Over the last couple of years in the ocean freight logistics space, marine insurance has been increasingly front of mind for shippers and supply chain managers. Geopolitical shifts, like the Red Sea crisis, have turned major passages into high-risk areas. The majority of organisations have re-routed to avoid these areas. However, they’re still facing increased premiums due to risks associated with longer voyages and delays.Â
As logistics specialists, we consider your insurance coverage as part of an analysis of your entire supply chain performance. Keep reading to learn more about important insurance considerations and the role they play in our logistics process.
Leveraging relationships with major shipping lines
In order to offer informed supply chain consulting, we keep our thumb on the pulse of the factors that may impact your premiums. We’re long-term members of alliance networks like WCAworld, meaning we’re up to date with the latest rates. Major considerations include:
- Geopolitical changes
- Value and condition of cargo
- Shipping route
- Past claims Â
This timely knowledge provides us with a comprehensive understanding of your insurance costs. It also informs the process of our Business Intelligence Hub when approaching areas like pricing analysis, or recommendations for business tools to implement into your supply chain.Â
Factors to consider when evaluating your marine insurance
Our Business Intelligence Hub allows your supply chain to be optimised by a team of experienced consultants, pricing analysts and brokers. This means that our analyses are deeply considerate of costs and workflow efficiency. We may identify gaps or expenses in your insurance, which you can then discuss with your insurer and source recommendations on improvements.Â
When evaluating your organisation’s coverage, the following considerations may play an important role in discussions with your insurer:
Coverage gaps
Under-exposed shipments and uncertainty about liability can put your organisation at risk for significant losses. It’s important to identify gaps in coverage across your contract of sale, risk liability and terms of trade. This includes securing protection against risks that may arise once your cargo arrives at its destination, including issues with:Â
- Manufacturing
- Payment
- Cargo weight
- Cargo handling
- Delays
Chain of responsibility (COR)
If you’re importing to Australia, it’s essential that you understand any CoR issues. You may be held liable for breaching safety regulations during packing and weight declarations. Many shippers find it worthwhile to conduct an in-depth analysis of where they’re responsible as the consignee. This helps your organisation make informed decisions about which risks you need to safeguard against.Â
Securing protection in case of loss and damages
Based on discussions with your insurer, you may find that your terms of trade need to be renegotiated to align with your insurance needs. Our logistics experts will help you navigate the waters of renegotiation – liaising with third parties and keeping you informed every step of the way. As part of our analysis of your terms of trade, we may provide insight on global shipping issues that put your cargo at greater risk for loss and damages.Â
The types of coverage you may then decide to discuss with your insurer include:
- Cargo insurance
- War risk insurance
- Liability insurance
- Loss of hire insuranceÂ
Supply chain optimisation starts with Stockwells
Connect with an industry-leading Business Intelligence Hub that analyses your supply chain from every angle. Whether you’re seeking contract negotiations, pricing analyses or improved efficiency, Stockwells has you covered.Â
Amplify your ocean freight approach with our tailored supply chain consulting and logistics. Reach out to us today for a quote – we’ll get back to you soon.