On behalf of the entire IUMI community, I would like to extend our sincere sympathies to the people of Beirut and Lebanon at this very challenging time. Many people have died or have been injured; lost family members and loved ones; and suffered the destruction of their homes and livelihoods – our thoughts and prayers are with them all.
As the fire and explosion originated in a port and involved the storage of hazardous materials it is of great relevance to IUMI. The proper handling and storage of potentially dangerous goods, both at sea and in port, is a long-standing concern for marine underwriters; as is the growing accumulation of risk present in many port areas. The tragic incident at the Port of Beirut and the similar explosion suffered at the Port of Tianjin in 2015 clearly demonstrate a need for enhanced risk mitigation measures, which IUMI fully supports.
In our opinion, two points are important for future loss prevention measures: First, dangerous goods, such as ammonium nitrate, should be stored in smaller amounts and in such a way that, in a case of reaction, the potential impact is lessened. Second, the storage locations of dangerous goods such as oil, gas and hazardous chemicals should be distanced so that residential areas would not be affected in the event of an incident.
The IUMI community has significant experience in loss prevention and risk management associated with the carriage and storage of raw materials. IUMI will willingly work with all relevant parties to reduce the potential of such an incident reoccurring.
At this early stage it is not known how the incident will directly affect the marine insurance sector and speculation is not helpful. However, its impact has already extended well beyond those directly affected to include the wider residential and business communities. Those involved in logistics, cargoes, supply chains together with their service providers will be impacted; as will shippers, retailers, manufacturers and the general consumer. As a result, all parties, including IUMI and its members, must play their role in addressing the causes of this tragic incident.
Ends
Further information from:
Mike Elsom, Navigate PR (London)
T: +44 (0)20 3326 8464
Notes to editors:
The International Union of Marine Insurance (IUMI) represents 43 national and marine market insurance and reinsurance associations. Operating at the forefront of marine risk, it gives a unified voice to the global marine insurance market through effective representation and lobbying activities. As a forum for the exchange of ideas and best practice, IUMI works to raise standards across the industry and provides opportunities for education and the collection and publication of industry statistics. IUMI is headquartered in Hamburg and traces its roots back to 1874.
More information can be found at www.iumi.com
