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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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Thursday, 24 July 14
INDONESIA'S JUNE 2014 COAL EXPORT VOLUME DOWN 6.82%; AVERAGE SELLING PRICE DOWN
COALspot.com: Indonesia, one of the world's largest coal producer and the global leading multi grade coal exporter shipped around $1.70* ...
Thursday, 24 July 14
HANDY: SOUTH AFRICA SOFTENED A BIT, HERE RATES ARE AT AROUND 8K +150K BB FOR TRIPS EAST - FEARNLEYS AS
Handy
The handy market in the Atlantic is going sideways and a tick down on low activity. Levels hoovering around USD 5k on Supras. The SMX marke ...
Thursday, 24 July 14
INDONESIAN COAL EXPORTERS ARE REQUIRED TO OBTAIN ET-BATUBARA UNDER LATEST TRADE MINISTRY'S NEW REGULATION
COALspot.com: Indonesia's trade ministry has issued regulation No. 39/M-DAG/PER/7/2014 which is requires exporters of power plant coal as ...
Wednesday, 23 July 14
PANAMAXES WERE BACK ON A DOWNWARD COURSE; CAPES WERE FEELING THE MOST PRESSURE - INTERMODAL
COALspot.com: The Dry Bulk market was on a downward spiral this week, with the BDI noting another week-on-week decline of the magnitude of 10% this ...
Wednesday, 23 July 14
WEEKLY SHIPPING MARKET INSIGHT - INTERMODAL
In Australia, the world’s largest mining group, BHP Billiton, will beat the iron ore export target of more than 220 million tonnes for 2014. ...
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Showing 3581 to 3585 news of total 6871 |
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- Grasim Industreis Ltd - India
- SMG Consultants - Indonesia
- Kaltim Prima Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Rio Tinto Coal - Australia
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Ind-Barath Power Infra Limited - India
- Star Paper Mills Limited - India
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Wood Mackenzie - Singapore
- Edison Trading Spa - Italy
- PTC India Limited - India
- ASAPP Information Group - India
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- IEA Clean Coal Centre - UK
- Sojitz Corporation - Japan
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- AsiaOL BioFuels Corp., Philippines
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Interocean Group of Companies - India
- Economic Council, Georgia
- Formosa Plastics Group - Taiwan
- Ambuja Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Riau Bara Harum - Indonesia
- Parliament of New Zealand
- Goldman Sachs - Singapore
- London Commodity Brokers - England
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Ministry of Finance - Indonesia
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Thai Mozambique Logistica
- Pipit Mutiara Jaya. PT, Indonesia
- VISA Power Limited - India
- Bukit Makmur.PT - Indonesia
- Merrill Lynch Commodities Europe
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Coastal Gujarat Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Global Business Power Corporation, Philippines
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Mjunction Services Limited - India
- Krishnapatnam Port Company Ltd. - India
- Posco Energy - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- IHS Mccloskey Coal Group - USA
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Borneo Indobara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Madhucon Powers Ltd - India
- Meralco Power Generation, Philippines
- GAC Shipping (India) Pvt Ltd
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Orica Mining Services - Indonesia
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Georgia Ports Authority, United States
- Electricity Authority, New Zealand
- Barasentosa Lestari - Indonesia
- The Treasury - Australian Government
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- India Bulls Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Bhatia International Limited - India
- Thiess Contractors Indonesia
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- Meenaskhi Energy Private Limited - India
- Salva Resources Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Semirara Mining Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Savvy Resources Ltd - HongKong
- Toyota Tsusho Corporation, Japan
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- McConnell Dowell - Australia
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Latin American Coal - Colombia
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Tamil Nadu electricity Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- PowerSource Philippines DevCo
- Gujarat Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Dalmia Cement Bharat India
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