7 Reasons you will love about Cargo Insurance


You’re investing in your company every time you have a shipment. It’s surprising how many businesses don’t protect that investment with cargo insurance and pay a lot for it at the end.

Cargo insurance covers loss and/or damage of cargo while it is in transit between point A to point B. Many try to save a little money upfront by not insuring their cargo,  but here we´re going to show you why this is not a good idea and why  you will love to ensure your cargo:

1.Reduce exposure to financial loss

If you’re an exporter who has not been paid for the merchandise at the time of shipment, or an importer who has paid for all or part of the goods prior to receiving them, you run the risk of suffering a financial loss if the goods are lost or damaged during transport.

Whether your cargo is valued at $6,000USD or $6,000,000USD, that is your direct loss if your cargo is destroyed, lost or stolen. So,  if you can’t afford to lose it, insure it. Cargo insurance reduces exposure to cargo loss.

2. Coverage for limited carrier liability

The carriers, by law, are not responsible for many common causes of loss that occur in transport. And, even if they are liable, in the event of a loss carriers’ liability is limited. In most cases, you will only recover a small portion from the carrier. More information in our post Carrier Liability vs All Risk Cargo Insurance 

3. Cargo Insurance is flexible

Cargo insurance is not one size fits all. Different sizes of shippers and their commodities may have different needs in every sense. You don’t have to pass on cargo insurance because the ‘general policy’ doesn’t fit your needs. Why pay for coverage you don’t need?. If you currently buy cargo insurance and your vendor does not recognize these needs, you need a new vendor.


Reasons you will love about Cargo Insurance

So,  if you can’t afford to lose it, insure it. Cargo insurance reduces exposure to cargo loss. |Business photo created by rawpixel.com – www.freepik.com

4. Contractual Requirement

Your sales contract may obligate you to provide ocean cargo insurance to protect the buyer’s interest ( especially when selling goods CIP or CIF). Failure to do so cannot only subject you to financial loss if there is loss or damage to the cargo, but non-compliance with the terms of your contract with the buyer can lead to loss of sales and legal issues. 

Moreover, you must have control of the cargo insurance you are hiring. Not all insurers are created equal and not all the policies have the same coverage and can be more price-driven.

5. With Cargo insurance you will have someone else looking at your shipment.

Cargo insurance policies have conditions of insurance. Many of these conditions have the aim to ensure shipment risk is mitigated as much as possible.  A good cargo insurance vendor just doesn’t arrange the insurance, we want to hear about their commodity, the mode of transport, and how it’s packaged. In doing so we are checking out for your risk exposure. Although cargo insurance is not a true form of quality control, having one more layer of process looking for specific things doesn’t hurt.     

6. Cargo damage is too common, so you should notice that your cargo is under risk 

The most common damages are theft, storms, crushed containers, ships sinking, losing a container at sea, etc.This list can continue, with many more possible reasons. All these reasons can be considered a good one to get cargo insurance. 

Every day, a lot of shippers suffer from these events, and many of them regret their decision not to get insured.  If you want more information about this you can read this post. 

7. Cargo Insurance is not expensive

When compared to the overall costs in getting your commodity from point of origin to point to destination, cargo insurance is such a small fraction of the investment, it almost becomes invisible. If you would like to know an accurate cost of your next cargo insurance you can contact us for a quote.

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2021: A year of challenges for the supply chain

The COVID-19 pandemic has brought about unprecedented supply chain challenges, it continues disrupting world economies, even in countries that have the pandemic under control and business has to deal with a “new normal”.

Even though the pressure to get the economy back on track, ongoing uncertainties and supply chain challenges are still present. Systemic supply chain weaknesses were revealed, and while all suffered, companies that had not kept up with critical supply chain trends were the most affected. Looking ahead, as companies strive to reestablish supply lines and restart manufacturing, they should consider these supply chain challenges for 2021: 

Higher Demand Within E-Commerce

Demand will continue growing as more clients move towards e-commerce enabled platforms. The big challenge for shipping managers and forecasters is to improve organization throughout the chain network. Better forecasted sales, balancing the flow of supply and demand, improving product availability and shipping lines, and fewer delays and issues along the shipment chain. 

What’s Going Wrong to Decrease Efficiency?

The most successful shippers and freight forwarders usually have an efficient process that helps to reduce time, faster order issues, and avoid payment delays. It’s not just systems and technology that are important to supply chain efficiency, people are as well. Competent supply chain professionals are key to helping leverage its supply chain.

Prompt Replies to Customer Complaints

Another area of concern for shippers is the constant need to improve the relation with the customers. If achieved through improved communication, better freight management, responding to customer complaints effectively is a must. A loyal customer, along with a flowing stream of new customers, will ensure the company stays vital and beyond, s  this is a big supply chain challenge for 2021. 

Communication Failures Amount to Big Delays

One of the most important difficulties to improve for many supply chains is low communication. When information cannot be shared or processed quickly and accurately, things suddenly come to a standstill. As a result, delays are exacerbated and result in damage to the customer experience. Unsuitably communication failures can go unnoticed until the customer reports an issue. 

Single-source Amplified Supply Chain Risk

Many companies have centralized on single-sourcing strategies, possibly because this was perceived to be the lowest-cost way. Unfortunately, this also means companies are vulnerable if suppliers face deficit or production interruptions. In this order of ideas a single sourcing is risky and a guaranteed way to lose sales when disruption occurs. Instead, companies should focus on a risk mitigation approach.



2021: A year of challenges for the supply chain

It’s not just systems and technology that are important to supply chain efficiency, people are as well

People photo created by pressfoto – www.freepik.com


Slowed Digital Transformation

Another supply chain challenge for 2021. Access to data is important for effective decision-making. Unfortunately, many organizations have a mix of manual and digital systems that effectively trap information, but the decision-making is hampered by an incomplete picture. It’s very important that companies create ways to access supply chain data through the introduction of technologies that allow data to flow freely. Additionally, companies need systems that allow them to monitor, manage and observe the impacts of decisions.

Eliminate Traditional Inventory Strategies

Conventional inventory systems, don’t take into consideration unexpected events, nor is it agile and is often completely different from reality. An outside-in strategy to supply chain challenges that look at using streaming data to drive insights, determine market changes, and establish demand. Additionally, the next generation of advanced inventory optimization techniques can help manage unpredictability better than traditional inventory solutions. 

Lack of Update Data

It’s a common theme, the management often doesn’t have sufficient information at hand to make informed decisions. Additionally, supply chain complexity makes it difficult to evaluate various alternatives and scenarios to arrive at the best decision.

The answer to this dilemma lies in the use of modern optimization techniques, this form of supply chain modeling allows you to use the large volumes of structured and unstructured data available to the company to evaluate different scenarios, and determine the best way to overcome supply chain challenges and achieve supply chain aims.

Drive Flexibility

A flexible supply chain can adapt to new market needs and conditions quickly. It requires high levels of visibility and integration, but true flexibility also necessitates the capability to plan and re-plan in real-time. As the pandemic goes on and the global economy reopens, you can expect more types of very specific spikes in demand for products.

The top supply chain challenge for 2021

Keeping operations on track in spite of the coronavirus and all of its attendant disruptions. These disruptions have taken all shapes and sizes, from the obvious supply shortage that arose from an overreliance on single-sourcing in impacted areas. In this order of ideas, there is any number of smaller challenges that will define your success or failure of your business. Perhaps suddenly, these don’t look that different from the top challenges of years past—it’s just that the pandemic has shed new light on them and, in many cases, made them more on the ball.  

Historical inventory management strategies have been found wanting. And the lack of digitalization has meant that crucial information is hidden away in silos and obscure legacy systems. It’s absolutely crucial organizations map out their supply chains, in detail, to identify vulnerabilities and weaknesses. This data will allow fast and decisive action. 

Now you know the supply chain challenges for 2021, a reliable logistics partner, can help your network be more effective. In CARGO CARE SERVICES we will keep you informed about the situations which affect our sector and you can count on us to improve your supply chain.

Contact us today!


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Should I consider a 3PL for my business?


If you’re looking to save time and money on your supply chain, you’ll want to partner up with a business that focuses on doing specific processes really well.

A good 3PL can help you scale logistics up and down as needed, without requiring a significant investment in assets like vehicles or property. You are able to ship more orders during your busy season, and then go down your warehouse and your labor back down when you don’t need as much.

What does Third-party logistics do?

Third-party logistics (3PL) are companies that provide outsourced logistics to other companies, giving businesses the ability to focus on core functions. The 3PL service may be a single provider, such as transportation or warehouse storage, packaging, and order fulfillment. 3PLs can identify and fill the holes in your supply chain

These business partnerships allow shippers to more easily expand operations while increasing efficiency and reducing costs. 3PL providers can offer a variety of advantages as follows:

Do not waste time and money 

This is a major benefit that 3PL providers can offer to organizations. You don’t have to spend money on building warehousing or hiring additional employees, companies can reduce their costs drastically. 3PL companies not only save companies time and money in the short and long term.

Possibility to scale your business with flexible solutions 

3PL companies have the ability to scale space, labor, and transportation based on the variation of your inventory. This is the case when you’re dealing with season inventory or a new product launch. 

3PLs can help provide adequate space and resources between your busy and slow times, giving you maximum amounts of flexibility during any time of the year. So, when sales are down, there are no redundant investments and unutilized resources, you can customize your own solution depending on your needs. 



 Should I consider a 3PL for my business?

3PL companies have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. |Background photo created by pressfoto – www.freepik.com


Putting cost efficiency at the center of your business

3PL companies specialize in logistics and have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. So you can take advantage of this and minimize overhead costs. 

Shippers can avoid the expense of paying for unneeded warehouse space, infrastructure, equipment, utilities, and labor by only paying for what they use. This reduces risks and keeps costs proportional to needs ensures consistent margins and enables better growth planning.

Focus on your know-how  

3PLs will give your organization plenty of rope to focus on its core competencies instead of getting involved in non-core but critical functions. Your business can have the benefits of logistical expertise without investing in internal resources

Access to new markets 

3PL enables business growth by giving companies access to markets where they don’t have an established presence because they can have access to distribution centers and warehouses in various regions. Being able to manage inventory in a new market without having to spend money on warehousing, equipment, and labor can save money while giving them the opportunity to strategically position themselves to better serve their customers

An experienced 3PL provider: the best solution for your logistics needs

Companies actually become more efficient and save money in their supply chains by partnering with an experienced 3PL provider with an extensive network and warehouse locations. In this order of ideas, it’s really important to choose carefully your 3PL partner because it could be your company image with the customer.

If you’re looking for an experienced, dependable 3PL provider to handle all of your supply chain needs, in CARGO CARE SERVICES we can help you with your Warehousing and Packaging needs over all the US, we have 12 years of experience and a professional team who can assist you with your projects! 

Contact us today for more information!


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Major perils during freight transportation


Whether you are an importer, exporter, or freight forwarder this is a very important article that will show you how to prevent risks during freight transportation and avoid inconveniences with your CARGO INSURANCE policy and claims when they show up. On Cargo Insurance whether for domestic ground or international shipments there are some Major Perils during freight transportation that you should have into consideration.


Collision or Tipping of the Conveyance  


For truck transportation, your first tool is the Federal Motor Carrier Safety Administration’s (FMCSA) tool for shippers and 3PL’s (third party logistics) called Snapshot.  Snapshot is a free online tool that allows shippers to look up a carrier using the carrier’s USDOT number, MC/MX Number, or name to get a peek at the carrier’s safety record. The safety rating in this tool is a ‘satisfactory’ or ‘unsatisfactory’ with no letter or number grade. 


Even if a carrier has a ‘satisfactory’ rating, look at their numbers and compare them with other carriers of similar size and service. Pay attention to crashes, tows, and out of service numbers. If these numbers are considerably higher than other carriers of similar size and service, it should give you a red alert. Higher numbers could indicate careless operational practices.

So on all those news, we saw on a daily basis of cargo spilled onto highways that came to our mind immediately when we talked about collisions and related topics while you may think this threat is out of your control, it isn’t totally.




Even if a carrier has a ‘satisfactory’ rating, look at their numbers and compare them with other carriers of similar size and service. Pay attention to crashes, tows, and out of service numbers. |Road photo created by welcomia – www.freepik.com

Cargo Handling and Securement

This category refers to the way Cargo is handled, loaded and packed by the shipper, freight forwarder or whoever handled their own freight.

Keep in mind empty spaces are always bad. Whether within your palletized freight or around it, empty space leaves room for damage. Carton crush itself may not damage the freight, but it could start the pallet to fall apart and compromise the condition of the cargo.


Compound this by the pallet possibly getting stacked on by another pallet and both pallets may tip inside the conveyance or during handling. The best practice is to always build crates and care about the safety and protection of the freight. Since crating isn’t always practical and is more expensive than others, ensuring each carton is uniform in size, full, and laid out on the pallet besides shrink wrap and pallet banding is always a good option too. It depends of course on various factors such as the commodity, value, dimensions, weight, etc to establish the proper packaging.


The next empty space to be aware of and prevent is around the pallet. Typically the inner dimensions of a standard van trailer or container are larger than the dimensions of pallets side by side in the trailer and there is often space at the end of the trailer for movement. Empty space allows for pallets, crates or boxes to move and slide when in transport. 

The best answer is cardboard or inflatable dunnage placed in empty spaces throughout the trailer. The dunnage isn’t that expensive and does a great job of protecting your freight. In addition, if the trailers you load typically have space at the end of the trailer, ask your carriers to use block and brace materials to lock and secure at the end of the truck. 


LTL transportation presents special challenges for all parties involved attempting to reduce freight damages. LTL carriers take control of the freight at their trailer door reducing the amount of control shippers have over mitigating freight damages. Having a good, hard to damage, packaging on your freight becomes more important than ever. As a shipper you can also have the LTL company designate your freight ‘do not stack’ or ´fragile´ or ´handle with care´. This will help prevent damages in transit as well as heavy items being stacked on top of your pallet. 


Another weapon against damaged freight (and ‘lost’ freight) is collecting and using data on all losses for LTL freight. Most LTL companies don’t advertise their loss records and will give a vague answer if asked directly unless they are a shining example of freight protection for the industry. It’s up to you. 


Lastly, Truckload damage rates are less than LTL due to the cargo not being handled at cross docking locations and the carrier’s terminals along with the shipper get to load the freight. Less handling is almost always better and since you loaded it you can use the dunnage mentioned before. Additionally, truckload contract carriers often carry $100,000USD of cargo coverage while LTL often only offers cargo insurance by the pound based on the freight class which may not fully cover your freight value.

Major perlis during freight transportation

The highest cargo theft rates in the country are in California, Texas, Georgia, and New Jersey.|Background vector created by upklyak – www.freepik.com

Cargo Theft


Theft happens everywhere. Do not think we are safer in the USA than other places. On the Ranking list the United States is in the top five for cargo theft globally in the company of Mexico, Brazil, South Africa, and Russia. Many shippers don’t report thefts in fear of their insurer raising insurance premiums. The FBI estimates the dollar amount to be between $15 billion and $30 billion every year. The following are a few things to keep in mind.   

It is a misconception that only high-value freight gets stolen. As a matter of fact, due to sheer volume of shipments the commodity ‘food and drinks’ tops the list of stolen items. No one is immune to cargo theft. While it is true organized targeted thefts often focus on high value easily sold items, there are plenty of thefts that are crimes of opportunity.


Items such as laptops, cell phones, LCD TV’s, and other electronics and desirable theft commodities should be packaged in ‘blank’ packaging and the bill of lading should be as vague as possible. Bill of ladings and pallet labels stuck to the outside of pallets do not have to be specific for domestic transport. Cell phones and laptops can be stated as ‘miscellaneous electronics’ on the paperwork. Code numbers can be used for outer pallet labels with more specific manifests reserved for the inside of the pallet. If a thief of opportunity is poking around through the back of a trailer looking to steal several cartons, they may not wish to waste time and labor accessing cartons in a well wrapped and banded pallet. Although they will be sure to grab a carton that says ‘Apple or Samsung’ on it. 


Cargo thefts increase by up to 40% over holiday weekends. While we take some well-deserved time off and vacations criminals are looking for new opportunities.  The criminals know there will be as much, or more, unattended freight over extra-long weekends than there will at any time of year. If you have a choice, adjust your shipping schedule to have your freight delivering before the holiday or pick up after the holiday. 

For truckload long haul make sure your driver has enough fuel and driving hours left to get several hours away from pick up. Also ask your carrier if the trailer your freight will ride in will be parked in a secured terminal for any layovers. The best trailer lock is of no value if the doors are removed from the trailer or a thief has plenty of time and a few tools in a remote area.


Deserted warehouses will also be the prime targets. Double-checking proper function of all security cameras, door and window locks, and checking good working order of all barrier protection like fences and gate locks are a must. If criminals do get in, there is no need to help them once they are. It is wise to remove the keys from all material moving machinery such as forklifts and yard dogs. Padlock all trailers in the yard even if they are empty and lock as many interior thru doors as possible. One tool I used to employ when there was room was backing the trailers rear end to rear end making access to the trailer’s doors more difficult. I also tried having the drivers back up against the building wall but that didn’t go very well if the driver was inexperienced.


Bonus Track: The highest cargo theft rates in the country are in California, Texas, Georgia, and New Jersey.


This article is in no way a comprehensive guide to all methods to prevent freight losses. It can however be an indicator there are steps you can take for little or no cost to help reduce losses. CARGO CARE SERVICES can help you to reduce these major perlis during freight transportation with our insurance policies and assist with all the process in case of claims, we have 12 years of experience in the cargo insurance industry. 

Contact us today to advise you to reduce perils during freight transportation!

Thanks to our Friend Tom O’Malley for all the help on this article.
Freight Loss Data supplied by CargoNet and Freightwatch International.

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What is Cargo Insurance and does my shipment really need it?

In this post, we would like to take a deeper look at Cargo Insurance. Specifically, what is cargo insurance and if you as an importer/exporter or freight forwarder really need it for your shipments. We also highly recommend that you read our post entitled How much Cargo Insurance cost? first to continue with this topic. 

What is Cargo Insurance or Freight Insurance?

In a few words, Cargo insurance is a type of insurance that compensates a buyer or seller of goods against cargo damage or loss of cargo.


Despite the industry has been talking about it for years, there is still a feeling that insurance is unnecessary. Because it is an intangible benefit, one that can only be tested under adverse circumstances. 


As we mention in another post legally, all carriers must carry a minimum amount of insurance, known as carrier liability. But as we explain it provides very limited coverage and importers/exporters can request cargo insurance to protect their goods from loss, damage, or theft while in transit.

What could happen to my cargo?

As you may know, cargo is packed inside a CTU(Cargo Transport Unit) that goes through various motions while it is in transit ( road, rail or sea), we are going to explain these movements first to understand. 


Movement by Road or Rail: There are several forces acting on the cargo during transport caused by the movement of the truck or the rail wagon, the gradient of the road, in the second case vibration of the rails, the speed of movement or unexpected stops. These forces can cause the cargo to tip, slide, and move may cause damages, sliding and wandering of cargo which could seriously damage the merchandise. 

You have to be assured that the cargo must be secured sufficiently to withstand all these forces en route.


Movement by Air: This is less risky because cargo does not suffer a lot of movement only in normal conditions when the plane lands, takes off and sometimes when there is turbulence, and because it spends less time to arrive at its final destination. But These forces can cause the cargo to slide, and move. 


Movement by Sea: This is the worst movement a shipment may suffer because it can be moved in different ways. Each of these movements causes a different type of stress on the shipment and there is a high chance of it damaging the container and even coming out of the container.

In terms of rolling, ships have been recorded with rolling movements of up to 40 degrees on the rough seas and, imagine your cargo is moving inside the container with this!  

When you imagine these movements, you can imagine the stresses that the cargo inside the container suffers especially if it is not packed and secured properly. 


Cargo Insurance
Your cargo may suffer a lot of movements while it is in transit| Photo taken from Freepik

So, do I really need cargo insurance ?

You may wonder why we are talking about cargo damage instead of whether you really need cargo insurance? Because of claim statistics, cargo damage is the leading cause of cargo claims.


So, did you ever think about all of the above mentioned facts? Maybe these facts may not be at the top of your priorities because more often than not, your focus is on the business, the focus is on getting the goods to the buyer in time. 

The fact is that ANYTHING can happen to your cargo while it is in transit in short or long distances, including being damaged or stolen whether you like it or not. 


On the other hand, the buyer and seller have to have a correct interpretation of the Incoterms chosen could lull you into thinking that the other person has insured the goods or it is the other person’s responsibility to insure the goods, so as a freight forwarder you have to advise your customer to have all this clear. 


If your cargo is not covered sufficiently by insurance and cargo damage or total loss happens due to any of the above movements, you as the buyer or seller will perceive losses. How would that affect your bottom line?


So,the answer to our question is YES, CERTAINLY YOU REALLY NEED CARGO INSURANCE. In your own interest and the interest of your business, you need to ensure that your cargo is sufficiently covered by cargo insurance.

The business of packing and securing the goods is left to someone else (3pl) to handle, that’s why CARGO CARE SERVICES is here to help. We can assist you with both matters; Cargo Insurance with ALL RISK coverage, door to door, nil deductible and a Properly Packing and Crating of your goods before shipping it.  


Also if you want help to know which cargo insurance is for you and fully understand your actual policy and make sure you are protected. 

So do not hesitate and contact us today ! 

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How to manage your cargo during the COVID-19 outbreak

Many months have passed since the COVID-19 outbreak started, every aspect of our living has been changed to preserve our safety, but also, to give us the suitable conditions to continue with our normal basis.


Governors, following the recommendations of the World Health Organization (WHO), have developed severalconditions and regulation to stop the spreading of the virus, but also to allow people to do their jobs in the safest way possible.


Speaking of the cargo industry, the lockdowns and movement restriction have affected the entire supply chain, causing massive losses for the shippers. The new challenge facing the cargo industry is to continue with the work to minimize these losses, while protecting people’s lives.


It could take months or years to normalize the situation, but for now we must adapt to the new way of living. In this article, we want to give you some advice on how to manage your cargo during the COVID-19 outbreak.

Keep in mind the state of your cargo

As we said before, the entire cargo industry supply chain has been affected by the outbreak, so it is important to investigate the state of your cargo and verify if it is in a good condition.

If your cargo is in storage, you need to consult the general state of the warehouse: if the protection system is operative, the fire and anti-intrusion alarms are operative and if the humidity and temperature levels are optimal to your goods. If your merchandise is perishable, you need to be extra careful with the correct store management of your goods to prevent its deterioration and a potential loss.

With good hygiene and disinfection plan, you can return to your work place | Photo taken from Freepik

Consult the transportation

With the lockdowns of the countries, there have been a lot of delays in the shipment schedule, increasing the cost of storage and the potential damage of accumulation cargo on the warehouse. On the other hand, some shippers offer you the possibility of deviation as an alternative to accomplish the shipment schedule.

Evaluate these two scenarios and decide what benefits you prefer and minimize the potential of a loss. Whether you want to maintain your goods store or take the alternative route to complete the shipment, consult your cargo insurer about the coverage that your goods have.

Implement a good hygiene and disinfection plan

To prevent the spreading of the virus on the cargo industry, every step of the supply chain need to follow a serial of hygiene and disinfection plan. The WHO gives us some recommendations that we must follow to protect yourself and others.

  • The use of masks is vital to stop the speeding of the virus.
  • Wash your hands with soap and water every 3 hours, when there is visible dirt or when you touch a surface.
  • Disinfect all your work implements with at least 60% alcohol.
  • If you receive your cargo, perform a disinfection plan on every item. Later on disinfect the workplace and finally yourself.
  • As a worker, if you feel sick, stay at home.

Communication is a must to successfully reactivate the economy, consult to your freight forwarder and cargo insurer about the state of your cargo and some recommendation to protect it. In Cargo Care Services we constantly monitor the outbreak situation and we help you to prevent any damages or losses that may affect you.

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How much Cargo Insurance cost?

The aim of cargo insurance is to cover your goods against damages or losses which can occur from the beginning to the end of the transportation process just for the payment of certain insurance premium, but how much would it really cost?


The answer may not be that simple as give you a value, because there are many factors that affect the final cost of cargo insurance but in this blog we want to give you all the aspects to keep in mind to define the cost of freight insurance..

What are the factors that affect the cargo insurance cost?

There are many factors that affect the cargo insurance cost, exporters and importers need to understand that there are a lot of risks during the shipping process, and you have to be advised for a broker or insurance company who can understand your needs and offer you a insurance policy that protects your cargo and your investment.

One of the factors that affect the cargo insurance cost is the value of the goods itself, of course, you are protecting your investment, so it’s the main factor to be considered.

The origin and destination points of your shipment are also one of the factors that affect the cargo insurance cost: the more traveled distance the more risks your cargo affront and the more coverage it needs.

Speaking of shipment, the transportation method used to your shipment affects the cargo insurance cost, especially the ocean shipments, that are more expensive than air or truck shipments; due to the risks and time that the cargoes are exposed.

Another factor that affects the cargo insurance cost is the rate of theft of your goods. There are some goods that are catalogued as “high-risk for theft” items that are so valuable that many burglars want to steal, like computers or medicine; meanwhile, others that are catalogue as “low-risk for theft” even though these items can be stolen, are not so frequent.

There are many factors that affect the cost of cargo insurance. | Photo taken from Freepik

The list of factor can continue, so give you an exact value it very difficult, insurance company and broker examine all these items and make the calculation to give you an accurate quote of your cargo insurance.

Find the best company who can ensure your cargo

You can find many options in the market, but you must find a company that gives you the correct information about exclusions and cover, so you don’t have headaches after a claim shows up.

In Cargo Care Services we have a team with more than 12 years of experience, we give full customer support, either if your shipment is domestic or international. We are backed by a worldwide network of business partners that will assist our customers immediately and face any situation to ensure the process will be done correctly and quickly. Our policies for new general cargo are “all-risk” coverage door to door and non-deductible for new merchandise.

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Carrier Liability vs All Risk Cargo Insurance

As we mentioned before, cargo transportation is one of the main commercial activities in the world, it requires a lot of preparation, experience and a good logistic team behind to successfully accomplish each shipment.

But, as we know, nothing can be perfect. Even the most prepared shippers and brokers can encounter adversities that result in damages or losses for the cargo. So it is always recommended to have insurance that covers you and your customers assets from its consequences.

If you regularly import or export goods around the world, you may be familiarized with terms as “Carriers liability” and “All Risk” cargo insurance, but did you know everything about these two options?? So we are here for you. In this blog, we want to talk about carrier liability vs. all-risk cargo insurance and which is the better option for you.

What is carrier liability?


Legally, each carrier offer you a minimal amount of coverage for your shipment. | Photo taken from Freepik

Carrier liability is a minimal amount of insurance that legally each carrier need to offer in case cargo suffers damage or losses. You probably think “oh so there is no problem, my cargo is safe and sound, we have the carrier liability”. Well, it is more complicated than that!

Carrier liability has limitations in certain instances when the damage is due to an act of God (weather related), or act of the shipper (improper packaging or loading).  In these two cases, the carrier cannot be at fault.

Carriers are required to pay only if they are proven to be responsible for causing the loss or damages and the amount to be paid is very restrictive, for the most part, carrier liability covers up to a certain dollar amount per pound and it also varies depending on the unit quantity and commodity type (freight class).

Speaking of payments, the refund by carrier liability as we said before is less, never expect to recover all the cargo value. Every carrier has their own policies and carrier liability, the restrictions and refund are stipulated on their contracts.

What is All-risk cargo insurance?


This insurance is the best known and preferred choice among importers and exporters | Photo taken from Freepik

“All-Risk” coverage is the most popular and comprehensive form of coverage for cargo. All-risk cargo insurance provides you coverage for physical damages and losses, as a result of external causes that may occur during the shipping process.

Different than the carrier liability, All-risk cargo insurance cover your cargo for its original value, so if something bad happens, you do not need to be worried, because you will recover every penny that you invest.

Keep in mind that even this kind of coverage has some exceptions, so it is subject to policy terms, conditions, and exclusions that are based on commodity, origin and destination, conveyance, amount to be insured, insurance company that you are using, etc. If you want to learn more about it please read our blog “Cargo insurance 101: the basics.”

So, what is the best option for you?

With no doubt, acquire All-risk cargo insurance is the best move for you and your company. With this insurance, your cargo will be fully protected against any calamity that may occur during the process, is the insurance with less restriction on the market, and can assure the total refund of your investment, meaning that your company will not be affected by the losses, economically speaking.

Start protecting your cargo NOW!!!

At Cargo Care Service your cargo’s safety is our main concern, so we can provide you:

  • Excellent rates for Air, Ocean, and Ground shipments.
  • We customized rates and conditions depending on customer needs, volumen, commodities, type of shipments, etc.
  • Simple processes to acquire insurance policies and certificates.
  • A worldwide network of adjusters and agents in case of a claim.

If you are interested in having a quote you can contact us here.

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The impact of COVID-19 in the cargo industry

The recently COVID-19 outbreak has impacted our lifestyle in several ways. Most industries were not prepared for an outbreak, leading to multiple challenges to minimize the losses associated with COVID-19.

For the cargo industry, the main challenge relies on the lockdown and quarantine state that many governments and countries have declared as a prevention measure to reduce the spreading of the virus.

These measures have a consequence on the shipping schedule of cargo, leading to delays, reroutes, accumulation of the cargo, discharged short of their final destination and even the possibility of damages and deterioration of  goods.

Even though there are some exceptions to the quarantine and lockdown, this not mitigate the total losses that many entrepreneurs may have, also, after this situation ends, it could take months to solve every cargo contractual situation, to evaluate the potential losses and the coverage provided for the insurance.

It is important to analyze all the clauses of your cargo insurance to be sure that, in this particular situation, your cargo is cover. | photo taken from Freepik


Most of the importers and exporters want to maintain their cargoes moving, to prevent delays and extra costs due to this, keep in mind, due to the reduced personal and restrictions, delays are inevitable.

In general, cargo insurance excludes the coverage of your cargo if the damages or losses are caused by delays. You can also decide if you want to store your goods or try alternative routes to have your cargo delivered its final destination.

Most of the time, additional cost for re-route are not cover by cargo insurance, other insurances might have clauses that cover your cargo for certain deviation or delays.

Therefore, it is important to talk with your insurer about the state of your cargo and the insurance clauses to know how you can proceed with the transportation of your cargo.

Accumulation of cargo

As a consequence of delays,  accumulation of cargo is another risk that affects your insurance. Cargo insurance covers your freight from damages or losses, but it is expected that your cargo is properly packed and stored to prevent this.

The problem is, due to the delays, warehouses and ports will start accumulating cargoes, exceeding  their capacity. It is most likely that your cargo is not being handled correctly leading to potential loss or damage.

Perishable goods are the morest affected ones. Cargo insurance covers your cargo for spoilage caused by a peril, but if the merchandise its spoil because of delays, you may have no coverage.


This case affects the cargoes that already in transit. Some vessels reserve the right to arrive at another port if the final destination is considered a high-risk area. This deviation can cost you extra which may not be included in your insurance.

Force majeure

Force majeure is a clause that exempts freight forwarder and insurer from all responsibility of the cargo due to unexpected or uncontrollable situations. The problem is,  the causes that triggers a force majeure need to be expressly addressed in the contract to be valid.

We know that this situation is complicated, so it is better to count with a liable and serious logistic partner that advises and gives you the best solution for your cargo. In Cargo Care Services we constantly monitor the outbreak situation and we help you to prevent any damages or losses that may affect you.

Maybe you might be interested: 

How to manage your cargo during the COVID-19 outbreak

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Cargo Insurance 101: The basics

If you need to import a machine for your company or export one of your products abroad, then you need cargo transportation.

Cargo transport, is one of the main commercial activities in the world. With a massive activity, comes a huge amount of risks during all the shipping process that can lead to partial or even total loss of your merchandise.

Then, you’d be wondering: how can I protect my cargo and my investment, for all the risks that come with the shipping process? The answer is simple: you need to get cargo insurance, that’s the smarter and safety decision that you can make.

In this blog, we want to explain to you the basics of cargo insurance, and why it’s so important for you to acquire one.

What is cargo insurance?

Cargo insurance is a type of insurance that covers your cargo for damages or losses while it is in transit between the point of origin and final destination of your cargo.

Typically, Cargo Insurance is compared with car insurance: You need a minimal amount of coverage to get on track to protect your car for collision or theft, so cargo insurance is the same. You need to insure an amount of money equivalent to the cost of your cargo, in case something happens (a theft, a crash or another accident) you do not need to take money out of your pocket.

Some carriers, brokers and freight forwarders, offers you a minimal amount of insurance required for carrier liability. It’s not enought, it does not protect your cargo for all the risks, and the refunds are usually less than the total value of your cargo. Investing in cargo insurance that covers your goods, guarantees you protection against all the economic risks derived from damage or loss of product and other accidents.

Is Cargo insurance a requirement?

Cargo Insurance the basics
It's highly suggested to invest in a good cargo insurance. | Photo taken from Freepik

There is no requirement nor obligation to acquire cargo insurance when you’re shipping your goods. However, it’s highly suggested to all the importers and exporters, to get one if they don’t want to assume the economic losses if something happens.

Life is unexpected, you cannot control or even assure that your cargo will always be safe and sound. For example, during the shipping, the vessel can sink, explode or be attacked by pirates (do you think we are overreacting? Maybe a little). As we said before, the carrier’s liabilities don’t cover all of the risks, so you’ll have to pay for all the losses if something unexpected happens.

Furthermore, most of the time your cargo is shipped together with other shipments, and if something happens to the other shipments, the maritime principle (or concept) of General Average stipulates that the losses are divided by all the owners of the surviving merchandise. So, your cargo will not be released until you pay.

To avoid all this risk, it’s better to invest  in good cargo insurance, to add an extra layer of protection to your goods and your investment.

Types of Cargo Insurance

As with life or car insurance, there is a variety of cargo insurance as well. Each variety protects your cargo in different scenarios and their scope of protection may vary. This is why you need to carefully analyze the cargo insurance options to choose the one that suits your needs.

Land Cargo Insurance

As its name suggests, this insurance protects your cargo while is in transport on land by trucks or utility vehicles. This insurance is for domestic shipping only, so it applies within the confines of the United States. The coverage of this insurance is against theft, damages for collision and similar risks.

Marine and air Cargo Insurance

This insurance protects your cargo during shipping by sea but also protects you by air shipping. The coverage of this type of insurance applies to international export and imports, against bad weather, piracy, damage from loading or unloading, and similar risks.

Different Types of Cargo Insurance

There are different types of cargo insurance, so choose the one that offers you the most coverage. | Photo taken from Freepik

Whether your shipping is by land, by sea or by air, the insurance coverage (or scope) depends on your contract policy details.

All risk Coverage

This insurance is the best known and preferred choice among importers and exporters. All risk insurance protects your cargo for physical damage and losses, a result of external causes that may occur during the shipping process.

Even if is all-risk insurance, there are few exceptions:

  • Damage because of negligence, for example, bad packaging and crating.
  • Inherent Vice, it means the deterioration of cargo due to its inherent nature instead of external factors. For example, a wine cargo, due to variation of temperature, movement or other conditions affect its composition.
  • Cargo Abandonment
  • War, riot, strike and civil commotions.
  • Customs rejection
  • Loss of use or market
  • Failure payment

Named Perils Coverage

This insurance only protects your cargo for the risks list on the policy. It’s a slightly more limited type of insurance. So, if you want to get a Named Perils coverage, you need to make sure that the risks listed in the policy are necessary enough for your cargo.

Total Loss Coverage

This insurance protects your cargo when it occurs damage on it and the cost of repair is more expensive than the own value of the cargo. Many insurers companies consider the possibility of a total loss coverage when the loss of the cargo’s value is equal to or greater than 50% or 60%.

But also, the total loss coverage insurance can be claimed if the ship is abandoned, due to heavy damage, but the cargo is safe, however, the cost of bringing it to a safe place is more than the total value of the cargo.

Cargo Clauses – C for used merchandise

These, are the clauses that are embedded on the cargo insurance and specify which items in the cargo, are cover in cases of damage or losses.  The C clauses are the more restrictive one, so your payment would be lower, this means the coverage would be lower.

In Cargo Care Services, the major perils covered  by our C clauses are:

  • Fire or explosion.
  • Vessel or craft being stranded grounded sunk or capsized.
  • Overturning or derailment of land conveyance.
  • Collision or contact of vessel craft or conveyance with any external object other than water.
  • Discharge of cargo at a port of distress.
  • Loss of or damage to the subject-matter insured caused by general average sacrifice.
  • Jettison
Do you want to know their cost? Discover it here

As you can see, acquire cargo insurance is highly suggested if you want to secure your goods against a potential loss due to physical damage. In Cargo Care Services, we can help you protect your cargo and your money with the best insurance policies. Ready to insure your cargo? Get a quote today.

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