The insurance will only cover physical damage caused to the cargo by the strikers themselves, not damage relating to or resulting from the actual strike action.

The exclusion of “withholding of labour” means that cargo interests will not be covered for consequential loses which may arise from the strike action alone. “loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion”. It should be noted that Clause 3.7 of the Institute Strikes Clauses (Cargo) sets out a very specific exclusion, that being for: The only positive cover in relation to damage arising from Strike action may be afforded through the inclusion of the “buy back” Institute Strikes Clauses (Cargo). In no case shall this insurance cover loss damage or expenseħ.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots, or civil commotionsħ.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions” In this article we briefly consider whether resulting losses or additional expense may be covered under a marine cargo policy, what the carrier’s obligations and liabilities are when faced with strikes and delays and what they may do with the cargo in the event that they cannot access the intended port of call either within a reasonable period of time or at all.Īs a general rule of thumb, and notwithstanding “All Risks” cover often being afforded, Strike Risks are expressly excluded from the vast majority of marine cargo policies, specifically under Clause 7 of the Institute Cargo Clauses (A), (B) and (C) which provides that: With this industrial action and the threat of further industrial action, together with congestion and delay ever increasing across the globe, it is of paramount importance for both cargo interests and their insurers to review their underlying commercial contracts, contracts of carriage and marine cargo policies with a view to managing and limiting potential exposures. Whilst a delay of eight days in the scope of a 30 to 40 day voyage is not exceptional and will not necessarily cause physical damage to all cargo, the knock-on effects, including delay, could last considerably longer.

Those arrivals include Evergreen, MSC, OOCL, COSCO and Maersk container vessels alongside a number of bulk and tanker vessels. If the strike action goes ahead, this will significantly impact port operations including the arrival of at least 10 vessels at Felixstowe and 5 vessels at Liverpool over the eight-day period. Some 1,900 workers at Felixstowe plan to stop all operations between 21 and 29 August 2022 and whilst dates are yet to be confirmed for Liverpool, press reports suggest that up to some 500 workers will strike there to coincide with the Felixstowe walk out. With strike action planned and expected to hit both the Ports of Felixstowe and Liverpool in the coming days, the UK supply chain faces the threat of ever-increasing pressure and disruption.

Cosco tracking vessel schedule