Insurance Industry Case Study

Recovery from a Terminal when shipping company became bankrupt

timing

5 months

type of recovery

amicable

loss ratio

100%

loss amount

41,933.60EUR

countries involved

China, Spain

The insured of our clients, cargo interest, hired Hanjin in order to transport frozen pork from China to Algeciras.

During the transport, Hanjin went bankrupt and this produced worldwide supply chain and shipping disruption as cargo ships were left stuck at ports and canals w aiting for cash payments.

The challenges we faced

In our case, three reefer containers of insured of our principals were in a terminal in Algeciras when it happened. As a consequence of the bankrupt of Hanjin, containers were left in the terminal.

When consignee got recover the goods, consignee found them with important damages due to broke cold chain.

Solution

Our client, insurance company of cargo interest, paid a compensation and they appointed us to make the recovery. Are there possibilities to recover from shipping company? In this case no, because shipping company went bankrupt. So, our strategy was starting recovery actions against terminal, because goods had been under their custody. And we got an agreement with insurance company of terminal.

Why do we consider it a successful case?

We consider it a successful case because it is very difficult to get a recovery from a Terminal when shipping company became bankrupt.

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