Mike Brews, COO Associated Marine

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