New COVID-19 guidance issued to the freight industry by TT Club
Freight transport specialist insurer TT Club said in a statement: “As the unfolding consequences of the coronavirus pandemic continue to disrupt international trade, TT Club is maintaining its advice service to stakeholders along the global supply chain.”
It added: “Over the coming weeks there will be considerable uncertainty for stakeholders through the entire transport industry as the global economy slows, governments prioritise specific supplies, consumer spending decreases and personnel shortages become more prevalent.”
But it said the demand to maintain reliability, and continued flexibility of the services provided, will be “acute” for many stakeholders, faced with the common three business imperatives during the current crisis of staff, customers and cash.
It said the scenarios faced will be many, various and complex, affecting port, terminal and warehouse operators as well as carriers across all modes, forwarders and logistics companies: “TT Club aims therefore to continue providing an advisory service that is supportive and alive to the additional and unfamiliar risks and liabilities being presented.”
Peregrine Storrs-Fox, TT Club’s Risk Management Director, said: “As we have advised in the past, fundamentally there is a need to communicate; to have an open dialogue with customers and suppliers and a good understanding of fast-changing controls and regulations imposed by local, national and even international authorities.
“The physical movement of cargo is understandably experiencing delays due to cancelled ship sailings, shortage of air freight capacity and land border checks and these disruptions to the norm will cause friction between the various links in the chain. An understanding of ‘what is going on’ by participants in the chain will serve to ease such friction.”
Offering a word of cautoin, he added: “Any party seeking in the event of a future dispute to rely on a ‘force majeure’ defence may well face the burden of evidencing that they took all reasonable steps to mitigate the loss”.
He said that, depending on the individual stakeholder responsibilities, there are a number of proactive risk mitigation strategies that may be considered: “Clearly, keeping well informed and maintaining open channels of communication with the national or local authorities relevant to the business obligations will be key, both to compliance with additional requirements and service to customers – even recognising that such obligations may be in another part of the world and possibly managed through a partner.”
For more information visit www.ttclub.com
6th April 2020
