Is Your Cargo Covered for the Unexpected?
Importers/Exporters who rely on suppliers/customers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Without cargo insurance, the carrier’s liability is limited by law. Compensation is considerably lower than the actual costs because it does not give any consideration to the true value of the contents.
Here’s what a carrier’s standard cargo liability looks like:
- International or domestic air cargo is $20.00 per kilogram
- Domestic truck and rail transportation is $.50 per pound
- Ocean freight is $500 per shipping unit/container
Again, regardless of the value of content, that is all the carriers will pay if there is no coverage by cargo insurance.
We make every effort to oversee the safe movement of cargo, but there is always potential for loss or damage due to the perils of extreme weather, rough handling, theft and many other unforeseen occurrences. We strongly recommend protecting cargo by adding cargo insurance.
A marine insurance policy (cargo insurance) is written to include not only goods being shipped via ocean, but also goods to be shipped via air, truck, rail or other conveyance – including a combination of those modes through which domestic and international transit occurs, as well as warehouse receiving.
This can be a “Door-to-Door” coverage.
By taking control of the insurance arrangements, Page & Jones can ensure that our clients are fully covered, with adequate terms, valuation, and limits. Furthermore, if there is a claim, our clients can take comfort in knowing they are working with a U.S. insurance company, rather than making a claim with an overseas/foreign provider.
Need insurance? Click here for insurance election form.
Need a Customs bond? What type do you need? How much do you need?
Our bond team has the experience to answer your questions about Customs bonds and help you determine the right bond options for your needs.
If you are importing merchandise for commercial purposes into the United States, valued over $2,500, or commodity that is subject to requirements by other federal agencies (e.g. FDA), you must post a Customs bond. Types of bonds that might be necessary for your business are:
- Importer – Single Entry or Annual/Continuous
- Accelerated Drawback
- Custodian of Bonded Merchandise
- International Carrier
- Foreign Trade Zone
- Importer Security Filing (ISF)
To request more information, or to get a quote on the bond you need, contact us now!