Recent containership fires have once again underscored the critical need for proper shipper protection. The latest incident occurred at Sri Lanka’s Port of Colombo, where a fire broke out aboard the MSC Capetown III in the early hours of Sunday at the Jaya Container Terminal (JCT), according to the Sri Lanka Ports Authority (SLPA).
The SLPA reported that the fire, which is believed to have originated in the under-deck cargo space, escalated to an explosion. It was only the swift response from firefighters that prevented a catastrophic disaster. Notably, the vessel’s manifest indicated only one container carrying dangerous goods, which had already been offloaded along with 60 other boxes before any signs of fire or smoke appeared.
This incident follows two other significant ship fires in recent weeks: one on the Maersk Frankfurt off the Indian coast and another involving an explosion and fire on the YM Mobility at Ningbo Port in China.
These events highlight two recurring issues: the frequent mis-declaration of cargo, which puts otherwise safe cargo at risk, and the failure of many shippers to adequately protect their goods against such risks.
A significant portion of the cargo aboard the MSC Capetown, Maersk Frankfurt, and YM Mobility was likely uninsured. Many shippers mistakenly believe that their cargo is covered by the consignor, consignee, or their freight forwarders and carriers. While there may be some coverage under a freight forwarder’s or carrier’s standard trading conditions, this is typically limited and unlikely to cover the full value of the goods, leaving shippers with compensation far below their actual losses.
An even more critical consideration is that all cargo owners on a sea voyage share the risk and costs associated with protecting the vessel. This means that if expenses are incurred to preserve the vessel, continue the voyage, or deliver the cargo to its intended destination, these costs may be recoverable through General Average (GA).
GA is one of the most complex procedures in marine insurance and, despite several high-profile cases in recent years, remains rare and unfamiliar to many shippers, who often do not consider insuring against it.
To safeguard your cargo, we offer comprehensive All Risk marine insurance. Partnering with leading providers, we ensure your cargo is protected throughout transportation and storage, with options available on a per-shipment or annual basis.
For more information on our marine insurance and how to protect your cargo, please EMAIL Andy Costara.
