Cargo Risk Assessment
Frozen meat includes deep-frozen beef, veal, pork, lamb, venison and game. The main regions of origin of frozen meat are Europe (Sweden, Denmark, Germany, Netherlands, Belgium, France, Switzerland, Austria, Ireland, Romania, Bulgaria, Italy, England), Africa, Asia (China), Americas (Argentina, Brazil, Paraguay, USA), Australia (Australia and New Zealand). Trucks and sea freight are the main methods of transporting frozen meat. Frozen meat is usually transported as quarters of beef, sides of pork or whole calf, sheep, and lamb carcasses. It may be packaged in a plastic bag and stockinette (quarters of beef; sheep; whole carcass), in a plastic bag (in stockinette), or wrapped in film and then packaged in cartons (boned portions).
Cargo Risk Analysis
The marine insurance aspects should consider the following:
- The cargo is known for the high probability of natural shortage. Thus, insurance should include aspects related to the protection of cargo from imminent loss or damage. In particular, natural shortages must be taken into account when drawing up the description of the cargo and taken into account in the framework of insurance. Insurance should also protect in case of non-compliance with the temperature regime by the carrier, the presence of products with a strong odor near the cargo, as well as mechanical damage.
- The cargo is difficult to transport, loses its properties if storage conditions are violated, and is also relatively cheap to sell, which makes it unattractive to thieves. As part of the insurance, it is necessary to indicate the aspect that protects against the likelihood that the goods will be stolen, but the possibility of this risk is extremely small.
The main challenges related to marine insurance that need to be emphasized for the broker is the high degree of risk to cargo safety in case of violation of the conditions. Additionally, it must be taken into account that the cargo may be affected by biological organisms, which increases the risk, therefore, it is necessary to strictly observe the temperature regime. Additionally, the cargo is subject to a high degree of natural shortage which should also be reflected in marine insurance.