Andrew Kemp, TT Club’s regional director of freight transport for Europe, the Middle East and Asia, has suggested that insurance brokers take note of the future of the Middle East, particularly Dubai in the United Arab Emirates.
“Insurance brokers should be aware that many freight forwarders, carriers and logistics operators in the Middle East are involved in sea-air arrangements, either as a provider of the service itself or as an agent acting on behalf of shipper clients,” Kemp said in a written statement.
“Sea-air” arrangements, developed in the 1990s, combine the lower cost of sea freight with the speed of air freight. The strategy is mainly used on Asia-Europe trade routes, Kemp noted.
“It is important that both insurance brokers and service providers are aware that different international conventions on the carriage of goods apply to air and sea movements, and as a result, operators are open to varying levels of liability should cargo be damaged or lost,” he said.