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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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Sunday, 13 July 14
PANAMAX INDEX GAINS SLIGHTLY THIS WEEK; CAPE INDEX FALLS ALMOST 21.40%
COALspot.com: This week the freight market fell again after gaining last week. The cape index was down almost 21.40 pct and closed at 1465 points.
...
Friday, 11 July 14
EUROPE HAS A SUBSTANTIAL SURPLUS IN COAL SUPPLIES; RENEWABLE ENERGIES ARE REDUCING THE FULL-LOAD OPERATING HOURS OF HARD COAL-FIRED POWER PLANTS - VDKI
COALspot.com: General conditions for coal-fired power plants must be improved if the energy turnaround is to be a success, said German coal importe ...
Friday, 11 July 14
DR.CIESLIK RE-ELECTED AS CEO OF GERMAN COAL IMPORTER ASSOCIATION (VDKI)
Press Release : Dr Cieslik re-elected as CEO of German Coal Importer Association (VDKi) for the period 2014 – 2018. The German Coal Importer ...
Friday, 11 July 14
PORT OF NEWCASTLE SHIPPED $ 1.031 BILLION WORTH OF 11.744 MILLION TONS OF COAL IN JUNE 2014
COALspot.com: Port of Newcastle has shipped 11,744,396 tons of coal for the month ended 30 June 2014. According to Port’s monthly report, YTD ...
Friday, 11 July 14
UNITED STATE'S MONTHLY COAL OUTPUT FALLS 5.53% IN JUNE
COALspot.com – United States the world's second largest coal producer, produced approximately 18.1 million short tons (mmst) of coal in a ...
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- Kideco Jaya Agung - Indonesia
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- Mercator Lines Limited - India
- PowerSource Philippines DevCo
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Carbofer General Trading SA - India
- Borneo Indobara - Indonesia
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- India Bulls Power Limited - India
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- PTC India Limited - India
- Antam Resourcindo - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- Sojitz Corporation - Japan
- Meenaskhi Energy Private Limited - India
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- Ceylon Electricity Board - Sri Lanka
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- Pendopo Energi Batubara - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- Bukit Baiduri Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- OPG Power Generation Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Indian Oil Corporation Limited
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- Kohat Cement Company Ltd. - Pakistan
- Petrochimia International Co. Ltd.- Taiwan
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Goldman Sachs - Singapore
- Wilmar Investment Holdings
- Ind-Barath Power Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Africa Commodities Group - South Africa
- Oldendorff Carriers - Singapore
- Central Electricity Authority - India
- Meralco Power Generation, Philippines
- Bhushan Steel Limited - India
- Dalmia Cement Bharat India
- VISA Power Limited - India
- Banpu Public Company Limited - Thailand
- Altura Mining Limited, Indonesia
- Bangladesh Power Developement Board
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- Aditya Birla Group - India
- SMC Global Power, Philippines
- Thiess Contractors Indonesia
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kartika Selabumi Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- AsiaOL BioFuels Corp., Philippines
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Economic Council, Georgia
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Singapore Mercantile Exchange
- Chettinad Cement Corporation Ltd - India
- Marubeni Corporation - India
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- The University of Queensland
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Bukit Asam (Persero) Tbk - Indonesia
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Planning Commission, India
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- Global Green Power PLC Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Commonwealth Bank - Australia
- International Coal Ventures Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Mines - Canada
- Australian Coal Association
- Interocean Group of Companies - India
- Bhoruka Overseas - Indonesia
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- New Zealand Coal & Carbon
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Orica Mining Services - Indonesia
- Essar Steel Hazira Ltd - India
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Mjunction Services Limited - India
- Deloitte Consulting - India
- Gujarat Sidhee Cement - India
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
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