I wanted to let all my customers know about some valuable information regarding cargo insurance and cargo loss.
With the recent “beaching” of the MSC NAPOLI , I find it imperative to let everyone know about the problems that can arise if your cargo is on a vessel that has an incident at sea.
Did you Know ?
- If you ship cargo on a vessel and the engine room catches fire at sea “YOU” can be liable for the cost of any rescue mission and or vessel damage!
Learn about General Average. CLICK HERE
Loss resulting from a voluntary sacrifice of any part of the vessel or cargo, or an expenditure to safeguard the vessel and the rest of the cargo. When such a loss occurs, it is paid on a pro rata basis by the ship owner and all cargo owners.
When a marine casualty arises, steps may need to be taken to protect or save the ship and cargo from serious damage or total loss. The steps taken may result in expenditure being incurred and/or deliberate loss or damage to some of the property at risk, but result in the saving of other property.
Example: A ship has suffered a fire in the cargo hold. Water is poured into the hold to extinguish the fire and prevent it spreading through the ship and cargo. Other cargo that was in the hold but not on fire is damaged by the water used to extinguish the fire. Who pays?
General Average is designed to provide an equitable distribution of these losses or sacrifices between the Parties that have benefited.
All the property that has been saved at the completion of the voyage contributes to the financial compensation for the water damage suffered. But how is the compensation determined?
The YORK ANTWERP RULES have been developed to provide a uniform approach to the handling of General Average losses. Many contracts of carriage provide for the application of these Rules. Where they do not apply General Average claims and compensation are determined by local law.
At the time the voyage is completed the level of the sacrificial losses will not normally be known. Shipowners will usually call for security from cargo interests against which the assessed contributions can be enforced. The amount of the claim is usually calculated by Average Adjusters, appointed by Shipowners. The contribution of each Party is calculated pro rata to the value of their property at the end of the voyage.
2. The steamship line and freight forwarder liability for a “lost at sea” container (unit) is 500.00 U.S. Dollars?
Yes it is true. Learn More.
Yes it is true.
If you have an un-insured container on the water with 200,000.00 of product inside and the container falls overboard, the limit of liability for the carrier is 500.00.
Please protect you cargo with marine cargo insurance.
Call us for a quote!
Here are the terms for shipping under our ocean B/L.
(1) The Ocean Carrier shall not be liable for loss or damage in an amount exceeding the minimum allowable per package or unit in the applicable version of the Hague Rules, which when U.S. COGSA is applicable is an amount not exceeding U.S. $500 per package or customary freight unit, unless the value (and nature) of Goods higher than this amount has been declared in writing by the Merchant before receipt of the Goods by the Ocean Carrier and inserted on the face of this Bill of Lading and extra freight has been paid as required. If the actual value of the Goods per package or unit exceeds such declared value, the value shall nevertheless be deemed to be the declared value, and the Ocean Carrier’s liability, if any, shall not exceed the declared value. Any partial loss or damage shall be adjusted pro rata on the basis of such declared value. If the declared value has been willfully misstated or is markedly higher than the actual value, the Ocean Carrier shall not be liable to pay any compensation. (2) Where the cargo has been packed into a container or unitized into a similar article of transport by or on behalf of the Merchant, it is expressly agreed that the number of such containers or similar articles of transport shown on the face of this Bill of Lading shall be considered as the number of the packages or units for the purpose of the application of the limitation of liability provided for in this Article.
See the full page terms and conditions in the attached file.
This is an exact copy of our B/L terms as printed on each B/L.
Here are some news clips from the disaster:
Hundreds of Containers Lost from MSC Napoli
Coastguards are on alert after severe gales rocked a beached cargo ship in Lyme Bay throwing up to 150 containers into the sea as she suffered a 35 degree list to starboard. The MSC Napoli is carrying nearly 2,400 containers, and was beached near to Sidmouth in east Devon to prevent her sinking.
Coastguards are advising that a Temporary Danger Area has also been set up around the vessel extending to a range of 3 miles and 2000ft. The London registered ship was at the centre of a storm-lashed rescue operation in the English Channel on Thursday after it was disabled when the engine room flooded more than 40 miles from the Cornish coast. All 26 crew of the 62,000-tonne Napoli were plucked to safety by Royal Navy rescue helicopters as they abandoned the ship in 40ft seas and 70mph winds. (pictured)
After the rescue operation had finished the drifting vessel was secured and was being towed to Portland for a salvage operation but the MCA took the decision to beach it following a “serious structural failure”.
Overnight Saturday, following the adverse weather conditions, the situation surrounding the MSC Napoli deteriorated and the vessel rolled over to 30 degrees. In total 158 containers are believed to have been lost, of which 2 contained dangerous goods. One of those contains perfume and battery acid, and the other contains small car parts such as air bag pre-tensioners.
The owners of the vessel have now appointed contractors to recover containers and materials lost from the vessel. The Coastguard Rescue Officers and police have been searching the shoreline and so far about 40 containers have been located ashore.
Members of the public are being warned not to approach any container they may find but to report it to Portland Coastguard.
French barrel maker loses over €100k in Napoli grounding
January 26, 2007
French barrel maker Tonnellerie Boutes has lost over €100k of barrels in the wreck of container ship MSC Napoli off the UK coast.
The Bordeaux tonnellerie lost 168 barrels, made from Allier and Vosges oak and each worth €650 (£427) on average, in the wreck. All the barriques were destined for winemakers in South Africa.
‘The barrels are definitively lost,’ Mr Morise, Boutes’ head of marketing, told decanter.com. ‘Once sea water has come into contact with them, they can no longer be used.’
Pictures of scavengers on the Devon coast near Branscombe showed them walking away with the pristine French oak barrels. When quizzed by journalists, one scavenger said ‘yeah, they’re totally empty – more’s the pity’.
Morise said that although the loss was covered by transport insurance and that the company had not lost money, it had lost time.
‘Although most will get by, there will be a few winemakers who will be in great difficulty,’ he said. ‘You can’t just replace 168 hand-made barrels overnight and by the nature of the business, timing is essential.’
Boutes sends 60% of its export via container ship and plans to send the replacement barrels, once made, by the same medium, forcing customers to wait several weeks.
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