during Baltic Transport Week in Gdansk this week, Andrew Huxley, development director,
said it’s estimated that for every unit cost incurred in insurance claims it
can cost between eight and thirty-six times that amount in direct and indirect
uninsured losses for the business involved.
may add up from the emergency supplies required to control the situation,
operational delays, increased maintenance and training requirements after the
event but particularly reputational and commercial damage that can affect
business for some time, he added..
For the port
and terminal sector, Mr Huxley highlighted that TT Club’s own claims analysis
concludes that 88% of the cost of insured claims result from operational
inadequacies or poor maintenance; the vast majority of such shortcomings being
covering over 7,000 claims of a value in excess of US$10,000 made over the last
five years, has sought to be precise in identifying the root cause of claims,
which gives us a significant advantage in advising on preventative measures,”
overwhelming conclusion is that much can be done to reduce future claims,
improve safety and security in Baltic ports and prevent erosion to the
profitability of terminal operators in the region,” he added.
High on the
list of the most damaging according to TT Club’s research are cargo
contamination and bodily injury, not just in terms of financial loss but
particularly, if they become repetitive, to the reputation of an operator.
loss of custom and revenue can be ultimately more critical to a cargo handling
business than the loss caused by the initial incident, Mr Huxley said. Theft
from an operator’s premises (at 55% of all theft claims) and from
sub-contractors while in transit (at 30%) are said to be the two main areas of
security measures such as fencing, guards, alarms and CCTV are the most obvious
preventions”, Mr Huxley highlighted, “but crime using the internet is an
emerging risk with hackers accessing cargo release codes, changing delivery
locations and altering inventory stock levels remotely.”
As a result,
TT Club is urging ports and terminals to carry out training and review systems –
moves that often will not involve significant capital expenditure but can have
a major impact on reducing incidents and improving productivity.