Archive for the ‘News’ Category

Even the ‘bad guys’ need to have cargo insurance

Thursday, August 5th, 2010

The United Nations Security Council imposed wide financial sanctions on Iran. In order to push Iran to stop enriching uranium, the UN and the US requested that international financial institutions stop issuing cargo insurance for Iranian ships suspected of carrying weapons parts.

In order to prevent trading problems with the US and extensive paperwork, some of the most important cargo insurance companies from the West have been denying cargo insurance coverage to Iran, thus crippling its ability to ship and receive vital cargo. The sanctions penalize foreign companies that sell fuel and oil products to Tehran, so shipping companies and ports worldwide have been slowly reducing trading with Iran.  If companies deny cargo insurance coverage to ships carrying equipment, oil,  and other supplies, Iranian ships won’t be able to sail. According to Mohammad Rounaghi, deputy manager of Sea Pars, “Basically, most ports will refuse them entry if they are not covered for possible damages.”

Furthermore, in order to comply with the U.S. sanctions, Lloyd’s  and other important cargo insurers announced they won’t continue insuring  gasoline imports to Iran. Fuel suppliers in Europe and the Middle East are also stopping supplying gasoline for Iranian airplanes. BP also voided an agreement to supply fuel to Iran Air in Germany.

Under the new rules, shipping companies are also responsible for inspecting their transport and have to prove to the United States government that they were effectively inspected the cargo to make sure there are no ban products.  This will add a lot of work and paperwork to the transactions.

However, India and Russia declared they will continue negotiating with the Islamic republic.

Although the import of material has increased by 50 % in Iran, local business people worry about the future of trading with Iran. With the new shipping and tracking technology, it is more difficult to dodge the UN watch. The question is, how will goods and machinery get to Iran, and how will oil be shipped out if there are no ships?

Original Article By Thomas Erdbrink and Colum Lynch
Washington Post Foreign Service
July, 2010

Cargo Insurance: Things to Know

Tuesday, June 1st, 2010

Cargo insurance is needed because cargo in transit means cargo at risk. There are many insurance options for shippers seeking to protect their cargo against loss or damage, whether by accident, natural disaster, theft, war, mishandling, or spoilage.

  • The broadest form of cargo insurance coverage is called an “all-risk” policy. An all-risk policy insures approved general merchandise in the event of physical loss or damage from any external cause. Such policies cover new packaged goods to loss from breakage, pilferage, or damage to the goods themselves. However, shippers should be aware that there are numerous exclusions. These exclusions exist even to “all-risk” cargo insurance. Some of these exclusions include improper packing, abandonment of cargo, rejection of goods by customs, and losses caused by temperature or pressure changes. (as sometimes occurs in air shipments)
  • “Free of particular average” (FPA) coverage is limited coverage that usually applies to used merchandise, waste materials, and goods shipped that are subject to an on-deck bill of lading. It covers partial and total losses due to the sinking, stranding, burning, or collision of the vessels due to catastrophes on shore such as earthquake, derailment, pier collapse, fire, etc.
  • “With average” (WA) coverage extends FPA coverage to include the peril of bad weather. Both FPA and WA cargo insurance can also be extended to include theft and non-delivery.
  • “Warehouse to warehouse” protection insures goods from the time they leave the shipper’s warehouse until they reach the consignee’s warehouse, provided they are not removed from the normal course of transit by the insured. Shippers should beware that there are exceptions. They need to understand when in the shipping timeline a particular policy takes effect and when in the timeline such coverage ceases.
  • “Condition of average” (also called under insurance) is the term used when calculating a payout against a claim where the policy undervalues the sum insured. The history of average clauses began with cargo insurance. If part of a cargo shipment had to be thrown overboard during severe weather to save the ship, the owners of the remaining cargo would jointly and proportionately make good on the loss to the owner of the jettisoned cargo. This is commonly referred to as the “law of general average.” In the event of partial loss of a shipment, the amount paid against a claim will be in the same proportion as the value of the underinsurance. Under this system, the amount of the payout is equal to the claim amount x the sum insured / current value.

Scan your cargo policy quote carefully before choosing the best type of coverage for your goods. We hope that with this information, making a decision about cargo insurance will be much simpler. Get the best quotes from to save money while protecting your merchandise.

Cargo Insurance Information

Sunday, May 30th, 2010

Cargo Insurance – Information about what it is

Cargo insurance is an insurance policy that protects you in the event off damage or loss to your cargo while being transported. It is meant to reimburse you in the event your cargo is lost or damaged. The goods listed on a cargo insurance policy would be covered while being transported via air, sea or land. This would include parcel post handled by courier companies.

Coverage Options

These are your coverage options to consider:

  • Total loss cargo insurance – As the name indicates, this policy covers against total loss/catastrophe of entire shipment.
  • All Risk – this type of insurance protects you against damage to your goods from physical, external cause including partial damage, catastrophe and theft.

What is the right amount of cargo insurance to purchase?

Traditionally, the coverage needed is based on a simple equation. The standard is to cover the invoice costs including freight plus a certain percentage above to cover your estimated profit. Usually, this amount will range from 15%-25%. The policy limit is typically the biggest shipment expected with the added freight plus the percentage of advance added.

One of the nice things about these shipment protection is that it can be purchased on an “as needed-pay as you go” basis. This is because all shipments can be reported monthly to a company and then invoiced at the completion of that specific month.

The best way to receive competitively priced cargo insurance quotes is to fill out the the simple form on We’ll search for the best matching policy for your needs, and will contact you with customized information.  The price will be based on variables such as  country of origin and destination,  mode of transportation, type of container, and the type of merchandise being insured.  Request a quick  cargo insurance quote today. – helping you sleep better at night

Sunday, May 30th, 2010 mission is to help you find the most cost efficient and reliable way to ship your cargo. By filling out our simple lead form, we connect you with cargo insurance professionals. They will be able to guide you on exactly how much cargo insurance you need.

We provide our users quotes from multiple insurance carriers and agents. Our partners can provide cargo insurance quotes on both domestic and international cargo shipping.

We hope this is the first of many times you visit Our goal will always be to help you find the best cargo insurance so you can sleep soundly at night knowing that your cargo is properly insured. Worldwide Coverage

Cargo Insurance Costs – Things to consider

Sunday, May 30th, 2010

Cargo Insurance Costs for shipping 100,000 car parts via ocean liner or 500,000 pencils via air obviously will be different. However, there are a few things regarding costs to consider when shipping your merchandise domestically or internationally.

First, what method of transportation will be used to ship? The choices are numerous and include air, rail, truck and boat. Deciding which will be used to ship your goods will be the first factor in determining your cargo shipping insurance

Second, the time of year. This is something to consider because much of the world has specific times of the year where bad weather could affect  shipments. Heavy snow, rain storms, hurricanes have all affected shipments in the past. For example, If your goods are loaded on a plane, having to divert to another airport due to snow means more gas is used and more manpower hours to get to its final destination.

If you are reading this article and live in the Unites States, it is easy to assume that because our transportation infrastructure is solid, this is the case throughout the world. Sadly, this is not the case. Many developing nations could have unsafe or poor transportation. Unpaved roads, poorly built loading docks and high risk to the safety of your cargo are realities in numerous countries. If this is the case, your cargo insurance costs will be higher. How high your cargo insurance premiums will be needs to be factored in when deciding the best way to ship your goods.

If you are an importer, it would be a smart decision to visit to compare cargo insurance costs. Because cargo shipments can be very costly to ship, it is best to contact an experienced and reputable freight forwarder. And because the cost of cargo insurance can wary greatly, it is best to visit and select the best insurance company to do business with.

Consider These Points When Buying a Used Container

Sunday, May 30th, 2010

Like virtually anything you buy in life, if it is new it usually costs more. This is the case when purchasing a cargo shipping container. You can save a lot of money on your cargo shipments expenses by considering the purchase of a used shipping container. The better condition the cargo container is in, the more expensive a used one will cost.

It is important to keep these things in mind before purchasing a used container:

  • Not all containers are created equally- If you are shipping cargo by sea, you must make sure that the container you purchase is sea worthy and meets all international standards. Some containers are built to be transported on land and cannot stand up to the rigors of sea travel. A cargo shipment container that will be used on the sea must be waterproof and weather proof. Weatherproof is defined as being able to withstand the wind, movements and onslaught of all elements that are possible in the middle of the ocean.
  • The doors- Make sure that you carefully examine the strength of the doors. Specifically, make sure that the locking mechanisms on the doors and the levers function correctly and appear secure. If you plan on replacing the doors with new ones, keep this expense in mind when determining whether purchasing a new or used cargo shipping container makes sense.
  • The interior- Quite often, cargo containers have floors made of plywood. Over the lifetime of a container, these floors can be battered by rigors of sea travel. Also, make sure that there are no signs of animal or insect problems. It is possible that the container you buy may have been inactive for a period of time. This could cause unwelcome visitors to find a home in your container. It makes sense to have your shipping container de-loused by quarantine authorities.
  • The exterior- It is critically important that your cargo be shipped in a container that is rust-free. Examine both the inside and outside of the container. Look carefully as it is easy to miss signs of rust particularly near the top or bottom of the container. Quite often, rust will develop in the seams at the corners where tiny air holes remain from when the container was welded together.

Whether you ship your cargo in a new or used container, visit to find the best rates on cargo insurance.

Freight Insurance and Permit Required for your Cargo

Monday, May 24th, 2010

Freight insurance is required in most cases to ship your goods by truck or van. You want your shipping company to meet all the federal and state standards for road freight shipping. About 85% of all goods delivered in the United States are shipped by truck from ports and warehouses. Working with respected and trusted shipping agencies is crucial. While it is important to make sure you have your freight insurance needs covered, it also makes sense that you meet or verify your shipper’s permit regulations.

Here are the permit requirements for interstate shipping in the United States. Please note that intrastate shipping (shipping that does not leave a state’s borders) must comply with the regulations of each state.

  • Truck drivers must have a Commercial Driver’s License (CDL). The Motor Vehicle Safety Act of 1986 established standards on which each state must base its CDL testing on. This is so truckers do not have a license in more than one state at a time. Class A CDL allows drivers to haul any vehicle with a Gross Vehicle Weight Restriction (GVWR) of 26,001 pounds or more. Class B CDL allows for GVWR of 26,001 pounds or towing vehicles less than 10,000 pounds. Class C CDL covers anything not in the previous CDLs.
  • The vehicle must meet all of the standards set in place by the Federal Motor Carrier Safety Administration (FMCSA). This is a department within the Department of Transportation. (DOT). These requirements range from size and weight limits, emissions, noise emissions, safety standards, and the transportation of hazardous materials.

Listed below are the freight insurance requirements for interstate shipping within the Unites States (again, intrastate shipping will have different requirements depending on the state).

  • You must file the form known as the BMC-91X and the BMC-34 with the DOT.
  • The minimum cargo insurance liability required by the DOT is $750,000 in coverage for non-hazardous goods.
  • Hazardous materials require a minimum of $1,000,000 in cargo insurance coverage for those substances listed as the “least” hazardous.
  • The most hazardous substances require at least $5,000,000 in cargo insurance coverage.
  • The Carmack Amendment to the DOT regulations makes the shipping company liable for goods if they are lost or stolen, however that minimum coverage is only $5,000.
  • This is just a brief overview of the various federal regulations and cargo insurance requirements pertaining to interstate road freight hauling. This information can provide a backbone on which to begin researching your policy. Whether you are shipping your goods or providing a trucking cargo service, these regulations are important to remember. Use to pick the company that best meets your cargo shipping needs.

The Inchmaree Clause and how it protects Your Cargo

Monday, May 24th, 2010

In 1884, a ship containing extensive amounts of cargo called the Inchmaree suffered extensive cargo damage. This was not the result of a crash, a sinking ship, or even war-related damage. The cargo on the Inchmaree was damaged thanks to the breakdown of internal pumps, and the cargo was flooded and destroyed.

The owners of the cargo submitted claims to their insurance companies. However, a British court ruled that the accident was not caused by “perils of the sea” and therefore was not covered by any of the standard policies the cargo owners owned. As you can imagine, the cargo owners were devastated by this ruling. They applied pressure on cargo insurance policy issuers, resulting in the Inchmaree Clause being added to most marine cargo insurance policies. This clause states that any accidents that occur that are not related to “perils of the sea” but are directly related to the shipping of the cargo are indeed covered.

This means that in your marine cargo insurance policy, your coverage now includes damage or loss caused by the following:

  • Breakage of the ship’s drive shafts
  • Bursting of the ship’s boilers
  • Unseen hull defects
  • Unseen machinery or auxiliary equipment damage
  • Errors in navigation
  • Negligence on the part of the ship’s captain, officers, engineers, crew, pilots, etc.

Marine Cargo Insurance is critical to have when shipping your cargo across any body of water by ship. Keep in mind that most policy offerings are not typically regulated by local government agencies. Getting a marine cargo insurance quote requires more scrutiny than simply taking the cheapest policy offered.

When you are seeking marine cargo insurance quotes, you should verify that the policies offered include the Inchmaree Clause. The good news is that it is very unlikely that any policy offered today would not.

Another important detail when considering marine cargo insurance is the transfer of insurance and risk once the goods are delivered to the various endpoints. You need to make sure that your policy includes the risk that shifts to the ship at the loading port, as well as the point at which the insurance coverage and responsibility transfers at the depot, truck, plane, or train. It is critical to consider the entire path of the good when determining the best marine policy, and when getting your marine cargo insurance quote.

Finding the most complete coverage at the best price is what you need when it comes to marine cargo insurance quotes! Use to begin the process of finding the best insurance policy for your cargo.

The Last Contingency: War Risk Insurance for Marine Cargo

Monday, May 24th, 2010

Sending cargo by ship is a smart choice when your cargo needs to cross the oceans to reach your customers. Marine shipping is one of the most effective shipping methods available. While reviewing the cargo insurance quotes before selecting one, you likely believed that you have provided for every contingency. But what if something happens to your cargo due to an act of war? It is time to consider war risk insurance.

War risk insurance came into existence in 1914 when the United States Congress realized there was a need for it. The Treasury Department created the Bureau of War Risk Insurance to create and manage claims. This was updated in 1917 to create a life insurance program for merchant marines as well.

War risk did not stop with the end of the First or Second World War. As piracy issues continue to worsen in some geographic areas, war risk insurance for your cargo is even more critical than ever. It is important that you factor in the risk of war when you are getting your cargo insurance quotes.

If your cargo is traveling through waters considered to be high risk, war risk policies are critical. When your standard policy ends, the cargo war risk policy kicks in. In most cargo war risk insurance policies, most perils defined as “war” are covered. They include

hull breeches, ships being taken hostage by terrorists or pirates, and other issues.

War risk cargo insurance policies can remain in effect for brief periods. They can be canceled as quickly as with 48 hours notice. This allows for coverage in high risk areas with the flexibility to cancel once this risk is less.

War risk cargo insurance policies are regulated. It is necessary to verify the regulations and make sure that your cargo insurance quotes are meeting all of the regulations required.

If you are shipping goods through international waters, having a contingency insurance plan that includes cargo war risk insurance is a smart plan. Use and find the cargo insurance policy that is the best fit for you!

Planes, Trains & Trucks: A Cargo Insurance Snapshot

Monday, May 24th, 2010

You need to ship your cargo. Whether you are simply sending it across town or exporting it across the world, it is critical that your products get where they are going – and that they are protected along the way. With so many different shipping options available, it is important that you have all the information you need, including details about how to protect your goods with cargo insurance.

Cargo is defined as goods, products or materials carried by ship, truck or van, plane, or rail. Each method of transportation has its own benefits and cargo insurance requirements.

  • Shipping by sea – also called marine cargo – includes automobiles, break bulk, containers, and heavy lift cargo such like manufacturing equipment, large military equipment, and items such as heat exchangers or generators.
  • Shipping by air – airfreight – can include smaller pallets and packages, or even large containers called Unit Load Devices.
  • Shipping by train – rail freight – allows for the shipment of smaller pallet loads, as well as coal, steel, and even trash.
  • Shipping by truck or van covers elements of all of the above, and allows for the largest flexibility by location, but at the smallest volume.

If you need a quote for your cargo insurance, you need to have some very basic info available. You need to know what your cargo is, what the value of that cargo amounts to, how it will be packaged and protected for the trip. You also need to know the departure point and where it will be arriving. With this simple information, you can begin getting your quotes for cargo insurance.

When you are getting your cargo insurance quotes, you need to pay close attention to a few points. If you are seeking an “all risk” policy – basically, a policy that covers everything – do not assume that is enough. Even the best all risk policy usually includes a clause that states “except as otherwise provided.” Most exclusions are buried in the policy, in the section called “endorsements.” Read the language in the cargo policy choices before choosing. The last point to consider is that your cargo insurance policy covers the entire delivery – what is called “door to door” in cargo insurance terms. You do not want your cargo insurance policy to stop at the pier or the warehouse!

We hope that with this information, making a decision about your shipping needs and cargo insurance will be much simpler. worldwide coverage!