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Insurer warns on unfair reefer claims

Insurer warns on unfair reefer claims
After discovering that a significant number of reefer cargo damage comes from on-shore errors, North P&I Club has launched a campaign to help insulate its members from bogus insurance claims.

“To ensure reefer container cargoes - particularly living organic products - reach their final destination in perfect order, the correct conditions need to be maintained throughout the ‘cold chain’, from harvest to sea transit to point of sale,” explained head of loss prevention, Tony Baker. “However, increased use of combined and multimodal bills of lading are extending carriers’ responsibility and liability, which was traditionally limited to the sea passage link of the cold chain, to include the time when reefer containers leave the shipper up to when they are delivered to the consignee.

“This could include road haulage and periods of time being stored at container terminals, all of which are critical links in the cold chain.”

North has found that a significant proportion of reefer cargo damage is caused by long periods of time off-power, at terminals or  during inland transit, as well as malfunctioning refrigeration units.

Temperature deviations within reefer containers can also be caused by improper stowage affecting airflow, stuffing of warm cargo, heat generated by premature ripening of the cargo and incorrectly set parameters, says the club in its guides ‘The Cold Chain’ and ‘Refrigerated Containers’.

"The two new publications include loss prevention advice to help ensure reefer container cargoes are properly cared for at all stages of the cold chain, in particular to prevent damage caused by prolonged periods of time off-power or by a breakdown of the reefer machinery," said Baker. "They also aim to raise awareness of the need to understand the cargoes being transported and ensure that carriage instructions are suitable, as well as to assist in defending any subsequent claims for reported damage."