- Transporting rare and high-value cargo requires specialized security measures and adherence to specific guidelines to minimize risks.
- Club rules (19.17.8.5) outline prohibited recovery for loss of rare and valuable cargo unless prior approval is obtained.
- Ad-Valorem Bills of Lading can affect liability limitations, necessitating careful consideration of carrier documents.
Transporting rare, valuable, and high-value cargo demands more than just standard shipping procedures; it requires a heightened level of vigilance and specialized strategies to ensure the safe delivery of these valuable goods, reports Britannia.
Club Rules for Rare and Valuable Cargo
The Club’s cargo rule (19.17.8.5) addresses the transport of rare and valuable cargo. This rule states that there will be no recovery for the loss of or damage to the following items, unless the contract of carriage and security arrangements have been pre-approved by the managers.
Items include:
- Specie (money in coins)
- Bullion (gold/silver in bulk)
- Precious metals or stones
- Jewellery, bank notes, bonds, etc.
Ensuring Security Measures
The types of cargo listed in the rule are a tempting target for theft and are likely to have a substantial value. Therefore, robust security measures need to be in place during the contract of carriage.
To manage risks:
- Inform the Club about the intention to carry rare cargo for guidance.
Key Precautions for Carriage
Below are some prudent steps shipowners should typically consider when carrying rare and valuable cargo:
- Use port-to-port carriage documents to avoid road-leg risks.
- Avoid ad-valorem carriage documents.
- Stow containers securely below deck.
- Limit cargo stow time at ports.
- Ensure prompt container delivery after discharge.
- Use terminals with secure container storage.
- Verify terminal security.
- Consider hiring a security company.
- Keep cargo details confidential.
Confidentiality in Cargo Management
The carriage of any goods should generally be considered a private matter and it is good practice to remind all crew and employees to avoid discussion of rare and valuable cargoes being carried in public forums or with external parties.
When the carrier agrees to place a declared cargo value on a bill of lading, or other document of title… this is called an Ad Valorem document. If the carrier uses an Ad Valorem document, they may be deprived of the right to limit liability under the Hague, Hague-Visby, or similar provision.
Declaring Ad-Valorem to Club
Members need to declare an intention to issue an ad-valorem carriage document to the Club as soon as possible.
This allows for underwriter investigation and additional insurance for increased liability.
High-Value Cargo Considerations
Claims handlers often receive inquiries about the carriage of cargo which has a high value but does not appear to fall within the scope of the Club’s rare and valuable cargo rule.
Examples include cigarettes, pharmaceuticals, and vintage cars. P&I cover usually remains unless specified reporting requirements exist.
Handling High-Value Cargo: Stowage and Security
Stowage is crucial not only for security but also to prevent damage, especially when dealing with out-of-gauge cargo that cannot be transported in a standard container.
Careful handling instructions are necessary, such as for reefer container cargo, and warranty surveyors may be needed.
Deck Carriage Rule Compliance
In such cases, deck carriage may be necessary. However, members must comply with the Club’s deck carriage rule (19.17.8.9), which requires that the cargo be suitable for deck transport.
Transporting high-value cargo often involves tight timelines, such as for exhibitions or construction projects. Therefore, caution needs to be exercised at the time of booking to ensure that no guarantees are given as to transit or arrival times.
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Source: Britannia
