Do I need cargo insurance?
Posted: June 7, 2018
We always recommend our clients and customers insure their cargo. This recommendation is not based on the possibility that something may happen to your cargo. We recommend this because international shipping goes hand in hand with possible risks even though they are very unlikely. The steamship lines take very good care of your merchandise. Unfortunate circumstances do arise though with cargo ships being damaged or lossed.
"But isn't the carrier responsible for any losses of my cargo?"
The shipper sending the cargo to a specific destination often assumes that the carrier is responsible for transporting the cargo in perfect conditions, or compensation if the cargo is somehow damaged. However, the carriers cannot be held responsible for any damage or loss incurred by natural disasters. Natural disasters are unpredictable and although they don’t happen very often, the fact is that your goods could get damaged on board.
Relying on the coverage offered by the carrier or the supplier is not enough. Generally, the steamship lines do not carry cargo insurance, and by Federal Maritime Law (FMC regulations) are not liable for more than $500 per vehicle. We recommend that you purchase Marine insurance. The cost will depend on the value of your shipment.
We can help you with all of your insurance needs for international cargo shipping.
Sims, Waters & Associates is an ocean freight forwarder with industry-leading prices.
Sims, Waters & Associates is a licensed ocean freight forwarder since 1987. Our staff has over a hundred years of combined experience in the global freight shipping industry.