Organising events, congresses, conferences entails having everything in the right place at the right time. In order to execute successful events, Middle East based organisers are juggling with a variety of logistical challenges.

Imagine the logistics involved in the grandiose opening of the Atlantis hotel last month. The organisers of that event must be very pleased with themselves, though, since everything went according to plan.

For things to run like clock work, planning is key. Vishal D’Souza, Director – Operations, MCI Middle East says, “When a client approaches us for a congress, we have what we call at MCI a Product Organigram. This is a programme showing the client the different levels/components of services within a project. It’s just like setting up a new business.”

Vishal D’Souza, Director – Operations, MCI Middle East

MCI’s modus operandi in creating successful congresses such as FIATA is getting an idea of what the client has been used to in the past. D’Souza says, “We need to understand what they’ve done in the past, how have they operated or who they were working with and what was the structure being used previously to see if they are comfortable with the existing structure or if we need to create something new for them. Our focus here is if it is a new client, we do not want to do things too differently than what he/she is used to in order for the client to have the comfort level with us.”

MCI’s key focus is doing business as a professional congress organiser (PCO) although events also are very much part of the family as congresses have a number of social events and parties all linked into them. Clients usually contact MCI a year or six months in advance. MCI then sits with them to learn the way the client wants the congress to be executed presenting them with a breakdown of costs depending on the number of delegates expected to attend.

Activities typically executed by MCI when it commits to creating a congress include: sending invitations to delegates, organising registration of delegates with the appropriate number of MCI staff, pre-event communication, hotel procurement and management, onsite logistics, VIP and speaker management, sponsorship issues, the actual exhibition, creative production, transportation, social events and technical tours.

Challenges All of these components require a large percentage of logistical back up. Having extensive international and local experience, the challenges MCI faces are related to contracting of hotels/venues. “There are a lot of congresses that are keen to come to this region but there are no congress centres,” says D’Souza. The Dubai International Convention Centre (revamped in 2003 for the IMF) is the only dedicated exhibition centre in Dubai. “If you look at their calendar of events, there is no chance of getting availability for the next four to five years,” he continues.

But there’s hope. “There is a new convention centre coming up at the Jebel Ali airport, the Dubai airport free zone is planning something, so there is a lot of scope for conferences yet to come,” says D’Souza.

Challenges are many in the area of contracting. “Clients are not used to having to come to this part of the world and booking about 300 rooms in a hotel one year in advance and having to pay a 50 per cent deposit of the total cost to book their rooms because this doesn’t happen in Europe. The inventory of hotels in Europe is so large that hotels benefit when you make a large group booking as for that period of time they don’t have to worry about selling rooms because they are usually not running on full occupancy.”

Procurement is a way out of this. By acquiring long term contracts with hotels, transportation companies, F&B, catering and supplies reduces costs as well as establishes a two way benefit scheme.

The glamour quotient The Talent Brokers have been around for 30 years in Dubai. Having organised a number of concerts in Dubai and other regions, they know organising events like the back of their hands. Padma Coram, Managing Director, The Talent Brokers, says, “Organising events such as the ones we do is all about trial and error. I don’t think any textbook can give you the answer for it. Managing logistics is something you have to experience your self and be consciously doing what we do. You need to be passionate and know your territory very well. It doesn’t matter if you’re the biggest promoter in London, you come to Dubai and everything is different. People are different, the location is different, permissions and procedures are different. Also, just because an event works in India it might not work here, you really need to know your land, you need to know the pulse, the heart of the project.”

From left: Padma Coram, Managing Director, The Talent Brokers with Luciano Pavarotti and HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and in the other picture with husband Richard Coram and Indian actress Kareena Kapoor

The biggest event organised by The Talent Brokers logistics wise was the Power Boat Race concert featuring Amr Diab way back in 1988. Being a free concert, Coram says they had about 60,000 people who attended that concert. “It was huge, probably a majority of the UAE population at the time came for it!”

Having concerts for 80,000 to 90,000 plus audiences in Dubai is simply not possible she says. A large concert with such capacities can happen in India but never here. “Last year, we had about 15,000 to 17,000 people who came to watch Elton John live in Abu Dhabi.”

Coram’s team is well-versed with organising such large open air concerts because having the hard earned experience helps in quick organisation. “It’s like working on a ready template but with different subjects each time,” she says, “we’ve done it so often.” So although she doesn’t have a permanent team, she has what she calls a permanent part-time team of companies to whom she contracts these tasks.

“It’s like setting up a city for a day and then taking it apart. We need to construct the entire stage area with the green room, VIP Lounge, refreshments are (sometimes artistes come with 200 people of their own and organising the logistics for their needs such as transportation, entourage, their own private jets and cargo planes has to be arranged), seating area, toilets. I often describe my job as that of a construction worker or toilet maker as we even have to make the drainage for the toilets,” she chuckles.

Challenges “In this country, my biggest challenge is a lack of a venue, lack of infrastructure, lack of a common location, traffic. Everything to do with an event that takes us all the time to manage such as facilities, generators, electricity that we don’t have because there is no permanent location. It’s my biggest challenge because we spend 90 per cent of our time constructing these facilities for a concert when we have to concentrate on other things such as the show itself. And, trust me, that is an enormous amount of work on its own. We seem to be concentrating on creating infrastructure and facilities of the country which we needn’t have to be doing,” she says. She likens her job to building an entire theatre to show one movie for one night and then taking it apart.

“After an event is over, we get blamed for the facilities or lack of them such as parking which wasn’t suitable or the traffic getting in and out of the venue. We aren’t responsible for that and shouldn’t be the ones to be blamed,” she says. “Unless there’s a venue, event logistics in the region will continue to be a nightmare. The venue cannot be built by a private company it has to be arranged for by the government. The way I see it, organising logistics for a country is about thinking of the future, it’s not about satisfying the needs of the present but anticipating the needs of the nation 70 to 80 years from now. It’s about respecting the people who reside in a country and envisioning their needs in advance, that is my take on planning logistics of a country.”

Alright ladies and gentlemen, class is now in session. Today, the University of Dubai is offering the internationally recognised Chartered Institute of Purchasing & Supply (CIPS) qualifications to those seeking to enhance their industry credentials. Though attendance will remain optional, anyone and everyone within the procurement and purchasing-supply industries are highly recommended to not only attend, but to use this class as a catalyst to create more value for themselves and their respective companies.

Why? Because as a profession, purchasing and supply is increasingly being seen as a strategic business discipline, involving a growing number of highly specialised roles. The supply chain is becoming ever more complex, presenting those in the profession with many new challenges, from changing market structures ushered in by globalisation and the growing economic strength of developing countries, to technology, global events and trends towards ethical and fair trading.

As the job market is becoming increasingly competitive, internationally recognised standards are becoming the norm. Quite simply, those who may have experience, but no standardised qualifications, are being left behind. The programme has proved popular amongst supply chain professionals throughout the Middle East, as the course structure is flexible and tailored to allow students to maintain their day jobs.

Offering an International Certificate qualification as well as an International Advanced Certificate, the University of Dubai wants industry insiders to progressively step up their game. The International Certificate qualification is awarded to students who have knowledge of the main concepts and principles associated with the area of study. Upon completion, they will be able to identify and describe the main concepts and principles, present and/or interpret qualitative and quantitative data, and communicate clearly in written English, using diagrams and charts as required. Sounds straight forward enough.

Currently, there are no entry requirements to commence studying for the International Certificate in Purchasing and Supply. However, you must complete the International Certificate programme before starting the International Advanced Certificate. For Advanced Certificate acquisition, you must successfully suggest solutions to a range of problems, analyse data and make reasoned judgements, as well as develop lines of argument. This is the foundational understanding for those who wish to ascend the corporate ladder within their respective business.

As topics introduced at the Certificate level are developed in the Advanced Certificate, the awards are progressive. Each award has five compulsory units. With each unit designed for a minimum of 15 hours direct tuition, it is expected that students undertake an additional minimum of 15 hours self study per unit. This equates to approximately 150 to 200 hours of study for each certificate, including a minimum of 75 hours of direct tuition.

At a cost of AED11,500 (US$3,126) per year, the University of Dubai’s CIPS programme is not for the faint of heart. However, those interested in attaining such qualifications should make their employers aware of their intent, and request possible financial assistance. One would assume companies would be more that willing to invest in their employees, as it proves to be a win-win scenario for all parties.

Gillian Lewis, Logistics & Inventory Manager, ACE

If you ran into Gillian Lewis in the grocery store, you might never guess she was Logistics & Inventory Manager for ACE hardware. In fact, judging from her baby-blue eyes, blonde ponytail and soft face, you might assume she was your average Dubai newlywed, more concerned about babies and dinner parties than hammers and nails.

But once she opens her mouth, you know Lewis is in the right job. The Northern Ireland native, who formerly worked with Sainsburys grocery store and general merchandise retailer Woolworths in the UK, clearly understands the science of supply chain. “Our business at ACE has really changed since I arrived. We didn’t have a logistics manager before,” she says calmly.

“Because we didn’t really have a very good supply chain, people used to order once every six months, so we would get in stock and then get out of stock. Our supply chain from America was very ‘hit and miss’. We might get a load of stock and then not get any for months.”

But Lewis is changing all of this. “My job has been to smooth out the supply chain so we’re receiving product little and often, reducing our stock holding and improving our stock turn,” she says. “We’ve started to order little and often, and have developed a very strict ordering schedule and formula we use to place orders.”

And she follows this formula like a science. “We work out how much product we want to order per vendor, how much stock we’ve currently got and how much we have on order,” she explains. “Then we work out our rate of sale per month, determine if we want to keep two or three months cover, and decide what our lead time is. From that, we work out what we need to order and round it up to case packs or pallets, depending on how we want to ship the products.”

So far, this strategy is a success. “Between a year ago and now our availability has improved 10-fold,” she says.

But Lewis wants to take the ACE supply chain to the next level, with the help of software provider SAP. “We’ve been doing a lot of work on SAP and improving the way we use it,” she explains. “Previously, we were not using it very well. SAP has got so much information and so many factors to it, that it can be very useful.”

This, she says, will reduce her team’s workload. “We’re working on an automatic replenishment formula, so instead of manual calculations on a spreadsheet, we just click a button that works out all the necessary formulas. You can plan up to full container loads to make sure you’re using the space in a container efficiently,” she says.

“I want to get to automatically ordering everything, including our minimum order quantities and ordering of case packs and pallets, so when product arrives in our GAC warehouse in Jebel Ali, it’s easy for them to receive the stock and it’s easy for them to put it away.”

She is also working with GAC to make their software compatible. “At the moment, GAC uses its own warehouse management system, but we’re going to implement SAP’s warehouse management system there,” she explains.

ACE and GAC’s current programs do not always mesh, elaborates Lewis. “They’ve got their system and we’ve got SAP. That means GAC has to update two systems and mistakes can happen. It can be a bit of a pain.”

“Soon, we’re going to just have one system,” she adds, positively. Proper ordering will also make life easier for GAC. “We received a pallet from a vendor the other day that maybe had five different products on it, so GAC had to strip down that pallet and take ages to check it and repack it and decide where it was going to go, based on its size,” says Lewis.

“What I want to do is, based on the rate of sale, order full layers or full pallets of product, so it’s easier for GAC to check the product and put it away; and get the vendors to send pallets that fit into our locations.”

She says she has to be tough to encourage vendors to pack accordingly. “I want to get to a position where everything comes in correctly palletised and correctly sorted, so the time it takes to receive a product will be greatly reduced. But we’re not there yet. We’ve got a long way to go.”

She says ACE doesn’t yet have the clout of her former employer, Woolworths, which receives its pallets completely sorted. “There’s only one way and that’s their way,” she says. “If the vendor doesn’t deliver the way they want them to deliver, then they just say ‘Sorry, we either fine you a huge amount of money, or else we reject you.’”

But ACE is starting to follow Woolworths’ example. “The only way vendors are going to learn is if we dictate our terms,” she says. “If they don’t do it our way, we fine them. If they don’t supply us with bar codes, we fine them.”

GROWING Lewis says her team has had to step up ACE’s supply chain to keep up with the store’s expansion. The Al Futtaim-owned chain has branches on Sheikh Zayed Road and Bur Juman in Dubai, as well as the monstrous store in Festival City, which opened in May, 2006. It also has stores in Sharjah and Abu Dhabi, “Our supply chain has had to change to accommodate a doubling of our sales growth,” she explains.

The store now offers 35,000 products, which it orders from ACE suppliers in China and the United States, as well as independent international vendors. “Before we opened the Festival City store, we had about half of that,” says Lewis. “We brought in a lot of new ranges that we had never sold before.”

She says the company has a unique organisational structure. “We are part of that ACE cooperative, which means we have to buy a certain amount of product from them per year. But it also means that if ACE does well, we get part of the profits back.”

And the American ACE supply chain is, well ‘ace’. They have something like a 99 percent service level in their distribution centres,” says Lewis. “I’ve been to a few of their distribution centres and you could eat your dinner off the floor.”

Surjeet Singh, General Manager, Logistics, HR Solutions, DULSCO

Is anyone tired of hearing about staffing shortages? Likely not Surjeet Singh, General Manager for the Logistics department of DULSCO’s Human Resource Solutions division. It is his job, after all, to supply manpower for short-staffed logistics operations, from Jebel Ali Port to DNATA at Dubai airport. And he is under a lot of pressure. “Most of the time we have more requirements than what we can supply,” he says.

While Indians still make up a bulk of DULSCO’s labour force, Singh explains that workers from the subcontinent are becoming more and more difficult to find. Dubai’s ports and airports now have to compete with new airports and new ports coming up along with the new Indian economy. “You can still get unskilled workers in bulk from India, but skilled workers, for example crane operators, we are finding difficult to recruit,” he says.

While Pakistanis have also traditionally dominated the market, Singh says more and more people from Bangladesh are starting to work in the region. “Bangladeshis are almost equal to the Indian labour coming in.”

Singh says we will also start seeing more Africans around local logistics operations. “We are actually looking at Africa, as we have to keep looking for new resources,” he explains. “The only concern is – how are those guys going to be able to coexist with the other nationalities? Indians have been here traditionally, Pakistanis have been here traditionally. They know the area, they know the culture. Filipinos, also, have adjusted very well.”

S. Bala Kumar, Director, DULSCO, insists that the various nationalities living in DULSCO’s 300,000 sq feet of labour camps scattered throughout Dubai manage to coexist without segregated living quarters. “We try and mix them to keep them together,” says Kumar. “We have very good control over the camps. We do have the occasional drunken brawl on the weekends, but they have good fun.”

Kumar says the workers also manage to share their kitchens. “We’ve given them the facilities, gas cooking ranges, cabinets and utensils, the whole works. But they cook their own meals. It works very well.”

Singh adds that, socially, nationalities still tend to segregate. “They make groups. This is a danger we face. The Pakistanis will make a group. The Indians will make a group. But you can’t help it.”

He says DULSCO has experienced little of the labour dissent that Dubai became globally infamous for several years ago, with construction workers forming unions and threatening strikes. “At the present moment, I do not think this is happening here,” he says, when asked if workers ever rebel against employers. “Most of the labourers pay a lot of money to the agents who brought them over here, and to recover that they have to stay working for at least a few years. They know that if they somehow get thrown out of their job, they will not recover that money.”

He insists that workers are quite satisfied with their accommodation, which includes a football field, gym and basketball court. And he insists that DULSCO “goes beyond government regulations” when it comes to housing requirements. “We make sure that all of our people are happy.”

Speaking of logistics Of DULSCO’s approximately 5,000 employees, around 1,200 work in logistics-related industries. Singh explains that the skill set for this sector is highly specific. “You have to have a technical knowledge to deal with vessels, aircraft, warehouse, forklifts and cranes,” he says. “This work requires more than hands and legs.”

He says staff can take classes at the labour camps, for example training to become a forklift operator, or learning English, the key to communicating on the job. “Whenever someone shows he wants to grow his skill set, we make sure we provide him with the opportunity.”

While many of DULSCO’s contracts involve either purely recruitment or permanent staffing with visa and accommodation provision, the company also offers temporary staffing solutions. Many clients keep a set number of permanent staff and then call DULSCO when they need more men. Singh says this means supplying labour to the logistics sector can be a bit of a gamble, as demand for services tends to fluctuate. “Sometimes there are a lot of goods coming into the port,” he says. “Sometimes there is a complete lull.” He explains that volumes tend to increase during Ramadan and drop during January and February.

“We have to be completely aware of what the market requires and what it will require in three months.”

But DULSCO also has logistics operations of its own – try moving 4,500 people between their accommodation and nearly 400 work sites. This takes over 60 vehicles running 24 hours a day, says Kumar. “It’s very complicated.”

Spinneys, Jumeirah Beach Road

In Dubai’s heat, even a few minutes in traffic can shrivel all the fresh produce you have stacked in your boot after a grocery shopping spree. But supermarket giant Spinneys obviously has its business down pat. Not only can you find the freshest fruits, vegetables, cheeses and ready meals, they’re also available
at a premium.

“We like to brag about our fresh produce which is airlifted on a daily basis from different parts of the world – Holland, Lebanon, UK among others,” says Muhammed Zahir Asif, Head of Logistics at the high end grocery chain. “That’s our forte and we’re proud of it.”

“The reason for the pride in our selection is because what we have in our stores is not present anywhere else,” continues Asif. “This is what sets us apart.”

But, with the skyrocketing price of fuel these days, airlifting comes at a high price. “We do not pass the extra cost of airlifting to our consumers,” says Asif. “We’re absorbing most and passing only some of the cost. Profits have been affected, but volume of sales has also increased, thereby balancing out the bottom line.”

Fresh produce is Spinneys’ top line product, having experienced a 55 per cent growth in the last two years. “Our customers are willing to pay a little more for the quality and it is our duty to make sure of their satisfaction,” says Asif. The queues which are always a norm at the check out counters are proof enough.

Managing the operations and logistics of the products is running smooth currently. The main and largest warehouse (around 130,000 sq feet in size) is located in Al Quoz. It has a capacity to house 13,000 pallets and also has 31,215 sq feet of refrigerated space. Another cold space warehouse in Aweer stores all the fresh produce and ready to eat food. Spinneys has also rented space in JAFZA on an e-governance basis for its online clearance facility. In this system, the duty for the goods is paid as and when they move out of the warehouse.

Muhammed Zahir Asif, Head of Logistics, Spinneys

Twenty two refrigerated vehicles deliver products to 34 Spinneys stores around the emirates. And each vehicle is dedicated to delivering one of the three types of products
– fresh, frozen and non-perishables. Deliveries happen round the clock, starting from four in the morning and continuing until midnight. Traffic is the only challenge that causes hindrances in the flow of supply.

All branches are connected to a centralised system that runs on SAP. At present, the auto replenishment system is being streamlined on a few major categories of products such as dental products and juices. This will mean each branch will be able to place orders on the system based on sales and the warehouse will deliver only required quantities. This will improve efficiency as compared to the present system, where for instance, a few imported dry line items such as Waitrose products and spaghetti are delivered on alternate days from the warehouse to all the stores.

Challenges are being overcome on an ongoing basis. Prior to SAP, product quantities were counted when they left the centralised warehouse and then were counted again by the store staff upon receipt and before off loading. This caused delays in delivery times all round. Now, however a pre-set number of each product leaves the warehouse for each store and is not counted upon arrival. This has caused the number of deliveries possible in a day to dramatically increase making life easy.

Internationally, the supply chain is being managed quite efficiently. Since a large volume of their products are from different parts of the world, Spinneys recently acquired the John Hold warehouse in Houston, USA, where a lot of the products gather and then are either shipped or airlifted depending on their type to the Middle East. Once the products reach the UAE, customs clearing agent AMI – a 3PL – handles 100 per cent of all the air and sea clearances. Of course, being a Platinum customer of Dubai Customs also comes in handy.

Business at Spinneys is definitely booming. The grocery store chain is now awaiting the opening of its biggest store in the region – all of 55,000 sq feet in Dubai Mall. Depending on the completion of the mall, the store is expected to throw open its doors sometime end of this month. In the last three years, Spinneys has opened eight new stores in Oman bringing the grand total to 45 stores in the region.

Asif is proud of his company’s achievements. “It’s been 40 years since the first Spinneys opened in Dubai,” he says, “but the rate of growth has been mercurial in the last four to five years. That can easily be attributed to our new CEO, Jannie Holtzhausen. From the time he joined, we’ve grown from about eight to 10 stores to 45 today.” Another 27,000 sq foot store is going to open soon in the Marina Mall, Dubai Marina.

“When our new more than 660,000 sq foot warehouse in the Dubai Logistics City is constructed and complete, we will shift base there. It’s a fantastic location, right next to the new airport. It’s going to be fitted out with the latest technology. It’s going to be huge,” he says proudly.

The oil and gas sector has always been a big payer for the Middle East transport (sea/air/road) industry. The number of transport vehicles and ships catering for this sector are increasing on a regular basis. However, for those wishing to indulge in this thriving industry, it is important to remember that the million dollar contracts come with a hefty responsibility to ensure maximum safety standards in the transportation of hazardous cargo.

Hence, it is imperative for those involved in international transportation (including shipping) of such cargo to ensure their procedures meet with international regulations. The International Maritime Organisation (IMO) provides a series of guidelines on tanker safety and the prevention of accidental pollution.

Fortunately, awareness of such issues in the region’s sea freight industry appears to be running high with many ship owners and operators actively looking to improve the quality of service, safety and environmental protection standards.

For example, the Emirates National Oil Company (ENOC) hosted its first Marine Environment, Health and Safety (EHS) conference in Dubai last year – aiming to share best practice and quality assurance. ENOC is just one of many oil companies keen to unite with the sea and road freight industry to ensure that it is operating in a safe and environmentally sustainable way. At the conference, Yusr Sultan, Chief Executive Officer of the company’s terminals, shipping and LPG division, told delegates, “ENOC believes marine EHS performance is a partnership between the various parts of the supply chain.”

At the end of the day, accidents do happen and will continue to happen during the transportation of hazardous goods. However, with the correct safety measures in place, the likelihood of this can be nearly eliminated.

All that is required is a major commitment from companies dealing with the land and sea transport of dangerous goods – and the region itself certainly appears to be upping its game to achieve this.

Alex Borg, MCIPS (Stam) MIM MILT UK, is a trainer and consultant in logistics and supply chain management. He is also the Executive Director and Co-ordinator of CILT – UAE Council in Dubai (www.ciltinternational.com).

A healthy market requires that all marine industry sectors practice due diligence in their ordinary course of work. Many long standing medium and some small-sized enterprises in the UAE have successfully conducted their business for years without having to worry about professional insurance or affording the protection of national and international associations. Yet standards still need to be raised in line with the rapid increase of volumes that are entering the region.

Konstadina Kottoros, LL.M, is Legal Consultant (Corporate & Shipping Dept.), Fichte & Co. Legal Consultancy, Dubai

By following a few simple precautions, operators can considerably minimise their liability and strengthen their credibility in the market.

Claims Handling Service providers in the marine industry must always work with the notion that goods handled are another person’s income and the level of service provided will very much depend on the internal structure of a company. They should also remember that a potential claim against companies who handle goods and cargo as part of their core service can arise at any time, and businesses should be duly prepared for the occasion.

Thirdly, any work and decisions undertaken must be conducted with the insurer’s interest at all times.

Do: If a company has insurance in place and a claim has been lodged against any forwarder, warehousing facility, hauler, shipping line and other subcontractors, it is crucial that this is immediately communicated to the insurance company and that all parties to the transit have been put on notice. A preliminary notice of claim and its timing will govern whether a claim is valid and will assist with establishing the true defaulting party; however, this will not eliminate your responsibility towards your customer. The client will have contracted control and care of the goods over to his agent, whom, as far as the customer is concerned, will remain directly responsible as principal for any damage or loss to his property.

A preliminary notice of claim is simply a notification of loss or damage to the cargo in order to preserve the right to claim against a party in the future and to recover any loss subsequent to a claim. If damage is discovered after the goods have been delivered and the damage was not apparent upon receipt, the claim will not be entertained and will immediately be rejected by the insurers.

Don’t: Some companies have misconceptions that they can claim for a loss at any time, but if procedures are not followed and standards are not met the claim will either be substantially invalid or time-barred. Neither is it sufficient to claim against one party when there are a string of parties involved in the transit and handling process; and if it is eventually resolved that that specific party was in fact not responsible for the damage or loss, you will forever lose the right to claim against other contractors.

Another crucial word of advice when assisting a claim on behalf of a customer, the principal party must not admit liability unless the liability is very clear. Also, assisting a client in recovering his loss is a matter of courtesy and business efficacy and does not indicate or imply acceptance of legal responsibility.

Claims Prevention Alternatively, individuals or companies operating without any protection must at least have internal workable procedures in place which would ultimately minimise the number of claims that are likely to arise. Common forms of loss in multi-transit shipments extend from physical damage, shortage and non-delivery of goods, pilferage to consequential delays resulting in commercial damage such as non merchantable goods, loss of expected profit, business chance and alternative transportation costs.

Carefully devising a system of claims prevention would most certainly have a positive impact on the entire supply chain and will significantly reduce the number of claims prone to the industry. In order to minimise loss, adequate measures must be implemented and followed if such a system is to be successful. It is advisable to carry out a transit test to determine any delays, damage or pilferage and whether any serious measures need to be taken.

Documentation should continuously be improved to identify and/or eliminate liability, and each claim should be recorded in a comprehensive claim report specifying the parties, damage, claim amount, claims number and date along with any time bars that may be applicable that could potentially bar your claim.

Quality control can always be improved, such as transport services, cargo handling and packaging. Packaging, in particular, can be analysed for any defects and adequacy of handling and stowing, its compatibility with the goods being carried, weather exposure likely to be encountered and breakage. Packaging and correct labelling to assist in safe handling, is of crucial relevance; and the right type of material, size and strength has to be assessed in accordance to the nature of the goods and weight carried. Failing to do so could render the goods dangerous if packaging and labelling regulations are not complied with. Labelling is necessary for communicating the type of cargo contained inside the package and the level of handling required for safety purposes and for any special transport and storage requirements.

In order to prevent pilferage, transport companies must aim to improve security throughout entire transit; warehousing must be constantly manned at all times during working hours and CCTVs should be installed to monitor activities after working hours. Additionally, a security system can be connected to and monitored by the security company in question. Pilferage most commonly occurs while the goods are being trucked long distance and where trucks are left unattended. The transit test will also determine which areas are of potential hazard and if packaging must be marked clearly for identification purposes.

Staff training will ensure the right people are allocated for the right job and that all personnel have adequate claims awareness to handle matters eligibly and diligently. Staff training on claims is imperative at all levels within an organisation as most operations are conducted at the lower tiers of hierarchy. For instance cargo handling and stowage at ports or warehouses can be conducted with care and damage could be minimal provided employees have been exposed to the right type of training by way of safety awareness, internal procedural rules, code of conduct and sufficient training in operating heavy machinery and equipment.

Conclusion Above are only a few but very important factors to consider when handling a claim and enforcing effective prevention measures. The shipping and logistics sector is continuously exposed to a number of perils concerning multimodal shipments, such as weather, port/transit delays and negligence of subcontractors – all of which are completely beyond the physical control of the agent. Ultimately, any form of loss can be controlled legally by effecting suitable insurance to cover unforeseeable damages while synonymously limiting your liability.

At any given time, billions of dollars worth of cargo and merchandise are in transit on the open seas. From suppliers to buyers, each is dependant on their respective goods reaching their destinations. Though often overlooked, the fundamental factor remains securing against vulnerabilities.

“As the maritime transportation system underpins the world economy, it remains the dominant support for global commerce,” said Michael Chen, CEO of ST Education and Training (STET), at the 2008 Maritime Security Forum in Dubai last month.

“Therefore, safety and security measures in all aspects of the maritime industry remain vital to continuous growth of business activities, while safeguarding the industry assets and protecting the people involved.”

Based upon excerpts from programmes and guidelines of best known practices, both internationally and regionally established by the ISO, APEC and the EU, STET offers some simplified solutions for maintaining secure port facilities and ships:

• Prevent, detect and deter unauthorised entry of goods/material
• Control and prohibit unauthorised access to facilities
• Screen prospective employees
• Establish a regular security training programme
• Ensure process and control of documents are complete and secure
• Establish written and verifiable security procedures
• Provide a coordinated, structured and comprehensive response to an incident
• Safeguard the custody and integrity of cargo movement – entering, within
  and leaving port
• Extend supply chain security to include organisation’s business partners
• Build resilience while being prepared to handle crisis and emergencies

“Make sure implementation is up to par,” says Chen “It’s a trust system.”

How to protect yourself from pirates

• When near pirate waters, always keep a lookout, especially at the pirates’ favourite boarding point, the stern
• If unknown vessels approach or behave suspiciously, get the crew on deck and maintain their alertness
• Lay out high pressure hoses to blast the pirates with water
• Alert the International Maritime Bureau (+44(0) 207 423 6960) immediately, relaying your coordinates
• Shoot flares in the air to draw as much attention to your vessel as possible
• If armed pirates do board, do not take unnecessary ‘heroic’ risks
• Preserve life at all cost

Operating out of some 3,000 deep sea ports around the globe, over 50,000 cargo ships are on the seas at any given time. Recognised as the safest and most environmentally friendly form of commercial transport, maritime shipping is responsible for 90 per cent of all world trade. Without it, transport of bulk raw materials and manufactured goods over such long distances would prove far too costly, if not impossible.

As the balance between global supply and demand ultimately depends on product availability, and the time required to acquire it, ships are always in high demand. Events like war, good or bad harvests, natural calamities and government subsidies, all to some degree, affect shipping. These days, with rising fuel costs and ever more emerging or volatile markets, maritime shipping is becoming more expensive. Yet the industry has never seen more demand. In 2007, the world’s fleet of cargo ships increased by some 8.8 per cent, while 2008 is expected to see a rise of 10 per cent.

Today, ships are specialised to the requirements of their cargo. Here are some of the more common types of cargo carriers:

Bulk carriers: Used primarily to transport cargo items such as cement, ore, rice or grain. It can be recognised by the large box-like hatches on its deck, designed to slide outboard for loading. These ships can carry upwards 365,000 tonnes at a time.

Container ships: Used to carry entire loads of truck-size containers, transporting the majority of the world’s dry cargo. The larger ships have the ability to carry some 15,000 containers at a time.

Tankers: Used to transport fluids such as crude oil, petroleum products, liquefied natural gas (LNG), and chemicals. There are just over 4,000 tankers in the world, with the largest class being the Ultra Large Crude Carrier (ULCC), able to carry 550,000 DWT (Dead Weight Tonnage). Tankers comprise one third of the world’s shipping tonnage.

Reefer ships: Used to transport perishable commodities that require temperature controlled transportation, including fruits, meats, fish, vegetables, dairy products and other foodstuffs.

Roll on/Roll off (RoRo) ships: Specifically designed to carry wheeled cargo such as automobiles, trailers or railcars, having built-in ramps which allow the cargo to be efficiently “rolled on” and “rolled off” the vessel when in port.

BY THE NUMBERS

In 2006, over 7.4 billion tonnes of goods were transported by sea. Maritime transport is responsible for 90 per cent of all trade, yet contributes only 12 per cent to world’s pollution

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Having been in the logistics industry for more than 20 years, Alexander Borg has experienced warehousing safety from the ground up.

Starting out as an assistant store keeper and working his way up through various managerial positions, he now lends his expertise to companies throughout Europe, North Africa, Middle East and Southeast Asia, offering solutions in warehousing safety.

“When you talk about health and safety, a lot of people are concerned,” says Borg. “If you look at warehousing, you will find generally shelving, forklifters, cleaners, a lot of people are involved. There must be a clear policy coming from the top down, with implementation from the ground up,” he says.

According to Borg, the first thing that should be in place is a standard of operations. It should be revised every two to three years depending on the changes in the company, including growth or turnover of staff.

“Even a cleaner should know how to use f iref ighting equipment.” So what about the training? Borg suggests companies implement an induction course for employees, where procedures can be introduced, as well as providing a tour of the premises.

“From my experience, when I visit the warehouses in different countries, I ask them, ‘How many of you have attended an induction course?’ The answer will
be maybe 50 per cent of them.”

“Companies must give an induction process to the people using the equipment,” says Borg. Whether f ire extinguishers are hanging out of reach of employees, emergency exits do not exist, or risk is just not recognised until it’s too late, Borg says, with some adequate direction and execution, hazards can be prevented.

“The bottom line is this: the policy needs to come from the top-down, while the implementation should come from the ground-up.” Alexander Borg will be providing three courses throughout June in Dubai Industrial City, teaching proper health and safety measures in warehousing.