Ever Given. One Apus. MOL Comfort. To those not in the business of international shipping, they mean very little. To shippers, they are the names of some of the biggest cargo insurance claims in recent memory. For a variety of reasons, these ships led to hundreds of millions of dollars – or in the case of the Ever Given billions – in losses. A loss involving a container ship is notable because the losses are usually not contained to a single shipment, but to hundreds, thousands or tens of thousands of shipments.
As reported in The Loadstar, the number of container losses from the fall of 2020 through the spring of 2021 have led the World Shipping Council (WSC) to increase their survey frequency on container losses to annually instead of triennially. The story quotes the WSC as reporting 3,113 containers lost between 2020 and 2021, a 400% increase than the two preceding years.
Cargo losses still happen across other modes of transport – air, truck and rail.
Cargo insurance is the easiest and most important way a shipper can protect themselves from losses between origin and destination across multiple modes of transportation. The reason is that each mode of transportation has a limitation on their liability for a loss, and those limitations vary by mode. Worse, unless there is a blatantly obvious action that caused the loss (like a container washed or jettisoned overboard in a storm), the opportunity to pinpoint the cause of the loss will lead to finger pointing, denied responsibility and ultimately require expensive legal action on the part of a shipper whose cargo is uninsured.
At Alba, we encourage customers to carry cargo insurance and can offer it through our open marine cargo policy. Don’t let the word “marine” mislead you, though. This policy is issued and underwritten by companies who understand the complex liabilities and potential causes of loss or damage and are experienced in both making insured parties whole from their losses and subrogating to the underlying carriers to pursue compensation.
Cargo insurance rates are calculated using a number of factors including value, mode of transport, commodity, trade lane and type of packaging. Alba can offer competitive shipment-by-shipment rates or secure a commodity or shipper-specific rate for entire supply chains.
In the event of a claim, simply notify us of the loss and provide evidence including delivery orders with exceptions, photographs or noted concealed damage after cargo has been unloaded or unpacked.
Alba Wheels-Up can quickly and easily attach cargo insurance to shipments even while already in transit. The insured value is calculated based on the CIF (Cost, Insurance, Freight) + 10% overage. We insure, we issue a certificate and it is quickly and easily added to your invoice.
For more information about Alba’s cargo insurance offerings or to request a special rate or rates for your shipping needs, contact us today.
