COV­ER­ING ALL BASES

Poor pack­ing is now the big­gest risk in in­ter­na­tional tran­sit. Ex­porter looks at the key as­pects of man­ag­ing the risks in­volved in get­ting your goods to ex­port mar­kets and get­ting paid.

Exporter - - FRONT PAGE - By Mary MacK­in­ven.

Man­ag­ing the risKs oF ship­ping goods

The com­mon per­cep­tion that poor pack­ing is the sin­gle big­gest cause of lost or dam­aged goods in in­ter­na­tional tran­sit is now a proven fact, says Graeme Or­chard, ma­rine prod­uct man­ager at QBE In­sur­ance (In­ter­na­tional).

A re­cent anal­y­sis by the ten big­gest ship­ping com­pa­nies rep­re­sent­ing 52 per­cent of global container ca­pac­ity showed half of cargo loss in­ci­dents were due to poor or in­cor­rect pack­ag­ing and 66 per­cent of these in­volved dan­ger­ous goods.

An­other 21 per­cent of losses were due to mis­de­clared goods, leading to poor pack­ing, han­dling or stowage.

The ef­fects were prod­uct leak­age in 51 per­cent of cases and fire or ex­plo­sion in eight per­cent.

One in­fa­mous case on the In­dian Ocean in 2002 in­volved mis­de­clared fire­works be­ing stowed against the ship’s main bulk­head. Dur­ing the voy­age they ex­ploded and the whole ship went down.

“Pack goods for the con­di­tions you could pos­si­bly ex­pect for tran­sit. Truck­ing to Welling­ton is very dif­fer­ent from a trip to Europe,” Or­chard stresses. “Pre­pare to spend on in­creased pack­ag­ing to ex­port mar­kets, and in­clude that in the pric­ing.”

He says in stan­dard A Clauses of

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