Precautions to take against loss due to abandoned cargo

I dont want you anymore

Abandoned cargo could be quite stressful for shipping lines, shippers, port authorities and forwarders alike and is considered to be a big headache for everyone concerned..

When a cargo is abandoned it causes severe financial losses to all parties concerned – seller, buyer, shipping line, freight forwarder, transporters, banks, Government etc etc..

It could also cause a rift in business relationships between a shipping line and their customer – whether it is an importer or a freight forwarder because it could create a blemish in the customer’s record with the shipping line..

When is a cargo considered to be Abandoned Cargo..??

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Misdeclared cargo and its investigation route – Yantian Express fire

Yantian Express fire Investigation

On the 3rd of Jan 2019, part of the Yantian Express a 7,510 TEU, 320m German-flagged ship of Hapag Lloyd went up in flames while on its way from Colombo to Halifax via the Suez Canal..

The Bundesstelle für Seeunfalluntersuchung (BSU) or Federal Bureau of Maritime Casualty Investigation undertook an investigation on the fire on board and the results have been released..

This investigation report demonstrates that it is not all that easy to pinpoint the exact cause and reason for such incidents but it does a great job in identifying certain possibilities and also finding out other information in the meantime.. Truly interesting..

The route to the conclusions reached by the investigators is very interesting to read and shows the many important considerations that are required when preparing your cargo for export..

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More shipping lines offering logistics services – Hapag Lloyd is now offering cargo insurance

shipping and freight news

Do I need cargo insurance for my shipment..?? Is a question asked by many customers around the world.. Whether they are exporters or importers or traders.. This is question that has been going for long and is expected to go on longer..

As much as we discuss why cargo insurance and insurers matter, in the recent past the question of who is the cargo insurer is coming to the fore as the line between the shipping line(s) and logistics services providers seems to be getting blurred..

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Instant shipment insurance anyone..??

shipping and freight news

Cargo insurance covers/compensates a buyer or seller of goods against cargo damage or loss of cargo..

Despite it having been around for centuries, there is still a feeling that any form of insurance is a “grudge purchase”..

By its nature, insurance is an intangible benefit, one that can only be tested under adverse circumstances and there is nothing more adverse than cargo damage..

One of the common complaints about getting insurance is about the tons of paperwork that needs to be completed and the time it takes for all of it to be done..

Chubb, the world’s largest publicly traded property and casualty insurance company aims to take this pain away from the customers who are interested in having their goods covered..

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Cargo theft statistics and trends

shipping and freight news

Cargo theft can occur anywhere along the supply chain affecting local logistics, transporters, storage yards, groupage operators, LCL consolidators, ports, depots, terminals, insurance, carriers and freight forwarders equally..

BSI Supply Chain Services and Solutions assesses that companies lose more than an estimated $76 million in UK alone due to cargo theft highlighting the seriousness of this issue..

TT Club one of the leading providers of insurance and related risk management services to the international transport and logistics industry and BSI have come together yet again to release the second edition of their report on global cargo theft covering the full year of 2018..

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Yantian Express – Operational situation status

shipping and freight news

As you may have read here, the fire stricken Yantian Express reached Halifax – its final destination, finally..

ONE, who are one of the Alliance partners on this ship have issued an advisory as below to give everyone a “better perspective of the reality of the operational situation facing the Yantian Express”..

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Yantian Express reaches its destination Halifax finally

shipping and freight news

Further to the various articles I have posted on this site about the fire damaged container ship Yantian Express, readers may be happy to hear that the ship has finally reached its destination..

Yantian Express a 7,510-TEU vessel operated by Hapag Lloyd suffered fire on board in early January while on its way from Colombo, Sri Lanka to Halifax, Canada.. The ship was carrying around 3,875 containers at the time of the incident of which 320 containers were a total loss..

Yantian Express finally reached Halifax on the 20th of May 2019..

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Updated information on Yantian Express General Average

Information article

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)..

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Consequences and process of General Average – once it is declared

Shipping and Freight Resource Press Release

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..

  1. In a GA situation are ALL goods blocked, until the Average Adjusters have completed their work..??
    1. How long can the work of these Average Adjusters take on average?
    2. When will the goods be unblocked?
    3. Will all goods be unblocked?
  2. 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..??
  3. When do all the different parties have to pay their part of the indemnity fees and is paid by insurance or cargo interest..??
  4. 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..??
  5. 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..

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What is a Switch Bill of Lading and when and why is it used..??

switch bill of lading

The world of shipping and freight is very dynamic and there may be several changes that happen during the course of a shipment or post shipment..

Destinations can change, cargo routing can change, cargo release parties can change, even important documents such as a Bill of Lading may be subjected to changes..

Some may be simple amendments, but in a lot of cases, the changes or requirements may be elaborate such that it necessitates the issuance of a Switch Bill of Lading..

Read here about what it means and when and where it is used..

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General Average declared on fire stricken Yantian Express

Shipping and Freight Resource - News

It was expected and would have been just a matter of time.. 

We reported previously that part of the 16-year-old Yantian Express the 7,510 TEU, 320m German-flagged ship of Hapag Lloyd went up in flames on the 3rd of Jan 2019 while on its way from Colombo to Halifax via the Suez Canal..

The container fire that broke out was largely contained and brought under control after one week and the ship sailed to the Port of Freeport (Bahamas) for further recovery and cargo damage assessment. when it arrives in Freeport around the 1st of Feb 2019.. 

On January 25, 2019, Hapag Lloyd declared “General Average” for the Yantian Express..

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Why cargo insurance and insurers matter..

cargo insurance - shipping and freight resource

Cargo insurance is a type of insurance that covers/compensates a buyer or seller of goods against cargo damage or loss of cargo..

Despite insurance having been around for centuries, there is still a feeling that any form of insurance is a “grudge purchase”..

By its nature, insurance is an intangible benefit, one that can only be tested under adverse circumstances and there is nothing more adverse than cargo damage..

From a

  • Local (Street to Street, City to City, Town to Town) shipment;
  • to Provincial shipment within the same province/state;
  • to National shipment within the country;
  • to Regional trade within regional trade blocs like EU, BRICS;
  • to Global trade between countries

there are several modes and types of trade/shipments around the world..

Although it may seem obvious, it is shocking to see how many customers still do not take the right Cargo Insurance to cover their cargo comprehensively..

I don’t think this lack of proper insurance cover is intentional, but may be due to ignorance or lack of knowledge on the part of the client as far as Cargo Insurance goes..

So when I read an article from Tom O’Malley of TJO Cargo, I felt I had to share it with my readers for a better understanding of Why cargo insurance and insurers matter..

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Shipper and Container Operator liable for explosion on MSC Flaminia

MSC Flaminia

On the 14th of July 2012 a container ship MSC FLAMINIA operated by MSC was en route from Charleston in the USA to Antwerp in Belgium..

A cloud of smoke began emerging from Hold 4 which was noticed by the crew who promptly commenced fire fighting measures by releasing CO2 (Carbon Di-Oxide) to suppress it..

While the crew were working on extinguishing the blaze, an explosion occurred.. 3 crew members perished as a result of this incident and several others were injured..

The disaster that occurred on the MSC Flaminia is just one of several containership disasters that have happened in recent history, including containers lost at sea and disasters relating to hazardous goods..

US District Court for the Southern District of New York has named Louisiana-based Deltech (Shipper) and Stolt-Nielsen’s Stolt Tank Containers (Container Operator) as liable parties for explosion on MSC Flaminia..

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Said to Contain clause – should it be allowed or not..??

Said To Contain

We all have seen the clause SAID TO CONTAIN or STC in a Bill of Lading issued for an FCL shipment.. What does it mean and should the Said To Contain clause be allowed or not..??

Join the discussion in this article on whether the Said To Contain clause should be allowed or not in the bill of lading and if you are a carrier that is not showing the Said To Contain on your bill of lading, how do you protect yourself from possible claims relating to shortage of cargo..

Are the clauses Said To Contain and Shipper’s Load Stow and Count interchangeable..??

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