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Issue 3 2013 Road to ruin: trucking’s costly shortcuts


Mike Yarwood, claims executive at specialist insurer for the freight transport industry, the TT Club, examines some of the operational shortcuts that road hauliers sometimes take. Oſten, trying to save time or effort can have dangerous and costly consequences.


Anyone involved in road haulage - drivers, dispatchers, warehouse staff and managers - will likely be familiar with the principles of Risk Assessment and Safe Working Practices – but equally, with the potential short cuts. At the Club, though, we see the


unfortunate results in claims for property and vehicle damage, theſt and cargo loss and sadly, on occasion, bodily injury. The consequences of such actions are rarely contemplated, but with a better understanding of them, good management practices, a motivated workforce and sensible practical training, many of these claims could be reduced or eliminated. A typical scenario in which


claims arise is during trailer coupling when the driver either forgets


or more worryingly


chooses not to apply the vehicle hand brake. When the air line between the trailer and the tractor unit is attached, the air within the brake system on the trailer is released and any slight gradient on the yard surface will cause the rig to roll away


out of control. Oſten, claims investigators conclude that the driver thought that he was saving time by not applying the brake or turning the engine off whilst coupling. The costs in both financial and


in human terms can be dramatic and demonstrates the necessity of sound procedures. In a recent case, an employee had failed to apply the handbrake on his tractor unit when coupling to a trailer. He suffered fatal crush injuries to his chest as a result of attempting to re-enter his tractor unit as it rolled out of control. The employer was subsequently fined by the HSE £300,000 for breaches


under Section 2(1)


and Section 3(1) of the Health and Safety at Work Act 1974. The company should have highlighted to its employees that a 44-ton rig moving at even very slow speeds can cause devastating damage and takes a surprising amount of time to stop. There are of course


preventative measures available, such as anti-roll humps in the


Express freight services to and from Holland & Belgium


By Mike Yarwood


yard area to provide resistance and visual or audible alarms in the cab warning that the handbrake is not applied. The latter however still require the driver to follow procedures to be effective. Keeping strictly to coupling procedures is key, including effective management to provide and enforce such procedures, good training to communicate them,


and a


motivated and willing workforce to enact them. Another example of shortcuts


concerns overnight parking in inappropriate locations to save the expense of a secure truck stop. The cost of parking in England can be as high as £25 per vehicle per night – which can mount up to over £100 during a single trip. For a subcontracted driver with tight margins – who may be three or four links down the contractual chain – this is a cost which will oſten simply not be met. The result are the many cargo


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theſts from vehicles parked overnight at the roadside or other insecure parking areas. A recent TT Club case saw US$500,000 worth of metal ingots stolen from an unmanned vehicle. In certain jurisdictions driver negligence may result in the contractually responsible haulier being liable in full, but not necessarily with full or straight-forward recourse against the subcontractor. Theſts oſten involve high value items, putting the business in jeopardy and, in some instances, resulting in a declaration of insolvency in order to avoid the claim. The solutions to such issues are inherently complex.


Hauliers can avoid giving drivers cash advances by opening accounts with secure truck stops. A robust approved subcontractor selection process and the effective enforcement of contractual clauses restricting further subcontracting may also help. But in both cases the extra costs will ultimately need to be built into haulage rates and it is well-documented that these are already squeezed hard. A final example of shortcuts


is the improper stowage and securing of cargo. Claims have been seen


from warehouse


staff taking short-cuts by using the easy route when stuffing a container or trailer. The potential saving is perhaps a few minutes by not placing sufficient dunnage or strapping at the rear of the load or stowing the cargo incorrectly. Claims have included overturned vehicles both on the public highway and at ports as a result of unbalanced containers. TT Club has also received injury claims when drivers or unloading personnel have opened the rear doors to be struck by several hundred kilos of falling cargo which has shiſted in transit. The main lesson to be learnt


is the effective training of haulage and warehouse staff. This should not be limited to a classroom type exercise – practical training is essential and should clearly explain the


consequences of short-


cuts. Compliance with good practice procedures needs to be constantly monitored but, above all, staff should be correctly incentivised and motivated to do ‘the right thing’.


///INSURANCE NEWS ROUNDUP


AIRFREIGHT & EXPRESS Toll Global Forwarding has appointed Paul Chinery as air freight


director for its UK operations. He will be responsible for developing Toll’s UK airfreight business, and will manage all aspects including carrier negotiation. He will also directly control the company’s main UK airfreight operations at Harmondsworth and Feltham. Chinery, with 20 years in the airfreight industry, was lately general manager of DHL’s London airfreight and logistics operations, where he led a radical restructuring.


DHL has been accused of setting up a company-led ‘yellow union’ in Turkey, said trade unions at a global DHL Families’ Day


in London and Istanbul on 26 March. The UNI Global Union, the International Transport Workers’ Federation and Turkish unions are calling for the express giant and other multinationals engaged in similar behaviour to be held accountable and to improve workers’ rights in Turkey. They claim that Deutsche Post-DHL is violating international laws and its own corporate social responsibility standards.


Luſthansa’s high-speed cargo division time:matters has joined


forces with maritime logistics specialist Golden Cargo to offer a ship spares service. Golden Cargo has strong links with the shipping industry in Greece and other ports and maritime gateways and also provides specialised customs clearance processes and delivery services, such as on-board and shipside deliveries.


Cargolux operated its first Boeing 747-8 freighter revenue flight to Noi Bai International Airport in Hanoi on 17 March. It has also


increased its services to Hanoi to three weekly rotations and also serves Ho Chi Minh City once a week. Cargolux has also added twice-weekly services to Dallas/Fort Worth. Flights on Wednesdays are routed via Baku and Hong Kong to the US gateway and return to Luxembourg direct. The second weekly service to Dallas operates on Saturdays and is routed via Mexico, consequently allowing Cargolux to serve this destination five times a week. The return flight connects Dallas directly to Luxembourg. Cargolux is also now serving Tripoli, Libya’s capital and largest city from its Luxembourg hub. Weekly 747 nose-door equipped freighter services operate every Tuesday, continuing on to Johannesburg.


UK-based Chapman Freeborn Airchartering has signed a


strategic cooperation agreement with Luſthansa Cargo. The global aircraſt charter specialist will handle Luſthansa Cargo’s third-party chartering requirements - allowing the German airline to focus on marketing charter capacity on its own fleet of 18 McDonnell Douglas MD-11F aircraſt. Chapman Freeborn’s global network of 35 offices offers anything from helicopters and light aircraſt to the Antonov AN- 225.


Owing to an incorrect statement in a press release, we wrongly


reported Turkish carrier Pegasus’ cargo general sales agency arrangements in the UK in the last issue of FBJ (FBJ 2 2013) and on the FBJ website. The cargo GSA for the UK remains Airbridge International; the appointment of AviaCargo applies only to countries in continental Europe and Scandinavia.


New routes on the Air France-KLM-Martinair Cargo network from


April include Paris-Montevideo five days a week, a continuation of the existing service to Buenos Aires, operated by a B777-200ER. There is also a new flight between Amsterdam and Fukuoka, Japan, three times per week with the same aircraſt type.


Cindy Miller has been promoted to president of UPS Europe, the


company’s largest non-US operation. She is currently president of UPS UK, Ireland and Nordics.


UPS has become the first global express delivery company to


be wholly-owned in Vietnam, following its acquisition of the 49% interest of VN Post Express in its joint venture. The carrier has also invested in new facilities in Ba Ria, Binh Duong, Hai Duong and Bac Ninh provinces.


TNT Express has appointed Tex Gunning as CEO and as an additional member of the executive board, with effect from 1 June.


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