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A recent case reported by the International Transport Intermediaries Club (ITIC) underscores how a seemingly minor oversight can lead to significant costs. ITIC, a provider of professional indemnity insurance, settled a $135,000 claim resulting from a failure in internal communication.
The issue arose when a ship operating outside its regular liner schedule arranged special port calls. The shipowner had notified the liner agent accordingly, requesting full coordination for these non-standard calls. The agent made initial arrangements, including pilot scheduling and customs clearance, based on the vessel’s expected arrival.
However, prior to the ship’s arrival, the agent went on leave and handed over responsibilities to a substitute team. When the vessel was delayed by three days at the first port, the agency was informed. The team updated the arrangements at the first discharge port—but failed to adjust the pilot booking at the second port.
The error only became apparent when the ship reached the second port and no pilot was available. The owner incurred $135,000 in urgent service and delay fees and filed a claim against the agent’s insurer.
The agency admitted the oversight and submitted full documentation. “As there was no defense,” ITIC confirmed, it “honored the claim and reimbursed the full amount.”
“A mistake like this highlights the need for clear internal communication and robust handover procedures,” said Mark Brattman, Claims Director at ITIC. “Our goal is to help members learn from such incidents and strengthen their operational procedures.”
The case also illustrates how, despite digitalization, the shipping industry still heavily depends on diligent execution of fundamental tasks. A simple missed update led to operational disruption—and a substantial insurance payout.
A recent case reported by the International Transport Intermediaries Club (ITIC) underscores how a seemingly minor oversight can lead to significant costs. ITIC, a provider of professional indemnity insurance, settled a $135,000 claim resulting from a failure in internal communication.
The issue arose when a ship operating outside its regular liner schedule arranged special port calls. The shipowner had notified the liner agent accordingly, requesting full coordination for these non-standard calls. The agent made initial arrangements, including pilot scheduling and customs clearance, based on the vessel’s expected arrival.
However, prior to the ship’s arrival, the agent went on leave and handed over responsibilities to a substitute team. When the vessel was delayed by three days at the first port, the agency was informed. The team updated the arrangements at the first discharge port—but failed to adjust the pilot booking at the second port.
The error only became apparent when the ship reached the second port and no pilot was available. The owner incurred $135,000 in urgent service and delay fees and filed a claim against the agent’s insurer.
The agency admitted the oversight and submitted full documentation. “As there was no defense,” ITIC confirmed, it “honored the claim and reimbursed the full amount.”
“A mistake like this highlights the need for clear internal communication and robust handover procedures,” said Mark Brattman, Claims Director at ITIC. “Our goal is to help members learn from such incidents and strengthen their operational procedures.”
The case also illustrates how, despite digitalization, the shipping industry still heavily depends on diligent execution of fundamental tasks. A simple missed update led to operational disruption—and a substantial insurance payout.
