TT Club issues abandoned cargo risk alert

Supply chain congestion and widespread delays in the international container trades will continue to exacerbate the challenges of abandoned cargo, risk prevention advisory, TT Club has warned.

Increased risks of safety and regulatory infraction are inevitably consequent, as well as significant demand on management and operational resources to resolve individual cases.

“Levels of cargo abandonment have always been problematic to forwarders, NVOCs, logistics operators and, of course container terminals,” comments Peregrine Storrs-Fox, TT’s risk management director. “The surge in container demand over recent months has however compounded container ship capacity issues, port congestion and consequent severe transit delays. These factors will do little to alleviate the practice of cargo interests, in circumstances of loss of market for goods or bankruptcy, simply relinquishing ownership of consignments.”

TT’s StopLoss publication Abandonment of cargo: Avoiding the pitfalls has been created to support those left with the responsibility of removing and/or disposing of the goods and returning the container to the appropriate carrier.

It identifies ‘red flags’ that forwarders, logistics operators and carriers should consider – certain commodities such as waste, scrap, materials for recycling and personal effects – previously unknown shippers, particularly individuals rather than companies. Furthermore, once the cargo is defined as abandoned, the StopLoss outlines the role of enforcement agencies and the responsibilities of others involved in the supply chain.

“Above all the value of our guidance lies in mitigating the risks associated with abandonment and recommended actions outlined in methodical steps and a ten-point checklist,” concludes Storrs-Fox. “There needs to be a greater understanding of why cargo is abandoned and how it is handled in order to restrict the growth of a serious trend leading to increased safety and cost ramifications.”

TT Club's document can be accessed here.

    Share Story:

Recent Stories


Cyber physical risks
Property damage as a consequence of cyber attack is often excluded from standard property policies, but as the industrial internet of things expands, so too do the risks. This podcast examines the evolving threat landscape. Published October 2021

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Advertisement