TT Club

7 February, 2017

European Shipping Week will take place in Brussels from 27 February to 2 March[1] and there delegates will focus on the correct packing of Cargo Transport Units (CTUs) and the safety issues that result from poor work practices. The Secretary-General of the International Maritime Organization (IMO), Kitack Lim, and Magda Kopczynska from the European Commission’s DG MOVE, which is the directorate responsible for freight transport safety within the EU, will join industry leaders to speak at a seminar on Monday 27 February[2]. The seminar has been arranged by the same alliance of industry organisations that successfully brought compliance with the verified container gross mass requirements to the forefront: shipper association the Global Shippers Forum (GSF); the cargo handling group ICHCA; international freight insurer TT Club and liner shipping organisation World Shipping Council (WSC).

An analysis of TT Club’s insurance claims records suggests that 65% of damages to cargo result from poorly packed, blocked or secured cargo in CTUs, particularly freight containers. “Yet this points to only a fraction of the extent of a significant safety problem surrounding poor packing” states TT Club’s Risk Management Director, Peregrine Storrs-Fox. “TT Club, along with our fellow industry representatives are concerned that preventable incidents, both on land (road and rail) and at sea, arise from badly packed CTUs. The safety of workers, particularly those unloading units at destination, is also at considerable risk. Safe industry packing and securing guidance must be disseminated and followed.”

The seminar, entitled, ‘Safety in the Intermodal Supply Chain: Promoting IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code)’ will endeavour to raise the profile of the issues. “It is now over two years since the three UN bodies that sponsored the CTU Code approved its content,” comments ICHCA’s Captain Richard Brough OBE. “While a non-mandatory Code of Practice, it is now thoroughly referenced in the IMDG Code. The entire freight industry must recognise that this detailed guidance may now be seen as representing industry best practice.”

The importance of awareness across the entire supply chain of these dangers is a point emphasised by Chris Welsh MBE, Secretary General of GSF, “The responsibility of all those working in the supply chain, shippers, packers, forwarders, warehouse operators and transport providers of all modes and in all countries is clearly set out in the Code. This responsibility for the safety of cargo loads and those handling them does not cease when the doors of the trailer or container are closed”, he emphasises.

The quartet of seminar sponsors is completed by the participation of the ocean carriers’ organisation, WSC. Its Senior Vice President, Lars Kjaer is keen to highlight the senior level of speakers that have committed to attend the Seminar, “The IMO’s Secretary-General, Kitack Lim has demonstrated his commitment to improving safety in global transport and we are delighted that he is adding weight to our efforts to promote the CTU Code and associated initiatives. In addition to industry leaders, we will also have the key involvement of DG MOVE, whose role in encouraging the Member States to promote the Code and a safety culture and best practices will be important for enhancing safety in the supply chain,” he concludes.

ENDS

[1] https://www.europeanshippingweek.com

[2] https://www.europeanshippingweek.com/event/wsc-safety-in-the-intermodal-supply-chain-promoting-the-imoilounece-code-of-practice-for-the-safe-packing-of-cargo-transport

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: http://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.

At the British International Freight Association (BIFA) Annual Awards Lunch in London on 19^th January, the global freight insurance specialist, TT Club presented the European Logistics Award to European freight forwarder Delamode Group.

The Award attracted a wide-range of entries, which the panel of judges praised for their innovation and technical prowess. This year’s winner, Delamode Group is a multi-service global forwarder with strategically located offices throughout Europe. Delamode provides freight forwarding services and supply chain management solutions to a variety of industry verticals, in particular fashion logistics.

Mike Yarwood, TT Club’s Senior Loss Prevention Executive, in presenting the Award said, “TT Club is once more delighted to sponsor this Award and appreciates the role BIFA plays in encouraging best practice in the international freight and logistics industry.  The judges were particularly impressed by the way Delamode Group had identified a new business opportunity and had successfully developed an innovative solution thus improving services along certain trade lanes. The result is that Delamode Group’s customers benefit from much faster and more cost effective delivery options and the company has an opportunity to use this business model to serve further regions in the future.

TT Club is certainly seeing a greater degree of innovation in the services being provided by its customers.  Many companies that in the past offered traditional freight forwarding now take on a much higher degree of supply chain risk and become exposed to greater liability by providing increasingly complex and sophisticated services. The trend is, however, seen as positive.  The increased complexity of service offerings and the ingenuity of operators in designing alternative supply chain solutions strongly demonstrate the logisticians’ value and provide opportunities for new entrants as much as established logistics companies.

ENDS

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 the Awards

The BIFA Freight Services Awards have been running for more than 25 years, and the ceremony has been held at the Brewery in Chiswell Street, London, since their inception in 1989. A carefully selected judging panel, consisting of sponsors and independent industry specialists, ultimately determines the winners.

About BIFA

The British International Freight Association (BIFA) represents UK companies engaged in the international movement of freight by all modes of transport. A not-for-profit organisation, BIFA is funded by subscription and run by its members for members. It operates with a full-time Secretariat, which administers and manages the Association’s affairs. BIFA provides an effective and proactive organisation dedicated to improving standards of professionalism within the logistics and supply chain industry.

Efforts to secure accurate container gross mass data continue following the SOLAS revision mandating verified gross mass for every packed unit having taken effect, but international freight transport insurer, TT Club is now calling for a concerted industry campaign to ensure good practice in all aspects of cargo care.

8^th December, 2016

TT Club believes that an insistence on precise gross mass is just the first step in achieving what it is calling ‘Cargo Integrity’ not just within container trades but throughout the entire supply chain. Speaking at the recent industry conference, Intermodal Europe in Rotterdam, TT Club’s Risk Management Director, Peregrine Storrs-Fox emphasised the importance of the concept to safety both at sea and onshore, “By increasing the visibility of Cargo Integrity we hope to draw attention to other vital aspects of secure and safe cargo transport. This will include the proper packing of cargo within a unit; transparent data regarding contents (particularly classification of regulated goods) and the appropriate safe handling of such commodities; the highest standards of container construction and maintenance and the most advanced methods of stowing and lashing containers onboard ships”, he explained.

These varied aspects of Cargo Integrity are all important in not only safe-guarding the cargo itself but also the well-being of those handling the goods at warehouses, during inland transport, at ports and of course at sea. TT Club is committed to reducing the incidence of unstable loads causing traffic accidents and injuries when unpacking, dangerous goods causing fires both at warehouse facilities and at sea and poorly handled cargoes causing serious, sometimes fatal incidents at ports and terminals.

“In the immediate future we are anxious to promote awareness of, and adherence to the CTU Code. This is the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units, a publication sponsored by the three relevant UN agencies*”, stated Storrs-Fox. “The CTU Code legitimises the chain of responsibility for all stakeholders, providing a comprehensive framework to ensure cargo can complete the entire journey safely and successfully. We urge all those engaged in moving goods internationally to follow the Code diligently”.

Over the course of the coming year while stimulating as wide an implementation as possible of the CTU Code, TT Club will also be advising on initiatives to improve the other aspects of safe carriage of international freight through its Cargo Integrity campaign.

* being the International Maritime Organization (IMO), the International Labour Organization (ILO) and the United Nations Economic Commission for Europe (UNECE). http://www.imo.org/en/OurWork/Safety/Cargoes/CargoSecuring/Pages/CTU-Code.aspx

ENDS

Notes to editors

TT Club

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

TT Club is managed by Thomas Miller

www.ttclub.com

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
• Managing general agents

www.thomasmiller.com

TT Club, the international freight and logistics insurer with over 25 years’ experience of the Russian market warns forwarders and logistics operators offering services within the region to consider their liabilities beyond just cargo protection

London & St Petersburg, 1^st December, 2016

TT Club, the London-based specialist insurer with a global network, is reminding transport operators with interests in the Russian market of a five-fold liability risk profile associated with doing business in the region. TT Club’s representative partner in Russia, Panditrans underlined these risks in a presentation given at the TransBaltic industry conference in St Petersburg today.

Speaking at the conference, Panditrans Deputy Director Alexander Petrenko, highlighted that in addition to claims for loss or damage to cargo, operators could be liable for financial losses through errors and omissions, as well as third-party liabilities, and fines and duties imposed by state authorities. Furthermore, there is a range of costs arising from the consequences of any incident involving a container or CTU (cargo transport unit). Aside from this, liability to a contractual party , usually limited by applicable international and local laws and conventions, may be significantly increased depending on the circumstances of the incident, such as whether gross negligence or reckless conduct on the part of an employee or hired subcontractor.

“The level of risk for some types of incident, such as cargo theft and armed hijacking, may be higher in the region, but a lack of knowledge and experience of regulations, the law and judicial procedures are also likely to expose operators to considerable unexpected costs”, explains Paul Knighton, a Senior Underwriter with TT Club. “Operators should never consider cargo cover alone as sufficient. All carriers, truckers and forwarders need to carry out a thorough assessment of common liabilities, both local and international, when providing transport services to Russia and the FSU”.

The TT Club’s warning comes as some signs of a recovery in container trade volumes to the region are being reported. As a consequence of well-documented economic and political difficulties Russian container movements experienced an estimated 25% decline in 2015. However, a more recent recovery in the Russian economy has fuelled increases in container transport during the first half of this year. The Russian Association of Road Carriers reports a six percent year-on-year rise over the six-month period, representing two billion tonnes of freight and container traffic on rail railroads has gone up by 5.6% to 1.5 million TEU in the same period.*

While rates of growth similar to those recorded prior to the global economic downturn are unlikely, the increase in trade will encourage operators, who must once more apprise themselves of the specific liabilities involved in transporting goods in the region. “Our twenty-five year plus experience in the FSU has lead us to conclude that in practical terms the transport operator is liable for almost everything in the event of an incident”, warns Petrenko. “In order to assist the operator in understanding the complexity of the situation, we have analysed our claims history and identified four main factors which commonly impact on risk exposure”.

These four elements are:

• The Human factor – from genuine mistakes, errors and omissions to fraud by own employees or sub-contractors;
• The Professional Factor – poor internal procedures and lack of basic risk management policies;
• The Juridical Factor – imperfection of applicable international and local legislation and disputable court practices;
• The Insurance Factor – low level of insurance ‘culture’ and a shortage of insurance products specifically designed for the needs of transport operators.

TT Club and Panditrans strongly advise transport and logistics service providers operating in Russia and the FSU to carry out thorough risk management reviews to identify their possible liability exposure and to seek insurance cover that will give them assurance that the cost of such liabilities can be adequately met.

*Source: RZD

ENDS

Notes to editors:

Further detail on the factors impacting risk in the region, including specific case study examples of past incidents claims from TT Club/Panditrans archives are available on request from the contacts below.

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

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
• Managing general agents

www.thomasmiller.com

The 2016 Young International Freight Forwarder of the Year (YIFFY) Award was announced at the World Congress in Dublin this week. The winner was Shanon Gould from Australia

7^th October, 2016

Together TT Club and FIATA celebrate the achievements of young freight forwarders working for logistics companies around the globe at the FIATA Annual Congress each year. This year the winner of the award representing the Asia-Pacific region was Shanon Gould from Australia.

Insurance provider to the international freight transport industry, TT Club is proud to have sponsored the award for the last eighteen years and continues to do so. TT Club’s Senior Loss Prevention Executive, Mike Yarwood was on hand to announce the winner and present the award. He emphasised the important achievements made by FIATA and its members to train the future freight forwarding and logistics professionals. Commenting on the outstanding quality of the work presented to the judges this year Yarwood said, “From a bewildering, yet highly professional array of entries the YIFFY Steering Committee selected a shortlist of four regional finalists. These four young professionals were then invited here to the FIATA World Congress to present their dissertations to the judges. Congratulations to all four finalists for their hard work and excellent presentations and especially, of course to our winner Shanon.”

In addition to Shanon the regional finalists were:

Lorraine Zhou, Zimbabwe – Africa/Middle East region

Evgeny Kapustin, Canada – Americas region

Kostiantyn Hapii, Ukraine – European region

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

Among the diverse subjects covered by the dissertations prepared by this year’s entrants are the shipping of cotton bales; the challenges of transporting tyres and turbines and the solution to moving a 40’ tall fire breathing dinosaur robot across continents.

The TT Club sponsored award is presented in recognition of operational excellence in the logistics field and was established by FIATA with the support of TT Club to encourage the development of quality training in the industry and to reward young talent with additional valuable training opportunities and enhanced visibility. The TT Club has been a sponsor of the award since its inception and remains firmly committed to the importance of individual training and development within the global freight forwarding and logistics community, which is regarded by FIATA as a strategic important cooperation.

Speaking on behalf of TT Club, Yarwood said, “We are pleased to be continuing our sponsorship of this unique award, with the finals to be held at the FIATA Congress next October in Kuala Lumpur. Once again, we hope that the competition will prove to be successful in terms of attracting outstanding candidates from across the globe to improve even on the record entry of twenty-seven this year. Despite the high volume, the quality of the dissertations and presentations were of a consistently exceptional standard and it was clear that a lot of research, planning and hard work had gone into their preparation.”

The Advisory Body Vocational Training Chairperson, Mr Thomas Sim, said “I am delighted with the level shown and that this investment has been through the years the best way to to ensure that FIATA of the future professionals is well mounted in our today’s programmes.  The YIFFYA has an in-built gender balance nature which comes naturally as networking does in Dublin”

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

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

Principal activities include:

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

www.thomasmiller.com

About FIATA

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

The three-month settling-in period suggested by the IMO to its Member States in which competent authorities were urged to adopt a ‘practical and pragmatic’ approach to the enforcement of the SOLAS revision stipulating all packed containers have a verified gross mass (VGM) before being stowed aboard a ship comes to an end on 1^st October.

29^th September, 2016

Long-time champion of the cause of safer container transport and a leading insurer of the international freight industry, TT Club believes that, although reported levels of compliance since the introduction of VGM on 1^st July have been encouraging, much still needs to be done to achieve accurate VGM certification and universal enforcement of the rules.

A recent declaration by the liner shipping association, the World Shipping Council (WSC), together with feedback from various container terminals, indicates that the current compliance rate is as high as 95%. The WSC told an IMO sub-committee meeting in early September that the requirement for shippers to produce a VGM for each packed container tendered to its member lines for shipment had been met “without any appreciable disruptions to international containerised supply chains”. In addition, it was noted that the compliance rate rose steadily from 1^st July onwards, with the WSC confident that this rise will continue.

Speaking after accepting the Lloyd’s List Maritime Insurance Award for TT Club’s work on VGM, Risk Management Director, Peregrine Storrs-Fox commented, “This high degree of awareness of VGM requirements and the outward signs of compliance are indeed encouraging. However it remains to be seen whether the declared VGMs are accurate, representing the result of an actual weighing process, regardless which of the two permissible methods is adopted”, he said.

It is known that certain terminals and carriers have been engaging with shippers over the three-months since July where inaccuracies are apparent. Anecdotal evidence suggests that shippers are, in the main, simply adding the tare mass of the container to the previously declared weight of the cargo to arrive at a VGM. “While it is positive that shippers recognise the difference between bill of lading or customs declaration weights and VGM, it is insufficient just to add the container mass. The industry needs the comfort of authenticated VGMs comparing the actual mass of packed containers obtained by check-weighing in order to have a true picture of compliance,” said Storrs-Fox.

The WSC has also reported that some IT communication challenges have been, and remain significant. Concern has been raised that some terminals have yet to implement the recommended BAPLIE 2.2 EDIFACT message format, which fundamentally restricts their ability to communicate VGMs to carriers. Where this is the case, TT Club urges immediate action between the counterparties to resolve the situation, not least since it will hinder evidence of compliance being provided to the various port state control authorities.

Post the three-month IMO-recommended period of ‘light touch’ enforcement that ends on 1^st October Storrs-Fox emphasised, “There will remain a need for regulators the world over to continue their work in arriving at a uniform standard of enforcement, including consistency in the degree of latitude given to non-compliant shippers. Even now, there would be value in providing national guidance on such matters, where it has yet to be given.”

Industry guidelines issued by TT Club, in partnership with WSC, the cargo handler’s association ICHCA and the Global Shippers Forum (GSF) in the form FAQs, together with further comprehensive information on the VGM regulation, are available here http://www.ttclub.com/loss-prevention/container-weighing

ENDS

Notes to editors

TT Club

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

TT Club is managed by Thomas Miller

www.ttclub.com

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
• Managing general agents

www.thomasmiller.com

29 July 2016

Kate Hollis, Senior Claims Executive at TT Club in Sydney, discusses the risks faced by licenced customs brokers and mitigation steps to take:

“As the international trade regulatory landscape continues to change and the commercial environment becomes increasingly competitive, the balancing act for forwarders and customs brokers between providing services to clients and complying with obligations to customs becomes more complicated.

“Customs brokers assume responsibility for acting correctly between cargo interests and customs. As a result, there is the potential to provide advice to customers or carry out actions that result in the cargo interest suffering financial loss, for which you can be alleged to have been negligent. Closely related to the liability exposure of your customer is the potential for customs to levy fines or penalties through infringement notices.

“Identity fraud is perhaps a less obvious area of risk. In some cases authorities find that brokers have committed an offence where checks on the identity of clients have not been performed and that simple verification of the identity would have alerted the broker to the fraud. Consistent with previous advice, we recommend dealing with your clients directly (rather than through an intermediary) and always perform your own background checks, both in regard to the entity itself as well as the statements being made to customs.

“One recent incident saw rice wine being imported into Australia from Korea, but it was declared as apple cider vinegar. This directly resulted in extra costs for handling the container and for storage costs under the customs bond. Following the inspection, duty was charged at the rate for rice wine – not cider – which the freight forwarder pre-paid on behalf of the importer. It proved impossible to reclaim the duty and additional costs because it transpired that the consignee company no longer existed. There have also been cases of people fabricating an identity in an attempt to import goods without paying the full amount of duty. When the companies were not successful, they simply disappeared.

“Customs brokers also need to be aware of the risk of identity theft. While the variety of scams is broad, TT Club has identified three areas that require particular attention for Customs Brokers:

1. Piggybacking – where an unscrupulous entity uses the identifying details of a legitimate entity on a Cargo Report or Import Declaration, generally with the aim of importing consignments containing illicit substances or smuggled goods.
2. User access security – the nature of access to customs entry systems and digital certificates means that individual login details need to be carefully guarded to avoid misuse and illegal activity.
3. Mandate fraud – where fraudulent diversion of payments occurs. It is primarily the responsibility of the party making a payment to ensure that the bank details are correct.

“Customs Brokers should be aware that their licence might be at risk in a situation where the authorities consider that the broker has intentionally or recklessly facilitated a fraud.  Such situations can also lead to fines being imposed on the Customs Broker as an individual, as well as actions against the forwarding business as a company.

“Mitigation of these risks is possible. In the first instance, it is important to review your own internal processes and systems. Recognise that the risk exposures are business critical and implement robust technology systems and standard operating procedures accordingly, particularly considering access rights and controls.

“Secondly, ensure that well drafted standard trading conditions are properly incorporated into your interactions with all clients. Many national trade associations provide ideal models You should seek legal advice to ensure that contracts are appropriate for your specific business. A third obvious mitigation is to purchase adequate and appropriate insurance. You should discuss this with your broker to ensure that your specific needs are properly covered.”

-End-

Notes to editors

TT Club

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

TT Club is managed by Thomas Miller

www.ttclub.com

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
• Managing general agents

www.thomasmiller.com

Peregrine Storrs-Fox, Risk Management Director at TT Club, discusses the need for increased rigour in the handling of dangerous goods:

“The explosion at Tianjin Port last August should be seen as a spectacular example of why those operating throughout the global supply chains should examine their work practices and risk procedures more thoroughly. With estimated insured losses between US$2.5 and US$3.5 billion, this incident becomes a focal point, drawing attention to underlying vulnerabilities within global supply chain processes. It underlines how cargo in transit, potentially mis-declared, or packed or handled incorrectly, can cause widespread damage and loss of life.

“TT Club’s analysis of its claims history reveals that incident causation is concentrated within just five classifications. Approximately two thirds by both value and number relate to the sum of vehicle accidents, including both road traffic and cargo handling equipment collisions, fire, theft and poor cargo packing. This rolling five year analysis takes in over 7,500 insurance claims, with a total insured claim value of around US$500 million. The total economic costs, which studies have indicated could be many multiples of the insured losses, should in reality account also for hidden losses, such as management time and distraction, and reputational damage. While there is substantial consistency in the relative significance of each major causation year-on-year, it is notable that the costs related to fire are almost invariably disproportionate to the number of incidents.

“Risk assessment surveys at ports over the last 12-18 months have found worryingly little adherence to segregation requirements for dangerous goods. As with the well-established rules for transport by each mode, there is relevant guidance for activity within the port area. At international level, this is provided in the International Maritime Organization’s (IMO) document ‘Recommendations on the Safe Transport of Dangerous Cargoes & related Activities in Port Areas’ (MSC.1/Circ.1216 (2007). National guidance or regulations are likely also to be applicable

“Considering the continuing need in other parts of the supply chain, not only to review regulation and guidance, but also to promote sound corporate culture, it is perhaps time that the existing IMO recommendations are reviewed and some teeth added to bring about greater adoption at national level. Clearly, such matters need to be better integrated globally, in order to improve practice in handling dangerous goods, resulting in the safety of workers and third parties, as well as maintaining the integrity of cargo and transport infrastructure.”

ENDS

Notes to editor

TT Club

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

Thomas Miller

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

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

Principal activities include:

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

[[With the effective date of the container weighing regulation, known as Verified Gross Mass (VGM), at hand, the freight insurance specialist TT Club is accentuating the positive and assures the industry that help remains available.  The mutual insurer, which sees VGM as one of the key safety measures for container operations worldwide, has published a pithy, user-friendly summary for all those involved

London 30 June 2016

Clarity is what TT Club believes is required when tackling the amendment to SOLAS[1], requiring a Verified Gross Mass (VGM) for all packed containers loaded onto ships from 1^st July.  Clarity and collaboration.

The mutual insurer’s latest pithy, ‘Stakeholder digests’, providing guidance to the regulation and how it affects various parties in the container supply chain, from shippers to forwarders and terminals though to carriers, has been made available on its website[2].  The guidance is simple to follow and seeks to build on the everyday cooperation between all stakeholders in the diverse and efficient containerised industry that exists today.

In launching the Stakeholder digests, as part of an extensive micro-site on container weighing, TT Club’s Peregrine Storrs-Fox commented, “VGM is a safety initiative that many in the industry have been seeking. TT Club’s commitment continues, its discussions with industry figures having started years before the initiation of the work at the IMO[3]. In a true spirit of collaboration, representatives of all parties involved in the container trades have been consulted during the four years of IMO debate.  The regulation, effective tomorrow, is the result of an industry working together to improve safety, efficiency and its own professional practices.”

Reaction from many quarters of the industry has been positive, engaging to resolve the complexity and potential difficulties.  According to the regulation VGM shall be obtained either by weighing the packed container [‘Method 1’] or weighing all constituent parts in the load [‘Method 2’].  A substantial number of container terminals around the world have now announced arrangements to assist shippers with ‘Method 1’.

Shipping lines are posting the tare weights of their containers online to assist with the calculation inherent in ‘Method 2’, a compromise process that was included in the SOLAS amendment as a result of shipper representation.  Furthermore, BIC[4] has announced the launch of its ‘Technical Characteristics Database’[5], intended to provide easy access to tare information. Thus, while harmony will never reign supreme in any industry, the container business has come together well in this case.

On the other hand Government bodies, the competent authorities to which the IMO is looking to consistently enforce the regulation across the globe have been surprisingly reticent.  Despite encouragement from the IMO for governments to communicate fully with industry stakeholders, around 80% of SOLAS signatory States have yet to publish guidance on national implementation. There are, of course, notable exceptions, where national competent authorities have engaged actively with industry and other maritime administrations to ensure common understanding of the processes and interpretation of the regulation.

Consistency, however, across the international governmental spectrum has been lacking, causing much frustration. TT Club highlights the less-than-helpful and confusing messages from some governmental bodies.  It has, therefore, been left to industry partners to step into the breach and provide practical support for implementation of this mandatory international regulation. Working with World Shipping Council, ICHCA and Global Shippers’ Forum, TT Club has twice published ‘Industry FAQs’, however, it is recognised that national governmental authorities and enforcement officers will ultimately be responsible for final interpretation.

Collaboration across the container industry remains key, since it epitomises the ‘global village’. For TT Club, Storrs-Fox concludes, “The broad safety issues that VGM goes part way to addressing should be our chief concern.”

ENDS

[1] International Convention for Safety of Life at Sea, 1974 as amended

[2] www.ttclub.com/loss-prevention/container-weighing/stakeholders-digest

[3] International Maritime Organization

[⁴] Bureau International des Containers et du Transport Intermodal

[5] www.bic-code.org/bic-tcd

News to editors

TT Club

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

Thomas Miller

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

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

Principle activities include:

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

www.thomasmiller.com

27^th June 2016

Today, the World Shipping Council (WSC), the TT Club, the International Cargo Handling Coordination Association (ICHCA), and the Global Shippers’ Forum (GSF) jointly released a second Frequently Asked Questions (FAQ) document designed to support the smooth implementation of the container weighing regulations that take effect globally on 1 July 2016. The amendments to SOLAS (International Convention for the Safety of Life at Sea) require packed shipping containers to have a verified gross mass (VGM) before they can be loaded on a ship for export.

Like the initial joint industry FAQ document, published last December, these new supplementary FAQs are based on actual questions from affected stakeholders regarding proper implementation of the new regulations.  The supplementary FAQs include new questions and answers as well as expanded answers to some of the questions listed in the December FAQs.  As such, these FAQs do not introduce new interpretations or approaches, but seek to provide further assistance in explaining the SOLAS VGM requirements by building on existing guidance material.

Some of the supplementary FAQs explain in more detail how the SOLAS container verified gross mass requirements should be fulfilled in various circumstances as described in questions received from supply chain parties.  Other supplementary FAQs are intended to give additional information regarding the two methods that may be used under the SOLAS VGM requirements to obtain the verified gross mass of a packed container.

Stakeholders are urged to continue to approach any of our collaborating organizations with additional questions that may arise after the enforcement date of the regulation on 1 July. Contact details of subject-matter experts from each of the organizations can be found at the end of the FAQs document.

Container safety is a shared responsibility, and all parties have an interest in improving the safety of ships, their crews and others throughout the containerized supply chain while reducing the risk of damages to cargo.

The FAQs document can be accessed here:

http://www.ttclub.com/loss-prevention/container-weighing/tt-club-briefings/

ABOUT MEMBERS OF THE INDUSTRY COALITION:

The World Shipping Council (WSC) represents the global liner 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 SOLAS container gross mass verification requirements. More information is available at: www.worldshipping.org.

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. The TT Club participated throughout the IMO consultation process leading to the amendment of SOLAS and the related implementation guidelines. More information is available at: www.ttclub.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 debates leading to these SOLAS amendments. More information is available at:  http://ichca.com

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. GSF was actively involved in the debates at the IMO leading to these SOLAS amendments. More information is available at: www.globalshippersforum.com