Static commodity insurance losses: a tale of woe?

Rob Hawes, of Liberty, reports on a curious story of criminal endeavour: misappropriation, mysterious disappearance, fraudulent documents and phantom goods

Misappropriation and loss or disappearance of static goods is not a new issue for cargo owners. The effect is widespread, not limited to any specific type of commodity and is ambivalent to the geographical location of storage, whether in the ordinary course of transit or not. The knock-on effect should not be underestimated: this type of loss also affects shippers, buyers, supply chains, warehouse keepers and collateral managers and, of course, their insurers. Substantial losses can also negatively affect local markets, disrupt trade and, dependent on circumstances, change future pricing in the locale.