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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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Wednesday, 03 September 14
KOREA MIDLAND POWER CO. LTD INVITES BIDS FOR 1 MMT OF BITUMINOUS & SUB-BITUMINOUS COAL FOR BORYEONG POWER PLANT
COALspot.com: KOMIPO again in the market for 1 million tons of 5700 NAR and 4600 NAR coal for Jan – March 2015. South Korean state-owned util ...
Wednesday, 03 September 14
CFR S.CHINA COAL SWAP FOR JAN 2015 DELIVERY CLOSED AT $ 68.30 PMT; DOWN 2.43% W-O-W
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 0.95 (-1.39%) day on day and US$ 1.40 (-2.03%) week on wee ...
Tuesday, 02 September 14
BERAU COAL HAS AWARDED A CONTRACT EXTENSION TO BUMA FOR 647 MLN BCM OVERBURDEN REMOVAL
COALspot.com: PT Delta Dunia Makmur Tbk (“DOID”) has announced that its primary operating subsidiary, PT Bukit Makmur Mandiri Utama (&l ...
Monday, 01 September 14
GLOBALCOAL WELCOMES TWO NEW MARKET MEMBERS
COALspot.com: globalCOAL® announced today that two Market Members have joined its trading community. Both new Market Members are from the India ...
Sunday, 31 August 14
COAL FREIGHT RATES INTO INDIA FROM INDONESIA FIRM
COALspot.com: The freight market continued to firm this week. BDI up 5.42 percent week ended 29 August and closed at 1147 points while the Ca ...
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Showing 3511 to 3515 news of total 6871 |
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- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Aditya Birla Group - India
- ICICI Bank Limited - India
- Videocon Industries ltd - India
- Kapuas Tunggal Persada - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Chamber of Mines of South Africa
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- CIMB Investment Bank - Malaysia
- Bukit Baiduri Energy - Indonesia
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- Indonesian Coal Mining Association
- PetroVietnam Power Coal Import and Supply Company
- Vizag Seaport Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Gujarat Mineral Development Corp Ltd - India
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- Tamil Nadu electricity Board
- International Coal Ventures Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Electricity Generating Authority of Thailand
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- Australian Commodity Traders Exchange
- Posco Energy - South Korea
- OPG Power Generation Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Attock Cement Pakistan Limited
- San Jose City I Power Corp, Philippines
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- Antam Resourcindo - Indonesia
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Orica Australia Pty. Ltd.
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Georgia Ports Authority, United States
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Orica Mining Services - Indonesia
- Economic Council, Georgia
- Deloitte Consulting - India
- Vedanta Resources Plc - India
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Minerals Council of Australia
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Siam City Cement - Thailand
- Global Business Power Corporation, Philippines
- Malabar Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Interocean Group of Companies - India
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- GMR Energy Limited - India
- Wilmar Investment Holdings
- Karbindo Abesyapradhi - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- PNOC Exploration Corporation - Philippines
- Coalindo Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Directorate General of MIneral and Coal - Indonesia
- TeaM Sual Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Bhoruka Overseas - Indonesia
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- Bhatia International Limited - India
- Independent Power Producers Association of India
- Banpu Public Company Limited - Thailand
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- Indogreen Group - Indonesia
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Madhucon Powers Ltd - India
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- Sarangani Energy Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Power Finance Corporation Ltd., India
- The State Trading Corporation of India Ltd
- IEA Clean Coal Centre - UK
- Semirara Mining and Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Directorate Of Revenue Intelligence - India
- Parliament of New Zealand
- Central Electricity Authority - India
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Finance - Indonesia
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Kartika Selabumi Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Electricity Authority, New Zealand
- Straits Asia Resources Limited - Singapore
- Sical Logistics Limited - India
- Intertek Mineral Services - Indonesia
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Thai Mozambique Logistica
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- SMG Consultants - Indonesia
- Goldman Sachs - Singapore
- Thiess Contractors Indonesia
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- Cement Manufacturers Association - India
- Singapore Mercantile Exchange
- Africa Commodities Group - South Africa
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Energy Link Ltd, New Zealand
- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
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