NEWS\\\ Insurance


Dangerous goods: the debate gathers impetus


The appalling accident in Beirut underlines the ever-present perils of transporting and storing potentially dangerous goods. Peregrine Storrs-Fox from TT Club outlines the ongoing attempts to make the industry safer.


Container ship fi res are always in the forefront of the mind, though so far in 2020 - for all the diffi culties faced around the world – there has not been a repeat of the incidents that marred 2019.


However, there


is every reason to continue investigating ways to improve certainty in the transport of dangerous goods (DG) shipments. There have in recent weeks two


been helpful thought


pieces - a survey into the causes of cargo being non- declared or mis-declared and a white paper calling for a ‘comprehensive, holistic and coordinated industry approach’ to resolve the issues identifi ed. TT Club applauds both these initiatives. It


is little surprise that this


matter piques TT’s interest, since


it is central to the


‘cargo integrity’/#Fit4Freight initiative, which has been profi led previously. The authors of the white paper, National Cargo Bureau (NCB),


have


drawn extensively on their own container inspections carried out over the years and reach conclusions about the risks presented by


cargo packing


defi ciencies that resonate with the Club’s own fi ndings and statements. For those interested in the


statistics and detail, the white paper is a good (but sobering) read. Perhaps the most telling statement in its call to action is that the maritime supply chain system “[is] ripe for the type of disasters the industry has experienced over the last several years”. The NCB paper, in much the


same way as TT has also sought to do, breaks down causation into distinct parts. While there is plenty of meat in this paper, it suits this article to use the executive summary categorisation as a springboard. The layering of the national


and international regulatory environments applicable in transactions requiring the movement of goods cross-


border is undoubtedly complex. It extends far beyond the immediate remit of DG, but just in that context many aspects raise more questions. It might be assumed that classifi cation of a commodity is a rigid and straightforward process, but testing protocols, special provisions, packing groups and the like require diligence and competence, along with a fair understanding of science. Add to that the currently unsynchronised coding for customs and tariff purposes and general trade pressures. Those who see regulatory compliance as ‘an integral part of their safety culture’ will consistently deliver above the simple baseline mandate. Linked to the fi rst issue is all


too oſt en a ‘lay’ approach to DG. This was neatly shown in the survey. When those involved in


arranging the movement


of goods apply a ‘domestic’ perception, things go wrong – the use of hand sanitiser has mushroomed in recent months and most would not equate that with DG, in a similar way to the bleach kept under the kitchen sink. Maybe even some farmers will now reconsider how to handle certain fertilisers. Logistics has expanded to


become ‘all things to all people’, providing an increasingly complex range of service off erings and outsourcing, driven too oſt en by effi ciencies and economies. It is reasonable to assert, as the white paper does, that safety controls and reviews have suff ered as a consequence. ‘Once


bitten twice shy’


oversimplifi es the risk, but the range of restrictions or prohibitions needing to be taken into account can amplify the risks of non-declaration and mis-declaration. There will almost certainly be logic in the application by the shipping lines of ‘house’ policies, together with owner policies for chartered tonnage, and physical ship constraints for example, available reefer points.


Issue 6 2020 - Freight Business Journal Add to these the restrictions


applied from time to time at any of the ports of loading, transit, transhipment and discharge, and the scale of challenge is obvious. Managing all this and communicating eff ectively to the shipper community is burdensome at least. It was for that reason that TT supported Exis Technologies’ development of the Hazcheck Restrictions Portal, adding to their suite of compliance tools. While recognising that shipping


lines have established protocols to manage all aspects of DG, the white paper calls for greater management support and resourcing. While eff orts over decades to build common


communication


standards between companies have been reimagined in recent years, each company will have developed internal systems and cultures that may be well-served by benchmarking against industry good practice. TT has for many years


advised the need for careful customer vetting (beyond simple cargo screening). Such due diligence applies


in a host of


ways. Non-declaration and mis- declaration have been aptly named as ‘fraud’ – straightforward crime in many jurisdictions. Nevertheless, despite polite hearings, it is diffi cult to seize the attention of many enforcement agencies globally, specifi cally where they are not directly charged with the issue of DG non-compliance. It should be recognised that DG criminals are


almost certainly criminals


threatening both fi scal and security matters – so it is time to work together. The NCB white paper presents recommendations,


twelve


which might very broadly be summarised as ‘corporate management actions’ and the ‘opportunity of digitalisation’. The latter was heralded in TT’s 50th anniversary project with McKinsey & Company,


‘Brave


new world – container transport in 2043’ and rightly exercises many across the industry. Most of the recommendations, however, challenge boardroom appetite for rigorous review, revision and resourcing. Most of all, there is a call for action


concerted across the


industry, which may only be catalysed by an express derogation from antitrust regulators and unequivocal mandate from all relevant national and international authorities. https://preview.tinyurl.com/


yysunmrd


Europa Road is off ering Europa Flow, a new service to avoid delays caused by the need to contact importers and collect VAT and duty prior to delivery, aſt er Brexit. Europa acts as an EU Global VAT representative for its customers, zero rating EU import VAT and billing duty and fees back to the UK party. Together with the use of frontier


declarations, it allows goods to


be cleared whilst they cross the Channel and puts them into free circulation by the time they arrive in the UK. Europa has created two customs


brokerage businesses in Lille, France and Oostende, Belgium which, together with the team in Dartford, will manage export and import declarations and all


Freight industry ‘betrayed’ by Northern Ireland U-turn


A survey of 170 users of Agency Sector Management’s (ASM) Sequoia Customs clearance platform moving freight between Northern Ireland and Great Britain found that many believe that the new measures outlined will have a negative impact on trade. ASM chairman, Peter


MacSwiney, said he was concerned that many of the proposed systems


and infrastructure do not exist yet, with 1 January 2021 only fi ve months away. He explained: “We are actively pushing for clarity and answers to outstanding queries and issues that we have already raised with HMRC on behalf of our customers.” Trevor Scott, managing director


of Simarco Worldwide Logistics, which is using Sequoia to prepare


associated work. Europa Worldwide Group has meanwhile appointed Lieven Hendrickx as head of its customs team. A Belgian national, Hendrickx has worked for a number of leading logistics operators over the last 30 years in continental Europe and the Middle East and was most recently with business consultancy Deloitte.


for customs declarations on the trade lane, added: “Our business model along with our partner in NI and customer base is founded on the concept of late collections in GB for next day deliveries into NI. This requires a seamless journey which will be seriously impacted with the requirement for Customs declarations. “There is a feeling of betrayal


in the freight community that these new procedures are being introduced aſt er early assurances they would not be required.”


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.


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