Shipping Line Declares General Average; Cargo at Major Chinese Ports Affected
Recently, a ship fire accident occurred in the Port of Singapore, which has had a chain impact on the China-India route and cargo owners along the route.A fire broke out on Evergreen Shipping's "Ever Lenient" during operations in the port. The incident has been officially recognized as general average, and the adjustment process has been initiated.
According to international shipping regulations,All interested parties related to the cargo must share the relevant costs of the accident in proportion, regardless of whether the cargo was damaged or not.Currently, cargo shipped from multiple domestic ports and loaded on the ship has been affected.
A fire broke out during loading and unloading at the dock, and multiple departments jointly put out the fire.
According to the Maritime and Port Authority of Singapore, the accident occurred on April 10, local time. At that time, the "Ever Lenient" ship was docked at Singapore's PSA Pasir Panjang Terminal for container loading and unloading operations, and the cargo on board suddenly caught fire. The crew quickly initiated firefighting and boundary cooling procedures and requested shore-based support. The Singapore Port emergency team and the Civil Defense Force immediately intervened, using fire boats and professional forces to put out the fire. Fire-fighting operations continued until the next day, and by the afternoon of April 11, the fire was completely extinguished. At present, the ship has been transferred to other terminals in the Singapore port area, and the water in the cabin will be removed and the containers affected by the water will be processed.
The routes cover three major ports in China, and multiple shipping companies share cabins.
Public information shows that the "Ever Lenient" ship has a shipping capacity of approximately 9,466TEU and was serving the "China-India Express Service 5" (CIX5) route at the time of the incident. This route connects China with markets in South Asia and the Middle East. Domestic ports of call include Shanghai, Ningbo and Shenzhen Shekou. This route is operated by multiple shipping companies in the same cabin. In addition to Evergreen Line, it also includes ONE (Ocean Network), KMTC (Korea Shipping) and SM LINE (Senluo Merchant Line).
The sequence of port calls covers key nodes such as Shanghai, Ningbo, Shekou, Singapore, Port Klang, Nawasheva, Mundra, Karachi and Colombo. Therefore, this accident not only affects Evergreen Shipping’s customers, but also affects cargo owners of co-cabin shipping companies.
General average is officially announced, and cargo owners must complete a guarantee before they can take delivery of the goods.
On April 16, Evergreen Shipping issued an announcement confirming that the accident constituted general average and that the adjustment process had been initiated. The shipowner has appointed Sedgwick Global Marine Specialty, an international average loss adjuster, to be responsible for adjustment and guarantee collection.
According to the general average principle, the expenses incurred by reasonable measures taken to ensure the safety of the ship and common cargo shall be shared proportionally among all beneficiaries. Therefore, even if the goods are not damaged, the cargo owner must bear the corresponding costs, otherwise the goods will not be collected.Evergreen emphasized that the goods can only be released after the general average guarantee procedure is completed.
Security document requirements: There is a difference between insured and uninsured goods
According to the currently published requirements, cargo owners need to submit different documents depending on whether the goods are insured:
Insured goods:A signed general average contract (Average Bond), a general average guarantee letter (Average Guarantee) issued by the insurance company, and a commercial invoice (if freight is not included must be supplemented) must be submitted.
Uninsured goods:In addition to the general average contract and invoice, a cash guarantee is also required. The specific amount and payment method will be announced by the adjustment agency later.
All documents must be submitted to the designated mailbox of Sedgwick, and the ship name, box number and bill of lading number must be indicated. After completing the review, the goods will be included in the "available release list" before entering the normal pick-up process. For LCL cargo, the freight forwarder must provide complete manifest information as soon as possible, including cargo description, weight, shipper and consignee information, in order to distinguish the responsibilities and rights of each cargo.
Deliveries are delayed, costs increase, and insurance becomes more important
Industry insiders pointed out that this incident will have two main impacts: First, the delivery process will be extended, and the cargo owner will need to complete additional preparation of guarantee documents and adjustment and docking, and the overall delivery cycle will be significantly lengthened; second, additional costs are unavoidable, and regardless of whether it is insured or not, you will need to bear a certain proportion of general average expenses, and additional costs such as storage fees and port demurrage may be incurred. This ship's route is connected to China's major export ports. The accident will directly affect related shipments from Shanghai, Ningbo, Shenzhen and other places, and the rhythm of some supply chains may be disrupted.
As uncertainty in the global shipping environment increases and emergencies such as fires, conflicts, and port congestion occur frequently, general average cases are on the rise. The industry generally recommends that cargo owners pay attention to transportation risk management, especially cargo insurance configuration. Insured cargo owners only need to go through the process, while uninsured cargo owners may face large cash pressures. It is recommended that relevant cargo owners contact insurance companies or adjusters as soon as possible to complete the guarantee procedures to reduce losses and speed up the delivery process.
sunny worldwide logistics Co., Ltd. - Three Core Competencies:
Exclusive foreign trade warehouse at Yantian Port—one of only three among 60,000+ logistics peers in Shenzhen.
Own container fleet, available on-call—among the best in Shenzhen's industry.
1,800 sqm of premium Grade-A office space in Longgang—a testament to exceptional strength.
sunny worldwide logistics—Top 3 in Shenzhen Logistics.
When it comes to logistics, choose sunny worldwide logistics—your gateway to the world.
About sunny worldwide logistics
Established in 1998, Swwlogistics is an international freight forwarding enterprise headquartered in Shenzhen, with 1,800 sqm of self-owned Grade-A office space. Our mission: "Ssunny worldwide logistics Freight—No Surprises Unless Acts of God." With 27 years in freight forwarding, there's no pitfall we haven't seen.
Services:
Sea freight
Land transport
Air freight
Rail freight
Customs clearance
Warehousing
Inspection declaration
Container trucking
Fumigation
Insurance
One-stop integrated logistics solutions.
sunny worldwide logistics—More committed than the cargo owner themselves.
Contact Us:
QQ: 2885374591
Tel: 0755-25643421
WhatsApp/WeChat: 19076129125 (Lily)
Websites:
Official: swwlogistics.com
Rate Inquiry: swwlsrates.com
Mexico Site: swwshippingforwarder.com
Address: 8/F, Block B, Rongde International, Henggang, Longgang District, Shenzhen, Guangdong, China
Email: sales36@swwlogistics.com.cn