‘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.”