INSURANCE TIPS | eNEWSLETTER AUGUST 2008

 
 
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Minimizing Claims: Some Basic Observation on Cargo Marking

In the carriage of cargoes, shipping marks and numbers provide for the correct identification of cargoes irrespective of the various modes of conveyance. Proper method of placing cargo marking should take into consideration the minimizing of loss due to theft or pilferage. Cargo handlers such as CFS operator, haulage operator should pay attention to cargo marking not just for identification and correct delivery, but also for providing additional attention in the event that the marking has exposed the nature or type of cargo and its attraction to theft or pilferage.

Marking should be on the outside of packing and to remain legible for the whole transit. Marking should be sufficient to provide for identification and port name. In general, abbreviation of the consignee is provided. A full name of the consignee may expose the nature of the goods especially if the consignee and its business are well known. Other details that could be indicated in the cargo marks are:

•  the consignee's order reference number

•  package number

•  place of delivery, and

•  port of destination

With proper marking, the risk of mis-delivery would be much lower.

Marking is usually shown in various documents such as bill of lading, cargo insurance certificate/policy, customs documents and cargo collection/delivery note. Obviously the marking must be the same for all documents to ensure a proper delivery. If variation is detected investigation should be carried out to ensure correct cargo was shipped or proper delivery is conducted. The importance of marking can be seen when there are various consignments of the same number and description of packages e.g. two consignments each of 80 cartons originating from same port of loading but intended for different destinations having the same transshipment port. The party handling the transshipment would have to exercise utmost care in order not to cross the two shipments.

Marks should appear on the side and top faces of the package. It should be sufficiently large with clear letterings. Dimensions of package could be included for certain goods, so do gross and net weights. Marking should never be used as an advertising tool. This would likely encourage pilferage.

In anticipating of language barrier, international marking symbol code should be used – this would cut across such barrier and provide for understanding on how to handle the cargo.

In summary, the points to note:

•  Over-descriptive marks may expose the type/nature of cargo and increase the risks of pilferage or theft.

•  Inadequate or improper marks on the other hand increase the risk of mis-delivery.

•  Improper marking may be indication of repacking has occurred.

Disclaimer – No professional advice is intended in this note.