Alongside the earth’s climate, the current political climate in certain countries complicates cargo transport.
Attacks on vessels by Houthi rebels forced shipping companies to reroute transport to safer waters and round the Cape of Good Hope in Africa. The consequence? A much longer and costlier journey.
But for Markus Ebest, Marine Risk Engineer at HDI Risk Consulting Germany, the biggest problem with this solution is that more ships are needed to transport the same amount of goods in the same amount of time. This in turn means that older, breakdown-prone ships from secondary markets are often reactivated to cover the increased demand. This can significantly increase the transport risk.
Proprietary ship valuation tools help to evaluate the risk of technical failure of a seagoing vessel and the resulting direct or indirect implications for the goods. An approximate assessment of the ship's value in relation to the known value of the goods also helps to anticipate the level of costs borne by the owner of the goods in the event of a General Average due to technical failure.
In the end, safe transport means understanding the multiple facets of risks and meeting them head-on.
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Large Enterprises Account Manager & Liability Underwriter @ If Insurance Baltic
1dFantastic update!