Tagged: Cargo, claims, commodity prices, recession, shippers

We have not witnessed any significant increase in the number of claims since the first signs of a recession last year. However, it is commonly the case that claims do rise in slowing economies and we expect to see that trend returning this year.

Lowering worldwide consumer demand has already heavily impacted commodity prices. Profit margins have narrowed, and markets have diminished, which we expect to lead to increasing numbers of claims from buyers who reject goods on spurious grounds where previously they might have accepted them. Manufacturers and shippers also cut costs by using cheaper methods of packaging and shipping, and cutting the size of their workforce (often including the number of qualified staff and surveyors).

We also anticipate an increasing number of smaller claims as it becomes more profitable to pursue them; an increase in claims for theft because of organised crime and petty thefts; and an increase in abandoned cargo as buyers struggle to manage cash flow, access credit, or declare bankruptcy.

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