Strict handover protocols limit airfreight risk

Limited volumes and limited risk best describes the airfreight market to and from Africa from an insurance point of view. “The airfreight leg is not difficult to secure because of the strict handover protocols for cargo and the fact that airports are pretty well secured– it’s the road leg to and from the airport that needs closer attention,” says Associated Marine chief operating officer, Mike Brews. And because of the cost of airfreight, the types of cargo are fairly standard – highly perishable, quick-time-to-markettype commodities or high value where air is the only option because the cargo is vulnerable. The biggest issue, says Brews, relates to perishable cargo which is subject to deterioration. “We have to put in warranties to protect the cargo and ourselves to make sure goods don’t deteriorate lying in the sun on the tarmac – especially when the airlines bump cargo. Although as a rule they don’t bump highly perishable cargo. “Losses in general are low, and since turnaround time from dispatch to delivery is short you can put corrective measures in place almost immediately.” There are no perennial ‘hot spots’ in Africa but insurers tend to keep an eye on the likes of Nigeria, Somalia, Sudan and currently Egypt. “We’ll rate the risk based on the country to which the goods are moving.” And while airfreight is a relatively small chunk of Associated Marine’s business – with volumes remaining fairly stable – as the commodities market gains traction, Brews is upbeat about a fairly positive year ahead.