TATA-AIG GENERAL INSURANCE COMPANY TATA-AIG NEWSLETTER EDITION- August 2013 IN THIS ISSUE News Updates Photo of the month – SHIP BUILDING Know your Cargo – HEAVY LIFTS Marine Loss Control – PROJECT CARGO WORLDS MOST DANGEROUS CARGO ---------------------------------------------- CONTACT US TATA-AIG GENERAL INSURANCE CO. MARINE LOSS CONTROL ENGINEERING [email protected][email protected]Government clears two million tonnes of wheat export to cut bulging stocks The Government has allowed two million tonnes of wheat export, which will help reduce bulging stocks in government warehouses. Food minister told that the cabinet took the decision to export two million tonnes. "We have kept the base price this year at $ 300 a tonnes compared to $280 a tonnes in the previous year. There is a good demand for Indian wheat globally. According to him the country was able to export 4.5million tonnes wheat in the 2012-13 season. "We were able to sell wheat easily in the international market earning $ 1.31 billion. China Shipping Container lines has ordered the world’s largest container ship. South Korea’s Hyundai Heavy Industries has won a $700 million deal to build the world’s largest container ship for China Shipping Container Lines. Under the deal signed with China’s No. 2 shipper, the world’s largest shipbuilder will build five vessels, each capable of carrying 18,400 TEU (20-foot equivalent unit) container boxes, Hyundai said in a statement. They will feature electronically controlled main engines that automatically adjust fuel consumption in line with sailing speed and sea conditions, helping to improve fuel efficiency, reduce noise and cut emissions. The ships will be the world’s largest, breaking the previous record of another South Korean firm, Daewoo Shipbuilding and Marine, which won an order in 2011 to build 20 18,000 TEU container ships for Denmark’s A.P. Moeller-Maersk. Delivery of the mega-vessels will begin in the latter half of 2014, Hyundai said. Each ship will boast a 400- meter-long deck, and stand 58.6 meters wide and 30.5 meters high.
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TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
TATA-AIG NEWSLETTER EDITION- August 2013
IN THIS ISSUE
News Updates
Photo of the month – SHIP BUILDING
Know your Cargo – HEAVY LIFTS
Marine Loss Control – PROJECT CARGO
WORLDS MOST DANGEROUS CARGO ----------------------------------------------
Government clears two million tonnes of wheat export to cut bulging stocks
The Government has allowed two million tonnes of wheat export, which will help reduce bulging stocks in government warehouses.
Food minister told that the cabinet took the decision to export two million tonnes. "We have kept the base price this year at $ 300 a tonnes compared to $280 a tonnes in the previous year. There is a good demand for Indian wheat globally.
According to him the country was able to export 4.5million tonnes wheat in the 2012-13 season. "We were able to sell wheat easily in the international market earning $ 1.31 billion.
China Shipping Container lines has ordered the world’s largest container ship.
South Korea’s Hyundai Heavy Industries has won a $700 million deal to build the world’s
largest container ship for China Shipping Container Lines.
Under the deal signed with China’s No. 2 shipper, the world’s largest shipbuilder will build
five vessels, each capable of carrying 18,400 TEU (20-foot equivalent unit) container boxes,
Hyundai said in a statement.
They will feature electronically controlled main engines that automatically adjust fuel
consumption in line with sailing speed and sea conditions, helping to improve fuel efficiency,
reduce noise and cut emissions.
The ships will be the world’s largest, breaking the
previous record of another South Korean firm,
Daewoo Shipbuilding and Marine, which won an
order in 2011 to build 20 18,000 TEU container ships
for Denmark’s A.P. Moeller-Maersk.
Delivery of the mega-vessels will begin in the latter
half of 2014, Hyundai said. Each ship will boast a 400-
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
PHOTO OF THE MONTH – SHIP BUILDING
DRY DOCK BLOCKS
LAYOUT
DOUBLE BOTTOM
BLOCK
BALLAST TANKS AND HOLDS ACCOMODATION
AFT SECTION OF VESSEL VESSEL HULL
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
Project Cargo is a term used to broadly describe the national or international transportation of large, heavy, high value or critical pieces of equipment (to the project they are intended for), also commonly referred to as Heavy Lifts.
Project Cargo is also a term used in the international insurance industry to describe DSU (Delay in Start Up) Marine Insurance, a specialized form of Marine Cargo Insurance.
The question is how to identify heavy lift. As a general guideline 'Critical'/ heavy lift items are likely to have one or more of the following characteristics:-
1) Any item with a value in excess of 2 Cr. 2) Replacement time (manufacturing time plus transport time) in excess of 13 weeks; 3) Any equipment for which acceptable repair cannot be made at place of destination; any equipment which because
of its weight and/or volume requires the use of a special conveyance; 4) Any item which including packing does not fit inside a standard 40 feet container or equivalent road trailer, e.g.
having dimensions in excess of 12 m. length and/or 2.5 m wide and/or 2.5 m high 5) Any item including packing with a weight in excess of 20 MT 6) Any item which requires special handling due to its characteristics, such as a centre of gravity off balance 7) Irregular footprint 8) Special requirements for lashing and securing 9) Barge shipments 10) On-deck shipments
KNOW YOUR CARGO – HEAVY LIFTS
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
KNOW YOUR CARGO- HEAVY LIFTS
Project cargo planning:
Handling project cargo takes special care, expertise and attention. Shipments are typically time bound, valuable goods or both – they require proper planning, local logistics experience and dedicated on-site project cargo staff. Analyzing the risks involved in transportation of heavy lifts is very important. The following basic details are required to analyze the risk
A. Cargo specifications
B. The weight of cargo.
C. Dimensions and size of the cargo.
D. Whether ship’s lifting gear or shore cranes used for loading the cargo.
E. Cargo transportation Schedule – Dis-port / Load port / origin / destination.
F. Mode of transportation - sea / land.
G. Credentials of the logistics service provider for the cargo.
The full logistics cannot be discussed in this article. Hence the risks in Project Cargo transportation is listed in
brief
Packing for proper lifting and securing – The packing and lifting hooks should be strong enough to withstand the
rigors of the intended sea/land transit.
Correct lifting gear – Safe working load of the cranes should be more than the weight of the cargo. The trailer being
used to carry should be certified for working loads more than the cargo load. Overloading is strictly not allowed.
Correct loading / lashing materials – The lashing plan should be prepared well in advance duly detailing how much
lashing is to be used, points where the lashing is to be done and specifications of the lashing material. Typical
lashing material to be used would include wires, chains, hooks, bulldog grips, bottle screws and steel stoppers.
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
KNOW YOUR CARGO – HEAVY LIFTS
Route Planning – Physical route planning is very important especially for land transportation / river transportation / multi-
modal transport. Most large projects are set up in remote locations where road infrastructure is not developed, hence
understanding the limitations of the route are very important, especially the carrying capacity of bridges, height of
underpass, turning circle available on roads etc.
Chartering the correct vessel
– The vessel should be
capable of carrying the
heavy lift safely, following
should be considered when
chartering a vessel: Vessels
stability, Deck load density,
Crane capacity, stowage
space, lashing arrangment,
port rotation etc.
Lack of or insufficient
stowage plan – Stowage of
the cargo on the carrying
conveyance is very
important. Eg. Midship
section of the vessel and
lower hold is the best
position on a ship. On truck
it may be best to load over
axel.
Lifting points, lashing points and centre of gravity
of the cargo should be marked and used correctly.
Experienced crew – The
crew which is handling the
cargo should be sufficiently
experienced to handle
heavy lift cargo. They need
to understand the
equipment and their
limitations – Cranes /
hydraulic trailers / vessel
stability / barge stability /
lashing equipment. etc
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
MARINE LOSS CONTROL – PROJECT CARGO
Risk Management
Definition: Risk management is a managerial function by the assured aimed at protecting the organization, its people, assets, and profits, against the consequences (adverse) of pure risk, more particularly aimed at reducing the severity and frequency of losses. This function includes the processes of risk identification, risk assessment, risk control and risk financing. To explain the above in more detail the assured is responsible for the execution of the risk management. The assured may elect to call upon the services of third parties in order to realize their risk management objectives e.g. a broker to assist in the sourcing of the risk transfer market. Whilst the risk identification, risk assessment and risk control aspects of the risk management function are the primary responsibility of the assured, Marine Loss control can be used to mitigate the risk or eliminate the losses.
Using services of experts when transporting Heavy lifts
can help in mitigating risk during transit.
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
MARINE LOSS CONTROL – PROJECT CARGO Loss Control Services
Analyzing assureds’ loss frequency and severity trends. Suggesting risk improvements to reduce the frequency and severity.
Obtain the assureds’ cooperation and support.
Ongoing discussions with the assureds risk manager to ensure long term partnership and assured satisfaction.
Work as a team with the underwriter, client and the broker. In doing so working towards reasonable warranties that could be included on renewal or with similar assureds.
Benefits of Loss Control The benefits of Loss control are as follows;
1) Reduced losses therefore the cost of retained losses (i.e. within deductible), and losses above deductible, is reduced and thus a saving to the assured.
2) Reduced losses ensure that a greater percentage of the cargo arrives at the final destination, thus ensuring that there is no post loss customer conflict between the assured and their clients.
3) With fewer losses it means that the method of transportation is safer and thus personnel safety is improved for the carriers of the goods.
4) Fewer consequential losses which may be uninsured.
5) Fewer losses equates to less claims and a reduced loss ratio. A reduced loss ratio is of benefit to all interested parties.
Following are the loss control services which can be of help to the insured’s project team.
Knowing the policy wording and any risk management warranties within it. Analyzing potential exposures and increasing the assureds risk awareness.
Assess the nature of the assureds business and how he carries it out.
Data base of surveyors and their expertise.
Active involvement in special transports.
Discussing risk improvements and/or requirements with the assured. This should minimize potential exposure.
Evaluating current loss control measures against expected results.
TATA-AIG GENERAL INSURANCE COMPANY MARINE LOSS CONTROL ENGINEERING
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