Loss prevention doesn’t just happen.
You’ve got to make it happen and the key word is “YOU”
But
you can’t do it alone. You need others to make it happen and the key word is “OTHERS”.
You
and others or in more general term people. Cargo loss prevention is a people’s
effort primarily. People working together to accomplish the successful movement
of cargo from point of origin to point of destination
Mechanical
methods probably will be required to load, move or unload cargo but people will
run the machines. Accompanying documentation probably will be required in each
case to legalize the movement for proper identification of who gets what and
for secure payment of all charges. Again people will control all aspects of
documentation. Protection of cargo throughout its move, during its transit
storage and in any transhipment activities may range from an ultrasonic alarm
system to an ultra-simple canvas cover. Again people will be responsible for exercising
such protections
So
we hope we have driven home the point right from the start that people are the
most important ingredient in cargo loss prevention. In similar line of thought
a person’s knowledge of cargo loss prevention just don’t happen either. It has
to be learned, and then taught to others.
Scope.
·
It can be used for knowledge of stevedores and
other people interested in cargo.
·
Useful in containerisation field.
·
Bulk carrier can use the ideas or steps to
prevent or minimize loss.
·
Relevant knowledge of the industries through
case studies for students.
·
To know how to prevent loss of different types
of cargo by using different methods.
·
It can help us in decision making and giving
advice to the company
Skuld Shortage Claim (case study)
Facts:
A cargo of bagged rice was being transported from Ko
Sichang, Thailand to Abidjan, Ivory Coast
A shortage of 8,922 bags was recorded on completion of
discharge.
In addition to shortage, several bags along the hold sides
were found to be mouldy on discharge, despite being protected from any direct
contact with the steelwork. The mould was found to be due to condensation
No pre-loading survey was conducted and thus it was
difficult for Owners to prove precisely what was loaded onto the vessel and the
condition of the cargo loaded
The lack of a pre-loading survey made it hard for Owners to
defend the shortage claim and prove the damage to the cargo was not as a result
of their own negligence. A recourse claim against charterers also proved to be
more difficult According to the local customs rules in Abidjan all
discrepancies noted between the cargo noted on the B/L and the cargo discharged
is subject to an automatic fine of USD 2 per missing bag for rice cargoes
The local agent, under local law, is held to be the legal
representative of the Owners, even if appointed by charterers The local agent responsible for payment of the fine to the
customs department demanded a guarantee for payment in the form of a LOU before
allowing the vessel to leave
Claim
amount = USD 437,500
Shortage = 8062 short landed bags
Cargo loss = 64 mouldy bags and 1480 bags torn during
handling
Lessons
learnt:
Always conduct an independent pre-loading survey which
includes an independent tally of cargo loaded.
Moisture tests on the cargo must be conducted to ensure they
are within the moisture content limits noted on the cargo quality certificate
Pre-loading inspection/ continuous tally should be conducted
on board to ensure that only sound bags are loaded onto the vessel
Visual quality inspection of the cargo can help to eliminate
the loading of all damaged, cut/ torn and heavily stained bags
Contact the club immediately
Place Charterers on notice of the claim as soon as possible
Future.
The
state of Goa has an extremely favourable geographical location that offers a
natural gateway into Indian Subcontinent. Promoting it as a logistics hub can
act as a critical enabler to its economic growth.
Cargo
loss prevention is a necessity in today’s growing business world.. As far as
trading is taking place, Cargo loss prevention is a must procedure because, a
manufacturing unit produces in a large quantity and to keep the material in a safe
and sound condition cargo loss prevention is necessary. Cargo loss prevention
plays an important role for seasonal products especially in agro products which
are produced only for a certain period of time but has to be constantly
supplied to consumers.
Secondly,
Goa is one of the smallest states in India. The land available is very scarce.
The available land is also expensive. Being an industry, no benefits have been
implemented by the government. The proprietors are on their own while entering
in this sector.
Capt.
Lincon Wiegas of Richards and Ericson’s states that cargo loss prevention plays
a very important role in shipping industry and as such it provides regular
source of income to people involved in this business.
FINDINGS AND CONCLUSIONS
From
our study, ‘Cargo loss prevention’’, we come to the conclusion that cargo loss
prevention is an important aspect to trade. It provide protection to the goods between
production and consumption. There is a need for cargo loss prevention of the
goods so as to make them available to buyers as and when required in an intact
conditions.
The
growth of the Indian Cargo loss prevention sector is primarily driven by the
industrial growth of the country. While the Indian economy is predominantly
driven by the service-based industry, manufacturing also acts as a key growth
driver for economic activity. Both services and manufacturing have thus far
been the key demand generators for Cargo loss prevention in India.
.With
the improvements in infrastructure and manufacturing bases in various sectors
such as pharmaceuticals and computer hardware, Goa could grow into a more
competitive trading state.
From
our study of theory of cargo loss prevention and practical visits to the
agencies following this we found that there was complete synergy between theory
and practice. We also understood that there is no option to cargo loss
prevention and has to be religiously implemented.
We
can therefore conclude that cargo loss prevention is one of the most important
links in the world of Marine Insurance. With the increasing demand of
commodities, cargo loss prevention in Goa and India is gaining the much needed
importance.
