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Issue 4 2020 - Freight Business Journal Insurance Running on empty


They may be designated essential services, but many freight and logistics fi rms have had to change their work practices, including leaving some premises unoccupied for an extended, indefi nite period. Peregrine Storrs-Fox of TT Club considers the risks.


Many fi rms are having to carry on business while protecting their workforce. Some have been able to use remote working, where this is possible and the infrastructure supports it. This depends not only on computer equipment and robust communications, but also the physical environment - oſt en peoples’ homes. Some have had to take more painful business decisions, where infrastructure is not appropriate or trade has fallen away. In either situation, premises containing assets, equipment and cargo may be leſt unoccupied. Care


and good is needed when


judgement considering


vacating premises to ensure that the business is protected, property preserved and associated liability exposures mitigated. Various contractual or


leasehold arrangements underpin operational premises and warehouse operations. Some will be owned outright, many will be leased from a landlord and many more will be multi-tenure facilities, with a number of businesses operating from the same location. Such detailed circumstances can be complex when temporarily vacating a premises; for instance, in a multi-tenure facility, one business might be categorised as ‘key’ and therefore remain


operational, while others are not and forced to close. This may lead to challenges


over insurance, safety, security and utilities, amongst others. Where multi-tenure facilities are concerned, communication and collaboration with fellow tenants will be critical. Once the contractual position is understood, there will likely be the need to notify landlords and other tenants when vacating a property for any extended period. As well as contractual and


leasehold obligations, stakeholders should consider all insurance policies applicable to the premises. Some


may include warranties


regarding periods of vacancy that perhaps involve notifying insurers and recording regular inspections of the premises. This could also prove a timely opportunity to verify that the total value of cargo held does not exceed the level declared under any applicable cargo or warehouse insurance policy. Warranty conditions may also


involve routine checks on fi re- fi ghting equipment and sprinkler


Miniver is a bicycle ambulance rider with the MAMaZ Against Malaria programme, Zambia


In times like these, functioning supply chains are more important than ever.


We have never been prouder to be a part of the transport and logistics industry. From keeping


supermarket shelves stocked to delivering vital medicines, the industry’s response to meet the demands of the Covid-19 pandemic has been truly incredible.


Transaid is also rising to the challenge by helping rural Zambian communities like Miniver’s tackle Covid-19.


Join our journey: transaid.org Registered charity number 1072105. Patron: HRH The Princess Royal.


systems, portable appliance testing and drain clearing. It is important to ensure that ongoing maintenance programmes are considered when buildings are empty. Debris in drains, pipes and guttering for example may continue to build up, regardless of activity, leading to water ingress or fl ooding. Where


independent


contractors have to access the property for inspections or maintenance,


safety must be


considered. Supervision will typically be required and the necessary time allocated for site inductions and due diligence to ensure that any contractor is adequately trained. These risks are heightened where contractors are required to work alone, possibly with hazardous materials, at height, in enclosed spaces or when undertaking hot works. Established permit to work systems should be carefully monitored during such periods. Fire risk is higher where


property is unoccupied for an extended period. Before vacating it would be prudent to check the maintenance records of


electrical systems,


fi re alarms, sprinkler and fi re- fi ghting equipment


to ensure


that, as far as is reasonably practicable, all are in good order. If the fi re alarm is linked directly to the local emergency services it is advisable to check that the system remains operable and discuss the vacant period with them. Security should also be


carefully considered. What volume of cargo, commercially sensitive data and cash are kept on site? Is it possible to relocate high value items temporarily? Are there eff ective deterrents


in place such as a perimeter fence, good lighting, signage and visible CCTV coverage and are they in good working order, fi t for purpose and, where applicable, monitored? Does the CCTV equipment require regular maintenance to ensure continued operation and can this be accommodated? Have all external doors


been closed and locked, is the building alarmed and a full record maintained of designated key/code holders? Where commercial vehicles are parked on the premises, have all valuables and cargo been removed, are they locked and is there an adequate key control procedure in place?


News Roundup


The Supreme Court has granted Heathrow Airport permission to appeal against a block on its plans for a third runway. It follows February’s Court of Appeal ruling that the government decision to allow the scheme to go ahead was unlawful, on the grounds that climate considerations had not been taken into account.


///NEWS Air


The deadline for a decision on whether to grant RiverOak Strategic Partners a Development Consent Order (DCO) to build a cargo terminal at the closed Manston Airport came has been postponed until 10 July, having already been delayed by four months from January. Stone Hill Park sold the Kent site to RiverOak Strategic Partners, which has plans to reopen it as a cargo hub.


Qatar Airways says that it is currently the largest cargo and passenger airline in the World. The airline’s share of the global market has grown signifi cantly over the past three months as it has not only continued operating but also expanded to more than 30 new destinations despite a long-running blockade imposed by neighbouring countries. The cargo division has prioritised medical and aid shipments and transported over 200,000 tonnes of essential supplies to impacted regions. Qatar Airways increased passenger and cargo fl ights between Doha and Dublin to daily from 13 June.


Etihad Airways now links 20 cities in Europe, Asia and Australia via Abu Dhabi following introduction of a special fl ight programme on 10 June. Connections are available via Abu Dhabi to Jakarta, Karachi, Kuala Lumpur, Manila, Melbourne, Seoul, Singapore, Sydney, and Tokyo to major cities across Europe including London Heathrow.


US airline Delta is to reintroduce three days a week passenger and cargo fl ights from Detroit to Heathrow on 21 May, for the fi rst time since the COVID-19 pandemic closed borders. There will also be a three days a week passenger and cargo service between Atlanta and Frankfurt and a cargo-only service between New York JFK and Mumbai. Cargo can also be transported between Chicago and London, via Detroit. Heathrow fl ights will be operated by a a Boeing 767-300 with 26 tons capacity.


American Airlines is increasing its cargo-only service from the US to Europe including new fl ights from Chicago O’Hare to London Heathrow and Paris Charles De Gaulle. There are also cargo fl ights from New York JFK to Heathrow. From Philadelphia (PHL), American will begin cargo-only service to Zurich and Rome. Existing passenger fl ights with widebody planes include daily service from Dallas and Miami to Heathrow.


Virgin Atlantic will move its fl ying programme from Gatwick to Heathrow, although it intends to keep its slots so it can return in line with customer demand. It will also axe over 3,000 jobs in the UK. British Airways has also said it may permanently close its currently suspended Gatwick operation. Virgin Atlantic also plans to reduce its fl eet from 45 to 35 aircraſt over the next two years, although it hopes to restore about 60% of its pre-pandemic fl ying capacity by the end of this year.


IAG Cargo says that 21 British Airways fl ights are now operating every week from China to London with capacity of up to 770 tonnes of cargo for the NHS shipped in joint eff ort with the UK Government and the British Embassy in Beijing. From May, 14 fl ights each week will depart from Shanghai, and seven from Beijing carrying cargo in the hold and, where possible, in the cabin too.


In protecting your business, it is


prudent to ensure that all records of maintenance, security provisions, inspections and relevant correspondence with, for example, landlords and insurers, are securely retained.


Whilst not exhaustive, as each


situation will be unique, TT Club has developed an ‘unoccupied premises’ checklist to help assess the risks. https://preview.tinyurl.com/


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