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State two situations that could cause coverage to be terminated before the cargo reaches its destination (i.e., at another port).

1 Answer

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Final answer:

Termination of coverage before cargo reaches its final destination can occur due to changes in market demand or port damage due to conflict or natural disasters.

Step-by-step explanation:

Two situations that could cause coverage to be terminated before the cargo reaches its destination, especially concerning maritime shipping, might include a change in market demands affecting destination ports and shipping routes, as well as damage to ports due to conflicts or natural disasters. For instance, a sudden shift in market demands could lead bulk carriers to change their destination mid-voyage to a different port where the demand is higher or more profitable. Similarly, if the main port in a conflict zone, such as Hodeidah in Yemen, suffers serious damage, shipments, including humanitarian aid, may need to be diverted or cancelled as the port cannot function to full capacity or at all, which disrupts the market for wheat flour and other essential commodities.

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