skip to main content

In the emerging Asia-Pacific region where countries are becoming more litigious, the transport and shipping industry needs to mitigate and manage their risks.

It is certainly true that the larger the freight movement and the larger the chain of transport operators, the greater the risk of loss or damage.



Also, the sheer size of the regional logistics market means that transport operators need to understand their liabilities, protect themselves and offer value added services like cargo insurance to their customers to maintain the reputation of their business.



Risk management tips for transport operators
 

  1. Have the right standard trading conditions

    It is always advisable to seek the assistance of a qualified maritime lawyer to agree on the right trading conditions and the process to offer these trading conditions via offline and online environments.
     

  2. Ensure trading conditions are understood and accepted by customers

    The full terms must be provided prior to concluding any agreement to move freight for offline and online freight movement transactions.
     

  3. Purchase freight liability protection

    Freight liability cover is designed for transport operators for legal liabilities from loss or damage to freight being consigned under approved trading terms.
     

  4. Clearly advise cargo insurance is not included

    It is critical to clearly advise customers that cargo insurance is not included as part of any freight movement transaction.
     

  5. Invite customers to purchase cargo insurance

    The availability of a web-based marine insurance quoting and issuing system helps transport operators to assist customers in acquiring cargo insurance and may help transport operators to reduce their liability.
     

  6. Arrange bespoke solutions for special contracts or increased liabilities

    For any special contract entered into by a transport operator and its customer, the transport operator should contact their insurer to arrange for bespoke coverage solutions.
     

  7. Transfer the risk of subcontractors

    It is always advisable to seek the assistance of a qualified maritime lawyer to agree on the construction of a suitable principal contractor agreement and the process to offer these terms.
     

  8. Seek risk management support from your insurer for heavy lift and over-dimensional freight movements

    Larger and experienced insurance companies offer risk management support to risks they insure.
     

These risk mitigation tips are designed to foster sustainable growth among transport operators in Asia, the world’s largest logistics market.

This content is brought to you by Chubb Insurance Australia Limited (“Chubb”) as a convenience to readers and is not intended to constitute advice (professional or otherwise) or recommendations upon which a reader may rely. Any references to insurance cover are general in nature only and may not suit your particular circumstances. Chubb does not take into account your personal objectives, financial situation or needs and any insurance cover referred to is subject to the terms, conditions and exclusions set out in the relevant policy wording.  Please obtain and read carefully the relevant insurance policy before deciding to acquire any insurance product. A policy wording can be obtained at www.chubb.com/au, through your broker or by contacting any of the Chubb offices. Chubb makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content. Readers relying on any content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of the content. Reference in this content (if any) to any specific commercial product, process, or service, and links from this content to other third party websites, do not constitute or imply an endorsement or recommendation by Chubb and shall not be used for advertising or service/product endorsement purposes. ©2020 Chubb Insurance Australia Limited ABN: 23 001 642 020 AFSL: 239687. Chubb®, its logos, and Chubb.Insured.SM are protected trademarks of Chubb.