Business, Freight News, Logistics

Wet summers riskier to cargo than winter, says insurer

[ December 8, 2021   //   ]

The wet European summer, not the depths of winter is when cargo is at greater risk from weather events, according to analysis by logistics insurance specialist TT Club.

It says that extreme flooding across broad swathes of continental Europe during July and August 2021 has become a major risk to cargo, with ”extraordinary volumes of rainfall over short periods resulting in flash flooding and causing significant damage”, it says.

TT Club’s risk management director, Peregrine Storrs-Foxsaid: “Water is unforgiving and has the ability to penetrate and cause significant damage. Flood water is inevitably dirty, increasing damage and in many instances creating health challenging situations.”

Extreme weather events can be challenging to predict but he urged terminal, port and warehouse operators to keep fresh their assessment of climate risk.

The insurer’s analysis has also found that 65% of cargo damage incidents are attributable in part to the way that goods are packed in containers and other transport equipment. Data for 2020 suggests 25% of wet cargo damage was caused by water ingress to the unit through pre-existing damage that probably should have been identified during cargo packing. Many claims could be avoided with a robust checking procedure.