Panamanian port challenges

Ivan Serracin, assistant vice president/lawyer, at Oslo based law firm Skuld, wrote in a recent article that one of the main problems is that Panamanian ports are no strangers to cargo or vessel damage, which can cause substantial losses to shippers and insurance companies.

The trouble is that stevedoring companies, although inclined to assume overall responsibility for actual damages, have been reluctant to accept claims for consequential damages, even when terms have been agreed contractually beforehand.

One recent example involves containers sustaining damages being placed or carried onboard the railroad that connects the Balboa and Cristobal ports. Because sufficient controls had not be implemented by the ports or railroad company to monitor container handling, both placed the blame for damaged containers with each other. This resulted in the claimant suing both.

Mr Serracin told Port Strategy that Panamanian ports can do things to mitigate this type of problem though. “This can be achieved by employing competent shore people, providing them with training to develop their competence, as well as implementation of loss prevention guidelines or routines.”

He also pointed out that theft is another type of activity that is very common in Central American ports, but Panamanian ports are implementing security systems to help prevent employees from taking part in these illicit activities.

“Most ports have implemented systems to investigate any incidents that may involve their responsibility or liability. An early investigation, appointment of surveyors, close contact and cooperation with local authorities will always assist or facilitate the handling of legal proceedings or settlement of a claim,” Mr Serracin said.