TT Club

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

International freight transport insurer TT Club is seeking to draw attention to the life-threatening hazards caused by enclosed and confined spaces prevalent throughout the global supply chain.  Toxic gases produced by some cargoes as well as leakages, residual fumigants and other causes of a reduced oxygen environment are the chief problems, with 60% of fatalities suffered by would be rescuers.

Confined or enclosed spaces are common in the supply chain industry. Such spaces exist across all freight modalities; from tank containers to cargo hold stairwells and holds, to road tankers and sealed cargo units.  A lack of understanding of the danger present may have fatal consequences.

Without sufficient oxygen the human body starts to shut down very quickly. Any rescue operations are therefore time critical. The primary cause of reduced oxygen levels is the increased presence of other gases, such as carbon dioxide. This may arise from rusting of the ship’s structure or metal cargoes, oxidation of cargoes such as coal or the decomposition of biodegradable cargoes, for example fish meal, logs, bark, or wood pellets.   All these lead to carbon dioxide – and potentially other gases – being released, simultaneously depleting the oxygen. Other associated hazards include flammable or toxic vapours from leaking cargoes or leaking pipes or hoses.

Peregrine Storrs-Fox, Risk Management Director at TT explains that a lack of awareness of these, often hidden dangers is surprisingly high. “The key risk is that workers may not readily recognise spaces that could present danger,” he states.  “The cargo hold of a ship is a leading example, but containers and other cargo transport units pose similar risks; there may be a lack of knowledge of the cargo packed or whether fumigants have been used. Similarly, tanks units, whether a road barrel or tank container, certainly qualify as enclosed spaces.”

The speed with which the effects of oxygen depletion can become debilitating require thorough and regular communication to ensure that operatives understand the risks.  When entering a lethal space there are no obvious red flags. In terms of symptoms there are no warning signs such as coughing or feeling breathless or nauseous.  An individual can pass out without having the opportunity to raise an alarm or escape. 

The quick onset and catastrophic nature of these symptoms often leads to others rushing to the aid of the casualty, unaware of the reason for their collapse. Statistically, over 60% of fatalities connected to confined and enclosed spaces are suffered by would be rescuers.

“The silent and invisible nature of this killer emphasises the importance of raising awareness of the risk,” stresses Storrs-Fox.  “Developing and undertaking drills to practice rescues are crucial steps in mitigating the risks, as are a number of other strategies including risk assessments of working in potentially hazardous spaces, discouraging short cuts in work practices and testing, monitoring and venting air in confined areas.”

While not exhaustive, TT has developed a checklist of risk mitigation strategies that can be applied across all modes, whether on land or at sea.  This can be accessed 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.

FIATA International Federation of Freight Forwarders Associations and TT Club, the leading international freight transport insurer, are excited to unveil this year’s outstanding regional achievers of the Young Logistics Professionals (YLP) Award 2023.

The 2023 regional winners are:

• Region Africa and Middle East: Andre Hein Gerber, SAAFF, South Africa
• Region Americas: Viktoriia Rudyk, CIFFA, Canada
• Region Asia-Pacific: Hasbi Bin Yaakob, SLA, Singapore
• Region Europe: Nils von Salzen, DSLV, Germany

FIATA and TT Club express their heartfelt congratulations to the four regional winners and acknowledge the paramount importance of such competitions that encourage young people to showcase their talents and dedication in the logistics industry. By participating in the YLP Award, these young professionals have not only demonstrated their profound knowledge but also honed their skills.

The YLP Award is significant in inspiring and nurturing the next generation of logistics professionals. This year again, exceptional dissertations were submitted by the winners, which not only capture the intricacies of the global supply chain but also consider diverse parameters, displaying their ingenuity and commitment.

FIATA and TT Club are delighted to continue encouraging and celebrating the brilliance and dynamism of YLP and recognise the invaluable experience and exposure gained through such competitions, paving the way for these young professionals to make a positive impact on the industry’s future. Both organisations eagerly look forward to resuming the physical competition format, this year again, providing an enriching experience for the regional winners at the FIATA World Congress in Brussels, Belgium. The event offers a unique opportunity for them to immerse themselves fully in the freight forwarding community, fostering valuable connections and furthering their careers.

Belgium, known for its strategic location at the heart of Europe, plays a crucial role in the logistics landscape, serving as a major gateway for trade and commerce. By participating in this prestigious event in Brussels, the regional winners will gain valuable insights into the intricacies of the Belgian logistics industry, further enhancing their understanding of global supply chains and exploring new avenues for collaboration and growth.

About FIATA

FIATA International Federation of Freight Forwarders Associations is a nongovernmental, membership-based organisation representing freight forwarders in some 150 countries. FIATA’s membership is composed of 111 Associations Members and more than 5,500 Individual Members, overall representing an industry of 40,000 freight forwarding and logistics firms worldwide. Based in Geneva, FIATA is ‘the global voice of freight logistics’ www.fiata.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 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

Morten Engelstoft has been elected as the new Chairman of TT Club as Ulrich Kranich retires.  Three new Directors also announced. 

The liability insurance provider to the international cargo and logistics industry has announced that Morten Engelstoft is to take over as Chairman of both Through Transport Mutual Insurance Association Limited (Bermuda) (‘TTB’) and TT Club Mutual Insurance Limited (UK) (‘TTI’)* on the retirement of the present incumbent, Ulrich Kranich.

Engelstoft spent thirty-six years in various positions and across three regions within Maersk. He retired in June 2023 from the position of CEO of APM Terminals. He has a depth of knowledge and vast experience in operations that are at the core of TT Club’s membership base.

He commented, “TT Club remains the foremost specialist insurance provider to the majority of container shipping lines, a substantial number of terminal operators and a wide range of logistics and transport operators.  I look forward to leading the Boards and helping to guide the Club on its continuing path of providing essential cover and valuable loss prevention advice to a dynamic and vital global transport community.”

Ulrich Kranich retires from his position as Director and Chairman of the Club after sixteen years.  Charles Fenton, CEO of TT Club took the opportunity of thanking Kranich. “Ulrich has been a much valued guiding hand in a period that has seen significant change in our industry.  His insight and wise advice has been fundamental to TT’s continued success in this period,” he said.

Kranich commented, “It has been an honour to lead such a valued organisation owned by the industry and in Morten the Club has a fantastic person to take the Club forward to continue to support Members ”.

Ulrike Baum of Rohlig Logistics who has been on the Board since 2016 has stepped down as director. She was similarly thanked for her service, which included time on Board Committees.

Marika Calfas of NSW Ports in Sydney has been appointed to the Board; as has been John Chambers, currently Specialist Director – Insurance who also serves on the TTI Board. Miguel d’Orey of Orey Shipping in Lisbon has been appointed to the TTI Board.

*TTB is composed of a large group of directors that meets three times a year and provides leadership and industry view that impacts long-term strategy. TTI is a subsidiary of TTB. A smaller group, it meets more frequently to provide closer oversight of the Club’s operational and financial performance.

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

With the publication of TT Club’s 300^th Edition of its monthly advisory TT Talk, the international freight transport insurance specialist announces additional resource for its loss prevention function in the shape of two more risk management professionals.

London, 12th July, 2023

The loss prevention function is pivotal to the mutual ethos of TT Club, which strives to guide those it insurers – and indeed the wider industry – in all aspects of risk through the container transport and global logistics supply chain. The latest TT Talk is evidence of the insurer’s commitment to this service. For over twenty-five years the monthly, online newsletter has extended awareness of, and offered advice on how to mitigate specific risks to an audience of the Club’s Members as well as the industry at large. Under the title, ‘Container Industry: incremental change?’, TT Talk #300 takes the opportunity to examine the dynamic influences that have moulded the industry since issue #1 was produced and look ahead in relation to current issues. It can be read in full HERE

“Our aim in producing TT Talk has always been to remain topical in terms of the risks we cover,” says Rick Management Director, Peregrine Storrs-Fox. “Drawing on a range of sources, including the risks that are presented for insurance and the extensive claims data at our disposal, as well as ongoing interactions with the global industry, like-minded associations and governmental agencies, we seek to enhance the likelihood of successful outcomes and above all ensure the safety and security of the supply chain workforce around the world.”

Underlining TT’s on-going dedication to providing such valuable loss prevention guidance, the Club has announced the commitment of additional resources to its team. Josh Finch has joined as Logistics Risk Manager and Neil Dalus becomes EMEA, Risk Assessment Manager.

Commenting on the appointments, Mike Yarwood, MD Loss Prevention said, “We are providing additional manpower for the benefit of both our logistics and terminal operations clients. Josh, from a background of warehouse management and road transport, and Neil as an engineer from the port industry will add significant strength to our existing team. They will allow TT to increase its risk management and loss prevention service across all aspects of the container supply chain.”

Josh Finch has fifteen years’ experience in the logistics industry featuring various operational and project management roles. His positions as operations manager at the independent UK logistics company, Howard Tenens and at DHL Supply Chain, as both operations and transport manager, have allowed him to acquire a depth of knowledge into the practical, day-to-day application of risk mitigation policies.

Neil Dalus’ career extends over twenty-plus years managing port and port related infrastructure and assets. This experience includes positions in Local Authority, Consultancy and eleven years at PD Ports, starting as a civil engineer and progressing to Group Engineering Director. His skills and knowledge will ensure that port authorities, as well as cargo handling and terminal operators are well advised as to their specific risk profiles.

The full library of 300 TT Talk’s plots the ever-changing dynamics of the freight transport world and the evolving nature of risks that attend it. The resources that TT invests in its loss prevention activity will endeavour to keep pace with such changes and challenges, continuing to inform the industry as comprehensively as it can.

ENDS

About TT Club

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

The latest analysis from international freight insurer, TT Club and business improvement consultants BSI SCREEN, reports dramatic 2022 year-on-year increases in freight crime in Chile with incidents of theft estimated at 27% up on pre-pandemic levels.

• A 450% increase in the frequency of insurance claims in 2022
• Increased value of claims over same period of 820%
• Over half of cargo crime incidents involve hijacking
• Insider threat heightened due to socio-economic factors
• Most common commodities targeted were electronics (25%) and foodstuffs (20%)

TT Club has once more come together with BSI SCREEN, this time with the Logistics Association of Chile (ALOG) and the crime investigation unit, Signum Services (an associate of TT within the Thomas Miller Group), to focus on a worryingly dramatic trend in the Chilean freight transport sector.  The extensive report, based on the wide-reaching data resources of the four organisations, has recently been published.  Entitled ‘Freight crime in Chilean supply chains’ it is available for download HERE

In an introduction to the risk landscape, the report notes that pandemic-induced measures such as quarantine, restrictions in movements, curfews and had the effect of reducing the incidence of cargo theft for much of 2020 and 2021.  However, last year, with such limitations lifted, levels of crime sprung back with vengeance to 27% higher than pre-pandemic levels, according to ALOG data.

“The underlying factors that seem prevalent in explaining the alarming statistics seem to be predominantly social and economic in nature,” comments TT’s Managing Director of Loss Prevention, Mike Yarwood.  “Inflation, increases in the cost of living and social unrest have motivated individuals to turn to crime.  These circumstances, which also encourage a larger black market, particularly in foodstuffs, instil heightened criminality in the population.”

Indeed, the report found that criminal organisations that are behind much of the theft have exploited to a greater degree than in the past those employed in the supply chain, to provide valuable data and information on cargo flows, nature of loads and an ability to falsify delivery instructions. Labour strikes, also common in a recession, create pinch points in the usual smooth flow of goods. Such locations become a focal point for crime. The reported statistics show that second to hijacking as a mode of theft (57%), is the combined activity of stealing from a facility or of a vehicle itself, when cargo is at rest, contributing to 32% of all incidents. 

“A primary goal of TT in participating in this report is the same as that of our partners at ALOG and BSI,” says Yarwood. “It is to create a greater awareness of the threats, so operators can take mitigating protectionist steps. To this end, our report carefully details two of the primary strategies used by the criminal fraternity, – hijacking and the use of insider knowledge and cooperation.  The report also provides a well-researched case study on the role criminal organisations are playing in infiltrating the supply chain in Chile, and throughout Latin America.”

As with all awareness reports of this nature, TT and its co-authors are keen to offer guidance on how such theft risks can be alleviated with advice, in particular on combatting the criminal device of fictious pick-ups. The report contains a long list of measures from secure verification procedures and driver ID checking to staff training in identifying suspicious circumstances and monitoring through tracking technology to ensure shipments are being delivered correctly.

“With the help of our partners, utilising a wide range of in-depth data resources, TT will continue to research cargo crime internationally in order to forearm the supply chain industry with information on trends in such damaging losses,” concludes Yarwood.

ENDS

About TT Club

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

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain.

To learn more, please visit www.bsigroup.com/supplychain

About ALOG Chile

The Logistics Association of Chile – ALOG Chile A.G., is the entity that brings together Logistics Operators, Freight Forwarders, and Logistics Service Providers at a national level. ALOG Chile A.G. consists of approximately 90 member companies, categorized as Active members, Collaborative members, and Independent Professional members, encompassing 90% of the national market.

 In its spirit of multi-nationalist work, ALOG Chile A.G. participates in the International Committee of the National Chamber of Commerce (CNC) as an active member. Internationally, it is a member of the International Federation of Freight Forwarders Associations (FIATA) and has a collaborative working agreement with the Colombian Federation of International Trade Logistics Agents (FITAC).

At the heart of efforts to draw attention to the hazards inherent in transporting lithium-ion batteries, specialist freight insurer TT Club now urges debate leading to a balanced, yet realistic awareness of the dangers, and a united approach to enhancing their safe carriage. Improved regulatory clarity is required and auto manufacturers need to address transport safety issues more thoroughly.

London, 21^st June 2023

Rapid development of battery technology and the uncertainties created by these developments, particularly concerning safety when the energy packs are being transported require the logistics industry to have a clear understanding of the dangers which can include fire, explosions and toxic gas emissions.  Moreover, there needs to be increased efforts to minimise the risks, and if necessary, make sure there is an effective response to any catastrophic event.

Alarmist reports in the media can overstate the number of incidents involving electric vehicles.  Indeed Peregrine Storrs-Fox, Risk Management Director at insurance mutual TT Club points out that “Lithium-ion (li-ion) battery fires are not an everyday occurrence.  But when thermal runaway does happen, the result is release of toxic gases such as carbon monoxide and hydrogen cyanide, a very high temperature fire and can spread very fast.”

The release of toxic fumes may be the first alert, but fire with temperatures higher than 1,000degs centigrade can be reached in a matter of seconds and, as the mix of chemicals and metals ignites, devastation can ensue.

In keeping with its mission to extend awareness and achieve a united front, TT Club was delighted to be part of a forum of interested parties which was held recently in London.  Much was revealed by the speakers and valuable debate ensued.  “Supply chain players including ship owners, carriers, forwarders, terminal and port operators and insurers are engaged with these debates. Indeed, the maritime regulator IMO (International Maritime Organization) has its guidance for carriage of these batteries under serious review,” says Storrs-Fox.  “But we need to bring manufacturers of EVs and the batteries that power them actively into the debate.  Their ambitions for the development of more powerful, lighter and diverse battery cells must not be allowed to outstrip prioritising safety concerns surrounding their future transportation around the globe.”

Such concerns regarding the battery packs within electric vehicles (EVs) have been raised in the US and the National Transportation Safety Board (NTSB) has carried out a study.  The forum heard that EVs were reported to have incurred fewer fire incidents than internal combustion engine (ICE) cars. However, there are a few provisos to be highlighted here – not least that there are far fewer electric cars on the road than ICE vehicles.

Secondly it is understood that newer batteries are less likely to ignite or explode than used batteries, effectively the older the li-ion unit, the greater the chance of an incident. As a result, it is not clear how the batteries will perform through the intended life, given that the switch to EV’s is only now gathering pace and most battery packs are new.

Regarding the rapid spread of fire, Eva Mckiernan, the technical director at firefighting consultancy Jensen Hughes highlighted the dangers of thermal runaway as the most pressing issue after ignition.  She explained that these energy packs are thermo-dynamically unstable.  When the batteries are damaged, they can release hot and poisonous gases into containers or onto car decks of ro-ro ships and other vehicle carriers within seconds.  When the batteries explode those extraordinary temperatures can be reached.

“Thermal runaway occurs when the heat and chemical reactions reach a certain level, they are effectively self-sustaining and very difficult to extinguish,” she added.

Of course, EVs are just one use for li-ion batteries, which can be found in a variety of goods including e-bikes and scooters, as well as computers and mobile phones.  All of these goods are transported with batteries in containers. Whilst transported as new, it may be reasonable to expect appropriate packaging, although state of charge is variable, used and damaged batteries present considerable uncertainty for the transport supply chain. 

“Currently li-ion batteries are classified as one of four UN numbers, depending on power output or the weight of lithium in them and whether they are contained within devices or shipped separately.  All four are Class 9 in the IMDG Code – Miscellaneous dangerous substances and articles,” explained Storrs-Fox.  “Class 9 is the least hazardous ranking and dates from a change in IMDG Class from 4.3, which was made in the late eighties.  Clearly there is a need for a radical review of this classification, as the size and energy capacity of these batteries has altered dramatically since then.  As has the volume being carried in container ships.”

This raises concern that li-ion batteries are not classified as sufficiently hazardous and the range of potential Special Provisions increases complexity and uncertainty.  All this may have serious ramifications when a container is being accepted for shipment or a ship stowage plan is being compiled. Storrs-Fox concludes, “In addressing the commercial opportunity in the answering the agenda to move away from fossil fuels, there needs to be urgent engagement from manufacturers and OEMs to resolve the justifiable concerns of the logistics industry – ahead of regulatory strengthening.”

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