Losses in the export of South African table grapes have increased five-fold because of bottlenecks in the country’s ports, taking a toll on insurers still willing to underwrite risk in this sector of perishable cargo.
That’s according to Samantha Boyd, the chief executive for Specialty Insurance at Old Mutual Insure.
Quoting the Bureau for Food and Agriculture Policy, Boyd says it’s become a struggle to get grapes destined for markets abroad out through ports like Durban in under 21 days.
“Currently it takes 50 days.”
The Marine Insurance Forum, she says, has noted the impact this is having on the industry, with many opting out of insuring freight-related risk.
“Perishable cargo like fruit is only covered by specific extensions to cover delay, and this is provided by a limited number of insurers,” Boyd says.
“A number of insurers who offered the extended cover are now declining it due to the increased delays in worldwide shipping since 2020 that are ongoing.”
Add to the equation infrastructure issues and the delays caused by the flooding in KwaZulu-Natal and insurers may soon be unwilling to provide any cover at all, warns Boyd.
* Read the rest of her column here: https://tinyurl.com/ra97nu8n
