HMM has declared general average after the 6 October fire on the HMM Platinum, which puts the cargo, not only the ship, at the centre of the claim. Containers on the 5,593 teu vessel cannot be forwarded or released until cargo owners provide salvage security and general average security, and uninsured cargo owners must post cash deposits1. The amounts are still undetermined1. For a buyer with goods on board, that means an unbudgeted payment or guarantee before delivery, on top of a delay that has already run about a month.
The fire broke out on 6 October while the ship was sailing from Kattupalli in India to Santos in Brazil1. It had left Kattupalli on 27 September, and the fire began off southern Madagascar3. On 9 November, AIS data placed the vessel at anchor about 29 km north-east of Durban, while Ngqura was also under consideration by Transnet1.
Check whether you are on that route. Indian exporters and Brazilian importers hold the cargo in this adjustment, and the reported load was about 2,300 boxes on a ship rated at 5,593 teu1. The Maritime Executive, citing claims consultants, put it at approximately 2,300 TEU, a different unit from the box count3.
What you will be asked to post
Budget for two separate securities: one for the salvage operation and one for general average, both required before your containers are forwarded or released1. The size is not yet known1. Korhi Average Adjusters & Surveyors is handling the adjustment, with Korhi and Richards Hogg Lindley responsible for collecting general average security1. Richards Hogg Lindley describes its work as the handling and adjustment of claims in general average4, and Korhi's site lists marine casualty investigation and marine claims settlement among its services5.
General average spreads the cost of saving a ship and its cargo across everyone who was saved, so undamaged boxes still contribute6. The security is what lets cargo move before that split is settled; the adjuster works out the final shares later1.
Insurance is the dividing line in the notice. Uninsured cargo owners are the group singled out for cash deposits, which points to insurers standing behind insured cargo while owners without cover must find the money themselves1. No figure has been published for either group1.
Who carries the cost under your Incoterm
Your sale terms decide whether the contribution lands on you. Under CFR and CIF the seller pays freight to the destination port, but delivery, the point when risk passes, happens at shipment7. So a fire at sea falls on the buyer's side of the line7.
CIF also fixes a default insurance level, Institute Cargo Clauses (C), with the parties free to agree higher cover7. If you rely on a seller's CIF policy, read the insurance clause and the insured value before assuming a general average demand will be met without you7.
On delivered terms the seller assumes risk to the named destination7. If you have paid the invoice but not taken delivery, answer two questions: where risk lay when the fire started, and who holds the documents the adjuster will deal with7.
Delay, and what it costs you
Delay is now the largest cost for cargo owners. A month after the fire the ship is still at anchor, the port of refuge is unresolved and there is no discharge timetable, while the extent of damage is unclear1. HMM told The Maritime Executive on 23 October that firefighting was "in the final dampening-down stage"3. It also said the vessel had tried to reach a South African port but stayed offshore because of adverse weather3.
Precedent says plan in months, not weeks. After the Maersk Honam fire in March 2018, cargo owners had to provide salvage security of 42.5% of cargo value plus an 11.5% deposit, 54% in total, before taking possession2. After the Ever Given grounding in 2021, the ship was held under court order in Egypt. The seizure delay ran more than 100 days, and the vessel reached Rotterdam on 29 July 20218.
Recovery: carrier, insurer, forwarder
Do not plan on a carrier claim. Where the Hague-Visby Rules apply, fire is one of the exemptions available to the carrier9, so your route is cargo insurance and the general average adjustment1.
Your forwarder should be your first call for paperwork. The security requirements add uncertainty for forwarders and their customers1. Ask for the adjuster notices in writing, the contacts for both collecting parties and the exact security wording1. Confirm whether your goods sit under your own marine policy or a group policy arranged by the forwarder. The notice targets uninsured cargo for cash deposits1, so that answer decides whether you are asked for cash or for a guarantee from an insurer.
Common questions
How much security will I have to post for HMM Platinum cargo?
No amount has been set yet1. The closest precedent is Maersk Honam, where the requirement came to 42.5% of cargo value in salvage security plus an 11.5% deposit, 54% in total2.
Can my containers move before the general average is adjusted?
No. You need both securities in place before cargo is forwarded or released1. No port of refuge has been confirmed, so there is no discharge plan either1. Until a port accepts the vessel, nobody can say when your boxes will be landed.
Does my cargo insurance cover the deposit?
The notice draws a line between insured and uninsured cargo, with cash deposits required from owners without cover1. Whether your policy responds depends on its terms. Send the adjuster's notice to your insurer and broker as soon as you get it, and ask them to confirm the guarantee they will issue1.