Get Serious About Freight Theft

(Lloyd’s List — Comment)

That somewhere around $5bn worth of cargo is stolen every year from the global supply chain is surprising in itself. It is perhaps even more surprising that this is not headline news; but beyond the dramatic stories of pirate attacks off the Horn of Africa, which are potent fuel to fire the imagination with, much freight theft is low-level and accumulative.

For the general public, freight theft is essentially a victim-less crime and consequently does not register – although the viciousness of some of the attacks on lorry drivers taking their mandatory breaks on roadside rest stops are the equal of many a Somali pirate. However, while piracy at sea is principally an issue for shipowners, ship operators, and naval security services, the tightening of supply chain security places far more responsibility onto cargo owners, who appear to approach the serious problems posed by freight crime with something of a cavalier attitude.

Certainly, given the multiple concerns of, say, a high street retailer or global automotive manufacturer struggling to get his company through the recession, it is understandable that supply chain security might find itself slipping down the pecking order. That does not, however, mean that it is acceptable. Read more here.

Rotterdam Rules ‘a Long Way Off’

(International Freighting Weekly – Damian Brett)

Forwarder groups opposed to the Rotterdam Rules have refused to accept that they will become the dominant liability regime, despite 20 countries having signed up. Last week, the UN announced that the landlocked African country of Niger had become the 20th nation to indicate its intention to ratify the Rotterdam Rules in the future.

But the British International Freight Association (BIFA) said that this did not necessarily mean they would go on to ratify them. The Rotterdam Rules would not come into force for a further year after they are individually ratified by 20 nations, it added. “In order for The Rotterdam Rules to enter into force it will need 20 countries to ratify the convention. This involves more than just a signature,” it said. Read more here.

Global Supply Chain Hit by Uniserve Case

(International Freighting Weekly – Gavin van Marle)

Carriers could find themselves fully liable for goods following delivery errors

The number of supply chain partners vulnerable to the new liability loophole uncovered by IFW last month could be far greater than originally thought, and include carriers of all modes, as well as forwarders and warehouse operators.

UK-based freight operator Uniserve was recently found liable in a High Court ruling for a £375,000 (US$610,000) pallet of mobile phone devices that was stolen from one its warehouses in 2003 after being delivered there in error.

The company’s CEO, Iain Liddell, said that more than just the forwarding sector could be liable for goods accepted in good faith, but delivered in error. “If the error is such that your customer didn’t intend to deal with you at all, then no contract will arise and you are liable for the full cost of the goods if you are at fault for their damage or loss, “ he said.

“An error can be as simple as the principal or his agent delivering the goods to the wrong party, but the party receiving those goods may well have a trading relationship and have every intention of providing a service to the principal or his agent and accept the goods in good faith, totally unaware that an error has been made.”

He outlined some potential ways in which hauliers, shipping lines and airlines could find themselves fully liable as the result of errors that would invalidate a contract: Read more here.