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, 14 May 14
COAL PRICES IN CHINA HAVE DROPPED TO THEIR LOWEST LEVELS SINCE END-2008
COALspot.com: Coal prices in China have dropped to their lowest levels since end-2008, Fitch says in its latest rating report on one of the coal ...
Wednesday, 14 May 14
ALMOST THROUGH THE HALF OF THE YEAR, THE DRY BULK INDEX SHOW SIGNS OF WEAKNESS; CREATING TO BOTH EXISTING SHIP OWNERS AND POTENTIAL INVESTORS A LOT OF INSECURITY - PANOS MAKRINOS
Almost through the half of the year, the overall shipping market and more specifically the Dry Bulk Index show signs of weakness, creating to bo ...
Tuesday, 13 May 14
NPC COAL EXPORT VOLUMES PLUNGE TO 2.48 MMT WEEK ON WEEK
COALspot.com: In the week ended 07:00 hours 12 May 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Quee ...
Tuesday, 13 May 14
YET ANOTHER POSIDONIA EXHIBITION IS ON ITS WAY - INTERMODAL
With less than a month to go before another Posidonia exhibition starts and all the parties and celebrations get under way we thought that it wo ...
Monday, 12 May 14
TAIPOWER TO IMPORT AROUND 1 MMT OF SUB-BITUMINOUS COAL DURING AUGUST 2014 THROUGH NOVEMBER 2014
COALspot.com - Taiwan Power Company intends to procure 1.050 million tons of sub-bituminous coal for Taipower thermal power plant through open t ...
|
|
|
Showing 3706 to 3710 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Sindya Power Generating Company Private Ltd
- Indian Energy Exchange, India
- Orica Australia Pty. Ltd.
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Directorate General of MIneral and Coal - Indonesia
- Coal and Oil Company - UAE
- Parliament of New Zealand
- Kartika Selabumi Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- AsiaOL BioFuels Corp., Philippines
- SMG Consultants - Indonesia
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- CIMB Investment Bank - Malaysia
- Oldendorff Carriers - Singapore
- Orica Mining Services - Indonesia
- Semirara Mining Corp, Philippines
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- PNOC Exploration Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- Metalloyd Limited - United Kingdom
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- Meralco Power Generation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Cement Manufacturers Association - India
- Tata Chemicals Ltd - India
- Bukit Baiduri Energy - Indonesia
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Mjunction Services Limited - India
- Madhucon Powers Ltd - India
- Sarangani Energy Corporation, Philippines
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Semirara Mining and Power Corporation, Philippines
- Dalmia Cement Bharat India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Independent Power Producers Association of India
- Ceylon Electricity Board - Sri Lanka
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Global Coal Blending Company Limited - Australia
- Ministry of Transport, Egypt
- Vedanta Resources Plc - India
- South Luzon Thermal Energy Corporation
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Georgia Ports Authority, United States
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- Simpson Spence & Young - Indonesia
- European Bulk Services B.V. - Netherlands
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- CNBM International Corporation - China
- The Treasury - Australian Government
- OPG Power Generation Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Bhoruka Overseas - Indonesia
- Aditya Birla Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Riau Bara Harum - Indonesia
- Electricity Generating Authority of Thailand
- Uttam Galva Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Kumho Petrochemical, South Korea
- Economic Council, Georgia
- Vizag Seaport Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- Singapore Mercantile Exchange
- Lanco Infratech Ltd - India
- Jindal Steel & Power Ltd - India
- Bhatia International Limited - India
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- Bangladesh Power Developement Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Medco Energi Mining Internasional
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- Rashtriya Ispat Nigam Limited - India
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kideco Jaya Agung - Indonesia
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Bhushan Steel Limited - India
- Borneo Indobara - Indonesia
- Power Finance Corporation Ltd., India
- Timah Investasi Mineral - Indoneisa
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Australian Coal Association
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Energy - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- ASAPP Information Group - India
- Billiton Holdings Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Sakthi Sugars Limited - India
- London Commodity Brokers - England
- Jaiprakash Power Ventures ltd
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Ministry of Mines - Canada
- Kohat Cement Company Ltd. - Pakistan
- Central Java Power - Indonesia
- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- Deloitte Consulting - India
- Goldman Sachs - Singapore
- Leighton Contractors Pty Ltd - Australia
- Central Electricity Authority - India
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- McConnell Dowell - Australia
|
| |
| |
|
