Tianjin cargo damage and insurance claims

The lawyers for international commerce, HFW, have just compiled a summary of the possible cargo damage and insurance claims at the Port of Tianjin in China – which suffered two massive blasts last Wednesday at a chemical terminal in a port area.

“TV footage and still photos show literally thousands of shipping containers damaged by the fire,” its report said. “They will be owned by a large number of shipping lines and container leasing companies and have been rendered total losses. It is unclear whether these were full or empty. The container shells themselves will be insured on a property basis, many with the TT Club. The Club is currently examining its exposure. Given how many shipping lines are likely to have suffered losses, issues as to aggregation will also arise.

“With that large number of containers having been affected, the owners of the cargo due to pass through Tianjin will now be urgently trying to clarify with forwarders and shipping lines whether their cargoes may be those in the boxes. They in turn will be contacting the port operator so that they can locate which have been affected by the fire.

“It is unclear how much cargo has been affected by the explosions. So far, it has been reported that around 2 700 cars have been damaged, including most notably Renaults, Toyotas and Volkswagens, Hyundais and Land Rovers.

“There may also be damaged/destroyed bulk and break bulk cargoes.

“Cargo insurers will be in contact with their insureds and will be looking to see who they can make a recovery from in respect of the damage.

“P&I Clubs and freight liability insurers will be facing enquiries from anxious members keen to clarify if they are likely to be held liable for cargo losses under the contracts or carriage. The attitude of the Chinese courts and whether they will accept jurisdiction for losses and make forwarders, logistics operators and shipping lines liable is, at this stage, unknown.”

Source: HFW