2hDecember 2004

hHighlights

House to House

News and essential information for TT Club Members and their brokers

China & Hong Kong prepare for closereconomic partnership.

China Rules 04

Wonderful Copenhagen 06

YIFFA 08

Logistics 10

02/03

Patricia Ng, of theClub’s Hong Kongoffice, reports onthe new trade agreementsbetween HongKong and thePeople’s Republicof China.On 27 August 2004, eight months after

the full implementation of the Closer

Economic Partnership Agreement (CEPA)

between Hong Kong and China, the

Central People’s Government and the

government of the Hong Kong Special

Administrative Region signed a second

agreement in Beijing designed to

further liberalise trade in goods and

services between the two areas.

While much of the agreement relates to

the trade in goods, reducing tariff

barriers and so on, a substantial section

of the new agreement, known as CEPA

II, deals with the provision of services

and the mutual recognition of

qualifications. Under the new agreement,

the mainland government has agreed to

grant preferential treatment in eight

further service sectors, for example, the

provision of airport services using

information technology, patent and

trademark agency services, cultural and

entertainment services and with

employment intermediaries. It also

extends liberalisation in eleven other

service sectors which had already been

granted preferential treatment under the

original CEPA. These eleven sectors

include legal, financial and medical

services and also, more importantly for

members of the TT Club, logistics,

transport (both by land and sea),

distribution and freight forwarding

activities. Currently under the transport

services sector of CEPA, service

providers incorporated in Hong Kong,

such as container station and depot

operators are allowed to set up

wholly-owned enterprises in mainland

China to operate international ship

management services, storage and

warehousing for international maritime

freight, container station and depot

services and NVOC services. It has also

allowed the providers to set up

wholly-owned shipping companies in

mainland China to provide regular

business services for vessels that they

own or operate, such as; the issuance of

bills of lading, settlement of freight rates

and signing of service contracts.

In the logistics, transport and distribution

sectors, companies established in Hong

Kong may open up wholly-owned

companies in mainland China, providing

the same kind of services. Thus, a

warehouse and storage company may

set up a company to provide

warehousing and storage services in

China, while freight forwarders can open

up a freight forwarding company.

Logistics service providers in Hong Kong

can create a Chinese company to

provide a whole range of services

including road transport, storage and

warehousing, loading and unloading,

value added processing, packaging,

delivery, transport consultancy, agency

and management services as well as the

operation of logistics services through

computer networks.

The need for freight forwarding and

logistics services is increasing rapidly

after China’s acquisition of WTO

membership. Exports are expected to

rise by an additional 2.4% a year over

the first five years of accession, while the

effect on imports could be even higher.

According to the China Logistics

Information Centre, the logistics market in

China was worth US$ 350 billion in 2003.

The Hong Kong Trade Development

Council notes that many companies

have already formed joint ventures with

Chinese companies and it expects that

this trend will accelerate under CEPA.

It also believes that the two partnership

agreements will encourage further

investment by overseas companies eager

to take advantage of the benefits that

Hong Kong based enterprises now enjoy.

An information note on CEPA II is

available from the website of the HKSAR

Trade and Industry Department at

http://www.tid.gov.hk/english/cepa/cepa

2.html ; other details of both agreements

can be found on the Trade Development

Council’s website on

http://www.hktrader.net/200411/cepa/

cepa-index2003.htm

House to House December 2004

The grounding of JODI F MILLENIUM and

TAI PING within nine months of one another

at two New Zealand ports was

understandably high profile news,

especially in a country where such events

are few and far between. The New Zealand

government has reacted by proposing a

code of good conduct for regional councils,

port companies and others involved in port

operations. Considering the media

attention major incidents now receive and

the public demand for regulation, it would

not be a surprise to see other countries

follow suit.

According to the introduction of the draft

code, called the Port & Harbour Marine

Safety Code (PHMSC), one of the main

issues addressed is the “uncertainty as to

the precise legal duties and powers of the

various entities” that have resulted from an

“incomplete and fragmented statutory

regime”. Put simply it could be said that

the code is an attempt to set out and agree

‘who does what’ at ports and in harbours.

The code has its roots in the UK Port

Marine Safety Code and has a similar

purpose to the International Safety

Management (ISM) Code that is in force for

ship operators.

The clarification of roles and responsibilities

should assist all parties involved and enable

ports to demonstrate having achieved a

standard level of risk management by

compliance with the code. Compliance

with the code might therefore, assist in

defending legal action. If all parties strive

to achieve and exceed the standard,

hopefully the number of incidents and the

level of litigation between parties will be

reduced. The concern is that the code

could actually have the reverse effect by

increasing the amount of litigation.

The earlier reference to the ISM Code is

relevant as a case history has now begun

to develop that enables predictions to be

made as to what effect the PHMSC may

have. There was an initial fear at the time

of the introduction of the ISM Code that it

would result in cargo owners being able to

work around defences and limitations in

international conventions, such as the

Hague-Visby Rules and CLC. Could codes

such as PHMSC prevent port companies

and other operators relying upon exclusions

and limitations of liability? So far this has

not been the case but the ISM Code has

enabled claimants to obtain better clarity of

the events that occurred in the lead up to

and during an incident. This has assisted

claimants in making arguments that the

ship did not react properly or did not have

adequate plans in place. Where a

shipowner could in the past deny a claim

with fairly scant evidence it now has to

produce the paper chain that is part of ISM

compliance.

This point was demonstrated in the case of

EURASIAN DREAM, a claim by cargo

interests for loss of cargo by fire. The crew

failed to quench the fire in its early stages.

The claimant was able to show the

‘designated person’, as defined under the

ISM Code, had failed to provide sufficient

documentation and procedures to the

Master and crew with respect to fire

fighting. The absence of adequate

documentation to demonstrate that the

ship owner had taken reasonable measures

probably contributed to the weakening of

the due diligence argument. The issue of

due diligence impacts upon whether the

ship operator can rely upon standard

exclusions or limits of liablity.

The PHMSC includes a requirement that

the port nominates a designated person

(DP) “responsible for conducting a port risk

assessment and ensuring...the

management system is operating”. The

DP “must have direct access to the Board

of Directors”. A “catch 22” situation could

develop for the owners because if the DP

does not report issues to the board then

the port’s safety management system will

have failed, but if the relevant issue has

been reported the board will need to show

it has acted. Despite the fact that the DP

will not necessarily be a senior employee,

the DP’s actions or failure to act could

enable prosecutors and claimants to

pursue the company where it has not been

possible in the past. The DP’s knowledge

of an act, or his state of mind with regard

to something which was done or not done

might be attributed to the company and

could result in a liability for the company.

This will be dependent upon the relevant

Acts and the rules of the port company.

For a number of reasons it is in ports’

interests to comply with the PHMSC and

from an insurance perspective an improved

safety management system should reduce

the number of losses. The effect of this

reduction would be an improvement in the

port’s loss record. Further to this a port

that is not compliant with the code is likely

to meet with a reluctance from insurers to

provide cover at renewal. At the extreme a

port might not be able to find cover at all or

could expect to pay an increased level of

premium. Members should note that it is a

requirement of cover that they comply with

regulations relating to safety. This is an

understandable approach because it would

not be reasonable for the premium of a

member that has made the effort to comply

with the safety code to support the claims

of a member that is not compliant.

As with previous codes of this type, those

companies that are already operating

responsibly will probably comply with the

code fairly easily. Those companies not

operating within the code need to realise

they are likely to face increased liabilities

enforced by the judiciary in an effort to

reduce incidents through better safety

management systems.

A New Code for NZ Ports

The question of entitlement to delivery

under a “straight” (non-negotiable) bill of

lading (that is, one addressed to a named

consignee, rather than “to order”)

continues to occupy the attentions of

courts around the world.

On the one hand there is what might

crudely be called the US position: that

the named consignee is – in the absence

of evident fraud - entitled to demand

delivery even though he does not have

an original bill of lading in his possession.

On the other hand, many jurisdictions

take the view that a bill of

lading is always a

document of title, no matter how it is

made out, and that the consignee – even

if specifically named in the address box

– cannot demand delivery unless he

produces an original bill to the carrier’s

agent. These opposing views clearly

create lots of difficulties for shippers

who may believe that, if they are still

holding the bill of lading, they are

protected against non-payment, only to

find out that the consignee has

nevertheless taken delivery without

having to surrender an original bill.

This unsatisfactory position also creates

many problems for carriers, whether

shipowners or NVOCs, since it is unclear

which of the

two competing parties has the better

“right” to delivery. For this reason the

Club has consistently advised members

to proceed with the greatest of caution

when agreeing release of cargo carried

in accordance with a “straight” bill.

The position in the People’s Republic of

China has been even more confused,

with some courts agreeing that the

consignee had a right to demand

delivery, while others took the opposite

view. Even a ruling of the Supreme Court

did not help: its judgment stating that “a

straight bill of lading is not a document

of title”, resulted in much argument as to

whether delivery under a straight bill

could still be made without it being

surrendered. In the absence of clear

law about the rights of the

various parties, these

arguments left

carriers and

China rules on non-negotiable bills of lading

04/05

House to House December 2004

Cape size vessel the "SA Fortius' called at Port

Kembla partly laden with coal from Newcastle

NSW bound for Rotterdam. Whilst swinging

prior to berthing in the inner harbour, it struck

the coal loader. The coal loader was heavily

Eilanda Lui the face of Maritime & Port Authority of Singapore 2005 Calendar.

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

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NTS

JA

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20

05

20 BIFA Freight Service AwardsLondonwww.bifa.org

24 Chamber of Shipping DinnerLondonwww.british-shipping.org

15-16 Port State Control ConferenceLondonwww.lloydslistevents.com

20-22 ITM Conference & ExhibitionHoustonwww.itm-events.com

20-22 IRPT Annual ConventionNew Orleanswww.irpt.net

2-3 Trans Atlantic MaritimeJersey Citywww.joc.com/conferences

21-27 IAPH BiennialShanghaiwww.iaphworldports.org

16-17 TOC EuropeAntwerpwww.toc-events.com

22 IFW AwardsLondonwww.ifw-net.com

28-29 3PL Summit - AmericasChicagowww.eyefortransport.com

cargo-owners in the unenviable

position of having to cross a legal

minefield with their eyes blindfolded.

The problem has been recognised

by Chinese maritime and commercial

lawyers, who agreed that a firm rule

was necessary. The Shanghai law

firm of Wang Jing & Co has told us

that a recent meeting of China’s main

legislative body, the Commission of

Legislative Affairs of the National

People’s Congress discussed the

problem and reached consensus

that, in all future cases where the

Maritime Code of the PRC is

applicable, cargo delivery may only

be made against the surrender of an

original bill of lading, regardless of

whether it is a “straight” bill or an

“order” bill. In other words, the

Chinese courts have lined up with

the second group of countries.

This is a welcome clarification of the

position in the People’s Republic of

China. This consensus has now

removed the uncertainty and

confirmed that surrender of a

non-negotiable bill of lading is

necessary under the Chinese

maritime code before the consignee

can demand delivery.

Further details are available from

Wang Jing & Co’s website on

http://www.wjnco.com/download/wjc

ircular0401.pdf

This is an expanded version of an

article that appeared recently in the

TT Club’s free electronic newsletter,

TT Talk. Published around 15 times a

year, TT Talk brings news of

developments in maritime, insurance

and legal matters. If you would like to

receive TT Talk regularly and are not

yet on the mailing list, please send

an email with your name and your

company name to tt.talk@ttclub.com

with the subject line “subscribe”.

06/07

Even when a business is well

known and has a high degree of

brand recognition it cannot afford

to rest on its laurels and wait for

new business to walk through the

door, whether to replace business

lost or develop pastures anew.

This is the position in which the TT

Club, after 36 years, with a truly

enviable client list finds itself.

Alan Wilkins TT Club (left) and Klaus Eberlin from EIA.

Neils Aaskov TT Club (left) and John Dinesen Larsen fromMaersk Insurance.

Paul Neagle (Chief Executive of TT Club), Knud Pontoppidan (Executive Vice President of A. P. Møller-Maersk A/S) (right)and Bernd Menzinger (Deputy Chairman of TT Club Board) (left).

George Eddings from Holman Fenwick and Willan.

“Wonderful Copenhagen!”

Kjell Torseth from Wilhelmsen Insurance Services (left) andFrank Friel TT Club.

Frank Friel TT Club (left), Mads Poulsen from Kromann Reumert (right) and Kjell Torseth from Wilhelmsen Insurance Services.

Hergen Tantzen from Lighthouse Logistics Consulting GmbH& OcKG (right) and Klaus Prebesen A.P. Møller-Maersk (left).

House to House December 2004

Neils Aaskov TT Club (left), Knud Pontoppidan (ExecutiveVice President of A.P. Møller-Maersk A/S) (middle) and CraigNeame from Holman Fenwick and Willan.

Darren Carr from Aon (left) and Michael Krogsgaard fromA.P. Møller-Maersk A/S.

For this reason we continue to actively

promote our high service standards and

industry leading product portfolio.

Throughout 2004 TT has actively

engaged in 26 events on a global basis,

the clear objective being to

communicate the considerable benefits

of being a Member of TT Club.

The November Intermodal Transport and

Logistics conference and exhibition held

at the Bella Centre in Copenhagen is just

such an opportunity, combining the

placement of our corporate exhibition

stand at an event that drew 2,500

transport industry visitors during three

days and provided a superb venue for the

TT to host a lively discussion relating to

the insurance of the logistics process.

Despite a busy schedule we co-ordinated

a cocktail reception hosted by Club

director Knud Pontoppidan on the

evening of November 3. Some 60

brokers and TT Members attended at the

Admiral Hotel, illustrated in the photos.

ITL Copenhagen 2004, Bella Centre

Peter Stockli TT Club (left) and Paul Wilkinson from MaerskLogistics.

08/09

Anita van Kooten - Young International Freight Forwarder of the Year 2004

The YoungInternational FreightForwarder of theYear Award 2004has been awardedto a young ladyfrom the Netherlands.Anita van Kootenwas the Candidatefrom FENEX (theNational ForwardingAssociation of theNetherlands) and isan employee ofMAT Transport inZwijndrecht.

All entrants wrote on the subject of three

potential customers that had contacted

them for assistance and guidance

relating to the transport of their

products. Each of these potential

customers was dealing with their first

overseas sale, but they each had little

knowledge of transport or the countries

to which the goods had been sold.

The goods themselves were not exactly

easy items to ship, they were:

Molybdenum Pentachloride to Ecuador,

Intel Pentium IV microprocessors from

the United States and Rolled Sheet

Steel going to Mongolia.

All candidates were asked to provide

good advice to each customer on the

actual shipment of each product,

irrespective of whether an import or an

export shipment, and to take into

account all possible methods of

shipment from air, through road, rail and

barge to sea carriage in order to asses

the most effective method, or combination

of methods, to suit the products and the

needs of the exporter or importer. Cost

effectiveness and appropriate timelines

would, naturally, need to be taken into

account.

Anita’s dissertation took all of these

aspects into account in respect of each

of the products and destinations and she

clearly indicted why she chose to

transport the goods in the way she

mentioned, what documents were

required, the things that need to be

arranged before the shipment could

actually take place and what the

customer has to take into consideration.

She treated each product as a real

shipment and asked many questions of

the shipper and the receiver and she

provided differing quotations in order to

assess the best method of shipment.

Our congratulations go to Anita for her

efforts and the Award Steering Group

has selected one of the Clubs’ Asia

Pacific offices as the venue for Anita’s

two week practical experience. In

addition she will also come to London

for one week’s course on An Insight into

Transport Insurance and Law and she

will have a one week course on Air

Cargo with IATA.

Anita’s paper can be viewed on the TT

Club website: www.ttclub.com

For 2005 the award is being changed so

that there will be four regional winners,

one from each of the following regions:

Africa/Middle East, Americas, Asia

Pacific and Europe. Each regional

winner will be invited to the FIATA World

Congress to receive their regional

trophy. The International winner will be

chosen from these four regional winners

during the World Congress.

(From left to right) John Nicholls (Chairman Award Steering Group), Issa Baluch (President FIATA), Anita van Kooten(winner), Han van Os (Director General FENEX).

House to House December 2004

Coals fromNewcastleCape size vessel SA Fortius called at

Port Kembla partly laden with coal from

Newcastle NSW bound for Rotterdam.

Whilst swinging prior to berthing in the

inner harbour, it struck the coal loader.

The coal loader was heavily damaged

and the coal terminal sought recovery

of the repair cost at over US$10million

from the ship owner. The ship owner

then claimed an indemnity for the

liability it faced from the Port Authority.

The case was heard by the Federal

Court in Sydney and ran for 8 weeks.

The judge awarded damages in favour

of the Coal Terminal for the repairs and

rejected the ship owner claim for an

indemnity against the port.

The judge found that there was no

contract between the shipowners and

the port authority. Pilotage is provided

by the port and taken up by visiting

vessels as part of a statutory

arrangement only. Because of this

conclusion the judge did not need to

consider whether section 74 of the

Trade Practices Act had any application.

Section 74 implies obligations of due

care and skill into contracts for

services.

The Port was not liable under section

52 of the Trade Practices Act for

engaging in ‘misleading and deceptive

conduct’ in trade or commerce.

Statutory pilotage is not conduct of a

type that is “in trade or commerce”.

The judge confirmed the interpretation

of section 410B of the Navigation Act,

which is similar to the equivalent

English statute, by the Australian High

Court, in the “Oceanic Crest” (this case

was subsequently approved by the

House of Lords). That vicarious liability

of the ship owner for the negligence of

a pilot precludes liability on the part of

the pilot’s general employer, the port

authority. The judge confirmed the

additional immunity granted by section

85 of the Ports Corporatisation and

Waterways Management Act to “pilotage

service providers” for the acts of

persons “acting as a pilot”. The judge

rejected the argument that one can only

be “acting as a pilot” when one is

licensed (having found that the pilot was

not licensed). The judge considered the

apportionment of responsibility between

the shipowner and the port, to cater for

the possibility of a successful appeal.

His ultimate finding was that

responsibility (if it becomes relevant)

should be apportioned on a 60/40 basis,

in the shipowners’ favour. That would

only be relevant if the statutory

immunities and section 410B of the

Navigation Act were overruled.

The case may be the subject of an

appeal by the shipowner.

On a per capita basis, Australia’s reliance

upon road transportation is the world’s highest

and the road freight volume is expected to

double within the next ten years. This is

principally due to two factors: a rather

disjointed rail network and the vast distances

separating major cities - up to 2000 miles.

The enormous distances travelled by road in

Australia mean that fatigue related accidents

represent a major cost to the industry. The

increased use of technology, with GPS

tracking & vehicle monitoring, have led to

improvements in accident rates, as has the

pressure applied by Unions & Governments

with the recently introduced Chain of

Responsibility (COR) legislation.

The ‘COR’ legislation aims to make all players

in the chain accountable for the results of

their influence in the transportation of goods.

No longer, for example, can the supermarket

chain simply ignore the implications of

unrealistic time deadlines. Such deadlines are

passed down through the freight forwarder,

the prime contractor, the sub contractors and

often then to an owner-driver operator.

Invariably, the operator at the end of the

chain receives the smallest cut of the freight

rate and yet is exposed to the greatest degree

of pressure to meet deadlines, sometimes

resulting in accidents.

The insurance premium pool for heavy road

transport in Australia is in excess of

A$500,000,000 per annum and the size of the

market allows an organization known as

Trucksure to select road freight operators that

are actively working to address the major risk

issues involved in this part of the

transportation process.

TT Club supports the Trucksure facility by

offering cover for material damage and third

party property to trucks and trailers for

Australian road transport operators. The units

insured, usually prime movers & articulated

trailers, can be valued at up to A$600,000

and, in more remote areas, are configured into

road trains with a single prime mover pulling

numerous (up to 5) trailers. Trucksure has an

office in the New South Wales State capital of

Sydney and another in the regional transport

hub of Wagga Wagga, which is located

mid-way between Sydney and Melbourne.

Looking to the future, driver availability is

becoming a major issue with fewer younger

people opting for a life on the road. The

transport industry and Government have

implemented training and formal qualifications

in the hope that offering a recognized career

path in transport will encourage more young

people to take over from a dwindling and

ageing driver pool.

The future of road transport in Australia

remains bright with all the stakeholders

working towards a safer, more efficient and

profitable environment. Trucksure and the TT

Club are committed to playing an important

role in this future.

Road transport/Trucksure

is therefore, one way to fill the void of

uncertainty between the loss or damage of

product as well as the livelihood of the

principal.

“The requirement for carriers to accept full

value cargo carriage can make negotiations

difficult unless due financial provision is made

for this in the tendering process and insurance

protection obtained.”

The provision and ready availability of

extended liability cover is now a commercial

requirement which any logistics insurance

product has to recognise. This development

has led to a blurring of where the traditional all

risk cargo and cargo liability cover begins or

ends. While it is not suggested that all risk

cargo insurance is fated to end in the

foreseeable future, the insurance industry has

to recognise that, as the supply chain industry

looks to eliminate separate profit silos, it

cannot stand aside from such developments

and offer separate policies for the transport

business.

The Club is therefore, focusing its

acknowledged expertise to provide a single

point of sale, working with market leaders, to

offer a comprehensive, long term solution to

the increasingly complex area of transport

insurance. With a phased introduction,

initially to existing Members only, commencing

from1st January 2005, the Club is to deliver a

logistics product that provides a balance

between exposure and commercial

acceptability structured in such a way as to

meet the varying requirements of its Members.

A key factor in this development is a fresh

approach to risk assessment. The Club never

previously presumed to question an operator’s

ability to meet contractual obligations,

however experience has led us to reconsider

our approach to information gathering and

service offering by introducing a benchmark by

which companies can measure their facilities,

management and operational capabilities.

For further information please contact Alan

Wilkins on marketings@ttclub.com or +44 (0)20

7204 2655.

immune from the drive to eliminate

unnecessary costs, regardless of cargo type.

“As cargo producing companies increasingly

focus on core activities the percentage of

outsourced logistics continues to grow.”

Reference to the many trade journals and

papers serving the transport and logistics

industry provides detail of the ongoing

development of mergers and acquisitions that

continue without sign of any let up at present.

While this jockeying for position is inevitable

as companies look to provide the all embracing,

global ‘one-stop-shop’, the commercial

advantages of taking over traditional ‘in-house’

services and activities are not lost on either

party.

“The trend is however to reduce the number of

service providers to a single lead logistics

provider.”

The consequences for the smaller service

providers are, at best, a change in principal or,

at worst, the loss of that business. Either way

such developments have an impact on the

insurance industry as we begin to see the loss

of the smaller, non-specialist, operator in the

face of increased and increasing demands of

the new and larger service provider.

“The risks associated with the carriage and

warehousing of cargo have not changed but

the obligations on the service provider have.”

The risks of national and international carriage,

warehousing and distribution have not

changed with the development of logistics, but

the obligations undertaken by the logistics

service provider certainly have. The cargo

itself is still susceptible to the same loss and

damage – a contractual obligation that is

catered for and found in most standard freight

forwarding policies - however, the onerous

nature of a number of individual user contracts

is generally dictated by the principal who, in

outsourcing a number of former in-house

functions, is ceding an amount of self-control

as well as entrusting key commercial

relationships to a third party. If the service

provider fails to meet the service obligations

then both the principal and the customer suf-

fer as a consequence. Protection by contract

10/11

Perhaps imperceptible to some, others have

recognised new business opportunities in

transport that is evolving and quietly

revolutionising the industry. In this article Alan

Wilkins offers his view of some current trends

and developments taking place in the

transport industry and how they will impact on

insurers.

“The means to control cargo movement have

widened as shippers and cargo producers

increasingly outsource total responsibility to

logistic service providers.”

A factor in the development of logistics is not

so much the outsourcing of responsibility for

the carriage, warehousing and distribution of

products, a trend that forwarders have

witnessed and benefited from over the past 20

years or so, but how, because of enhanced IT

systems and technologies, this has been taken

to a higher level with the planning, design and

implementation of supply chain systems by

service providers. Service providers now

control the supply chain rather than the

shippers and cargo producers themselves.

Container shipping lines have not been slow to

realise the opportunity and most, if not all, of

the major container shipping companies have

now established their own logistics companies

to market their ability to manage and control

cross border logistics in addition to their well

recognised international freight services.

The obvious interest is to secure cargo for their

container fleets, for carriage on their vessels

and maximise their advantage in owning and

managing marine and inland terminal facilities.

The once traditional national warehouse and

distribution companies have progressively

expanded into international transport and

forwarding activities, principally through

acquisition, so making their logistics skills

more widely available.

Ports too, are marketing themselves as

logistics providers rather than solely as port

operators or terminal facilities. The logic is

simple. Why move goods through one facility

to reach another when distribution can be

arranged directly from the point of arrival?

All elements of the supply chain are under the

spotlight of improved efficiency and the

interface between sea, air and land is not

‘A Quiet Revolution’ Logistics

House to House December 2004

Following the 2002, 2003 network

partners and correspondents

conferences in America and Europe, the

Club hosted its Asia Pacific network

partner conference in Hong Kong in early

November.

TT Club’s objective was to ensure all our

network partners were up to date with

any policy wordings changes, claims

systems improvement and customer

service such as ClaimsTrac. An

important aspect of the conference is

the relationship building of the

international network as increasingly

claims necessitate multiple offices’

handling and expertise. The information

exchanged at the event enhances the

importance of maintaining high service

levels to meet Member needs.

The TT Club Network.

ABOVE: Left to right: Y.S. Ng (TT Club). S.H. Han (Hyposung), K.M. Kin (Hyposung), Grace Nobel(TT Club), Thomas Yan (Spica) and Capt. Saroch Sansook (Spica).

Andrew Kemp presenting the Hallof Fame Award to ex-MalaysianPrime Minister, Dr Mahathir at theAsia Logistics Awards/FTB Asia,Kuala Lumpur, October, 2004.

MountbattenDianna Tingg and Nick Mogno are two of

the newer faces among TT Club’s London

office, having started in March and

September, respectively. Dianna and Nick

are with TT as part of the Mountbatten

Internship Programme, a year-long

internship for young American and British

graduates. Mountbatten promotes

educational and business links between the

USA and the UK, with dual programmes in

London for Americans, and New York City

for Brits. The 51 American interns currently

in London (as well as the 200 Brits in New

York) work in a number of different

companies and industries.

The internship combines a full-time work

placement with an education and training

course – the Mountbatten Certificate in

International Business practice, which

includes business studies through the

University of Cambridge.

Dianna, from Tacoma, Washington, studied

international politics and economics at the

University of Puget Sound and worked in a

Seattle law firm before coming to TT. At

TT, Dianna works on the development of

internal software and databases, as well

as with the international claims team.

Nick graduated this May from Colorado

College, where he studied business and

economics. He also studied at

Maastricht University, and originally hails

from Golden, Colorado. Nick works with

TT’s marketing team.

“Mountbatten is a flexible, user-friendly

program which provides high quality US

graduates, who bring a new dimension to

our diverse London office” says Bob

Grainger, Chief Operating Officer of Thomas

Miller & Co, managers of the TT Club. “Our

interns have proved very helpful in

progressing projects in a number of areas.”

Thomas Miller and the TT Club look forward

to hosting more interns in years to come.

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The Managers of the TTClub hold ISO 9001:2000certification.

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communication and accessibility of staff.

We have been pleased with the level of

interest shown by our Members and brokers

in this project and are grateful to everyone

who has taken part. The results have been

largely positive. In the last four phases of

interviews spanning 18 months, the average

score for “overall satisfaction” levels

expresses as a percentage was 85% taking

all factors into consideration. The sample

graph above illustrated improvements made

during the period of the survey.

Whilst the value of this project is evident we

will continue to monitor satisfaction levels in

2005 and beyond utilising a shorter, improved

process that focuses on the main areas of

importance identified by you our Members

and brokers.

To find out more about TT’s Customer

Satisfaction Survey please visit our website

on: www.ttclub.com

Customer Satisfaction SurveyOver the last two years we have

undertaken extensive research to assess

the level of customer satisfaction with

TT product and service. This has

involved phone interviews with Members

and brokers drawn from a random

sample of our database.

The aim of this project was twofold: to

obtain feedback which can be used as a

key performance indicator for the TT

Board, and to provide information which

can assist in helping to refine and

improve upon existing products and

services, while providing direction for

future development.

The interview questions addressed all

aspects of TT operation, including:

underwriting, claims, quality of advice,

cover, documentation, risk management,

administrative support, credit control,

visual identity and website service.

Questions were also asked about

The Directors and staff of the TT Club

hope that you have each found something

of value or good cheer during 2004.

As we approach another year we extend to

you all our warm greetings and friendship in

the wish that 2005 will be happy and

successful year.

HAPPY HOLIDAYS!