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Risks mount as expanded Panama Canal drives up value of insured cargo
THE US$5.25 billion expansion of the Panama Canal will raise the value of insured goods and risk accumulation, according to a report by Allianz Global Corporate & Specialty.
The report said that a fully-loaded 12,600-TEU containership could have an average insured cargo value of $250 million, based on an average value of $20,000 per TEU, reported Detroit's Business Insurance journal.
"The value of insured goods transported will increase with the expanded canal, as will the risk accumulation," said Allianz risk analyst Andrew Kinsey.
"This is the reason why proactive loss controls will continue to be needed; including tracking of the risk accumulation. This is one of the biggest lessons learned from the Tianjin explosion last year" that caused $4 billion in insured losses.
The report said that since the cargo capacity of ships travelling through the canal could double an additional $1.25 billion in insured goods could pass through the canal in a given day.
The report said that bigger ships automatically pose greater risks, giving a serious incident the potential to lead to a sizable loss and greater disruption.
Increasing traffic of bigger ships also adds to the amount of diesel and petroleum being transported, which could raise the pollution risk in an accident.
The report said that a fully-loaded 12,600-TEU containership could have an average insured cargo value of $250 million, based on an average value of $20,000 per TEU, reported Detroit's Business Insurance journal.
"The value of insured goods transported will increase with the expanded canal, as will the risk accumulation," said Allianz risk analyst Andrew Kinsey.
"This is the reason why proactive loss controls will continue to be needed; including tracking of the risk accumulation. This is one of the biggest lessons learned from the Tianjin explosion last year" that caused $4 billion in insured losses.
The report said that since the cargo capacity of ships travelling through the canal could double an additional $1.25 billion in insured goods could pass through the canal in a given day.
The report said that bigger ships automatically pose greater risks, giving a serious incident the potential to lead to a sizable loss and greater disruption.
Increasing traffic of bigger ships also adds to the amount of diesel and petroleum being transported, which could raise the pollution risk in an accident.
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