London 29^th October 2013

82% of insurance claims related to cargo handling at ports are the result of operational shortcomings or poor equipment maintenance.  This revealing statistic was presented by TT Club’s Regional Director, Asia-Pacific, Phillip Emmanuel as he addressed representatives of South Asian ports at an industry conference in Mumbai last week.

Leading freight transport insurer, TT Club’s analysis of claims received over the past seven years show an overwhelming frequency of avoidable incidents resulting in bodily injury, damage to property, equipment and cargo.  TT Club urges operators at ports and other cargo handling facilities in the region to employ effective procedures, training and safety technology.  “The Club strongly believes that such measures will significantly reduce risk and bring commercial benefits such as lower insurance premiums and higher levels of customer service,” stated Phillip Emmanuel.

As regards the enduring problem of theft, Emmanuel suggested, “Prevention is a combination of: a physically secure site; rigorous checks and double-checks on paperwork and well-trained and well-motivated staff. “

Prevention advice formed a pivotal part of the presentation with Emmanuel strongly urging operators to carry out continuous safety training for their employees; pay particular attention to their security procedures to mitigate against theft and to up-grade traffic management systems to help avoid in-yard vehicle collisions.  In addition, investment in safety technology is advised.  TT Club have seen 236 quay crane boom to ship collisions in the past 7 years worth US$15m. Crane boom as well as mobile equipment anti-collision sensors and container weight and load eccentricity detection devices, among other measures, will pay off the initial installation cost through future savings on damage repair and operational downtime.

Rapid growth in cargo throughput has the effect of heightening the risk factors in handling facilities and port terminals and TT Club would caution operators in India not to lose sight of risk management issues as they also cope with the dynamic growth of throughput in their ports.  For its part TT Club has recently strengthened its resources in the region to better serve its Members. The appointment has been confirmed of network partner Pandi Correspondents (Mumbai) Pvt Limited, which has offices in Chennai, Kolkata and Goa in addition to Mumbai.  Pandi has been delegated claims handling authority providing the ability to settle claims in local time.

Emmanuel also sees this commitment to the Indian market as an opportunity to assist cargo handling companies with their risk management and loss prevention programmes.  “One of TT Club’s strongest attributes is its global claims service.  As a mutual we are dedicated to handling our Members’ claims in the most comprehensive and effective manner possible.  The elevation of Pandi to the status of a network partner will significantly enhance this service in the crucial Indian market,” he said.  “Moreover the Club is stepping up its efforts to communicate the lessons to be learned from our analysis of past claims and the extensive experience we have accrued from forty-five years of providing specialist insurance cover and advice.”

Emmanuel was speaking on the first morning of the 8^th Southern Asia Ports, Logistics and Shipping Conference in Mumbai.  He addressed business leaders from over thirty-five world-class transport companies and a total of some five hundred senior executives from twenty-five countries.  Running concurrently with the conference was an international exhibition featuring sixty companies from around the world showcasing their cargo handling, transport and logistics services.

ENDS

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

London 25^th October, 2013

The TT Club is delighted to congratulate the Cargo Incident Notification System (CINS) on being presented with this year’s Containerisation International Award for Corporate Social Responsibility at a ceremony in London yesterday.

CINS was established in 2011 by five of the world’s largest shipping lines with the primary aim of growing a system designed to capture incident data from the container supply chain.  As a major insurance provider to container operators and handlers, TT Club was invited at the outset to act in an advisory capacity to the CINS Committee, alongside the International Group of P&I Clubs.

The CINS initiative was taken in response to the increasing volume of incidents that regularly disrupt operations and endanger lives, property or the environment, both at sea and on land. The founding members, CMA CGM, Evergreen Line, Hapag-Lloyd, Maersk Line and MSC, have been joined by an equal number of other lines, and the group now represents about 60% of container slot capacity*.  Managed by the Container Owners Association, it is expected that the CINS network will grow in coming months, as a number of other shipping lines have shown great interest in the initiative.

Peregrine Storrs-Fox, TT Club’s Risk Management Director said, ‘The most compelling result of the initiative will be an improvement in safety and good work practices.  It is exciting that CINS has been able to bring highly competitive shipping lines together in a concerted effort to identify the major common causes of dangerous incidents.  It has been an enormous pleasure to work alongside key individuals in these lines, who have formidable experience in cargo management.  This award is truly deserved’.

The CINS incident database is used to provide an early warning of causes for concern that may be trending.   In a year that has seen serious fires plague the maritime mode, it is sobering to note that the most frequent cargoes causing problems over the last two years relate to flammable, corrosive and environmentally hazardous products.

Investigations into the root causes of these incidents have revealed that most commonly issues pertaining to cargo packing  – packaging, dunnaging and securing  and declaration – are major contributors.   Such findings strongly support the need to conclude the IMO/ILO/UNECE Code of Practice for Packing Cargo Transport Units and see that good practice is widely disseminated.

The CINS Committee has commented robustly on the issue.  ‘CINS findings to date show a strong case to seek broader industry involvement, to increase the awareness of areas of concern and trends in containerised shipping, and continue to improve safety in the supply chain’.

Storrs-Fox concludes, “Nobody engaged in the supply chain industry would deny that there are many continuing or emerging unsafe practices.  For its part TT Club is committed to ongoing efforts to improve safety and mitigate risk as cargo volumes in global trade continue to rise.  Loss prevention is a basic principal of the Club.  As such we commend the vision of the CINS members as they seek to heighten awareness of these unsafe practices, working together to enhance safety, reduce cargo loss and minimise the risk to those employed at sea and ashore, as well as to assets and the environment”.

*Source: Alphaliner

ENDS

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

Speaking at the recent TOC Americas Conference in Miami TT Club’s Senior Underwriter, Dan Negron outlined his views on future Latin American trade growth and the pressures that this will create on the region’s transport infrastructure.

London & Jersey City, NJ:  23 October 2013

While the growth rates of national economies in Latin America have slowed in recent years, the two largest economies, Brazil and Mexico are still forecast to increase by over 3% annually, while significant growth is predicted in Colombia (4.7%), Chile (5.1%) and Peru (6.3%). This growth is one of four factors identified by freight transport insurance specialist TT Club in its current country-by-country market analysis of the region, Transport and Logistics Market Opportunities.

The Club’s Senior Underwriter, Dan Negron presented the findings at a transport industry forum at the beginning of the month.  “Two examples of robust economies are Colombia and Peru.  The latter has grown its export trade by a multiple of five over the last decade, while Colombia has a sustained GDP growth rate in the region of 5% in recent years.  Both have burgeoning middle classes, a significant driver of international trade,” explained Negron.

Such economic growth is one of four factors pin-pointed in TT’s analysis; the other three being government policies, improved connectivity and distribution channels.  It is clear that a number of government policies, particularly the privatisation of ports and free trade agreements are significant in terms of increasing trade.  Negron reported however that the need for greater investment in domestic infrastructure to improve transport connectivity within the region, and a need for logistics supply chain services to be more organised, were in danger of frustrating trade growth in reaching its full potential.

While Latin American ports are themselves becoming increasingly better organised, the infrastructure used to move goods to and from the inland production and consumption locations have not been modernised at an equivalent pace.  “In addition to this need for capital investment to improve connectivity,” said Negron “very often the functions of warehousing, trucking, cargo consolidation and other related services are performed by individual operators or by shippers themselves.  Systems therefore tend not to be fully-integrated and the efficiencies of a cohesive supply chain can’t be realised.”

TT Club itself is a stakeholder in the success of efficient supply chains, benefiting along with its Members in the reduction of risk that such efficiencies bring. Increased volumes of trade will result from improved connectivity and better integrated distribution channels.  The Club is committed to improving trade opportunities in Latin America and aiding transport operators in their development.

ENDS

*Scotia Bank – Regional Outlook 2013

Note to Editors:

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