Issue link: http://www.e-digitaleditions.com/i/661513
March 2016 51 Commerce to act as a guide to better delineate expected logistic responsibilities in international trade. However, when a fully loaded container is tendered to the carrier and it is subsequently claused "shipper load and count" the reliance on a clean FOB (Free on Board) or FCA (Free Carrier) turnover is eliminated—except for the outward appearance of the box itself! Incoterms are NOT contract terms and cannot be relied upon to solve responsibility. When coffee arrives short or water-damaged, who is expected to be responsible? Will the buyer's insurers claim damage or shortage occurred PRIOR to their attachment, and who can prove otherwise? Theft, Pilferage and Non-Delivery This catch-all phrase seems to lump together all other reasons why coffee would turn up short at out-turn. The fact is, it does. I am willing to bet that every large merchant can relate an incident where a container was landed and some unknown substance was found instead. I have heard sand, trash, cement blocks and dirt, to name a few. There are more illegal ways to enter a container maintaining intact seals than legitimate entries! Who is responsible for such loss? Can damage be pinpointed to an event? What does a clean B/L mean? How well do you know your supplier? Of course, disappearance of the whole container also occurs—and that might just be the easier claim. Do You Smell That? I have met very few people that dis- agree with the aroma of roasted coffee. Furthermore, the incredible and subtle nuances of differing flavors between vari- eties, origins, and blends are the want of marketers in every coffee company. But, I have yet to find the "phenol" flavor in the latest edition of Le Nez du Café. Is an "off taste" a physical loss or a quality claim? Where would you pinpoint the damage occurring? Can you dictate how close to the ship's exhaust the con- tainer is placed? Did something seep into the container floorboards? Buying in Bulk? This is the most recently developed mode of green coffee container shipping where origin mills line containers with one large single "bag" and then "blow" in 20 mt of green beans. This method is highly attractive to large commercial roasters where minimal labor can control large quantities of beans "dumped" directly into processing lines and storage hoppers. Great and efficient…until a hole is discovered in the container, or the bot- tom stratum of beans is wet and moldy and it is unknown how many affected beans have already been dumped. Is the whole line now affected? Vermin or Worse Let's leave this one to your imagination or perhaps a later story… Modern shipping has dramatically changed the face of shipping. But every change comes with its own pitfalls and perils. In each of the above scenarios a very murky "gray area" exists. Knowledgeable insurers are key to maintaining the effi- ciency that containerized shipping now offers and providing piece-of-mind to truly savor that morning cup of Joe! Brett Anderhub, CIC, CRM is Sr. VP of Rekerdres & Sons, a Dallas, Texas-based global commodity insurer. Brett has a post- graduate diploma in Marine Insurance and is a member of the Green Coffee Association's Warehouse and Traffic Committee. www.kktee.de mailto:mail@.kktee.de Kloth+Konken_TC-Jan14 1/6/14 12:42 PM Page 1 photo courtesy of Rekerdres & Sons Natural jute bags are not contract approved by the Green Coffee Association.