Too many points where pilferage can occur
ALAN PEAT
LOOSE CONTROLS of co-loaded containers are causing a fast growing number of problems for marine insurers, according to Dave Keeling, partner in Underwriting Management Services and chairman of the Association of Marine Underwriters of SA (Amusa).
“The problems are becoming more and more prevalent, and losses are beginning to mount up.”
These liability issues surrounding co-load containers have already been tabled in Amusa, and the association is currently in communication with its sister bodies overseas on the matter.
“This to ascertain whether the problems we are facing are escalating globally, or whether they are peculiar to SA.”
The problem at this end of the supply chain is that these less than container load (LCL) containers are cleared and destuffed in Durban. “But then the problems start,” he said.
There are too many points in the inland movement where pilferage or damage can occur - and there are no checks or control over the contents of the consignment. Also, the paper chain is inadequate, when it comes to identifying where and when the theft or damage occurred.
Graham Pile of Claim Recovery Consultants - who is involved in liability issues, and pursuing claims against agents, shipping lines, road transporters and container depots - agreed.
He also highlighted the problem overseas with co-load containers.
“We have picked up from our figures coming through the system that there was a trend of rising claims,” he said.
“This where, for example, two overseas forwarders share one box - an attempt to expedite cargo movement, without waiting for some time to fill a whole box.”
But the transport leg from one forwarder to another is unprotected, almost always unchecked and high risk.
“Although the bill of lading (BoL) goes from one to the other,” Pile told FTW, “the second party is only interested in his cargo - and is highly unlikely to check the consignment already included.
“This leaves a gap in the system, and makes it very difficult to allocate liability in the case of pilferage or damage claims.”
