Warehouses Need to Have Skin in the Game

摘要

Every cotton merchant knows about Superstorm Sandy, but very few have heard about the M/V Flaminia disaster. Yet for our small community of global marine commodity insurers, the losses surrounding both names will be memorable for their consequences: cash calls, re-insurance triggers, new regulations and ultimately, changes to insurers' plans and appetites. Some of those changes will be constructive, but in any case, the effects are already rippling through the commodity worlds. Let's begin with the M/V Flaminia, a post-Panamax container ship operated by the Mediterranean Shipping Company. The vessel was laden with less than 50% of its 6,750 TEU capacity when, on 14 July 2012, a fire and then explosions burst from hold number 4. Heat and fire spreadquickly to holds 5, 6 and 7. With three lives already lost and no hope of saving it, the crew abandoned ship.