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Recently, maritime accidents have occurred frequently, so please pay attention to this when shipping!

2020-12-17

My locker didn’t fall into the sea, so you want me to lose money?

November 30

ONE, a large container ship “ONE APUS”, encountered severe weather about 1600 nautical miles northwest of Hawaii. The ship experienced severe turbulence. About 1816 containers were damaged or lost, including 64 dangerous goods containers (54 firecrackers). Cabinet, 8 battery cabinets, 2 alcohol solution cabinets).

The ship departed from Yantian, Shenzhen on November 19, and had called Singapore, Laem Chaban, Thailand, Gaimei, Hong Kong, China, and sailed to Long Beach, USA, full of cargo from China and Southeast Asia. This voyage is likely to be loaded with Chinese “Christmas cargo” heading to the Port of Long Beach in the United States. According to the current sailing plan of the ship, it will not be possible for the ship to reach the United States years ago.

ONE has established a special website for this accident so that everyone can keep up with the latest situation.

Friends in need please pay attention:

https://www.one-apus-container-incident.com

December 2

The ultra-large container ship “MUNICH MAERSK” under Maersk lost about 200 containers about 90 nautical miles north of Schiermonnikoog Island in the North Sea. Initially, Dutch fishermen discovered the container that had fallen into the water, which was confirmed by Dutch officials shortly after.

MUNICH MAERSK called Ningbo on October 26, and Shanghai on October 30. The main destination ports are the basic ports of Rotterdam, Bremerhaven, the Baltic region, Gothenburg, Sweden, and Aarhus, Denmark.

December 14

The Chinese cargo ship “Xinqisheng 69” was collided by the Antigua and Barbuda container ship “OCEANA” with its main engine malfunctioning in the north channel of the Yangtze Estuary, causing the “Xinqisheng 69” ship to enter the water and be in danger of sinking.

“Xinqisheng 69” is loaded with 650 containers. A total of 16 Chinese crew members on board are in danger. The foreign ship is currently in no danger.

Recently, maritime accidents have occurred frequently. For example, foreign traders who have goods on the ONE APUS number may have to bear general average even if their cabinets are intact. In other words: the goods are okay, and the owner will lose money!

Why?

For some foreign trade people who are not familiar with shipping terms, this is simply unreasonable. I didn’t push the cabinet into the sea. Why should I lose money?

Because there is something called “General Average” (General Average, referred to as G/A or G.A.). The so-called general average refers to the special sacrifices and special expenses paid by ships, cargo, and other property in the same sea voyage when they encounter common dangers. For common safety, deliberate and reasonable measures are taken. “Article 193).

General average is the loss caused by the common safety, so it should be shared by the beneficiaries, and should not be borne by the loss-affected party alone. General average is a special system in maritime law established based on special risks at sea. It is of great significance for avoiding ship and cargo losses caused by typhoons, tsunamis, stranding, rocking, collisions and other hazards.

Discussion on the ONE APUS falling water incident on the FOB Forum

General average adjustment is a long process, and it is necessary to ask the clearing bank for professional calculation.

The shipowner will declare the general average within a reasonable time of the first port that the ship arrives after the general average occurs, and notify the cargo owner and the ship’s insurer. If you encounter a similar accident unfortunately, if you have bought insurance, please report to the insurance company as soon as possible to listen to their professional opinions, and the insurance company will take over.

The shipowner and adjuster usually require the cargo party to provide a general average guarantee and sign an average agreement before taking delivery. Regarding the method of guarantee, for the goods that have been insured, the shipowner and the adjuster usually accept the letter of guarantee for average damage signed by the insurance company, while the goods that are not insured usually require the cargo to provide an average deposit to the adjuster (if the buyer and seller I don’t want to pay compensation or guarantee money, and the seller does not pick up the goods, then the goods will be auctioned to cover general average). In addition, the ship usually requires the cargo to provide relevant documents to prove the value of the cargo.

The cargo party should immediately confirm the condition of the cargo with the shipping company, retain the evidence in this respect, ask about the ship’s first destination, arrange the inspection in time, and also entrust the freight forwarder to assist in the transportation of the cargo to the designated port of destination at the first time, thereby reducing unnecessary loss.

The insurance company or cargo inspection agent shall promptly provide the general average guarantee to the ship party without the facts and evidence that the general average cannot be established, and attach the cargo value list at the same time, so as to avoid the untimely or improper provision of the guarantee and the ship’s lien goods.

Under normal circumstances, in order to make the goods reach the consignee as soon as possible and reduce unnecessary detention, the cargo party provides the general average guarantee faster. After the adjustment is completed, the general average assessment shall be paid after the adjustment report is reviewed and approved.

What to do?

Not much to say, buy insurance!

In marine insurance, “all risks” is the easiest to insure, and its coverage is Ping An Insurance, WPA, and all or part of the loss of the insured goods due to external reasons during transportation. External reasons only refer to theft, failure to pick up the goods, fresh water rain, short quantity, mixing, contamination, leakage, bumps, odors, moisture and heat, hook damage, packaging cracks, rust damage.

It should be noted that strike insurance and war risk are not included in all risks, so if it is shipped to war-torn areas or countries that love strikes (such as India, South America), you can purchase additional insurance.

Export cargo insurance premium = CIF price × 110% × insurance premium rate. The rate of all risks in international shipping is generally 8 to 3 per thousand. For most shippers, it may be several hundred yuan. Don’t take big risks to save this little money.

So who will pay for the insurance? It depends on which trade term you use.

There is a simple and trouble-free table for everyone to collect:

Here is an explanation of the more commonly used CIF terms:

CIF

Cost, Insurance and Freight, cost plus insurance plus freight

Analysis: The seller handles freight insurance for the buyer and pays the insurance premium. If the buyer and seller do not agree on the specific insurance, the seller only needs to obtain the minimum insurance coverage. If the buyer requires war insurance, the insurance premium shall be borne by the buyer Under the prerequisite, the seller shall provide additional insurance. When the seller applies the insurance, if it can do so, it must be insured in the contract currency.

CIF is one of the commonly used trade terms. If you do CIF, but do not buy insurance with a fluke, then you can only admit it if something happens, you have to pay general average, and you may also face customer claims. why? You should buy insurance, you are greedy for small and cheap, who do you think?

There is another situation to be aware of. Some customers are very slippery, and they are clearly talking about FOB, but they want you to make CIF and ask you to find a freight forwarder to deliver them to their port, but the customer only pays the freight, and no insurance premium. . At this point, if you feel that the FOB price is being discussed anyway, insurance has nothing to do with you, and you do not buy insurance, then if something really happens, you will still be counted. Can you see it? This is the risk that the guests are passing on! If the customer requests this, then you have to ask him for freight + insurance.

CIP

Carriage and Insurance Paid to, freight and insurance paid to

The seller delivers the goods to its designated carrier. During the period, the seller must pay the freight for transporting the goods to the destination, and provide insurance against the buyer’s goods loss or damage during transportation. That is, the buyer bears all risks and additional costs after the seller delivers.

FOB

Under FOB (Free On Board) or CFR (Cost and Freight, cost + freight) terms, it should be specified to be covered by the Buyers (To be covered by the Buyers), and the seller will inform the buyer as soon as possible after arranging delivery For shipping information, it is up to the buyer to decide whether to purchase insurance to avoid possible subsequent wrangling.

A foreign trader once shared with us his customer’s sorrow operation: the price is based on FOB, but he will pay the seller together with the ocean freight and the payment, so that all the documents show CIF. The seller agreed that there was no loss. After a few votes, it now seems to be resolutely rejected. Indeed, this kind of operation must be rejected, otherwise the risk belongs to the seller.

And if you do FOB, but the balance is not paid, even if the buyer buys insurance, he will probably be arguing with the seller and ask the seller to bear the loss together.

Please remember that only by buying insurance can you sail the 10,000-year ship!

As the New Year’s Eve is approaching, I hope that there will be no wind and waves in the future, and the New Year will be safe and sound!

 


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