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Issue 3 2020 - Freight Business Journal Insurance


Virus fraud could be contagious


International freight and logistics specialist TT Club’s risk management director, Peregrine Storrs-Fox urges increased vigilance to combat opportunistic fraudsters in this time of crisis.


Anyone can fi nd themselves unwittingly exposed to fraud during the normal course of business. Connectedness makes it easier for fraudsters to operate without getting caught. But the current


pandemic-induced


dislocation and additional logistics challenges signifi cantly increase the risks. Today’s digital business provides


environment


smokescreens that allow fraudsters to minimise their risk whilst being selective in their approach. Victims are typically tracked over time with the fraudster


striking when they


are at their most vulnerable. However, fraudsters are already exploiting the current COVID-19 situation and users are highly exposed. Stakeholders should not underestimate how lucrative fraud is; using sophisticated, low- risk tactics, fraudsters can easily steal large sums of money or cargo. Stakeholders fi nd themselves


short of manpower through mandated isolation or illness, with some forced to rely more on temporary workers, with others having to work remotely but while handling unusual and unpredictable volumes. These


are perfect conditions for fraud, as ordinary business processes are disrupted and under strain. Risks are arguably heightened further since the focus of the authorities is elsewhere. Reduced legitimate work may also induce more to try their hand at fraud. Mandate fraud is a specifi c


cyber-enabled fraud that diverts money to a bank account operated


by the fraudster.


Payment fraud is becoming one of the most prolifi c deceptions targeting business, usually targeting


accounts staff and


employing spoofed sender email addresses. Whilst most businesses are aware of this type of fraud, where there are fewer members of staff in place or remote working has been widely adopted, there is more risk of established procedures not being followed. Chief executive fraud


involves an internal email that appears to be from a senior member of staff within a company, such as the chief executive. The email will ask the recipient (typically in the accounts department) to make a payment or transfer funds for an ongoing or new business


transaction. Oſt en the payment request is marked urgent and pressure put on the recipient to make the payment as soon as possible. The payment will, of course, be made to an account under the fraudster’s control. The transaction may take time to come to light, and funds will almost certainly have been transferred through a series of other bank accounts and lost forever. Round the corner theſt :


Here, fraudsters pose as the consignee. They meet a driver on the approach to the legitimate delivery address, diverting the cargo to another location, where it is unloaded and stolen. In the current


situation, where non-


essential goods may remain in storage and result in warehouses being at capacity, there may be genuine cases where cargo must be re-directed. Stakeholders need to be aware of this increased risk and educate drivers to be extra vigilant. Requesting identifi cation and maintaining secure communication channels to verify such instructions would be prudent. Communication with customers and consignees is particularly important to understand their availability and hours of operation, which may have changed. Cargo theſt opportunities are


increased by blockages at ports, resulting in spikes in cargo being delivered into the hinterland. This will put additional pressure on drivers as well as the local infrastructure, such as secure truck stops. Where countries remain in lockdown, the truck stops themselves may not be operating normally, making it even more


New man at the helm at Dachser Ireland


John van den Berg has taken over as managing director of Dachser Ireland, succeeding Albert Johnston, who is retiring. He began his Dachser career


in Rotterdam in 2006, and played a pivotal role during the fi nal integration and rebranding stages as Johnston Logistics became Dachser Ireland aſt er


acquisition in Ireland


Pan-European freight firm Rhenus has acquired Irish chemical logistics firm, C+G Logistics. Headquartered in Mulhuddart, Dublin, the


chemical storage and


transportation specialist has more than 40 years’ experience in handling raw materials, ingredients and chemicals. It provides 5,000sq m of dedicated hazardous


goods storage. Managing director at Rhenus


Logistics Ireland, Declan Sinnott, said: “The acquisition of C+G Logistics is a milestone in the ongoing development of Rhenus in Ireland, and we’re delighted to expand the scope of services we can offer our clients, both existing and new.” General Manager


of C+G, Patrick Wogan, commented: Rhenus makes


the German company acquired the Irish logistics provider in 2017. He joined the Irish country organisation in July 2019. Dachser Ireland employs 175


“Joining the Rhenus family is an important step for our business, opening up new service provisions


important for drivers to carefully plan in advance where they are going to park. It also provides more opportunities for fraudulent carriers to infi ltrate the legitimate supply chain where volumes are at their peak and stakeholders seek alternatives. Due diligence principles


should remain fi rmly in place. Commodities considered high risk have quickly changed during this period. Whilst food, drink and electronics remain attractive, otherwise innocuous items such as personal protective equipment and


other short-term high-


demand, low-supply products have gained an increased value to the fraudster. Whilst there is expected to be a lull in cargo theſt whilst quarantine restrictions remain in place, the resulting economic strain thereaſt er is likely to lead to more theſt s. Procurement fraud: Detecting


a fi ctitious company and business transaction in a period of high demand and activity is more challenging, particularly when operating with a skeleton or


remote workforce. Those


conducting this type of fraud will oſt en target individuals they have been monitoring and put them under pressure to pay an invoice immediately, citing negative eff ects on credit ratings and threatening legal action in the event of non- payment. TT Club urges everyone to


maintain as much normal rigour as possible in their internal systems and processes, safety practices and physical and cyber security. Standard business ‘hygiene’ is as important as health hygiene in the current situation.


people in Cork, Limerick and at its head offi ce near Dublin. In addition to groupage, it specialises in dangerous goods and warehousing in the chemical, pharmaceutical, hardware, plastics and packaging industries.


for our client base. We are delighted to be starting 2020 with the support of a global organisation behind us.”


News Roundup Forwarding & Logistics


Davies Turner has signed an exclusive partnership with Freiburg, Germany-based, Streck Transport. It beat off strong competition other UK forwarders to secure the cooperation agreement with Streck, which had been leſt without a British partner following the ending of its relationship with its former associate, Geodis. The two companies now operate daily overland trailer services between Baden-Württemberg in South West Germany and the UK, initially direct into Davies Turner’s regional distribution hubs at Dartford and Coleshill. Streck Transport is a privately-owned forwarding and logistics, employing 1,200 staff and with international trailer services primarily focussed on the south west of the country.


The CLECAT European forwarding association has welcomed the European Commission’s speedy release of a guidance document, which aims to ensure that essential transport fl ows keep moving during the current COVID-19 crisis. CLECAT stresses that continued and uninterrupted air cargo services are of essential strategic importance for the European Union and its economy, as well as the public health.


The ITT Hub and the co-located Freight Transport Association Future Logistics Conference, due to take place in Farnborough on 13-14 May has postponed until 12-13 May 2021. Organisers Binswood Media said the decision had been taken as early as possible in response to requests from partners and major exhibitors, whose evolving emergency measures to deal with the corona virus threat will preclude them from attending. Making the announcement at this stage will also enable stakeholders to avoid incurring additional costs in preparation for the show. (www.itthub.co.uk) Organisers have also decided to cancel this year’s Microlise Transport Conference. It has been rescheduled for Wednesday 19 May 2021.


The Freight Transport Association has set up a free COVID-19 web portal at www.ſt a.co.uk/coronavirus. It gives an overview of essential information and advice for the industry, the support provided by FTA, and the business group’s demands of government at this critical time. In addition to links to important government and industry advice, the portal will include the latest information from FTA’s Coronavirus Logistics Impact Survey, which will provide an ongoing snapshot of confi dence across the sector and highlight industry concerns.


Talent in Logistics has launched a jobs board in partnership with Smart recruit online to help promote current recruitment opportunities during the COVID-19 crisis. The board is aimed at employers, recruitment agencies and those in search of current employment opportunities.www.talentinlogistics.co.uk/jobs/.


CEVA Logistics has been appointed by General Motors as its 4PL to manage its ventilator production supply chain under its contract with the US Department of Health. CEVA will be responsible for delivering hundreds of parts used to make Ventec Life Systems V+Pro critical care ventilator at General Motors’ Kokomo, Indiana factory.


SEKO Logistics MedTec has established a Rapid Response Team to assist and maintain medical care to the patient population across the US and globally. The current focus is on New York City and surrounding metro area and the logistics provider is closely monitoring increased demand for ‘surge capacity’ to support urgent shipments of medical diagnostic, clinic and hospital equipment and supplies.


The Chartered Institute of Logistics and Transport (CILT) has set up a database for organisations in urgent need of supply chain resources as part of its response to the coronavirus crisis. It matches organisations together, so that those who have capacity can help those organisations in urgent need, such as the NHS and the grocery retail sector, by making available staff , vehicles, warehouse space and expertise to support the supply chain. More than 500 individuals and organisations have responded to the Institute’s initial call to action so far, and the information provided is being uploaded into the database. https://ciltuk.org.uk/covidresponse


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