Reasons Importer or Exporter should consider insurance.
Please note that all transportation carriers limit their liability to amounts that simply won’t
Cover the full financial exposures involved with your shipment. For Example.

Limited Liabilities: Carriers, forwarders, brokers, warehousemen, truckers and logistic providers have limited
liabilities .      Ocean Freight: A carriers liability for cargo to and from the United States is limited under the Carriage of
Goods by Sea Act or COGSA. COGSA states that if liability is proven to be that of the carrier, the liability will be limited to $500 per package or
customary freight unit. Where COGSA does not apply, (Cargo not  loading or discharging at a US  port), The Hague/Visby Convention will apply,
limiting a carrier’s liability to two Special Drawing Rights (SDR) per kilo.  The SDR is a fluctuating international currency unit . It can be determined at
the International Monetary Fund (IMF) website at www.imf.org . As a point of reference on September 1, 2010, 1 SDR was equal to 1.514 USD.   Air
Freight: As an air freight forwarder,  liability is 19 SDR per kilo. Freight Forwarder or Customs House Broker: If is not issuing a House Air Waybill or a
House Ocean Bill of Lading, we are acting in the capacity of a freight forwarder. In these instances, our liability is limited to $50 per shipment. These
terms and conditions are established by the National Customs Broker and Forwarder’s Association of America (NCBFAA)  . US Property Broker: As a
property broker arranging US inland transportation, our liability is limited to 50 cents per pound, subject to a minimum of $50.00


Carrier’s Defenses: In addition to limiting liabilities, a carrier by law is permitted certain defenses known as the 17
Hague Defenses. Neither carrier nor the vessel shall be held responsible for loss or damage resulting from:
1. Act of neglect, or default of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship.
2. Fire, unless caused by the actual fault of the carrier
3. Perils, dangers and accidents of the sea or other navigable waters
4.  Acts of God
5. Acts of war
6. Acts of public enemies
7. Arrest or restraint of princes, rulers, or people or seizure under legal process
8. Quarantine restrictions
9. Act or omission of the shipper or owner of the goods, his agent or representative
10. Strikes, lockouts, stoppage or restraint of labor from whatever cause
11. Riots or civil commotions
12. Saving or attempting to save life or property at sea
13. Inherent vice, defect or quality of the goods
14. Insufficiency of packaging
15.  Insufficiency or inadequacy of marks
16. Latent defects not discoverable by due diligence
17. Any other cause arising without the actual fault and privity of the carrier, their agents and servants.


In general unless specifically stated freight quotes do not include insurance unless asked for in writing.
•        
The reason to consider insurance is :       Protection

The following financial exposures that make up the “Insured Value” of a shipment can be covered through transit insurance:

•         Cost of the goods.
•         Cost of insurance paid to cover the goods.
•         Cost of the freight and related charges.
Plus 10% to address unforeseen expenses that can arise if a loss occurs.

Some Key Points about insurance:
•        Transportation companies limit their liability.
•        In certain cases transportation companies have no liability at all.
¨        Acts of God.
¨        Acts of War.
¨        Strikes or riots
¨        Clean Delivery Receipt

Please note that all transportation carriers limit their liability to amounts that simply won’t
Cover the full financial exposures involved with your shipment. For Example.

•        Domestic Transportation: Carriers limit can be as low as $.50 cents per LB.
•        International Air Carries Liability limit is $20.00 per Kilo.
•        International Ocean Carriers limit is $500 per shipping unit.

•        
•        If you purchase insurance  locally- You will deal with a local representative if there is a  Claim – Not some person in another country.

One reason why you should purchase insurance. You will reduce man-hours spent in processing insurance paper work and claims processing.

What does All risk Insurance cover?
•        Physical loss or damage to the cargo
•        Water Damage
•        Contact with other cargo
•        Hook damage
•        Theft
•        Pilferage
•        Leakage
•        Steam of hold
•        Breakage
•        General Average
•        Non-delivery


Exceptions and Exclusions : Cargo interest must be aware that any of the following situations may constitute a denial of a claim. Following are
exceptions and exclusions which may apply and provided as a reason not to pay a claim.
Improper packing .
Abandonment of cargo
Rejection of goods by customs
Failure to pay collect accounts
Inherent vice (loss due to the nature of the cargo, i.e. steel will rust, fruit will spoil, etc)
Employee conversion of dishonesty
Cargo requiring an On Deck Bill of Lading

Failure to place carrier on notice for loss or damage in a timely manner.
In general: Ocean Freight Receipts must indicate damage or exception And a written claim should follow within three days.

Air Freight: Visual Damage – Receipts must indicate damage or exception (i.e. crushed boxes, rips, bent corners, etc) ,
and a written claim must follow in 7 days.  Concealed Damage - 14 Days from date of delivery. Again receipts should
indicate any indication (i.e. bent corners, dents, etc) ,and preliminary notice must be presented in 14 days.
Non - Delivery –Within 120 days of ETA of cargo






** Please note that Cargo Rates International LLC takes no legal or financial responsibility for
the use, content, or accuracy of information provided. It is the responsibility of the company
or individual using information to verify accuracy of information.)

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