ocean cargo - risky busine$$ aaron howes vice president – risk management and insurance
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Ocean Cargo - Risky Busine$$ Aaron Howes Vice President – Risk Management and Insurance. Agenda. Who is Expeditors Cargo Insurance Brokers (ECIB) Trends in the Industry Cargo Values Why Steamship lines don’t want high value pharma Questions. Expeditors Cargo Insurance Brokers (ECIB). - PowerPoint PPT PresentationTRANSCRIPT
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Ocean Cargo - Risky Busine$$
Aaron HowesVice President – Risk Management and Insurance
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Agenda
• Who is Expeditors Cargo Insurance Brokers (ECIB)
• Trends in the Industry
• Cargo Values
• Why Steamship lines don’t want high value pharma
• Questions
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Expeditors Cargo Insurance Brokers (ECIB)
• Wholly owned subsidiary of Expeditors International of Washington Inc.
• Full Service Cargo Insurance Broker
• Specialists in Cargo claims management
• Loss control and risk assessment analysis
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Trend - Issue
• Shippers / Manufactures trying to reduce freight costs
• Converting Air freight to Ocean Freight
• Shipments often become larger (consolidated)
• Temperature controlled – reefer
• Longer transit times
• Steamship lines become less willing to move high value
• Logistics / Risk Management look for a solution
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Crux of the Problem
• 40 Ft Furniture
• 40 Ft Xbox 360
• 40 Ft Reefer - Pharma
• @ 25K - $40K
• @ $1.2M
• @ 10M - $50M
Risk versus Reward
- total loss on reefer- Sensitive equipment
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Other issues
• You have insurance• $40M loss – yes you will get paid• Insurance company not happy – want their money back• Get it from the SSL (subrogation) or from you increase
premiums
• $40M loss – what does that do to your production ? Customers ?
• BIG PICTURE - more than just saving freight costs
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Questions?
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