Sarah Clements

In this post, we will outline the critical risks that improperly identified shipments, or undeclared goods, can post to ships, their crews, and other individuals. We will also discuss how accurate declarations, along with adequate packaging and handling procedures, can contribute to safety at sea.

What Are Undeclared Goods in Shipping?

During transit, some goods pose a certain risk to human health, to property, or to the environment. Specific documentation and handling procedures are vital for managing and mitigating these risks.

But if these goods are shipped without the correct identification, documents, or packaging, then they are considered “undeclared goods”.

Essentially, an undeclared or misdeclared good is any shipment of potentially dangerous goods in which there is no visible indication that the packaging contains hazardous materials.

Examples of Common Undeclared Goods

There are nine main categories of dangerous goods, with specific handling and labelling requirements for each. If any of these are undeclared or misdeclared, they could pose serious risks to your ship or your crew:

1. Explosives, such as ammunition or fireworks.
2. This category incorporates both flammable and non-flammable gases, and both toxic and non-toxic gases, along with aerosols.
3. Flammable liquids, such as paints and fuels.
4. Flammable solids, including those which are capable of spontaneous combustion.
5. Oxidising substances and organic peroxides – i.e. substances that could aid combustion in the event of a fire.
6. Toxic and infectious substances, including medical waste and pesticides.
7. Radioactive material.
8. Corrosive substances, such as drain cleaners and other industrial cleaning agents.
9. Miscellaneous dangerous goods. This category incorporates lithium batteries, which could spontaneously ignite, or even explode, if they are exposed to extreme temperatures, or if they are crushed or damaged during transit.

For more information, take a look at the HSE’s Carriage of Dangerous Goods (CDG) resources.

The Potential Risks of Undeclared Goods

Risk of Harm
If they are not correctly packaged, stored, or handled, these dangerous goods could cause:

• Fires
• Explosions
• Infections
• Illnesses
• Other damages to people, property, and the environment.

Regulatory Risks
Undeclared goods also carry a significant regulatory risk. There are severe penalties for shipping undeclared or misdeclared dangerous goods. You could face a significant fine per container, along with even heftier fines, and even prosecution, if any serious injuries or property destruction arises as a result of your actions.

Insurance Risks
There are also insurance implications. If a hazardous substance causes illness, injury, or property damage, you will naturally make a claim on your maritime insurance policy to cover the costs. But if your insurer finds that the hazardous substance was undeclared or misdeclared, then it will invalidate your insurance policy, meaning you may be liable to cover all of your costs yourself.

Managing The Risks of Undeclared Goods

You must ensure that any dangerous goods you ship are correctly documented and labelled, and you must abide by all relevant procedures for handling and storing these goods. Some goods may need to be segregated from others – certain chemical substances are reactive, for example – and you should also outline your response plan in the event of an incident.

Beyond this, it is important that you and your crew learn to identify potentially undeclared goods.

Signs You Might Have Undeclared Goods

Here are some red flags that could indicate that a crate, container, or package might actually contain something hazardous:

• Vague documentation. All shipping documents should be as accurate as possible. If the documentation says something generic, such as “parts” or “chemicals” or “samples”, then you should act to find out exactly what the shipment contains, and in what quantity.
• Packaging discrepancies. If the packaging appears rough, or damaged, or otherwise compromised, then it may suggest oversights on the part of the shipper. If they have been this shoddy in packing their goods, then who knows what else they have overlooked?
• Also look out for discrepancies in the declared contents and the weight, appearance, and labelling of the package. Odd odours may also indicate that the package may contain undeclared hazardous goods.

The Risks of Transporting Bulk Cargo

Certain bulk cargoes may also be at risk of spontaneous combustion or liquefaction, even if the materials themselves are not necessarily classed as dangerous goods.

Coal, iron ore fines, nickel ore, bauxite fines, and other bulk cargoes may pose a serious fire hazard if they are not correctly stored or managed while in transit. Documentation is important here too: Among other things, the moisture content of the bulk cargo must be certified prior to shipping, so as to ensure the correct precautions can be taken to prevent spontaneous combustion during a voyage.

What To Do If You Find Undeclared Goods In A Shipment

If you suspect there may be undeclared or misdeclared goods in a shipment, then you should refrain from taking things any further. Instead, contact the relevant authorities in your current location, who will advise you on your next steps.

You might be worrying about tight shipping deadlines, along with the added costs that delays could incur. But as we have seen, shipping undeclared goods could expose your ship, your crew, and the environment to some serious risks. You may also face some punishing fines, and you could even compromise your marine insurance.

Get The Specialist Marine Insurance You Need From James Hallam

Everard Insurance Broker is the specialist marine division of accredited Lloyd’s broker James Hallam Limited. We can help you secure comprehensive cover for shipping all kinds of dangerous goods, and we can advise you on best practice techniques for identifying and responding to potentially undeclared or misdeclared goods.

Learn more about our dedicated marine insurance services.

Hybrid and electric boats are becoming increasingly popular on UK waterways, with an annual increase of almost 7%.

In this post we will outline some key considerations and risks concerning hybrid and electric boats for marinas.

The Different Types of Hybrid and Electric Boats

Fully Electric Vessels
Fully electric vessels are entirely powered by onboard batteries. Usually, these are charged by connecting the boat to a dedicated electric charging point at a marina.

However, some fully electric boats can recharge themselves using onboard solar panels, meaning they are technically self-sufficient: They can have unlimited range in full sunshine.

Hybrid Boats
Hybrid boats will replace one or more of their onboard diesel engines with an electric motor, powered by a lithium-ion battery bank. These vessels will often include a thermal generator, which can recharge the batteries as the boat is running.

Usually, hybrid boats will rely on standard diesel propulsion for high speeds and long distances, before switching to electric propulsion at low revs and for short passages.

The Benefits of Hybrid and Electric Boats

Hybrid and electric boats are much cleaner and quieter than standard diesel powered vessels. A marina full of electric and hybrid boats will be:

• Almost silent
• Free from the strong odours
• Free from harmful emissions

Electric propulsion also offers sailors instant torque and a much tighter and smoother manoeuvrability. This could help reduce congestion and prevent collisions in your marina and throughout the surrounding waterways.

Considerations and Risks For Marinas

If you want to attract electric and hybrid boats to your marina, then you will have to provide dedicated charging stations. This can add pressure on marinas because:

• Charging stations can be expensive and difficult to install.
• Marinas will need to find a certified installer to ensure that your charging points satisfy all relevant regulations
• Marinas will need to commit to ongoing maintenance to ensure that everything stays in good working order.

Electric and hybrid boats may be cleaner and quieter than diesel boats, but they may present certain additional risks too. The onboard lithium-ion battery banks may carry a strong fire risk, and you will have to ensure that your marina is equipped with the means of handling electric fires.

 How Will Electric and Hybrid Boats Affect Your Marina Insurance?

It is unlikely that your current marina insurance policy will cover you for electric and hybrid boats. You will need specialist insurance to cover you for the increased risks and expenses associated with allowing electric and hybrid boats to use your marina, particularly if you provide dedicated charging points.

Maritime Insurance for Marinas and Boatyards

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited.

We can help you ensure you have the insurance you need to cover your marine and boatyard for electric and hybrid boats, along with any dedicated charging stations you plan to install. We can also provide essential risk management advice to help you ensure you are prepared to meet all of the risks associated with these greener and cleaner vessels.

Find out more about our dedicated marine insurance services.

A pirate attack is one of every ship operator’s worst nightmares. A single incident can endanger lives, disrupt your supply chain, and result in millions in losses.

In this post, we outline key security measures ships can implement to help prevent piracy at sea. Be sure to consult the International Maritime Organization (IMO) guidance on maritime security and piracy for further best practices.

Be sure to read the International Maritime Organization guidance on maritime security and piracy too.

What are the Risks of Piracy?

Pirate attacks may be less frequent now than they have been in previous decades. But piracy remains a real risk in certain waters, including parts of the Indian Ocean, the Strait of Malacca, and the Gulf of Guinea.

Whether it is a hijacking or an instance of armed robbery, any kind of pirate attack can jeopardise your operations in a number of ways:

• Threat to crew safety, with a possibility of kidnapping, ransom, or even murder.
• Severe operational delays as a result of hijacked, detained, or damaged vessels.
• Significant financial costs following ransom payments, rerouting expenses, damages to vessels, and potentially higher insurance premiums.

How Do Modern Pirates Operate?

Understanding modern piracy techniques is your first step to securing your ships against the threat of piracy:

• Pirates are rarely opportunistic. They will take the time to identify vulnerable targets which they know will offer maximum rewards with minimal resistance. So, if you do not implement measures to manage this threat, pirates may find out, and they may target you for this specific reason.
• Pirates tend to use small and fast vessels that allow them to approach their targets quickly and quietly.
• Pirates will attempt to take control of your ship by force. They will make use of guns, knives, or even crude improvised weapons.

• Once onboard, their goal may be to steal cargo, take hostages or hijack the vessel for ransom.

How To Prevent Piracy at Sea with Ship Security Measures

Below we will explore some measures that will help you prevent piracy at sea. Remember that pirates may run covert reconnaissance missions to identify vulnerable targets. So as well as helping you to protect your crew, your ship, and your cargo in the event of an attack, these measures may also act as a strong deterrent. 

1. Situational Awareness Training For Your Crew

Invest in specialist training for your crew on identifying and responding to any suspicious behaviour, or unidentified vessels. Everyone onboard should know what sort of things to look out for, and they should know how to report any potential threats. And you should have policies in place for how you act upon these reports.

Part of your response should be to relay distress signals with regional and international security organisations, and with other vessels in the area. This communication should go both ways, too. If vessels share real time information with each other, then pirates may have less of a chance to isolate vulnerable ships for attacks.

2. Onboard Armed Security

If you will be sailing through waters where there is a known risk of piracy, then it might be worth investing in armed security personnel for your voyage.

The mere presence of armed personnel can deter pirates from even attempting an attack. Remember: Pirates are rarely opportunistic, and they will actively seek out vulnerable targets. A vessel with onboard armed security is, by definition, not vulnerable.

If you are considering hiring armed security for your voyage, take the time to familiarise yourself with local and international laws and regulations, to ensure that everything is safe and above board.

3. Extra Security For Your Vessel

A pirate attack will invariably begin with an attempt to board your vessel. The right security systems can make it difficult, or even possible, for anyone to board your ship without your permission.

Razor wire or electric fences can deter pirates from attempting to board, while extra secure doors and windows can make it more difficult for them to take control should they manage to get onboard.

You could also ensure that your vessel has a safe room to which the crew can retreat if pirates do manage to board. This can help prevent the attack from escalating into a hostage situation. The safe room should be equipped with communication systems to allow you to send distress signals.

Are You Covered For The Risks of Piracy at Sea?

A single pirate attack can lead to substantial losses. If you operate in high-risk waters, you may face increased premiums for maritime insurance.

To safeguard your operations, consider specialist coverage, including:

• War Risk Insurance – Protects against losses from acts of war, terrorism, and piracy in designated high-risk zones.
• Kidnap & Ransom (K&R) Insurance – Covers ransom payments, crisis response, and related costs in the event of crew abduction.

Everard Insurance Brokers, the specialist marine division of accredited Lloyd’s broker James Hallam Limited, can help you secure comprehensive protection against piracy and related risks—so you and your crew can recover swiftly from any incident at sea.

Learn more about our dedicated marine insurance services.

The term “freight” can cause some confusion, as it can have different definitions in different contexts.

Freight Definitions

In the UK, “freight” can refer to the transport of goods by any means, whether it is road, rail, air, or sea. In the US, “freight” often refers particularly to the transport of goods across land, usually by trucks. The term “sea freight” or “ocean freight” might be used to specify the transport of goods over water.

Beyond this, there is a unique definition of “freight” used in certain marine insurance contracts.

In this post we will specify exactly what “freight” might mean in an insurance context, and explain why this distinction matters.

Freight and Marine Insurance

A marine insurance policy will typically include Hull and Machinery cover. This will cover a vessel, including its hull and machinery, for losses resulting from collisions, grounding, fire, and other risks.

In a Hull and Machinery Insurance policy, the term “freight” does not refer to the ship’s cargo, or to the cost of moving goods. Instead, “freight” refers to the earnings a shipowner expects to receive for transporting the goods. If the ship is lost or damaged, the shipowner could lose the ability to earn this freight.

Though Hull and Machinery Insurance policies will often cover freight, it is often necessary for shipowners to take out separate Freight Interest Insurance. In the event of an accident at sea, a dedicated policy will ensure that shipowners are covered not just for any damages to their vessel, but also for any loss of freight income.

Definition of ‘Freight’ in Insurance vs Logistics

In Hull and Machinery Insurance, the term “freight” refers to a shipowner’s anticipated earnings from the carriage of goods, rather than the goods themselves.

In the world of logistics, the term “freight” often refers to the cargo or the transport charges.

To avoid underinsurance and gaps in cover, it is important to understand this distinction. Check the wording of your Hull and Machinery Insurance policy carefully, to ensure that it covers you for “freight”. Otherwise, you could face significant financial losses if an incident at sea prevents the completion of a voyage.

The Importance of Maritime Insurance for Sea Freight

Freight insurance covers the risk of losing the right to collect freight charges due to insured perils such as total loss of the vessel or cargo, or circumstances preventing delivery.

Freight remains a vital component of marine insurance because:

• It protects carriers and freight forwarders against loss of income.
• It supports contractual obligations under trade terms like CFR and CIF, where freight is part of the sale price.
• It reflects the historical principle that marine insurance should safeguard all maritime interests—ship, cargo, and earnings.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited.

We can help you ensure you have the insurance you need to cover you for sea freight, whether you use an FCL, a LCL, or a RORO system.

Find out more about our dedicated marine insurance services.