Liga Asuransi – Dear readers, how are you? After we discussed a lot about construction insurance, now we move to another subject, which is transportation insurance or known as marine cargo insurance.
Transportation insurance is much different from project insurance. Transportation insurance covers the risk of transporting goods during the journey from the origin where the goods are located until they reach the final destination.
Many risks can occur during the journey, rolling over, capsizing, burning, collision, robbing, sinking ship, earthquake, and others.
There are several types of goods that are transported ranging from goods in containers, bulk, large equipment, and others. Similarly, the types of conveyance used. Land, sea, and air transport. Each type of conveyance has different risks.
Well, this time we will discuss nickel transportation insurance. As we know that Indonesia is the largest nickel-producing country in the world. Nickel mines are in central and eastern areas, especially on the islands of Sulawesi and North Maluku.
Nickel is currently an important commodity in the world as it becomes the main raw material for the manufacture of batteries for electric vehicles that will become the mainstay of world transportation from this time and years to come.
Nickel transportation looks simple, but it turns out that it is among the highest risk in the eyes of the insurance industry. There were a number of nickel transport ship accidents.
As a result, there are not many insurance companies that can provide insurance coverage for nickel transportation.
As a solution, you need to use the services of an insurance broker company that has access to several insurance companies both domestically and abroad that can provide the insurance coverage.
As a senior insurance broker, in this article, we would like to share our experience with you what the risks of nickel transport including the solution. With the hope that it can be an input for nickel industry players in Indonesia and in the world.
If you are interested in this article, please share it with your colleagues so that they also understand like you.
Characteristics of Nickel
To understand the nickel grinding let us know the nature of nickel. The results of the study found that some characteristics of nickel ore that cause risks include fluidization (melting) occurs, and the formation of a hard liquid surface, resulting in poor stability of the ship, making ships carrying nickel ore unstable and in dangerous conditions, what else.
When the ship is in bad weather conditions, it is affected by strong winds and waves which causes higher danger. Therefore, it is necessary to have various preventive ways that must be considered in the transportation of nickel ore.
The impact of such high-risk factors and appropriate prevention efforts are needed by conducting appropriate risk evaluations and avoiding the possibility of danger.
As we know that mining activities produce various ores and concentrate that are sent around the world for further processing into metals.
Ores and concentrates vary in chemical and physical properties therefore they cause a variety of potential hazards, including in the shipping.
Impact of High Nickel Demand
In line with the increasing world’s need for nickel, transportation activities are also increasing. As a result, the need for ships and loading and unloading also goes up. In line with that, there is also an increased risk because work becomes hasty and tends to be careless and ignore safety procedures.
The Need for Compliance with shipping standards
For the transportation of bulk goods as stipulated in the International Maritime Solid Bulk Cargoes Code (IMSBC Code). Where it is required for each nickel transportation process follows the provisions of this IMSBC.
Therefore, there needs to be strict supervision to ensure compliance with good industry practices in the form of analysis, monitoring, and loading of nickel ore cargoes, for safety.
Unfortunately, despite the many circulars, warnings, and notices issued by the government and authorities including mine association administrators to their members, there are still those who have not followed the safety provisions.
Some nickel loading ports in Indonesia are in remote locations without infrastructure. Local miners stockpile nickel ore in open conditions at or close to the shore, there are no adequate docks or port facilities, and then nickel ore is loaded offshore onto aircraft carriers via barges.
Nickel Mining Process
Most of the nickel is obtained from open mining and therefore it can be exposed to the elements, especially rain during the rainy season.
In recent years, due to climate change, the switch between dry and wet seasons is difficult to estimate, and rains can occur at any time of the year.
Advantages of conducting a Survey before transportation
At the remote location of the loading port, it may be difficult to get survey personnel to come to the location of the port quickly. A ship’s master has begun to worry about the ship’s departure schedule and has no time to wait for surveyors and shippers to often be reluctant to suspend loading. At the end, the ship still departed without a survey.
Therefore, the best way is to have a local surveyor at each loading port to check the available stock before loading begins and then monitor loading on board.
Naked eye vision cannot detect whether the cargo is already in accordance with the IMSBC Code and is safe to transport. Certainty can only be done by authorized laboratories in controlled tests.
Warning signs
The masters and crews of the cargo-loaded ship should be able to recognize when a cargo of nickel ore would pose a risk and, as such, it requires a complete analysis in the laboratory.
Here are the obvious warning signs:
- When he shows the appearance of pancakes with a shiny surface
- When the cargo sample is formed like clay and compressed shape.
- When the cargo spark is observed to harden
If the master or crew member of the ship is aware of any of the above alarming signs, they should stop loading, notify the shipowner and P&I club and insurance company, and request an independent laboratory analysis of the cargo immediately.
Bringing surveyors on board at the beginning of loading can help the crew to know what need to do when cargo is delivered to the ship.
Nickel Transport Accidents
Many accidents were reported with the significant loss from the transport of nickel and iron ore.
Nickel cargoes are prone to liquefaction in bad weather and potentially cause the ship to capsize. This incident may result in the ship being lost.
In August 2019, there was a ship accident when the 52,400-dwt bulk ship Nur Allya, loaded with nickel ore, sank in Indonesian waters.
According to insurance industry records, the transport of nickel ore is one of the most dangerous commodities in recent years, largely due to liquefaction incidents.
How to get nickel transportation insurance in Indonesia?
As explained above, the transportation of nickel is one of the highest transportation risks in the world. Therefore, not many insurance companies are willing to provide insurance coverage.
The best way to get a nickel transportation insurance is to use the services of an insurance broker company that has extensive experience in the field of nickel transportation.
An insurance broker has an extensive network within the Indonesian insurance industry and abroad. Thus, an insurance broker can approach various insurance companies by creating mutually beneficial insurance programs for both the insured and the insurer.
One of the insurance brokers companies that are experienced in nickel transportation is L&G Insurance Broker. One of its clients is the largest nickel hauling company in Indonesia.
For all your insurance needs, L&G Insurance Broker relationships right now!
Sources:
- https://splash247.com/updated-guidance-on-marine-transport-of-ores-and-concentrates/
- https://www.hellenicshippingnews.com/the-risks-of-transporting-nickel-ore-cargoes-a-timely-reminder/
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E-mail: customer.support@lngrisk.co.id
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