Insurance

TT Club steps up efforts to reduce container losses at sea

TT Club steps up efforts to reduce container losses at sea

Insurance News

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With container loss at sea remaining a major challenge for the shipping industry, international cargo insurance company TT Club is actively cooperating with the container industry to reduce such losses.

As a key aspect of preventing container loss at sea is understanding the causes behind vessel capsizing and other related incidents, TT commended the World Shipping Council for its annual container loss survey, which showed a significant reduction in recorded losses for 2023. More importantly, approximately 33% of initially lost containers were recovered.

However, TT research confirms the pivotal role of weather as the most influential factor in losses. According to the data, preventing container losses involves a complex interaction between different operational elements.

“TT has been involved from the beginning in the MARIN TopTier Joint Industry Project,” explained Berggren Storrs-Fox, TT’s Director of Risk Management. “This ongoing project has brought together over 40 industry and government stakeholders to identify and resolve the conditions that lead to such incidents.

“It has already provided important guidance on mitigating the risk of capsizing, and the Club will continue to engage in discussions, particularly at the IMO, after the research is completed.”

While much of the focus is on vessel operations, TT emphasized that every participant in the cargo supply chain has a role to play. It is crucial to ensure that the gross mass verified at the point of transport order is accurate, as well as that the cargo is properly distributed and the goods are safely packed into containers. As such, TT’s Cargo Safety Campaign remains a cornerstone of its efforts, together with its Cargo Safety Group partners.

At the ship-to-port interface, terminal operating systems must support correct stowage on board, using stowage planning software to place heavy containers lower in the deck stack. “TopTier studies have identified discrepancies of up to 20% between planned stowage versus actual final stowage on board,” Storrs-Fox noted. “If this is representative of all operations, it is in itself a concern.”

TT’s analysis also pointed to environmental factors common to many of the incidents. While wave height is an obvious concern, wave length and period are of greater importance. Wave period, in particular, can lead to resonant phenomena such as parametric rolling and synchronous rolling, which contribute to storage collapse and container losses.

In addition, in its pursuit of technological advancement in the field of safety, TT recognized two innovative solutions developed by Trendsetter Vulcan Offshore. These digital and engineering systems, taken from the shipping industry, aim to enhance monitoring capabilities to predict and detect parametric capsizing, redesign anchor systems to reduce container movement and stabilize container stacks.

“Ships will never be able to completely avoid the impact of rough seas,” Storrs Fox added, following the rerouting of ships away from the Red Sea, which exposed voyages to severe weather conditions off the coast of South Africa. “TT, as part of its mission to make the global logistics industry safer, more secure and more sustainable, continues its efforts on this issue and urges industry colleagues to do the same.”

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