Cargo insurance vital as maritime losses grow

Over 190 maritime incidents in 6 months, with many declaring general average

More than 190 maritime incidents were reported in the six months from January to June 2014, ranging from the grounding of cargo ships, collisions at sea and in port, water ingress, engine failure through to suspected piracy – with the crew, ships and cargo reported missing for months on end.

These perils represented significant financial losses to cargo owners without the requisite marine insurance to protect their financial interests in their cargo, and in particular, for general average losses.

“Many importers and exporters run the gauntlet of not insuring their cargo in a bid to save on costs, the reality is that goods in transit are highly susceptible to damage by fire or storm, theft, jettison or mishandling.”

“Cargo insurance is an essential means to guard against serious financial loss, and in particular as the application of general average losses grows and become more commonplace,” explains Jeffry Butt, Marine Manager at Aon South Africa.

A General Average occurs when a voluntary sacrifice is made to safeguard the vessel, cargo and / or crew from a common peril for example, jettison of cargo to lighten a vessel in order to get to the closest port to prevent a ship from sinking and even piracy.

To read the entire article, please click here.

Source: http://www.itinews.co.za

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