TT Live: Recent Episodes
TT Club
The world's leading transport and logistics insurer, TT Club, brings you the latest loss prevention advice.
While the volumes of containers lost overboard at sea fluctuate year on year, typically influenced by more severe weather conditions, the challenge is a persistent one. Prevention necessarily remains high on the agenda of many stakeholders in the global supply chain; there is a universal interest in precluding such incidents.
Given their exposed positioning, the risk of he boom of a quay crane colliding with a ship is perennial. The introduction of boom anti-collision electronic sensors for use on quay cranes has undoubtedly mitigated this operational risk. For a variety of reasons however, this type of loss continues to occur far too regularly.
With ever increasing focus on the global green house gases emitted into the atmosphere, ports, terminals, warehousing operations and logistics facilities are striving to decarbonise their operations. As one key option, they are often turning to 'green' electricity as a viable energy source to power their activities.
While images of ships, trains and trucks are emblematic of the freight industry, effective management of the supply chain entails many diverse activities. The risks inherent in each supply chain operation are impacted directly and indirectly by an array of roles and activities. One such is the effective management of stockholding and order flow, referred to here as inventory management. Failure to exercise adequate controls can have enormous consequences for security, reputation and contractual liabilities.
Risks to the global supply chain from climate change are inevitably operation dependent and geographically dynamic. In recent years, operations have been impacted by wind microbursts and heavy rainfall, through to droughts and wildfires, all seemingly occurring with increasing frequency, in unexpected locations and with increased ferocity.
As a component of a net zero emissions strategy, many logistics businesses are exploring alternative modes of transport, including less polluting modes such as rail and inland waterways. While different that other modes, security and safety hazards still exist. Thus, proactive risk mitigation to protect against loss, damage and theft is required, particularly during transhipment operations.
Predicted impacts on ports and waterways from climate change present a real risk to local, national and global economies. Disruption is increasingly being seen from extreme weather events, causing damage to infrastructure or equipment, injuries and fatalities. However, account needs to be taken of incremental changes, such as increases in air and water temperatures, rising sea levels and seasonal rainfall intensities.
Access to safe and clean drinking water to sustain life is one of the most basic human needs; exposure to contaminated water can have serious health implications. Ports play an essential role in the provision of clean drinking water to the maritime industry, contributing to the welfare of the crew and the achievement of sustainable development goals.
The phenomenon of defendants facing the prospect of excessively high awards – known as ‘nuclear verdicts’ – against them in litigation, particularly in state courts in the US, appears to be happening with increasing frequency. What can be done to counter them?
In this edition of TT Live Josh Finch, Logistics Risk Manager, sits down with Kerime Huseyin, Senior Claims Executive, to talk about maritime risk.
This episode considers General Average, salvage, loss of cargo and causes of wreck.
In this episode Mike Yarwood, Managing Director Loss Prevention and Josh Finch, Logistics Risk Manager, sat down to discuss how customer demands can impact logistics operations - posing threats that you may not immediately consider in your risk mitigation strategy.
The two consider ways in which you can make your operations safer, more secure and more sustainable.
If you would like to hear more advice on supply chain security, listen to our other episodes!
Thorough understanding of your supply chain counterparties and, specifically, the full nature of any cargo being accepted into transport is a matter central to TT’s Cargo Integrity campaign. Now there’s welcome endorsement from five US regulatory agencies.
The global logistics and transport industry is facing unprecedented challenges in achieving material carbon emissions reduction. This now-accepted necessity for humanity has highlighted that the industry is estimated to contribute approximately 20% of emissions and this is likely to continue to grow at speed.
While the container sector has experienced increase in ship size of some 1,500% over the last 50 years, there have also been significant increases for other ship types, including cruise and car carriers. Regardless of future trends, the risk elements for port operations are writ large. Combining this with changing weather patterns around the globe, safety for navigation and mooring in ports are dynamic issues.
Seven years on from the Paris Agreement, as society transitions away from the use of fossil fuels to provide the energy to sustain industrial, business and domestic life aimed at reducing global carbon emissions and tackling climate change, ports, terminals and logistics operators find themselves at an energy crossroad .
The European Union's Import Control System 2 (ICS2), a cornerstone of customs security and safety, is poised for its third release on 3 June 2024. This evolution brings significant changes and enhancements, geared towards augmenting efficiency, optimising risk management, and bolstering the protection of EU citizens and the internal market.
In this edition of TT Live Josh Finch, Logistics Risk Manager, sits down with Guillermo Cancio, Senior Claims Executive, to talk about strategic theft in North America, a growing trend we have picked up on in recent years.
Guillermo explains how organised crime organisations have been manipulating current systems that are available, to portray themselves as legitimate motor carriers, and stealing cargo from the depot right under the nose of everyone involved.
Advice is provided for those in the industry who may be struggling with strategic theft, or may want to get ahead of the curve and put appropriate risk mitigation strategy in place.
It is obvious that ports are pivotal nodes in international supply chains. However, within each setting there will be a broad range of responsibilities and relationships, some statutory or regulatory, some commercial or operational. As a result, there will be an array of terms and conditions to be considered. It remains important to consider standard trading conditions to provide a framework that helps mitigate risks, streamline processes, and foster fair and efficient trading environment.
Alerts were raised in the UK in mid-2023 about a potential serious safety risk arising from the use of Reinforced Autoclaved Aerated Concrete (RAAC). While this particular building practice appears to have been widely adopted in public structures (for example schools), it is possible that it has been applied in port or warehouse facilities in some parts of the world.
In containerised transport it is easy to assume that everything that happens to the cargo between the point when it is packed to the point it is unpacked is within the responsibility of the carrier. The reality is that this will depend on the precise terms of the contract of carriage for any period when the international carriage regimes do not specifically apply.
Security at ports and terminals is vital to protect cargo, other assets and workforce. However, the typical size and layout of a port (especially container terminals) can make monitoring difficult, since the line of sight may be obscured by cargo, buildings and plant or equipment. Similarly, the physical distance sometimes required to travel across the facility, compounded by the potential disruption to automated operations, adds to the challenges.
Hosting special events at your premises can be an effective means - particularly for ports - to engage positively with your local communities. This can create greater levels of transparency and improve common perceptions about your activities, as well as generate new income streams - all while serving to demonstrate a commitment towards social elements of an ESG policy.
Join TT Club's Managing Director Loss Prevention, Mike Yarwood, and Risk Management Director, Peregrine Storrs-Fox, as they discuss key risk areas for the transport and logistics industry.
In this edition Mike and Peregrine discuss the risks of transporting lithium batteries as well as supply chain security concerns.
Ports, terminals and similar facilities use a wide range of handling equipment assets to serve the global supply chain in the movement and storage of cargo. Given the nature of the operations, these assets regularly see significant wear and tear over their service life. Therefore, to ensure safe and efficient operations, management must be able to make informed decisions based on the condition of their assets.
Safety of trucks on the high way is a paramount concern for the transport industry, impacting not only the lives of drivers but also all road users. It is imperative that industry stakeholders prioritise and uphold stringent safety measures. This article delves into one aspect of truck safety: unplanned uncoupling.
Focus in maritime transport has been turned towards the safe transport of microplastic pellets following well-publicised incidents. While the debate rages as to how to mitigate the risks to the maritime ecosystem, those arising through the entire freight supply chain need to be recognised.
The biennial cycle of maritime dangerous goods regulations, the next Amendment of which enters mandatory application on 1 January 2024, provides a valuable opportunity to consider the trajectory of changes or improvements in safety for the freight supply chain.
In the past six months, two important appellate court decisions in the United States (in the Seventh and Eleventh circuits) have come down in favour of the freight brokerage industry on the issue of whether negligence claims against freight brokers are pre-empted by the Federal Aviation Administration Authorization Act (F4A).
An interesting challenge to established English law relating to responsibility under CMR for excise duty where goods are lost or stolen. Strongly maintaining the existing English law position, particularly post Brexit and VOCID, bring welcome certainty to the logistics industry.
Recent years, not least consequent on Brexit, have seen greater opportunities for logistics operators to provide customs related services to their customers. While potentially new and lucrative revenue streams, these services do not come without risk as TT has highlighted previously. In what precise capacity an operator acts will affect the potential liability exposure. In this edition, we take a look at risks applicable European Union wide, but specifically relating to a series of challenges identified in the UK.
The global supply chain is fraught with potential risks, so disputes are perhaps inevitable. The exposure to financial consequences can be minimised, however, by maintaining a robust risk mitigation policy. Risk mitigation extends not only to the proactive steps taken to improve operational safety and security, but also to ensuring, from the outset, that adequate contractual protections are in place.
Safety culture encompasses the shared values, beliefs, attitudes and behaviours regarding safety within an organisation. If reflects the collective commitment to creating and maintaining a safe working environment for all individuals involved. A strong safety culture goes beyond mere compliance with regulations and standards; it fosters a proactive and continuous effort to identify and mitigate risks, prioritise, safety and promote well-being.
Compliance with regulations and related requirements is a given for all businesses. Failure to comply will place your business in an extremely difficult position, should a serious incident occur. However, adherence with the law should be seen as the baseline in the context of developing a mature safety culture. Furthermore, achieving the minimum may not ultimately be good enough for your business.
For 25 years, this newsletter has communicated to the global transport industry information and guidance, highlighting a wide range of topical issues that the industry has faced. Rightly, safety has frequently been the focus of discussion. The industry will inevitably continue to face both existing and as yet unknown challenges.
The English Court of Appeal confirms the Commercial Court decision clarifying the application of time-bars in relation to deliveries made after discharged from the ship. Further appeal has been denied, so this case bring welcome certainty, albeit clearly decided on specific contractual wording and factual situation.
TT has been seeking over decades to deliver on its inherent mission to be at the heart of the global transport and logistics industry, and to make the industry safer, more secure and more sustainable.
Over the last 25 years, the global container transport industry has undergone significant economic and safety developments. As with so many aspects of life, many such developments are incremental and have faced various head-winds, such that highlights from this last quarter century may not necessarily be strong indicators of future trends.
Reaching a 300th edition is a significant milestone for any monthly publication, but much is still to be done, working together with the industry to ensure so far as is reasonably practicable that TT Club supports, highlights upcoming challenges, identifies emerging trends and considers the yet unknown risks that the industry will face.
Security is key for container terminals and ports generally. The threat horizon is vast, incorporating cargo theft, illicit trades, alongside operational safety and the prevention of terrorist attacks. Inevitably, account is needed of both land and water interfaces.
Technological advances in digitalisation of process, telematics and smart containers provide opportunities to mitigate risk for the temperature controlled supply chain. However, much still relies on human intervention - and that is the aspect that TT's claims experience suggests continues to produce losses.
Workforce fatigue is a topic that has been considered in the context of the COVID pandemic and also more generally in past editions of TT Talk. It, however, remains an important factor in keeping people safe and equipment and property protected.
There are innumerable spaces found through the global supply chain that should be considered encloses or confined, some more obvious that others. Unfortunately, these spaces claim many lives each year when ill-prepared workers enter them. For this reason, we return to this topic.
As previously highlighted, risks associated with clandestine migration around the world include impact on the freight supply chain. Criminal organisations behind this illicit activity have long realised that legitimate logistics operations present very efficient means of moving people, often undetected across key borders.
There will be a range of people entering a port or terminal facility on a sporadic or temporary basis. Managing the safety of all third-party personnel who might not be familiar with your facility should be a high priority and can present additional challenges.
The latest BSI and TT Club study of freight crime statistics highlights the direct influence of current global economic instability on criminal activity. Various geopolitical situations and the macro-economic impact of inflation around the globe have driven a series of trends through 2022 that are likely to continue in the foreseeable future. The global logistics industry need to be alert to the changing threat landscape.
An English court review of what comprises, under the Hague-Visby Rules, “loss or damage to or in connection with the goods” where the claim includes both physical damage and economic loss elements. Should limitation be calculated on the weight of the entire cargo or just what was physically lost or damaged?
Wildlife crime is a topic TT has profiled before, but remains a critical threat to biodiversity, local and national economies, national and international security, and global health. The global pandemic itself highlighted emerging infectious diseases, 60% of which are considered zoonotic, that is infectious diseases that are able to pass between animals and humans, and elevated discussions around the impact of wildlife crime and unregulated trade.
With ever increasing operational and financial pressures placed on ports and terminals, whether it be to reduce costs, increase throughput and productivity, or simply deal with demand peaks and troughs, housekeeping may be considered a fairly non-controversial topic and certainly not one that would feature on the priority list... perhaps it should.
For decades, TT Club has supported a range of organisations and initiatives aligned to the Club's mission of making the transport and logistics industry safer and more secure. Here, we profile a selection of these, providing updates and highlighting the importance of each.
The humble shipping container has existed for over 60 years, admirably facilitating global trade through intermodal supply chains with great efficiency. In recent years, however, there have been numerous innovators seeking to harness emerging capabilities and imagine boxes integrated into broad supply chain activities.
The advent or electronic bills of lading (e-bills) has been promised for around a quarter of a century. The pinch points encountered through the pandemic doubtless have catalysed developed and acceptance, together with a drive for business efficiencies. Are they now poised to play an important role in shaping the future of the transport industry?
A Singapore appeal judgment delivers some clarity on court procedural practices. However, the broader application really relates to ensuring that 'know your customer' and due diligence procedures are robust in order to provide protection where fairly usual requests for changes are made in the course of a transaction.
The requirement for employers engaged in the transport of dangerous goods by road, rail, or inland waterway to appoint a Dangerous Goods Safety Advisor (DGSA) was introduced from 1 January 2000, through EC Directive 96/35/EC. With changes afoot, is this enough?
At TT Club, we frequently emphasise the vital importance of due diligence. Since the vast majority of trade and transport transactions are conducted without the opportunity to meet your counterparty in person, rigorous processes are required to protect your own business and maintain safety and security more generally. Legislative backing in Germany is a welcome development, albeit initiated form a perspective of human rights.
While most directly involved in the freight supply chain will have an awareness of the principles of General Average, they might struggle to explain them to their customers. TT's latest StopLoss briefing provides a straightforward summary of the topic, along with essential good practice advice.
An important decision given by the English Commercial Court clarifying the application of time-bars in relation to deliveries made after discharges from the ship. While potentially subject to appeal and clearly decided on specific contractual wording, this case brings welcome certainty.
Lithium batteries was a topic that TT Talk covered in February 2022 in recognition of emerging concerns over incidents through the global supply chain. One such concern was a shift away from air transport towards maritime and road. Over the last eight months, such fears appear to have materialised with an increasing number of incidents recorded through other modes of transport.
Container operators have enjoyed a buoyant period with high levels of equipment utilisation through the last couple of years. Increased demand has, of course, been accompanied by issues arising from congestion and supply chain bottlenecks, presenting challenges in repositioning empties to be packed.
Supply chain security often focuses on cargo, but that is not alone as target for thieves. While the circumstances are typically more complex, containers and trailers are also subject to theft globally. This type of theft reveals methods that are quite distinct from cargo theft incidents, so being aware of the threat landscape is critical.
In relation to global regulatory consideration of cargo risks, the IMO’s Sub-Committee on Carriage of Cargoes and Containers (CCC) is pivotal. For the first time in three years, this UN body will be able to meet in person during September (as well as virtually). With almost 100 substantive submissions (as usual), there is much work to be done.
Global trade requires goods to circumnavigate the globe through different climatic zones, predominantly involving sea carriage. The standard general purpose freight container, while effective at protecting the cargo within, is unable to prevent the effects of ambient temperature fluctuations and the resultant condensation that this might cause in connection with certain cargo types.
Working at height remains one of the biggest causes of fatality and major injury in the workplace. The common perception is that these relate to falls from ladders or through fragile surfaces, where workers are far from the surface below. This is not always the case however.
Many companies through the global supply chain would see safety as primary importance; it is routinely discussed at Board level and embedded in culture through the organisation. Nevertheless, incidents occur. This article ‘takes the temperature’ in the UK setting.
The loss prevention function of TT Club considers all aspects of safety and security through the global supply chain. As a part of this continued mission, TT has forged collaboration with a number of industry organisations. One such long-standing collaboration is with the International Cargo Handling Coordination Association (ICHCA).
It cannot be overstated how critical it is to maintain good practice when shipping dangerous goods. 14 July 2022 sees the passing of the tenth anniversary of the fateful Atlantic crossing of the MSC Flaminia that cost the lives of three seafarers and results in extensive damage to cargo and the ship.
Letters of indemnity (LOI) are quite frequently used in the international shipping and trade practice. Despite discussions and advices around the topic, there are always concerns around the value and enforceability of such undertakings.
By way of update, the Hong Kong Appeal Court confirms the rejection of jurisdiction based solely on a ship's arrest, thus thwarting an attempt to secure potential greater ship's limitation fund. This follows the existing legal tests relating to the natural and appropriate forum for a hearing.
Commercial relationships being what they are, there will be instances where a freight forwarder or logistics operator may be presented with an opportunity to start or continue to provide services to a customer on condition that they accept full liability for the goods in question. Consider such requests carefully!
An update, following appeal, concerning the ancient principles of general average (GA). In this instance the cause was piracy, but the case involved the interfaces between differing contracts and sharing risk - both by way of insurance and GA. The English Court of Appeal decides…
Since land-based storm events frequently are most severe at the shoreline, it is unsurprising that containers become caught up in the ensuing damage. Let’s look at some of the risks.
Climate change is resulting in an increase in the severity of droughts, fires and floods in many parts of the world. Record rainfall resulting in flooding in Eastern coastal areas of Australia are a poignant example. Severity and broader distribution of windstorms can also be attributed to climate change.
Effective incorporation of standard trading conditions remains a fundamental business practice. Seeing them interpreted robustly by the courts in South Africa adds confidence.
Disruptions through the global supply chain continue to create opportunities for criminals to infiltrate and access cargo. The ongoing impacts of the COVID-19 pandemic blight economies and have profoundly altered supply chains such as just in time models. The tragic situation in Ukraine will undoubtedly further challenge global freight movement.
Many newsfeeds currently are covering mass migration arising from the war in Ukraine, following the tragic pattern from other conflict zones over years and decades. The freight supply chain, however, continues to be exploited by layers of criminal barons facilitating the unfortunate ‘underbelly’ of economic migration.
TT was pleased to be one of the endorsers of an important warehousing whitepaper on ‘storage and handling of Dangerous Goods in preparation for, or after, sea-transport’ issued by four industry organisations. This whitepaper valuably seeks to bridge any gaps between international regulations and local practices.
Following the successful inauguration of the TT Brief series of guidance documents in 2021, work continues to expand the range of resources available in this format. Targeted at the operational workforce, these documents seek to provide visually arresting, pithy messaging to support toolbox talks and good operational practices. The upcoming series explores various elements of warehousing risks.
Lithium batteries are today used to power a variety of products, including handheld devices (such as phones or cameras), through larger items such as power tools, to electric vehicles (eBikes/scooters and other vehicles). The market is exponentially increasing through consumer demand and broader energy transition globally. Understanding the risks is crucial.
Lithium as a substance, and indeed lithium batteries, until around the mid-1980’s was classified for dangerous goods regulations under Class 4.3 (Substances which, in contact with water, emit flammable gases). Experts and regulators were persuaded that smaller batteries present reduced hazards compared to their larger counterparts through the supply chain. Therefore the criteria for classification was redesigned around the weight and power outage of the cell or battery. Consequently, lithium ion batteries are classified by the equivalent energy content in watt-hours (Wh), while lithium metal/alloy batteries are classified by the weight of lithium content in grams.
An important case, not least because it went to the English Supreme Court, clarifying that acts or defaults in exercising due diligence may give rise to ‘unseaworthiness’ and the consequences of falling on the wrong side of the boundary, including in relation to general average.
Buoyed by the development of vaccines, 2021 promised a return to ‘normal’. The logistics industry has continued to operate at full capacity and beyond. The last year presented multiple challenges to every aspect of the freight industry – and there appears little respite as we head into 2022.
The rapid, widespread and now all-pervasive adoption of the standardised freight container concept certainly justifies why so little has changed in the last 50 years. Any fundamental re-engineering would need to account for the numerous interfaces with the ubiquitous box – but where might advance be possible?
The ongoing pandemic backdrop, where social distancing and remote working practices remain, has spurred the use of simulators for training operators of cargo handling equipment as an essential tool in the container terminal training armoury.
A critical transfer point of intermodal trade is the marine container terminal; immense strain encountered globally through 2021 is set to continue through 2022. Efficiently facilitating the flow of empty and laden containers to and from ships, trucks and trains is no mean feat ordinarily – and current disruptive dynamics have resulted in substantial congestion and operational stresses.
TT’s recent webinar highlighted an important insight and concern related to the current global supply chain stress, including blockages, delays and blanked sailings, and the impact that this might have on safety of particular cargoes.
The temperature controlled cargo supply chain can present operational challenges for all stakeholders due to the innate sensitivities of the cargoes transported. Clear, unambiguous and accurate communication is paramount.
An interesting Singapore case that investigates what relationship there is between contracts of sale and contracts of carriage. In the circumstances, it was impossible for holders of the bills of lading to attribute the traditional characteristics where the sale contract was silent.
Claims relating to wet damage to cargo are all too frequent. Many of these can be avoided entirely with a robust pre-loading condition checking procedure. While humidity and condensation are inevitable challenges through the supply chain, pre-existing CTU damages should be an easy check.
Everyone is well aware of weather conditions in their locality; those with responsibility for operating cargo facilities are likely to be acutely conscious of changes in local climatic conditions. Many will have seen tidal surges, wind microbursts and unprecedented rainfall become more common.
Supply chain security is a vital consideration for actors in the global supply chain, regardless of where they are operating or the nature of their contractual obligations. Security throughout the supply chain has become essential through regulation as much as meeting customer expectations in the protection of their goods and reputation.
Operators in the global supply chain can easily become victims of fraud in conducting day-to-day business. ‘Carrier fraud’ is increasingly prevalent and sophisticated. Today’s digital business environment enables criminals to create fictitious companies, intercept legitimate business transactions and obscure their fraudulent activity, reducing the likelihood of recovering freight or funds and their risk of being brought to justice.
Nomination of a ‘special interest in delivery’ for a carriage under the CMR Convention remains insufficient on its own; it is necessary for the value to be declared in the consignment note – a German interpretation.
While the series of catastrophic containership fires experienced during 2019 has, happily, not been repeated this year, there is no room for complacency. The incidence of lesser fires and emergencies persists.
In response to a series of incidents – and with the intention of protecting, restoring and ensuring safety in the local ecological environment – China enacted the Yangtze River Protection Law on 26 December 2020, which then came into force on 1 March 2021.
In the ordinary line of business, companies transact with numerous other businesses to support their activity. Whether it be for freight services, key commodities (such as fuel) or simply stationary supplies, purchases are frequent and almost exclusively these days completed electronically, giving rise to increased risk of fraud through the procurement process.
With some 90% of world trade transported by sea, coupled with the logistics challenges of Covid-19 and emerging new trends in cybercrime, the importance of cyber security in the supply chain has never been more critical.
An interesting case displaying the potential financial disparity between jurisdictions where more recent protocols – or even conventions – are not adopted or implemented, echoing a recent International Group call to increase certainty and consistency of outcome.
Improper packing of bulk grain cargo can lead to the distortion of the container, compromising structural integrity, spillage of contents, contamination, and injury to workers when opening container doors.
Calls for intrusive inspections of import and export freight to counter the risks of invasive pests in cargo and containers risk disrupting trade more severely than either COVID-19 or the Suez blockage.
In the final episode of the series, Mike Yarwood, TT's Managing Director Loss Prevention, talks once again to David Thompson of Signum Services.
As cargo is widely considered to be most at risk when it is at rest, the key topic for discussion this week is secure parking for trucks. Mike and David discuss the barriers to adoption for both drivers and truck stop providers across the globe in the fight against cargo crime.
One of the less apparent consequences of the pandemic has been a noticeable increase in drug trafficking exploiting the maritime supply chain. No entity welcomes the embarrassment, almost certain cost and potential reputational damage. What to do?
With business transactions and communication handled almost exclusively online these days, there is increased risk of fraud in the fast-paced digital environment, making due diligence more critical than ever.
In this week's episode, Mike Yarwood, Managing Director Loss Prevention, talks to David Fairnie of BSI Supply Chain Services and Solutions about the security threat posed by the insider.
While difficult to evidence, there is often suspicion in cargo theft incidents of a degree of insider involvement - sometimes it's just too much of a coincidence that the thieves knew exactly which truck to target and at what time. In this episode we look at how thieves infiltrate a company, who they might target for insider information and why this can be such an effective mode of theft. We also talk through the strategies and procedures that companies should consider to mitigate the security risks posed by the insider.
In this week's episode, Mike Yarwood, Managing Director Loss Prevention, talks to David Thompson of Signum Services about the cargo theft strategies that are most commonly used by thieves.
Strategies discussed include: round the corner theft, Romanian rollover theft, staged incidents and "blue light" crime. This episode will outline these strategies, how they work in practice and how stakeholders in the supply chain can identify the red flags and mitigate the risk of exposure.
In episode three of TT's supply chain security podcast, Mike Yarwood talks again to David Thompson about depot security and how to mitigate the risk of theft.
Depots are a critical node in supply chains all over the world. Such locations might function as an operating centre for trucks, trailers and containers, a temporary storage facility as well as a secure area to park vehicles. For those with intentions of stealing cargo, transport depots provide an excellent one stop shop opportunity of an accumulation of valuable assets.
In this weeks episode, Mike Yarwood, TT's Managing Director Loss Prevention, and David Thompson of Signum Services, drill down into the subject of fraud and how individuals and organised criminal gangs pose as legitimate companies to access and steal cargo. After all, fraud knows no geographical boundaries and is deployed by criminals the world over.
The risk of abandoned cargo is hardly new; every year the delay or failure of a consignee to collect cargo costs the industry significant time and money. Now it's costing lives.
With climate change increasingly impacting port operations and infrastructure every year, costs resulting from unpredictable storm damage are set to rise, putting port authorities and terminal operators at increasing risk.
This is the first episode in a series of six focused on supply chain security, in particular cargo theft and related crimes. In this interview series we will consider a range of risks including fraud, depot security, common theft strategies and the threat posed by the insider.
In this first session, Mike is joined by David Thompson, Signum Services (the in-house investigative arm of Thomas Miller), to provide a general overview of supply chain security and why it remains a topic of focus for TT Club and their Members. My colleague David Thompson, from Signum Services, the in-house investigative arm of Thomas Miller joins me for the discussion.
An interesting English law reminder of the reach of the ancient principles of general average (GA). In this instance the cause is piracy, but the case involved the interfaces between differing contracts and sharing risk – both by way of insurance and GA.
There are dots to be joined between freight crime and societal challenges, such as those related to narcotics, people trafficking and terrorism. It is time to take concerted action.
Stakeholders in the global freight supply chain can easily become victims of fraud - notably carrier fraud and procurement fraud – especially in today’s digital business environment that enables fraudsters to transact with reduced risk of getting caught.
While not responsible for the arrangement of cross border freight, ports and terminals in both Great Britain (GB) and the European Union (EU) are critical nodes in the international supply chain. Handling the freight at the point of export or import and in some cases becoming the border control post (BCP). The three-phase model to import changes adopted in GB means that while some changes took affect from 1 January 2021, the full range of changes will not come into force until 1 July 2021.
While devastating fires on trucks and trailers can start in several ways, some 65% are caused by issues related to the wheel and brake assembly area, according to TT Club's claims analysis data for 2019.
An interesting case from Singapore, in circumstances where no formal contractual relationship had been formed. It acts as a reminder that it is always prudent for all parties to a transaction are certain of the terms that will apply and ensure that formalities are followed.
Change to the way containerised cargo is entered into the supply chain is critical - as well as how it's loaded on board ships. When cargo of any kind is incorrectly declared and packed, it can lead to catastrophic ship fires at sea. Poor packing not only leads to tragic loss of life, but is estimated to cost the industry more than USD6 billion each year.
The importance and impact of careful drafting of contracts is exemplified in this UK Supreme Court decision. While the ruling brings clarity to English law, it represents congruence with other jurisdictions. It is most prudent to be deliberate in documenting law and jurisdiction choices in contracts.
Much of the world has experienced a year like no other and it seems that elements of life remain hung over despite the transition to 2021. As expectations run high that the world can overcome the pandemic, it might be time to consider ‘COVID-keeps’.
Environmental, social, and governance (ESG) factors are increasingly considered by businesses in the context of identifying both risks and opportunities for growth. Inevitably, as the world enters 2021, businesses will be looking back at the experiences through 2020 and reviewing systems and processes. Contingencies and resilience have in the last year proved fundamental to survival. However, the need to invest in the development of employees, particularly the next generation of employees is also critical to ensure a sustainable business model.
A critical stakeholder in the cross border movement of freight is the road haulier. The many items we as a society take for granted simply would not be available without this often-overlooked stakeholder. Virtually every item of freight at some point in the supply chain has been transported by truck. Whether over an international journey or the final mile delivery, the importance of the road haulage industry should not be underestimated.
As we head into the final weeks before the end of the Brexit transition period, this episode considers some of the challenges that the road haulage industry will face and the new systems and solutions with which they will need to interact with from 1 January 2021.
While all supply chain stakeholders will be affected by the now fast approaching end to the Brexit transition period, freight forwarders and logistics providers might need to consider the impact more than most. Attention is required not only for movements in each direction between Great Britain (GB) and the European Union (EU), but also those shipments to, from and through Northern Ireland.
As we approach the end of the Brexit transition period on 31 December 2020, there are a number of changes that will affect the import and export of goods to and from the European Union (EU).
This episode looks to address these changes will impact the operations of stakeholders in the supply chain, whether you are a driver, a haulage company, a freight forwarder, a customs intermediary or a port operator.
This week, Mike Yarwood, Managing Director Loss Prevention, talks with Geraldine Savin, Senior Claims Executive for the TT Club about the importance of incorporating standard terms and conditions (STCs).
In an industry fraught with potential risks, disputes and claims are perhaps inevitable. The exposure to claims can be minimised, however, by maintaining robust management controls - such as STCs. A business' STCs are often its primary risk management tool, used for setting out the terms under which they interacts with their customers. As we explore in this podcast however, the ability to rely on the provisions of STCs is not a given.
This week, Mike Yarwood, Managing Director Loss Prevention, talks with Kate Andrews, Underwriter for the TT Club about contract review. TT are regularly involved in contract reviews for our Members, while in our capacity as insurers, we are unable to provide legal advice to our Members, we are able to identify concerns and certain clauses that we can advise our Members to either challenge with their customer, seek legal advice on or highlight potential financial risks where insurance cover might not respond to the full extent of the risk. This episode will look at examples of how this all works in practice.
A complex conflicts of laws judgment that provides guidance on a broad range of issues beyond the innate jurisdictional dispute. This is relevant for freight forwarders and shipping agents to consider.
2020 has clearly increased awareness of microbiological risks. This has set the populations of whole nations on unaccustomed regimes. While such viral concerns continue, equal challenges are being recognised in relation to the potential for movement of visible pests through the intermodal supply chain globally.
Already on the front line and proven critical to the world’s economy, performance in the global supply chain will now be catapulted into the public gaze like never before. As initial reports emerged in November of a break-through in the development of a COVID-19 vaccines, focus immediately turned to the supply chain and distribution capable of maintaining integrity and protecting the cargo from theft.
This week, Mike Yarwood, Managing Director Loss Prevention, talks with Andrea Gentile, Senior Claims Executive for the TT Club around the topic of due diligence. Effectively a risk management tool, due diligence can help businesses mitigate the risks they face every day. As we continue to see the globalisation of trade, new opportunities are found more often than not in other parts of the world making thorough due diligence paramount in verifying legitimate third-party business.
This week, Mike Yarwood, Managing Director Loss Prevention, talks with Julien Horn, Senior Underwriter, about the risks of conducting business with unfamiliar jurisdictions. Opportunities in emerging markets can seem attractive, especially when the global economy is sluggish, however these opportunities are not without risk and thorough due diligence should be conducted before making any contractual commitments.
Mike Yarwood, Managing Director Loss Prevention is joined by Andrew Watson-Steward, Cargo Underwriter at TT Club, to discuss the differences between liability insurance and cargo insurance.
Understanding the differences between liability and cargo insurance is crucial when it come to ensuring there are no gaps in cover and no avoidable losses.
Mike Yarwood, Managing Director Loss Prevention is joined by Manos Karanikolas, Senior Claims Executive, to discuss the risks and challenges surrounding uncollected or abandoned cargo.
Uncollected cargo is a perennial challenge for freight forwarders and NVOCC operators. The issue can result in considerable costs on container demurrage, detention, storage and disposal costs. Aside from the purely monetary risks, incidents of uncollected cargo demand a significant management resource to resolve and have the potential to affect commercial relationships.
Avoiding uncollected cargo incidents can be challenging, however, management controls and mitigation strategies can assist in reducing the frequency of incidents. Early identification of the risk and being empowered to mitigate the consequences will reduce exposures. All incidents are complex and will incur costs, prevention is therefore better than managing the incident effectively once it has happened. Crucial to prevention is maintaining management procedures to identify shipments, which present a heightened risk and taking evasive action to protect your business...
This first instance judgment in relation to a charterparty dispute has the potential to spawn a range of liability exposures that could reverberate through the complex network of supply chain contracts. Most particularly the reasoning may expose ports and terminals in non-liner trades.
Whether for bulk handling or container operations, the quayside crane is critical for performing ship to shore services. This vital tool is also vulnerable to significant damage when impacted by a ship during berthing. While relatively low frequency, such incidents carry high consequence in direct damage, business disruption and potential for injury.
Analysis of TT Club's claims experience continues to highlight the vulnerability of quay cranes, other handling equipment and containers to major weather related incidents at marine terminals. Despite the large mass, it is not uncommon for these cranes to be blown along the crane rails, potentially into other equipment or toppling over, giving rise to extensive damage.
Coinciding with the international launch of ‘CTU Code – a quick guide’, the Safe Container Loading Practices and Heavy Vehicle Safety campaign was launched in Australia, following an award of government funding. While the emphasis is on road safety in Australia, the messages are consistent with those of the Cargo Integrity Group.
TT Club has been at the heart of a long-term campaign to increase awareness of good cargo packing practices, both as part of responding to incidents and through speaking at industry events. These efforts are now galvanised in the ‘Cargo Integrity Group’.
The curse of cargo theft continues to impact stakeholders in the supply chain. Analysis of incidents, increased data sharing agreements, collaborations and widespread dissemination of findings, all serve to improve understanding of the underlying risks.
Appreciating that where opportunity exists, innovation follows, TT closely monitors developments in a number of sectors. Developments in supply chain security in particular are of high interest, whether it is a new locking device, a tamperproof security seal, smart containers or initiatives to make wholesale fundamental changes to the current security landscape.
One security innovation that TT has been monitoring over the last 12 months is a product brought to market by Freightsafe and BOSCH Secure Truck Parking.
This judgment sets out a useful analysis of contracts where a court will examine the conduct of the parties and surrounding circumstances to reach a conclusion. Carriers should be alerted to the importance of knowing who they are dealing with, ensuring that the shipper on a bill of lading is correctly identified.
Apart from the recent devastating explosion in Beirut, there has been a spate of ro-ro/car carrier fires in recent months, leading to fresh calls for improvements, scrutiny and control in relation to dangerous goods (DG). Container ship fires are always in mind.
Non-declared or mis-declared cargo entered into the international supply chain, vastly increases the risk to cargo, property, the environment and most importantly the lives of all individuals moving the goods. Goods may be shipped under the provisions of limited quantities (LQ), partly taking the goods outside of the application of the relevant DG regulatory requirements, thus avoiding or attracting a lower surcharge.
The use of standardised containers for much of global trade has become second nature; the range of cargo types utilising such units continues to expand. There is significant reliance placed by the various stakeholders on the overall integrity of the concept, some explicit and some implicit.
TT Club has previously reported on incident experience whereby containers have dropped from lifting equipment during handling operations. Recurrence appears, as previously, to have nothing to do with the intrinsic quality of the corner castings. The reliability of the lifting process is critical.