Real solutions go through being “win-win” solutions in which cooperation between customers and suppliers is the only way to balance risk and business.
Erhardt Projects, with Igor Muñiz, has participated in the conference “Project Cargo: new risks and challenges” organized by Clyde&Co Lawyers
Throughout the day, the different commercial, political and natural risks that affect the Project Cargo sector in a post-Covid 19 world were analyzed.
The day was articulated in two panel discussion. In the first of them, the problem was addressed from the point of view of the planning and execution of project loads in the current context. The second panel was oriented towards insuring these new risks (DSU in the current transport context, strikes, replacement of merchandise and critical equipment, inflation and adjustments, etc.).
The summary of the day could well be summarized in that the sector has evolved in two years as much as in two decades. The reasons are none other than the events we are facing: a pandemic, a war, inflation, logistics congestion and a high cost of energy.
The first of panels was moderated by Javier Hernández-Valenciano from Clyde&Co and was attended by Igor Muñiz, CEO and head of APAC & MEATI at Erhardt Projects, Luis González, Global Industrial Projects & Energy Solutions EPC & Infrastructure Expert at Ceva Logistics and Roberto Moriana from DB Shencker (Compliance & Risk Iberia).
NEW CHALLENGES NEED WIN-WIN SOLUTIONS
Regarding the challenges facing the sector, the participants agreed that in this complex environment, “real” solutions are considered “win-win” solutions in which cooperation between customers and suppliers is the only way to balance risk and business.
In these times the risks are so enormous that the price factor takes a back seat and you have to be very aware of what you sign, what you accept and what you risk.
It is essential to have trusted partners with proven experience. And it is not easy at all in a sector that constantly struggles to retain specialized talent with extensive experience, another of the challenges to which the speakers referred.
The way of working has changed and now more than ever it is necessary to plan. “The usual should be long-term planning, the market is saying goodbye to operations from one day to the next.” Identifying and understanding each and every one of the possible risks in each of the links is the only way to operate today. In this sense, the shippers are adapting and measures are already being taken, such as, for example, the division of shipments to, in this way, diversify the risk.
They all agreed that another of the great challenges of the sector is digitization, key in planning, in the transparency of operations and in the prevention of risks that all project loads entail.
A sector that moves merchandise of such value can no longer continue working with mail chains in which it is difficult to follow the sequence and know who is who in each link of the supply chain.
In this sense, Igor Muñiz claimed “the need to all work in harmony with the same tool, with the same documentation and information for all”. “The digital supply chain provides visibility in operations, it is about working with all stakeholders with the same information to have the best possible visibility at all times”, something that Erhardt Projects is already doing with NETERH, its digital layer in the chain of supply.
The need to all work in harmony with the same tool, with the same documentation and information for all
The second panel programmed in the Conference, the current problems in the assurance of project cargo were addressed. Moderated by Enrique Navarro from Clyde&Co, Fernando Sáez from Willis and Gonzalo Palomero from Liberty participated.
The risk insurance of project cargo operations has undergone an important change, and where before the insurers and reinsurers disputed this type of contract, now they are stricter, they do not accept any operation and they also demand exhaustive information.
The panel concluded that also in the insurance sector the time to adjust prices is over. Where before there were several interested in listing, now there is not. “The risks are so enormous and reinsurers protect themselves so much that insurance brokers find themselves without the tools to find offers that cover the risks involved.”
Clyde & Co, organizer of the event, is a global law firm that works mainly in the insurance, transportation, energy, infrastructure, trade and raw materials sectors.