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.
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.”
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