Policy & Compliance
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importance of routine maintenance to ensure that drains and drain pipes are clear and undamaged, as well as indicating the prudence of carrying out periodic risk assessments to ensure that original building design parameters remain appropriate. Considering operational practices Poor operational practices also attributed to losses, with incidents of cargo temporarily stored entirely unprotected, cargo being transported on flat bed trailers/flat rack containers with insufficient coverings, and cargo being cross-stuffed during periods of rainfall. In too many instances, cargo had been unstuffed from units for the purposes of Customs inspection and laid out on the ground of the facility. Rainfall occurring whilst the goods stood unprotected awaiting inspection inevitably results in damage. The incident data also illustrate that the traditionally wetter summer months in the northern hemisphere are when cargo is at greater risk; recent extreme flooding across broad swathes of continental Europe corroborate this as an emerging (or emerged)
risk exposure. Logisticians and facility operators need to consider this proactively.
damage – regardless of fault; reputational damage can be extremely difficult to repair. An additional factor that is often overlooked is the management time consumed in handling any dispute, claim and strained customer relationship. These claims are often complex, involving multiple parties and incurring costs in inspections, surveying and defence. Anecdotally, the selection and sourcing of CTU equipment may be fraught, but anyone taking contractual responsibility has a clear interest in ensuring that freight arrives undamaged. Undertaking due diligence when appointing local agents and subcontractors and building service level agreements (SLAs) into contracts will clarify your expectations, resulting in greater certainty of outcome, including mitigating the risk of wet damage to cargo. TT Talk | Protecting cargo from wet damage (ttclub.com) www.ttclub.com/news-and-resources/news/tt- talk/2021/tt-talk---protecting-cargo-from-wet-da mage/?utm_source=newsletter&utm_medium=e mail&utm_campaign=tttalk&dm_i=2RU,7JQ7S,7 QOGK,UPS1K,1
Prudent actions While this analysis was limited to 2020 incidents, it was triggered by a deteriorating trend, potentially acting as an indicator of a possible increasing risk exposure. Fortuitous circumstances in many instances resulted in a disproportionate monetary consequence. While the outcomes are necessarily cargo specific, it is noteworthy that numerous consignments were eventually accepted by the beneficial cargo owner (BCO) with an element of re-work, reducing the potential cost of the loss. While such solutions are pragmatic for all concerned, it is clear that all actors in the supply chain need to be mindful of the risks. Further, while there may be contractual defences to wet damage claims, such as where the bill of lading is noted ‘shipper load, stow and count’, there are inevitable consequences when damage is incurred in this way. Having entrusted its cargo into your care, custody and control, the BCO might be expected to be aggrieved when part or all of its valuable cargo has suffered wet
January 2022
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