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TT Club

Industry bodies unite in producing Guidelines for safe transport of Lithium-ion batteries in containers

First in a series of in-depth advisory publications aimed at minimising the risks of transporting lithium-ion batteries and cells launched amid heightened concern over container fires

London, 28th March 2023

The Lithium-ion Batteries in Containers Guidelines seek to prevent the increasing risks that the transport of lithium-ion batteries by sea creates, providing suggestions for identifying such risks and thereby helping to ensure a safer supply chain in the future.  Together with its partners, the Cargo Incident Notification System Network (CINS) has compiled a comprehensive publication covering the properties of these batteries and their potential to explode, initiate fires and emit toxic gases.

Extensive measures to safely transport what is an exponentially increasing volume of lithium-ion batteries, in their various states or charge and when also contained in electronic devices are fully examined including, classification and regulation, container packing, landside storage, stowage onboard ships, incident detection and fire suppression, and loss prevention and risk mitigation.

“We strongly urge all stakeholders in the production, supply, transport, handling and sale of lithium-ion batteries whether as individual components or integrated into an electronic device, vehicle or other product to recognise their responsibilities in maximising safety when in transit,” comments Dirk Van de Velde, who is Deputy Chair of CINS and a board member of the association of cargo handlers, ICHCA. “Our Guidelines will create greater awareness of the possibilities of the damaging and life-threatening incidents, which have already occurred, and instil more urgent motivation to act before more catastrophic disasters result.”

Intended as the first of an on-going series of publications to be updated as circumstances require this first, Lithium-ion Batteries in Containers Guidelines (101.A) provides a general overview, and will be followed by three further documents – regulatory compliance check-lists, risk assessment and emergency response, and training and educational awareness. Stakeholders in the supply chain are encouraged to implement the advice according to their specific operations and requirements but to always keep safety of life as their primary consideration.

“As our experience of transporting lithium-ion batteries widens and the technology surrounding their chemical composition, production and application rapidly evolves, risk controls and loss prevention measures need to keep pace.  The work encapsulated in these Guidelines will, of necessity, continue and be undertaken in collaboration with all relevant stakeholders to increase our knowledge and understanding of the risks posed by carriage of lithium – ion batteries in containers by sea.  This publication follows on from a very successful one day Conference held on 15th March by the IG P&I Clubs, CINS, TT Club to bring all parties together to discuss such risks and to share knowledge and experience of carriage across the logistics supply chain” underlines Mark Smith, Loss Prevention Executive NorthStandard, International Group of P&I Clubs’ representative on the CINS LiB WG.

The document can be reviewed in full HERE

Peregrine Storrs-Fox, Risk Management Director at freight transport insurer TT Club concludes, “As the pressure on all forms of economic activity for decarbonisation increases, the use of these batteries will inevitably escalate at rates we have previously not experienced.  Air transport has been heavily restricted already and it is clear that surface modes will be called upon to transport these goods.  As an adaptable unit, the container will remain a focal point for safe transport, including for EVs alongside other vehicle carriers.  The intermodal nature of containers means more actors other than shipping lines, be they manufacturers, packers, forwarders, logistics operators, warehouses and cargo handlers must all be cognisant of the safety issues we are addressing and play their part in ensuring the risks are properly managed.”

About CINS — Cargo Incident Notification System

CINS is a shipping line initiative, launched in September 2011, to improve 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 80 percent of the world’s container slot capacity, together with the Members of the International Group of P&I Clubs.

CINS provides analysis of operational information on cargo and container incidents which lead to injury or loss of life, loss or serious damage of assets, environmental concerns. Data relating to any cargo incident on-board a ship is uploaded to the CINS database. The data includes information on cargo type, nature, packaging, weight; journey (load and discharge ports); type of incident and root cause.  The Technical Advisory Committee is a CINS committee that includes Members of CINS and leading professional experts in relevant fields.

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.


Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

www.ichca.com

About the International Group 

The 12 P&I Clubs which comprise the International Group (the “Group”) between them provide marine liability cover (protection and indemnity) for approximately 90% of the world’s ocean-going tonnage.

Through the unique Group structure, the member Clubs, whilst individually competitive, share between them their large loss exposures, and also share their respective knowledge and expertise on matters relating to shipowners liabilities and the insurance and reinsurance of such liabilities.

Each Group Club is an independent, not-for-profit mutual insurance association, providing cover for its shipowner and charterer members against third party liabilities arising out of the use and operation of ships. Each Club is owned by its shipowner and charterer members, and its operations and activities are overseen by a board of directors, or committee, elected from the membership. The day-to-day operations of the Clubs are handled by professional managers, either “in-house” or external, who are appointed by and report to their Club board/committee.

The Clubs cover a wide range of liabilities, including loss of life and personal injury to crew, passengers and others on board, cargo loss and damage, pollution by oil and other hazardous substances, wreck removal, collision and damage to property. The Clubs also provide a wide range of services to their members including claims handling, advice on legal issues and loss prevention, and they regularly play a leading role in coordinating the response to, and management of, maritime casualties.

https://www.igpandi.org/

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

C-level promotions at TT Club reflect planned progression for senior executives

International freight and logistics insurer TT Club has announced two new appointments to senior positions as part of its planned succession programme. Kevin King has been promoted to Deputy Chief Executive Officer and Mark Argentieri to Chief Operating Officer (COO) in place of King. Both King and Argentieri have been working closely with TT’s CEO, Charles Fenton, in recent years ensuring a smooth handover of responsibilities, as Fenton positions the Club in anticipation of his stepping down from the CEO role at the end of 2023.

Charles Fenton, Chief Executive Officer

Beyond then, Fenton will remain close to the business, having assumed the role of Chairman of Thomas Miller Holdings (TT’s management company) in 2021.  He will continue to support the Manager’s relationship with the TT Club Board and the promotion of the Club internationally.

Kevin King, Deputy Chief Executive Officer

King is a twenty-six-year veteran of Thomas Miller, having held positions in a number of its managed businesses in the United States before moving to London in 2015 to lead TT’s EMEA region and more latterly serve as its COO.

Mark Argentieri, Chief Operating Officer

Argentieri has led the TT team in the EMEA region for the last three years having previously gained experience with both TT and the London Market in a range of marine classes of insurance including port and terminal, forwarder and logistics operator cover. His EMEA leadership role included responsibility for the growth of the business and its service delivery.  Argentieri’s management skills have reinforced TT’s reputation for delivering a superior service for Members across the underwriting, claims and loss prevention functions, and he continues to look for new ways the Club can add value to the membership.

Together these two senior executives will help sustain TT’s tradition of specialised expertise in the global freight transport arena while advancing the Club’s position on ESG issues; carefully adopting the benefits of data mining and AI technology; maintaining industry-leading loss prevention activity, and maximising Member retention and growth.

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

Award launched to recognise talent in supply chain security

Specialist international freight transport insurer TT Club is teaming up with the Transported Asset Protection Association’s (TAPA) Europe, Middle East & Africa (EMEA) region to encourage the next generation of supply chain security professionals to excel. Entries for the first ‘Young Supply Chain Resilience Professional of the Year’ award are now opened until 28 April 2023.

Both TT and TAPA EMEA are dedicated to bringing insight into the complex theft trends that exist within international supply chains.  With the aim of increasing awareness of the challenges in combatting such crime, the organisations also promote where possible risk mitigation guidelines and activities.  To these ends they are launching an annual award programme celebrating the successes of young supply chain security professionals and the next generation of leaders in supply chain resilience.

Explaining the motives behind the award, Mike Yarwood TT’s Managing Director, Loss Prevention said, “We wish to identify, inspire and reward young talent in the industry, encouraging them to continue to innovate, communicate with their peers and strive for greater security throughout the supply chain sector.”

The entry process starts on the 6 March and concludes on the 28 April.  With judging taking place in May, the winner will be invited to receive their award at TAPA EMEA’s RESILIENCE@RISK Conference in Amsterdam on 14 & 15 June 2023.

Each award entrant is being asked to contribute up to a 1,500 word submission based on a supply chain security related project in which they have been involved, with particular attention to the complexity of the issue, the originality and innovative nature of the solution and successes achieved. The judges, comprised of the TAPA EMEA and TT leadership will develop an objective scoring matrix in order to determine the finalists and eventual award winner.

Thorsten Neumann, President & CEO of TAPA EMEA emphasises the possible multiple benefits resulting from the awards programme as a whole, “In addition to the encouragement of young talent in our industry, we have aspirations of identifying good practice and innovative supply chain security solutions that we know proliferate internationally across the sector.  Our award and the attention it will hopefully attract will have the effect of promoting such activities, sharing them on an industry-wide basis for the benefit of all.”

The application form is available to download from the TAPA EMEA website LINK

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

About TAPA EMEA

TAPA EMEA was formed in 2000 to tackle the multi-billion euro problem of cargo thefts from supply chains. Today, it boasts over 900 member companies in the Europe, Middle East & Africa (EMEA) region, including many of the world’s biggest manufacturers and logistics service providers as well as leading SME freight forwarding and transport operators, insurers, law enforcement agencies, security service providers, and other stakeholders.

TAPA EMEA is working to minimise cargo losses and increase supply chain resilience by helping its member companies top understand and manage risks. TAPA EMEA achieves this through the development and application of its global supply chain Security Standards, collating and sharing of cargo crime incident intelligence, training, networking and through its support of, and collaboration with law enforcement agencies, governmental and regulatory bodies.  For more information go to www.tapaemea.org

Safety Awards Digest – A Celebration of Widespread Innovation

Held for the fifth time, the Innovation in Safety Award attracted entrants from thirteen countries and featured a wide variety  of functionality across the cargo handling industry, from digitalisation processes, learning and predictive data application as well as safer physical operations and equipment. The winners were announced last week amidst much fanfare but the application and relevance of all the award entrants deserve to be celebrated.

The 2022 Safety Award Digest is designed not just to acknowledge the dedication to safety that the twenty organisations display in putting forward their innovative ideas but also to bring focus to these applications that will have relevance to operators in all parts of the industry and across the globe.

“It is vital that the phenomenal work being carried out by the organisations that enter these Awards be made available to others who can benefit from the improved safety measures that have been described in detail,” says Richard Steele, ICHCA’s CEO. “We have therefore, once more, produced this Innovation in Safety Awards Digest, which encapsulates in one document the products and procedures that have achieved a demonstrable improvement in cargo handling and transport safety.” A copy of the 2022 Safety Digest in PDF form is available for download HERE

In partnership, ICHCA and TT Club have made a fundamental commitment to risk reduction throughout the freight supply chain. This is an environment, in which whenever something challenges or undermines safety, security or sustainability, a key tool in preventing incidents or deficiencies recurring is innovation.

Those submitting the 2022 Award entries demonstrated the passion to enhance safety and dynamic action that exists. The range of innovations displayed the diversity and complexity of this industry, spanning entirely physical safety issues looking at machinery or operations but also showed a focus on digital opportunities for process improvement.  Learning tools were also in evidence as was workforce engagement initiatives and those aiming at  environmental protection and monitoring.

“For its part, TT is privileged to work closely with the industry considering its problems are, in equal measure opportunities to mitigate risk further,” comments Peregrine Storrs-Fox, Director of Risk Management,  “Our industry awareness and solution orientation results in broad networking and collaboration, amongst the industry and beyond, frequently ‘joining the dots’ and thinking ‘outside the box’. It is in this context – and core to TT’s mission – that the TT Club Innovation in Safety Awards were conceived, seeking to clarify problem statements, affirm or challenge assumptions, value and nurture concepts, and provide opportunity to network, profiling innovation that works.

In commending the Safety Digest to the entire industry, the partners remind all those involved that any innovation could be transformative for the risk profile and safety enhancement, as much for an individual operation as across the entire industry.

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.

Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

www.ichca.com

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

TT Club Innovation in Safety Award Winners Announced

The winner of the prestigious safety award made possible by the collaboration of ICHCA International (ICHCA) and TT Club for the fifth time was announced as AP Moller Maersk for its APMT Vessel Inspection App.  The winner and fellow short-listed entrants, Exis Technologies and Intermodal Telematics were present at the ceremony to showcase their innovations.

Caption :  Richard Steele, ICHCA, Morten Engelstoft presenting to Nissa Ibrahim of APM Terminals, Peregrine Storrs-Fox, TT Club.

Both ICHCA and TT are delighted that the now well-established industry accolade, with its strenuous process of entering and judging have once more celebrated safety innovation within the cargo handling and transport sector.  There is now a real focus by organisations across the world on constantly searching for better solutions to the challenges of improving safety.

At the first ‘live’ Innovation in Safety Awards ceremony for four years, held in London today, all three finalists gave presentations of their ground-breaking initiatives, which through their variety of application reflected the broad categories represented by the twenty award entrants drawn from thirteen countries, and covering such diverse fields as digitalisation processes, learning and predictive data application as well as safer physical operations and equipment.

The winning innovation was APMT’s Vessel Inspection Mobile App.  “We are delighted with this recognition for the safety app we have developed in-house in collaboration with Maersk,” said Jack Craig, Chief Operations Officer at APM Terminals.  “The app provides a standardised digital platform for terminals to carry out vessel inspections, highlighting potential critical risk. It underpins our continuous focus on safety throughout our operations and is a great example of how we can smartly deploy technology to be even better at this.”

Joining APMT on the short-list and presenting its Hazcheck Detect innovation was Exis Technologies.  Chief Information Officer Mike Durkin said, “Hazcheck Detect can be accepted by competing carriers, offering the same technical solution with similar rules and immediate outcomes for cargo screening. This is critically important to prevent mis-declared and undeclared cargo being accepted or cancelled and re-booked on alternate carriers. We are honoured to be shortlisted for this award among a host of impressive entries.”

Making up the finalist’s podium was Intermodal Telematics BV (IMT) and its innovative Tank Container Temperature Monitoring.  “Safety remains a very hot topic across the tank container transport sector,” said Bernard Heylen, Sales Director at IMT. “With our multiple temperature alerting system we offer a digital answer to the increasing demand to transport dangerous goods safely and monitor them remotely. We continue to work in the interests of improved service quality, and in maintaining social responsibility by preventing dangerous incidents.”

Welcoming delegates (and online participants) to the awards ceremony and its accompanying safety seminar, ICHCA’s CEO Richard Steele underlined the aims of the on-going innovation in safety campaign, of which the awards are a critical part.  “We, of course acknowledge safety innovation – especially at a time of increased operational demand on global cargo handling. However, this is much more than a celebration. Our mission is also about, learning and thought leadership.  Our priority is to share these ideas with a wide audience, improving how we all can commit to continuous improvement in health and safety.  The award highlights direct evidence that our industry is actively innovating and changing.”

Steele went on to recognise the awards sponsor, “If you want evidence of industry commitment, look no further than the TT Club.  Not just sponsors in name but actively rolling up their sleeves and proactively driving an innovation and continuous improvement agenda.”

TT Club has been a driving force behind these awards since their inception, and very much committed to improvement in safety as a whole.  Peregrine Storrs-Fox is TT’s Risk Management Director, “We are delighted that the award has continued to attract substantial interest around the globe and across the industry, again demonstrating a passion to enhance safety and dynamic action to make this reality. We are pleased to report that this passion is shared by such a diverse group of operators and suppliers, with this year also featuring submissions designed for environmental protection and monitoring,” he commented.

The event announcing the winners was enhanced by a seminar which featured two discussion panel sessions on managing personal injury risk and minimising damage in cargo in transit with speakers from DP World, , Rombit, ConnexBird and the Safetytech Accelerator as well as TT Club and ICHCA.  The Keynote Speech was delivered by the vastly experienced Morten Engelstoft.  A recording of the proceedings is available on request.

“The Awards have been, and remain pivotal to our safety campaign,” emphasised Storrs-Fox.  “However through our own, and our colleagues at ICHCA’s cooperation with conference and exhibition organisers TOC, I am pleased to announce that the Safety Village initiative launched at TOC Europe last year will be repeated and enlarged at the same event in Rotterdam in June.”

The TT Club Safety Village will once more be the venue for workshops and panel sessions throughout the three days of the TOC Europe event. It will also provide opportunities for companies to showcase their innovative safety devices, processes and products. “Providing a focal point for discussion and promotion of such innovations at a leading industry forum will continue to benefit the cause of safety in the supply chain and the development of new solutions to manage significant risks,” concluded Storrs-Fox.

ENDS.

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.


Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

www.ichca.com

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

2022 — A Year in Focus: Lessons Learnt in a World Full of Risk

Specialist insurance provider to the International freight transport and logistics industry, TT Club prides itself on consistently drawing attention to the ever-changing risk profile of this complex sector. Its latest publication ‘2022 – A year in focus’ is a distillation of the diversity of advice it offered last year to maximise the effectiveness of transport operator’s and cargo handler’s risk management actions.

Loss prevention is central to TT’s service ethos and last year saw its professional risk management experts deliver insight into the extent and detailed characteristics of many of the critical threats to the safety and security of global freight supply chains, many of which are on-going.  ‘2022 – A year in focus’ the complete twenty pages of which are available for free download HERE , reaffirms the advice TT offers to counter these high-level risks.

Peregrine Storrs-Fox, Risk Management Director explains TT’s risk mitigation philosophy further, “While the loss prevention team strives to identify topics and initiatives that contribute significant value to both Members and the industry at large, the wider mission of helping to make the industry safer and more secure remains core to the entire TT operation. In this publication, in addition to reviewing an array of risk management guidance materials produced throughout the year, colleagues across the world offer insights on particular threats they are seeing on a day-to-day basis, demonstrating the breadth and depth of the global expertise.”

So while the review continues to highlight TT’s campaigns to bring a more widespread awareness of such dangers as lithium-ion battery transport, quay crane boom collisions, freight crime, warehouse security and abandoned cargo it also presents the experiences of the TT service network from Greece to Taiwan, from Argentina to Hong Kong and from the USA to Turkey.  Such practical insight includes advice on General Average, detention charges as a result of port congestion, risks surrounding LOIs (Letters of Indemnity) as well a ‘full liability contracting’ and air cargo cover.

TT therefore offers ‘2022 – A year in focus’ not just as a review of what has been but as a guide to on-going risks and hazards that those engaged in the global freight supply chain can either learn from or use to refresh their risk management policies.  Managing Director, Loss Prevention, Mike Yarwood emphasises cooperation as key, “Working together to understand individual business and industry needs is vital to ensure that loss prevention activities remain relevant and valuable. We cannot create this content alone. The running message throughout this publication is that each and every initiative has been driven by feedback from our Members and brokers, which provides invaluable on-the-ground input to achieve a safer, more secure and more sustainable trade environment.”

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

TT Club supports NaVCIS to help combat freight crime

The National Vehicle Crime Intelligence Service (NaVCIS) is a police unit with a freight team that collates, analyses and disseminates Road Freight Crime information across England and Wales. The unit has been recently tasked by the UK Government’s Home Office with delivering a Problem Profile on freight crime.  TT Club is supporting NaVCIS Freight and its report with the aim of obtaining increased public funding to address the situation.

The ten-thousand-word report entitled ‘Profile of HGV, Freight & Cargo crime across England & Wales 2022’ (Freight Crime) now completed, is extensive in detailing a range of aspects from types of crime to varied methodologies and from locational analysis to direct and indirect costs to cargo owners and the economy overall.  It also has an number of recommendations on how such crimes can be combatted.

The report and other NaVCIS Freight analysis estimated the value of losses across England and Wales in 2022 amounted to £66.6 million.  There were 4,995 HGV and cargo crime notifications received last year (with data on reports still coming in) and NaVCIS Freight participated in 284 arrests, supporting a further 43 crime operations involving this type of crime.  The unit’s work has in part been responsible for the reduction in the indirect cost to the national economy from an estimated £700 million in 2019 to £428 million in 2021.

“This is still an alarmingly high level of loss despite the excellent work of the NaVCIS unit,” says Mike Yarwood, Managing Director, Loss Prevention at freight transport insurance specialist TT Club.  “Recognition by the UK Government of the need for action to combat such crime is welcomed and we are hopeful that the NaVCIS Freight Crime problem profile will instil some urgency into such action and elicit financial support.   In the meantime, the unit relies entirely on funding from industry including the insurance community.  TT urges entities that don’t yet support NaVCIS Freight to proffer their support as we do ourselves.”

Key conclusions outlined in the Freight Crime report are:

  • Freight crime is committed by Organised Crime Groups (OCGs), prepared to travel hundreds of miles; highly skilled, determined and mobile criminals, aware of police tactics.
  • This is a low risk and high reward crime, regrettably low on police priorities due to available resources.
  • Supply sector under intense pressure from effects of crime, which causes disruption and delay, impacting the viability of companies, retention of staff, and investment in the UK.
  • Lack of a central crime category or tag means crime largely hidden, lenient criminal justice outcomes following prosecutions and low priority for action by government.
  • Lack of investment in infrastructure, particularly in improvement of parking security standards, to be sufficient to deter criminals.
  • Direct public health risk may arise from stolen medicines and food stuffs.

“Our report contains wide-ranging recommendations in order to rectify, or at least reduce the effects of what we believe is a damaging situation at all levels – to individuals, consumers, retail and manufacturing sectors, logistics and transport companies, insurers and the national economy as a whole.  We have put forward this advice to Government by way of this report,” DCI Brett Mallon, Head of unit at NaVCIS .  “Investment in, and legislation surrounding secure parking is not the least of these.  There are law enforcement and policing reforms regarding freight crime that are also urgently required and, of course through the recognition of the seriousness of the issue, a significant increase in resources as well.”

A recent example of NaVCIS’ effectiveness in combatting these crimes and bringing the perpetrators to justice is provided by Operation Luminary involving eighteen months work as a result of which three criminals were jailed for a range of offences related to the theft of lorries and trailers containing cargo to the value of over a million pounds.*  The methods used were sophisticated and included the use of advanced technology such as scanners, key cloning equipment and tracker radios to trace vehicles and block communication signals.  With NaVCIS’ help further successful prosecutions are anticipated surrounding serious freight offences across the country.

For its part TT Club will continue to support the work of NaVCIS Freight, participating in information sharing, investment and publicising the excellent work of the unit.  “Policing authorities and central Government must be brought to understand the extent of both the direct and consequential losses sustained as a result of this less recognised trend in freight crime,” concludes Yarwood.”

*https://www.west-midlands.police.uk/news/trio-jailed-after-bmws-lorries-and-trailers-stolen

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

Fraud is the biggest threat to cargo losses

Criminal fraud in its many and various manifestations within the global supply chain is seen by International freight transport insurer TT Club as a primary and growing threat.  Carrier fraud in particular is a dominant occurrence. Renewed vigilance is required and encouraged by the insurer.

London 12th January, 2023

The almost exclusive use of online facilities to process business transactions allows a myriad of fraudulent pursuits to find opportunities within the complexities of the global supply chain. These have many manifestations; from payment fraud that involves existing mandates and impersonation of executives to procurement fraud featuring false invoicing.

Carrier fraud, in which criminals imitate hauliers and other sub-contractors, including drivers with falsified documents, accounted for 84% of TT claims involving fraud or deception in 2022. TT is eager to pinpoint these risks and offer advice to industry on how to not just identify potential fraud but to minimise and avoid losses through them. 

“No one – from freight forwarders, shippers, and carriers to container owners and logistics, ports, warehouse and depot operators – should underestimate how lucrative an industry fraud is. Using sophisticated, low-risk tactics, fraudsters can easily steal large amounts of money or consignments of cargo,” says Mike Yarwood, Managing Director, Loss Prevention at TT.

“Incidents of fraud that target international supply chains across the globe are not perpetrated by opportunistic criminals working in isolation but in the majority of cases the work of sophisticated organised crime gangs. They have well-honed methodologies that are adaptable in the face of detection devices and changes in operating procedures, as the experience of recent disruption to the freight transport system has proved. Our awareness and readiness to protect our businesses must be stepped-up.”

TT has produced significant resources* to assist operators to shield themselves from fraudulent activities as it sees 15% of its cargo theft claims arise from fraud or deception.  Specific examples include the intentional submission of false invoices purportedly from an established supplier but actually generated by a fraudster infiltrating the online payment system and duplicated or inflated invoices. Other cases, falling into the category of mandate fraud, experience criminal deception by manipulation of bank transfer details by a fraudster pretending to be an organisation paid regularly by the operator by hacking into the victim’s email traffic and imitating a genuine supplier alter bank transfer details for payment of a legitimate invoice. 

TT found however that carrier fraud dominated its claims of this type last year.  There are instances of fake carriers intercepting haulage instructions from forwarders or shippers and posing as the authentic carrier; also falsifying cargo pick-up or delivery documentation to steal loads.

One common tactic is where fraudsters pose as a forwarders using a freight exchange site and provide false instructions to a driver. They match a legitimate haulier to a shipper, facilitating the movement of goods. The fraudster then acts as a ‘middle man’ between these two legitimate companies, arranging the collection and directing the driver. Once the trucker has collected the goods, the fraudster provides new instructions to deliver to an alternative address where the cargo is stolen.

“A key aspect of this scenario is that the driver and the shipper are not in direct contact with one another,” explains Yarwood. “To avoid incidents such as this and other frauds it is crucial to make employees aware of the possibilities, to take extra care to verify documentation and instructions directly with customers and/or trusted partners, especially in pressure situations where carrier options might be in short supply or when there are particular time constraints.” He advises. 

These are but samples of the various modus operandi employed by those intent of defrauding supply chain businesses. TT is determined to maintain a flow of information designed to help the industry combat such practices and to underline both their extent and devious nature in order to reduce financial losses and further disruption to fragile supply chains.

* TT Talk | Be alert to ‘carrier fraud’ (ttclub.com)

   TT Talk | Procurement fraud (ttclub.com)

  TT Talk | Mandate fraud and CEO fraud: do not be a victim (ttclub.com)

  TT Talk | Identifying & avoiding fraud (ttclub.com)

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 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

Declining trade is testing shippers’ patience, pockets and commitment

As global trade declined during the second half of 2022, in response to severe economic headwinds in many countries and the continued effects of the Covid-129 pandemic, the GSF/MDS Transmodal Container Shipping Market Review reflected the impacts on the activity and fortunes of shippers of unitised goods in international trade.

The latest edition of the Container Shipping Market Quarterly Review published today, reports data from the third quarter of year – a time of marked increases in consumer and producer price inflation, historically large increases in interest rates by central banks and high levels of stock inventories in many importing countries. Global energy prices edged higher amid disruptions to supplies arising from the Russian invasion of Ukraine.

However, the impacts of widespread ‘lock-downs’ and stay-at-home orders in China to contain the spread of Covid-19 do not appear to have significantly affected export volumes according to its national trade statistics.

Key highlights of the Review include:

  • Trade volumes of goods capable of being transported in containers continued the decline observed at the end of Quarter 2, but the drop in overall volumes was much less than that reported by the container shipping sector. This is attributed to commodities, such as coffee, scrap metal and plywood, that can also be carried in bulk or semi-bulk form, switching away from containerised movements where shipping rates remain relatively high.
  • Despite falling for a second quarter, carriers’ unit revenues (earnings per container moved) were still 2.8 times higher than pre-Covid rates whereas unit operating costs have only risen by a factor of 1.5 over the same period. Cost pressures have largely been higher charter rates and a slow rise in fuel costs that has since receded. Container shipping lines remain highly profitable despite a falling market.
Figure 4.1
  • Spot rates fell by a fifth during the period, leaving many shippers ‘burnt’ by their decisions to commit to long-term contacts earlier in the year and questioning the many sources in the industry who confidently predicted that disruptive congestion and capacity shortages would continue through 2022 and beyond.
Figure 3.1
  • Adding to shippers’ frustrations, service levels remained at historic lows, with the predictability of arrivals still at only 85 per cent, meaning 1 in 6 sailings arrived later than normally expected.
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 Figure 7.1 
  • The modest improvements recorded in the number of scheduled port calls made, at 90 per cent, is a welcome positive that can be partly attributed to the rising number of sailings that were ‘blanked’ during the period and didn’t sail at all, so easing the pressure on intermediate ports. Many of these saw an improvement in the proportion of expected capacity actually calling at the port s monitored but the proportion of lost capacity is still at historically high levels.
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Figure 7.2

Mike Garratt, Chair of MDS Transmodal said:

“In quarter 3 2022 we saw the mean rates charged by the major lines continuing to suppress the proportion of container traffic they carried while the role played by new entrants was small. During quarter 3 we have seen several of these recent entrants leave the market as spot rates have fallen sharply, while leaving mean rates paid much higher. With a combination of stagnant demand and few ships now being delayed by port congestion, one would expect competition for shippers’ business to lead to a recovery of the share of the overall cargo market carried by container.”

James Hookham, Director of Global Shippers Council, commented:

“The quarter saw the downturn in volumes recorded at the end of Quarter 2 turn into a sustained decline – conditions that have not been seen in the container shipping market for over ten years. Many shippers are experiencing the behaviour of the market under such conditions for the first time.

“Blanked sailings, slow steaming and other capacity management measures will add to the catalogue of frustrations accumulated over the previous 30 months of record high rates and poor levels of service”.

“The widening gap between spot rates and contact prices agreed six months prior to these data will anger shippers further and demands a flexible and immediate response by carriers if their dream of securing a majority of their business on contract ted terms is to be achieved.”

“The big question going into 2023 will be how much of their diminished volumes will shippers commit to renegotiated contracts and how much will they reserve for the spot market, which is expected to fall to below pre-Covid levels in the next few weeks?”

“Countering this trend will be efforts to manage capacity through ‘blanked sailings’ However, the extent to which spot rates are being supported by this permitted co-ordination between consortia partners is playing out just as competition authorities in Europe and North America are evaluating existing anti-trust measures and considering possible options for the future”.

Notes to Editors

  • Mike Garratt, Chairman of MDS Transmodal, is available for interview. Please contact +44 (0) 1244 348301
  • Media Contact:  The Container Shipping Market Quarterly Review for Quarter 2 2022 is available in PDF format on request from Maria Udy, Portcare International. maria@portcare.com +44 (0) 7979 868539.
  • The Container Shipping Market Quarterly Review is produced every three months and reports, interprets and comments on trends and developments in the container shipping market as experienced and understood by shippers – the importers and exporting businesses that own the cargo carried on container ships. Shippers are the customers of the container shipping industry.
  • The Quarterly Review collates and reports outputs from MDS Transmodal’s established and respected Container Business Model and other tools that are relied upon by governments and international agencies around the world. Working with GSF, MDST has generated eight new indicators showing how the market is performing in terms that are relevant and applicable to shippers as users and customers of these services.
  • MDS Transmodal (MDST, www.mdst.co.uk) is a UK firm of transport economists which specialises in maritime and all other modes of freight transport. MDST works with senior management in the public and private sectors to provide strategic advice based on quantitative analysis, modelling and sectoral expertise.
  • Global Shippers Forum (www.globalshippersforum.com) is the global business organisation speaking up for exporters and importers as cargo owners in international supply chains and trade procedures. Its members are national and regional shippers’ associations representing hundreds of manufacturing, wholesaling, and retailing businesses in over 20 countries across five continents. GSF works for safe, competitively efficient, and environmentally sustainable global trade and logistics.

Demystifying General Average

International freight transport insurer TT Club’s latest StopLoss publication, produced in collaboration with forwarder’s association, FIATA and the Global Shippers Forum (GSF), provides a straightforward summary of the topic, along with essential good practice advice. 

London 30th November, 2022

While the concept of General Average (GA) is widely utilised and is as old as maritime transport itself, it is a commonly misunderstood process. Its application as a result of a maritime accident often takes shippers (beneficial cargo owners, BCOs), and sometimes forwarders by surprise. Especially those without adequate cargo insurance.  GA’s complexities, owing to the amount and variation in value of cargo onboard modern-day large container ships, can be baffling.  The additional financial burden and extended delays in cargo delivery are also frustrating. 

“This situation gave TT and our partners ample motivation to create one of our StopLoss advisory publications on the issue, as there is obviously a need for a clear explanatory guideline,” said Mike Yarwood, MD of Loss Prevention at TT.  “Experience shows that the system is an effective means of dealing with large and complex casualties.  However with container ships now capable of carrying in excess of 23,000 TEU, GA adjustment is likely to be an extremely complex calculation and the administrative burden placed on the interested parties is significant.

GA is a globally applicable legal principle of maritime law by which extraordinary additional expenditure incurred during a voyage because of a defined incident can be recovered from all parties involved in the ‘maritime adventure’ on a pro rata basis against the ‘arrived’ value of goods and other property aboard.

“The concept of ‘maritime adventure’ sounds quaint,” comments Yarwood.  “But describes the total group of stakeholders involved in the voyage. GA is the system whereby the ship owner can recover the extraordinary expenses that are necessarily incurred following some maritime incident, in protecting the cargo and/or preserving the ship. The costs are apportioned between the ship, its bunkers (sometimes owned by a charterer of the ship) and stores, and the cargo (including the containers) in proportion to their value.”

The StopLoss publication is directed at an audience of freight forwarders, NVOCs and BCOs explaining in detail the circumstances in which GA can be declared and who declares it, as well as the process of declaration and the appointment of a GA adjuster.  It goes on to outline the role of the adjuster including how bonds and guarantees are assessed and lodged, and how uninsured and LCL (less than container load) cargo is dealt with.

“It is essential that all freight forwarders understand GA to efficiently manage matters and set realistic expectations for their clients and represent their interests effectively.  Equally, BCOs need to understand their obligations, particularly where they have chosen not to purchase cargo insurance,” concludes Yarwood.  As such a section of the StopLoss is dedicated to the actions required by each party and includes a useful checklist of preparations each can make in anticipation of a GA declaration effecting any of their cargoes.

The StopLoss publication 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 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com