Saturday, June 15, 2024
shipping and freight resource services
HomeShared ArticlesInsights into some of the operational challenges faced by container carriers

Insights into some of the operational challenges faced by container carriers

While soaring profits and revenues by the container carriers repeatedly catch people’s eye, many container shipping lines also face challenges that require careful navigation and strategic planning..

There have been several articles on this site about issues like the misdeclaration of cargo that has plagued container shipping lines.. In addition, they also have other issues like differences in liability terms and security concerns about ship arrests..

Mis-declaration of Cargo seems to happen even in countries such as Singapore which is known for its strict regulations and implementation of such regulations..

As per Muthu Jagannath of NAU, recently, there have been instances where cargo interests have mis-declared shipments originating from Singapore.. This issue typically comes to light when authorities at the destination port become suspicious and decide to inspect the containers..

As per NAU, in such cases, “If the inspection reveals cargo to be different than that declared, the containers along with cargo are impounded for further investigation and action. Invariably, the cargo interests are unavailable such that the CC is now left to deal with the investigation and the associated costs.

In terms of Liability as well, there have been several changes and today it is not necessary to own a vessel to be a container carrier..

Many carriers operate as operators by chartering ships or as non-vessel operating common carriers (NVOCCs).. This brings into play various international conventions and national laws that define liability and limit exposure..

The major conventions include the International Convention relating to the Limitation of the Liability of Owners of Sea-Going Ships (1957 Convention) and the Convention on Limitation of Liability for Maritime Claims (1976 Convention)..

Countries like the United States which are not a signatory to these conventions have their own Limitation of Liability Act of 1851, which limits an owner’s liability based on the post-casualty value of the ship and freight.. The case of the Dali that collapsed the Francis Scott Key Bridge in Baltimore is an example..

This is further illustrated in an article by Siddarth Mahajan where he writes about a case on “When does Admiralty Jurisdiction end” in which there is an interesting discussion on when does a vessel cease to be a vessel..??

In addition to the above issues, container carriers also face problems relating to security, especially in terms of ship arrest for claims by cargo interests in various jurisdictions..

You can read the full article on NAU’s website..


Liked the content..??

Sign up below to receive the best and most reliable industry content for free from THE Definitive Online Resource for Shipping and Freight..






 

 

 

Hariesh Manaadiar
Hariesh Manaadiarhttps://www.shippingandfreightresource.com
I am Hariesh Manaadiar, the Founder of Shipping and Freight Resource.. I have been in the dynamic shipping and freight industry for over three decades and have worked in several sectors.. I share my experiences and knowledge of the industry through this blog for those looking for help in the industry.. Stay subscribed for more free useful content about shipping, freight, maritime, logistics, supply chain and trade..

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here


This site uses Akismet to reduce spam. Learn how your comment data is processed.

RELATED ARTICLES

Subscribe

Sign up below to receive the best and most reliable industry content for free from THE Definitive Online Resource for Shipping and Freight..

Advertisement

FBX - Freight Indices