Written by

Nick blenkey

As major freight shippers head to the FMC with their irritations over delays at ports and rising detention and demurrage charges, shippers at the bottom of the ladder may take another approach: get away from the mainstream. cargoes arriving late and incurring increasing costs.

With supply chain congestion and widespread delays in international container trade, the challenges of abandoned cargo are expected to increase. As a risk prevention advisor and mutual insurer, TT Club has published a StopLoss document to provide practical advice on the issue to supply chain stakeholders.

“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 picking up and / or disposing of the goods and handing the container over to the appropriate carrier need guidance and the StopLoss publication from TT. Abandonment of cargo: avoiding pitfalls is designed to deliver just that.

It identifies the “red flags” that freight forwarders, logistics operators and carriers should take into account – certain products 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,” says 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. “

Download the StopLoss guide