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In a bustling, busy warehouse there is ample opportunity to make mistakes, no matter how careful staff members are. This is what happened to the team at Chua Shipping Pte just a few months ago during their busiest period of the year. The family-owned transport specialist was under contract to send a small load – two drums of industrial chemicals – from Singapore to a manufacturer on the Chinese Mainland. Despite many years of experience and a close team of well-trusted employees, a warehouse error in completing the order meant that incorrect (but very similar – looking) drums were shipped to the client.
Because of the similarity in the drums, the recipient failed to spot the mistake immediately, and the chemicals were put into production, causing a huge problem for the manufacturer, who received hundreds of complaints about product quality from end customers. An immediate global recall of product meant that the Chinese manufacturer had a clear and valid claim for loss of sales, recall costs and the potential loss of a hard- earned reputation as a provider of quality goods. Blame for these losses was placed squarely at the door of Chua Shipping.
Luckily, misdelivery resulting from the error outlined above is covered under the terms and conditions of the Honan and Chubb Multimodal Freight Liability policy, something that Chua Shipping had implemented earlier in the year.
The Multimodal Freight Liability policy from Honan and Chubb helped Chua Shipping from losing money, business relationships and a good night’s sleep. It can help protect your company too.
For more information, visit: www.honan.eom.sg/transport-logistics-insurance
