International Shipping: Why Insuring Your Cargo Is Important
Safe and timely cargo delivery is the ultimate goal of all parties involved in the shipping industry. It doesn’t matter if the shipment’s final destination is just across Europe or on the other side of the world. Unforeseeable events during transit can come up despite the best planning efforts.
Events like a road-side collision, cargo theft at the warehouse, or even a natural event can lead you to file an insurance claim. This is why, if you want to protect against loss of freight or damage to the consignment, it’s best to invest in insurance.
MINIMIZE YOUR RISK
In case of potentially costly cargo loss or damage, freight insurance can offer a safety net. According to the National Cargo Security Council, global financial loss due to damaged freight is over $50 billion. This issue can significantly impact the bottom line of businesses. Carrier liability covers only $2.00 per pound of lost cargo in most cases. This means that if an incident occurs, you will regain just $2,000 worth of freight out of 1000 pounds of cargo.
Although unforeseen events don’t happen frequently, it’s comforting to know that you’ll be compensated more than the amount the carrier is legally responsible for. A full-value cargo insurance policy requires no deductibles for customers.
Full-value insurance is typically required for a few shipments. Shippers can benefit from this when shipping high-value or fragile items. A freight broker can manage the claims process for you by a freight broker to save time and resources.
INSURANCE CLAIM LAWS
Once an insurance claim has been filed, there’s a limited amount of time for it to be acknowledged by the carrier. It’s recommended to file the claim as soon as possible. Remember that each country has slightly different insurance laws.
A Dutch sea-going vessel with a gross registered tonnage of 300 requires indemnity insurance coverage. This means that in case of an accident, the weight of the goods will become the basis of the coverage, not the value of goods. A limitation of refunding can also be placed on the damages. It should be specified if your shipping company is absolved of insurance liability.
FAST CARGO AND FREIGHT SERVICES
Just like cargo insurance is essential, choosing the right freight forwarder is also crucial. Cargo Shipping International is an international freight forwarding company based in Rotterdam, the Netherlands.
We offer seamless global shipping via container, RoRo, and air freight to transport shipments to all corners of the world.
Reach out to us today to learn more about our services.