Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade...
-
Upload
silas-lewer -
Category
Documents
-
view
219 -
download
0
Transcript of Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade...
![Page 1: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/1.jpg)
Managing The Risks of Global Shipping
Presented by
Greg J. Kritz,CICVice President
Roanoke Trade Services, Inc.
www.roanoketrade.com
![Page 2: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/2.jpg)
Over 200 Cargo Ships Sink Each Year
![Page 3: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/3.jpg)
Average 20 Major Earthquakes per year
of 7 or higher magnitude
![Page 4: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/4.jpg)
U.S. Cargo Losses Exceed $18 Billion
Annual Impact on U.S Economy
![Page 5: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/5.jpg)
CARGO CRIME SOARING
Theft & Unexplained Shortages (shrinkage/Leakage)
4 Easy Ways to AccessAn Ocean ContainerWithout Leaving a Trace
![Page 6: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/6.jpg)
30% of Cargo Losses NOT Preventable
![Page 7: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/7.jpg)
844 Piracy Attackson Cargo Vessels2004 -2006
$16bn Year in Pirated Cargo
![Page 8: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/8.jpg)
273 Hurricanes Hit USA1851-2005
92 Were Major Category 3,4 & 5
![Page 9: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/9.jpg)
GENERAL AVERAGE
Ancient principle of equity in which all parties in a sea adventure (ship owner, cargo owner, and freight) proportionately share losses resulting from a voluntary and successful sacrifice of part of the ship or cargo to save the whole adventure from an impending peril, or extraordinary expenses necessarily incurred for the joint benefit of ship and cargo.
![Page 10: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/10.jpg)
LOSS of BUSINESS INCOME:
IMPORTERS NIGHTMARE
A Property Insurance Policy Doesn’t Cover Loss of Business Income for Cargo Claims
What if these wereYours’ at Peak Season? $30M
![Page 11: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/11.jpg)
Sampling of Regulatory Risks
Seizures for Failure to Timely File Advance Notice
Seizure for non-Compliance with Wood Packaging
Demand for Redelivery of Tainted or Suspect Product (FDA, AGR,…)
Anti-Dumping Duty Craze & Byrd Amendment
![Page 12: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/12.jpg)
The Ugly Truth About Carrier Financial Responsibility
![Page 13: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/13.jpg)
Ocean Carrier/NVOCC
Subject to terms of Carriage Of Goods by Sea Act (COGSA)
$500 per Customary Shipping Unit as described on OBL
Unit can be the container, a pallet, a crate, carton
![Page 14: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/14.jpg)
Ocean carriers & NVOCC’s have 17 legal reasons not to
pay 1.Act,neglect,default2.Fire3.Perils of the sea4.Act of God5.Act of War6.Act of public enemies7.Government seizure8.Quarantine 9.Act or omission of shipper
10.Strike,lockouts, or stoppages11.Riots & Civil commotions12.General Average13.Inherent Vice 14.Poor Packing15.Poor Marks16.Latent defects17.Loss/damage outside control of carrier
![Page 15: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/15.jpg)
Most Typical Carrier Defenses
“We didn’t pack it so we can’t confirm the number of pieces”
“You can’t prove that damage happened when cargo was in our care,custody & control.
![Page 16: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/16.jpg)
International Air & Indirect Air Carriers
Subject to terms of the “Warsaw Convention”
$9.07 pound/$20 Kilo or 17 SDR Kilo if Montreal Protocol ($23.15 kilo)
![Page 17: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/17.jpg)
What About Distribution Centers?
Warehouseman’s Terms & Conditions
Rule Unless Changed by Contract
Liability Typically a multiple of base rate
3PL’s and Forwarding Operations Often Limit Liability on Warehouse Receipts
![Page 18: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/18.jpg)
Freight Forwarder & Customs Broker Liability
Unless acting as a carrier and issuing a freight bill, 3PL’s & forwarders typically are not liable for loss or damage
Customs Brokers use Terms & Conditions of service that Limit Their Liability to A Maximum of $50 per shipment
![Page 19: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/19.jpg)
Action Steps
A. Identify Risks in Supply Chain Where You Have Financial Interest
B. Establish Clear Contracts with Buyers & Suppliers (Don’t Assume Incoterms Address It)
C. If you Import, Control the Insurance
![Page 20: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/20.jpg)
Action Steps Continued…/
D. If You Transfer Risk to Insurer1. Protect Profits, Insure Selling
Price2. Raise Limits to Anticipate Peak
Accumulation & Lost Profit3. Move Inventory Coverage to
Cargo Policy – Flood, Quake,Profit
![Page 21: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/21.jpg)
Action Steps Continued…/
D. If You Transfer Risk to Insurer..4. Add Airfreight Replacement5. Cover Extremes in Temperature6. Contingent Financial Interest7. Unexplained Shortages8. Payment on Account – Disputes9. Your Financial Interest
Admitted regardless of Incoterms
![Page 22: Managing The Risks of Global Shipping Presented by Greg J. Kritz,CIC Vice President Roanoke Trade Services, Inc. .](https://reader036.fdocuments.us/reader036/viewer/2022062421/56649c7e5503460f94934008/html5/thumbnails/22.jpg)
Thank You For Letting Me
Be With You Today !