TT Club’s General Manager, EMEA, Kevin King

TT Club seminar addresses complexity of freight liability in Russia

During the recent Trans Russia transport and logistics conference in Moscow, TT Club convened a seminar which outlined both the changing nature of the transport operator’s liability in Russia and the idiosyncratic nature of insurance conventions applicable in the region.

The seminar was lead by TT Club’s General Manager, EMEA, Kevin King and Kirill Berezov from the insurer’s long-established Russian network partner Panditrans.

TT Club believes that there is an urgent need for international freight forwarders, logistics companies and other transport operators doing regular business in Russia to understand fully the extent and nature of the liabilities that they bear when delivering customers’ freight in the country.

Increasingly the services which transport operators provide to cargo owners are expanding into areas beyond the straight-forward delivery of inbound containers, to such functions as cross-docking, warehousing, re-packaging, sub-assembly and distribution.

As a consequence, the liabilities for loss and damage to cargo, as well as third party claims, alter from the traditional norms with which they have been more familiar in the past.

Education is therefore required so as such transport operators do not, unwittingly open themselves up to the possibility of high value claims against which their previously adequate insurance cover may not protect them.

With more than 20 years as a player in the Russian freight liability arena, TT Club is well qualified to provide such an education.  The seminar provided both Mr Berezov and Mr King with the opportunity to address some of the issues which often present difficulties to operators in Russia.

“In answering some vexed questions, such as whether there is a limit to transport operator liability, why cargo insurance isn’t an alternative to liability cover and how careful risk management can avoid disastrous claims during a financial crisis and an upswing in criminal activity, we hope to assist operators to service trade to, within and from Russia more effectively,” said Kevin King.

Kirill Berezov added: “The rules on liability in Russia can be quite different from those in other jurisdictions and without specialised knowledge and advice, many transport operators may experience a short-lived foray into the Russian freight market”.