Freight / Marine Insurance
Nobody wants to think about the worst thing that could happen to their cargo on its journey to its final destination but things do happen.
June 2020 – A fire breaks out on the Hoegh Xiamen in Jacksonville Florida. It took 13 days to extinguish the fire. General Average (see below) is declared and all undamaged cargo owners pay a percentage of the salvage value. Those without insurance pay a cash deposit out of pocket in order to get release of their cargo.
From Wikipedia – “The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. For instance, should the crew jettison some cargo overboard to lighten the ship in a storm, the loss would be shared pro rata by both the carrier and the cargo-owners. In the exigencies of hazards faced at sea, crew members may have little time in which to determine precisely whose cargo they are jettisoning. Thus, to avoid quarreling that could waste valuable time, there arose the equitable practice whereby all the merchants whose cargo landed safely would be called on to contribute a portion, based upon a share or percentage, to the merchant or merchants whose goods had been tossed overboard to avert imminent peril. General average traces its origins in ancient maritime law, and the principle remains within the admiralty law of most countries.”
That’s just one recent example. Cargo could be damaged in transit where a forklift prong goes through the carton. Or cargo is left out in the rain and damaged. How about a refrigerated container being left unplugged? Containers shifting in transit and cargo damaged. If you can think of it, it’s happened.
Let us at least give you an insurance quote. It’s a purchase to give you peace of mind and protection of your most valuable assets because you never know.