For Safe Shipment, Please Do Buy Insurance!

On Tuesday, March 6, 2018, at 15:20 local time, Maersk container vessel (Maersk Honam), capacity up to 15262 Teu, serious fires happened. It may be the most serious container vessel fire by now.


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In February 13, 2017, APL AUSTRIA, capacity 6350Teu, container fire burned for 7 days and 7 nights.

In April 5, 2017, MSC DANIELA, capacity 13798Teu, container fire burned for 13 days and 14 nights.

Maersk Honam fully loaded more than 10 thousand Teu, total 7860 containers. These containers come from China different major ports, involve and affect thousands of foreign trade company and logistics enterprises.


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The goods have been burnt out, very miserable!

The goods not burnt out; they will also be liable for the general average.

No insurance, very bad!


Trade terms CIF, Shipper didn’t buy insurance for burnt out goods, can’t get a penny. At the same time, they need to pay general average and freight charge. And consignee may claim for compensation. All responsibilities are on shipper.


Trade terms CIF, Shipper bought insurance for burnt out goods, can claim for goods payment from insurance company (depending on the type of insurance you bought), need to bear general average (this cost can also be claimed from insurance company, depending on your insurance type), and need to pay freight charge.


Trade terms FOB, Consignee bears these risks and responsibilities. Consignee who bought insurance for burnt out goods, can claim for goods payment from insurance company (depending on the type of insurance you bought), need to bear general average (this cost can also be claimed from insurance company, depending on your insurance type), and need to pay freight charge.


What is general average?

General average means when in the same sea voyage, vessel、goods and other property under common danger, in order to keep common safety, special sacrifice and special cost which is caused by intentionally and reasonably steps.


For safe shipment, Please do buy insurance!