Fortune Trans International Logistics suggests that you protect your investment in cargo with insurance to avoid any possible risk of total or partial damage while in transit.
We can give you insurance rates to protect your valuable merchandise in cargo. Insurance costs are separated from the cost of shipping.
Why we need a cargo insurance?
Why should I buy Cargo Insurance?
The simple answer is: "You should buy Cargo Insurance for peace of mind."
Cargo Insurance repays you for actual losses or the "Stated/Declared Value" of the goods, whichever is less, under the Terms & Conditions of the insurance you buy... just be sure you have insured the goods for their full value.
If you under-insure any claims settlement will be proportionate to the percentage of under-insuring. If you insure goods for half their real value, you will be reimbursed for half a claim.
Why should I pay extra for Cargo Insurance?
The cost of cargo insurance is only a small fraction of the total cost of packing, shipping and handling your goods.
Without insurance, you will receive almost nothing in the event of damage or loss.
Without Cargo Insurance you will only be paid very little for damage
If you move goods by truck or ocean, without cargo insurance you will be paid only $0.50 per Kilogram for any damaged goods, or paid a total of $500.00 for all goods in an ocean shipment.
By law, that is all truckers, railroads or ocean carriers are required to pay you.
Air shipments will be paid at either $20.00 per kilogram for losses or under a new scheme known as the Montreal Protocol, as much as $23.00 per kilo.
Even if your goods arrive safely, you could still be forced to pay for someone else's loss. "GENERAL AVERAGE"
This is a concept called "General Average," dating back well over 3,000 years.
Under General Average, those whose cargo survives a voyage are charged to repay the loss of another shipper whose cargo may have been jettisoned or lost for the protection of the vessel and the load remaining.
Any shipper whose cargo arrives intact when others' was lost may face a General Average charge.
EXAMPLE: You could ship $5000 worth of waste paper yet be faced with a $150,000 General Average claim for cargo lost by others. Institute Cargo Clauses Clauses C minimum insurance covers this.
If there is a General Average claim, you would be forced to post a Bond or Letter of Credit or Cash for the full $150,000 in the above example for the several years it takes the General Average claim to work its way through the courts unless you had cargo insurance.
What are ICC Clauses?
Institute Cargo Clauses are international treaties.
ICC Clauses wordings are accepted in more than 140 countries worldwide. Through long negotiations the participating countries have all agreed, in a legal sense, exactly what the wordings mean... that is... what is and is not covered.
Because international shipments may move across many borders, through many legal jurisdictions, using ICC Clauses lessens the chance of any misunderstandings or delays in payment in the event of a claim.
What does Cargo Insurance cover?
In very general terms, I CC Clauses A covers everything EXCEPT what it specifically excludes , such as War & Strikes.
If you purchase ICC A, War & Strikes coverage in combination you have what is commonly referred to as "Full Cover," or "All Risks."
The far more limited ICC Clauses C covers NOTHING EXCEPT what it specifically says it covers .
Limited ICC Clauses C DOES cover General Average claims or losses if the truck/railcar/aircraft or ships turn over, run aground or crash.
Limited ICC Clauses C DOES NOT pays for partial losses, damage, or theft unless that loss was caused by the "named perils." If the truck/plane/ship arrives fine, but your goods were damaged or stolen, you receive no insurance payment.
"All-Risk" Coverage
This policy insures approved general merchandise against risks of physical loss or damage from external causes. However, this policy does not cover all losses possible in the course of an international shipment.
Some perils typically not covered in All-Risk Policies
1 Improper packing
2 Abandonment of cargo
3 Rejection of goods by customs
4 Failure to pay or collect account
5 Inherent vice, (infestation or loss due to nature of the product itself)
6 Employee conversion or dishonesty
7 Losses due to delay or market loss
8 Goods subject to an on-deck bill of lading
9 Losses caused by temperature or pressure
10 Used goods
Free of Particular Average (FPA) Coverage
Sometimes, due to nature of products or shipping condition, only limited coverage can be obtained. Although FPA coverage is not as complete as "All-Risk Coverage", it is better than having no insurance at all.
Finally you make a decision to protect your shipment with insurance, please download, fill out, print and fax it back to us the form in the documentation form
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