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On November 30, 2020, the ONE APUS container ship encountered severe weather conditions while in route to California. As a result, at least 1,816 containers were lost overboard in one of the largest container losses on record and several more were damaged due to a significant stack collapse.
The World Shipping Council reports that every year an average of 1,382 shipping containers are lost at sea. While JAS and other service providers do everything possible to mitigate risk the situation with ONE APUS is just one of many events highlighting the unpredictable, and uncontrollable, disasters that can damage or destroy cargo while in transit. In these circumstances, cargo insurance can help protect against financial losses. JAS can provide insurance policies for both international and domestic shipments. Our experts can help guide you in finding the best protection fit for you and your needs.
Many shippers believe that the carriers' will cover any losses incurred. While in some cases this is a possibility, it is easier said than done. To recover the loss, you must prove the cause of the loss and that the carrier directly caused the loss. Losses caused by acts of nature frequently have no legal recourse against the carrier. Even when the carrier is proven liable, the maximum recoverable amount is limited to a fraction of the value of the freight. It rarely covers the cargo's full replacement value, or any damages incurred from losses in productivity.
Considering the number of containers displaced/lost, experts are of the view that this incident on the ONE Apus could be the worst ever containership disaster with potential loss and costs running into hundreds of millions." Shipping and Freight Resource, Dec.5 2020
Beyond a carrier's liability limits, vessel owners can hold shippers liable for losses incurred to goods transported by claiming General Average. This is a maritime law principle whereby all stakeholders in a sea venture (shippers/consignees and shipowner) proportionally share losses resulting from a voluntary sacrifice incurred to save the vessel and cargo otherwise at risk. Suppose General Average is declared, and your cargo is neither damaged nor lost. In such cases, the marine insurer will cover the contributions you are due to pay before your cargo is released to make the onward journey, but this may be subject to an applicable deductible. Uninsured cargo owners must put up a cash bond before their cargo is released.
Through JAS, you can ship your cargo globally with a cost-effective Shipper's Interest insurance coverage, and in most cases, with zero deductible. In the event of a claim, JAS will administer the claim on your behalf, making reimbursement easy and headache-free. We produce the necessary paperwork, present the claim to insurers for efficient processing, organize and coordinate inspection surveys, and take any other steps required for the particular claim at hand. You need not be concerned with a General Average contribution because JAS's Shippers' Interest insurance also protects you and covers this extra cost without delay. JAS can therefore ensure that undamaged cargo is released to you as soon as possible.
JAS Worldwide, together with their business partner Global Airlift Solutions, has managed another successful and urgent charter operation from the USA to China carrying important medical and Coronavirus outbreak relief goods.
The Boing 747-400 departed on Saturday Feb 21 2020 from the Chicago O' Hare International Airport and arrived at the Shanghai Pudong International Airport on Sunday Feb 23rd at 16:51 local time. The plane carried 100 tons of freight, of which 50% were relief goods such as facial masks and disinfectants.
“JAS is proud to be a able to provide a quick and reliable solution for our customers that want to support their employees and business partners during a difficult time”, said Senior Director for Air Freight for JAS USA,
Dirk Ravensteiner. Capacity is extremely tight and flight cancellations after the outbreak of the Coronavirus have reduced available cargo capacity from and to China by more than 40%. Making shipping solutions more complicated.
JAS Worldwide is now also offering unique Sea/Air solutions to/from China. JAS Worldwide hopes to ensure that this is a suitable and alternative solution for shipments to cities in the Northern & Central part of China like Qingdao, Beijing, Tianjin & Dalian, Shanghai and Ningbo.
For more details about our charter services & Sea/Air solutions, please contact your local JAS Worldwide representative.