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Pilferage on FCL or LCL with Seals intact

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  • Pilferage on FCL or LCL with Seals intact

    Hello everyone, I just would like to solicit your ideas on pilferage matters. We are currently experiencing huge losses due to pilferage on our shipment with some details below:

    1) Product: Pharmaceutical Product (Drugs)
    2) Distribution Restriction: Must be with doctor's prescription.
    3) route: Thailand to Philippines
    4) Container Status: No damage, seals were intact prior to opening.
    5) Loss: one (1) whole top layer of the cargo.
    6) frequency: three consecutive shipment
    7) period: started Nov 2007 to Feb 2008

    If there's anyone who can provide some idea or link, I would highly appreciate.
    Thank you for your help.

  • #2
    Re: Pilferage on FCL or LCL with Seals intact

    Originally posted by jgsolo734 View Post
    Hello everyone, I just would like to solicit your ideas on pilferage matters. We are currently experiencing huge losses due to pilferage on our shipment with some details below:

    1) Product: Pharmaceutical Product (Drugs)
    2) Distribution Restriction: Must be with doctor's prescription.
    3) route: Thailand to Philippines
    4) Container Status: No damage, seals were intact prior to opening.
    5) Loss: one (1) whole top layer of the cargo.
    6) frequency: three consecutive shipment
    7) period: started Nov 2007 to Feb 2008

    If there's anyone who can provide some idea or link, I would highly appreciate.
    Thank you for your help.
    Can you provide the following additional information .

    1. Are you experiencing shortage / pilferage for both FCL and LCL shipment ?

    2. Who perform container clearance at port of arrival ?

    3. Who check / quantify the container seal and is the seal number check against the shipping document ?

    4. Who confirm the short landed or pilferage ?

    5. Who and where is the cargo unstuffed from container ?

    6. Is this a CIF shipment ?

    7. Have the shipper or supplier been notified of the shortage / or loss in earlier shipment ?

    8. Any counter measure taken by them & what are the action plan ?

    Provide the information from 1-8 , then we will try to analyse the problem ?

    TQ

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    • #3
      Re: Pilferage on FCL or LCL with Seals intact

      I think once you have answered the questions from Neo, the potential cause of the loss will become clearer. But it sounds to me, that the loss might be at the origin rather than the destination.
      Rob O'Byrne
      Site Owner & Sponsor

      | Supply Chain Consultants | Supply Chain Conference | Supply Chain Education |

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      • #4
        Re: Pilferage on FCL or LCL with Seals intact

        Originally posted by Neo View Post
        Can you provide the following additional information .

        1. Are you experiencing shortage / pilferage for both FCL and LCL shipment ?
        Ans. FCL yes, LCL (so far none yet), However there is one incident that our supplier loaded the cargo at LCL area but FCL, result is the same, some are missing. Additional info: Supplier is an affiliate of our company.
        2. Who perform container clearance at port of arrival ?
        Ans. Our Accredited broker serving for 10-years.
        3. Who check / quantify the container seal and is the seal number check against the shipping document ?
        Ans. Seal was quantified by an accredited adjuster of our insurance. Broker and our team checked the seal number against the documents, we even kept the seal.
        4. Who confirm the short landed or pilferage ?
        Ans. The warehouse receiving personnel of our distributor witnessed by our broker, the adjuster, distributors' officers and ourselves.
        5. Who and where is the cargo unstuffed from container ?
        Ans. Cargo was unstuffed at the warehouse of our distributor by our broker witnessed by ourselves.
        6. Is this a CIF shipment ?
        Ans. Yes
        7. Have the shipper or supplier been notified of the shortage / or loss in earlier shipment ?
        Ans. Yes
        8. Any counter measure taken by them & what are the action plan ?
        Ans. They changed the forwarder, shipping line, and the trucker. According to them, this is happening only to us. I also explained that this is only happening if the cargo is from Thailand to Philippines among our other importations.

        Action Plan (Philippine side)
        Short Term
        1. Changed the broker from conventional (cargo release then hire trucking services) to inland logistic solution (cargo release and delivery to warehouse).
        2. Changed from FCL to LCL

        Long Term
        1. Change BL info from detailed to general product description
        2. Change unit from qty. to weight.
        3. Secure commitment from shipping line in terms of responsibility w/in port.
        4. Secure commitment from broker for responsibility upon release at port to warehouse.

        Though I'm not confident that this will secure our cargo 100%. Any opinion is much appreciated.

        Provide the information from 1-8 , then we will try to analyse the problem ?

        TQ
        We have another incoming shipment this weekend, this time it's LCL, so we are on a wait and see mode.

        Thank you guys for your support.

        Comment


        • #5
          Re: Pilferage on FCL or LCL with Seals intact

          igsolo734 ,

          Use this counter measure to handle your next shipment and let us know the result .

          Immediate Counter Measure .

          1. Should there be any short landed qty , you should immediately request your shipper or your affiliate company to physically check their warehouse inventory to confirm the qoods and qty actually shipped out .

          2. You should request your supplier to provide you a container loading plan and also photograph to be taken during loading and after loading and have it email to you for each shipment .

          3. Request your shipper to have double outgoing confirmation check on qty each shipment to you . Also request for container stuffing checklist .

          4. From the next shipment onwards you should witness the checking and unstuffing of the container .
          * Check the seal condition and serial number of the seal against the packing list .
          * Before unstuffing from the container , take pictures of the contents in the container . Check the arrangement of cargo , packing materials condition and stacking height of products on pallet and note for other discrepancies .

          5. FCL shipment is encourage because there is no mixed cargo and you will have direct control over the container . After container clearance request this container to be hauled to your distributor's warehouse so that you can witness the unstuffing exercise direct from container . Warehouse personnel should not unstuff the container without your presence .
          * No unstuffing at the port should be carrieed out by your agent until you find the root cause .

          Probable Cause : Receiving end .

          Hope this helps .

          Comment


          • #6
            Re: Pilferage on FCL or LCL with Seals intact

            Neo,

            We did more than a couple of shipments using LCL, we never experience any loss during those shipments, however, we cannot maximize our shipment with minimal cost.

            We made several meetings with the shipping line (Phils. representatives) and our broker regarding the proper documentation needed to have our container (under FCL) strip at the port.

            The shipping line (Phils. representatives) suggested CFS/CFS terms. This morning, I received an email from our affiliates that the shipping line (Thailand office) refuse the CFS/CFS terms and suggest CFS/CY terms.

            Our affiliate suggest to use another carrier, so I tried to contact another shipping line and informed me that we need to write them a letter for approval of CY/CFS terms.

            Is CY/CFS or CFS/CFS not a regular thing for shipping lines?
            I just wanted to be enlighten on this one.

            Thank you all for your support.

            Comment


            • #7
              Re: Pilferage on FCL or LCL with Seals intact

              Glad that you have solve your shipment shortage problem. CY-CFS is not a commonly used shipping term in my region. However companies with IPO status do use CFS as a shipment transit point especially for dutiable cargoes.
              Maybe others in this forum can further feedback on your queries.

              Rgds

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