Guidelines for claims handling and submission

claims handling and submision

For obvious reasons, no one wants to receive cargo claims. More so, carriers who carry the cargo from A to B. It could possibly be the reason why there is a lot of misunderstanding among BCOs and OTIs about which documents are really necessary to submit and which are completely irrelevant in the process of claims recovery.

Below are some simple guidelines for claims handling and submissions. I hope this will help to make the claim submission process as efficient and as simple as possible for you.

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The beginning of the end for the Paper Bill of Lading

My Opinion

Many things have changed in the last 30 years in shipping and freight..

Many positive new developments have taken place with things from the vintage days of shipping either obsolete to almost obsolete now..

If you look at many of the news items about the industry recently, there has been a certain buzz and intensity around the electronic bill of lading..

I am fairly confident that people entering the shipping and freight industry in the next decade will be told that 2020 was the year that saw the beginning of the end for the paper “Bill of Lading” and the year in which the switch to “Electronic Bill of Lading” (eBL) began in earnest..

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China extends Ballast Water Treaty to cover Hong Kong SAR

shipping and freight news - shipping and freight resource

Ballast Water Treaty is an important international treaty which helps prevent the spread of potentially invasive aquatic species by ships.. This treaty got a major boost following China’s extension of the treaty to the Hong Kong Special Administrative Region.

Ships flagged to Hong Kong, China – the fourth largest flag Administration in the world by shipping tonnage – will now be required to apply the requirements of the Ballast Water Management Convention (BWM).. This mean that this treaty now covers more than 90% of shipping worldwide..

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4 industry executives look into the future of global supply chains

Webinar - future of supply chains

COVID-19 is probably the world’s most disliked word currently due to the rampant economic disruption it has wreaked on the world. All countries and all businesses around the world have been affected by this pandemic.

The supply chain industry is one industry that has also been affected severely. The industry has seen a massive drop in volumes, congestion both on land and at sea, job losses etc, although ironically this is one of the industries that has and is helping to fight this pandemic through its movement of essential goods like medical supplies, food and PPE.

At the end of March 2020, we set up a short survey sponsored by Ocean Insights to analyse the impact of the pandemic on the industry and its preparedness.

12,000 clicks of that survey and the analysis and a 95% engagement rate told us that in times of strife, people want to come together, understand what is going on and help each other out of this situation.

So, we got together a team of executives to discuss these issues in a webinar moderated by an equally celebrated and astute industry journalist.

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Investing in freight technologies – are you ready..?? Take this survey..

Transportation is the lifeblood of global supply chains. Whether it is raw materials, CKD (Completely Knocked Down), SKD (Semi Knocked Down), or FBU (Fully Built-Up), the movement of goods are handled through various modes – from origin to destination.

Supply Chain Management (SCM) in general, and transportation in particular, can be very complex. This involves the integration of information at various stages of the supply chain process and entails several modes of transport like road, rail, air and sea.

The role of technology has grown exponentially in the last decade. It has transitioned from a period when technology infrastructure was being developed to a period where the likes of Software-as-a-Service or cloud-based solutions have become a norm.

However, it is also true that a lot of BCOs and international logistics companies are still running their businesses on manual, archaic and other disparate systems.

We would like to understand how you are managing these turbulent markets, how integrated your systems are, and overall, we want to identify current logistic trends and best practices — could you help?

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Does ICC (A) clauses cover cargo claims for delays due to COVID-19..??

ICC (A) cargo claims COVID-19

As we have all seen, COVID-19 is causing severe imbalances in world trade which is affecting everyone, whether it is an exporter, importer, shipping line, shipowner, freight forwarder, trucker, or a spaza shop around the corner..

While ships are moving, ports are discharging and loading containers, nothing is as yet at a 100% capacity in most of the countries around the world..

Ships are facing port congestion resulting in blank sailings, containers are stuck in storage at ports, terminals, and depots around the world for later deliveries creating longer delays than anticipated and also causing yard space congestion..

In view of the delays experienced by the trade, we look at the question – Does ICC (A) cover cargo claims due to COVID-19 delays..??

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Don’t be caught out with an unseaworthy container – follow this checklist and avoid cargo damage

unseaworthy container

There are several reasons that cargo inside a container could damaged. It could be due to improper packing of cargo inside a container, incorrect container used for the cargo carried, but one of the main reasons for cargo damage inside a container is the condition of the container itself.

  • Wet damage due water ingress (rain, seawater etc) into the container ;
  • Wet damage due to condensation inside the container when an incorrect type of container is used like using a normal container instead of a ventilated container ;
  • Contamination due to adjacency risk or odor transfer ;
  • Infestation damage

are some of the common types of damages reported on cargoes that are packed in containers.

As a general rule, shipping lines reject these claims confirming that the gate out documents of the containers were clean at the time of release to the shipper. Insurance companies use Unseaworthiness and Unfitness Exclusion Clause stated in ICC (A) not to cover similar claims either, unless the insured can prove that he was not aware of the condition of the container at the time of loading.

Obviously, this situation causes a lot of frustration, feelings of injustice, and could result in absorbed losses among shippers globally.

So should the shipper simply accept this rejection of claims and move on?

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IMO, ITF and ILO driven intervention helps save seafarer’s life

shipping and freight news - shipping and freight resource

The COVID-19 pandemic has put seafarers around the world in precarious situations. Travel restrictions mean some cannot leave their ships, be repatriated home, or even get urgent medical assistance. Other seafarers have seen their contracts unilaterally terminated or have been quarantined on board ships for more than 14 days, without getting paid.

A large number of seafarers, as well as their spouses and family members, have reached out to IMO to share their concerns about a variety of difficult situations caused by the COVID-19 pandemic.

IMO has established an internal team to help resolve individual cases, often working alongside other organizations like the International Labour Organization (ILO), the International Transport Workers’ Federation (ITF) and the International Chamber of Shipping (ICS).

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FAK it.. A deep dive into FAK rates and how it works..

FAK Cargo - Rates - Shipping and Freight Resource

The process of global trade is simple to look at, especially if you look at it from the outside..

  • There is a buyer who needs a product ;
  • There is a seller who sells this product ;
  • They discuss and agree on a price ;
  • The buyer pays the agreed price ;
  • The seller arranges for the product to be transported to the buyer

End of trade..

Simple, right..?? Many would wish it was so..

While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..

One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..

Let us take a deep dive into FAK rates and how it works..

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Protocols for safe crew change and travel during COVID-19 released

shipping and freight news - shipping and freight resource

We have read many articles, extolling the virtues of Seafarers who are considered the backbone of the shipping industry and how they are important to the industry etc etc.

However, due to the ongoing COVID-19 restrictions, these Seafarers are facing significant challenges with extended service on board, unable to go ashore for a bit of fresh air after many months at sea, unable to be relieved of their duties and go home to be with their loved ones etc.

This is despite international maritime compliance regulations which require Seafarers to be changed on a regular basis from ships they work in to ensure safety, crew health, welfare, and the prevention of fatigue.

There have been calls from many quarters for appropriate action to be taken to address these issues faced by Seafarers.

It seems that these calls may have been heard.

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