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Algeria Ethiopia NigerAngola Gabon RwandaBenin Ghana SenegalBotswana Guinea SomaliaBurkina Faso Guinea BassauSudan Cameroon KenyaTanzania Central African RepublicLiberia Togo ChadLibya Tunisia CongoMali Uganda Cote d’IvoireMalawi Western Sahara Dem. Republic of the CongoMauritania Zambia DjiboutiMorocco Zimbabwe Equatorial GuineaMozambique Eritrea Namibia*note Egypt and South Africa are not considered special risk countries
• A form of risk that arises from the change in price of one currency against another
• If a firm is buying and selling in different currencies, then revenue and costs can move upwards or downwards as exchange rates between currencies change
Freight Carrier Legal liability•International Carriers are governed by Conventions and Acts such as The Carriage of Goods by Sea Act (COGSA) and the Warsaw Convention (Air).
•These conventions allow carriers to limit their liability
•International Ocean $500.00 per customary freight unit•International Air Freight $28.00 per kg or 17 SDRs/kg
•Trucking and Warehousing varies from Country to Country.
–This limited liability creates a financial exposure for the actual owners of the goods – the result – Cargo Insurance
Neither the carrier or ship owner will be responsible for loss or damage arising or resulting from:• 1. Act, neglect, or default of the master, mariner, pilot, or the servants of the carrier
in the navigation or in the management of the ship. • 2. Fire, unless caused by the actual fault or privity of the carrier. • 3. Perils, danger, and accidents of the sea or of other navigable waters.• 4. Act of God. • 5. Act of war. • 6. Act of public enemies. • 7. Arrest or restraint of princes, rulers or people, or seizure under legal process. • 8. Quarantine restrictions. • 9. Act or omission of the shipper or owner of the goods, his agent or representative. • 10. Strikers or lockouts or stoppage or restraint of labor from whatever cause, whether partial or
general; Provided that nothing herein contained shall be construed to relieve a carrier from responsibility for the carrier's own acts
• 11. Riots and civil commotion's. • 12. Saving or attempting to save life or property at sea. • 13. Wastage in bulk or weight or any other loss or damage arising from inherent defect, quality, or
vice of the goods. • 14. Insufficiency or packing. • 15. Insufficiency or inadequacy of marks. • 16. Latent defects not discoverable by due diligence. • 17. Any other cause arising without the actual fault and privity of the carrier without the fault or
neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage.
• Same old problems:– Pilferage / “smash and grab” / “onesie twosie”– Crimes of Opportunity – Inside Jobs– Organized crime – still around – growing in some areas
• Newer problems:– Gang activity– “Bogus drivers” / “Bogus traffic stops”– Armed hijackings / shootings / gas attacks
Know your Freight Carriers• What is your Freight provider doing to guard against these risks?
• Minimum security standards?• CCTV• limited access to warehouse
• Background checks for employees?• Background checks for 3rd party contractors?• Process to limit exposure points? • Where is your cargo sitting over the weekend?• Alternating driving routes / pick up times?• You get what you pay for !