Changing risks at ports and terminals
As pivotal hubs within global trade, container ports and terminals face risks that have potentially serious consequences for international supply chains, says insurance and risk management expert, the TT Club.
At a recent speech to the TOC Middle East Conference in Dubai, Julien Horn from the TT Club, took the opportunity to highlight the lessons to be learned from recent incidents such as the explosion at Tianjin and the increasing occurrence of cyber crime at port facilities.
He said: “Port terminals are often seen as the weak link in global supply chains. Clearly as cargo shifts from one mode to another and is stored for a period of time, operationally it becomes more susceptible to risk. This is particularly true in the Middle East region where rapid trade growth and aggressive port expansion continue at rates higher than in other parts of the world.”
Fire and theft consistently lead the list of causes in TT Club’s on-going analysis of claims it receives, which is used as a focus for loss prevention in relation to the damaging consequences to life, property, supply chain stability and business reputation.
The serious incident in Tianjin last August clearly brought into focus the dangers on which TT Club habitually issues warnings. Mr Horn cited a number of problems in need of attention, including poor practices for cargo segregation, lack of adequate storage facilities for dangerous goods, inadequate training in sound practice and lack of coordination with fire & rescue services.
With regard to the escalating incidence of cyber crime, he said: “In common with prevention of all operational risk, our advice to combat such threats includes a constant awareness of the dangers of infiltration into IT systems, vigilant data protection, careful staff background checks and training, planning for the consequences of a compromised system and immediate reaction to such an event.”
By Anne-Marie Causer