Changing Patterns in World Trade Bring Unforeseen Liabilities

MarineLink.com
Wednesday, December 04, 2013

In a speech to be given at the TOC Container Supply Chain: Middle East Conference on December 9, Andrew Kemp, Regional Director EMEA of the freight transport insurance specialist TT Club will warn of the additional liability that freight forwarders and other logistics operators are open to as a consequence of dynamic changes in global trade.

Statistics compiled by the World Bank reflect the fast-growing influence of the so-called South-South trade routes between Latin America, Africa and Asia. The value of exports on this trade now exceeds that between the developing and developed countries of the world, representing 32% of total global trade. As both an influential import/export region as well as a key hub for the movement of goods in the South-South trade, the Middle East, and its transport operators are experiencing significant growth opportunities.  In conjunction with this business growth has come a dynamic change in the amount and variety of services freight forwarders, logistics service providers and other transport companies are offering shippers.

“This trend is not limited to operators in the Middle East, indeed we are seeing such developments across the globe. However, I’m taking the opportunity of speaking at the TOC Conference to highlight the consequences of the changes to an operator’s risk profile to the freight transport sector in the region”, says Kemp.

Such new trade growth has meant that the demands on forwarders and other logistics operators are changing rapidly from the traditional organisation of international movement of goods.  Manufacturers, retailers and other shippers are increasingly requiring the provision of additional logistics services such as warehousing, sub-assembly and packing, with tight margins for error and sometimes harsh financial penalties for breakdowns in their supply chains.

As Kemp will highlight, “As a consequence of providing these additional services, whether sub-contracted or provided within their own operation, forwarders are typically accepting extended contractual exposure, in terms not only of the period during which customer’s goods are in their custody but also usually more onerous terms and conditions. Simply put, the more complex the services undertaken, the greater are the chances of errors and omissions occurring”.

TT Club has experienced an expanded range in types of claims occurring as a result of the extension of liabilities. With the increased complexity in services and contractual arrangements it is becoming important to select an insurer with specialism in assessing and advising on the level of exposure that the signing of a particular contract may imply.

Kemp will conclude, “Awareness of these circumstances, and the seeking of professional advice on the extent of the possible risks which may result, are essential for the modern day forwarder and logistics operator to assimilate, particularly when involved in the rapidly developing Middle East hub”.

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

LNG Vessel with Wartsila Integrated Solutions Delivered to Evergas

The first in a series of 27,500 cbm 'Dragon' class vessels ordered by Evergas, a world renowned owner and operator of seaborne petrochemical and liquid gas transport vessels,

Executive Changes at Transocean

Transocean Ltd. today announced that, as mutually agreed with the company, Esa Ikaheimonen is stepping down as Executive Vice President and Chief Financial Officer effective immediately.

BMT, Endeavour Energy Win Africa’s LNG Import Terminal Contract

BMT Asia Pacific (BMT), a subsidiary of BMT Group Ltd, has been appointed Owners Engineer and lead design consultant by Endeavour Energy for the development

Container Ships

Chevron Hires Viking Princess

Eidesvik Offshore has signed a contract for 19 months with Chevron UK employment for one platform supply vessel (PSV) Viking Princess.    The vessel will be

Wärtsilä Bags BWM Systems Order from Jinhai Shipyard

Wärtsilä Corporation, has received an order for ballast water management systems (BWMS) for three new container ships being built for a major European shipping

CMA-CGM to Call Port of Baltimore

International container shipping company CMA-CGM of France announced that it will begin service within the next couple of weeks to the Helen Delich Bentley Port of Baltimore.

News

LNG Vessel with Wartsila Integrated Solutions Delivered to Evergas

The first in a series of 27,500 cbm 'Dragon' class vessels ordered by Evergas, a world renowned owner and operator of seaborne petrochemical and liquid gas transport vessels,

Executive Changes at Transocean

Transocean Ltd. today announced that, as mutually agreed with the company, Esa Ikaheimonen is stepping down as Executive Vice President and Chief Financial Officer effective immediately.

BMT, Endeavour Energy Win Africa’s LNG Import Terminal Contract

BMT Asia Pacific (BMT), a subsidiary of BMT Group Ltd, has been appointed Owners Engineer and lead design consultant by Endeavour Energy for the development

Insurance

VIKING’s Top Safety Offerings at Nor-Shipping

Marine safety equipment leader VIKING Life-Saving Equipment will appear in force at Nor-Shipping 2015, displaying both innovative products and services that

Shell CEO Backs Fossil Fuels, Climate Change Warnings

The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said on Friday.

CMA CGM Implements War Risk Surcharge in Yemen

French container shipping company CMA CGM said it has implemented a War Risk Surcharge on all shipments to Hodeidah, Yemen.   Applicable with immediate effect,

Logistics

Chevron Hires Viking Princess

Eidesvik Offshore has signed a contract for 19 months with Chevron UK employment for one platform supply vessel (PSV) Viking Princess.    The vessel will be

Aegean Marine Profit Beats Estimates

Greece-based Aegean Marine Petroleum Network Inc. (ANW) reported first-quarter earnings of $12.2 million or $0.25 per share compared with $5.1 million or $0.11 per share last year.

Hapag-Lloyd Grows Feeder Network in Scandinavia

Ocean carrier Hapag-Lloyd will be integrating the Port of Oslo into its Baltic Express Service (BAX) in June.    The BAX will then link a total of six ports in Estonia,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3303 sec (3 req/sec)