Marine Cargo Insurance - OceanHub Shipping Pte Ltd

Marine Insurance coverage

We recommend our customers to insure their goods and be prepared against unforeseen situations that can happen at anywhere during the transit. This can be done at a small fraction against the value of the goods.

Definition of General Average

It is a principle of maritime law that requires ship and cargo owners to also share proportionately the costs associated with the rescue of cargo and ship after a major accident. The captain / owner of the ship will declare General Average when cargo, equipment or funds must be voluntarily sacrificed to save the ship from peril in the event of an emergency.

Situations that can result in General Average

Ship running aground
Hull and engine damage – caused by efforts to refloat a vessel
Fire onboard the ship
Mechanical engine failure
Shifting of containers – due to heavy storm
Discharge and reloading – of cargo at a port of refuge

How can you be prepared?

Cargo insurance not only protects the loss of (or damage to) cargo during sea transport. In the event of General Average, the cargo insurance company takes over and represents you on behalf of the cargo owner towards the average commissioner. Insurance protects your cargo for unforeseen events during the voyage that are beyond your control, such as General Average.

With cargo insurance	Without cargo insurance
Institute Cargo Clauses fully cover all General Average expenses	All expenses on the cargo owner
No need to worry about bureaucracy or documentation	Unless you provide a cash deposit or a bank guarantee, your cargo will not be released
You continue your business with total peace of mind	You have the obligation to provide all documentation to the General Average adjuster

Suez Canal incident and General Average

How did the General Average declaration affect the cargo owners having containers on the EVER GIVEN – especially when they did not have a cargo insurance?

The Suez Canal reopened and whilst the world trade route restored to normal, those who have cargo interests on board received a “General Average Declaration” letter from the shipping company. An Average Adjuster was appointed to calculate the cost of general average. The related General Average security to be paid before containers can be released from the ship. Shippers without appropriate insurance cover will need to pay the required cash bond from their own account.