For shippers in the Western Cape, a combination of good risk management and adequate insurance cover is imperative, says Bimesh Ugarchund, director of independent marine insurance brokerage Eikos Risk Applications. And this is true for a range of perishable products exported from the region. “When in 2013 many Western Cape citrus crops became infected by citrus black spot, and the European Commission suspended imports from South Africa, the financial impact was enormous for many farmers. “This has meant that in addition to the cost of wider multi-peril crop insurance, farmers are spending copious amounts of money to ensure that citrus being produced for export is free from black spot,” said Ugarchund. Blackspot is a pre-existing condition which is not covered by any marine insurance policy. What the shipper can insure against is an unexpected delay in the supply chain. “With the right cover in place, an exporter can recoup from insurers these losses due to unexpected delays.”
