Logistics and Warehouse Insurance: Understanding its Complexity
In October 2013, a fire blazed through Brazil’s Santos port, destroying six warehouses and the 180,000 tons of raw sugar inside Sugar Company Copersucar’s terminal. The fire hit all of the sugar giant’s warehouses at the port and left many exporters holding contracts for sugar with an empty bag. Following the fire, Copersucar declared “force majeure” to third party exporters who had contracts to ship the sugar through the now-burned terminal. Force majeure is a legal term referring…
Cosan Declares Force Majeure to Some Sugar Clients
Brazilian sugar exporter Cosan SA declared force majeure to some clients after a fire destroyed one of its 11 warehouses at the Port of Santos, a press representative said on Tuesday. The measure was preventative while the company assesses the damage from the fire that firefighters controlled on Monday. Some orders could be delayed, the representative said. She declined to say how many clients were affected. One of two terminals operated by Rumo Logística, Cosan's transportation unit, was unaffected by the fire and at least one berth at the second terminal, terminal 19 started operating on Monday. Cosan is evaluating whether any of the 15,000 tonnes of sugar in Warehouse 10 could be saved and did not know when work to rebuild the warehouse could begin, the representative said.
Fire Controlled at Brazil Sugar Export Terminal
Firefighters at Brazil's Santos Port contained a blaze at two sugar warehouses operated by Cosan SA early on Monday, but the damage threatened to disrupt exports. The fire broke out at the sugar terminal's Warehouse X at 4:30 p.m. local time (1930 GMT) on Sunday, and 100 firefighters were on site Monday morning, said press representatives for Cosan, Brazil's biggest sugar producer. The cause of the fire was unknown. Last October, fire gutted the Santos export terminal of Brazil's largest sugar trader, Copersucar SA, quickly sending futures prices up 6 percent and causing the trader to issue force majeure to its clients. A spokesman at the Santos fire department said workers had finished controlling the fire and started an "aftermath" operation around 4 a.m. local time.
