A container containing hazardous goods aboard a Yang Ming vessel, exploded and caused a fire at the Ningbo port in China last Friday morning. The cause of the explosion has not yet been identified and various news entities have reported zero fatalities or injuries announced to date. However, experts point out that if the explosion had occurred at sea, the outcome could have been significantly more severe.
In this blog we’ll discuss more details of this incident and talk about the importance of cargo insurance.
Details of the Incident, Ningbo a Top Global Port
Parts of the port impacted by this have since reopened (as of Aug. 12 at midnight), per reports, after being closed to deal with the aftermath of the incident, per the JOC. As we mentioned above, the exact cause of the incident has not been determined, Yang Ming stressed, but reports did indicate that the container involved was carrying hazardous materials. In a statement last Friday, Yang Ming said, “once the incident is fully resolved, Yang Ming will assess the possibility and feasibility of vessel repairs, cargo transshipment, and schedule adjustments, with the safety of personnel and the vessel as the top priority.”
Yang Ming has stated that the shipper replaced a dry container with a reefer box, but the reefer did not need electricity for cooling, according to Maritime-Executive. Unverified reports from China Central Television (CCTV) indicated that the ship was carrying lithium-ion batteries and a chemical compound, Butyl peroxbenzoate. This chemical needs to be kept below 86 degrees Fahrenheit, and recent media reports highlight a current heatwave in China.
Ningbo is the second busiest container port in China and is a key port in Asia for several services run by the 2M Alliance, which includes Maersk and Mediterranean Shipping Co. Earlier this week, according to the JOC, the alliance announced changes to their Asia-Europe routes due to increasing port congestion in both Asia and Northern Europe. Delays in Asia, coupled with the extended detours around southern Africa to avoid the Red Sea, are leading to vessel congestion and exacerbating bottlenecks at European ports.
Importance of Cargo Insurance
Cargo insurance plays a role in cash management, risk mitigation, and corporate accountability. Don’t be the one coughing up non-existent cash to repurchase a product that could have been covered by all-risk marine insurance in the first place. Insure your cargo, get covered, and stay protected.
A few ways to stay proactive when protecting your cargo: insure your shipments, choose a reliable freight forwarder, think about innovative packaging techniques, smart labeling practices, use technology with tracking and monitoring qualities.
Additionally, it’s crucial to underline the importance of cargo insurance as a key investment when considering the protection of your goods. While proactive measures are essential for safeguarding your bottom line, cargo insurance acts as both a financial safety net and a safeguard for your company’s reputation.
Looking Ahead
Have questions about the importance of cargo insurance or wanting to make sure your next shipment has cargo insurance? Contact us today, our team would be happy to assist you and your shipping needs.
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