Loss prevention a must for perishables

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Transport operators dealing with perishable goods must adopt more disciplined loss prevention strategies, says David Heather, perishable trade expert and consultant to the TT Club.

Speaking at the Intermodal Transport & Logistics Conference in Rotterdam, Heather said: “If claims and losses are not kept under control the high cost of insurance combined with secondary, uninsured costs will have a direct influence on the profits of the operating company.”

He highlighted a milk and dairy produce distribution company as having suffered costs of insured and uninsured losses equivalent to 1.8% of its operating costs in one year. The low margins inherent in the transport sector, meant the losses equated to some 37% of the company’s profit.

Heather propsed a seven-point strategy of disciplines including recognition of high-risk operational areas; acceptance of a level of self-insurance through deductibles; and correct assessment of equipment values.

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