Policy & Compliance
1 How can you mitigate these risks?
KNOW YOUR CUSTOMER • Vet shippers and consignees carefully • Verify their identity and resources, and cross-check information to ensure validity • Confirm the authority of the individuals you are communicating with • Be wary of unexpected approaches from unknown service providers • Be prepared to decline business which looks suspicious • If deemed high risk request security from the shipper (cash deposit/LOI)
ASSESS CARGO ABANDONMENT RISK • Develop management controls to identify and monitor shipments with high abandonment risk • Beware low-value cargoes, such as waste, scrap and goods for recycling • Closely monitor high-value or perishable goods • Watch out for countries with known restrictions on the import of certain cargoes • Take extra care with shipments to high-risk jurisdictions • Check sales contracts have been finalised, not ‘shipped to the order of…’
2
COMMUNICATE CLEARLY • Ensure contract terms and conditions clearly define the responsibilities of all parties • Specify timeframes for collection and consequences of non-compliance • Maintain regular contact with consignees and notify them promptly of cargo arrival • If collection delayed, issue a formal collection demand to both the shipper and consignee • The timing for communications to commence will be dependent on the nature and value of the cargo • Repeat collection demand within 45 days • Send final collection demand within 90 days and warn of cargo sale or disposal at their cost • Ensure all communications are recorded
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4
ACT QUICKLY • If cargo remains unclaimed after the period specified under local regulations or port tariffs, immediately notify your liability insurer and relevant authorities • Urgently seek lower-cost storage options for the cargo to minimise container demurrage and detention costs. Consult with a lawyer before destuffing a container • If shipper and consignee instructs the sale or disposal, quickly get letter of abandonment and letter of indemnity signed by both • Engage legal counsel and local agents to initiate sale or disposal procedures without delay • Promptly seek to recover any outstanding costs from the shipper and/or consignee
RED FLAGS • A booking from a new customer wanting to ship waste products • Shipments to countries with known restrictions on the import of certain cargoes • Cargoes that are ‘shipped to the order of…’ • A missed event in the expected process after arrival • Cargoes coming towards the end of their ‘free’ period in the arrival port
For more information Please contact us at riskmanagement@ttclub.com or visit us at ttclub.com
September 2025 | 21
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