On May 21, 2024, the Metropolitan Hotel Dubai hosted an insightful seminar organized by TT Club, The international provider of mutual insurance to the international transport and logistics industry, focusing on the risks associated with the transport and handling of temperature-controlled cargo. The event brought together industry professionals to address the challenges and best practices in this specialized area of logistics.
The seminar provided an excellent platform for industry professionals, including transport and container operators, ports and terminals, and logistics operators, to engage in meaningful discussions. The attendees shared their experiences and challenges, fostering a collaborative environment to explore solutions for reducing claims and enhancing the overall safety of temperature-controlled cargo.
During his opening address, Abdul Fahl, TTMS (Gulf) Director said: “This event reflects our commitment to advancing knowledge and best practices in the handling and transportation of sensitive cargoes. As the global demand for temperature-controlled logistics grows, it becomes increasingly critical to ensure the integrity and safety of these shipments. Together, we aim to enhance the efficiency, safety, and reliability of the supply chain for these vital products.”
Key Highlights
The seminar underscored the complications and frequent issues surrounding refrigerated container cargo claims. These claims are a significant concern due to the diverse nature of cargoes transported in refrigerated containers, including meat, vegetables, fruits, live plants, flowers, and medicines.
Each of these goods demands precise temperature and atmosphere management to maintain their quality and prevent substantial financial losses. Offering a rich blend of expert knowledge and practical guidance, the speakers and participants emphasized the necessity for continuous education and adherence to best practices in the industry.
The event not only highlighted the recurring issues in temperature-controlled cargo transport but also showcased the importance of proactive risk management to safeguard against substantial claims.
Temperature-controlled cargoes present operational challenges for all those in the global supply chain, the biopharmaceutical industry alone loses approximately USD 35 Billion a year as a result of failures in temperature-controlled logistics. Such errors also contribute to the fact that a third of food produced for human consumption is lost or wasted every year.
Claims typically arise from deviations from the required temperature, which are frequently caused by inaccurate communication, operational errors and equipment breakdowns. Through this seminar, TT club outlined a practical guidance for those involved in the operation, packing, unpacking or handling of temperature-controlled, “refrigerated” or “reefer” cargo transport unit.
The risks include cargo damage, food wastage, financial loss, equipment damage, increased insurance costs and reputational damage. TT Club believes that with communication, monitoring, safe packing, pre-trip inspection, checking plugs and cables for damage, and watching out for red flags, the temperature-controlled cargo associated risks can be mitigated.
Speakers
The seminar’s speakers included esteemed experts from the field, who provided valuable insights and practical advice about mitigating risk in the temperature-controlled supply chain.
Mike Yarwood, Managing Director of Loss Prevention at TT Club shared a comprehensive overview of the risks inherent in the transport of temperature-controlled cargo. He emphasized the importance of careful handling and monitoring to mitigate potential claims.
Yarwood highlighted the various factors that can compromise the integrity of temperature-sensitive goods, such as fluctuations in temperature, humidity, and handling practices.
He detailed how even minor deviations from required temperature ranges can result in significant financial losses, spoilage, or reduced efficacy, particularly for pharmaceuticals and perishable goods.
By adopting these meticulous handling and monitoring strategies, Yarwood argued, companies can significantly reduce the incidence of potential claims, protect the integrity of their cargo, and maintain customer trust.
His insights provided attendees with a clear roadmap for enhancing the safety and reliability of their temperature-controlled logistics operations.
Another key presentation was delivered by Carsten Jensen, Founder and Managing Director of Jensen Associates. Jensen delved into the operational challenges faced by transport and container operators, specifically focusing on the complexities of managing temperature-controlled logistics. He highlighted common pitfalls such as inconsistent temperature monitoring, inadequate training of personnel, and the lack of standardized protocols across different regions and companies.
Jensen emphasized the critical importance of maintaining the integrity of temperature-sensitive cargo, which often includes perishable goods, pharmaceuticals, and other high-value products.
Mehtab Kassam, Managing Associate at Stephenson Harwood Dubai, brought a critical legal perspective to the discussions. Her presentation explored the intricate regulatory frameworks and legal considerations essential for the safe handling and carriage of temperature-controlled goods.
Kassam provided an overview of the legal framework and various international regulations that govern the transport of these delicate cargos, in both UAE and KSA.
Additionally, Kassam referred to some case studies in that matter, highlighting common issues that affect the temperature-controlled cargo, such as: poor communication, hot stuffing, poor packaging, and malfunction of reefer containers.
Robban Assafina, Issue 92, July/ August 2024, Marine Insurance, pg. 49
