Acts of God and Your Wine Shipments

In the aftermath of Hurricane Harvey, and the catastrophic damage caused by the flooding and power outages, left many shipments of wine suffering reprehensible damage. Importers/ distributors warehouse’s and container ships out of the Port of Houston were all affected. Economic impact will be in the billions of dollars in infrastructure restoration and reform, plus not to mention the viability in commerce, and the disruption of traditional trade routes and employee impact.
It is true that insurance carriers carry the clause of “Acts of God” in their policy riders; but many factors can contribute to costly recovery of damaged inventory. In a scenario such as this, insurance carriers have to contend with being able to quickly assess the damage, which can be extremely difficult and dangerous in the first few days following such an event. With wide spread power outages, coupled with the hot Texas heat in August, the first factor affecting any wine would be heat damage. Secondly, water damage will destroy wine labels and thirdly, the impact of water flow at a high volume with certainly affect wine quality and can cause uncontrollable breakage in a warehouse environment.
Large distributor warehouses should have back up generators in advance of such an event. Container ships approaching the Port-of-Call will almost certainly be redirected to another port, but the ships already at berth could sustain substantial damage.