 |
NAUTICUS LLC
|
|
NAUTICUS LLC
|
Cargo Loss Control is not restricted to the examination/evaluation of manufactured goods, its packaging and preparation for shipment, the review of shipping documents as well as the logistics, warehousing, security, handling, shipping and receiving of cargo. It should also include the "Y2K Compliance"
During the last years, many articles have been written and discussions held on the "Y2K" problem. As we are now only 10 months away from the millennium, in these 10 months the media will address the Y2K problem even more frequently. The matter is serious enough that many businesses and institutions such as banks, insurance companies and governments have already invested millions of dollars to correct this problem.
We have learned that the Y2K problem is not restricted to computers, but actually to any electronic device that contains a date/time chip. One has only to look around their office to realize how much of the office equipment is already affected. In addition to the computer, fax machine, postage meter, which are obvious, often also the telephone system, printers, copy machines, etc. contain a date/time chip and therefore, may be affected.
Should underwriters and their assureds, the shippers and consignees of cargo be concerned? We are of the opinion that they, indeed, have much to be concerned about, as most of the shipping documentation and information is computer-generated. Not only in the offices of shippers and consignees, but also their vendors, air, rail, truck and ocean carriers, the various government agencies, insurance brokers, insurance companies and freight forwarders/logistics providers, are computerized and most of the documentation and information in these institutions are computer-generated.
We are of the opinion that if any of the aforementioned institutions are not Y2K compliant, it could result in damaged cargo or loss of cargo and/or documents. Furthermore, documents may be improperly dated, which may result in a non or delayed payment on a letter of credit or policy of insurance.
It is obvious that in such an instance, all involved parties will experience losses. However, while for most of them it may be loss of labor time, the monetary loss for a shipper or consignee could be much farther reaching.
Assureds such as shippers and consignees of cargo should also take steps to prevent cargo damages or cargo losses, due to non-Y2K compliance. While we may not have much control over the services provided by the various government agencies, utility companies, etc., we do have a choice when it comes to selecting our various vendors. Of course, the first order of the day for any shipper and consignee is to "clean up his own house". We show hereunder a list of various equipment that shippers and consignees would want to confirm that same is Y2K compliant:
A shipper or consignee should obtain a written confirmation from manufacturers that their equipment is Y2K compliant. A statement "we believe our equipment is Y2K compliant" does not suffice. This would be like the statement of a crane manufacturer "we believe our crane can lift 50 Ton". What would happen if a piece of equipment weighing 40 Ton would, due to failure of the crane fall down and is damaged beyond repair ? It is obvious that only the statement "The equipment is Y2K compliant" is acceptable. Furthermore, shippers and consignees should inquire and obtain written confirmation from their various vendors, that they are Y2K compliant. We show hereunder a sample list of such vendors:
While the computerized equipment in use and the vendors may vary for the various assureds, it is very apparent that in order to prevent cargo damages, or losses, shippers and consignees should assure that not only their own operation, but also that of their vendors is Y2K compliant. It is obvious that this can be a tremendous task. However, Banks, Insurance Brokers, Insurance Companies, Freight Forwarders/Logistics Providers and Cargo Loss Control Surveyors will be able assist and/or advise further in this matter.
Return to Articles Page