{"id":716,"date":"2013-04-01T14:35:08","date_gmt":"2013-04-01T19:35:08","guid":{"rendered":"http:\/\/supfrt.com\/news\/?p=716"},"modified":"2013-04-02T12:35:03","modified_gmt":"2013-04-02T17:35:03","slug":"why-shippers-should-insure-their-cargo","status":"publish","type":"post","link":"http:\/\/supfrt.com\/news\/2013\/04\/01\/why-shippers-should-insure-their-cargo\/","title":{"rendered":"Why shippers should insure their cargo."},"content":{"rendered":"

\"medium_108642328\"<\/a><\/b>Although you thought you packed your shipment correctly, loaded it carefully on the truck or container as soon as it left your dock it was out of your control. The carrier\u2019s goal is to deliver your cargo safely, but sometimes goods get damaged or worse –\u00a0lost in transit. When this happens what are you covered for? What would a carrier be obligated to pay for a freight claim without insurance? What happens if the vessel carrying your cargo is damaged in transit? Below is a brief outline of what is covered and why you should consider cargo insurance.<\/p>\n

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Air Freight<\/b><\/p>\n

For shipments by airfreight, the air carriers limit their liability under the Montreal Convention<\/a>. Air carriers will pay 19 SDR\u2019s <\/a>per kilogram unless a greater per kilogram monetary limit is provided in any applicable Convention or in the Carrier\u2019s tariffs or general conditions of carriage. This will only apply if you can prove the airline was responsible for the damage and it is on the shipper or forwarder to supply evidence it was the carriers fault. If the bill of lading or delivery receipt is not signed off as damaged, this can be almost impossible to mitigate.<\/b><\/p>\n

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Domestic Freight <\/b><\/p>\n

For domestic freight, each carrier typically has their own guidelines and rules for limited liability; but typically you will see up to .50 per pound with a maximum set by the carrier. Again it is completely on the shipper to prove the carrier was liable for damage and typically unless all documents and procedures are followed claims are often denied.<\/p>\n

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Ocean Freight <\/b><\/p>\n

For shipments by ocean freight whether LCL or FCL – although the forwarder may arrange the transport, it is the ocean carrier who bears the burden for loss or damage to your freight. The Carriage of Goods by Sea Act<\/a> (COGSA) controls the carrier\u2019s liability. Under the terms of this act shipping lines are only liable for $500 for each customary freight unit (CFU) which can be defined as a container or crate\/pallet. Again it is on the shipper to prove the carrier was responsible for the loss or damage and COGSA states all claims are still limited to the terms and conditions of the ocean bill of lading. If you have ever read the back of a bill of lading, you will see the carrier is only liable for losses they were specifically responsible for and under the Hague-Visby rules<\/a> there are seventeen circumstances under which the carrier cannot be held responsible. Examples of loss or damage that the carriers are not at fault for and will not pay any claims are as follows: (note this is not the complete list!)<\/p>\n