Should the shipper insure against loss or damage? IMPORTERS AND exporters of goods in FCL containers should be aware that in terms of bill of lading conditions they may be liable in the event of or damage to the containers, says Renfreight's chief executive, Barry Middleton.
He says that bearing in mind the cost of replacing a 6m container (about R20 000) and the high cost of effecting repairs, this liability should be discussed with an insurance broker and, where necessary, the value of the container should be included in the insurance value of the shipment.
Some brokers have queried if this is not possibly getting the wrong end of the stick, as one put it. They claim that it is not normally a risk passed on to the client but which should be a liability absorbed by the container owner.
But Middleton points out that in most instances containers are owned by the shipping lines themselves who have limited liability clauses in their insurance coverage and do not always cover the full extent of high value goods.
In South Africa it is often the receiver at this end who is making the decisions and buying the goods under their control from the port of loading. Insurance then becomes their responsibility, and they should cover themselves fully. A further possible cost is the demurrage charges raised by container operators if the container is returned to them late, after the expiry of the agreed free period.
This charge is to the order of US$ 25 per container per day and can add quickly to a substantial figure, especially if more than one container is involved.
Say, for instance, a vehicle carrying two containers is hijacked and the cargo cannot be found. There could be a claim covering not only the cost of replacing the containers but also late turn-in demurrage up until the replacement costs claim is paid. By Leonard Neill
