Pay a little more to ensure your goods arrive safely

The new safety codes for ships due to be introduced on July 1 - initially for an estimated 12 000 tankers, bulkers, gas carriers, cruise and high speed vessels of over 500 gt, but later for general shipping - are becoming a great concern to underwriters, says John Hill, m.d. of Associated Marine.
In itself it is a good and necessary thing, he says. The problem is that many shipping companies are leaving things to the last minute. Added to this, some countries, such as the USA, the European Union and Japan, will enforce these requirements rigorously.
About one third of these are expected to miss the July deadline. According to Hill this will in all likelihood result in a higher proportion of these 'suspect' ships being sent to operate in our waters.
The problem, as he sees it, is that South Africa already struggles with an inadequate number of inspectors in our ports. There is no real infrastructure to enforce and police the new ISM code. My fear is that we may end up with unsatisfactorily managed ships using our ports. My advice is that importers and exporters ensure that vessel operations are fully ISM compliant and certified before they entrust their cargoes to these companies.
Another area that needs close attention, advise Hill, is that of road transport. With our declining road infrastructure - just look at all the potholes and road breakups - plus all the overloading that takes place, people must be choosy and select only reputable road hauliers.
Hill relates the case of a load of frozen fish that was consigned from Cape Town to Johannesburg. The journey took 20 hours and was entrusted to only one driver, he reports.
But owners of cargo seem unaware of these risks. The rate quoted should be a giveaway, he says. These are certainly some of the major concerns to cargo insurers. Any risk management is likely to cost you some money, but if you want to ensure safe arrival then be prepared to pay a little more.
Associated Marine, a collaboration between Commercial Union and Guardian National is available to advise clients on methods of reducing their insurance risk.