As technological advances and global developments change the maritime industry, cargo and freight insurance brokers might want to reevaluate their insurer relationships. Maritime risks have moved beyond the peril of rough seas and insuring against hazards is increasingly complex. Changes that are impacting risk management in the maritime insurance industry include the following.
Although technology has made the maritime industry more efficient, it has also increased the threat of cyber attacks. Electronic transmissions automatically tracking cargo are at risk of interception. Sophisticated hackers possessing the wherewithal to breach vessel propulsion and navigating systems can interrupt vessel operation causing delay and damage to cargo. Cargo & freight insurance brokers should keep the following case study in mind to exercise caution.
Last December marked the arrival of the biggest container ship ever to a U.S. port. Most ports do not yet have the infrastructure, terminal space, dock equipment and rail connections to handle these new megaships. As international trade expands putting more cargo on bigger ships, there is a greater possibility for maritime risks such as catastrophic loss from an accident in port or at sea.
Widely occurring political unrest threatens ocean travel and creates more maritime risks. Pirates off the coast of Africa and criminal gangs operating in South East Asia attack ships for ransom or for cargo. In 2015, a Libyan warplane bomb killed two crew members when it hit a Greek oil tanker berthed at a Libyan port.
Now that Arctic trade routes are available, shipping companies are evaluating them as a way to save time and money. However, a lack of infrastructure and emergency services makes responding to a casualty difficult.
Finding and retaining well-trained and competent crews is challenging when new and changing technologies demand specialized training.
To service the needs of a growing international trading community, there are many new entrants to the marine insurance market. This increased competition is keeping insurance costs reasonable for shippers and cargo & freight insurance brokers. However, it also dilutes the available talent as there is a greater need for experienced underwriters. The best protection for your cargo is working with a reputable company with expertise in compliance, underwriting and risk management.
LOGISTIQ Insurance Solutions, a GSIS, Inc. company, provides cargo insurance products and services, as well as general risk management consultation, for freight companies across the world. The company has a diverse array of insurance products, including those encompassed by its unique Broker Shield program. LOGISTIQ is devoted to building long-lasting relationships with clients, and provides exemplary service and prompt quotes. More information about LOGISTIQ. can be found on the company’s website, located at http:// logistiqins.com.