MSC Napoli compensation a long way off - Alexander Forbes provides some info

IN CASES like the MSC Napoli, where the vessel has been successfully beached and the future of the cargo remains uncertain, underwriters are unable to compensate clients until all damages have been established and their values calculated, says Angela Gauntlett of Alexander Forbes Marine Division.
Since the MSC Napoli has been declared a salvaging operation rather than a total loss, all cargo owners will need to share in the costs of the salvage operation in proportion to the value of the cargo they have on board. As such, each cargo owner is obliged to lodge a cash deposit equal to 60% of the value of their cargo.
These deposits will contribute towards the expenses of the salvage operation.
At this point, the only comfort Underwriters can offer their clients who have purchased insurance is the cost of the salvage operation.
“Clients insured through Alexander Forbes Marine Division have cover for the salvage security under their marine insurance contracts. These clients will not have to lodge a cash deposit with the salvors, as this is covered by their marine insurance.
“In the event that cargos are uninsured, the owners will have to provide a cash deposit equal to 60% of the value of their cargo before any salvaged goods are released to them. If owners cannot lodge their cash deposits, a lien will be placed on their cargo and sold to defray expenses,” says Gauntlett.
Salvaged cargoes are currently being surveyed ashore to determine their condition.
“If containers appear damaged or affected by the incident, marine surveyors will open them to determine the condition of the cargo inside. Undamaged containers will be set aside until a decision is made to forward them to final destination.
“As yet, neither the owners nor the charterers of the MSC Napoli have announced their intentions regarding onward carriage of the cargo or containers. This may, therefore, delay despatch of the goods to South Africa well beyond the completion of the salvage operation.
“In addition, a final assessment of the condition of the cargo can only be made by the recipients of the goods after arrival in South Africa.”
Given the variables yet to be decided, underwriters are many months away from calculating the true losses associated with this incident, says Gauntlett.