Lead seal, this seemingly insignificant small object is related to the security of container freight. Intermodal P&I Association TT Club believes that more attention should be paid to container lead seals as an integral part of the supply chain safety culture.
Theft losses are one of the top three causes of claims received by international freight and logistics insurance specialist TT Club each year. Identifying supply chain crime trends, peaks and hotspots is a key function of insurance companies, and issuing guidance to help companies mitigate such losses is also part of their remit. In its safety bulletin, TT Club highlights the importance of container lead seals as a fundamental tool for ensuring the integrity of global cargo transport.
There are many types of lead seals, from the basic plastic seal to the common bolt seal to the complex digital option, however, practitioners can easily overlook their importance in maintaining the integrity of the cargo and timely identification of theft.
“Whatever sealing mechanism is used to prevent theft, its effectiveness depends on how the process is managed.” TT Club Logistics Risk Manager emphasizes: “Supply chain managers must be aware of the limitations of various seal designs, but also recognize that whatever type of seal is used, its effectiveness depends on the accuracy of seal information. The safety culture must permeate the loading and unloading sites and other key links.”
In terms of liability, identifying whether the lead seal has been tampered with is crucial to help pinpoint exactly how the theft occurred, who was involved and where the goods were damaged or stolen. These practices can also be seen as guidelines for taking measures to avoid accidents.
An important consideration for expanding the use of lead seals is that almost all lead seals are currently single-use or plastic parts. Promoting its widespread use requires consideration of sustainability, especially as the industry is increasingly focused on environmental, social and governance (ESG) issues. When it comes to this limitation, TT Club looks at innovation in all areas of transport and logistics, and we are increasingly recognising the huge potential of “digital lead seals”, of which there are more and more on the market.