TT Club

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

London, 11^th January 2024

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

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

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

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

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

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

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

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

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1200 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

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

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

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

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

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

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

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

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

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1200 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

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

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

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

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

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

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1200 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more.

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

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

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

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

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

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

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

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1200 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

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

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

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

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

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

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

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

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

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

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

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

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

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1200 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

TT Club, leading international freight transport and cargo handling insurer, applauds equipment sharing agreements as efficient use of resources but flags up potential liability issues if appropriate insurance cover is not in place.  Guidance is outlined in the first of TT’s new ‘Risk Bytes’ series of advice documents.

24^th October 2023

The benefits of good neighbour agreements are well recognised and utilised by cargo handling operators, and others in the supply chain to successful effect.  Sharing infrequently used equipment gives greater flexibility in operations has significant cost savings.  Usually reciprocal arrangements, they are not always formally outlined in well-defined contracts. 

“In such circumstances the casual nature of the arrangement, though often workable and agreeable to both parties, can lead to potential risks where liability and responsibility in the unfortunate event of an incident or breakdown may not be clear,” says TT’s Mike Yarwood. “It is these circumstances that we are seeking to help operators avoid with our recently published ‘Risk Byte: Good neighbour agreements’.”

This is the first in a series of ‘Risk Bytes’ which TT is providing to its membership and those in the global supply chain.  They are designed to provide a snapshot of the risks associated with day-to-day operating risks that may not be recognised or, if they are, not sufficiently covered by the relevant insurance policies.  ‘Risk Bytes’ are aimed at simplifying complex risk issues by providing easily digestible information and guidance.

As regards good neighbour agreements the primary risk, explains Yarwood,   “Is in the event of the equipment or machine being lost or damaged during the period of the loan leading to financial exposure for the owner.  In addition, this might severely impact business operations and cancel out any benefit gained from the arrangement, and severely damage years of a good working relationship with the neighbour.”

This first topic of ‘Risk Bytes’ outlines provisions that should be made in a formalised written contract, giving clarity on where the risk and liability rests during the operation of any shared asset and gives the opportunity for thorough due diligence to be carried out before the agreement is signed.

Yarwood concludes, “Of course, we recommend checks on financial stability and whether sufficient and appropriate insurance cover is in place.  But we are also offering advice on adequate staff training, health and safety provision and include a readily recognised case study of a typical asset sharing operation.”

A copy of ‘Risk Byte: Good neighbour agreements’ can be downloaded, free of charge 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 97% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

https://www.ttclub.com

Kamel Tlili takes up the role of Regional General Manager Asia-Pacific for international freight and logistics insurer, TT Club based in its Singapore office from 3^rd October. 

Tasked both with maintaining the strong market position the Club enjoys in the region and expanding its reach, particularly in the fast-growing logistics sector, Kamel has the necessary experience to tackle the challenge.  He joins TT after a successful period of six years leading British Marine’s P&I Underwriting Division in Asia at QBE.  During this time, he focused on the strategic development and diversification of the portfolio and was pivotal in the transformation of British Marine’s presence within Asia.

Kamel is well known in the marine mutual community, having previously spent a total of fourteen years at TT’s sister mutual, UK P&I both as an Underwriting Director and Claims Director. He also has sea-going experience at the start of his career after taking a Master’s Degree in Maritime Law at Aix-Marseille University.

In making the announcement Kevin King, TT’s Deputy CEO said, “We are excited to have Kamel join TT with his wealth of marine insurance experience and extensive contacts in the Asia Pacific markets. Kamel is leading a highly experienced, first-class team of underwriting and claims executives and will look to build upon the success the region has had in building and servicing its membership.”

“TT Club has a formidable reputation among industry leaders as well as specialist brokers for its in-depth knowledge of the prevalent risks, and an unequalled claims service,” commented Kamel.  “I welcome the opportunity presented by my new role at the Club to bring both of those attributes, as well an industry-leading loss prevention resource to a wider market within the Asia-Pacific region.”

UK P&I Club, also managed by Thomas Miller, has recently announced the appointment of Peter Jones to its newly created role of Underwriting Director in the region.  The new appointments combine to strengthen Thomas Miller’s resources in Singapore and underline its commitment to the Asia-Pacific region. 

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 97% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

https://www.ttclub.com

Safetytech Accelerator is pleased to confirm that major UK maritime insurers, the UK P&I Club and TT Club have signed up for its Cargo Fire & Loss Innovation Initiative (CFLII).

The Initiative, launched in February 2023, is a  multi-year collaborative technology acceleration programme focused on reducing cargo fires and loss in maritime and its impact. It is already supported by Anchor Partners COSCO Shipping Lines, Evergreen Line, HMM, Lloyd’s Register, Maersk, the Offen Group, ONE and Seaspan, which represent around 50% of the total liner shipping market.

The programme will help expedite the uptake of technology and best practice by identifying specific opportunities where technology can make a difference, shaping joint requirements, identifying technology solutions, undertaking trials and developing best practices and recommendations. It has already started working on solution for early fire detection in cargo hold.

The UK P&I Club, one of the world’s leading mutual insurers of third-party liabilities for ocean-going merchant ships, and TT Club, the market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry, are the first insurers to join the Initiative, joining the significant proportion of the world’s container carriers already involved in the open-innovation initiative.

Stuart Edmonston, Loss Prevention Director at UK P&I Club, said, “We are really excited to join this initiative, to roll our sleeves up and get involved with the other Anchor Partners. Fires on board container ships keep happening, with depressing regularity, often resulting in tragic loss of life and catastrophic damage to ship and cargo. A large proportion of these fires are completely preventable, and we find that losses could have been mitigated by better practices. This is an industry-wide problem that requires collaboration. The only way to improve safety is to work together, share ideas, and identify and utilise modern technological solutions.”

Mike Yarwood, Managing Director of Loss Prevention at TT Club commented on his organisation’s commitment to safety, and prevention of cargo-initiated fires in particular: “As an insurer of many elements of the container supply chain, we have long campaigned for improved certainty for classification, declaration and packing of cargo in containers.  We look forward to engaging with fellow partners to improve safety and certainty of outcome in the supply chain.”

Global Containerships Segment Director at Lloyd’s Register (LR), and Chair of the Maritime Cargo Fire and Loss Initiative, Nick Gross said, “I’m very excited to have UK P&I and TT Club join CFLII, now bringing in the insurer’s perspective to our work with the other anchor partners, to combat the risk of cargo fires and to make container shipping safer and more sustainable.”

Rich McLoughlin, CFLII Programme Director at Safetytech Accelerator, had this to say about the announcement, “We’re delighted to have both UK P&I Club and TT Club join this important initiative. We believe cross-industry collaboration around innovation is an essential component to reduce the incidence of large cargo fires and enhance the safety of seafarers and vessels. Together with the Anchor Partners we are already uncovering technologies and applications that have the potential to make significant progress to that goal.”

The Initiative has a broad technology scope, encompassing three significant topics of concern. The first relates to onboard cargo control, including whether cargo has been properly loaded, secured and monitored during transit. The second area covers onboard fire, the ability to rapidly detect fires and prevent propagation through effective onboard response, particularly on cargo vessels such as container ships and car-carriers. The third topic of concern relates to the challenges created by the increasing scale of vessels.

Shipping companies and other maritime stakeholders who would like to know more about the Initiative, together with technology companies interested in addressing the topics of concern, are invited to contact us for further information, using the form below.

Read the launch press release here and read more about the initiative here. [https://safetytechaccelerator.org/cargo-fire-and-loss-innovation-initiative/ ]

ENDS

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 250 million tonnes of owned and chartered shipping through its international offices and claims network. ‘A – /Stable’ rated by Standard & Poor’s, 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 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 mission is to make the global transport and logistics industry safer, more secure and more sustainable.  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 97% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

About Safetytech Accelerator

Safetytech Accelerator is the first fully dedicated technology accelerator focused on advancing innovation in safety critical industries, with a mission to make the world safer and more sustainable through wider adoption of technology.

About Lloyd’s Register

Trusted maritime advisors, partnering with clients to drive performance across the ocean economy.

Lloyd’s Register (LR) is a global professional services group specialising in marine engineering and technology. We were created more than 260 years ago as the world’s first marine classification society, to improve and set standards for the safety of ships.

Today, we are a leading provider of classification and compliance services to the marine and offshore industries, helping our clients design, construct and operate their assets to accepted levels of safety and environmental compliance.

TT Club, the specialist international freight insurance provider is seeking greater emphasis on the critical dangers of toxic gas emissions associated with lithium-ion battery fires.  The failure of such batteries has the potential to occur with no prior warning, or with such speed that there is typically no time to react to any warning signs.

London, 7^th September 2023

Devastating consequences of rapidly spreading, and often challenging to extinguish fires involving the batteries particularly in electric vehicles (EV) on board ships, and other parts of the supply chain have been well-documented in recent months.  There is however less awareness of the highly toxic combustion products that are released and their respective impact to the health and wellbeing of those exposed to the gases.

Based on the evidence of past fires the time between the initiation of a failed battery igniting to a discharge of toxic vapour can be measured in seconds rather than minutes. This is due to a process known as thermal runaway.  The rapid sequence of events typically occurs where an internal electrical short within one of the battery cells generates heat; this breaks down the internal structure of the battery, increasing the rate of the reaction in an ever-increasing cycle.  There is often a dramatic release of energy in the form of heat and a significant emission of toxic gases.

Neil Dalus of TT endeavours to paint a picture of the dangers.  “During a lithium battery thermal runaway event, research has shown that significant amounts of vapour can be produced per kWh (kilowatt hour).  In many common supply chain scenarios, including ships’ holds and warehouses, the reality is that such vapour clouds are likely to accumulate. Even when the clouds are able to disperse, the potential toxic effects may occur at lower concentrations.”

Drivers, stevedores, ships’ crews and first responders attempting to control the blazes encounter what might appear to be smoke but is in fact a mix of toxic gases, generated quickly and in large volumes. These gases once in the atmosphere behave differently to smoke, often pooling at floor level due to their density.  “Traditionally where fires and smoke are concerned one would stay low to avoid inhalation, doing so where lithium battery fires are concerned is likely to prove problematic,” observes Dalus.

The toxicity of gases given off from any given lithium-ion battery differ from that of a typical fire and can themselves vary but all remain either poisonous or combustible, or both.  They can feature high percentages of hydrogen, and compounds of hydrogen, including hydrogen fluoride, hydrogen chloride and hydrogen cyanide, as well as carbon monoxide, sulphur dioxide and methane among other dangerous chemicals.

In terms of hazards to the wellbeing of those in the vicinity of such an incident, one particularly problematic component is hydrogen fluoride (HF). Although HF is lighter than air and would disperse when released, a cloud of vapor and aerosol that is heavier than air may be formed (EPA 1993). On exposure to skin or by inhaling, HF can result in skin burns and lung damage that can take time (hours to weeks) to develop following exposure. HF will be quickly absorbed by the body via skin and lungs depleting vital calcium and magnesium levels in tissues, which can result in severe and possibly fatal systemic effects. The hydrogen content of the released gases can give rise to vapour cloud explosion risks which have the potential to cause significant damage.

TT advocates a range of measures to mitigate the risks. A prudent starting point would be to perform a fire risk assessment, considering the specific hazards presented by lithium-ion batteries. Risk mitigation considerations thereafter could include providing operatives with certified full-face self-contained breathing apparatus, chemical-resistant boots among other protective equipment, as well as drench showers for post-response decontamination. Strategic positioning of fire-fighting equipment should also be a key consideration. 

Early detection of such an incident can also be pivotal in managing the response, camera and thermal imaging could enable an expedient response. Such equipment might have already become commonplace for some modes, however conducting a thorough risk assessment for example when cargo is stored in warehouses would be prudent. As Dalus comments however, “Given the hazardous nature of this vapour, if any of these measures are not in place then the best course of action is to evacuate the area and leave the incident response to the emergency services, ensuring that the known risks are appropriately communicated.”

Consideration should also be given to the location of any incident that might include clean up and entry. The gases produced potentially leave toxic deposits on all surfaces and in the atmosphere. Therefore, once the incident is under control, potential hazards remain.

A full report on the dangers of emissions from lithium-ion fires, as well as detailed safety advice is available from TT’s websiteHERE

TT Club will be hosting a webinar on the subject of ‘Lithium-ion batteries in the logistics supply chain’ on 11^th October.  To register to attend please click  Registration (gotowebinar.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 97% of its Members, with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com