14


NEWS / INSURANCE Are you properly covered?


Your freight forwarder’s liability cover might not match your firm’s activities, says Peter Lole & Co’s Rodd Bankier.


It’s sometimes said that there are as many recipes for coq au vin as there are Frenchwomen. You might also say that the same applies to the description of a freight forwarder. The term can relate to any size of operation, from one person in a room at Heathrow Airport to a multinational transport company operating huge fleets of trucks and chartering ships and aircraft for the carriage of their customers’ goods. FIATA describes them as the ’architects of transport’ but however you characterise them, it should be important to each that he has the correct insurance cover for all the work the company undertakes. You can accuse me of prejudice, but I feel strongly that the forwarder’s first step should be to speak to an insurance broker who specialises in freight liability business. During this conversation, the forwarder should mention all the different types of work his


company undertakes on behalf of its customers. Equally, if you decide to offer customers a new kind of service during the course of the policy, please check with your broker that you have cover in place for that activity. Many of the services offered by freight forwarders are exactly what would be expected by insurers and will be covered under almost any freight liability policy designed for them. But there are other kinds of work which would not be and, in some cases, special cover may be needed.


Underwriters expect a forwarder to arrange transport and carriage for his customer, check and prepare export and import documentation, customs clearance and so on, and it will not be necessary to dwell on these matters too long in your conversation with your friendly broker. However, you should tell him, or her, if you issue House (or FIATA) Bills of Lading, House Air Waybills


or consignment


notes - especially those involving CMR movements. You should also mention if you own or operate commercial vehicles and under what conditions you carry your customers’


goods. The same


applies to trailers (owned or hired-in) which can be covered either on your freight liability policy or, if you own tractor units


as well, on your motor policy. The services outlined above are pretty much what can be expected of any freight forwarder in the land but forwarders are inventive people and always devising new ways to assist their customers


by providing them


with a one stop, complete freight service, so it might be useful to refer to some of the activities that must be brought to your broker’s attention. • Chartering of ships or aircraft, or space therein. Cover for this activity is excluded from most freight liability policies owing to the fact that many charter- parties impose on charterers a duty of care to shipowners as well as cargo owners. Your trading conditions will not apply and, generally, a separate policy must be arranged.


• NVOCC (non-vessel owning common carrier). If you hold yourself out as a NVOCC, underwriters will want to see a copy of the bill of lading you issue and impose special conditions but, generally, your policy can be extended to cover this work.


• Ship’s agency. Underwriters will want to know what work you undertake and see a copy of the agency agreement, but there should be no problem in extending your policy, subject


to conditions.


• Stevedoring. This isn’t a service underwriters would expect a forwarder to offer and raises additional problems with regard to personal injury which non-marine insurers may be reluctant to cover. You really need another policy.


• Terminal Operations. Again, you need a different kind of policy but, as with stevedoring, your broker should be able to assist.


• Container Leasing. Your underwriters may want to see the leasing agreement to ensure you are not exposed to excessive responsibilities and, generally, you must insure the containers in your care but, often, your freight liability policy can be extended to provide for this.


• Container repositioning. It depends what the forwarder is contracted to do but, generally, it should not be a problem to extend your freight liability policy.


• In summary, before accepting a ‘standard’


freight liability


policy, make sure it covers your firm’s unique requirements. No one knows your business as well as you do, so tell your broker what you need.


Rodd Bankier is a director of specialist insurance broker Peter Lole & Co Ltd


www.peter-lole.co.uk


ISSUE 2 2011


ROUND-UP: FORWARDING & LOGISTICS


Games Ambassadors Ben Ainslie, Denise Lewis and Steve Rider opened UPS’s 2012 Olympic Games logistics centre in Stevenage on 29 March. As the Official Logistics and Express Delivery Supporter of the London 2012 Olympic and Paralympic Games, UPS will be responsible for delivering 30 million items, including 1 million pieces of sporting equipment through the 331,000sq ft warehouse and distribution facility. A second UPS facility in Tilbury will open in the next two months.


Dinalog (The Dutch Institute for Advanced Logistics) is developing a campus for the Supply Chain Industry in Breda, between Antwerp and Rotterdam. Managing director Wim Bens told the inaugural meeting of the Benelux Group of the Chartered Institute of Logistics and Transport, also in Breda, that the site aims to promote logistics innovation and to attract academics, engineers, logistics service providers and consultants. The aim


is to host start-ups, 4PLs and logistics research.


Kühne Logistics University will host an international summer school in Logistics & Supply Chain Management between 22 August and 2 September 2011. The executive education program comprises eight modules - all taught in English - to give participants a comprehensive understanding of logistics and supply chain processes and is aimed at executives working in logistics, commerce and industry or the service industries. For application forms and further details visit www.the-klu.org or


email professional@the-klu.org


Toll Group has acquired Dubai-based sea-air specialist SAT Albatros. SAT will now form part of Toll’s global forwarding division, and joins Dubai-based Logistic Distribution System, acquired by Toll in 2009. SAT has strong links in Europe and in particular Germany, which accounts for most of its volume at destination. There is no connection between SAT Albatros and S.A.T. Sea Air Transport from Düsseldorf.


Kuehne + Nagel has has signed a deal to acquire 75% of the shares of New Zealand-based reefer operator, Cooltainer. It operates a dedicated branch network throughout Australia and New Zealand for temperature sensitive cargo in the South Pacific region, including niche markets such as the Trans-Tasman and Pacific Islands trades.


Drinks logistics specialist JF Hillebrand has acquired Italy’s Ferry International SRL. Based in Milan with 15 staff, the company provides multimodal door-to-door logistics services to exporters and importers throughout the country.


Panalpina has opened an office in Chonqging, western China. It offers overland transportation, airfreight and ocean freight via the Yangtze River, along with its new rail service to Russia and Europe.


Logistics provider Dachser has set up a joint venture in South Africa with local private firm Jonen Freight. The new company employs 133 staff and offers services in Johannesburg, Cape Town and Durban. Dachser has a majority shareholding in the joint undertaking which will initially continue to operate within the Dachser group as Jonen Freight.


AP Moller-Maersk’s forwarding arm Damco has appointed Paul Gallagher as chief executive officer in the UK & Ireland. He brings almost 30 years’ experience, starting with US Lines in 1982 and has held a number of senior positions in Damco including 16 years as the managing director of Damco Sea & Air and then COO for Damco in UK & Ireland.


ROUND-UP: CUSTOMS & TRADE


A European Union-backed plan to grant Pakistan additional trade preferences to help the country recover from last summer’s floods seems set to be blocked at the World Trade Organisation. Under the scheme, the European Commission last October suggested that Pakistan be granted a duty waiver on 67 products. However, the WTO delayed a vote on the issue on 31 January in the face of opposition from other textile- producing countries.


The World Customs Organisation has signed a memorandum of understanding with the Economic Community Of West African States (ECOWAS) to enhance the capacity of Customs administrations in the region. The two organizations agreed to actively promote the modernization of customs administrations through the adoption and implementation of WCO instruments and programmes and to set up regular dialogue between the two parties and to coordinate training activities.


The United Arab Emirates is due to implement the ATA Carnet System from 1 April, bringing to 69 the number of countries using the system. It reduces paperwork and simplifies customs formalities for exhibition goods and similar cargo that is to be re-exported after use. It allows for the duty-free and tax-free temporary import of goods for up to one year.


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