In December last year, around 2,000 shipping containers got lost at sea. Suddenly 2020 became even more costly – especially for those without container insurance.
The year 2020 was, for many, a difficult one. As if dealing with a worldwide pandemic and financial struggles from lockdowns and low demand wasn’t enough, the year ended on an even more challenging note.
Not just one or two vessels made the international news in the last month of 2020. Three did. The ship we’re all most likely to remember is the ONE Apus cargo vessel. It lost around 1,900 shipping containers at sea before arriving at the port of Kobe in Japan. Apart from the containers lost at sea, many had also collapsed on deck – raising the number of containers either lost or damaged on that one vessel.
Shipping containers battling the weather
The weather is one of the greatest forces in the world. And that is especially true when you’re on a vessel out in the middle of the ocean. Something the ONE Apus cargo vessel can confirm. So can the Evergreen Machine containership that also encountered bad weather in December off the coast of Japan. The ship lost 36 shipping containers at sea. As well as several damaged containers on the ship itself.
Bad weather plays a major role in the damage and loss of shipping containers every year. However, it’s not the only element. Other significant factors are bad stowage, and improper supervision and handling.
Despite the risk of damaged and lost shipping containers, container insurance is often an area that is forgotten. Or maybe merely pushed aside. In many cases, the cargo is what’s in focus. However, it’s crucial to realize that cargo insurance and container insurance are two different things.
Cargo insurance covers the cargo inside the container. Container insurance, on the other hand, covers the equipment itself (e.g., the container). Containers are far from cheap to replace. That is why having to pay for the entire value of the container quickly can turn into a big financial disadvantage.
Getting container insurance doesn’t have to be difficult. With the xChange container insurance, you can add it automatically to all the transactions with your containers. Click on the banner below and learn more about how the xChange insurance works.
Reduce the number of shipping containers lost at sea
As the shipping industry continuously become more and more digitalized, it also opens up for new tools. That is also the case when it comes to minimizing the risk of losing shipping containers.
With the events in December – and even the past years – a vast amount of money stands to be saved if container ship operators find a way to get around the bad weather. That is where especially weather and vessel motion forecasting products come into the picture. These tools can help avoid some of the multi-million dollar maritime losses we’ve witnessed in many years.
Today, many container ships are stacked higher with more cargo. The vessels are also getting larger every year. These things make it more important than ever to avoid the worst conditions. In recent years, the technology and data – analyzing currents, waves, and sea levels – have improved significantly. This development stands to help ship operators reduce the risk of encountering the worst weather. That way, it becomes easier to keep the crew and cargo safe.
However, as of today, the vast minority of vessels make use of these new digital tools. Even if these products were more common, shippers would still risk their containers ending up on the bottom of the sea. Or severely damaged. This is why it’s a good idea to think twice before opting out of container insurance.
To make it even easier for you to secure yourself xChange offers different container insurance solutions on the platform.
xChange container insurances
The xChange container insurance help reduce the risk and liability when doing one-way moves on xChange. The container insurance can be added to any deal on xChange. It’s up to the container supply to add it to the transaction. However, it’s always the user of the container who pays for the container insurance.
We offer comprehensive coverage for:
- (Actual) total loss
- Constructive total loss
- General average
- Mysterious disappearance
Basic and premium container insurance
The xChange container insurance comes in two types: Basic and premium.
The basic insurance covers the equipment from a total loss. So, if a shipping container is lost at sea this insurance covers that loss. If a container mysteriously disappears or is damaged beyond repair the basic insurance covers that too.
The premium insurance covers everything the basic insurance covers. However, the premium also covers all kinds of physical damage a container can go through. So, if a vessel sways or the container is damaged by the heat that is covered in this insurance too.
The xChange container insurance costs from US$ 2.50 up to US$ 4.10 per container for 60 days. The container insurance is automatically renewed after 60 days. That, unless the container owner reports that the container has been returned empty. The insurance cost depends on the container type.
The insurance fees will automatically be billed directly to the container users’ xChange wallet every month.
Having container insurance has never been easier. Click on the banner below and learn more about the xChange container insurance and its pricing.