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Tag: cargo insurance

Continued Risk to Inland Waterway Freight Operations

Posted on by Keith McKinley

There are alarming warning signs says international freight and cargo handling insurer TT Club, that severe climatic events are already impacting inland waterway operations; these impacts are widely forecast to get worse in the future.

2024 was the hottest year on record globally. Reinsurer Swiss Re reported natural catastrophe losses exceeding US$100 billion for the fifth year in succession and with thirty-seven events recording losses over US$1 billion the prior year as reported by the Financial Times, from extreme weather. Estimates forecast that insured losses could double within the next ten years.

In 2024 European waterways continued to experience significant disruption to cargo transport. In June the Rhine suffered from extreme weather conditions with torrential rain leading to severe flooding in southern Germany. Cargo handling was interrupted to/from Switzerland and caused substantial delays in inland traffic between the Lower and Upper Rhine.

Conversely, increased droughts have led to record low water levels on major rivers with some vessels carrying only 25% of their usual load to avoid running aground and causing delays. Shipping lines have had to switch cargo from river to rail to maintain connections between industrial regions and the ports.

“Climate change effects on river navigation are significant as it is highly sensitive to changes in weather patterns and long-term climate trends,” says Neil Dalus from TT’s Loss Prevention Department. “This challenge highlights the vulnerability of Europe’s inland waterway transport system, emphasizing the need for infrastructure improvements, planning for risk mitigation and workforce training to ensure operational resilience.”

TT’s historical data points to an continuing rise in claims from weather-related losses over the last ten years. These result from numerous types of damage from navigational and berthing accidents to collapse of cranes and port equipment collisions to container stacks blowing over, and of course flood damage to buildings and infrastructure.

Uninsured and consequential losses can also be costly reports Dalus, “As a result of operational delays reputational damage can occur. Emergency supplies and additional labour costs can accrue and increased maintenance, training and management downtime have to be factored in.”

TT is determined to emphasise the need for a focus on climate change resilience measures; to sharpen detailed awareness of such risks that, with undeniable global warming are clearly set to increase. Additionally as a mutual insurer TT will work in assisting inland waterway operators to devise loss prevention strategies to help minimise the future costly consequences of weather-related incidents.

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Game-Changing Partnership in Logistics Insurance

Posted on by Keith McKinley

Otonomi, specialist in innovative supply chain risk technology and the freight insurance industry, has joined forces with Redkik, a leading innovator in the embedded cargo insurance space, to revolutionize the way logistics companies and shippers mitigate their financial risks. This ground-breaking partnership is aimed to bridge a $50 billion protection gap in the time-critical freight sector, where shippers of pharmaceuticals, perishables, aerospace engines, aircraft parts, and many other expedited assets shipments are in dramatic need of proper insurance coverage.

Powered by proprietary technologies in data-activated triggers, AI-assisted underwriting, and seamless integrated API, this synergetic partnership introduces unparalleled values to cargo owners to gain transparency and mitigate their risks. The unique set of benefits includes: 1) seamlessly embedded insurance solutions, 2) premium rates pricing in seconds, 3) policy binding in minutes, and 4) parametrically activated claims resolution which provides outstanding transparency and speed (22x faster than industry standard).

Logistics companies and shipping clients have long grappled with the cumbersome and time-consuming process of obtaining insurance coverage and filing claims. Redkik and Otonomi’s joint innovative solution aims to streamline and modernize this critical aspect of the industry, ultimately improving efficiency and profitability for all stakeholders involved.
Key Benefits of the Partnership

This collaboration brings unparalleled benefits to an industry always in motion:

● First-to-Market Air Cargo Delay Insurance: Otonomi introduces air freight delay protection policies that are unprecedented in the industry. Otonomi’s Cargo+ policy coverage offers logistics companies and cargo owners fast, cost-effective, and transparent operations, reducing financial risks associated with delays in cargo shipments.
● Instant Transactional Insurance Quotations: Through the integration of Redkik’s cutting-edge technology along with Otonomi’s algorithmic underwriting engine, clients can now receive instant insurance quotes, simplifying the decision-making process and allowing for quicker coverage acquisition.
● Remarkable Reduction in Claim Resolution Times: The platform, with its data-activated triggers and smart contracts, dramatically reduces claim resolution times, by orders of magnitude. This swift resolution process minimizes disruptions to logistics operations and ensures faster claims payouts.
● Significant Administrative Cost Savings: Redkik and Otonomi’s integrated digital wallet and automated processes substantially cut administrative costs, allowing companies to allocate resources more efficiently and improve their bottom line.
● Enhanced Coverage and Risk Management: The coverage is further enhanced by AI-assisted portfolio risk models and advanced stressed scenario capabilities. This not only opens up new markets but also creates greater opportunities for profitability.

Quote from Otonomi: ”Team Otonomi is thrilled to announce a ground-breaking partnership with Redkik that redefines the insurtech landscape. Together, we are embarking on a journey to revolutionize supply chain risk management by directly embedding insurance solutions into logistics companies and shippers’ ecosystems. Bringing cargo delay quotes in seconds, resolving claims 22 times faster than industry standard, all wrapped up seamlessly thanks to modern API integrations, Otonomi and Redkik empower clients to mitigate freight disruption risks efficiently.”

Quote from Redkik: ”We are proud to join forces with the innovative team at Otonomi. Although often mistaken to be competitors, we actually compliment each other extremely well. Adding an air cargo delay insurance to our existing offerings is yet another powerful value add to all of our existing and future clients and partners. Working with the team at Otonomi has been a lot of fun and we are looking forward to continue to work closely together in the future.”

Next-Gen Cargo Insurance for Uber Freight

Posted on by David Priestman

The integration offers instant access to competitively-priced Less-Than-Truckload (LTL) cargo insurance to Uber Freight’s network of shippers facilitated through Redkik’s robust software. This seamless, real-time insurance coverage is available at the point of booking a shipment for transport, aligning with the fast-paced, evolving demands of the modern transportation industry.

Today marks a significant milestone in supply chain management as Redkik, a leading global software company, unveils a dynamic collaboration with Uber Freight. This strategic collaboration will revolutionize per-load cargo insurance, integrating Redkik’s state-of-the-art InsurTech software into Uber Freight’s Shipper Platform.

Chris Kalinski, CEO and Founder of Redkik, praised the collaboration, “We are proud to join forces with the forward-thinking team at Uber Freight. Together, we are bringing substantial time and cost savings to the Uber Freight network, and reinforcing our commitment to delivering progressive, intelligent insurance solutions.”

Uber Freight has built one of the world’s largest digital freight marketplaces and managed transportation networks. Leveraging world-class logistics technology and industry expertise, Uber arms shippers of all sizes with the tools, transportation services, and insight they need to manage today’s complex freight market. In collaboration with Redkik, the latest Insurtech integration further streamlines the booking process, providing shippers with real-time access to LTL cargo insurance in just a few clicks.

“Our mission is to enhance our customers’ supply chain strategy and equip them with the necessary tools and service to deliver – cargo insurance is no exception,” stated Michael Bailey, Product Manager at Uber Freight. “By integrating Redkik’s innovative Insurtech solution directly onto our Shipper Platform, we’re able to streamline the process for our shippers and ensure they have the coverage they need 24/7.

Redkik is a trailblazing global software company, on a mission to streamline and enhance the insurance industry within the logistics and transportation sectors. Through leveraging advanced artificial intelligence and machine learning, Redkik’s proprietary technology produces instantaneous quotes, backed by premier insurance companies, and based on accurate data sets. This approach ensures reduced risk and maximized coverage for all shipment types.

Death in Confined Spaces: Hidden Danger

Posted on by David Priestman

International freight transport insurer TT Club is seeking to draw attention to the hidden danger and life-threatening hazards caused by enclosed and confined spaces prevalent throughout the global supply chain. Toxic gases produced by some cargoes as well as leakages, residual fumigants and other causes of a reduced oxygen environment are the chief problems, with 60% of fatalities suffered by would be rescuers.

Confined or enclosed spaces are common in the supply chain industry. Such spaces exist across all freight modalities; from tank containers to cargo hold stairwells and holds, to road tankers and sealed cargo units. A lack of understanding of the danger present may have fatal consequences.

Without sufficient oxygen the human body starts to shut down very quickly. Any rescue operations are therefore time critical. The primary cause of reduced oxygen levels is the increased presence of other gases, such as carbon dioxide. This may arise from rusting of the ship’s structure or metal cargoes, oxidation of cargoes such as coal or the decomposition of biodegradable cargoes, for example fish meal, logs, bark, or wood pellets. All these lead to carbon dioxide – and potentially other gases – being released, simultaneously depleting the oxygen. Other associated hazards include flammable or toxic vapours from leaking cargoes or leaking pipes or hoses.

Peregrine Storrs-Fox, Risk Management Director at TT explains that a lack of awareness of these, often hidden dangers is surprisingly high. “The key risk is that workers may not readily recognise spaces that could present danger,” he states. “The cargo hold of a ship is a leading example, but containers and other cargo transport units pose similar risks; there may be a lack of knowledge of the cargo packed or whether fumigants have been used. Similarly, tanks units, whether a road barrel or tank container, certainly qualify as enclosed spaces.”

The speed with which the effects of oxygen depletion can become debilitating require thorough and regular communication to ensure that operatives understand the risks. When entering a lethal space there are no obvious red flags. In terms of symptoms there are no warning signs such as coughing or feeling breathless or nauseous. An individual can pass out without having the opportunity to raise an alarm or escape.

The quick onset and catastrophic nature of these symptoms often leads to others rushing to the aid of the casualty, unaware of the reason for their collapse. Statistically, over 60% of fatalities connected to confined and enclosed spaces are suffered by would be rescuers.

“The silent and invisible nature of this killer emphasises the importance of raising awareness of the risk,” stresses Storrs-Fox. “Developing and undertaking drills to practice rescues are crucial steps in mitigating the risks, as are a number of other strategies including risk assessments of working in potentially hazardous spaces, discouraging short cuts in work practices and testing, monitoring and venting air in confined areas.”

While not exhaustive, TT has developed a checklist of risk mitigation strategies that can be applied across all modes, whether on land or at sea.

Redkik Partner to Speed Transactional Insurance

Posted on by David Priestman

Redkik, a global software company with the mission to simplify and improve the supply chain with technology, has announced its collaboration with Cover Whale, an American commercial trucking insurtech.

Redkik enables coverage to be purchased at the time of booking a shipment, which better meets the fast-paced needs of the transportation industry. Through the affiliation, Cover Whale can act as a source for shippers and freight carriers to instantly access per-load cargo insurance through Redkik’s software.

Transactional Insurance

“Cover Whale has quickly become the go-to insurance provider for America’s truckers and plays an important role in the U.S. freight transportation network,” said Chris Kalinski, CEO and Founder of Redkik. “We’re honoured to work with the innovators at Cover Whale who have been at the forefront of commercial trucking insurtech, and who share our passion for saving time and money for all involved.”

“Cover Whale is always searching for tech solutions that help the transportation industry work better. Redkik streamlines the tedious process of attaining transactional insurance coverage for shippers and carriers,” said Dan Abrahamsen, CEO of Cover Whale.

Redkik is a global software company with the mission to simplify and improve the supply chain for all parties within logistics and transportation. Utilizing artificial intelligence and machine learning, Redkik’s technology manages and administers annual insurance policies and can generate instant quotes backed by leading insurance companies based on actual data sets, providing lower risk and higher coverage for any type of shipment.

Webinar: Engineering Risk out of Insurance Transactions

Posted on by Keith McKinley

Insurance of freight is about managing risk. Listen and learn about the Redkik revolution of the logistics insurance industry. The panel – Chris Kalinski of Redkik and Tom Ptacek of Lockton Industries, moderated by Editor Peter MacLeod, discuss how insurance calculation predictions and rates per mile are now possible, as is integration with transport management and brokering platforms. Freight insurance is becoming a variable, rather than a fixed cost. Marine risk insurance is the oldest in the world but has come a long way since Lloyds began.

Watch the 30 minute webinar here or choose from all our recent podcasts and webinars here.

Redkik is a global Insurtech company with the mission to transform and improve the insurance industry for all parties within logistics and transportation. Redkik’s platform eliminates the need for annual and complex policies. Through Redkik’s embedded integration with licensed cargo insurance providers, transport intermediaries can offer their customers on-demand per-shipment, customized cargo insurance when their freight is booked.

“Redkik has enjoyed expanding to the Asian market with ERGO; they have been nothing but knowledgeable in supporting this partnership and imminent launch across Asia. Redkik’s technology and ERGO’s well established insurance capabilities has led to a transformative partnership that will change the way we think of cargo insurance,” said Chris Kalinski, CEO and founder of Redkik.

“ERGO is excited to partner with Redkik. We want to transform the way Marine Cargo business is done in our region and offer instant quotes and issuance of the certificate of insurance to our customers in seconds,” said Karl-Heinz Jung, Chief Executive of ERGO Singapore.

This SaaS solution for cargo insurance is now available for transport intermediaries to distribute in Singapore and will soon expand through the rest of Asia. This follows a successful launch in the US in 2021 and Europe and Brazil in 2022.

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