Freelance Shipping

Cargo Insurance, Is It Really Necessary Or an Added Expense?

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What about Cargo Insurance

Generally, all methods of transport should have some sort of cargo insurance. When you are planning your shipments out of different origins it would be highly advised that the importer take out some insurance. As an industry operative we see cargo that has become damaged in transit. From Broken Glass, liquor, squished , torn and even weather damaged goods.  Protecting your assets must be a priority. An insurance broker usually can take out insurance for your goods that are moving between countries.

Its Fragile but I’m having a bad day

Just remember that the cargo is travelling through so many hands and while your shipping agent is doing the best to ensure that the process runs smoothly, nobody can guarantee if the person loading the container is having a bad day and does not seem to care about the fragile sticker or instructions to load safely.  We make an example from China. In China your goods will be moving from the factory, to the Depot for loading into the container if it’s an LCL and then onto the boat. From the boat it will travel all the way to the destination. From there the container is unloaded by the wharf handles and the terminal operators putting it in the designated holding areas. Container yards then organise transport to bring the container back to the yard on their trucks. From there they unpack the container and put your goods into an allocated section in their warehouse awaiting collection. There may be other peoples goods in the container. You can imagine how many people are physically handling your freight.

Overseas Insurance?

When you receive insurance, if there is any cargo damage you can always claim via your cargo insurance. Sometimes suppliers or overseas shipping agents offer insurance but how practical is this?. Can you really ask your supplier or somebody from overseas to reimburse you for the amount of the goods bought? How can you take action against them?. In most circumstances it’s very hard and costly. When you arrange your own insurance from an Australian Broker it’s just like car insurance. Hassle free and they do all the chasing off shore!.  The insurance is called “ goods in transit” insurance. You can have goods covered for as little as 50.00 AUD Australian for a 10,000 FOB value of cargo. That’s little expense to ensure your covered if your cargo is damaged. We can help you obtain this insurance so your cargo is secure. Don’t become the victim of damaged cargo and trying to claim through the depot’s / terminals. They will just say that the items were incorrectly packed and will void the claim.

Still not convinced?
Check out this link of what really occurs in the industry!  Convince Me More 

 

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