‘Speedy turnaround a crucial element in mitigating risk’

The advent of containers has resulted in a major reduction in claims compared to 20 years ago, says Mike Brews, chief operating officer of insurance major Associated Marine. “If you compare the number of claims in ratio to the volumes moved it is easy to see the positive impact containers have had.” And it’s not only about offering more protection to the cargo, but also about faster turnaround times because they are easier to stack, store, move and transport. And faster turnaround times in the insurance industry mean less risk. “If the voyage time is extended, the longer cargo is in transit, the higher the risk,” says Brews. But, he warns, the turnaround times of containers will have to improve as the market grows. “There are plans to dredge the Durban port to allow for bigger container vessels to dock. If this happened with present capacity we would see congestion and that would increase the risk drastically. It is a slight concern to us.” According to Brews users of containers can minimise their risk quite dramatically if they follow a few basic steps. “Firstly the container must be packed properly, tied down and strapped. Nothing must be able to move around within the container as that would increase breakages. Also, before packing any cargo in a container, ensure there are no holes and that it is secure.” This, he says, will decrease possible water damage. “And lastly make sure it is clean and that cargo will not be contaminated by what was in the container before. This is especially important for liquid cargoes. In many cases we demand a cleanliness certificate before we will insure.” While theft and pilferage of containers remains a concern, Brews says there is not much more that can be done to address the situation than what is being done at present. “High value cargo is a target regardless of how it is shipped and syndicates make a living out of it. It is important to ensure your cargo is as safe as possible at all times though.”