Effective communications are the lifeblood of every relationship, whether personal or corporate. In the global supply chain, this inevitably extends to every counterparty, including those with differing interests, cultures, languages and time zones. COVID-19 has made life exponentially more complex.
As consumer demand and manufacturing production slows in many parts of the world, cargo, either in containers or stripped from transport units, is building up in warehouses, port terminals and inland depots. International freight and logistics insurer, TT Club warns of the additional risk this is bringing operators.
In these extraordinary times, on behalf of the Chairman, the Board of Directors and the management team we wish all Members and their brokers, and their families and friends good health through this pandemic crisis. This is a very difficult time for all Club Members and the Club will do what it can to assist as you strive to manage your businesses.
TT Talk - COVID-19: heightened risk of fraud
Stakeholders in the international supply chain can find themselves unwittingly exposed to many types of fraud during the normal course of business. Connectedness provides fraudsters greater ease to transact and a lower risk of apprehension. The current pandemic-induced dislocation and additional logistics challenges simply increase the risks. Be alert!
UN portable tanks (tank containers) have been used in the international supply chain to distribute bulk cargoes for many years. Having such a deep heritage in the insurance of the maritime containers, naturally TT Club has intimate understanding of the tank container sector, with a current insurable interest in around 53% of the global tank container fleet.
The latest coronavirus outbreak in 2019 has had a wide and profound impact on citizens of a growing number of countries across the globe. The effects of the outbreak has witnessed disruption to many normal business operations in many countries. Even short periods of interruption to the manufacturing industry will inevitably give rise to various challenges through the international supply chain.
As of Wednesday 18 March all our UK and Mainland European offices, Hong Kong and Shanghai, and US-based offices will be working remotely. We will still be providing the same high levels of service our members have come to expect from the TT Club.
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.
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.
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.