Freight News, Logistics

Backlogged cargo is at risk, warns insurer

[ April 30, 2020   //   Chris ]

Insurance group the TT Club is warning of the risks from the accumulation of cargo in warehouses, port terminals and inland depots. These are primarily non-essential products, for which there is little demand as retail outlets are closed or supplies for production lines that are either static or at reduced capacity.

In the UK for instance, the latest estimates are that 90% of the country’s warehouse capacity is full, with the UK Warehousing Association (UKWA) forecasting no available space within two weeks’ time. One high-street fashion retailer has reportedly leased 40% more storage than it would have under normal circumstances.

Managing director loss prevention at TT Club, Michael Yarwood, comments: “Whether it’s taking up buildings not usually used for storage or laden vehicles parked adjacent to a full warehouse, or simply facilities unfamiliar to the operator, the security regime may not be of a similar standard. This concern is not just limited to fencing, lighting, security patrols and CCTV, but also communication with hauliers delivering cargo to the unfamiliar premises. There is also the constant danger of vehicles being diverted into the hands of criminals; so-called round the corner theft.”

The physical characteristics of temporary facilities may also lacking in weather-tightness, phytosanitary issues or uneven hard standing.

Tags: TT Club