INSURANCE TIPS | eNEWSLETTER FEB 2007

 
 
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Refrigerated Cargoes

Cargoes are shipped in refrigerated containers because they are generally perishable. Such cargoes include frozen food, chilled goods such as fresh fruits and vegetables. In handling such goods, one must keep in mind that chilled goods are likely to suffer damage arising from over coolness (too low temperature) while frozen goods may not necessary be so when temperature is lower than required. A shipment of young potted plants was a complete total loss when it arrived frozen instead of simply chilled, is a case encountered by the group in recent years.

The safe arrival of goods therefore depends on maintaining the correct temperature and suitable storage condition throughout the voyage, door to door in most cases. Sometimes it is necessary to know the nature of the goods in relation to the duration of the journey to determine how perishable the goods would hold during the journey.

The party that knows the suitable temperature and storage condition for transit is the shipper. Most shipment instructions would come from the shippers and in handling such goods, the carrier should seek adequate information if in doubt (that is not to act with ignorance as the consequence could be a major loss). Never to rely on past acceptance as guide to future shipments as different cargoes will dictate different requirements in their storage and temperature control. Know the origins and types of goods for further understanding. For example, in handling fruits it may be necessary to know the state of maturity, their growing seasons and origins. All such information should be gathered to form the correct stowage and refrigeration control for the container.

Handling mixed cargoes requires special care. As with hazardous goods, it is pertinent to check the compatibility of temperatures for the mixed cargoes. Note the compatibility of atmosphere as well and beware of any cargo with tendency to taint. Determine the acceptable “breakdown” time ie the duration in which there is a loss of refrigeration before the condition of cargoes deteriorates leading to a claim against the carrier. Know the humidity requirement of the cargoes.Where there is more than one carrier (as in the through transit) all carriers in the transport chain must be aware of the requirements pertaining to the refrigerated container. While it is necessary to know the required specification for proper carriage, it is similarly important to exercise prudence when faced with over-specification from the shipper. Such situation may lead to added responsibility and spurious claims, which should be avoided.

Note: No professional advice is intended as the above is simply a general outline of the topic. We hope to carry specific points on this topic in future issues.

Disclaimer: Individual practice of insurers differs. No professional advice is intended in this note.