{"id":328,"date":"2010-11-07T21:32:40","date_gmt":"2010-11-07T19:32:40","guid":{"rendered":"http:\/\/ourblog.greenwoods.org\/?p=328"},"modified":"2010-11-07T21:32:40","modified_gmt":"2010-11-07T19:32:40","slug":"transport-risks-management","status":"publish","type":"post","link":"https:\/\/greenwoods.org\/transport-risks-management\/","title":{"rendered":"Transport Risks Management."},"content":{"rendered":"

\"\"With constantly shifting suppliers and sales markets as well as the increase in use of outsourced production sites, companies face more and more transport exposures for their cargo. <\/strong><\/p>\n

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As Experts explains, fast and safe deliveries require a holistic approach to transport risks management.<\/strong><\/p>\n

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Every good is shipped at least once in its lifetime, but most goods make many more journeys across borders and continents. The importance of transportation as a critical supply chain function is often underestimated. With tight supply chain deadlines and stringent delivery contract agreements, any unexpected delay can have a significant financial impact.<\/p>\n

These risks lurk along the entire length of the supply chain, and are as diverse as political instability, regulatory changes, carriage capacity or crime. With just-in-time-deliveries the supply chain is a vital lifeline for a successful operation and any interruption can reverberate throughout the business process.<\/p>\n

Every year 7.7 billion tons of goods are shipped along the European road network, a fact that has not escaped the criminal mind. According to a survey by the International Road Transportation Union, one out of six truck drivers have suffered an attack or a theft in the last five years. As a result the threat to road freight transport has now become a major concern for business throughout Europe and many are looking at risk engineering to manage their exposures.<\/p>\n

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Impact of modern highwaymen<\/strong><\/p>\n

Gangs specializing in cargo theft are also using increasingly sophisticated methods. Besides staging false road accidents, growing trends include the use of fake police controls or stops, and fraudulent delivery locations. Police sources put the number of road crime incidents in Europe at around 12.500 every year and the European Union parliament estimated that the costs related to cargo theft are around \u20ac8.2bn.<\/p>\n

Road transport crime hot spots include the motorways between Paris, Lyon and Marseille, Milan to Turin, the greater area of Warsaw, the port of Antwerp and the infamous \u2018Bermuda triangle’ between London, Birmingham and Manchester.<\/p>\n

Despite cargo theft being classified by Europol as high or \u2018severe risk’<\/em> in most EU countries, the problem is often perceived largely as just part of \u2018the risk or cost of doing business’<\/em>.<\/p>\n

However, as the losses grow transport related crime is becoming an acute problem for hauliers and companies alike and a new focus on risk management.<\/p>\n

Scanning delays<\/strong><\/p>\n

Road theft is not the only problem companies face when moving goods. Ships have to avoid pirates off the coast of Somalia and air freight has the unique challenges posed by Icelandic volcanoes. Meanwhile shipments by air into the US might also face delays due to recent regulatory changes imposed by the US Transport Security Agency. As of August this year the authorities are enforcing a new regulation requiring all cargo loaded onto a passenger aircraft departing from any US airport to be scanned before it can be accepted by the airline. It is estimated that approximately 42% of all North American freight loaded onto passenger aircrafts is inbound cargo.<\/p>\n

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With such a significant volume of goods at US airports having originated from outside the country the impact will be felt by many firms beyond the US borders.<\/p>\n

The delay in processing these checks at the airport can mean further disruption within the supply chain causing, for instance, perishable goods to miss their intended flight or freight to be damaged while in transit, because the original safe packaging or stowing was not maintained during the check.<\/p>\n

Demand for marine risk engineering<\/strong><\/p>\n

Companies buy relevant insurance to cover for any cargo losses, but supply chain disruptions will still require a lot of management time and expense. Therefore, any ordinary insurance solution needs to be supplemented by a comprehensive risk engineering approach helping companies eliminate the weakest links in their supply chains. As such, the marine risk engineers will not only work with companies in reducing the risks of fire, flood and theft for static risks, but will also look at the complexities of modern supply chain risks to reduce potential losses.<\/p>\n

For goods moving around the world the solutions required to provide effective protection vary significantly. They can include using solid security seals for containers and GPS tracking, roof marking on trailers for aerial identification by police forces or avoiding appealing advertisement markings on cardboard boxes.<\/p>\n

To reduce the risk of road crime companies should, for instance, use secure loading docks, schedule breaks and fuel stops avoiding crime hot-spots and provide clear instructions and contact names at unloading destination.<\/p>\n

Packaging design<\/strong><\/p>\n

During transit, packages are also subject to many external pressures from the rolling and pitching of a seagoing vessel, or when the breaks are suddenly applied during road transit. The design of a package must withstand these forces and they need to be stowed and secured accordingly during transit.<\/p>\n

A marine engineer’s broad scope of activities also includes the security of warehouses and distribution platforms with respect to fire, natural hazards, access control, perimeter protection and many other aspects. To be effective, a security concept needs to take into account local requirements, culture and circumstances. A coffee warehouse in Africa will need to be secured differently to a textile storage facility in Europe.<\/p>\n

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Be prepared<\/strong><\/p>\n

Successful risk engineering is about considering the complete logistics and supply chain. Effective solutions need to be found in the context of where the problems occur. The transportation industry relies heavily on seasonal staff and contractors or sub-contractors, so the recruiting and vetting of partners and staff is vital. How well do firms really know the contractors they are trusting to deliver your supplies in time and how well are they and the firms prepared if things go wrong?<\/p>\n

The wide scope of the problem makes it clear that addressing the growing threats will require the combined efforts from all stakeholders. Implementing some practical action to address specific issues will greatly help mitigate the risk of financial losses not only to cargo but also further down its value chain.<\/p>\n","protected":false},"excerpt":{"rendered":"

With constantly shifting suppliers and sales markets as well as the increase in use of outsourced production sites, companies face more and more transport exposures for their cargo. As Experts explains, fast and safe deliveries require a holistic approach to transport risks management. Every good is shipped at least once in its lifetime, but most […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/328"}],"collection":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/comments?post=328"}],"version-history":[{"count":0,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/328\/revisions"}],"wp:attachment":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/media?parent=328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/categories?post=328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/tags?post=328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}