Freight News

Middle East forwarders run greater risks, says TT Club

[ October 23, 2013   //   Chris ]

Forwarders that provide involved logistics services such as warehousing and distribution, procurement of additional product for sub-assembly and packaging and even software uploading are opening themselves up to more extended liability, insurers the TT Club told a workshop organised by the UAE’s National Association of Forwarding and Logistics (NAFL) in early October.

TT warned that these demands often put an onerous risk on the forwarder, who is under considerable competitive pressure to accept such liability as a carrier.

Risks can be compounded when employing sub-contractors, as they are unlikely to be willing to take on the same liability. Indeed, the workshop underlined the difficulty forwarders in the Middle-east region have in sourcing reliable trucking companies that are fully insured for any liability risk.  TT Club applauded the initiative put in place by the NAFL to improve this situation by establishing insurance compliance standards for designated ‘safe operators’. Until compliance is fully adopted by the region’s haulage industry adequate insurance cover for many transport operators will remain a problem.

David Phillips (middle), chairman of the NAFL and CEO of Freight Systems LLC presents Julien Horn (left) and Andrew Kemp (right) from TT Club with an award in recognition of their expertise.