The Maersk Frankfurt caught fire in July 2024. It’s a relatively small ship at just 5500TEU and it’s brand new – only coming into service earlier this summer. Declaring General Average will mean all parties with cargo on the ship will find themselves somewhat responsible for damage and losses to burned containers, cargo, and other assets. Those with cargo on the ship will now need to await the outcome of a general average adjuster review to see how much they’re liable for, and will then need to put up a security deposit or bond.
If the damage is significant and the review figure heads into the multi-millions of dollars, would that supersede the value of one of your containers if it were on this ship? What about the inability to fulfill customer orders and the consequences for sales and brand reputation?
Would you be protected if one of your containers was involved?
Insuring your shipment is a small price to pay to protect yourself from the consequences of unforeseen events during international transportation. Your logistics services provider should have insurance options for you. If they don’t, it’s maybe time to find a partner with your best interest at heart…
