Project cargo volumes in Africa are experiencing a significant surge, but this growth brings its own set of challenges, particularly in the realm of insurance.
According to Susan Duvenage, divisional director marine at Prestgroup, there are many complexities involved in insuring high-value project cargo shipments amid increasing risks.
“Shipment values could easily exceed nine-digit numbers and the insurers do not always have an appetite for such exposures, especially at storage facilities where they face the risk of strikes, riots, fire and flood,” she told Freight News.
Increasingly, consignments with exceptionally high values are being shipped, ranging from solar installation plants to mining equipment.
“Cargo is usually sourced from suppliers worldwide, but shipping lines are avoiding territorial waters and airspace in and around war zones at present.
"This results in additional transhipment ports, delays, and damages due to the extra handling,” Duvenage explained.
“In certain instances, the cargo is not delivered in the desired sequence, resulting in demurrage and storage costs while awaiting the arrival of cargo that must be installed at the project site first.”
- Read the rest of this article in our Freight Features article on "Project Cargo."
