30th August 2022

Instances Where Marine Cargo Insurance Policies Would Be Beneficial

International shipping entails numerous risks of damage or loss of cargo, whether goods are transported by air, rail, road, or sea. Marine cargo insurance can help protect businesses against big losses for a relatively modest premium. In fact, it is not hard to point out many cases where marine cargo insurance would have lessened the financial burden of loss or damage at sea, or even prevented it entirely. So, what is marine cargo insurance, and how can it help mitigate freight loss?

Lost Containers

Containerised shipping is an increasingly popular type of transit for international freight. That is hardly surprising, given the efficiency of stowage and ease of transfer between container ships and road or rail modalities. However, recent years have also seen a rise in the number of containers lost at sea during bad weather, or stolen at port. Without the compensation afforded by a marine cargo insurance policy, you would be liable for the entire cost if such losses were to occur during your delivery.

Adverse Weather

It is not always possible to predict and avoid hurricanes and storms, and even less so to control them. Extreme weather at sea is not only dangerous to human life, but it can also lead to loss or damage of cargo and even to ships themselves. Marine cargo insurance is designed to mitigate such risks to goods in shipment, so that when severe weather events strike, it can help compensate for the financial losses that are incurred - whether through damage or delay.

'General Average'

'General average' is a principle that arises when cargo is voluntarily jettisoned or damaged in the event of an emergency at sea. When a ship's captain declares general average, it means that costs are expected to be borne proportionately by all parties in the transportation, regardless of whose cargo has been lost. On return to port, parties will be required to pay the full fee for their goods to be released. With marine cargo insurance, the bond is covered, and financial losses are reduced.

Cargo Theft

The theft of valuable cargo during shipping - often during transit from port side storage to the vessel - is sadly all too common. And, despite their comedic associations in some representations, pirates still roam the seas in some areas and present a real danger to mariners and their cargo. This is especially true in certain high traffic ocean areas which it may be impractical or uneconomical to avoid, such as the seas around the Horn of East Africa, and the busy shipping lanes that run through Indonesia and the South China Sea. While marine cargo insurance cannot return stolen goods, it can certainly help to lessen the costs arising from theft.

Marine Cargo Insurance Quotes From ManningUK

With the variety and specificity of the risks faced by those engaged in international shipping, it pays to choose an insurance broker who knows the sector well and can meet your specific needs. As a specialist in commercial insurance, ManningUK is happy to arrange marine cargo cover on a case-by-case basis to provide the best tailored insurance possible for any marine cargo requirements and scenarios. Please get in touch.

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