Detailed info is key to ensure adequate cover

Rather give too much than too little information when insuring project and breakbulk cargoes. This is the advice to cargo owners from Mike Brews, chief operating officer of Associated Marine “If we are to accurately quote on project and breakbulk cargoes, then the more detailed information we have the more accurate and adequate our policies become. It also enables us to give advice and make recommendations to assist the client in undertaking such a project,” he says. Having seen a noted increase over the past six months in the number of projects – especially for capital investment purposes – where new manufacturing lines and plants are being installed, Brews also advises that cargo owners ensure they are using reputable service providers, be it carriers, clearing and forwarding agents, packers or riggers. “These suppliers must have experience and knowledge in moving cargo of this nature as most losses in this industry are caused by inexperience by someone in the supply chain,” he said. “We often request that an independent surveyor supervises the packing, loading and movement of this type of cargo. That may cost a bit extra – but in comparison to the cost of damaging the items, it is a small price to pay.” Associated Marine also offers a product known as “Advanced Loss of Products”, he said, where they indemnify the client for future projected loss of income where a plant or manufacturing line has a delay in starting up due to a loss covered by the marine insurance policy for the import leg. “If a piece of machinery gets damaged during the import leg and needs to be remanufactured, the plant may only start up six months after its scheduled date. This costs the client profits which may be covered under this type of policy.” This is something that must be taken into serious consideration when insuring project cargo said Brews, as several issues present themselves in this arena. “Many of the items are manufactured to specifications and are thus not readily replaced should they be badly damaged. In cases where repairs are necessary, engineers from the overseas manufacturer have to be flown to South Africa to complete the repairs which adds drastically to the costs,” said Brews. CAPTION Mike Brews … ‘Supervision by independent surveyor often requested.