Cargo insurance is a complex subject that requires specialist knowledge. The Cargo is prone to being totally or partially damaged and it can happen at any time at the country of origin, during the journey or at the destination country. Statistics are nerve-jangling.
Cargo insurance is a necessary cost of business, including international trade, where cargo damages can cause colossal amounts. Lloyds of London has reported that on an average, one ship sinks every day.
Why Insure The Cargo
The Cargo inside the containers is prone to being totally or partially damaged and it can happen at any time at the country of origin, during the journey or at the destination country. Statistics are spine chilling. Every year, between 2,500 to 10,000 containers are lost in the Ocean. Inside the United States,
thousands of container trucks are involved in road accidents every year, causing deaths and damage to cargo and other property. At US Ports too, cargo damage is hardly a rare incident.
The ocean, air, road and rail carriers almost always have sound insurance coverages to protect the cargo against any damages, but these insurances exclude the shippers’ packing and labelling negligence, apart from the Acts of God, terrorism and war. It is not unusual with the shippers discovering to their horror that the carrier’s insurance company “found out” that the cargo damage was due to shippers’ negligence and hence excluded from the final settlement of the claim.
Take the Advice & Save Dollars
Businesses doing international trade may think that their logistics professionals know well the risk of cargo losses and damages, so they are relied upon to buy the cargos’ insurance wrap. But one needs to start winning every single time, and the right way forward is to get a smart 3 rd Party Logistics outfit, to provide free advice. While an expert 3PL company always maintains the utmost care in handling their clients’ cargo, there are inherent risks involved in transportation that may cause losses beyond their control.
Here are a few reasons for getting the best insurance advice from an experienced and professionally managed 3 rd Party Logistics company:
- They are the transportation experts and are in the best position of understanding the transportation process and how to minimize the transit risks. Should damage occur, they will have most of the relevant information needed to file a claim, which makes the process easier on their clients.
- Because of the volume of insurance handled, they can offer very competitive rates and coverage for most shipments. Additionally, because they work with a transportation insurance broker, they often have access to markets willing to provide coverage on “higher risk” commodities.
- The Importers or shippers will not have to handle any administrative issues dealing with insurance. The 3PL companies will take care of preparing certificates of insurance, mailing reports to the insurance company, and filing claims on their clients’ behalf. Their clients can concentrate on buying or selling their goods.
- Carriers limit their liability in the event of a loss. In fact, no carrier is obligated to pay for a loss that occurs beyond their control and is not directly caused by their negligence. Exporters and Importers can remove the burden of proof from the equation and insure their cargo against physical loss or damage, with the help of a specialist and efficiently managed 3PL company.
- The 3PL outfits help their client choose between the type of insurance coverages available, ranging from All-Risks to Specific-Risks coverages.
- The best for the last – all the above comes at a cost saving for their clients.
Drop TEU Global an email at email@example.com , or call us at +1 732-515-9040.
We will support you to determine your cargo damage risks and guide you to the best insurance solution at the most competitive rates.