TT Live

There is a certain mystique concerning ‘force majeure’ that seeks to set out the circumstances under which a party to a contract may cease to perform its obligations. An English Supreme Court decision considered reliance on such a clause, adopting a literal interpretation of the words agreed between the parties.

In this insightful interview, Josh Finch, Logistics Risk Manager, and Neil Dalus, a Risk Assessment Manager, delve into the complexities and challenges of safety and innovation within the global supply chain. They discuss the unique risks and operational challenges faced by ports and warehouses, emphasising the importance of safety measures and the potential consequences of safety lapses. The conversation also highlights the impact of climate change on port operations and the need for innovative solutions to adapt to these changes. Crucially, Josh and Neil explore the role of technology in enhancing port safety and the importance of industry-wide collaboration in fostering innovation. The interview provides a comprehensive overview of the current state of safety and innovation in the supply chain industry.

An interesting English court decision where a subcontractor of the bill of lading carrier was able to exercise positive rights against a shipper who had taken proceedings and secured judgment in a jurisdiction other than what was specified in the jurisdiction clause in the bill of lading.  

A highlight in TT Club’s events calendar, June witnessed the return of the Safety Village at TOC Europe in Rotterdam for the third consecutive year. Following the success of earlier events the now established and valued collaboration between TT Club, TOC and ICHCA once again built on the previous year’s success and drew wide attention from a wide range of attendees within the industry.  

Freight crime continues to present major challenges for the supply chain industry. Theft of cargo consistently ranks among the top three concerns for TT Club’s members, as evidenced by the Club’s claims data. However, analysis of claims data fails to capture the full scope of the problem, as many incidents of theft fall below policy deductible and are never reported to the Club.

Josh Finch, Logistics Risk Manager, and Andrea Gentile, Senior Claims Executive, discuss the best course of action following an incident of cargo theft or damage. While we all seek to avoid these sorts of incidents, they do happen, and when they do it is vitally important to report the incident quickly to your insurer, the police and all parties involved to allow for proper investigation. Josh and Andrea also discuss the sorts of issues that might affect your liability according to the CMR Convention, such as gross negligence or the jurisdiction in which the claim is brought. Key listening for anyone moving goods in the global supply chain.

The importance of contractual risk management, with both suppliers and customers (up and down the chain) should not be underestimated. Understanding commonly problematic contractual clauses and risk exposures is vital for those with commercial responsibility. Without care, a business may be severely exposed financially. External assistance with the review of contracts should be sought where you do not maintain a competent legal department.

The misappropriation of shipping containers is a topic that TT Club has raised previously. While there are differing causes for this, sometimes related to issues such as abandoned cargo, the industry continues to grapple with this persistent risk globally. In locations or during periods where there is high demand, shipping containers can prove an attractive and lucrative target for criminals.

When a ship allides with port infrastructure, causing damage to the berth itself or equipment located on it, it is important that the port take prompt steps to protect its interests. From experience, TT Club has develop protocols detailing actions to be taken, which seek to maximise the probability of recovering damage costs.

While the volumes of containers lost overboard at sea fluctuate year on year, typically influenced by more severe weather conditions, the challenge is a persistent one. Prevention necessarily remains high on the agenda of many stakeholders in the global supply chain; there is a universal interest in precluding such incidents.