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.)
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.)
After the merger with UASC (United Arab Shipping Company), Hapag-Lloyd has boasted one of its youngest fleets in the cargo industry. The vessels will be dismantled accordingly to the environmental regulations and certified shipyards. The seven-year-old container ships that had a capacity of 4,101 TEU will be recycled in Turkey and in China. The shipyards within Turkey and China are certified to recycle ships in an environmentally friendly manner.
The COO of Hapag-Lloyd said that the recycling of these ships is part of the restructuring project of their fleet. In 2017, the company already had three older vessels from the former UASC fleet that was dismantled in an environmentally friendly manner.
Also, Hapag-Lloyd is now offering a service to the East Coast of Africa for the very first time. They are already demands to Mombasa and Daar-es-Salaam over Jeddah for onward transshipment and local distribution.
They are expecting in April to deploy four vessels each with a capacity of 1,200 TEU in the new East Africa Service. This will be a sole operation.
Senior Managing Director Region Middle East, Lars Christiansen, informed that this would a trade which their customers have wanted the company to serve for awhile now. And EAS will benefit from Hapag-Lloyd’s strong presence in the Middle East and connection to the global network.
No matter where you are located, Ramon Inc. is an International Insurance Brokerage that can provided you coverage anywhere in the world. Freight Insurance, Cargo Insurance, Shipping Insurance is how our clients find us. For more information www.freightinsurancedirect.com
Written by Iris Arden (Ramon Inc.)
New set of rules have been implemented by the US Transport Security Administration for five Muslim-majority nations. Egypt, Jordan, Qatar, Saudi Arabia, and the United Arab Emirates. The decision was made after intelligence gathered information indicating a potential bomb attack. The Air Cargo Advance Screening (ACAS) which before was voluntary, will now become mandatory for all flights departing from those countries.
Airlines that will be affected by these changes will need to inform US authorities of all intended cargo carrying in advance. Shipping records will be a huge help in pointing authorities towards anomalies.
Although all cargo for commercial flights undergo security screening, the new procedure will help identify certain items for secondary examination.
For example, there might be a $100 printer already available on the US market which was being shipped for the cost of $500 going to a country known for terrorist activity. This would draw the attention of the officials for further investigation.
As airlines prepare to now include the mandatory screening in their operations, officials are confident that the move will strengthen safety procedures and prevent any future attacks.
Written by Iris Arden (Ramon Inc.)