FIATA 8th October 2012 Overview of Loss Prevention Issues 2012 Helen Arabanos TT Club

1. FIATA 8th October 2012Overview of Loss Prevention Issues 2012Helen ArabanosTT Club

2. Reducing accidents and insurance claims in the supply chain

3. Total Claims Operational error accounts for 63% of the cost of claims in the supply chain (includes theft)

4. Operational Errors The greatest cause of claims comes from poor systems and processes

5. Systems and Processes Top 4 most frequent causes of systems and processes going wrongare: Bad Stowage & Handling 35% of claims Customs 17% of claims Clerical Errors 14% of claims Contractual Issues 13% of claims

6. Operational Errors The second highest cause of claims within operational error is theft

7. Theft 62% of all theft claims are a result oftheft 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

8. Theft

9. Minimising transit thefts 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

10. 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

11. Road haulage - Theft 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?

12. 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

13. 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

14. Specialist insurance products and services packaged for the international transport and logistics industry