Past
From a risk management
point of view, the impact of
containerisation has been
monumental.
And that’s reflected in the
massive fall-off in rates.
Rates have
declined by 90%
over the past 20
years – and that’s
the result of a
reduction in claims.
If you’re not
claiming and
are paying a
R1m premium,
that premium
is progressively
reduced which
means you’re paying a tenth of
what you were ten years ago.
And it’s largely due to
containerisation.
You’re able to move cargo that
was never movable by sea, it’s
opened up markets for people who
never had access to markets and
the reduction in risk from bulk
and breakbulk to containerised
vessels has been enormous.
Future
For the future technology will
continue to play a huge role in
the transportation of cargo, with
massive knock-on benefits for the
risk management
sector.
It will have a
huge impact on
the movement
of cargo – from
documentation
flow to information
flow. You’ll know
exactly where your
cargo is at any given
time. And if you’re
moving perishable
cargo you’ll know exactly what
the temperature is and whether
there’s been any fluctuation – and
you’ll probably be able to get in
touch with the ship’s captain to get
it adjusted. So all those enablers
are making it easier to track and
monitor cargo which makes it
easier to manage the risks.
INSERT & CAPTION
As cargo risk diminishes,
rates could decrease
further — but the big
issue is the sustainability
of premiums.
– Mike Brews
