About British Ports Association (BPA)

1. The British Ports Association represents the interests of over 100 port members, covering more than 400 ports, terminal operators and port facilities.
2. The UK ports industry plays a key role in the country’s economy as 95% of the UK’s international trade – imports and exports – is carried through British ports.
3. UK ports also handle more than 60 million international and domestic passenger journeys each year.
4. The UK port industry is the second largest in Europe, handling around 500 million tonnes of freight each year.
5. UK ports directly employ around 115,000 people.

The British Ports Association recently produced a video which highlights the importance of ports to the UK’s economy. It can be viewed by clicking here

Clandestine migration has been a problem for the transport sector across Europe for some time now. While more stringent border crossing checks have been imposed due to the current COVID crisis, the risk to operators is not diminished. Furthermore, as the restrictions on movement begin to ease migration activity could be set to escalate warns international freight insurer TT Club

The smuggling of people has unfortunately become a major issue in certain parts of the world. Political imperatives in target countries have led to stricter immigration restrictions and increased government action. International clandestine migration has become a persistent threat to the unitised supply chain.

No mode of transport can be considered exempt from clandestine movement of people. However, the risk is greatly heightened during the road modality. In Europe, BSI Supply Chain Services and Solutions statistics highlight that 86% of recorded incidents involve movement of cargo by road, which in the case of the UK also often involves a ferry crossing.

Nor has the current COVID pandemic lessened the dangers.  The effect is more that enhanced border control measures and travel restrictions have merely shifted the focus or means of smuggling activities temporarily.  Indeed, according to a recent report[1]from the European Migrant Smuggling Centre (EMSC), part of Europol, migrant smugglers have been increasingly using small boats to cross river borders and the English Channel.  More significantly for the freight industry, the report goes on to say there has also been a shift “to hiding of irregular migrants in concealments in freight vehicles and cargo trains that still move across the borders” during the COVID outbreak.

“Our first consideration of course must be with the well-being of the migrants themselves, who are often victims of criminal activities and whose lives are often at risk,” says TT Club’s Managing Director, Loss Prevention Mike Yarwood. “In terms of the liabilities that transport operators are exposed to, however, TT Club is warning of potential physical damage to cargoes, additional freight costs, vehicle and equipment detention, fines, penalties and reputational damage,” Yarwood states.

Criminal organisations are often the facilitators of this clandestine movement. They know that the simplest way to move people across international borders is to hide them in legitimate freight transport.

Pre-COVID there had been numerous incidents featuring the cross-channel route to the UK in the recent past, including the tragic case of 39 Vietnamese migrants found dead in a refrigerated road trailer last October. However, such events have not been limited to this type of cargo unit – as proved by the discovery in March of 10 Eritreans in a shipping container in Hull. The container was unaccompanied and was loaded onto a ferry in Zeebrugge.

TT Club emphasises that all stakeholders who regularly undertake cross border freight movements must be vigilant. Close consideration should be given to the preventative guidance that governmental authorities produce. TT Club itself has collaborated with leading global provider of supply chain intelligence; BSI Supply Chain Services and Solutions to publish a StopLoss briefing entitled Clandestine Migration*.

In the fast-changing COVID circumstances, the easing of ‘lockdown’ restrictions may further exacerbate the problems of illegal migration. “This might be a particular danger as regards potential movement into the UK,” states Yarwood. “Although cross-border freight services are still running during the COVID lockdown and therefore providing opportunities to migrants, it is likely that there are large numbers of people currently unable to move, who may want to cross to the UK and will attempt to as the restrictions on movement are lifted at first gradually and then fully.”

“Constant vigilance and awareness are the only ways to combat stowaways in these types of transport. Vehicles should be checked regularly en route to ensure that they have not been entered, particularly after stops when left unattended,” advises Yarwood. The briefing document details the measures that should be taken: specific training for drivers; precise security procedures; robust security devices to secure the vehicle, goods and cargo space; and practical measures before and during the packing process, and in transit.

TT Club remains committed to assisting operators with advice and the development of good practice guidance in all risk situations, including the serious situation involving clandestine migration. But as Yarwood concludes, “Whilst owners, operators or drivers may contract with third parties to conduct the required checks on their behalf, they are likely to remain liable to any penalty and/or loss incurred. Consequently, due diligence in the selection of such contractors is critical.”

[1] EMSC 4^th Annual Activity Report – 2009 (https://www.europol.europa.eu/sites/default/files/documents/emsc_4th_annual_activity_report_-_2019.pdf)

*Available for download 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 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

The target of 50% of all bills of lading to be electronic within the next decade has been set by the Digital Container Shipping Association (DCSA) in an announcement made last week.  The international freight transport insurer, TT Club welcomes the commitment by the group of container shipping lines that together operate nearly 70% of the world’s capacity.  The initiative is consistent with the increased trend towards digitisation across the industry to improve efficiency and reduce costs.  However, the current pressures felt through the supply chain as a result of the COVID-19 pandemic have no doubt spurred the action.

In its role as liability insurer and adviser on risk management throughout the container industry, TT Club is active in encouraging digitisation, including the cumbersome bill of lading processes.  Additionally, the mutual has been providing valuable guidance to operators on the unique practical issues that they are experiencing with the physical transfer of bills of lading and other documentation due to lockdowns, government restrictions and other COVID-19 related disruptions. The Club has compiled a dedicated COVID-19 webpage¹ to communicate such advice, including numerous briefings, FAQs and links to further regulatory information.

Peregrine Storrs-Fox, TT Club’s Risk Management Director comments, “As early as the late 1990s TT Club recognised the substantial benefits that would accrue to the entire international unitised supply chain, as well as liner shipping businesses, through the adoption of electronic documentation, taking its part in the foundation of bolero.net². This initiative also understood that the bill of lading is but one component in much broader trade practices, including buyers and sellers and, critically, banks. As a result bolero.net has developed a significant array of trade offerings that wrap around the fundamental characteristics that are fulfilled legally in the traditional bill of lading.”

TT Club is concerned that there continues to be such significant reliance on paper-based processes, whether certification, checks, or the range of contractual documents in international trade.  The opportunity for seismic efficiencies and broader benefits were extensively explored in TT Club’s joint work with McKinsey & Co, ‘Brave new world? – Container transport in 2043’³ which adamantly concluded that the future for the container shipping industry was digital.

Some advances towards true digitisation have been made over the last two decades, including the formation of DCSA itself, with a mission to bring efficiencies through standardised messaging amongst shipping lines. More pertinent to the electronic bill of lading (ebsl) itself, the last few years have seen a proliferation of options being brought to market, mostly embracing to greater or lesser extent the much-vaunted distributed ledger technologies, or Blockchain. It is also clear that TradeLens, the consortium founded by Maersk and IBM, also has ebsl in sight.

Storrs-Fox concludes, “The current pandemic has inevitably advanced the digital cause. It is entirely reasonable for DCSA to grasp this particular nettle, taking full advantage of the lessons learned over the last two decades. Indeed, the plethora of physical documentation and ‘chops’ for every international transport involving sea carriage remain fertile ground for further efficiencies that may yet dwarf those immediately in view.”

¹https://www.ttclub.com/news-events/coronavirus-guidance/

²https://www.bolero.net/

³https://www.ttclub.com/news-events/brave-new-world/

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 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