Thomas Miller triggered its Crisis Management Team (CMT)  in response the Coronavirus outbreak in China on 23 January. Since then the virus has spread to all continents and the situation monitored and managed through daily calls of the CMT. The health and security of our employees and clients is of vital importance to Thomas Miller. We are doing everything we can to ensure we minimise the potential impact on our employees and business operations worldwide, in accordance with Government advice and guidance. 

Cargo theft continues to blight the international supply chain, giving rise to disruption, unpredictability and widespread financial exposures. Whilst there are obvious commercial impacts, the loss of cargo and ensuing insurance claims for example, studies continue to develop a greater understanding of the overall impact of cargo theft, both economic and societal. It is widely believed that organised criminal gangs are often the orchestrators of cargo theft and that the proceeds inevitably support other illicit trades.  

This case highlights the importance of careful drafting in order to communicate terms and conditions to customers and suppliers and to ensure that they are sufficiently wide to cover extra-contractual services where necessary and appropriate.

The logistics world is fraught with potential risks, and claims are perhaps inevitable. The exposure to such claims can be minimised, however, by maintaining a robust risk mitigation policy. Risk mitigation extends not only to the physical steps taken to improve operational safety and security, but also to ensuring, from the outset, that adequate contractual protections are in place.

The second annual report on cargo theft worldwide, issued today by leading international transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI confirms the overwhelming targeting of cargo trucks compared to all other modalities.

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

The consequences of clandestine migration are more than geo-political. In the freight supply chain the impacts include the activities of governmental border enforcement agencies, as well as the risks of contamination and damage to goods. Care is required for all the risks involved.

This briefing considers the potential impact on ocean freight and supply chain management activities of freight forwarders and logistics operators should steps to curtail the spread of coronavirus continue to disrupt the movement of goods. While key concerns will distil to delays and potentially cargo deterioration, the following provides some guidance on the potential risks to freight operators and how to mitigate them. 

Insurance provider, TT Club, is advising on the potential unforeseen exposures that may accrue in the face of the coronavirus outbreak - on top of the challenges already being experienced moving freight to and from China. 

On 31 December 2019, the WHO China Country Office was informed of cases of pneumonia of unknown cause detected in Wuhan City, Hubei Province of China. A novel coronavirus was identified as the causative virus on 7 January 2020.

The announcement of another fire on board a container ship early in January 2020 – the first publicised this year – reinforce the vital importance of increasing rigour around the transport of dangerous goods (and not just by sea).

The importance of implementing robust due diligence procedures, incorporating all aspects of your business, cannot be underestimated as key risk mitigation. If something appears too good to be true, then it probably is…