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As marine cargo insurers fret about massive claims they could face from an ULCV casualty, rather than spreading the risk across smaller ships, their exposure may not be quite as much as they fear.
According to this LinkedIn blog by Steve Fodor, director at the US-based Association For Trade Compliance, 90% of US-bound cargo moves without any insurance coverage.
Mr Foder’s knowledge stems from 33 years working in international trade, and he cites three of the most common reasons (or excuses) given by shippers who regularly do not insure their cargo.
The third reason is, unfortunately, all too common in the experience of The Loadstar: “Nothing bad has ever happened to any of my shipments”.
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Alex Lennane
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