TT Club raises awareness of risk around abandoned cargo

WITH supply chain congestion and widespread delays in the international container trades set to continue, the vexatious challenges of abandoned cargo will remain and probably increase, according to TT Club.

In its role as risk prevention advisor to the industry, TT Club has issued a StopLoss document to provide practical guidance on the issue to stakeholders across the supply chain.

The potential catastrophic impact arising from the deterioration of abandoned cargo cannot be disregarded as a remote risk. However, the considerable costs accruing from container demurrage, detention, storage and disposal regularly result from cargo that, for a variety of reasons, is no longer required by the original receiver or consignee, and is simply abandoned at a port terminal or cargo facility.

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

Peregrine Storrs-Fox, TT’s risk management director, said, “Levels of cargo abandonment have always been problematic to forwarders, NVOCs, logistics operators and, of course container terminals.

“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 Club’s StopLoss publication, Abandonment of cargo: Avoiding the pitfalls, provides guidance to 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.

The StopLoss also 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,” Mr Storrs-Fox said.

“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.”