With recent news headlines like the MSC Zoe losing containers overboard in the North Sea, and Hapag Lloyd’s Yantian Express battling a vessel fire, among others, 2019 is already off to quite a start in the category of vessel incidents. Shippers may want to take the opportunity to review what protections or insurance they currently have in place to secure the safety of their cargo in transit.
Logistics providers by nature plan for the most effective routings, transit times, etc. when mapping out parts of their customer’s supply chains, but one very real facet of the supply chain industry is unpredictability.
Whether it’s through a catastrophic weather event, a vessel fire, or riot or crime, the supply chain can be susceptible to many disruptions and therefore, so can your cargo.
When cargo becomes impacted by a major weather event, for example, businesses that are not well versed in the fine print found within the shipping line’s terms and conditions are often unaware that their cargo is uninsured by the vessel line or logistics provider after it arrives damaged or does not arrive at all. Both shipping lines and logistics companies’ liability are protected legally by force majeure clauses within their tariffs or terms and conditions.
