Who is responsible for the safety of your cargo?

Many company believe that if the cargo is traveling by a shipping line or a reliable carrier, it is already “safe”. Unfortunately, this is one of the most expensive myths in logistics.

Cargo transportation by sea is extremely attractive due to its low costs. In addition, the cargo travels continuously, and transportation takes place regardless of weather conditions or time of year. However, this method of cargo transportation is also associated with a certain risk, so we offer our customers additional cargo insurance.

We recommend to pay attention to the aspects of maritime law relevant to cargo transportation. For example, in the event of a general average, the shipowner pays only for the salvage of the ship. At that time, the fate of the cargo is the responsibility of the owner himself, and the costs of salvage work can reach as much as 20 percent. of the cargo value.

Logistics companies, in order to properly fulfill their obligations to customers, usually insure cargo with carrier civil liability insurance. However, you should not rely solely on the guarantees provided by this insurance. Third party liability insurance does not always compensate for losses related to damage or loss of cargo: the consequences caused by improper packaging or damage resulting from improper loading and securing of cargo are not considered insured events in the rules of this type of insurance, and insured events can only be compensated in part.

According to our head of sales Aušra Budginienė, the carrier’s liability is valid only when his fault is proven. And even in such a case, compensation is limited – it is calculated based on the weight of the cargo, not the real value. This means that if an expensive but light cargo is lost, the customer himself compensates for the losses.

The only reliable way to correctly manage risks is additional cargo insurance.

In order to ensure the quality of the services and provide an optimal package of cargo transportation services, we also offer our clients cargo insurance under ICC (A, B, C) conditions. This is a reliable solution that provides complete protection against sudden or unexpected events.

ICC (A, B, C) insurance is valid for all types of transport without exception, compensation for losses is calculated based on the value of the cargo, and insurance benefits are also provided in cases of partial damage or loss of cargo.

“In addition, it is much easier for a company providing logistics services to choose the most suitable insurance solution for the client. We also save the client’s time spent searching for an insurance company and completing the insurance procedure itself. We have all the necessary documents for the transported cargo on site. If the loss of cargo would harm your business, then insurance is not an option – it is a necessity,” emphasizes Aušra Budginienė.

It is wrong to think that such incidents only happen to “others”. A simple rule: protect what creates the value of your business.