The seas are a busy place. Approximately 90 percent of the world’s trade takes place over the open waters, with includes activity from the top three exporters: China, the United States and South Korea. Certain well-trafficked areas, such as the Singapore Strait have attracted the attention of pirates looking to make a quick catch. They’re not so much after the ships themselves, which can cost up to $200 million to outfit, and they’re wiser for it. They know that stealing a vessel would require complete submission by the crew and somehow escaping the notice of authorities throughout a long voyage. Instead, they’re interested in quick plunders that they can perform without a big show, like hopping aboard momentarily to siphon off diesel fuel. Your contingent cargo coverage can be customized to protect your business against these types of unfortunate losses.
The newest bandits are organized and stealthy about their attacks. The U.S. Merchant Marine calculates that the estimated cost of global piracy may be as high as $8.3 billion annually. Is your contingent cargo coverage robust enough to financially make up for a big loss? Don’t try to pass these costs onto your clients – the high price may make them reconsider doing business with you. Instead, protect your company’s assets with a sturdy insurance policy.