When it comes to the protection of their goods, transporters need to package their products adequately and not cut corners in order to save money. That’s the message from Mike Brews, director of Horizon Underwriting Managers, who warned transporters to follow industry standards when it comes to the packaging of their goods to avoid insurance claims.“The primar y function of any business is to sell goods. Good packaging will assist the shipper during the transport process and ensure the goods get to the customer in the best possible condition,” said Brews. “If the goods aren’t packaged properly, the reliance on insurance as well as on shipping lines and the wider supply chain industry starts to blur based on how badly they were packaged.”Brews advises shippers to use as many protective measures as possible, despite the additional costs.“Obviously there is a cost versus risk reward scenario that shippers will need to take into account when determining what degree of packaging they need. The more packaging the shipper takes, the more it will cost them, which in turn will diminish profits, so this is where you see people try to cut corners,” he said.If goods are inadequately packaged, insurance companies can refuse to pay the claim. And while following industry standards is key, over and above that packaging should be able to withstand the rigours of a long transport process, particularly when you take fragile and hazardous materials into consideration. “If you have goods rattling around in a container, whether it is dangerous or delicate goods, it is inevitable that they will come out damaged. "Insurance is there for the out of the ordinary loss where a fortuity occurs and not an inevitability"
INSERT: Shippers should use as many protective measures as possible despite the added extra costs that may come with it. – Mike Brews