Cargo insurance is a must for protecting your shipments

We’re seem to be hearing about container collapses and losses on vessels crossing the pacific ocean during rough weather and delays popping up due to container shipments hitting huge spots of congestion. The World Shipping Council estimates that every year more than 1,300 containers are lost at sea, making 2020 a likely-record-setting year for container collapses and losses. Just the ONE Apus collapse by itself in December had more than 1900 containers lost in a storm that hit while the ship was en route to Los Angeles forcing it to turn back to Kobe, Japan. 

The Maersk Eindhoven will also make an emergency stop at Yokohama, Japan as 260 containers were lost at sea and 60 more were damaged when the engines stalled during a severe ocean storm that struck while the ship tried to recover last week. This is the fourth massive cargo loss on an oceangoing vessel in the last six months in the transpacific trade lane between Asia and California.

After a year of logistics news that was both dramatic in scope and impact, the freight market has been left in disarray. This year’s winter weather is interrupting shipping across the US in an odd way, enforcing the idea of the current shipping environment’s volatility. While shipper requests for capacity (OTVI) fell over 6%, the request rejection rate (OTRI) increased to a near-peak point this February. This was brought on by not only the nor-easter hitting the NE, but the storms covering the South, where such occurrences are outside of the norm. The volume of capacity dropped drastically because it just wasn’t there. Now as companies rush to replenish inventory and stock, the freight market fights to find some semblance of stability.

If you’re looking for ways to mitigate potential losses and issues that stem from container collapses and ocean vessel trouble and winter delays, your Nelson representative is ready to take a look at your logistics plan and work to help you fill in the gaps in service. Don’t let your cargo become a casualty. Contact your Nelson International representative today!