Russian cops can cost forwarders as much as crooks, warn TT Club insurers
RUSSIAN police are as much a worry as criminals for imposing unexpected costs on forwarders operating in the former Soviet Union, say world transport insurers at London's TT Club.
The TT Club's warning comes as signs of a economic recovery in container trade volumes appear in Russia and its associated states.
"The risk of cargo theft and armed hijacking may be higher, but a lack of knowledge of regulations and judicial procedures are likely to expose operators to considerable unexpected costs," said TT Club senior underwriter Paul Knighton.
"Operators should never consider cargo cover alone as sufficient. All carriers, truckers and forwarders need to carry out a thorough assessment of common liabilities," he said.
Russian TT Club representative partner Alexander Petrenko, of Panditrans, told of the risks in a presentation at the TransBaltic industry conference in St Petersburg.
The Russian Association of Road Carriers has reported a six per cent year-on-year rise over the six-month period, representing two billion tonnes of freight.
Container traffic on railways has gone up 5.6 per cent to 1.5 million TEU in the same period.
The increase in trade will encourage operators, who must once more apprise themselves of the specific liabilities involved in transporting goods in the region.
The insurer is also reminding transport operators with interests in the Russian market of a five-fold liability risk profile associated with Russian affairs.
Mr Petrenko said that in addition to claims for loss or damage to cargo, operators could be liable for financial losses through errors and omissions, as well as third-party liabilities, and fines and duties imposed by Russian authorities.
"Furthermore, there is a range of costs arising from the consequences of any incident involving a container or CTU [cargo transport unit]," said a TT Club statement.
"Aside from this, liability to a contractual party, usually limited by applicable international and local laws and conventions, may be significantly increased depending on the circumstances of the incident, such as whether gross negligence or reckless conduct on the part of an employee or hired subcontractor," it said.
TT Club and Panditrans advise logistics service providers in the former Soviet Union carry out thorough risk management reviews to identify liability exposure and to seek appropriate insurance cover.
RUSSIAN police are as much a worry as criminals for imposing unexpected costs on forwarders operating in the former Soviet Union, say world transport insurers at London's TT Club.
The TT Club's warning comes as signs of a economic recovery in container trade volumes appear in Russia and its associated states.
"The risk of cargo theft and armed hijacking may be higher, but a lack of knowledge of regulations and judicial procedures are likely to expose operators to considerable unexpected costs," said TT Club senior underwriter Paul Knighton.
"Operators should never consider cargo cover alone as sufficient. All carriers, truckers and forwarders need to carry out a thorough assessment of common liabilities," he said.
Russian TT Club representative partner Alexander Petrenko, of Panditrans, told of the risks in a presentation at the TransBaltic industry conference in St Petersburg.
The Russian Association of Road Carriers has reported a six per cent year-on-year rise over the six-month period, representing two billion tonnes of freight.
Container traffic on railways has gone up 5.6 per cent to 1.5 million TEU in the same period.
The increase in trade will encourage operators, who must once more apprise themselves of the specific liabilities involved in transporting goods in the region.
The insurer is also reminding transport operators with interests in the Russian market of a five-fold liability risk profile associated with Russian affairs.
Mr Petrenko said that in addition to claims for loss or damage to cargo, operators could be liable for financial losses through errors and omissions, as well as third-party liabilities, and fines and duties imposed by Russian authorities.
"Furthermore, there is a range of costs arising from the consequences of any incident involving a container or CTU [cargo transport unit]," said a TT Club statement.
"Aside from this, liability to a contractual party, usually limited by applicable international and local laws and conventions, may be significantly increased depending on the circumstances of the incident, such as whether gross negligence or reckless conduct on the part of an employee or hired subcontractor," it said.
TT Club and Panditrans advise logistics service providers in the former Soviet Union carry out thorough risk management reviews to identify liability exposure and to seek appropriate insurance cover.