Months After Cargo Loss Due to Foul Weather, ONE Apus Embarks on Journey to Long Beach

After departing from Kobe, Japan following a journey to remove hundreds of damaged and dislodged containers, the ONE Apus is expected to arrive in Long Beach, CA on or around March 30th. This journey stems from last year’s cargo loss during the ship’s trip from China to Long Beach, California, when an estimated 1,816 containers were lost overboard due to inclement weather. It was estimated that hundreds more collapsed on deck. 

One Apus

Photo courtesy of Seatrade Maritime

ONE Apus experienced massive swells and extreme winds about 1,600 miles off the coast of Hawaii in November of last year. Instead of continuing on its projected path to California, the 2019-built ship turned around and headed to Japan. ONE Apus arrived in Kobe on December 8th to receive repairs. The insurance claims from this loss of cargo are expected to be greater than $100 million.

Within a series of weather-related cargo losses on the trans-Pacific this past season, this incident was by far the worst. Ships have been packed nearly beyond capacity the last few months, due to the increased shipping demands.

Port Congestion Continues

Along with the increased shipping demands, extreme congestion at the ports of Los Angeles and Long Beach are still hindering the reliability of containerships. These delays will likely affect the arrival of ONE Apus – possibly not reaching the dock until as late as April 7, though expected to arrive much earlier.

The ONE Apus has been receiving repairs since its arrival in Kobe in December. As of February 26th, a total of 940 boxes had been discharged. The original plan was to carry as many of the original containers in good shape as the ship would allow, they have since stated that some of these containers may need to be loaded on different vessels to reach their destinations. 

One Apus

Photo by: W.K. Webster & Co Ltd

Why Cargo Insurance is Important

When situations like this occur, cargo insurance can help protect your shipment while it is in transit, even as it moves through different modes and carriers. Cargo insurance offers door-to-door coverage and will reimburse the full value of cargo lost or damaged due to circumstances outside of the carrier’s control. The two primary types of policies are generally All-Risk or Free of Particular Average (FPA); the policy that is chosen will determine the spectrum of situations covered.

All Risk Insurance is the most common type of policy and covers the broadest range of incidents.  Unless explicitly excluded in the policy, all events are covered.  These commonly excluded situations include nuclear events, strikes, and riots, as well as flaws in the goods such as inadequate packaging or decay.

On the other hand, FPA coverage, or ‘named-perils coverage’ is much more limited and excludes coverage on losses due to common causes such as heavy weather, rough handling, theft, and more. If you are shipping used merchandise or bulk goods this may be the only available option to insure your shipment. FPA coverage is also very common for marine insurance policies. 

Will ONE Apus Declare General Average?

It is not yet known if the ONE Apus will declare General Average.  General Average requires that the shipowner and its customers share a proportionate amount of the costs associated with saving a vessel after a major casualty. When General Average is declared, cargo owners are required to contribute funds even if they did not cause or sustain damage before cargo can be released.  Both FPA and all risk will provide coverage for General Average.

How SiShips Can Help

1,382 containers are lost at sea each year according to the World Shipping Council, making cargo insurance an extremely important part of protecting your business. Through our encompassing shipment-management software SiShips, we will find a policy that works for you.

To learn more about SiShips, or to view a demo of our software, contact us today.