Cargo Tips: Water Damage and Contamination Prevention

When your cargo is damaged by water or contaminated by contact with a foreign substance, it may not be easy to remedy the damage.

Take the proper steps in advance to ensure shipments arrive in their best condition. Following instructions, testing package strength, inspecting transportation vehicles and providing detailed procedures to handlers are a few ways to avoid costly damage to goods during shipment.

Following these recommendations from Chubb’s Marine Risk Management specialists can give you confidence that you’ve taken the right precautions to protect your investment.

Packaging

__ Use new, well-constructed interior and exterior packaging suitable for the product. Cartons should have a bursting test strength (or equivalent Edge Crush Test value) of at least 200 pounds per square inch. This can be found on the boxmaker’s certificate that is stenciled on the bottom of the carton.

__ Ensure that any wood (e.g., pallet, skid, dunnage/void fill, blocking & bracing) contained in the unit load device or shipping conveyance is properly seasoned, meets ISPM 15 regulations, is appropriately stamped and has moisture content no greater than 15 percent.

__ Ensure that all packaging and cargo securement material is stored in a temperature and humidity controlled environment prior to use.

__ Incorporate appropriate moisture-absorbing material (desiccant) in the packaging and within the conveyance (e.g., truck, trailer, or container). The material should be composed of a substance that is compatible with your products.

__ Package-test your products in order to determine their ability to withstand

anticipated rigors, specifically the elements in the transportation environment, including handling and storage.

__ Follow the standards of International Safe Transit Association or American Society of Testing & Materials to test and validate packaging.

__ Provide clear instructions for cargo handlers and transportation personnel by using written cautions and internationally recognized marks such as “Keep Dry.”

__ Fully encapsulate pallet loads with plastic stretch or shrink wrap.

__ Pack products and equipment that are extremely susceptible to water damage or contamination in moisture-vapor barriers.

__ Consider applying protective preservative spray, coating or film, such as Volatile Corrosion Inhibitors, directly on exposed and/or critical surfaces and components.

Handling

__ Establish and document the use of proper handling equipment and procedures for products susceptible to water damage or contamination.

__ Provide procedures to all transportation providers and intermediaries involved in the shipment, including those that arrange for transportation and/or give shipping instructions, such as freight forwarders.

__ Ensure all cargo is handled (consolidated or de-consolidated) and stored in covered areas that are free of roof leaks or other possible sources of water. Make sure the cargo is stored off the ground so that it will not be contacted by any standing water.

__ Instruct cargo handlers and transport personnel not to stage or store cargo in unsheltered areas at any time.

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__ Avoid storing or stowing cargo in close proximity to products that give off high levels of moisture or odor as well as those incompatible with your goods.

Transportation

__ Select transportation providers and intermediaries that have equipment and products/services adequate for the transit requirements of your goods.

__ When practical, arrange for direct door-to-door shipments, avoiding transfers, transshipments and other intra- or interline handoffs that result in extra handling and potential exposure to the elements.

__ Request favorable stowage during ocean transport (e.g., underdeck or away from heat sources as applicable).

__ Inspect the trailer or container to ensure there are no holes, tears or other defects that will allow ingress of water. The cargo space should be clean, dry and free of any residue or odor from previous shipments. If the shipment is too large for a conventional truck or container and will be transported on a flatbed trailer or open/platform container, then it must be covered with a tarpaulin.

__ Affix a tamper-evident, high security seal meeting the ISO 17712 standard on the truck, trailer or ocean container door.

__ Include a 24-hour contact name and number on the shipment documentation. The contact person must have the technical knowledge and authority to handle an emergency.

Procedures in Case of Loss

__ Perform an immediate inspection of all cargo to identify any damage and take steps to mitigate the loss (e.g., segregating sound from wet product and/or re-packaging the product) to mitigate the loss.

__ If there is suspected loss or damage, contact your agent/broker or Chubb North America Claims for guidance. You should also note the loss or damage on the bill of lading or delivery receipt. If a full inspection is impractical at the time the goods are received, state on the documentation “subject to full inspection”.

__ You should conduct an incident review on any shipment that is damaged in transit. The review should focus on the nature, cause and extent of the damage and look to packaging, handling and transportation improvements as a way to prevent future casualties.

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www.chubb.com/us/oceanmarineOperators and insureds are responsible for safety and risk control. Chubb is not responsible for ensuring the safety or risk control of any operation, and we are not required to make any inspections of any operations, although we may exercise our right to do so from time to time under the terms and conditions of our insurance policies. The provision of this document to the insured, its personnel or broker, or any other facility operator is for informational purposes only. We hereby disclaim any obligation to oversee or monitor any facility’s or insured’s adherence to any guidance or practices set out in this document, or to any other required or otherwise reasonable safety and risk control practices. This document is an overview only, and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice.Chubb is the marketing name used to refer to subsidiaries of Chubb Limited, providing insurance and related services. For a list of these subsidiaries, please visit www.chubb.com. Insurance is provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. Chubb is the world’s largest publicly traded property and casualty insurance group. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to adverse group of clients. Chubb Limited, the parent company of Chubb, is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Copyright ©2017 Form 04-01-0122 (Ed. 11/17)