With supply chain congestion and widespread delays in international container trade expected to continue, the vexatious challenges of abandoned cargoes will remain and likely increase. In its role as risk prevention advisor to industry, TT Club has published a StopLoss document to provide practical advice on the issue to supply chain stakeholders.
The potential catastrophic impact resulting from the deterioration of abandoned cargo cannot be ignored as a distant risk. However, the considerable costs resulting from demurrage, holding, storage and disposal of containers routinely result from freight which, for various reasons, is no longer required by the original consignee or consignee and is simply abandoned. at a port terminal or freight facility. This inevitably results in increased risks of safety and regulatory breaches, as well as a significant demand on management and operational resources to resolve individual cases.
“Cargo abandonment levels have always been problematic for freight forwarders, NVOCs, logistics operators and, of course, container terminals,” comments Peregrine Storrs-Fox, Director of Risk Management at TT. “The sharp increase in container demand in recent months, however, has exacerbated container ship capacity issues, port congestion and the resulting severe transit delays. These factors will do little to alleviate the practice of interest on freight, in the event of a loss of market for the goods or bankruptcy, simply relinquishing ownership of the shipments. “
Those responsible for removing and / or disposing of goods and handing the container over to the appropriate carrier need guidance and TT’s StopLoss publication Cargo Abandonment: Avoiding the Pitfalls is designed to achieve this. It identifies the “red flags” that freight forwarders, logistics operators and carriers need to take into account – certain goods such as rubbish, waste, materials for recycling and personal effects – of previously unknown shippers, especially individuals. rather than businesses. Additionally, once the cargo is defined as abandoned, the StopLoss describes the role of enforcement agencies and the responsibilities of others involved in the supply chain.
“Above all, the value of our advice lies in the mitigation of risks associated with quitting and recommended actions outlined in methodical steps and a ten-point checklist,” concludes Storrs-Fox. “There needs to be a better understanding of why cargo is being abandoned and how it is managed in order to limit the growth of a serious trend leading to increased safety and cost ramifications. “
Abandonment of cargo: Avoiding pitfalls can be downloaded HERE
On September 30, 2021, Transport Events will host a TT Club sponsored webinar on Cargo Abandonment. Those interested in learning more about this relevant topic from a selection of industry experts are welcome to register here.
Speakers will include: Peregrine Storrs-Fox, Director of Risk Management, TT Club; Richard Brough OBE, Director, Brough Marine; Jens Roemer, vice-president and chairman of the working group on maritime transport, FIATA; Bob Ahlborn, Vice President – Line Operations, National Cargo Bureau; and Uffe Ernst-Frederiksen, Vice-President, IVODGA.
News from the sea, September 22