New rules preventing containers lacking verified weight information from being loaded onto ships have left the industry floundering, according to XL Catlin.

The rules take effect from July 1, but the insurer’s Global Product Leader Cargo Jonathan Eaton says the implications are not straightforward and questions remain over how compliance will be achieved.

Because overweight containers can cause injuries or impact the stability and structural integrity of ships, an amendment was made to the International Convention for the Safety of Life at Sea requiring 100% verification of container weights prior to loading.

But nobody knows how many shippers will be able to comply, Mr Eaton says.

“This change should lessen the risks to port facilities and container ships posed by overweight containers. It appears likely, however, that it could take some time before compliance approaches 100%, with unpredictable impacts on the global supply chain.

“Marine risk engineers can help companies evaluate their supply chains in light of this requirement, especially in cases where the supply chain is far-flung and complex.

“In addition, this requirement could have some implications to a shipper’s liability exposures. Marine insurance brokers and underwriters can help determine if any changes to liability programs are needed.”

Mike Davies, XL Catlin’s Chief Underwriting Officer, Marine, Asia Pacific, says the region is bound to be impacted.

“Around 90% of the world’s trade is carried by sea. Expectations are that this percentage will increase due to competitive freight costs and seaborne trade delivering fuel efficiency and low carbon impact.

“With Asia Pacific playing such an integral part in world trade and the fact that nine out of top 10 ports in the world are in Asia, this requirement will definitely impact shippers across the region.”