The key to loss prevention is to run your business as if you have no insurance at all. You must take all prudent measures to prevent losses.

Below are some useful tips to help avoid cargo losses. Some insurance policies have clauses that expressly warrant that some procedures described herein are performed and strictly adhered to.

1. Loading, Stowage and Packing:

   1. Locking devices such as SEALOCK bars, TOPCLIPs , security tape and shrink wrap will seal ocean containers and packages, and will clearly demonstrate tampering or forced entry if theft or pilferage occurs, and therefore, demonstrate clear cause of loss.

   2. If any authority inspects your containerized cargo, instructions must be given to apply a replacement locking device immediately after such inspection, and the new bar number reported to Air & Sea. It is advisable to have a replacement locking device packed inside the ocean container, or your appointed agents should have an available supply.

   3. Conceal the nature of your cargo by using unmarked boxes or black plastic wrapping.

   4. Make video and/or photo records of loadings and unloading.

   5. Goods shipped in ocean containers should be palletized creating a floor clearance that will help prevent accidental leakage from soaking into the packaging.

   6. After loading an ocean container, nail plywood bracing or chicken wire across the opening prior to closing the container doors.

   7. Loading, stowage and packing should be planned to spread the weight and secured in such a way to prevent shifting.

   8. Where possible, cargo in ocean containers should have the most valuable items farthest away from the doors, and the least valuable nearest the doors.

   9. Before loading an ocean container, step inside, close the doors and look for daylight through holes in the door seals, walls, floor & ceiling

   10. Temperature controlled and perishable goods must be packed with adequate clearance so not to impede air circulation.

   11. Pack fresh food in sanitary conditions to prevent contaminations and infestation.

2. Storage

   1. Have certified alarm system installed with radio/cellular backup. Test monthly.

   2. Have a professional company install security cameras at optimum locations.

   3. Be aware of humidity and temperature of storage facilities making sure such conditions are suitable for your cargo.

   4. Do not store goods outdoors unless they are designed for outdoor use. Sun, rain and frost exposure can be very destructive.

   5. High value goods should be kept in a locked caged enclosure within a warehouse. Entry to such area should be by authorized personnel only using an access log.

   6. Install the most comprehensive security locks for all doors/windows/roof openings.

   7. Warehouses with raised docks prevent vehicles from ramming the shutters at night.

   8. Keep warehouse doors closed at all times except for loading/unloading.

   9. Avoid advertising the nature of your contents on your building

   10. When choosing a storage facility, Hire a professional surveyor for a security inspection, and comply with all recommendations.

3. Hiring third party service companies

   1. Make sure that all service companies operating for you or your agent’s are trained professionals who are properly licensed and insured.

   2. Make sure that you have written contractual agreements with all service companies and be familiar with the terms and conditions of such agreements.

   3. Do not waive liability or hold harmless any party either verbally or in writing.

   4. Hire a survey company to supervise and report on cargo count, condition, packing, unpacking, stowage, loading and unloading at various points of a voyage.

4. Hiring employees

   1. Use a professional staffing company to screen your employment applicants.

   2. Make sure that your employees are trained in your business practices.

   3. Request motor vehicle records, police background record and drug test for all new employees and update annually.

   4. Provide certain employees (drivers, managers, etc) with mobile communication equipment and make sure they respond to you at all times.

5. High value goods and goods shipped overland in dangerous regions

   1. Contract a professional armed security service to escort each individual load.

   2. Use team drivers for long haul transits and never leave the cargo unattended.

   3. Confirm transit route plans prior to trip commencement. Report any deviations.

   4. Enforce a regular communication procedure between drivers, security personnel and your office.

   5. Hide GPS or other tracking devices in the cargo (Not in the drivers cab)

6. Assureds operated trucks

   1. When picking up and delivering cargo, never leave a loaded vehicle unattended.

   2. All transit vehicles should have alarms with immobilizers.

   3. Avoid advertising the nature of your contents on your vehicles.

7. Receiving cargo at any point in transit.

   1. Match shipping documents with count, weight, seals and package numbering.

   2. Check seals, packages and containers for damage or tampering.

   3. Keep any temperature recording logs for chilled or frozen cargo.

   4. Have a camera handy to make a photo records of unloading and any damages.

   5. Mark comments of any inconsistencies on all shipping documents. Both driver and recipient should sign with a recorded date & time.

8. Releasing cargo at any point in transit

   1. Ask dispatcher to identify the drivers name and decal number that will be dispatched.

   2. When a driver arrives make sure that the information provided by his dispatcher is correct.

   3. Photocopy and file drivers license before releasing your shipment.

   4. Do not release shipments late in the afternoon or when ports are about to close.

   5. Do not release shipments without a formal document exchange.