FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures •...
Transcript of FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures •...
![Page 1: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/1.jpg)
established expertise
FIATA ABLM
10th October 2012
Overview of Loss Prevention Issues 2012
Helen Arabanos
TT Club
![Page 2: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/2.jpg)
established expertise
Reducing accidents and
insurance claims in the
supply chain
![Page 3: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/3.jpg)
established expertise
Operational Error
(US$76m)
63%
Poor Maintenance
(US$40m)
33%
Other (US$5m)
4%
Operational error accounts for 63% of the cost of claims in the supply chain
(includes theft)
Total Claims
![Page 4: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/4.jpg)
established expertise
Systems & Processes
(US$33.4m)
45%
Theft (US$20.8m)
28%
The greatest cause of claims comes from poor systems and processes
Operational Errors
![Page 5: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/5.jpg)
established expertise
Top 4 most frequent causes of systems and processes going wrong are:
Bad Stowage & Handling
35% of claims
Customs
17% of claims
Clerical Errors
14% of claims
Contractual Issues
13% of claims
Systems and Processes
![Page 6: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/6.jpg)
established expertise
Systems & Processes
(US$33.4m)
45%
Theft (US$20.8m)
28%
The second highest cause of claims within operational error is theft
Operational Errors
![Page 7: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/7.jpg)
established expertise
62% of all theft claims are
a result of theft in transit
87% of these are claims are where a
Member has used a Contractor
Only 13% of claims for theft in transit
occur where the vehicle is operated by
the Member
Theft
![Page 8: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/8.jpg)
established expertise
Theft
![Page 9: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/9.jpg)
established expertise
Contractual procedures
• Have a robust approved subcontractor selection policy
• When requesting insurance documents always ensure the original certificates are posted to you and always verify the legitimacy of the policy with the insurer.
• If using internet clearing sites always follow the website’s recommendations for safe usage and loss prevention
• Take extra care should the previous contact at your established subcontractor suddenly change
Physical procedures
• Send trucks in convoy
• Only stop at approved truck stops
• Do not leave trucks unattended
• Check locks and seals
• Alter routes for regular deliveries
• Tracking devices
• Share bad experiences
Minimising transit thefts
![Page 10: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/10.jpg)
established expertise
Know your shipper/co-loader
• Hanjin Pennsylvania - 2002
Chinese shipper declared fireworks
as childrens’ toys.
• Dangerous goods mis-declared – eg. 2 incidents in 2012 of airfreighted cargo
declared as “mould” and “metal iron” were in fact liquid mercury, poorly packed in
inadequate cylinders, which leaked all over the airplane. 2 airplanes out of action.
Chinese shipper. Freight Forwarder left “holding the baby”. Multi-million USD claims.
• MSC Flaminia – 2012 - cause still under investigation, but currently thought to be
cargo related
![Page 11: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/11.jpg)
established expertise
What we tell our Members and brokers…
Know your contractor • What’s the contractor’s company registration
number?
• How many years have they been established?
• Where are they registered?
• Are they affiliated to an Industry Trade Body?
• What are their Standard Terms & Conditions?
Road haulage - Theft
![Page 12: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/12.jpg)
established expertise
• Is it worth the cost and time to do things safely and correctly?
Definitely YES
• The results are: • Injury reductions
• Cost savings
• Increase in efficiency
• Productivity increase
• More efficient deployment of employees
• Improved customer relations
• Reduced insurance claims and premiums
All of which can be achieved through………
Summary
![Page 13: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/13.jpg)
established expertise
Training: • Continuous safety awareness
• Container stuffing and securing
• Mandatory dangerous goods training for all shore side staff
Procedures: • Systems & processes procedures
• Cargo stowage and handling
• Clerical Error
• Customs
• Contractual issues
• Theft prevention • Contractor management
• Security in transit
Loss Prevention Focus
![Page 14: FIATA ABLM 10th October 2012 · 2012-11-27 · established expertise Contractual procedures • Have a robust approved subcontractor selection policy • When requesting insurance](https://reader034.fdocuments.in/reader034/viewer/2022050600/5fa7a36fca2484426905aecd/html5/thumbnails/14.jpg)
established expertise
Specialist insurance products and services packaged for the
international transport and logistics industry