Cargo Insurance
Only you can determine the level of risk you’re willing to accept in an international transaction. Don’t be misled into believing air, ocean, ground carriers, or warehousemen will make you whole in the event of a loss. In reality, carrier limits of liability only reimburse pennies on the dollar.
• International Air Shipments – The Warsaw Convention limits air carrier liability to the lesser of the cargo value or $9.07 per pound (Approx. $20 per kilogram).
• Ocean Freight Shipments – The Carriage of Goods by Sea Act (COGSA) limits recovery to $500.00 usd per package or customary freight unit (CFU) when the carrier/NVOCC is negligent. Note: While a ‘package’ is typically defined as the smallest unit of packaging declared on the bill of lading, the carrier’s application of the word ‘package’ could result in the shipping container itself being considered the smallest package. Historically the courts have upheld the application of the term ‘package’ in this manner resulting in a total ocean carrier liability of $500.00 usd.
• Motor Carrier Shipments – Most carriers typically limit their liability to a specific dollar value per pound in their tariffs; commonly $.50 cents per pound.
• Warehousemen / Railroads – Limits of Liability vary based on individual tariffs or warehouse receipts. The important thing to know is insurance coverage designed to mitigate risk and provide peace of mind is more affordable than you think. Our long standing relationship with Roanoke Trade Services, an industry leader in the cargo insurance arena and closely associated with Lloyds of London, allows us to provide the right amount of security.
Before your next shipment flies the friendly skies or sails the open water, pick up the phone and let us show you ho affordable peace of mind really can be.
