TT Club: New analysis of damage trends within the logistics chain

Recommendations of the TT Club about risk management in the maritime and logistics industry underlines the significance of optimisation measures

TT Club is the leading mutual insurer of freight transport. On the occasion of a risk management seminar for experts from the insurance and transport industry in Hamburg the TT Club presented the latest results of an analysis about damage trends and risks within the logistics chain.

The percentage figures are representative for the share of total costs of the claims for damage, in each business segment:

• Transport and logistics companies (T&L) – 97 per cent of the damages result from interruptions of operation or are maintenance damages;

• Ports and terminals (“H&T“) – 12 per cent of the damages result from weather conditions or other natural phenomena; 88 per cent are caused by interruptions of operation or are maintenance damages;

• In both segments human failure plays a major role;

• T&L – 53 per cent of the interruption of operation can be attributed to insufficient operating plants or processes. 56 per cent thereof are related to faulty handling of goods and 37 per cent to faulty documentation;

• Lack of load securing causes 62 per cent of the cases caused by insufficient packing in the T&L segment;

• H&T – 65 per cent of the operating damages are related to cranes and lifting equipment. The main causes therefore are collisions with vessels, container staples or other equipment;

• H&T – 14 per cent of the damages related to quay cranes occur during unloading of goods, often due to unbalanced loaded containers;

• T&L – 53 per cent of theft occurs during transport by sub companies;

• H&T – 57 per cent of the thefts happen on company areas;

• T&L – 24 per cent of the damages are caused by fire. 82 per cent thereof are due to fires in warehouses;

• T&L – 10 per cent of the fires affect packed goods; a major share of them are improperly declared dangerous goods;

• 16 per cent of the damaged or lost loads in temperature-controlled transport are attributable to system and process errors in the H&T segment, and 17 per cent in the T&L segment.

Based on this extensive analysis, a large number of different optimisation measures for operations in transportation and logistics companies can be derived. The TT Club recommends adherence to proven industry best practice procedures through specific safety measures and regular training for management and employees. Concrete initiatives can be, for example, the introduction / implementation of technical innovations such as an anti-collision protection for cranes and lifting equipment. The number of claims also reduces demonstrably if the compliance of operating procedures and instructions is be monitored more closely.

Thus, for example, the security policies of freight carriers and freight forwarders to be used as subcontractors should be examined more closely. Also, more importance should be attributed to the accuracy of documents, such as the declaration of dangerous goods and cargo weights, and compliance with best practice procedures in the handling and packaging of goods, e.g. in the case of perishable goods. A sound maintenance strategy and its consistent implementation in warehouses and vehicles, will be resulting in a more cost-effective asset management.

www.ttclub.com

Quelle: LogEastics
Portal: www.logistik-express.com