With the UAE being recognised as a hub for world trade it sees millions of dirhams of goods pass through the emirates daily. Dubai in particular, with its freezones and bustling ports, thrives on a buoyant import-export business employing thousands of people. This, however, isn’t without incident and there have been a number of fires and explosions that have interrupted onshore operations in the past year. It isn’t always plain-sailing for shipments either and sadly, it wasn’t for one UAE registered vessel, the Al Salmy 6 recently. It sailed from Al Mamriya Port in Dubai on March 15th bound for Iraq, but later encountered severe weather conditions in the Northern Gulf, and sunk. Despite the launch of a large rescue operation, tragically 3 of its crew were reported missing at sea and all its cargo of general goods and motor vehicles lost.
In such situations, Marine Insurance can be invaluable. A widely-available product in the UAE, most leading Insurers offering a range of policies covering both home and overseas activites. And surprisingly, Marine insurance doesn’t only cover shipments sent by sea: with cover extending to road, rail and air too. This means that traders can cover their sendings from source to supplier or shop, both domestically and internationally. Companies big and small alike can therefore benefit from such policies.
The Covid-19 pandemic which started in 202 saw a significant surge in the distribution industry. Borne out of restriction and necessity, online shopping came to the fore and later, despite the lifting of constraints on consumers, this trend has continued. Many have expressed a preference for purchasing remotely and the shift from less store shopping to more dealing via device, has resulted in an increase in shipments to and from the UAE and in turn greater delivery traffic presence to suppliers and direct consumers.
If you’re an import, export or distribution business, don’t be “all at sea” when it comes to covering your stock. Find out how Marine insurance can help can help your business, whether it’s emerging or established.