02/25/2025 - Update 04/11/2025
Risks in the maritime transport of perishable goods: The Maersk Saltoro case
Key Strategies for Protecting Your Cargo in International Trade
Maritime transport is the backbone of global trade, yet it is not without risks. Delays, damages, and emergencies can result in millions in losses, especially when dealing with perishable goods.
A recent example is the case of the Maersk Saltoro vessel, whose mechanical breakdown caused a delay of nearly a month in the delivery of over 1,300 containers of Chilean cherries to China, resulting in losses exceeding 120 million dollars and ongoing legal and commercial ramifications.
This incident highlights the importance of understanding key concepts such as General Average, a principle of marine insurance that can significantly impact exporters' cargo. In this article, we analyze what happened with the Maersk Saltoro, how it was resolved, and what lessons it offers the industry.
The Maersk Saltoro Case: A Delay with Significant Consequences
The Maersk Saltoro departed from the port of San Antonio, Chile, on December 27, 2024, bound for China, carrying over 1,300 containers of cherries. The cargo was scheduled to arrive at Nansha port on January 20, 2025, just before the Chinese New Year, one of the peak demand seasons for this fruit.
However, on January 13, the vessel suffered a main engine breakdown near Micronesia, drifting for 23 days, preventing its timely arrival. This caused concern among exporters, as cherries have a limited shelf life, and any delay can impact their quality and market value.
Following repairs, the vessel resumed its voyage on February 4 and arrived at the port of Nansha on February 17, with a 28-day delay. Upon arrival, Chinese authorities inspected a sample of the cargo and found that 90% of the cherries showed signs of rot, mold, and deterioration, indicating they were unfit for commercialization. The destruction of the goods was estimated at an average cost of USD 18,000 per container, although destruction certificates are not issued in China, a key requirement for insurance companies.
Furthermore, the Maritime and Port Authority of Singapore initiated an investigation to determine the exact cause of the Maersk Saltoro's engine failure, with the aim of clarifying responsibilities and preventing future incidents of this magnitude.
Concurrently, the shipping line filed a petition before Chilean courts to limit its legal liability. The lawsuit commenced in March 2025 in the 5th Civil Court of Valparaíso, where the shipping company seeks to establish a limitation fund for approximately USD 16.4 million, representing about 12% of the value of the damaged cargo. Exporters and insurers are evaluating an appeal against this limitation, especially if it were proven that the vessel was not in optimal condition to set sail.
This type of incident does not only entail direct economic losses. In the case of the Maersk Saltoro, a long-term reputational impact is feared for Chilean fruit in the Chinese market, precisely during the most critical period: the Chinese New Year. Supply chain disruption can damage key commercial relationships.
Other Similar Cases in International Trade
- The Ever Given Case (2021): The renowned vessel that blocked the Suez Canal for six days incurred multi-million dollar costs and declared General Average, compelling cargo owners to contribute to salvage expenses.
- The MSC Flaminia Case (2012): An onboard fire resulted in the loss of multiple containers and led to a declaration of General Average, with costs impacting hundreds of exporting companies.
These examples demonstrate that issues in maritime transport are not isolated incidents and can occur at any time, severely impacting businesses reliant on international trade.
What is General Average and How Might it Have Affected This Case?
The Maersk Saltoro case illustrates the risks faced by exporters in maritime transport, but what would have happened if the situation had been even more severe?
This is where the concept of General Average comes into play, a key principle in maritime law that can generate additional costs for cargo owners.
Definition of General Average: General Average is a maritime transport rule stipulating that when extraordinary and deliberate actions are taken to save a vessel and its cargo from imminent peril, all cargo owners must contribute proportionally to the costs of that action.
This principle applies when the vessel's captain makes a critical decision involving an extraordinary sacrifice or expenditure, such as:
- Jettisoning cargo to stabilize the vessel during a storm.
- Towing the vessel to a safe port following a severe breakdown.
- Extinguishing an onboard fire, thereby damaging part of the cargo.
In this instance, the situation did not meet the threshold required to declare General Average, as no cargo was sacrificed, nor were extraordinary maneuvers performed to save the vessel. However, if the engine breakdown had necessitated:
- An emergency towing operation incurring significant costs.
- Significant route deviation to obtain assistance at an alternative port.
- Discharging and transshipping cargo to another vessel amidst adverse conditions.
Consequently, General Average could have been declared, necessitating financial contributions from all exporters with cargo aboard the vessel towards the salvage operation, irrespective of whether their merchandise sustained direct damage.
Lessons from the Maersk Saltoro Case: The Criticality of Cargo Insurance in Maritime Transport.
The Maersk Saltoro delay underscored the inherent fragility of supply chains and the imperative for efficient risk management. For exporters of perishable goods, securing appropriate insurance coverage, diversifying market exposure, and strategically planning logistics are paramount to mitigating the impact of unforeseen contingencies.
Beyond merely having a policy, it is essential to thoroughly review the coverage terms and exclusions. This case offers practical lessons that every exporting company should consider:
- Verify the contracted clauses, especially for refrigerated cargo: many policies exclude coverage for delays, and to activate claims for quality degradation, it is essential to have technical evidence such as temperature records.
- Differentiate between traditional cargo insurance and complementary products like Maersk Saltoro's Value Protect, which, while offering some protection, are not equivalent to an insurance policy and have very limited scope.
- Ensure the contract includes conditions for preservation and destruction at destination. This is crucial in ports where formal destruction certificates are not issued, which can complicate any claim attempt.
Being prepared for these events can make the difference between a total loss and efficient recovery. At Hanseatica, we understand the challenges of international trade and offer solutions designed to protect your cargo at every stage of the journey. Our Cargo Insurance covers everything from damages and losses to General Average, ensuring your business is not impacted by unforeseen events.
Is your cargo truly protected? At Hanseatica, we help you analyze your risks, design the optimal coverage, and prepare for any unforeseen circumstances. Let's talk today!
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