h2h December 2009

The global economic tide begins to turn 02
America’s inland waterways 04
ICHCA International 05
25 years service 08
USA – Medicare requirement 09
h2h
House to House December 2009
02
House to House December 2009
As the global economic
tide begins to turn...
...I am pleased to note that TT, now in
its 41st year, continues to be the leading
provider of insurance cover, claims
handling and risk management services
to the transport and logistics industry.
During that time the Club has grown
on average by 10% year on year and
has worked hard to be innovative
in meeting the changing needs of the
industry it serves.
From its origins at the birth of containerisation in 1968 the Club has evolved to provide cover for ports and terminals, road
going chassis, cargo handling facilities,
NVOC’s and the ever dynamic logistics industry. Despite this growth and diversity
the Club always looks to international TEU
(twenty-foot equivalent unit) statistics as
the core barometer for measuring and estimating business development in forthcoming years. So, as we move through the
current recession, what do these statistics
tell us about international trade through to
2012 and how are we planning to deal with
what might lie ahead.
According to the October issue of Containerisation International, underlying containerisable trade
has fallen globally between 2008 and 2009 in
most trade lanes and the shipping lines have reacted to this by reducing TEU capacity accordingly. Whilst this might not look like a positive
picture at first glance, TEU activity serving developing countries has actually increased, albeit
by only a few percentage points and the shipping
lines have responded by increasing capacity on
these lane segments. Based upon current observed trends most trade lanes seem to be indicating a picture of relative stability through 2010
before beginning a gradual increase through
2011 and attaining a situation of parity with 2008
volumes in 2012.
The Club is therefore, positioning itself to support
its Membership as global economic trade patterns develop. To date, TT’s 2009 financial performance is strong when measured by operating
performance and solvency. This is, in part, due to
a lower volume of claims in 2009 as the global
trade environment has slowed, but is also due to
a tight control on operating expenses (which remain an area of management focus). Going forward into 2010, with offices in Europe, America
and the Asia Pacific region providing global
claims servicing capability, the Club’s objectives
include enhancing the risk management advice
given to Members and driving business growth in
the Club’s core sectors, in particular from the
transport operator and logistics sector.
I am glad to report that since the creation of the
role of Director of Logistics Insurance in August
2008 and because of an increased focus on sales
in general (in all categories of business), we are
seeing an increase in new business acquisition
rates particularly in the transport operator and logistics sector, which is further improving the Club’s
balance of business. The environment remains
competitive, but 2009 has been characterised by
certain competitors having withdrawn from the
market and this factor, in itself, has created some
very interesting new business opportunities which
we have been quick to capitalise upon.
A thank you must go to all those who provided
feedback on the Club’s products and services
during the last year. A number of key action points
came out of our (annual) customer satisfaction
survey in May/June (reported in the last issue of
h2h), which we will be addressing. In particular,
following comments about our processes for reviewing new business opportunities we have instigated a new system aimed at improving our
turn-around times to the broking community. Sim-
ilarly, we have begun a review of the structure of
our insurance wordings that is intended to make
them easier to use for both Members and brokers. Finally, you have told us that we need to increase the flow of information and on the back of
improved technology we are looking to enhance
the information we make available through the
Club’s website. In tandem with this we intend to
expand the use of media like this magazine, our
electronic newsletter, TT Talk and other Club information/publications, specifically relating to risk
management, by broadening the current distribution channel to encompass a much wider audience base thus increasing Club profile.
You will find five articles in this publication on
pages 3, 5, 9 and 10 that highlight initiatives in the
field of risk management all aimed at improving
operational safety and training in general. I would
encourage you to read these articles and to
comment back to us via the marketing in box at
[email protected]
We are in the process of strengthening our resources devoted to risk management and loss
prevention. We have employed a second analyst
whose role is to provide in-depth analysis of the
Club’s overall exposure and claim statistics to
identify claims trends such that the Club’s resources in the field are better able to assist Members with their risk management initiatives. A
great deal of claims analysis work has already
been undertaken within the port operations environment and you may have seen the results of
some of this work in various media since early
2008. To date this work has highlighted several
specific operational areas where we have been
able to offer sound risk management advice to
Members. We now intend to expand this analysis to other sectors such as logistics, so that a
standard benchmarking approach can be applied and used by Members to rank operational
efficiency.
In conclusion, I sincerely hope that you find the
content of this magazine both useful and entertaining. We have deliberately chosen to publish
h2h electronically from now on; back copies of
h2h can be easily accessed in the publications
section of the Club website ttclub.com
As usual TT will not be producing a corporate
Christmas card for this years’ festive season.
Funds that would have been allocated to this will
be donated to UNICEF and so I would like to use
this opportunity to wish you all a hearty Seasons
Greetings and a happy and prosperous 2010.
Charles Fenton, CEO
03
House to House December 2009
IMDG Code e-learning supports
2010 mandatory training for shore-side
staff dealing with dangerous goods
The Club has repeatedly highlighted the
fact that, from 1 January 2010, training
is mandatory for shore-side staff
involved in dangerous goods that will
be transported by sea. This represents
a significant legal change (of which the
Club was a proponent) and reflects a
continuing concern from the maritime
community regarding the risks arising
from ignorance or non-compliance.
While it is recognised that different approaches to achieving compliance have
already been adopted by national competent authorities around the globe, the
TT Club has recommended that the industry should itself build a level of confidence in the competence of counter-parties. This involves informing customers of
the requirement for training, and seeking
evidence that all relevant employees have
been trained.
The ‘rub’ is that this IMDG Code revision affects
all those involved in classifying, consigning,
packaging, marking, declaring, documenting,
container packing, handling and accepting DG.
This is a mind-boggling training exercise considering that most employees will have little appreciation of maritime carriage. Due to the scale
of this task, the Club has promoted the use of the
IMDG Code e-learning course as an efficient
and cost effective solution.`The Club has been
working with Exis Technologies to enhance the
product further as a means of complementing
other training that may already be in place.
The course has been developed by a dedicated
team of specialists with the support of industry
and IMO, and has been certified against the
DNV (Det Norske Veritas) Standard for Certification of Learning Programmes. It is tailored to
the IMDG Code requirements for both general
awareness and function specific training. The
course comprises modules dealing with topics
such as classification or consignment, with elements corresponding to lessons. There are self
assessment tests at the end of each element to
ensure that a good understanding of the course
content is being gained as the student progresses, building towards a Course Completion
Certificate score.
The past few months have seen rapid take-up of
the course, mainly amongst shipping lines, who
are most familiar with the IMDG Code requirements. In lobbying for this legal change, the Club
recognised that the greatest challenge would always be away from the maritime interface and
particularly reaching the shipper community.
Raising the competence levels of shore-side
staff in dangerous goods handling is an urgent
regulatory and safety requirement.
The Exis Technologies course can be accessed
in the following ways:
I For ‘standalone’ computers, including laptops,
IMDG Code e-learning for Windows can be
downloaded from the course website
I For larger organisations, IMDG Code e-learning for Intranet can be loaded onto the corporate
intranet. This version can be customised to include the operator’s dangerous goods procedures and practice
I From January 2010, IMDG Code e-learning
on the Web will allow the course to be accessed
at any time and from any location via the IMDG
Support website. This option is ideal for individual users, smaller companies or large companies who do not want to host the course themselves. IMDG Code e-learning on the Web will
also include the administrator function for larger
companies wishing to set up and monitor multiple students
AMSA accreditation
As a recent development, the Australian
Maritime Safety Authority (AMSA) has listed
on its website training courses for shore
side staff that meet its quality criteria. AMSA
has stated that personnel performing four
function-specific roles require AMSA accredited training, those who:
I
pack dangerous goods in packages
load cargo transport units
I mark, label or placard dangerous goods;
and
I prepare and sign transport documents
for dangerous goods
I
All of the above functions are covered fully
by the IMDG Code e-learning training
course.
Full details and a course demo are
available at www.imdge-learning.com
As a further incentive, the Club, in collaboration with Exis and ICHCA International, have agreed that purchasing
the appropriate course via ICHCA International (www.ichca.com) results in
a discount on the normal pricing.
04
House to House December 2009
America’s inland waterways –
channelling freight
The TT Club is
traditionally known
as an insurer of large
container ports and
terminals; but as part
of its drive to attract
clients from other
areas in the transport
sector, TT Club’s New
Jersey office launched
an initiative to sell
the Club’s services
to terminal operators
on the vast inland
waterways system
in North America.
The diagram below
illustrates the vast
carrying capacity
of river systems.
There are around 25,000 miles of inland waterways in North America, of which about 12,000
are commercially active. The inland waterways
system is mainly located on the eastern side of
North America: the Mississippi River and its tributaries and the Gulf Intracoastal Waterway
(GIWW) connect Gulf Coast ports, such as Mobile, New Orleans, Baton Rouge, Houston, and
Corpus Christi, with major inland ports, including
Memphis, St. Louis, Chicago, Minneapolis,
Cincinnati and Pittsburgh. The Mississippi River
from Baton Rouge to the Gulf of Mexico allows
ocean shipping to connect with the barge traffic,
making this segment vital to both the domestic
and foreign trade of the United States.
Barge Shipments
The terminal operators on this huge system handle around 630 million tons of cargo annually – or
about 17 percent of all America’s intercity freight
by volume, most of which is shipped by barge.
This is seen as an efficient and environmentally
friendly way of moving large quantities of bulk
and break-bulk cargo over considerable distances. Commodities handled in this way include
coal, petroleum, grain and other agricultural prod-
ucts; aggregates, such as stone, sand and gravel
used in construction; chemicals, including fertilizers; metal and mineral ores and products, such as
steel; and many other manufactured products.
TT Club identified this market as highly significant,
not only in terms of its size and potential for
growth; but also because of the nature of the operators – very often smaller, independent concerns that would appreciate the hands-on approach to insurance that the Club offers.
Initial Contacts
Five years ago, TT Club contacted the operators’
representative body, the Inland Rivers, Ports and Terminals Association (IRPT) to introduce its services
to IRPT members. TT Club’s Leo Kirchner recalls
how initial contacts were made: “IRPT provided the
catalyst for our marketing efforts. They put us in contact with many operators along the river system. It
soon became clear that they were very interested in
what we had to offer, and we began to build relationships which are still flourishing today.”
One of the operators that the Club was approached by in these early stages through their
broker was Lewis and Clark Marine Inc., a privately
Equivalent Units
=
=
870 semi trucks
15 barge tow
2.25 100 unit trains
Diagram courtesy of the River Transportation Division, Iowa Department of Transportation, 5268 N.W. 2nd Avenue, Des Moines, Iowa 50513.
05
House to House December 2009
ICHCA International
owned operator that provides transhipment of
bulk commodities between barge and road and rail
transport, along with a host of ancillary services. It
is based in St Louis on the Mississippi River.
Hands-On Approach
The company’s President, Paul Wellhausen, explains what attracted him to the TT Club’s approach. “We’re fiercely loyal here, so the personal approach is essential if you’re going to
build a lasting and beneficial relationship. I’ve
been meeting with the Club now for the past five
years – what I like is the Club’s hands-on approach, and the fact that TT understands what we
do. TT ask the right questions and get on top of
the issues. It’s a refreshingly different approach
from the commercial market.”
Another long-term TT Club client is Quebec Stevedores, who today operate eight stevedoring companies and 21 terminals, located on the St
Lawrence Seaway and the Great Lakes. One of the
largest operators on the inland waterways system,
the company handles some 1.5 million tonnes of
break bulk and 5-6 million tonnes of bulk cargo
every year, ranging from mining equipment for the
Arctic region, aggregates, coal, minerals and alumina, through to completed windmills for wind farms.
Quebec Stevedores’ VP Human Resources Jean
Gaudreau appreciates the dependability of the
Club’s services. “We especially like the fact that
TT offer an all-in package covering everything: few
exclusions as with some other insurers. Also, the
stability of the premium is very important to us. We
know it won’t vary dramatically by the year, and
that makes budgeting easier. I would add that in
my opinion, TT Club knows the stevedoring business better than any other insurer – they understand our business very well.”
Ready for Growth
Dan Negron sees the North American inland waterways as a sector ready for growth in the immediate future. “The widening of the Panama
Canal, which will be completed in 2014, will
enable larger vessels to call at the US East Coast
ports, and will bring more cargo to be transhipped via the waterway system. The US Federal Government has highlighted inland waterways as a cost-effective and environmental way
to move large amounts of bulk cargo,
reducing emissions and road congestion. There is
no doubt inland river port and terminal operators
will be handling increased amounts of cargo in the
not too distant future, and that will mean increasing demand for the services TT Club provides.”
TT Club’s Members span the transport and logistics industry – those who take responsibility to handle and carry goods in international trade. The common denominator is the
cargo that the supply chain exists in order to
expedite. How it is packaged or otherwise
prepared, marked where necessary, declared,
documented, received, stowed, handled and
onward conveyed is all relevant to the Club
and its Members’ interests. With this in mind,
the Club became a member of ICHCA International some years ago. It was recognised
that ICHCA was the only international body
concerned with cargo operations and cargo
handling. The two organisations now work
very closely together on a range of issues
and this article describes some of them, whilst
also pointing out the direct benefits that can
accrue to Members of the Club.
TT Club is a licensed Member of ICHCA International and this means that there is a certain benefit that is available to be used by TT
Club Members. For those who are unfamiliar
with ICHCA, the following section will provide an overview.
ICHCA INTERNATIONAL LIMITED is an
independent, non-political, international membership organisation and is
dedicated to the promotion of safety
and efficiency in the handling and
movement of goods by all modes and
during all phases of both the national
and international supply chains. Originally established in 1952 and incorporated in 2002, it operates through a series of Local, National and Regional
Chapters, Panels, Working Groups and
Correspondence Groups and represents
the cargo handling world at various international organisations, including the
International Maritime Organization
(IMO), United Nations Conference on
Trade and Development (UNCTAD), International Labour Organization (ILO)
and the International Standards Organization (ISO).
Its members include ports, terminals,
transport companies and other groups
associated with cargo handling and coordination. Members of ICHCA International Panels represent a substantial
cross-section of senior experts and professionals from all sectors of the cargo
transport industry globally. Members
benefit from consulting services and informative publications dealing with
technical matters, good practice advice
and cargo handling news.
ICHCA has many varied activities, however it
focuses on those found in the work of it’s international Safety Panel (ISP) together with
ISP’s Environmental Sub Group and ILO Advisory Group. These meetings are held consecutively at three separate locations per
year. In 2010, for example, they will be held
in Switzerland (January), Morocco (April) and
Japan (October). At its outset in 1991, ISP
determined that one of its main strategies
should be to develop authoritative guidance
on matters concerning safety and health in
cargo operations and that has led to five sets
of publications being produced – briefing
pamphlets, research papers, technical and
operational advice, pocket cards and also a
general series. More recently, ICHCA has
jointly published documents such as WindStorm II (with the TT Club) and the Safe
Handling of Tank Containers (with the International Tank Containers Association) Other
publications are under development with the
Container Owners’ Association (COA) and
the Lifting Gear Engineers Association
(LEEA). Because the Club is a licensed
member of ICHCA, a major library of advice
material is available in the private section of
the TT Club website (My TT Club).
ICHCA International is currently reviewing
its membership categories and it is possible
that other benefits may accrue in the future.
For now, TT Club Members should look at the
documents available and use them as appropriate to their activities. TT Club Members
are also encouraged to become full members
of ICHCA International in their own right.
For more information on ICHCA International
and its services please visit/contact:
ICHCA International Limited
Suite 2, 85 Western Road
Romford, Essex
RM1 3LS
United Kingdom
Tel: +44 (0) 1708 735295
Fax: +44 (0) 1708 735225
Email: [email protected].
Website: www.ichca.com
06
House to House December 2009
TT Club’s 2009 broker’s reception
In its 2nd year running, Skinners Hall was the
location for the 2009 broker’s reception. Attracting
representatives from 30 different broking houses,
the event proved to be a very successful evening.
Charles Fenton (TT Club’s CEO) shared the Clubs
aims and objectives for 2010 and thanked every
one for their continued support through 2009.
1. Julien Horn, Alan Kingdom, Simon Hudson 2. Nichole Cross, Tim Gilbert
3. Ian Lush, Paul Russell 4. Graham Johnson, Martin Joselyn 5. Roger Lewis,
Laurence Beale 6. Graham Johnson, Peter Stockli, Richard Gayton, Andrew Kemp
1
5
7. Leo Kirchner, Jake Fisher, Paul Spencer 8. Nic Ruben, Emma Winn
9. Simon Keenan, Anne-Charlotte Courtois, Scott Chitty, Nick May
10. Martin Scales, Jennifer Stewart, Katy Bray, Mark Willoughby 11. Peregrine
Storrs-Fox, Ian Brown, Duncan Read 12. Simon Schnorr, Andrew Kemp,
Edward Bostelmann, Roger Lewis 13. Ian Brown, Duncan Read, Julian
Todd 14. Kevin Shaper, Alistar Conway 15. Paul Wicks, Nichole Cross,
Simon Hudson, Alan Stewart 16. Chris McKellow, Laurence Beale, Nick
Vinson 17. Jake Fisher, Paul Spencer 18. Roger Lewis, Charles Fenton
19. Ian Hulley, Kevin Shaper, Nicholas Andrews 20. Martin Scales, Richard
Gayton, Stuart Munro 21. Andrew Dodds, Peter Walker, Robin Eltringham
22. Charles Fenton addressing the audience 23. Neetu Singh, John Hodges,
Danny Raveh, Paul Wicks 24. Nick Hart, Martin St. Pierre, Richard Colla,
Simon Keenan 25. Doreathea Jilli, Danny Raveh 26. Brian Wood, Alistair
Conway 27. Ian Drewer, Leo Kirchner 28. Graham Hooper, Martin Joselyn.
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3
4
6
7
8
9
10
12
11
13
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07
House to House December 2009
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20
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08
House to House December 2009
A satisfying quarter-century
25 years may sound like a very long
time to work for the same organisation
without a break – especially these days,
when jobs are less secure than they
were, and people are apt to change
careers at the drop of a hat; but TT Club’s
Risk Management Director, Peregrine
Storrs-Fox, has no regrets at spending
the last quarter of a century in the
service of TT Club. Peregrine is married
to Denise with 3 children between the
ages of 17 and 22.
Back in 1984, when Peregrine first entered
the doors of TT Club, the world of work was
very different: no emails, no information
technology, no mobile phones, and perhaps a generally slower pace. “The biggest
change I’ve seen over the last 25 years, so
far as our particular sector goes, is the revolution in communications”, observes
Peregrine. “It has meant an exponential
growth not only in what we can do, but also
in what we try to do. It’s both a challenge
and an opportunity to take advantage of
the technology we now have to give our
Members better information to enable
them to improve their business.”
and although we suffered a fall in our investment income during the recent credit crunch,
our conservative investment policy stood us in
good stead.”
TT Club was in fact one of the very first organisations to introduce e-mail as a means of internal
and external communication. “We moved quite
rapidly away from ticker-tape and telex machines
once email took off”, Peregrine notes.
Another change the industry has seen, has been
the rise in regulation, particularly in health and
safety, which Peregrine does not altogether welcome. “There is, frankly, too much regulation in
the industry generally, quite a lot of which does
not necessarily achieve its objective and hinders
effective international trade. What I’ve learned
over the years is that it’s far better to develop a
culture of good practice within an organisation
or industry, and then regulation is less likely to be
imposed from the outside or at least can be
aligned to business benefit. That’s one thing I
think the TT Club has done a lot to encourage
amongst its Members, by keeping them
informed of good practice and exchanging ideas
on reducing risk in their operations.”
Reassuring Stability
Global Explosion
But despite the radical changes in communications, there has been a reassuring stability to TT
Club during Peregrine’s time there. For 41
years, it has been managed by Thomas Miller, a
management services company which itself will
be 125 years old next year. “I think it’s the fact
that we are a mutual, not-for-profit organisation
that gives us that stability”, says Peregrine. “We
are not so subject to the vagaries of the market,
The late 1980’s was the period when many trade
barriers came tumbling down. Globalisation was
a word hardly used in the vocabulary in 1984, but
the change in the political landscape brought
about by the fall of Communism in Europe, the
collapse of the USSR, and the opening up of the
Chinese economy, accelerated the explosion in
global trade. This of course meant learning to do
business with countries where established west-
ern practices were unknown. Peregrine acknowledges this has been a tremendous challenge
over the last couple of decades. “The theory that
one set of rules will be obeyed by all countries is
difficult to put into practice. For example, in the
international transport industry, it has taken many
years to thrash out what could become a common sea carriage convention – the ‘Rotterdam
Rules’ – and there is still some way before uniformity may be a reality.
“One thing the last 25 years has taught me is the
value of understanding other people’s way of
thinking. Where we appreciate different opinions, we have a good chance of being able to
present our arguments in a way that will be easier
for all to understand and accept.”
Own Ideas
Being able to work with people globally, and playing a part in influencing the way things are done,
are two things Peregrine has found very rewarding about working for TT Club. “It is the sort of
place where you can develop ideas and drive
things forward yourself: of course you don’t
always succeed, but when I feel I’ve played a part
in changing legislation and jurisprudence, or
improving some aspect of working practices, I do
get a real feeling of satisfaction. It may not have
my name on it, but I know it was something I personally achieved.”
09
House to House December 2009
New regulatory
compliance regime due
for inception in 2012
USA bodily
injury claims –
Medicare
In the following article Ian Rosenthal,
compliance officer for the Club,
explains the main objectives of new
compliance laws and what impact
they will have on TT.
A new law in the USA
enables the authorities
to impose fines of US$
1,000 per day for failure to
report bodily injury claims
to Medicare and allows
Medicare to claim double
damages for failure
to reimburse them.
Solvency II is a Europe-wide exercise aimed at
bringing together insurers and reinsurers under
one regulatory regime - currently there is lack of
comparability between the amount of insurance
capital required, used and disclosed throughout
Europe. Solvency II becomes effective from
October 2012 and introduces new legislation
across Europe to improve insurance capital adequacy and risk management - resulting in a capital
requirement that is more reflective of the risks being
run by insurers and to better protect policyholders.
Solvency II regulation pre-dates the recent financial
crisis in the banking industry but European regulators implementing the new rules will be expected
to learn lessons from the events of the past year.
Impact on TT Club
TT is and will be required to be a well capitalised,
financially strong business that manages its risks
well and whose governance processes are
transparent to its members, potential members,
brokers and regulators. The new rules will specify
precisely how this is to be achieved and so will
require the Club, along with other insurers in
Europe, to amend and update its internal
processes and procedures. All of this will result in
a Club that can continue to maintain an adequate
capital position that can act as a cushion against
potential losses arising from risk exposures.
The regulations will require all insurance firms to
publish a Solvency and Financial Condition
Report annually. The report will contain information that will enable third parties to analyse the
Club’s solvency and financial status. This means
that the way the Club, along with all other
European insurers, manage risk and its capital
position will be much more transparent.
The new regulations will allow the report to be
seen by intermediaries, trade associations, financial analysts, rating agencies, policy holders, the
supervisory authorities, and of course, other
insurance undertakings. From 2012, European
insurers will be united by a single set of rules governing what constitutes an acceptable level of
insurer creditworthiness.
It is expected that the report will include the following types of information:
I
Material changes that have occurred in the
firm’s business written, risk profile, solvency position or system of governance since the last reporting period
I Performance from underwriting & investment
activities
I Operating & other expenses
I Assets, technical provisions & other liabilities
I Own funds, minimum & regulatory capital requirement and any non-compliance thereof
I General governance arrangements & the firm’s
internal control framework
I Risk management systems including a description of how each of the following categories
of risk exposure are identified, measured, monitored and managed, along with information about
the sensitivity of risks to the solvency position and
changes that may have a material effect on the
business:
a) Underwriting risk (e.g., the risk of loss, or of
adverse change in the value of insurance liabilities, due to inadequate pricing and reserving
assumptions)
b) Market risk (investments are subject to market
risk, i.e., volatility of market prices of assets, liabilities and financial instruments)
c) Credit risk (fluctuations in the credit standing
of issuers of securities, counterparties and any
debtors to which the Club is exposed)
d) Liquidity risk (the risk that the Club is unable
to realise investments and other assets in order
to settle its financial obligations when they fall
due)
e) Asset/liability management risk (the structuring of assets that ensures the Club holds sufficient cash and diversified marketable securities
of an appropriate nature, term and liquidity to
meet its obligations as they fall due)
f) Operational risk (the risk of loss arising from
inadequate or failed internal processes, or from
personnel and systems, or from external events)
g) Any other material risks.
Club Members may face these stringent penalties
for failure to comply with the Medicare, Medicaid
and SCHIP Extension Act of 2007. The Act applies
to foreign entities as well as US companies.
Medicare is a US government funded health
insurance program. The beneficiaries are US citizens who are over 65 years of age or under 65
years old and are entitled to Social Security
Disability benefits or receiving medical care
within the United States or citizens with end
stage renal disease.
Congress recently enacted the Medicare
Secondary Payer Statute (MSP), the aim of
which is to reduce Medicare costs by moving the
burden for health care expenses from the tax
payer to private insurance carriers. MSP provides Medicare with a right of reimbursement for
injury related medical expenses from relevant
insurers or self insureds. This will involve insurers
of worker’s compensation, automobile and liability insurance (including self insurance and no
fault insurance), all of which are now considered
to be primary payers, making MSP a secondary
payer. The law states that no Medicare payment
is to be made where health care expense has
been made, or can reasonably be expected to be
promptly made by a primary payer.
The Act also requires all claims involving payments
to Medicare beneficiaries to be reported. It does not
matter where the injury occurred or if liability exists.
The report must be made within the quarter during
which the primary payer determines the claimant is
a Medicare beneficiary. A failure to properly report a
claim may result in a penalty of US$1000 per day,
per claim being levied against the Responsible
Reporting Entity (RRE). In addition, the government
may recover double damages from the primary
payer if they fail to make appropriate reimbursement
to Medicare if it has made a conditional payment.
continues on page 10
10
House to House December 2009
Rotterdam Rules
These new requirements will make the handling
of bodily injury claims in the USA more complex
and perhaps difficult to settle in cases which will
involve future medical care, or when there are
multiple defendants.
What does this mean for TT Club Members?
If a bodily injury claim involving a US Medicare
beneficiary is brought against a Club member
(the member does not have to be a US based
company) then the member may well become an
RRE and need to report the matter to Center
for Medicare & Medicaid Services (CMS).
Thereafter, regular reporting of all such claims will
be required. The Club being an Indemnity Club,
is not considered to be an RRE and will not be in
a position to report the claims on the Member’s
behalf. Such reporting requires the RRE to be
registered with CMS. In view of the complexities
of this Act, it is suggested that members take
advice from their US counsel should they be
involved in a third party bodily injury claim
brought against them by a Medicare beneficiary.
We also recommend that Thomas Miller
(Americas) Inc. in New Jersey or Thomas Miller
Insurance Services in San Francisco are advised
immediately of any bodily injury claim arising in
the USA which is likely to involve the Club, so
that the necessary steps can be taken to protect
the member’s interests.
Young talent
recognised by FIATA
young international
freight forwarder
of year award
The TT Club is running a series of presentations
on the Rotterdam Rules for Members and brokers at key locations around the world. These
presentations aim to generate a clearer understanding of the impact the Rotterdam Rules
might have. The first three of these presentations
have been held in October and November 2009
in London and Hong Kong and attracted more
than 165 delegates.
The TT Club presentations comprise of three
parts of 45-60 minutes and in particular cover
the following subjects:
I
Part I: Application, volume contracts and carriage documents
I Part II: Defences and limitations; and
I Part III: Multimodal transport, maritime performing parties and how TT Club Members are
affected.
The presentations consider the Rotterdam Rules
through analysis of their text, comparison with
other carriage conventions (in particular the
Hague-Visby Rules), diagrams and practical
examples. On all occasions, Members and brokers have engaged in lively discussions. Here are
two case examples:
‘Goods are to be carried from Antwerp to Rome.
The parties agree carriage first by sea from
Antwerp to Genoa, then by road from Genoa to
TT Club Sponsors Award for 11th Year
Running
The eleventh Young International Freight Forwarder of the Year Award, held on 24 September
at the annual FIATA Conference in Geneva has
been won by 27-year-old Alina Wenzel, a shipping
and forwarding agent with Schenker Deutschland AG, based in Regensburg, Germany.
Regional winners were South African, Natasha
Persad for Africa / Middle East; Mexican, Ernesto
Arevalo Schoedl for the Americas; and Singaporean, Wee Liang Gerard Er for Asia / Pacific.
The award, which has been sponsored by TT
Club since its inception, is recognition by FIATA
and the participating sponsors of the need to develop quality in the industry and to reward young
talent with valuable training opportunities.
From left to right:
Andrew Kemp (TT Club), Alina Wenzel (YIFFY 2009
winner) and Mr William Gottlieb (President of FIATA)
Speaking at the award ceremony, TT Club’s
General Manager (Asia Pacific) Andrew Kemp,
Rome. In spite of this agreement, the carrier
decides to carry the goods by road all the way
from Antwerp to Rome. The goods are stolen at a
motorway service station in Belgium. Which rules
apply to this theft (assumption: the Rotterdam
Rules are in force in Belgium or Italy)?’
‘A Transport Operator assumes liability for carriage
of a machine ‘door to door’ from the USA to Hong
Kong and instructs a Hong Kong terminal to handle
the goods on arrival at the Hong Kong port. A
stevedore, who is employed by a subcontractor of
the Hong Kong terminal, in an act of negligence,
drops the containerised machine, which is
deemed a total loss. Cargo insurers sue the
Transport Operator, the Hong Kong terminal, the
terminal’s subcontractor and the stevedore. Which
of the four defendants can rely on the Rotterdam
Rules liability limits (assumption: the Rotterdam
Rules are in force in the USA and in Hong Kong)?’
If you are interested in discussing these examples or many other questions on the Rotterdam
Rules, please contact:
Ian Hyslop
[email protected]
020 7204 2650
or
Peter Stockli
[email protected]
020 7204 2058.
said, “The TT Club are proud to have been able
to continue their sponsorship of this prestigious
award, and it is with pleasure that we are able to
celebrate the four regional winners and the
eleventh overall Young International Freight Forwarder of the Year”.
The award offers the winners a chance to undertake practical and academic training, including a week based at the TT Club’s regional centres in London, Hong Kong or New Jersey; to
attend the ‘Insight into Transport Law and Insurance’ course in London; and a week-long course
at an IATA training centre.
In his address, Andrew Kemp outlined plans to
make the award more attractive to a larger number of National Associations and candidates.
“We would very much like to make the award a
challenge that enables individual candidates to
call on their own day-to-day work experience,
whether they work for a small customs agent or
a multi-national, multi-functional operator.”
11
House to House December 2009
New starters
Graham Hooper is a cargo underwriter of 25 years with a wide
experience in developing web & administration systems. He joined the TT
Club London office in November as a Senior Cargo Underwriter working
alongside Ian Hulley and the UK team.
Graham is a cricket fanatic who also has an interest in the UK and Mediterranean history. Before TT Club Graham worked for NMU (part of Watkins
Syndicate / Munich Re) where he was a Marine Manager focusing on the
logistics industry in particular.
Supply Chain
Asia Awards
Calvin Graham joined the TT Club London office in November as a Risk
Analyst. He has a master’s degree in Manufacturing Engineering from
Durham University which was based around process control, reliability and
decision making. Some of this was studying an existing six-sigma doctrine
with the rest of the course and the final year focussing on forecasting reliability and predicting breakdown methods. Calvin then went on to spend three
years working for the CRU as a Commodity Analyst before joining TT.
Outside of work, Calvin likes to collect LP’s, play numerous musical instruments and read history literature.
Ian Hulley has 34 years experience in Marine Underwriting, latterly with
Navigators Group and joined the TT Club London office in July 2009 as a
Senior Underwriter. He began his career with Eagle Star Insurance in
Manchester where he grew up as a Man United fan holding Season
Tickets for 16 years before moving 'down south'.
Ian enjoys cooking, gardening and playing golf - occasionally beating his
two grown up sons.
Lucy Browne has over eight years experience in the marketing arena, Lucy
joined the TT Club London office in September as the Marketing Coordinator and has gained the majority of her experience working for Pioneer
Global Investments in the Sales and Marketing team and for GMAC as Marketing Executive in their Melbourne office.
Fergas Wong presents the award for Supply
Chain Visionary of the Year to Mr. Ajay Mittal,
Chairman and Managing Director of Arshiya International Ltd at the Supply Chain Asia
Awards, Singapore, on 12 November 2009.
Lucy completed her Bachelor of Business degree at La Trobe University in
Melbourne and is a competitive horse rider who also enjoys playing netball
and travelling.
Seasons
Greetings
The Directors and staff of the TT Club hope that
this year has brought you happiness and good
cheer, and we extend our warm greetings for
2010.
The Club will be using electronic greeting cards
this year and consequently have made a charitable donation to UNICEF.
Ewa Sliwinska joined the TT Club London office in November as an
Underwriting Technician. After completing her Masters degree in Social
Geography and Economy at the University of Lodz in Poland, she gained experience working in the tourism and finance industry and has joined us from
HCC Global Financial Services in Barcelona where she was an Underwriting Assistant.
Ewa can speak Polish, Portuguese, Spanish and English and can understand German and Russian. When not working Ewa enjoys photography
with an interest in art, cinema, music and travelling.
James Wang joined the TT Club New Jersey office in November as a
Claims Executive. His experience in the industry has been obtained at Senatorlines GmBH, Hanjin Shipping Company Ltd, P&O Nedlloyd Ltd, and
Maersk Inc where he worked as a Claims Manager handling general cargo
and military claims, litigation matters, and major casualties. James has a B.A.
degree in Political Science from Pennsylvania State University and is planning
to continue to pursue and complete his Law degree on a part-time basis.
In his spare time, James is an avid snowboarder and tries to visit a different
U.S. based snowboard resort at least once every year.
Jemma Greatwood has over eight years experience in the mortgage industry and joined the TT Club London office as an Underwriting Technician
in November. She has worked for several mortgage companies and brokers
assisting with underwriting duties and in her last role she was responsible
for providing support to the top performing advisor.
Whilst not in the office, Jemma is involved with the Air Training Corps
where she has gained the rank of a flight sergeant. She also enjoys designing personalised t-shirts for her family and friends.
Industry Events Worldwide
For a complete listing of industry events visit www.ttclub.com
December
01-04 Shanghai Marintec China UBM
07-09 Doha International Petroleum Technology Conference IPTC
08-09 Amsterdam Ports & The Environment MCI Media
09-14 Shenzhen China (Shenzhen) Intl. Logistics & Transportation Fair SL & SCMA
January
26-27 Singapore Breakbulk Asia JOC
28-29 Sydney 4th Intermodal Asia (date change from Feb) TEM
February
02-04 Brussels Logicon WBR
09-10 London Supply Chain Summit Retail Week
23
Stockholm 2nd Safe Cargo Handling Seminar ICHCA
23-24 Amsterdam Ro-Ro Shipping Informa
24-25 Stockholm GreenPort Greenport
March
01-02
16-17
16-18
24-26
25-26
Long Beach TransPacific Maritime JOC
Copenhagen Green Ship Technology Informa
Shanghai TOC Asia Informa
Rotterdam Council of Supply Chain Management Professionals - Europe CSCMP
Mauritius 4th Indian Ocean Ports & Logistics TEM
April
13-15
14-16
19-22
26-29
Berlin World Retail Congress EMAP
Mobile Inland River Ports and Terminals Conference IRPT
Perth Global Ports & Marine Operations TEM
Casablanca ICHCA International Biannual Conference ICHCA
May
01-03
18-20
Buenos Aires Expo Comex - Export Trade Exhibition Expotrade
Antwerp Breakbulk Europe JOC
June
03-04
07-11
08-10
08-10
Ho Chi Minh City 8th ASEAN Ports & Shipping TEM
Athens Posidonia Posidonia
Valencia TOC Europe Informa
Shanghai Air Cargo China Transport Logistics
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