Exporters who fail to invest in cargo insurance coverage face a lot of monetary and legal risks. Those who ship goods via air and sea face several dangers including increased cargo theft, capsized containers at sea, and the impacts of natural disasters. Day-to-day issues such as rough handling can also lead to damaged cargo and nonpayment.
Because of this, investing in marine cargo insurance and land cargo insurance can protect exporters from having to shoulder their losses on their own. There is also often a minimum cargo insurance requirement depending on which countries an exporter operates.
With the rise of the pandemic, the rate of cargo theft increased by 1,075 from April 2019 to April 2020. Often, shippers are unable to recoup their losses when fake pickups occur during the weekend. It is also a possibility that employees may steal valuable cargo, causing further losses.
Ocean hazards also need to be taken into account during marine transport. If improperly packed, containers can fall off cargo ships if weather conditions are poor. The increased demand for goods during the pandemic has also lead to overcrowding, leading to more loss. There’s also the risk of capsizing or rolling of ocean vessels, leading to lost cargo.
Finally, an exporter who doesn’t have cargo insurance will have to cover losses that occur due to natural disasters. Storms, earthquakes, and tornados can lead to lost or damaged cargo in addition to delays that can heavily impact perishable goods.
Read on to learn more about the top marine cargo insurance providers and browse our other articles at Assured Standard today!
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.