Though not a robust deterrent to determined thieves the humble seal plays a central role in identifying location, method and often perpetrators of cargo theft. Freight insurance specialist TT Club argues for greater emphasis on the container seal as part of a stronger security culture across the supply chain

Loss due to theft is among the top three causes of claims received on an annual basis by the international freight and logistics insurance specialist, TT Club. Identification of trends, spikes and hot spots surrounding this aspect of supply chain crime is a primary function of the insurer, as is the issuing of guidance to help mitigate such losses. In the latest of its ongoing series of Security Bulletins, TT focusses on the crucial importance of the container seal, as a fundamental tool in assuring the integrity of global cargo transportation.

Despite the existence of a wide range of security seal types, from basic plastic clips through to the frequently used bolt seals, and now sophisticated  digital options, many in the supply chain are ignoring their benefits in maintaining cargo integrity and promptly identifying theft.

Thieves have devised complex strategies, as well as traditional bolt cutters, to access a container’s cargo undetected.  These include recruiting insiders and manipulating seal numbers, either manually or using 3D printing so almost identical seals can be affixed once the cargo is stolen.

“Whatever sealing regime is employed its effectiveness crucially depends on how the process is managed,” emphasises TT’s Logistics Risk Manager, Josh Finch. “It is important for supply chain managers to be aware of the limitations of the various seal designs but also appreciate that whatever seal type is employed, their efficacy hinges on whether the information from the seal is accurately checked. A security culture must pervade operations at both loading and unloading points, as well as other key handling locations.”

Often personnel at the receiving warehouse view the seal as a nuisance, something that needs to be cut from the doors prior to them opening the container and unpacking it. However, identifying any tampering with the seal can be vital insofar as liability is concerned, helping to pinpoint exactly how the theft occurred, who was involved and where goods were damaged or stolen. “Moreover such knowledge clearly acts as guidance in taking steps to avoid future incidents,” comments Finch.

A vital consideration in expanding the use of seals is that almost all are currently either single-use or have an element that is plastic. Clearly, promoting their widespread usage involves consideration of sustainability, especially as the industry focusses increasingly on environmental, social and governance (ESG) issues. Speaking of this limitation, Finch comments “While there are clearly environmental concerns with many container seal solutions, we cannot ignore the societal implications of allowing cargo theft to thrive in the industry. TT sees innovation in all areas of the transport and logistics industry, and we see great potential in digital seals that increasingly appear on the market.”

Gathered together in this Security Bulletin is TT’s own loss prevention advice together with collaborative work undertaken with other like-minded organisations in this space. From basic descriptions of seal specification, performance characteristics and benefits to new e-seal and tracking technology, and from details of criminals methodologies to guidance on best practice to combat theft, the Bulletin outlines the crucial role seals should play in operators’ security processes and culture. It can be accessed 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, more secure, and more sustainable. Founded in 1968, the Club has more than 1500 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

Kevin King has been confirmed as Chief Executive Officer of the specialist transport and logistics insurer TT Club, completing a planned move announced last year.  Acting as Deputy CEO to Charles Fenton over the last year, King and Fenton have worked closely to complete a smooth and efficient transfer of responsibilities. He has officially taken up this position from 1^st August.

Originally based in the United States, King has long held positions within Thomas Miller managed businesses, and transferred to London in 2015 to lead the Europe, Middle East and Africa region at TT.  More recently he served as the insurer’s Chief Operating Officer.

Out-going CEO Charles Fenton, in confirming the move, said, “Kevin is well-positioned to lead TT into a challenging future.  His vast experience of the mutual insurance model, vision in harnessing new technologies and well-honed management skills will ensure TT continues to evolve in step with both global transport developments and a dynamic insurance market.  The TT main board and I have every confidence in his leadership abilities and I welcome him to his new role.”

Fenton himself will remain close to the business.  He has been Chairman of Thomas Miller Holdings since 2021 and will continue as a member of the TT Club Board and in the promotion of the Club internationally.

Kevin King is eager to help guide TT through the next phase of its 56-year history saying, “It has long been a privilege to work for, and now lead, a purpose driven organisation. The Club’s mission to make the global transport and logistics industry safer, more secure and more sustainable guides everything we do. We are well positioned financially, technologically and especially with our established expertise around the world to succeed both as an insurer and a positive force for change in the industry. I am grateful to Charles for his mentoring and leadership over my career, and thankful he will remain close to the business.”

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, more secure, and more sustainable. Founded in 1968, the Club has more than 1500 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

The British International Freight Association (BIFA) used the latest episode in its 2024 webinar series to deliver some key advice on the subject of safety in the container shipping environment.

Keynote speaker at the webinar was Mike Yarwood, managing director of loss prevention at TT Club, a global leader in providing insurance and risk management services to the international transport and logistics industry. He was supported by Robert Windsor, BIFA’s member policy & compliance director, with responsibility for advice and information on maritime, road and dangerous goods, BIFA Standard Trading Conditions (STC), as well as legal and insurance matters.

With their extensive expertise, Yarwood and Windsor guided attendees through crucial safety practices in the maritime containerised supply chain.

The webinar covered three key areas, including the proper packing, transport, and unpacking of cargo transport units (CTUs) with attendees gaining insight into best practices to ensure the safe handling of freight containers, an often-overlooked aspect in maritime transport compared to air freight.

Furthermore, in addressing the management of hazardous cargoes, the webinar highlighted the dangers of non-declared and mis-declared hazardous cargoes and attendees gained insights into the initial checking of documentation, methods for identifying non-compliant freight; and some steps for regularising cargoes.

Additionally, understanding the importance of accurately weighing cargo to establish the Verified Gross Mass (VGM) of the container was addressed as well as its significance to ensuring safe and compliant shipping practices.

BIFA took the opportunity to emphasise the importance of incorporating its Standard Trading Conditions (STC) into contracts to maximise their protective benefits.

Commenting on the webinar, Windsor said: “There have been several widely reported container fires aboard ships, where containerised cargoes may have been the cause of, or contributed to such fires.

“BIFA believes that consistent, widespread and diligent adherence to the CTU Code by all parties within global CTU supply chains would significantly reduce these types of incidents, some of which have resulted in fatalities and serious injuries amongst ships’ crews and shore-side staff.

“Other occurrences, such as container stack failures, vehicle roll-overs, train derailments, internal cargo collapses and incidents of invasive pest contamination, can also be traced to poor packing practices.

“Through activities like this webinar, we hope to foster a greater awareness of the CTU Code and the packing practices and techniques it contains and help to reduce such incidents.”

Yarwood added: “Raising awareness of the myriad risks that permeate the global supply chain, via webinars such as this, is fundamental in influencing the adoption of better practices that will increase the safety, security and sustainability performance of operators. TT Club is grateful to BIFA for providing the platform and access to an engaged audience”.

ENDS

Notes to editors

Webinar attendees were encouraged to download the following guidance documents to maximise their learning experience:

• IMO/ILO/UNECE Code of Practice for Packing of CTU Code | UNECE
• Cargo Integrity Group – CTU Code: A Quick Guide | TT Club

About BIFA:

The British International Freight Association (BIFA) is the trade association for UK-registered companies engaged in international movement of freight by all modes of transport – air, road, rail, and sea. BIFA represents over 1,650 member companies in the logistics and supply chain management sector. www.bifa.org

About TT Club:

Established in 1968, TT Club is a leading provider of insurance and related risk management services to the international transport and logistics industry, with a mission to make the industry safer, more secure, and more sustainable through comprehensive loss prevention initiatives and expert advisory services, including specialist underwriting, claims management and risk and loss management advice. www.ttclub.com