Page 16: of Maritime Reporter Magazine (June 2013)

16 Maritime Reporter & Engineering News ? JUNE 2013  e Energy Flows  rough Us ®WWW.LUFKIN.COM The marine industry demands reliab le performance, extreme power and exceptional mechanical integrity from a propulsion system. Lufkin specializes in the design and manufacture of high-quality marine gearing, providing customers with the most cost-effective, dependable and timely solutions for critical propulsion applications. WORKBOATS WITH SINGLE ENGINE RATING FROM 1100-8200 HP CUSTOM MARINE APPLICATIONS WITH SINGLE ENGINE RATING UP TO 18,000 HP HEAVY DUTY WORKBOAT SOLUTIONS QUALITY MANAGEMENT SYSTEM CERTIFIED BY DNV ISO 9001:2008 INSURANCECargo Morphs in New Directions As Exports Climb to All-Time High After a decline during the re-cession years, U.S. export-ers today are pleased with the record-breaking value of overseas shipments. At the same time, they are learning to cope with shipping cargo that can be far different than the types of goods sold in the past. Looking back just a few years, exporters could often count on freight that was neatly contained and relatively impervious to long journeys. Today, they may be faced with goods that require special handling, or cargo with distinctive characteristics that must be taken into account during transit.Getting cargo from ?Point A to Point B?s has never been more challenging ? and shippers who are caught unprepared may see loss claims soar and their business reputation damaged. When it comes to moving unusual cargo, the best protection is to work closely with your insurance agent and logistics provider to identify an effective strategy for managing risk. The changing nature of cargo shipped from the U.S. is particularly evident in the U.S. Census Bureau?s statistics that track the annual value of exports. Over- all, 2012 ended at $1.55 trillion, an im-pressive 46% increase over the 2009 low-water mark for exports.Digging into the numbers, the traditional cargo leaders ? capital goods, automotive and consumer goods ? all made healthy comebacks. However, the growth in indus- trial supplies was particularly strong, ris-ing 68% off the 2009 low to account for roughly one-third of all exports in 2012.A number of factors are contributing to the recovery in export value, including a weak dollar that makes U.S. products more attractive to overseas markets. One of the most prominent factors has been the rise of global technology that allows even the smallest seller to connect with and ship their products to willing buy-ers around the world. While the impact of technology on the movement of goods can be seen across all categories of ex-ports, one example from the industrial supplies category illustrates both the op-portunity and the challenge for shippers: used equipment. Manufacturing and con-struction equipment that owners in the United States are replacing with newer, more efÞ cient models often have enough operational life left in them to whet the appetite of potential buyers in developing countries in Africa, Asia, Latin America and Eastern Europe. Rather than turning to the scrap metal market, these owners increasingly are striking deals and ship-ping their used equipment to new homes overseas. As a result, international trans-portation providers are seeing a range of industrial components, from complete manufacturing assembly lines to printing presses, heavy-duty cranes and textile machinery. This used cargo comes with a different array of risks that can pres- ent unexpected problems for buyers and sellers alike.A Mishap that Mushroomed While overseas transit for the major- ity of cargo is uneventful, insurance is usually obtained to cover physical dam-age from mishaps that may occur during the voyage. When cargo consists of new merchandise, the insured value is typical-ly easy to determine, and replacements are not difÞ cult to Þ nd if something goes wrong. The story can end differently when second-hand cargo is involved. One seller and insurer found this out the Brendan Dunican , Ocean Marine Regional Vice President, Travelers The changing nature of cargo shipped from the U.S. is particularly evident in the U.S. Census Bureau?s statistics. Overall, 2012 ended at $1.55 trillion, a 46% increase over the 2009 low-water mark for exports. $1.55TMR #6 (10-17).indd 16MR #6 (10-17).indd 165/30/2013 12:02:26 PM5/30/2013 12:02:26 PM