Bulk wine shipping – know the risks

As the bulk shipping of wine in tanks and flexi-tanks gains traction shippers should be aware of the inherent risks of choosing this mode, says Eikos Risk Applications’ Bimesh Ugarchund “Exporters need to ensure that stringent risk management is applied to the selection of the tank suppliers as well as the use and packaging of the flexitanks into containers,” he explained. In his opinion, there should be recourse against the tank supplier should their products not perform as advised. Tanks and their contents are also susceptible to prolonged sunlight as this causes the tank to expand and press against the walls of the container. According to Ugarchund, the results can be ‘disastrous’ as this can result in loss of product and damage to the container. “There should always be adequate risk management to prevent such a risk, but insurance is essential.” A sentiment echoed by Hugh Reimers, MD of Eikos Risk Applications. “Insurance is a critical, but only a partial solution when goods are lost or damaged or when the supply chain is disrupted. Losses occur for all sorts of reasons – and they may not be recoverable under even the widest form of marine/GIT/ warehousing cover. “It’s important for the customer and the supply chain service provider to know where they stand in relation to the goods and the loss.” South Africa’s agricultural sector relies heavily on the freight industry, and to ensure that the South African economy remains a viable partner in international trade, it is essential that all partners in the supply chain adhere to best practice, and ensure that they not only have the correct insurance cover in place, but that adequate risk management is followed throughout the chain. INSERT & CAPTION Exporters need to ensure that stringent risk management is applied to the selection of tank suppliers. – Bimesh Ugarchund