Why cargo owner needs insurance

When cargo loss or damage happens, a cargo owner might reasonably expect that a carrier who has custody of the cargo would reimburse the cargo owner for losses to their property, but this is not always the case. There are so many factors in negligence that could affect the general rules from the Steamship Lines or Airlines. A general steamship or Airline freight liability coverage for damage or loss is commonly limited to SDR667.67 or SDR2.00 per Kilo whichever is greater applies to Hague Visby Rules, or US$500 per 'customary shipping unit’ per COGSA Rules, which in many cases is considered a full ocean container. Air shipments are generally covered at SDR22.00 or US$30.6 per kilo. The best solution is comprehensive cargo insurance. One hundred & ten percent of the value of your shipment is the recommended coverage to protect not only your freight, but also ancillary charges that arise in moving it.Contact us to learn more details.

Cargo Insurance vs Steamship/Airline Freight Liability

Cargo Insurance Carrier Liability
Provides coverage from pick-up location to delivery location
Pays whether or not transportation provider's negligence is proven to have caused the loss.
Pays for losses that occur outside carrier's control.
Pays shipper for the full invoice value of cargo lost or damaged plus freight and other associated costs.
Pays cargo owner back for costs of efforts taken to minimize covered losses.