Bulk Distributor May/Jun 2020 May/June 2020

www.bulk-distributor.com Est. 1990 May/June 2020 BULKDISTRIBUTOR Your single information source for bulk and semi-bulk logistics Tank Containers • Flexitanks • IBCs • Drums • FIBCs • Bulk Liners • Road Tankers • Loading/Bagging • Bulk Logistics • Cleaning & Repair Depots • Components IN THIS ISSUE Shipper 3 Tank Containers 4 Components 8 Cleaning & Repair 9 Asset Management 11 Industrial Packaging 13 Logistics 14 The lag between the large-scale sourcing regions of China and other parts of Asia and the consuming markets of Europe and North America has caused significant build-ups of goods produced in the former regions but not now required in the latter TT Club warns of risks from cargo build-up As consumer demand and manufacturing production for production lines that are either static or at reduced capacity. slowed in many parts of the world, cargo, either in In the UK for instance, the latest estimates are that 90 percent of containers or stripped from transport units, is building up in the country’s warehouse capacity is full. warehouses, port terminals and inland depots. “Security is clearly the most dominant of the risk issues as operators This is carrying numerous additional risks, freight and logistics seek alternative storage,” explained Michael Yarwood, managing insurer TT Club warns. director loss prevention at TT Club. “Whether it’s taking up buildings The current pandemic has disrupted global supply chains in a wide not usually used for storage or laden vehicles parked adjacent to a variety of ways. In particular, the lag in its effects between the largescale sourcing regions of China and other parts of Asia and the security regime may not be of a similar standard. full warehouse, or simply facilities unfamiliar to the operator, the consuming markets of Europe and North America has caused “This concern is not just limited to fencing, lighting, security patrols significant build-ups of goods produced in the former regions but not and CCTV, but also communication with hauliers delivering cargo to now required in the latter. unfamiliar premises. There is also the constant danger of vehicles Such accumulations include cargo in containers at both being diverted into the hands of criminals; so-called round the corner transhipment and destination port terminals, as well as import theft,” emphasised Yarwood. consignments that have been delivered to warehouses and The physical characteristics of a temporary facility may also be distribution centres (DC). These are primarily non-essential products, unsuitable in a range of ways, such as weather-tightness, for which there is little demand as retail outlets are closed or supplies phytosanitary issues, uneven hard standing. Further, consideration HIGH PERFORMANCE COATINGS FOR TANK CONTAINERS MADE IN GERMANY y our number 1 in europe for: • ChemLINE 784® • Proco – EMAIL, black® • Proco – ECTFE HALAR® • PLASITE® 3073 • Interline 9001 • Proco – L (F14E) • Proco – A (F17E) your chemical resistance experts in europe HÜNI + CO Eckenerstraße 65 88046 Friedrichshafen GERMANY www.hueni.de [email protected] FEATURES IN THE NEXT ISSUE Industrial Packaging Flexitanks & Liners Loading Racks Road & Rail Tanks To advertise or contribute please email [email protected] or [email protected] Ports & Storage 15 needs to be given to the nature of the cargo and the capability to handle and store hazardous materials and specialised commodities correctly (such as high value or temperature controlled). These factors may also extend to inappropriate or substandard handling equipment and the requirement to subcontract labour and security personnel from previously unknown sources. Where possible, established standards should be maintained, including undertaking full due diligence. Yarwood also drew attention to the importance of maintaining records and an efficient documentation flow. “In a situation where goods and cargo units are located in unusual facilities, perhaps off-site at some distance, it is vital for accurate records of movements, storage times and potential drawdown requirements to be preserved.” Such bottlenecks in the supply chain through the lack of demand for goods may be temporary as diminishing orders start to affect the flow through. However, one of the knock-on effects currently being experienced is that some port terminal operators, along with their ocean carrier customers, are attempting to help importers by delaying delivery and/or providing temporary storage for containers. A recent survey by the International Association of Ports & Harbors (IAPH) shows a mixed picture at ports around the world. “Thirty-five percent of ports reported an increase in utilisation of warehousing and distribution facilities for foodstuffs and medical supplies, with some ports reporting capacity shortages,” the analysis shows. The club’s risk management director Peregrine Storrs-Fox said: “There will be regional variations within these trends of course. As inbound congestion on terminals rises, we are seeing some European ports offering off-terminal storage for undelivered import containers. In the current extraordinary environment, all involved in the supply chain should be taking extra steps to assist in finding solutions. Care must be taken however to ensure that in providing such a facility, operators do not expose themselves to additional liability and risk.” Many of the potential risks and liabilities that apply to warehouse and DC operators will face a terminal or carrier in placing undelivered containers in temporary storage locations. In addition, container and cargo damage potential could be heightened in facilities unaccustomed to handling full containers. There is a heightened risk of phytosanitary issues where off-terminal storage locations may have less permanent surfaces or increased exposure to vegetation and pest ingress, particularly if the storage is long-term. The dwell time of such containers may also become an issue if the cargo is eventually abandoned as the goods become ‘off-season’ or the importer ceases to trade. The question of traceability then becomes a more critical issue.