We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 18 June 14
CHINESE STEEL PRODUCTION SETS RECORD DURING FIRST TEN DAYS OF JUNE - COMMODORE RESEARCH & CONSULTANCY
Recently released data shows that average daily crude steel production at China's key steel mills hit a record high of 1.833 million tons durin ...
Wednesday, 18 June 14
MARKET INSIGHT - TIMOS PAPADIMITRIOU
Back in January the expectations for Q3 and Q4 were more than great. Talks and claims for a rising BDI and a healthy market were coming from everyw ...
Tuesday, 17 June 14
DRY BULK FREIGHT RATES TO RISE DURING THE SECOND HALF OF 2014, AS CHINA IS EXPECTED TO START IMPORTING MORE IRON ORE FROM BRAZIL - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
In its latest analysis of the dry bulk market, BIMCO said that it doesn’t expect freight rates to react significantly to increased demand bef ...
Monday, 16 June 14
INDONESIAN COAL SWAPS FOR Q3 DELIVERY FALL 2.34 % MONTH ON MONTH
COALspot.com: Indonesian coal swaps for average Q3’ 2014 lost on day, week and on month according to AsiaClear OTC coal swap's reports re ...
Monday, 16 June 14
API 8 CFR SOUTH CHINA COAL SWAPS FALL CONTINUES THIS PAST WEEK
COALspot.com: API 8 CFR South China Coal swaps for average Q3 14 deliveries lost 4.34 percent month on month and closed at US$ 71.05 per mt a ...
|
|
|
Showing 3651 to 3655 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Straits Asia Resources Limited - Singapore
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Ind-Barath Power Infra Limited - India
- Wilmar Investment Holdings
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Samtan Co., Ltd - South Korea
- Thai Mozambique Logistica
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Bhatia International Limited - India
- The University of Queensland
- SN Aboitiz Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- Wood Mackenzie - Singapore
- Gujarat Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- London Commodity Brokers - England
- Leighton Contractors Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Bahari Cakrawala Sebuku - Indonesia
- Global Coal Blending Company Limited - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- CNBM International Corporation - China
- MS Steel International - UAE
- ASAPP Information Group - India
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Formosa Plastics Group - Taiwan
- The Treasury - Australian Government
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Marubeni Corporation - India
- PNOC Exploration Corporation - Philippines
- Deloitte Consulting - India
- Karaikal Port Pvt Ltd - India
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- PTC India Limited - India
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining and Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Australian Coal Association
- Pendopo Energi Batubara - Indonesia
- Posco Energy - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Neyveli Lignite Corporation Ltd, - India
- Economic Council, Georgia
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Transport, Egypt
- Directorate General of MIneral and Coal - Indonesia
- Minerals Council of Australia
- Oldendorff Carriers - Singapore
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- Cigading International Bulk Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Essar Steel Hazira Ltd - India
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- Global Green Power PLC Corporation, Philippines
- TeaM Sual Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Power Finance Corporation Ltd., India
- AsiaOL BioFuels Corp., Philippines
- Jindal Steel & Power Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Planning Commission, India
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- PetroVietnam Power Coal Import and Supply Company
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Timah Investasi Mineral - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- Maheswari Brothers Coal Limited - India
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Madhucon Powers Ltd - India
- South Luzon Thermal Energy Corporation
- Sinarmas Energy and Mining - Indonesia
- Agrawal Coal Company - India
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Parry Sugars Refinery, India
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- European Bulk Services B.V. - Netherlands
- Aboitiz Power Corporation - Philippines
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Bayan Resources Tbk. - Indonesia
- Banpu Public Company Limited - Thailand
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Merrill Lynch Commodities Europe
- Sarangani Energy Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Ministry of Mines - Canada
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- Star Paper Mills Limited - India
- Larsen & Toubro Limited - India
- Singapore Mercantile Exchange
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thiess Contractors Indonesia
- CIMB Investment Bank - Malaysia
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- IHS Mccloskey Coal Group - USA
|
| |
| |
|
