Full Replacement Value & 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 Infrastructure & Freight Insurance

Infrastructure-United-States-Under-Construction-600x345

Building a Stronger America project was released on February 12, 2018. The project emphasizes third main points which is to build fast, build for the people, and build for the future.

Building Fast:

The Administration proposes a $1.5 trillion investment to correct America’s crumbling infrastructure and prepare America for better opportunities. The goal would be to fix the infrastructure deficit if Congress approves this legislation. “We will fix the broken permit process, so America can become a global infrastructure leader.” An example they used was when the Empire State Building was constructed it only took a year. Now to get an approval for a highway it takes at least 10 years. The permitting and approval process needs to be less than two years.

Building for the People:

The Administration would like to remove from the Federal Government the decision making of the projects. They would like to put into States hands this decision. The plan would delegate $100 billion to the use of State, local, and private investment.

Building for the Future:

$50 billion would be dedicated to the rural areas of America to address unique infrastructure challenges, rebuilding and modernizing bridges, roads, water and wastewater assets, water resources, waterways, power generation assets, and broadband. $20 billion would spur competition around bold, innovative, and transformative infrastructure projects to improve future infrastructure. The proposal would be committed to generate new projects that would increase employment and boost the demand for labor.

What impacts would this project have on the freight industry? Would it increase the demand for freight and make the transportation for freight quicker? Would this be a positive impact on the livelihood of millions through the US? Not only will there be an increase in freight transport but the need to protect this freight while in transit will be an integral part of freight transport. Freight Insurance has always been the most import part when transporting freight. Freight Insurance minimizes the risk and freight insurance demand has increased by billions of dollars every year. Read about us http://www.freightinsurancedirect.com

Written by Iris Arden (Ramon Inc.)

THE LONGEST RAILWAY FREIGHT ROUTE IN THE WORLD

The first direct freight train service from China to the UK arrived in London on January 18 of 2017. The journey took 7,456-miles and 18 days to complete. The new train is considered the modern-day Silk Road. This new route has made London the 15th European city to have a railway route connection with China.Rail

Nine countries are connected during this route: China, Kazakhstan, Russia, Belarus, Poland, Germany, Belgium, France, and United Kingdom.  The journey is longer than Russia’s famous Trans-Siberian railway, but shorter than the China-Madrid link. With cheaper services in comparison to air transportation and quicker delivery than ocean transportation, the new train railway successfully brings a new opportunity for growth.

China has become one of the world’s biggest exporters amounting to over $2.28 trillion in 2015. With President’s Xi vision to a brighter future for China and the world, he’s work is just beginning. There are already plans for another 20 European rail freight routes which will increase their export potential even more.

Written by Iris Arden (Ramon Inc.)

Sources:

http://www.thehindu.com/news/international/first-direct-london-china-train-completes-12000-km-run-in-20-days/article18299736.ecehttp://money.cnn.com/2017/01/18/news/economy/china-uk-freight-train-yiwu-london/index.htmlhttp://www.independent.co.uk/news/uk/home-news/first-direct-train-china-to-uk-arrives-east-london-yiwu-city-barking-channel-tunnel-a7533726.htmlhttp://www.bbc.com/news/business-38654176