From a Claims Perspective: Egypt’s release of $8.5 billion in goods stuck at ports

By Richard Kamppari Baker, Claims Director, World Insurance
We have received some queries regarding cargo on hold within Egypt.  Apparently, USD 8.5 billion in goods were stuck at port since December because of a shortage in foreign currency.

The Central Bank of Egypt (CBE) announced cancelling the letter of credit system (LCs) as a requirement for imports. The requirement for the CBE to deal with LCs were primary blamed for this delay.

Whilst this will ease the problem, many shippers and receivers will be stuck with high storage and demurrage charges, which could lead to financial problems and abandonment.

We would recommend members to be careful to follow correct procedures in releasing and ensure all charges are collected before release.  In the event cargo may have perished because of this delay or is likely to remain uncleared from these incurred charges, please notify your insurers immediately.

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