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Loss Presentation odgerja


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Examples of Cargo Losses

Examples of Cargo Losses

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  • 1. An American owned & operated Boeing 747 freighter crashed as it took off at Brussels airport and broke apart. The 5 American crew escaped without injury. The jumbo jet came to rest at the end of the runway some 500 yards from housing in the Brussels suburb of Zaventem after the crash.
  • 2. Tidewater Barge Lines "Big Bin" barge was loaded in Lewiston, Idaho with export cargoes of peas & lentils (100 containers) & paper products (2 containers). The containers were destined to load an Italia Line vessel at PDX Terminal 6. After removing 2 containers from the "Big Bin" by port gantry crane -- the "Big Bin" started to heel over. It remained that way for a short while -- then capsized -- dumping 100 containers into the Mighty Columbia.
  • 3. Dec. 14 2002 >> Norwegian-registered Wilhelmsen Lines ro/ro M/V Tricolor, sailing from Zebrugge, Belgium to Southampton with 2,862 cars & 77 containers, collided with Bahamas-registered 577-foot container vessel M/V Kariba, 30 miles E. of Ramsgate, England. Tricolor sank, resting on the bottom of Channel, but only partly submerged because of low tide. Tricolor valued at £25M (US$40M) & cargo up to £31M (US$49M).
  • 4. Hanjin Pennsylvania: fire "has gutted accommodation & engine room." At least 6 rows of containers on deck & under deck have been effected by the blaze, which is understood to have started in a container carrying fireworks & spread to engulf the area immediately forward of the superstructure. But as the ship continues to burn, and salvage crews are still hampered in their attempts to board the vessel to carry out firefighting operations, experts are already suggesting the likely cause of the explosion was a container full of fireworks.
  • 5. "The MSC Napoli is a 1991 built 4734 TEU full cellular container ship. The vessel sailed from Antwerp bound for Sines, Portugal carrying 2,394 containers. The crew on board the MSC Napoli, sent a distress signal when in the very poor weather and sea conditions encountered in Northern Europe the vessel began to take on water through a sudden and unexpected longitudinal crack on her starboard side shell plating in way of engine room. Her crew had to abandon ship .
  • 6. MAJOR CASUALTY>> M/V Hyundai Fortune (built 1996) has suffered major explosion & massive fire in aft on-deck container stacks. Entire after end of ship completely involved in fire. Crew has abandoned ship. Numerous (60 to 90) containers blown over the side , forming a debris field about 5 miles long -- many of which are drifting around the vessel. Lloyds Open Form has now been signed with salvors, Svitzer Wijsmuller & we expect that owners will declare General Average.
  • 7. On a voyage from Felixstowe, England to Kingston, Jamaica, M/V Jeppesen Maersk encountered a violent storm approximately 250 miles North of Tenerife resulting in the disaster shown above.
  • 8. MAJOR ACCIDENT>> 77,211-gt 1994-built M/V Alpha Action, chartered by NYK & sailing from Nagoya, Japan to Chile -- in collision with -- 25,836-gt M/V Wan Hai 307 12 km. SW of Oshima, Japan. Both vessels are now drifting east from the site of the collision.
  • 9. Ital Florida lost at least three fully loaden containers in severe seas in the Arabian Sea. The ship faced wave heigths of 7-10 m height. M/V Ital Florida was running with almost 16 knots. The ship's deck also suffered storm damage.
  • 10. Italian container M/V Republica Di Genoa of Grimaldi Lines rolled onto her starboard side in a dead end dock at Port of Antwrp. Capt. ordered crew to evacuate when vessel started to take on water. M/V Republica Di Genoa reported to have about 300 containers & cars on board when the ship rolled over.
  • 11. Dockside Peril
  • 12. CSX Rail Yard / New Orleans (Post Katrina)
  • 13. The Hong Kong container vessel M/V OOCL AMERICA sustained heavy weather damage on a voyage ex Long Beach for Kaohsiung. There is major cargo damage. The vessel encountered severe weather in the Pacific Ocean and lost a large number of containers overboard. A maritime attorney for cargo interests estimated 350 containers lost overboard & 217 still on board but crushed or bent out of usable condition.
  • 14. Common Misconceptions
    • The carrier covers my losses : Carriers are only liable if negligence can be proved. No carrier must pay for losses that occur beyond their control. International law limits the liability of ocean carriers to 500usd per package (interpreted as per container) and the liability of air carriers to 9.07usd per pound.
    • Nothing could ever happen to my cargo : As demonstrated in this presentation, all cargo is vulnerable to catastrophic loss, particular average and general average. Studies indicate that on average one ship sinks every day and that a shipper will experience at least one General Average loss every 8 years. If exposed to General Average without insurance, you will be required to post a cash guarantee or bond before your cargo is released. In a General Average loss, if cargo and/or part of the ship were sacrificed to save the voyage, then you as a cargo owner would be required to pay a proportional part of the loss even if your cargo was not harmed. Acts of God at sea and in the air make your goods vulnerable.
    • I’ve never had a loss : Approximately 30% of losses in transit are unavoidable. Most people have never made a claim against their homeowner’s policy, but continue to insure their homes. The risks in transit are far greater.
    • It’s too expensive : Cargo insurance can be secured for fractions of percents of the cargo’s overall value. Exposure to one General Average or catastrophic loss event could completely off-set the cost of insuring your cargo.
    • I buy on CIF Terms : In the event of a loss, you will have to file and settle claims with an overseas company which your supplier has chosen. Foreign insuring conditions can vary widely from US terms. When you change your terms of sale and purchase insurance locally, you know exactly what you are getting and have the full support of your local representatives. Also, the cost of insurance purchased by the supplier is often buried/bundled with other charges making it impossible to identify the rate being paid. Finally, per ICC terms, the seller is only obligated to provide “minimum coverage” for the goods sold under CIF terms. This means that “Free of Particular Average” (ICC Clause-C) coverage may be provided instead of “All Risk” (ICC Clause-A).
    • I sell on CFR terms or FOB/Origin Port terms : You still have the inland transit to the load port to insure. Losses frequently occur while in transit to and while at the port. Also, if you have extended credit and have not collected payment before a loss, it may be difficult to collect the accounts receivable if your buyer’s cargo is lost or damaged in transit.