When building containers, the buyer is fundamentally seeking conformance to a series of requirements, although the focus may be on the detail of the product to be built, rather than defining the measure of quality. According to some experts, quality is a state of mind, which involves preventing errors from entering the manufacturing process, improving them as required and getting it right first time. In the container industry, can we see these basic requirements?
As container manufacture is apparently a boom industry in 2014, it is worthy of some risk analysis to consider whether or by what method those who are commissioning such construction can be confident that all their requirements are being met consistently throughout the production series. While it is difficult to gather empirical evidence, the importance of container integrity is clear.
TT Talk - Contractual 101 for transport
07/10/2014
The transport supply chain is designed to bring together one party that requires a service with another who offers to provide that service - generally many times over. In all scenarios, there is some form of contract that ensues (whether written or oral), which not only outlines the nature of what will be done but also defines the obligations between the parties. Such contracts are essential and at least a basic understanding is required by all.
Adoption of Standard Trading Conditions (STCs) can be an effective short-cut for parties involved in the movement of goods, both nationally and internationally, as part of the fabric that gives certainty in dealings. However, for STCs to reach 'first base', allowing a party to rely on them, they must be incorporated in a way that courts generally recognise.
The use of flexitanks for transporting bulk liquid cargo has grown rapidly over the last decade, and this has been projected to continue with perhaps 15% per annum, reaching 1 million shipments in 2018. Products carried include wine and other foodstuffs, traditionally supplemented by latex and dispersions. The latter, together with newer products such as base oils, edible oils and chemicals, can cause problems if a failure occurs in the supply chain and regulators are concerned.
The carriage of bulk liquids in general purpose (GP) containers is increasing in volume, with 650,000 shipments projected for 2014, up from about 100,000 in 2005. Attention has been focused on the two issues that plagued early designs - damage to container walls and cargo leakage - exacerbated by the proliferation of manufacturers and service providers. The diverse stakeholders have collaborated to improve standards, under the auspices of the Container Owners Association (COA).
Scarcely a week goes by without media highlighting some element of cyber risk. Focus is generally given either to 'national security' issues or scams impacting personal financial matters. While businesses are revealed as vulnerable to breach of data for these purposes, there may be complacency concerning thorough risk assessment and mitigation programmes, particularly in industries - such as the international supply chain - where the customer and supplier relationship is historically more secure.
TT Talk - Theft trends
05/08/2014
An increase in both the sophistication and frequency of cargo thefts in 2013 has been highlighted in statistics released by TAPA (Transported Asset Protection Association). Interestingly - and in line with general expectation - the average value of reported cargo thefts continues to rise globally, notably in excess of US$300,000 in the EMEA region. This would suggest that the trend of highly targeted efforts by organised criminals continues, systematically identifying higher value cargoes. Unsurprisingly, the results in 2014 continue on the upward trend.
Proposals put forward by the US Food & Drug Administration (FDA), aimed at improving the prevention of food safety problems through the food supply chain within the US, could have significant ramifications for operations within the transport and logistics industry, including those initiating a move into the US from elsewhere in the world. The time period for submission of written or electronic comments has been extended to 31 July 2014.
On Monday, 26 May 2014 three crewmen on board a general cargo ship were killed after entering the ship's hold. The ship was carrying a seemingly harmless cargo of sawn timber. During the passage the oxygen in the hold had been significantly depleted. This is a stark reminder of the need for thorough risk assessment, vigilance and, arguably, personal oxygen meters.
TT Talk - Packing, weighing and securing
03/06/2014
For the unit load industry, the IMO's twin approval of amendments to Safety of Life at Sea Convention (SOLAS) for the verification of gross mass of containers and the IMO/ILO/UNECE* Code of Practice for packing cargo transport units (CTU Code) are welcome and important; the next mountaintop is now in sight.