![]() The outcome is that one shipper’s goods could be entirely lost while another shipper’s remain intact, in turn putting the burden of cost on a single company. Here’s why: During emergencies, crews don’t have the time to determine exactly which cargo goes overboard and which stays behind. This legal tool ensures that if cargo is jettisoned, all cargo owners share responsibility equally for the loss. The York Antwerp Rules of 1890 (amended in 1994) defined a framework for this loss calculation called the “general average”. When it comes to cargo jettison, someone has to pay the price for lost cargo. Companies may also face reputation damage if significant losses are incurred, especially if there are questions surrounding the nature of the emergency and the response of the crew. This frustration can also lead to lost profit, both from the value of actual goods thrown overboard and the decision by customers to reduce shipping volumes or cancel current contracts. Despite shippers having no control over cargo jettison, customers are often frustrated with their first supply chain point of contact: freight forwarders. Even if products can be immediately replaced and reshipped, freight forwarders must secure new shipping vessels, complete new customs paperwork, and inform clients of missed delivery dates. The loss of cargo from an ocean carrier also causes significant shipping delays for customers. In addition, jettisoned plastic containers may not decompose for hundreds or thousands of years underwater, in turn causing damage to sensitive ecosystems such as coral reefs. The jettisoned cargo is very rarely recovered, left to litter the ocean floor for generations to come.įor example, batteries dumped into the ocean can leak harmful chemicals into the ocean which may decimate local marine life populations. Metal or plastic shipping containers are also lost during jettison in combination, this cargo loss can lead to a significant environmental impact. As a result, anything can end up in the ocean – everything from furniture to fitness products and electronics has been lost over the past few years. While the lives of crewmembers will always trump the monetary value of transported goods, jettison comes with its own set of problems, including:Ĭrews don’t have time to think about the cargo they’re tossing overboard during an emergency. What is cargo jettison?Ĭargo jettison occurs when cargo containers are lost during sea travel, either as a result of inclement conditions forcing them off the deck or if crews must abandon containers to save the lives of those on board in an emergency situation. Here’s what companies need to know about cargo jettison, its impact on the logistics market at large, and how they can protect both customers and business bottom lines. With supply chains now diversifying to meet evolving consumer demand and reduce the disruptive risk of future pandemic-level events – even as ship sizes continue to increase – jettison is likely to become both more frequent and more expensive.įor shippers and freight forwarders, this emerging issue presents a potentially costly concern.
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