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Wednesday, 13 August 14
WHAT DOES PROJECT CARGO REALLY MEAN TO INSURERS?
 KNOWLEDGE TO ELEVATE
Richard Kamppari-Baker, claims manager of FP Marine Risks, explains the challenges of project cargo risk assessment from an insurer’s point of view.
Project cargo is the large, oversized, overweight heavy lift cargo or critical pieces of equipment that may be high value or time sensitive and sometimes both. Project cargo insurance covers against loss or damage in transit for critical components of large civil, production facility, infrastructure, and/or construction projects.
Considerations
In addition, there are considerations to be taken into account for Delay in Start up (DSU) and Advanced Loss of Profits (ALOP) against loss of income and profit arising from late or non-delivery of critical components due to an accidental occurrence in transit.
Failure of a shipment to arrive, or not arrive intact, can turn a USD10 million cargo loss into a claim ten times its value when factoring in the knock-on effects of one piece of equipment not being ready at a particular date, which then causes disastrous consequences to the project as a whole. Whilst failure of any cargo to arrive has an enormous impact on operations, for project cargo this has far reaching ramifications.
For this reason the assured look towards insurers to cover the additional economic cost when something goes wrong.
Evaluating risk
Insurers will only compensate the assured for the loss or put it back in the same position. So how does an underwriter even start to evaluate the risk when the consequences are not easily apparent? Project cargo is specifically dependent on transport logistics and tight timeframes, so missing any goal or target will have serious knock-on effects.
To begin a proper assessment of the exposure, a few crucial factors need to be considered. The time and costs for re-fabrication as well as for reshipping the item need to be calculated, which is not an easy task when the bespoke nature of these items is considered.
During this time, insurers will need to calculate the knock-on effects when other goals or targets cannot be met. This means they need to evaluate the loss of profit and/or other operational costs at each stage affected until the project is completed. This is by no means guesswork and there is a complex system involved in calculating each risk.
Appraising the exposure is only part of the problem to insurers because one must consider how to move such an item. Project cargo will most likely be out-of-gauge or exceed regular weight limits, so the question is how the transport is to be done. Moving pylons across muddy roads in India during monsoon season, or loading reactors onto vessels, need the highest level of expertise. The services of engineers, surveyors, mariners, naval architects, consultants and government officials will be required. Careful consideration is essential in deciding who to employ.
Relevant experience
A major factor is to ensure the right people with the relevant experience are chosen. A team of international experts may need to be flown out at each stage of the transit. A key role is an individual who will be in charge of coordinating all communications amongst the team, ensuring all members are properly informed whilst avoiding any misunderstanding whatsoever.
Once the determined route has been scrutinised, the next stage is to ensure all requirements are met. Inland transits often require special authorization or conditions and vessels might need special clearance from their P&I clubs or insurers.
Insurers are very reliant on the assured and other experts to advise on stowage and on whether an item is capable of withstanding the rigours of transit. Items that protrude or carry extreme weights present a huge problem while stationary, but these complications are magnified tenfold when combined with extreme forces of rolling and pitching while in transit.
Calculations need to be carried out by professionals, securing contractors to ensure correct fastenings, buttresses, and so on, are used. Stability during the voyage is essential, so great care is taken to ensure the centre of gravity is evenly distributed.
All the advice from the experts is only as good as Mother Nature permits. A final weather routing will often need to be agreed before the shipment can commence.
No matter how fastidious insurers, carriers, freight forwarders and shippers are, there is a chance that an accident will happen. Claims will of course arise when route surveys are not properly carried out of when stowage of fittings are not adequate.
There will always be unforeseen events that cannot be predicted. The role of the insurer is not to take a gamble on whether a shipment will arrive in time and good order, but to know the risks and eliminate the uncertainties. For project cargo this is critically important, given the high cargo values and the potentially enormous claims involved.
Source: FP Marine / Hellenic Shipping
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Monday, 11 August 14
SGX CFR SOUTH CHINA COAL SWAPS DIRECTION HEADING TO NORTH
COALspot.com: API 8 CFR South China Coal swap for delivery in September 2014 increased US$ 0.50 (+0.74%) day on day and US$ 1.55 (+2.33%)&nbs ...
Monday, 11 August 14
A TALE OF TWO TRADES - EVA TZIMA
COALspot.com: It has without a doubt been “a cruel, cruel summer” for the Dry Bulk market so far and with second hand values still stan ...
Sunday, 10 August 14
FREIGHT RATES FROM INDONESIA TO INDIA IS EXPECTED TO BE STEADY NEXT WEEK - VISTAAR
COALspot.com: This week the BDI and other segments saw some improvements. The BDI increased by 3.46 pct week on week and closed at 777 points.
...
Friday, 08 August 14
MINING DISPUTE IS CRIPPLING LOCAL ECONOMIES IN EASTERN INDONESIA - JG
- By Iwan Harsono -
It seems as if there’s no end in sight to the series of negotiations between the government and mining companies about ...
Friday, 08 August 14
CAPESIZE RATES ARE REMAINING MORE OR LESS UNCHANGED AT BOTTOM LOW LEVELS - FEARNLEYS AS
Handy
An improving sentiment with stronger rates and fair demand for prompt tonnage in the Atlantic, both on the Continent and in the Med for the ...
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- Eastern Coal Council - USA
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Baramulti Group, Indonesia
- Mercuria Energy - Indonesia
- Heidelberg Cement - Germany
- CIMB Investment Bank - Malaysia
- Parliament of New Zealand
- Agrawal Coal Company - India
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Meenaskhi Energy Private Limited - India
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- India Bulls Power Limited - India
- Kobexindo Tractors - Indoneisa
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- Indogreen Group - Indonesia
- Singapore Mercantile Exchange
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- Essar Steel Hazira Ltd - India
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Ministry of Transport, Egypt
- Semirara Mining Corp, Philippines
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Videocon Industries ltd - India
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- ASAPP Information Group - India
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Thai Mozambique Logistica
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Indian Energy Exchange, India
- PetroVietnam Power Coal Import and Supply Company
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Indian Oil Corporation Limited
- Kalimantan Lumbung Energi - Indonesia
- SN Aboitiz Power Inc, Philippines
- Madhucon Powers Ltd - India
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Simpson Spence & Young - Indonesia
- Standard Chartered Bank - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- SMC Global Power, Philippines
- Wilmar Investment Holdings
- Aditya Birla Group - India
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- Global Business Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- The Treasury - Australian Government
- Sical Logistics Limited - India
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Renaissance Capital - South Africa
- Sree Jayajothi Cements Limited - India
- Orica Mining Services - Indonesia
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Edison Trading Spa - Italy
- Vedanta Resources Plc - India
- Deloitte Consulting - India
- Electricity Generating Authority of Thailand
- White Energy Company Limited
- IHS Mccloskey Coal Group - USA
- Kepco SPC Power Corporation, Philippines
- Bangladesh Power Developement Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Price Waterhouse Coopers - Russia
- Merrill Lynch Commodities Europe
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Central Java Power - Indonesia
- Grasim Industreis Ltd - India
- CNBM International Corporation - China
- Bayan Resources Tbk. - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Australian Coal Association
- Indonesian Coal Mining Association
- Asmin Koalindo Tuhup - Indonesia
- GVK Power & Infra Limited - India
- Sojitz Corporation - Japan
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Coastal Gujarat Power Limited - India
- Attock Cement Pakistan Limited
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- Makarim & Taira - Indonesia
- Manunggal Multi Energi - Indonesia
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- Medco Energi Mining Internasional
- Globalindo Alam Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Antam Resourcindo - Indonesia
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Anglo American - United Kingdom
- Minerals Council of Australia
- PTC India Limited - India
- Sarangani Energy Corporation, Philippines
- Dalmia Cement Bharat India
- Georgia Ports Authority, United States
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Gujarat Mineral Development Corp Ltd - India
- New Zealand Coal & Carbon
- Bukit Baiduri Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- TeaM Sual Corporation - Philippines
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
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