How to Reduce Accidents and Insurance Claims

Andrew Huxley TT Club established expertise | 1

Agenda

TT Club Cost of Claims Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

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Governed by the industry for the industry

established expertise | 3

Agenda

TT Club Cost of Claims Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

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Cost of accidents

1 8 to 36

Collateral & reputational damage Emergency supplies Increased inspection & maintenance Operational delays Loss of time (especially management) Increased training & procedural changes Temporary labour

LOSS OF LIFE. established expertise | 5

Agenda

TT Club Cost of Claims Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

established expertise | 6

Claims analysis overview

Analysis of the main causes of claims: Includes last 5 years data 2009 – 2013 All claims over US$10,000 6,889 claims Includes all claim types: − Property − Liability − Bodily injury

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Ports and Terminals Main cost cause categories

12% Operational 12%

Maintenance

76% Weather

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Agenda

Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

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Bigger ships and bigger and more cranes

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Ports and Terminals Operational issue costs Wharf Crane

5% 1%

Lift Truck

5% 21%

6%

Yard Crane Systems & Processes

8%

Theft Truck/ Vehicle 10%

16%

13%

Ship in Port Straddle

15%

Single Person Incident Other

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Ports and Terminals Wharf crane issue costs Boom to ship collision

6% 1% 13% 35%

Other Spreader, Hoist Issues Other Collision Weight, twistlock, cell guide issue

14%

Stack Collision 15%

16%

Twin Twenty Issue Other

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Boom collisions

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Boom collisions

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Ports and Terminals Boom to ship collisions – Loss prevention 35% of quay crane claims costs Totally preventable with quay crane boom anti-collision sensors Laser sensors – www.sick.com

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Twin Twenty issue

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Ship stack collision

established expertise | 17

Snag load

established expertise | 18

Bulk unloading grab

established expertise | 19

Ship damage by grabs and bobcat

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Ports and Terminals Yard crane issue costs

3%

2% Stack Collision

5%

Other

Spreader/Twistlocks

90%

Gantry Collision

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Yard stack collision

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Ports and Terminals Stack collisions – Loss Prevention 13% of quay crane claims costs 90% of yard crane claims costs Totally preventable with a stack profiling system: www.abb.com www.tmiec.com

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Lifting the trailer and container

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Ports and Terminals Twistlock / weight issues – Loss prevention Spreader, twistlock, container weight & eccentricity issues 14% of quay crane claim costs 3% of yard crane claims costs Many preventable with twistlock load sensing technology Measures weight & eccentricity of each container Can be installed on any twistlock, on any spreader and on any equipment Suppliers: Lasstec – www.lasstec.com Bromma – www.bromma.com

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Twistlock load sensing Detects & prevents: Lifting of trailer or rail wagons still connected to container Lifting if not all twistlocks engaged Snag load situations − Container still locked with stack or stuck in cell guides

Slack rope detection after landing without box Measures and records: Each twistlock & total container weight − Safer handling of containers − Better ship planning to ensure trim and stability

Load eccentricity in single & twin lift − Help prevent trucks overturning − Can side shift spreader before exiting ship cell guides

Twistlock load cycles − Optimise twistlock replacement intervals − Spreader & crane life cycle management & overload tracking established expertise | 26

Ports and Terminals Lift trucks claim costs

2% 4%

Collision with Pedestrian

2% 1%

Other Collision

5% Dropped Cargo 8% Collision with Cargo 8%

Collision with Other Vehicle 70%

Tipping Forward Other Overturn established expertise | 27

Ports and Terminals Lift trucks – Loss prevention 16% of operational issue costs Prevention: Driver training Reversing beepers Reverse cameras Anti-collision sensors No pedestrians near lift trucks One way traffic flows Implement and enforce terminal speed limits

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Ports and Terminals Bad handling claims costs Alleged Damage

3% 2% 12%

Wet

Cause Unknown 46% 16% Wrong equipment used

Steel rusted 21% Other

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Bad handling

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Good handling

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Ports and Terminals Bad handling – Loss prevention 23% of systems & processing issue costs 46% alleged damage – can’t be disproved Prevention for alleged damage: Take photos of arrival & departure condition Use cameras on in/out gates. Prevention for damage: Equipment driver training (simulators) Use low loader when needed Store steel coils undercover Ensure slings in good condition Synthetic slings – no sharp corners

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Ports and Terminals Refrigerated cargo issues – loss prevention 16% of systems & processing issue costs Prevention: Store at correct temperature Pack it right Do not forget to plug in reefer Set correct temperature on reefer Fahrenheit or Celsius? Double check data Use EDI Maintain an audit trail Monitor – remote reefer monitoring Verify condition of reefer unit prior to loading established expertise | 33

Export coal terminal

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Bulk Terminals Systems & processes issue costs

7% Contamination

23%

Bulk weight errors 46% Pollution

Other 24%

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Bulk Terminals Cargo contamination – Loss prevention 46% of systems & processes costs Prevention: Segregation of different cargo types Systems to ensure no mixing of different cargo types − manual double checks − automation

Stockpile sprays to prevent dust contaminating adjacent cargos

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Bulk Terminals Bulk weight tolerances – Loss prevention 24% of systems & processes costs Issue is accuracy or inaccuracy of draft survey Prevention: Ensure no bulk weight tolerances in contracts If customer insists & draft survey used, ensure tolerance is not < 5%.

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Bulk terminal Pollution – coal dust

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Bulk Terminals Pollution – Loss Prevention 23% of systems & processes costs Environmental regulatory controls increasing Prevention: Automated stockpile sprays – controlled via weather station Transfer point sprays Enclosed warehouses, silos, tarpaulins Dirty water containment system

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Ports and Terminals Bodily injury claim costs Lift Truck 4%

4%

1% Yard Crane

11%

33%

Single Person Incident Truck/ Vehicle Wharf Crane

14%

Straddle Other Operational Issues 32% Systems & Processes established expertise | 40

Lift truck / vehicle collision

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Ports and Terminals Traffic management – Loss prevention 84% of injury costs caused by equipment and vehicle drivers Prevention: Traffic management procedures: − One-way traffic flows − Limiting vehicles & pedestrians in yard − Site induction procedures − Safe area for truckers to secure/unsecure loads − Speed limits set and enforced Technologies: − RFID system on all pedestrians and mobile equipment − Mobile equipment anti-collision sensors − Rear view cameras

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Dangerous Work practices

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Dangerous practices

established expertise | 45

Dangerous practices

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Ports and Terminals Safety awareness- Loss prevention 14% of injury costs caused by single person accidents Prevention: Safety awareness Tool box talks Safety lock out systems Good housekeeping

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Agenda

Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

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Ports and Terminals Maintenance issues costs Fire 5%

4%

1% 0% Structural integrity Chassis

8%

Spreader /grab /ropes /hoist 9%

50%

Engine/ gearbox Other Maintenance Issues

23%

Electrical Ship

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Ports and Terminals Fire issue costs Building 5%

1%1% 0%

lift truck

6%

Straddle

7%

Other vehicle 45%

7%

Ship Cargo on land Crane

28%

Fire (Other) Cargo on ship established expertise | 50

Building fire

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Ports and Terminals Building fires – Loss prevention 45% of fire claims costs Most due to electrical faults

Prevention: Site security Fire risk assessments Declare dangerous goods Install fire detection and suppression systems Test and inspect fire fighting equipment Statutory inspections of electrical installations Use available preventative technologies Thermographic surveys of switchboards No smoking policy Good housekeeping established expertise | 52

Reach stacker fire

established expertise | 53

RTG fire

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Ports and Terminals Mobile equipment fires – Loss prevention 43% of fire costs in port terminals occur to mobile equipment Most caused by hydraulic leaks Prevention: Good design – no hydraulic hoses near exhaust or turbo Good maintenance & good quality hydraulic parts Losses reduced with fire suppression for confined spaces: − Engine compartments & Electrical cubicles Low cost & effective US$1,000 to US$10,000 Can save a US$500,000 lift truck and a life

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Boom collapse

established expertise | 56

Bulk crane boom collapse

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Ports and Terminals Quay crane structural integrity issues 23% of maintenance issue costs Risks reduced with crane structural inspections: ILO Convention 152 requirement Use qualified structural engineers At least annually.

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Agenda

Claims analysis overview Claims analysis and loss prevention Operational issues Maintenance Issues Weather issues

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Ports and Terminals Weather issue costs Rain / flood 3%

2%1% 1%

Wind - cranes

10%

Wind - cargo 34%

13%

Ship in Port Wind - property Cargo overboard/ damaged Earthquake

15% 21%

Other weather Lightning

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Windstorm – crane blown along wharf

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Ports and Terminals Wind damaged cranes – Loss prevention 21% of weather damage costs Most incidents preventable with: Parking location of quay cranes Procedures to secure cranes Storm pins & tie-downs on all quay cranes All motors and brakes working at all times

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Windstorms Empty containers blown from stack

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Windstorms Empty containers staggered & strapped

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Ports and Terminals Empty containers– Loss prevention 15% of maintenance issue costs Prevention: Stack heights minimum Use locking cones and straps Place loaded containers on top of empties Stagger end stack height (pyramiding)

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Ports and Terminals Wind damage – Loss Prevention Refer to TT Club Windstorm II booklet Available at www.ttclub.com

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Ports and Terminals Loss Prevention Summary Training: Continuous safety awareness Enhanced focus on driver training (simulators) Procedures: Preventive not breakdown maintenance Better crane securing procedures & brake maintenance Structural inspections Ship movement & berthing procedures Security – theft Systems & processes – pack it right Traffic management Re-design/Technology: Wharf crane boom anti-collision sensors Wharf & yard crane stack profiling Mobile equipment travel anti-collision Fire suppression Container weight & eccentricity measurement. | 67

Andrew Huxley– Regional Development Director– TT Club [email protected] www.ttclub.com