New Rule on Cargo is Shaking the Art World
Condensed from The New York Times - February 13, 2010
By Randy Kennedy

Collectors and dealers of fragile, phenomenally expensive art have never wanted for reasons to stay awake at night. A piece could plunge from the wall. Somebody could stumble into it, or step on it, or add a new color to it with a splash of red wine.

But those responsible for safeguarding art will soon have a new category of anxiety- the possibility that airline employees could open carefully crated works of art to search them the way checked baggage is sometimes searched now, poking around Picassos instead of sweaters and socks.

The Transportation Security Administration [TSA] has mandated that beginning on August 1, 2010, all items shipped as cargo on commercial passenger airlines [estimates are that as much as 20% of art shipped around the world moves this way] will have to go through TSA airline security screening.

Since February 2009, airlines have been required to screen half of the passenger-air cargo. But shippers say that several categories of cargo - including fine art, pharmaceuticals, high-tech equipment and perishable food - have, to date, almost always been passed over when airlines have discretion of searching certain cargo unless an explosives-residue test or bomb-sniffing dog give reason to do so.

News of the requirement began to spread. Many large museums have enrolled in a federal program that allows them to create secure screening facilities within their own buildings. In these rooms institutions can inspect art, crate it and mark it with special seals, locks and tape that will mean that the chances of it being rescreened by airline personnel are miniscule. Many large art shipping companies have also become certified to screen and securely pack art themselves.

Art shipping experts say that the burden of the new regulations will fall more heavily on galleries and private dealers than on museums. Galleries often put together shows much more quickly and strike last minute deals for buying and selling art, and that can mean that a piece of art in New York must be in Zurich or Beijing the next day.

Douglas Brittin - air cargo manager for TSA - said the likelihood of airline personnel needing to open art crates or other complex cargo would probably remain low even after the August inception date considering on any given day over 13,000 tons of cargo is transported by passenger airlines. But the new rules could lead to delayed shipments.


Side Note from IMUA

While many larger institutions and museums are likely to have their own insurance policy often covering transit exposures, and possibly third-party contractual relationships with professional art shipping companies, smaller galleries, private dealers and/or individuals often seek out trip transit coverage [one-time coverage]. And it is this latter group where underwriters need to be particularly diligent in understanding the nuances of the trip, who is doing the packing and the relationship to the impending TSA regulations.

To read the entire article please click on the following hyperlink -

http://www.nytimes.com/2010/02/13/arts/design/13transport.html


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