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TT Club focus on the cold chain

In collaboration with UK P&I Club, TT Club has published a new StopLoss publication focusing on temperature-controlled cargo

 

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TT Club focus on the cold chain

The new StopLoss series report considers the risk exposures associated with the transport of temperature-controlled cargo through the global supply chain and provides guidance as to how to avoid losses.

 

The initiative to publish a guide on the temperature controlled supply chain grew out of experience of operational issues faced by supply chain stakeholders, as well as incidents that have led to claims. Apart from input from the two Clubs, the text has been drafted with the assistance of experts involved in this specialised trade and sophisticated intermodal equipment.

 

Whilst perishable cargo is often valuable freight, it can also give rise to higher exposures and this should provide adequate incentive for extra care to be taken by all stakeholders, says the TT Club

 

As the world’s specialised reefer ship fleet continues to decline, it is estimated that containers are today utilised for up to 75% of all temperature-controlled cargo shipments. The process of correctly packing, handling and monitoring both equipment and cargo is one that will continue to demand attention.

 

Insuring this supply chain process, TT Club has considerable experience in understanding how things can go wrong. The majority of insurance claims involving perishable cargo are found to occur due to:

  • Confusion over Celsius and Fahrenheit
  • Poor communication of requirements (plus versus minus temperatures)
  • Failure to monitor or plug in the cargo transport unit throughout its journey.

"Instances of ambient cargoes, such as bread and chocolate, being mistakenly shipped in deep freeze conditions or conversely cargoes of fish and animal carcasses requiring to be shipped under deep freeze conditions below -18DegC, arriving with the consignee at +18DegC are all too common," says the TT Club.

 

"Inevitably, these simple mistakes result in a dramatic deterioration of the cargo, leading to claims of total loss and often disposal costs."

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