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Top Ten Risks Related to Container Terminals

According to TT Club, the top ten risk categories by insurance claim costs for container terminal operators are the following:

1. Quay cranes incidents

In container operations, the crane that is usually positioned near the edge of the quay is both a key asset and hugely vulnerable. It has remained for several years the single most costly insurance claim, with frequent incidents involving boom collisions, gantry collisions or stack collisions. Because of their importance it may be surprising that currently economically viable technologies are not more widely adopted.

2. Rain and flood damage

Much can be done to mitigate the potential and resultant damage of a storm. While it is critical to secure and tie assets, like cranes, or revise container stacks in the yard, a key risk remains storm surge and floods in general. Marine terminals are necessarily low-lying, so positioning more valuable equipment or goods to higher ground addresses the risks.

3. Straddle carriers

Manual straddle collisions and overturns, besides causing damage, usually cause serious bodily injuries. Like most incidents, these are commonly because of human error. While these are top-heavy items, with inevitable blind-spots, there are monitoring technologies available to ensure mechanical performance and also support user behavior and training.

4. Risk – lift trucks

This classification includes forklifts, empty handlers, top picks, side picks, reach stackers, etc. While risks are various, one that stands out is injuries to pedestrians. Keeping people away from machines is a simple mantra, where unavoidable procedures and technologies need to protect those at risk.

5. Risk – truck and vehicles

Smaller vehicles, including internal transfer vehicles, third party trucks and all other vehicles in the terminal require good traffic management procedures and enforcement. Collisions and overturns are still very common.

6. Risk – ship in port

Ships are prone to collide with the berth and on many occasions the crane as well. The terminal may have little control, although clear procedures and communications between all stakeholders (ship, port, terminal, pilot, tug etc.) may reduce the likelihood of such incidents.

7. Risk – yard crane

The main risk with yard cranes is stack collisions. This can lead to stack collapses causing crane, container, and cargo damage. However, the greatest concern is the injuries often resulting when a container falls on a waiting truck. The analysis shows that the introduction of technologies associated with automated stacking cranes may prevent such incidents. The same technology can also be installed on manual yard cranes.

8. Risk – fire

Some 44% of the fire cost in container terminals arises amongst lift trucks. These need detection and suppression systems in the engine compartments, as well as assiduous attention to proper maintenance. Cargo-related fires may be difficult to prevent on the limited information commonly available, but careful firefighting is critical in minimizing the potential damage.

9. Risk – theft

TT Club and BSI recently published their annual theft report. While generic, this highlighted the “insider” risk, which is prevalent in the terminal environment. The Club has previously highlighted the increasing use of cyber-crime to aid physical theft. Physical and system security is clearly crucial, alongside continuing awareness training and thorough checks for those allowed on site.

10. Risk – bad handling

Cargo in the custody of the terminal may become damaged. However, terminals also need to keep robust records to defend claims that may be asserted erroneously for which evidence of condition at entry and exit is required.

Aytac Akgul
Aytac Akgul was born and raised in Istanbul, Turkey. He got his Master’s Degree in International Transportation Management from State University of New York - Maritime College in December, 2012 and He got his bachelor of science degree in Transportation and Logistics from Istanbul University in June, 2010. He previously worked for Maersk Line in Istanbul, Turkey. He is now working for MTS Logistics, Inc. as a Business Development Manager since May 2015.
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