TT Talk Edition 87 - 11/07/2006

Following the tragic casualty of 'Maersk Honam' it is timely, particularly for shippers and freight forwarders, to cover the dynamics and risks associated with General Average.

A challenge to, or attempt to limit the scope of, the established “fire” defence fails.

Incorporation of Incoterms into a sale contract will not bind any third party, or govern any other contract. It remains for the seller or buyer to ensure that the agreed Incoterm correctly reflects the reality for finance, carriage and insurance. Start with the end in mind!

The traditional assertion that storm events are unexpected and their consequence unavoidable may no longer be simple to establish. Planning from the outset is as critical as planning for the emergency.