Containers falling into the sea

Below is an interesting story posted on the TRT News website where you will find the link. The report briefly provides the following information; "40 containers on board the ship from China to Australia fell into the water due to giant waves off Sydney, while 73 containers were damaged. The ship's images were shared by the Australian Maritime Safety Authority (AMSA)".

Let me ask you a question, considering this news; If you had a container in 40 containers that fell from ship to sea, what would be your risk as an exporter, and how could you avoid that risk? Let us examine the way to avoid risk and risk by answering this question.

When looking for a solution to the problem, first of all, let's note that the answers we face will vary according to the TERMS and PAYMENTS that are used for this export. Let us examine comparatively, taking into account the form of delivery and the manner of payment together.

As is known, within the delivery forms, the exporter's obligation to obtain insurance for the shipped goods exists only in the CIF and CIP delivery forms. Other than these, there is no obligation to have insurance in the delivery forms, and insurance is left to the preference of the party who assumes the risk due to the delivery method.
When faced with such an event, it would be misleading to decide only by the way it was delivered, as well as the way it was paid to see the risk. Here's the thing.
Let's assume that we made this export by EXW or CFR or FOB or FAS delivery method. In this case, we must say that we will not risk the damage and deficiency that may happen to the goods on the road.

When we make the export with the form of CIF or CIP delivery, as per our responsibility, when we make the insurance of the goods and send the insurance policy to the buyer along with other documents, in this case we will have no risk of damage and deficiency that may happen to the goods on the road.

However, even though we do not have the risk as exporters in all of these forms of delivery mentioned above, things will change if we have not yet received the sale price when the goods are on the way, i.e. if we are not collecting by advance payment or credit method, the way we pay is MAL MUCUABLE (in other words, VERESIYE). For example, the risk will remain with us as exporters, since the buyer will not agree to take a container that has fallen into the sea and of course will not pay for it.

If the way we pay is VESAİK MUKABILI, the buyer will still remain with us as a risk exporter because of the documents that have come to the bank of a container that has fallen into the sea, whether he will go to the bank and receive payment.

As it turns out, there may be instances where the risk is not in the exporter, but indirectly also on the exporter, depending on the way it is delivered.

As a solution to avoid such a situation, it would be appropriate for the exporter to insure the goods if the delivery method is EXW, CFR, FOB or FAS, if we do not collect them in advance or by credit.

Wishing our exporters' containers don't fall into the sea.
Hüseyin TEKGÜÇ

Related news link;
https://www.trthaber.com/haber/dunya/dalgalarla-bogusan-gemiden-40-konteyner-suya-dustu-487449.html