Maersk Honam Fire Underscores Importance of Cargo Insurance

first_imgzoom The Maersk Honam fire from earlier this month serves as a reminder of the importance of cargo insurance, says online freight forwarder iContainers.“Given that Maersk has now declared general average, which means that the surviving cargo has to pay a share of the cost for the vessel damage, the tow, clean up, legal settlements, etc,” Klaus Lysdal, Vice President of Sales and Operations at iContainers, said.By law, all shipping carriers are obliged to offer a minimum amount of insurance, but it offers limited coverage. Hence, shippers need to invest in additional coverage to protect themselves from worst-case scenarios, the freight forwarder noted.Based on the latest update, Maersk Line’s ultra large containership will be towed to Jebel Ali, the UAE, where its cargo will be off-loaded.However, the estimated time of arrival (ETA) is still to be confirmed and may be approximately two weeks from now, Mediterranean Shipping Company (MSC) said citing its 2M alliance partner.Most containers located in front of the accommodation area are feared to be damaged by fire, heat or the water used to fight the fire.Furthermore, before the fire-stricken vessel is allowed to berth, port authorities will want to make sure that all fire on board have been extinguished and determine the condition of the Honam, which is a process that could still drag on, iContainers added.“For clients who have insurance, filing the claim with their insurance will help speed up the process of releasing their cargo,” explains Lysdal.“Plus, claims are generally processed quicker through insurance companies. Without insurance, you may be stuck with the carrier’s liability which is listed on the back of the Bill of Lading: USD 500 per unit.”Since Maersk Line has declared general average, shippers who did not purchase a general average coverage insurance will be liable to pay a proportional portion of the damage.“Without cargo insurance, your cargo is likely to be held hostage for payment of those charges. Simply said, without insurance, you stand to gain nothing or next to nothing at most,” Lysdal added.last_img read more

Amid Amazon outrage tons of new fires burn

first_imgPorto Velhi (Brazil): Hundreds of new fires are raging in the Amazon rainforest in northern Brazil, official data showed on Saturday, amid growing international pressure on President Jair Bolsonaro to put out the worst blazes in years. The fires in the world’s largest rainforest have triggered a global outcry and are dominating the G7 meeting in Biarritz in southern France. Official figures show 78,383 forest fires were recorded in Brazil so far this year, the highest number of any year since 2013, and experts say the clearing of land during the months-long dry season to make way for crops or grazing has accelerated the deforestation. Also Read – India gets first tranche of Swiss bank a/c detailsMore than half of the fires are in the Amazon, and some 1,663 new fires were ignited between Thursday and Friday, according to the National Institute for Space Research. The new data came a day after Bolsonaro authorised the deployment of the military to fight the fires and crack down on criminal activities in the region. The blazes have stirred outrage globally, with thousands protesting in Brazil and Europe on Friday. The growing crisis threatens to torpedo a blockbuster trade deal between the European Union and South American countries, including Brazil, that took 20 years to negotiate. EU Council president Donald Tusk told reporters at the G7 on Saturday that it was hard to imagine European countries ratifying a trade pact with the Mercosur bloc as long as Brazil fails to curb the fires ravaging the Amazon, which is considered to be the “lungs of the planet” and crucial to keeping climate change in check. French President Emmanuel Macron, who has taken the lead in piling pressure on Bolsonaro over the fires, had earlier accused the far-right leader of lying to him about Brazil’s stance on climate change.last_img read more