Shipping Internationally Involves Risk

Any shipment of cargo involves risk of loss. Having appropriate cargo insurance can reduce financial loss while importing or exporting goods. Having the right marine cargo insurance protects against a loss of cargo while being transported and will indemnify the exporter or importer from loss in the event of an unexpected cargo incident.

Loss or Damage of Cargo

Shipping containers are lost at sea annually. Between the years 2008 and 2013, it was estimated that an estimated 546 containers were lost per year (not counting catastrophic events) as reported by the World Shipping Council. When those catastrophic events such as storms, explosions, shipwrecks, and pirate attacks were considered, it was estimated that 1,679 containers were lost at sea per year.

Cargo theft has been on the rise. The holidays represent an increase in theft risks, often due to identity theft and fictitious pickups. There is a concentration of theft that takes place between the months of September and December, with the biggest surge in October. Electronics and apparel represent around 23% of pre-Thanksgiving cargo thefts.

Even more that theft, cargo damage is common for multiple reasons. The most significant reasons for damage are bad stowage and shore error although improper packaging, overloading, wrong containers, inadequate ventilation and poor temperature management were also cause for damage.

Reduce Financial Exposure

By having marine cargo insurance, you can reduce your exposure to loss. When an exporter ships goods that have not yet been paid for, or an importer has already paid for the goods, if the cargo is lost or damaged in transit, there can be a substantial loss. If you are an exporter, you may be required to protect the buyer’s or bank’s interest by securing insurance. Not doing so can be seen as non-compliance and leave you exposed to financial loss and a legal battle. The right policy will protect you in these instances.

Release of Cargo

In the case of a General Average incident on a ship, you may need to post bond or a cash deposit in order to release your cargo even if your goods were not directly involved. In this case, your insurance company becomes responsible for the expedited release of your cargo.

If you are importing goods, be aware that the carrier’s liability can be limited. Even if liability has been established, the recovery may be small. When you are relying on the other party’s insurance, you are subject to those conditions, terms, valuations, and limits. Foreign insurers only add to the frustration when trying to work out a claim.

Having your own cargo insurance can alleviate these issues and offer peace of mind when shipping internationally. Cargo insurance can be designed to meet your individual needs when you are shipping cargo. Your broker or agent will be able to consider all the necessary coverage and will customize an appropriate policy.

Call 1-800-585-1665 today to request a quote from InsureAnyBoat.com