Generally, transporting goods around the world is a routine practice - and most of the time things go smoothly, with an expectation of safety and security. Recently though, those expectations have been challenged.
Reporting from American Shipper states that since November 30, 2020 more than 2,675 containers have been lost across five separate incidents at sea. This is nearly double the annual average of 1,382 containers lost at sea each year as estimated by the World Shipping Council (WSC).
A severe storm was the contributing factor when 1,816 containers were lost northwest of Hawaii, strong winds pushed containers overboard off the coast of Japan and hundreds more were lost when a ship suffered a blackout in route to California. Experts believe that current practices for securing containers on board are no longer sufficient to handle the increase of severe storms on the Pacific.
Lee Connor, president of John S. Connor which handles Global Logistics explained, “there are elements of risk in the supply chain that are very real in spite of the care taken to properly package, load and secure cargo for these arduous journeys. Theft, piracy, misplaced package fires on ships at sea combined with more frequent severe storms have caused the loss of thousands of ocean containers and small parcels.”
While there is no 100% guarantee to eliminate this risk, John S. Connor can provide cargo insurance, to our customers, to minimize risk of cargo loss. It is very reasonably priced for "all risk" coverage and is available to most cargos, with few exceptions. Insurance offers protection for cargo lost or damaged, and even cargo that is saved in cases of General Average (a maritime and admiralty law principle that requires even unaffected cargo to contribute to pay the damages for other cargo lost at sea to save the voyage).
“While we are not in a position to mitigate the conditions that contribute to container stack collapses and loss, insurance coverage plans protect against physical loss or damage. Cargo insurance is a reliable remedy for recovery of your property” stated Connor.
If you would like to discuss ways to limit uncertain outcomes when losses occur, feel free to reach out to us for more information. Contact us at info@jsconnor or 410-863-0211.