Laurence Jones, TT Club director of global risk assessment, has highlighted the key factors that cause disruption throughout the global supply chain, reports UK trade publication IFW.
Addressing a major freight industry forum in Hong Kong, he also spoke of opportunities for operators to save costs by tightening procedures to minimise accidents, breakdowns, delays and other risks.
Based on an extensive analysis of TT Club claims valued in excess of US$120-million, Jones revealed that nearly 80% of incidents resulting in a claim were avoidable, and the vast majority involved some form of human error.
Jones said: “We found that the adoption of proven operational procedures and available safety technology could prevent many of the incidents. Relatively small investments in training and maintenance could bring significant commercial benefits through less disruption to operations, lower insurance premiums and more satisfied customers.”
When it came to claims involving the movement of freight, Jones said: “While straightforward theft accounted for 29% of operational claims, poor processes and systems were the biggest culprit.
“A whole range of substandard practices were in evidence, such as bad stowage and handling, customs fines due to incorrect or late paperwork, poor instruction on management of refrigeration equipment and wrong release of cargo. All could have been avoided with tighter procedures.”
The other major contributor to damage and cost was fire. Most building damage came from electrical faults; for lifting equipment, a lack of sufficient, regular maintenance checks was the main cause; and fire in containerised cargo was mainly due to poor stowage or misdeclaration of the goods.
