Cargo Delivery Delays Plague All Hemispheres in May

Stevedore strikes worldwide gained headlines last year and caused serious delays in shipments, but cargo delivery delays can result from numerous problems—both natural and man-made.

Thick ice on Lake Superior caused shipping delays in late April and early May 2014, with 60% of the lake covered with ice—eight feet thick in some places. During that same time, cargo containers filled with products piled up on the docks in the Philippines due to a rush-hour truck ban. Incoming containers sat at the International Container Terminal Services port for an average of 10 days after Manila’s mayor banned truck traffic during rush hour to ease gridlock. Shipping backlogs are so bad they are sapping the fuel of economic growth in the country, financial and business groups say. Elsewhere, pickets at docks and threatened strikes by stevedores, truckers, tug operators and train drivers have the potential to slow cargo traffic from Australia to South America to India.

So what is your company to do? Roanoke Trade insurance specialists will help you determine the known and potential hazards you can expect to encounter, and we will help you understand the limitations of standard coverage. For example, an ocean cargo insurance policy has a limited duration of coverage, and strikes, riots and civil commotion are not covered by the standard open marine insurance policy. For motor truck cargo insurance coverage or bailee of cargo insurance policyholders, cargo shipment delays can represent serious liability risks that could fall outside of the standard insurance policy.

The answer might lie in a marine extension clause, which can extend protection for the policyholder in situations where cargo must be deviated en route, is delayed, must be transshipped or encounters a number of other changes in its voyage that are outside the policyholder’s control. The extension can be written to supersede duration limits established by a warehouse-to-warehouse clause or other transportation liability insurance policies.

If you are concerned about strikes, riots and other civil commotion and their implications for your cargo and liability for it, there are insurers willing to cover those exposures. It’s a matter of working with your Roanoke Trade broker to find a policy most suited to the hazards you will face.

We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE.

Sources: Washington Times, Bloomberg, Port Technology

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