New markets present new risks

Perishable shippers
exploring new markets
must take the necessary
precautions to safeguard
against risk, says Bimesh
Ugarchund, director
of independent marine
insurance brokerage Eikos
Risk Applications.
“For example we have
seen a definite increase in
the export of perishables
to the Russian market,” he
said. “There are definitely
opportunities there, but
shippers have to be cautious
and aware of the risks and
vagaries of the market and
take the necessary steps to
protect themselves.”
Credit risk has been one
of the major concerns in this
particular market, he said.
“Previously, it was
difficult to obtain financial
information from some
Russian companies,
information which insurers
require to determine risk
and provide cover for
shippers to this market.
Recently this has become
more forthcoming and
insurers are more willing
to accommodate such
requests,” he said. As a
result, demand from the
market is increasing and
trade is being stimulated.
He said with South
African exports under
pressure in its traditional
perishable markets such as
the European Union, the
BRIC countries in particular
were providing real
opportunities as alternative
markets.
“Russia may not be a
massive market but it is
definitely a growing one,” he
said. “Fruit products are on
the increase but there is also
interest in other perishable
products such as dairy, meat
and fish. We have also seen
f lowers increasingly being
moved to this part of the
world.”