1] International Maritime Organization, International Labor Organization and United Nations Economic Commission for Europe

Two leading container industry bodies, the Container Owners Association (COA) and the Cargo Incident Notification System (CINS), supported by the leading freight transport insurer, TT Club have published an in-depth guide for those seeking to use refrigerated containers in non-operating mode to carry commodities not requiring temperature control.  The Guidelines give extensive advice on the risks involved and correct packing to protect both container and cargo.

London 12 September 2017

The use of ‘non-operating reefers’ (NOR) is common practice in the industry and has significant impact in reducing empty re-positioning costs for container operators.  However both COA and CINS are keen that all involved, including shippers, forwarders, packers and terminals are fully appraised of best practices in the use of such containers.  TT Club, in maintaining its commitment to minimising damage and loss in freight transport, is pleased to have contributed to this valuable guidance.

This new document entitled “Guidelines for the Carriage of Cargoes in Non-Operating Reefer Containers” outlines in detail the caution that must be employed in using NORs considering the difference in design between a reefer container and a regular General Purpose (GP) unit, noting specifically the internal dimensions, vulnerable insulation, weight distribution and expensive refrigeration machinery. Types of NOR cargo need to be approved and recommendations are given as to which should not be carried either because of risk of contamination or the inability to secure them sufficiently.

“Repositioning expensive reefer units after they have been emptied at destination is a constant challenge for container operators”, explains Uffe Ernst-Frederiksen – Maersk Line’s Head of Cargo Management, as well as Chairman of CINS and Deputy Chairman of the COA. “There is often insufficient temperature controlled cargo for the return leg of a reefer’s journey and therefore the unit has to be repositioned empty. On busy trade lanes, empty reefers are competing for slot space with revenue earning dry cargo, so the NOR solution is attractive.  However, care must be taken when loading NOR cargo, to avoid disproportionate costs being incurred in cargo loss and container damage.”

“These guidelines will be extremely useful in helping operators, shippers and those responsible for packing NORs make decisions that will project both cargo and reefer unit from such loss and damage,” comments TT Club’s Risk Management Director, Peregrine Storrs-Fox.  “TT Club is therefore very pleased to have worked with COA and CINS in producing this valuable document.”

A PDF of the Guidelines is now available to download – click here

ENDS

Notes for Editors:

The Container Owners Association (COA) is an international organisation representing the common interests of all owners of freight containers.  Full members comprise container shipping lines and container leasing companies, while associate members include suppliers of container equipment and services.

The principle aims of the COA are as follows:

• Development of Industry Standards – with the aim of promoting industry efficiency
• Dissemination of information through Conferences, Training and Education
• Lobbying relevant regulatory authorities and co-operation with industry groups
• Promotion of Safe Operation of Containers
• Promoting Environmental Awareness

www.containerownersassociation.org

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice. TT Club is managed by Thomas Miller.

www.ttclub.com

Cargo Incident Notification System (CINS) is a shipping line initiative, launched in September 2011, to increase safety in the supply chain, reduce the number of cargo incidents on-board ships and on land, and highlight the risks caused by certain cargoes and/or packing failures. Membership of CINS comprises over 65 percent of the world’s container slot capacity. The CINS database permits analysis of operational information on cargo and container incidents which lead to injury or loss of life, loss or serious damage of assets, or environmental concerns. The database includes root cause analysis.

CINS publishes Operational Guidelines on the carriage of certain cargoes in containers.

www.cinsnet.com