Insuring Cargo on You Tube

An Appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers

Followers

Search This Blog

Loading...

Monday, January 2, 2012

Know Your Cargo -2 (Aluminium Ingots)



There are usually no problems at all with Ingots if loaded with proper dunnage.

 These are semi-finished and shipped as break-bulk as strapped bundles.


First, being semi-finished, any water damage and resultant quality problem can be overcome while processing (being semi-finished, further processing is assumed). In fact these ingots are stored in the open in port terminals and loading continues during rain.

If ingots are made to order i.e. a specific size and for a specific purpose as per receivers specifications, then a little caution may be required to avoid damage due to forklifts etc. Such ingots will have to fit the machines of the receivers.


Lashing is most important factor for aluminium ingot cargo and requires regular checks. There are always some bands broken during loading /discharging. Usually aluminium ingots are strapped in small bundles and then strapped about 1 mt or 2 mtrs with stronger strap for loading. In case
loading / discharging straps break cargo is discharged piece by piece or in smaller bundles. One rare occasions  there could be a claim for re-bundling charges.

Oxidation: Can be removed since it is not as severe as rust removal. If there is serious wetting by sea water, some receivers may probably reject them as they could damage the furnace in their factories.

Tallying: The ship may not have sufficient time to count the pieces per bundle or weigh them and you may have a situation where some pieces from each bundle may be missing (due often to short-shipment). The Bs/L are often Claused as “weight and quantity unknown.”

Reconditioning of ingots due to bursting, scratching and gouging, chipping of alluminium billet might involve some charges (roughly US$ 4000 for say for 40 odd bundles towards cost of reconditioning involving labour, fork lift trucks, electric grinder, polishing grinder etc). Again such claims are very rare indeed.


Metal prices fluctuate a lot. During peak LME prices, theft or Hijacking of vehicle cannot be completely ruled out but again have not heard of such instances as far Aluminium Ingots are concerned.


Generally speaking Ingots are not claims prone.Readers with experience in this cargo are welcome to share their views.

0 comments:

Post a Comment

Blog Archive

About the Author

My Photo
Bangalore, India
Starting his career in 1981, he has been a part of senior management of multinational insurance companies in India. He has worked in international markets including 5 years in Hong Kong. He has visited a number of countries (often as a guest speaker) - United Kingdom, Germany, Italy, France, China, Taiwan, Vietnam, Hong Kong, Singapore, Malaysia, Thailand, Philippines, Indonesia, Nigeria,Zambia and Dubai. He has been a contributor to international journals including Lloyd’s List of UK. Vish is the author of Insuring Cargoes-A practical guide to its law and practice [2010] published by the prestigious Witherbys of UK. Vish has his own consultancy firm engaged in running insurance programmes of corporates. Besides marine cargo and hull & machinery, he is also well versed in other classes of business including Business Interruption. Another area of his involvement is technical training- Vish conducts high quality technical training for brokers, underwriters and claims adjusters in various parts of the world. Recently Vish was appointed as the Indian Market Consultant for Dolphin Maritime& Aviation Services