Freight Statistics and the Importance of Freight Insurance

According to the Bureau of Transportation Statistics which is update every 5 years, the movement of freight in the domestic and international trade during 2013 was 55 million tons of freight daily. And as the demand of freight transportation grows so does the concern for safety. Freight Insurance is an integral part of freight transportation.

Large trucks during 1990 to 2013 accounted for almost all freight transportation fatalities by 95.8%, and the majority of related highway fatalities involved passenger vehicles. Most hazardous material are transported by truck, and if there is an accident the damage is huge. About 2% of incidents in 2014 were accident related which composed 80.9% of all property damage.

This is just in trucking transportation so imagine the amount of damages and risks that take place during air transportation or ocean. Ramon USA (Ramon Inc.) offers the best coverages for your cargo during transit that will give you piece of mind. With the best rates and quality, we work with the best claim adjusters in the world with over 55 years of experience. Your claim is processed in just 7 days with 24-7 updates.

Written by Iris Arden (Ramon Inc.)

The Major Ports of the UK embrace Brexit

Brexit, British Exit from the European Union, is being embraced by the major ports of the United Kingdom. The Prime Minister of England believes that there would be greater opportunities for the United Kingdom “as an independent nation”. The ports that represent 75% of the US’s global trade supports the Prime Minister’s policy on the Brexit. This also includes leaving the customs union. The Prime Minister emphasizes how England will benefit by leaving the European Union because this would allow Britain to engage in new trade deals with other countries. Southampton which is the England’s number one export port “will play a key role in securing the future prosperity of” the UK. The port currently handles £40B exports per year with 90% of the cargo from other countries around the world which are outside of the European Union. The total cargo loads handled in this port amount to £75 billion.

The Department for Transport (DTF) of the UK is encouraging partners within the maritime sector to come up with new ideas to better secure, develop and grow the marine industry. Roger Hargreaves the Director of Maritime at DTF stated that in 2050 the marine industry would be most focused on the future of the ports and shipping. They are currently conducting a study that will soon be released that will convey the significance that the ports have. This will be one of the first times the government recognizes the importance the port has for the country and for the people.

With all your cargo shipping, please remember to contact us for your cargo insurance needs. We’d be glad to assist you.

By Iris Arden (Ramon Inc.)

Sources: https://www.worldcargonews.com/news/major-uk-ports-group-welcomes-upbeat-brexit-message-50374

Full Replacement Value and Cargo Liability Insurance

Understanding the difference between Freight Insurance and Freight Liability is a crucial part of the freight and/or logistics industry, especially in an unfortunate event that you need to process a claim. The questions you should be asking yourself is what is the covered by the liability, what is covered by the freight insurance (Full Replacement Value Called All risk that we offer), and what is the difference.

The key point here is to analyze what is the extent of the carrier’s liability for freight loss under the applicable law and/or coverage, and what is the extent of the carrier’s freight insurance protection for that liability.

For example, there are three types of coverage offered by Ramon Inc. One of the coverage is called ALL RISK. This policy covers ANY damages while in transit. This includes damages from physical external cause along with partial or total, theft and catastrophe. This means that if the goods are not covered by All Risk then the insured/shipper is relying solely on the carrier’s contingent liability policy for insurance coverage should there be damage or loss during transit. Since it is a liability policy, the carrier is protected by statue and subsequently limited on their liability to pay claims. This affects the level of individual contract of carriage which was entered by the shipper and carrier. If the shipper imposes any commercial pressure on the carrier, or if the carrier is guilty of gross negligence, or the transit is subject to the Carmack Convention for interstate shipments in the US, then the limited liability of the carrier may be challenged.

Please keep in mind that in case of a claim and relying upon the carrier’s cargo liability insurance, you will be faced with an expensive and timely process that will ultimately involve lawyers and added expenses that accrues. Usually in a claim case, a carrier’s limit of liability is only $1,500. Most of the time customers are lead to believe that the trucking insurance general liability of $100,000 covers their cargo for full replacement value. This is not the case. The $100,000 covers them for all the loads that they haul. Within the fine prints of the contract of carriage, they have a limit of liability of $1,500 per claim. Just like ocean vessels have $500.00 limit of liability per container even if the goods in the container are valued at $500,000. The same with all airlines, they have limit of liability per luggage and/or cargo they carry on-board.  Therefore, Ramon Inc. with more than 31 years of experience in the market strongly advises everyone within the industry to check all the details/information prior to booking cargo insurance with any company or relying on the trucking company’s cargo insurance policy. This policy is simply a mandatory requirement by the DOT for any trucking to operate, and it is very limited.

Please contact us today or get a quote here http://www.freightinsurancedirect.com

Written by Iris Arden (Ramon Inc.)

Freight Biosecurity Alert in New Zealand

In the Port of Auckland, New Zealand a biosecurity alert has been actioned after four ro-ro car carrier vessels were unable to land their cargo. All vessels on services from Japan were carrying new and used vehicles. These vessels didn’t realize that they weren’t just carrying the cargo but along with it the Brown Marmorated Stink Bug (BMSB). This is an insect in the family of the Pentatomidae that is native to China, Japan, the Koreas, and Taiwan.

The BMSB is one of the top five unwanted bugs in New Zealand. This insect is a serious agricultural pest that can readily cause damage to crops. They feed on a wide array of plants such as apples, apricots, Asian pears, cherries, tomatoes, soybeans, grapes, corn, and much more. For them to eat these fruits, they pierce the plant tissue and extract the plant fluids. With this type of eating, the plant loses all necessary fluids; this results in the deformation, destruction of the seeds and fruiting structures. It delays the plants maturation and increases vulnerability of the plant to harmful pathogens. Other common signs of the insect are pitting and scarring of the fruit, leaf destruction, and mealy texture of the harvested fruits and vegetables.

The Ministry for Primary Industries (MPI) of New Zealand announced that because of the heightened risk of the BMSB entering the country, machinery and vehicles that comply with the fumigation certifications will be discharged since the ports of New Zealand do not have any facilities for this type of fumigation. Because of this over 6,000 automobiles have been unable to enter Auckland, New Zealand.

There are several threats of risk that your goods can face during transit. Making sure that your cargo is insured is extremely important. In this scenario, the insect is threatening the agriculture of New Zealand, and is causing delivery delays. With the cargo ships in limbo, this increases the chances of risk of the cargo ship and its freight.

Contact us today for a free freight insurance quote.

By Iris Arden (Ramon Inc.)

Source: https://www.worldcargonews.com/news/biosecurity-alert-hits-auckland-auto-imports-49225

Mexico Ports & Freight

The Ministry of Transport and Communications (SCT) of Mexico provided the statistics of the Pacific coast ports. These ports generated a total of 4,324,051 TEU which is up by 9.8 from 2016. The leading port was Manzanillo which handled 2,830,370 TEU. This was a 9.8% increase. Lazaro Cárdenas generated 1,149,079 TEU which was an increase of 3% placing in it second. The third ranked port was Ensenada with 230, 185 TEU with a 20% growth. The ports located in Gulf of Mexico amounted to 2,051,87 TEU. This was a 17.6% increase.

Why has there been an increase of TEU in the ports of Mexico? Because Mexico’s foreign trade over the past 20 years continues to offer significant opportunities. Foreign trade is a large percentage of Mexico’s economy than any other large country in the world.

President Pena Nieto in 2013 invested USD $586 billion in the infrastructure of roads, airports, maritime ports and railways. The port system has 24 integrated port authorities covering more than 40 cargo and passenger ports on the country’s Pacific, Atlantic, and Gulf Coasts. In 2013, they invested $4 billion USD in the ports which included: new containers, passengers, and specialty terminal construction, ore, grain processing facilities, pier expansion, port modernization, new logistics clusters, and Trans-Isthmus Logistics Corridor.7857

With Mexico’s investment in the ports, the country’s GDP has increased trade with America. With the NAFTA agreement, Canada and Mexico are the two largest destinations for US exports. A major boost to the Mexican farm exports, auto manufacturing jobs, and productivity and consumer prices. The gross domestic product for Mexico in 2017 was $2.4 trillion. And the country is quickly becoming an emerging market.  Ramon Insurance insures over $10M in freight Mexico bound.

Written by Iris Arden (Ramon Inc.)

 

Sources: https://www.export.gov/article?id=Mexico-Transportation-Infrastructure-Equipment-and-Services

https://www.worldcargonews.com/news/box-record-for-mexico-49757

https://www.thebalance.com/mexico-s-economy-facts-opportunites-challenges-3306351