While the saga of the 1,300-feet long Ever Given container ship that was blocking the Suez Canal for over a week is now over, more than 360 ships were delayed and the potential value of total goods held up as high as $9.6 billion.
During this event, many vessels decided to avoid taking any chances with further delays and circumvent the Suez Canal by navigating around the Cape of Good Hope on the Southern tip of Africa. For ships traveling between Asia and Europe, that involves a 5,500-mile diversion which takes seven to 10 days longer and a much higher fuel bill. The fact that ships are going on such a detour underscores their importance as the lifeblood of global trade. With the spotlight firmly on international container shipping over the past week, which companies transport the most cargo? The industry is not a monopoly and several key players dominate it.
Clearly, the transfer of materials and goods through supply chains has never been more fragile. Global outsourcing, economic impairments, government regulations, and bills-of-material with countless suppliers compound the volatility of supply chains. Thus, companies should make every effort to command control of the goods in transit to and from their operations.
How do you cover yourself for such an impending disaster? An Ocean Cargo & Stock Throughput policy provides cover for all moveable goods (inventory) that are the subject of your trade, including raw materials, semi-finished, and finished products. The goods are covered at all times whether in transit, undergoing process (although damage caused by the manufacturing process is excluded), or in storage at owned or third party premises, including options to extend coverage to retail locations (Retail Stock Throughput).
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