Page 19 from: January / February 2013
19January/February 2013
C o n t a i n e r t h e f t
slip from the RTT. Finally, the shipper is
informed of the shortage. The shipper assumes
the weight slip is from Hong Kong main port,
but the container is actually weighed at the RTT.
Higher insurance premiums
Mr Amin’s question is: ‘How did it come to the
scrap yard in the first place?’ He continues: ‘The
buyer told me there was no need for customs
clearance at the RTT as this container is headed
for mainland China. Generally, the port is
responsible for the safety of the containers. But
it seems there is easy movement of containers
out of this port, which could be because it is
considered a storage house. They could not
have arrived or move onward to their final des-
tination without permission, but I realised that
if a person could get a container in transit out
of the port or terminal into the scrap yard with
such ease, anybody could do anything and a
number of people in the supply chain could be
involved. But we need proof to support our
claims and, as mentioned, the seals are all intact
so we cannot hold anyone responsible.’
Also critical to this story, Mr Amin explains, are
the loading photos that the Ala Group’s clients
are required to send to the shipping line’s for-
warding agent. ‘I assume that the pictures indi-
cate certain things like the type of packaging
inside the container, the quantity of material
and the type of container. And with closed-
door photos you know if the seals are fixed in
the middle or at the bottom, which gives an idea
about access to that container, the type of
equipment required to offload the material, and
whether the material can be easily removed
from the container or not.’
When the shortages kept occurring, the Ala
Group started paying high-premium insurance
as per ‘A Clause’, which guarantees protection of
goods from the company’s warehouse to that of
the buyer. Mr Amin says they were paying six or
seven times higher for this premium rate than
for the normal rate. In about one-and-a-half
months, they faced three major shortages, so the
insurance company too gave up. ‘We have been
in this industry for 22 years and our reputation
is more important to us than money,’ says Mr
Amin. ‘We have worked hard to build a rapport
with our clients, and I cannot lose respect and
money because someone else is stealing mate-
rial. I have paid compensation for various losses
from 200 kg to 10 tonnes. In the end, we decided
to stop supplying to South China in late 2012.’
A loss to the industry
Currently, the number of container thefts in
South China is still regarded as ‘limited’ but
there is a belief that action needs to be taken
before the situation gets out of hand. The Ala
Group’s President feels it is a loss to the indus-
try as many others in the region are also facing
the same problem. In his opinion, the buyers
are not guilty; the government is also innocent
and is offering a facility at the port to store the
containers. However, he believes, the system
itself needs to be improved and the issue should
be brought more to the attention of the Hong
Kong government so it can provide necessary
security for containers in trans-shipment.
‘Everyone is aware that there are loopholes in
the system, but all parties involved are reluctant
to act,’ he says. ‘Some people with high-volume
‘While booking
a container,
the customer should,
as a policy, insist on
a new one.’
businesses ignore the problem because losing
one out of 100 containers seems insignificant
to them; some remain silent; others raise their
voices but soon give up; some people are for-
tunate enough to have insurance cover. We have
approached the BIR world recycling body to
discuss the issue and ask them to take positive
action to protect our business and industry.
BIR, ISRI and the CMRA are strong bodies that
governments would be willing to listen to.’
Recommended action
On a positive note, the Ala Group has come up
with an immediate response which it is recom-
mending to business associates and other
regional suppliers in the hope that it will effec-
tively help reduce incidents of theft. With con-
tainers manufactured over the past decade,
there is a hub bolt at the bottom called the cam
keeper. According to the group, suppliers
should insist on the seal being fixed on the bot-
tom cam keeper to prevent thieves from tam-
pering with the container as they would have
to break the seal to access it; and if they do so,
it is argued, one can hold the shipping line
responsible. ‘In certain cases, customs officials
could break the seal to check the contents,’ says
Mr Amin. ‘By law, the shipping line then has to
fix the seal again and the supplier has no con-
trol over this. It happens only in 10% of the
cases, but in the agreement with the shipper
there could be a clause stipulating that in such
cases they fix the seal on the cam keeper.’
‘Since we are dealing in scrap, shipping lines do
prefer to use old containers,’ adds the Ala Group’s
President. ‘While booking a container, the cus-
tomer should, as a policy, insist on a new one.’
And he concludes: ‘We urge everyone to join in
raising our voices against these unscrupulous
acts of theft to avoid further financial loss and,
most importantly, maintain good relations.’
Currently, the number of container thefts in South China is still regar-
ded as ‘limited’ but there is a belief that action needs to be taken
before the situation gets out of hand.
With containers manufactured over the past decade, there is a hub
bolt at the bottom called the cam keeper which, when properly app-
lied, can prevent container cargo theft.
In the Middle East, and in common with other suppliers, the Ala
Group received weight shortage complaints ranging from 200 kg to
over 10 tonnes in 2012.
RI_1-Container.indd 19 28-01-13 15:58
