As we have all seen, COVID-19 is causing severe imbalances in world trade which is affecting everyone, whether it is an exporter, importer, shipping line, shipowner, freight forwarder, trucker, or a spaza shop around the corner..
While ships are moving, ports are discharging and loading containers, nothing is as yet at a 100% capacity in most of the countries around the world..
Ships are facing port congestion resulting in blank sailings, containers are stuck in storage at ports, terminals, and depots around the world for later deliveries creating longer delays than anticipated and also causing yard space congestion..
In view of the delays experienced by the trade, we look at the question – Does ICC (A) cover cargo claims due to COVID-19 delays..??
The world is in the midst of the COVID-19 pandemic and the global economy has been greatly hit due to this. You may agree that during such time, it’s important more than ever to find ways for saving costs and take all measures possible to safeguard your business.
As a small or midsize business, there is no doubt that you are familiar with the stress of operating on tight margins, and you know how valuable even a small percentage of cost-savings can be to your bottom line.
However, what many small businesses don’t realize, is that their supply chain – particularly when it comes to imports – can be a significant source of cost savings!
Yesterday, I posted some questions relating to the consequences and process of General Average – once it is declared..
In a press release, ONE (Ocean Network Express) one of the alliance partners of Hapag Lloyd, have released further information relating to the Yantian Express which declared General Average on the 25th of January 2019..
The “Yantian Express” suffered a major fire resulting in both the vessel and a portion of the cargo suffering either fire or water damage..
ONE has released an update on the General Average security demand, latest salvage declaration details, a Salvage Guarantee Form and an overview of frequently asked questions (FAQ)..
Further to the recent maritime disasters and subsequent to the declaration of General Average on the Yantian Express, I received some questions surrounding the consequences and the process of the General Average – once it is declared..
In a GA situation are ALL goods blocked, until the Average Adjusters have completed their work..??
How long can the work of these Average Adjusters take on average?
When will the goods be unblocked?
Will all goods be unblocked?
In this case, the final destination of the ship was Halifax but the ship has been taken to Freeport for assessment.. Do all goods have to stay on board till the full assessment is complete or do they release goods as assessed.. Say for example, containers in a section of the ship that has not been affected at all..??
When do all the different parties have to pay their part of the indemnity fees and is paid by insurance or cargo interest..??
These unexpected delays can of course create a certain “damage” to the owners of the goods; I understand the Insurance does not include any of the consequences of the General Average..??
When will the beneficiaries of the insurance paid out (this would then refer to the owners that really lost material or got their own material damaged) – do they have to wait until the Average Adjusters have done their work, made their conclusions, send in their reports etc… or can they claim immediately to the Insurance company and the Insurance company later on settles with the other parties?
We caught up with Jagannath Muthu, of NAU Pte Ltd to pose these questions and here is what he had to say..