Why Cargo Insurance is so Important!

By Karen Groff, President Roanoke Insurance Group Inc.

 

As part of a project to benchmark the safety of containers at sea, the National Cargo Bureau (NCB) recently completed a random inspection of 500 import and export ocean shipping containers and discovered that 55% had misdeclared, misplacarded and/or improperly secured cargo.

 

NCB inspects approximately 31,000 US export “haz-mat” containers per year on behalf of ocean carriers to ensure the safety of cargo being loaded on their ships; however, NCB does not typically inspect import containers arriving at US ports. Of the 500 containers included in this project, 49% of the imports and 38% of the exports containing dangerous goods failed inspection. Improperly secured cargo which could result in dangerous cargo shifting in transit was also found in numerous non-hazardous containers. A document prepared by the World Shipping Council for the upcoming meeting of the UN International Maritime Organization’s Subcommittee on Carriage of Cargo and Containers noted that “the increasing number of casualties related to container fires during the past years suggests that the problem is exacerbating.”

 

While your cargo may be properly packed you cannot guarantee that your shipment is not exposed to risks caused by an improperly packed or misdeclared neighboring container. These risks not only include the exposure to direct physical loss or damage to your goods, but also potential contributions to General Average as experienced by those onboard the MSC Flaminia or Maersk Honam. Shipper’s Interest Cargo insurance is the most cost efficient and effective risk management strategy for mitigating these exposures over which you have absolutely no control. Call Roanoke today to make sure your or your clients’ shipments are protected from loss!

 

Article source: Insurance Marine News