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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, 23 July 14
HARD COAL 2013: THE WORLD'S SECOND-MOST IMPORTANT ENERGY SOURCE AND GUARANTOR FOR THE SECURITY OF ENERGY SUPPLIES DURING TIMES OF CRISIS
Hard coal is again in 2013 the fastest-growing fossil primary energy source in the world. As shown in the BP Statistical Review 2014, it covered ab ...
Tuesday, 22 July 14
INDONESIAN ELECTION RESULT ENCOURAGING FOR FOREIGN INVESTMENT IN ENERGY AND MINING SECTORS - WOOD MACKENZIE
Joko Widodo-Jusuf Kalla has been announced as the official winner of Indonesia's presidential election. Joko Widodo, or Jokowi, is viewed as a ...
Tuesday, 22 July 14
THE CURRENT COAL PRICES ARE UNPROFITABLE FOR MINERS; COAL PRICES WILL GRADUALLY INCREASE - FITCH
COALspot.com: The Fitch Ratings expect the benchmark Newcastle coal prices (currently at about USD70/MT) to gradually increase.
Fitch's la ...
Tuesday, 22 July 14
SUB-BIT FOB INDONESIA COAL Q3' 14 DOWN 5.21%; Q4' 14 DOWN 3.56%; Q1' 15 DOWN 4.75% M-O-M
COALspot.com: Indonesian coal swaps for average Q3’ 2014 flat on day, weak week on week and on month according to AsiaClear OTC coal swap' ...
Tuesday, 22 July 14
INDONESIA'S MINERAL EXPORT BAN: CHINA UNDER PRESSURE? - CLARKSONS
In January 2014, Indonesia introduced new regulations on exports of unprocessed minerals. Exports of some minerals have been heavily taxed, whilst ...
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- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Heidelberg Cement - Germany
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Vedanta Resources Plc - India
- Simpson Spence & Young - Indonesia
- Kartika Selabumi Mining - Indonesia
- IEA Clean Coal Centre - UK
- Indo Tambangraya Megah - Indonesia
- Meenaskhi Energy Private Limited - India
- Rio Tinto Coal - Australia
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Intertek Mineral Services - Indonesia
- Parliament of New Zealand
- Maheswari Brothers Coal Limited - India
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Karaikal Port Pvt Ltd - India
- Indian Oil Corporation Limited
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Power Finance Corporation Ltd., India
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Borneo Indobara - Indonesia
- LBH Netherlands Bv - Netherlands
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Bayan Resources Tbk. - Indonesia
- Global Business Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Indonesian Coal Mining Association
- International Coal Ventures Pvt Ltd - India
- Ministry of Transport, Egypt
- Australian Coal Association
- Kalimantan Lumbung Energi - Indonesia
- Price Waterhouse Coopers - Russia
- TeaM Sual Corporation - Philippines
- Indogreen Group - Indonesia
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Latin American Coal - Colombia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Finance - Indonesia
- Makarim & Taira - Indonesia
- Posco Energy - South Korea
- Krishnapatnam Port Company Ltd. - India
- Anglo American - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- MS Steel International - UAE
- Bangladesh Power Developement Board
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- PTC India Limited - India
- Tamil Nadu electricity Board
- Interocean Group of Companies - India
- Wood Mackenzie - Singapore
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Wilmar Investment Holdings
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- Petrochimia International Co. Ltd.- Taiwan
- San Jose City I Power Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Kumho Petrochemical, South Korea
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Energy Link Ltd, New Zealand
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Singapore Mercantile Exchange
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- Xindia Steels Limited - India
- Electricity Authority, New Zealand
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Thiess Contractors Indonesia
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- New Zealand Coal & Carbon
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Globalindo Alam Lestari - Indonesia
- Central Electricity Authority - India
- Sakthi Sugars Limited - India
- Mercator Lines Limited - India
- Oldendorff Carriers - Singapore
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Energy Development Corp, Philippines
- Electricity Generating Authority of Thailand
- CNBM International Corporation - China
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Samtan Co., Ltd - South Korea
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Star Paper Mills Limited - India
- Mjunction Services Limited - India
- White Energy Company Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Bhatia International Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bhoruka Overseas - Indonesia
- Indika Energy - Indonesia
- ASAPP Information Group - India
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Malabar Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Antam Resourcindo - Indonesia
- Thai Mozambique Logistica
- Dalmia Cement Bharat India
- The State Trading Corporation of India Ltd
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