Although it’s still an exception for a shipment to suffer damages during transport, the consequences can be big. Paul Amoureus of Centraal Beheer provides an overview of the transport insurances. With over 25 years of experience, he has many examples, and he saw the changes in the insurance world from up close. “These days, cooling and packagings are better, of course, but fruit remains a vulnerable product.”
“My job is to give advice and to give clients insight into the risks of the logistical chain. I point out the risks to a company, and talk to the trader about how these are covered, and whether they are prepared to take that risk,” Paul says. “If a company has everything in good order, I say that as well. Insuring isn’t always the solution, after all. Also from our responsibility to look after our clients as an insurance company.”
Stuck onions
Whether an insurance is necessary for transport, depends on various factors. The most important reason is the value of the product. “Agricultural goods with a low value are exported regularly to West Africa, for instance. “Those aren’t always insured,” Paul says. “The transporter is insured for damages to the cargo, but that is up to a limited amount per kilo. For a low-grade product, that’s fine. For a more high-grade product, like fruit, a transport insurance would be much more suitable.”
Still, that doesn’t mean that an insurance for goods with a lower value is unnecessary, particularly in maritime transport. “If a ship with such a cargo leaves from the Netherlands, it often has shipments from multiple traders on board,” Paul explains. “It is possible that only a limited number of those are insured.” If the ship gets stuck, the difference between insured and uninsured cargo really becomes apparent. After the stranded ship is refloated and successfully towed to the nearest harbour, all parties that had cargo on board contribute to the costs for refloating. In professional terms, General Average.”Stranded cherries
Whether the fruit and veg sector is sufficiently aware of the risks or not? Paul thinks they are. “Most fruit and veg companies are very professional. High-grade products, such as fruit from South Africa, are always insured.” One container of fruit can quickly represent some tens of thousands of Euro in value. “So if you have a number of containers on a ship then, you’ll quickly have a lot of value underway.” Centraal Beheer insures all forms of transport. By far the biggest are road and sea transport.
There is often possibly a residual value of a shipment that suffers damage. Moving fast is important in that case. “Instead of writing off an entire shipment, there are often possibilities within the region as well. A stranded road transport with Turkish cherries and on its way to the Netherlands was sold in Austria. That way, the trader was able to secure 50 to 75 percent of the value.”
More information:
Centraal Beheer
Paul Amoureus