Cargo Insurance Claim: How You Get Your Money Back

 

Suffering a loss during the transit of your goods can be a distressing experience, made even more difficult by the claims process. The process for filing a claim can vary significantly, depending on whether you have all-risk cargo insurance or are solely dependent on your carrier’s limit of liability. In this blog, we’re going to review some tips on this matter.

 

Regrettably, a significant number of importers and exporters believe that their shipments are entirely protected under the carrier’s liability and that the carrier will be held accountable for any loss or damage since they had physical possession of the goods during transportation. However, this is not the case.

 

Uninsured importers face the risk of financial loss regardless of whether the carrier had control over the accident or not, as the carrier’s reimbursement limits may fall short of the cargo’s value. To guarantee compensation for the complete value of a damaged or lost shipment, obtaining Cargo Insurance is the only solution.

 

Cargo insurance provides coverage for commodities that are lost, damaged, or stolen during transportation from the starting point to the final destination, irrespective of whether the fault lies with the carrier or not. The main objective of cargo insurance is to safeguard businesses from experiencing any financial loss.

 

Cargo Insurance claim

 

So, if you got Cargo Insurance and your goods have been damaged in transit, you should file an insurance claim as soon as possible. These are the steps to take:

 

  1. Ensure to record any shortages or damages in the bill of lading, and aim to provide a detailed description. It’s advisable not to return a clean receipt, as it signifies that you have received your goods in an undamaged condition, and this may lead to the invalidation of any insurance claim you may file.
  2. Take pictures of the damage to the shipment. Try to capture the damage from various angles and perspectives to obtain a comprehensive view of the extent of the damage.
  3. Maintain control of the damaged freight. You must keep it as evidence until your claim has been settled and take preventive measures to safeguard the cargo against any additional harm.
  4. Notify all parties involved in the supply chain, including the supplier, carrier, and port/airport authorities if it is the case.
  5. Inform your insurance provider and file a claim. If necessary, request the official claim form from your insurer, which may be available online for electronic submission or printing. This form will assist you in determining any additional documentation required to substantiate your claim.

 

Upon receipt of your claim, the insurance provider will evaluate all available evidence. If your claim is accepted, the insurer will reimburse you for the cost of the damaged goods, in some cases a deductible applies that you should know from the time you contract the service. It is important to know that if the damaged goods are repairable then the insurance company will go after this option and pay for the repairs instead of replacement even if you have ALL RISK coverage. Typically, claims are processed within 30 days of receiving all necessary documentation.

 

CARGO CARE SERVICES is a 3PL company that provides you with customer service by connecting customers with different insurance providers, so we can assist you with excellent options for CARGO INSURANCE and support you in the claim process until you get your money back! Contact us.

 

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What to consider before buying Cargo Insurance?

 

There are certain questions that you need to have in mind before buying cargo insurance to be sure that you are getting the right insurance. In the following sections, we will look at some questions you should better know the answers before purchasing Cargo Insurance.

Does your current carrier cover damages?

It might. It might not. Coverage can vary greatly as you may know carrier liability is very restrictive. If you don’t want to be fully responsible for the cost choose all-risk, full-value cargo insurance– it is the smartest choice. This way your insurance covers 100% of any damage that occurs and pays directly for the physical loss/damage of your item.

What about the rate?

You should make sure that you are getting a good rate, but the cheapest doesn’t mean you will have the better. Perhaps you have to shop around a bit before picking a cargo insurance provider to take your time comparing rates with coverage and service, especially in handling claims.

How about payouts?

If possible, you want your claim remediated as soon as possible. So, you will prefer working with a vendor who offers a fast and easy way to resolve claims.

Who would be responsible for filing the claim?

Adding cargo insurance with a company specialized in that is an affordable way to deal with those problems and get your money back because they will lead this process.

What is the time allowed to report damage to a shipment?

You will find cargo insurance providers only allow a few days for discovery of the damage and filing of the claim. Thus, your aim should be to find a provider that allows up to thirty days at least for reporting damage after the shipment reaches its destination.

Does the insurance provider have enough experience?

You should ideally purchase cargo insurance from someone who has experience insuring different transportation modes and international movement of goods. This way you will have the assurance that insurance providers will be able to offer the correct solution for your needs.

 

CARGO CARE SERVICES offers cargo insurance for your domestic ( USA) and international shipments. We have experience in ocean, air, and ground transport cargo insurance. We place your risk with the best insurance companies to assist you with the best rates, coverage, and service.

 

Let us know your needs, it will be a pleasure to assist you!

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Difficult Job? we can handle it, check out!

In the logistics sector, we may find people and companies with difficult to ship freight. This post will be used to describe the categories of difficult-to-ship freight along with how we were able to help our customers with their cargoes.

Hazmat

Hazmat Transload in LA

We have a special project from a customer in Los Angeles that needed transloading services for Hazmat 6.1 (poisonous freight) which is something not all warehouses with hazmat certification are able to handle. We have received already 20 containers since last year, unload 19 regular pallets, store from some weeks and then the customer will pick them all together, we have even needed to rebuild pallets, dump some product as it arrived wet and leaking from origin, our team is equipped and able to handle all inconveniences during the job.

handle all inconveniences during the job.

Heavy

Cargo to be loaded on 4×40’FR

We received one request from one of our valued customers willing to load 4×40’FRs in Houston, each piece weighted 50,000lbs each with dims of 126x100x115inche each. We needed special equipment for these to be handled so we needed to schedule a crane to be on site by the time the trucker arrived with the freight to the warehouse. We coordinated it with our customer however we faced some difficulties such as, steamship lines moving the cutoff dates, the shipper not having the freight ready on time etc. we finally managed to have these loaded on time and ready to ship. managed to have these loaded on time and ready to ship.

Oversized

Air Project transload

One of the big projects we also had to work in was some big, crated machinery pieces that needed transloading as the airport was not able to load them in 53’trailers however the consignee would only be able to unload from 53’trailers. We had to pick up from the airport on Flatbed trucks, take them to the warehouse and then schedule 53’trailers with swing doors, load the freight inside and deliver under an appt to the site, they needed to be on a specific date as these pieces were for some machinery and the engineers came from abroad to the US so it was a very time sensitive case.

High-Value

Computer graphic cards to Hong Kong

When a shipment has a high value there is always a risk that something could happen to the cargo and lost millions of dollars. So, it is important to hire a CARGO INSURANCE, we provide affordable but comprehensive cargo insurance to give owners peace of mind when shipping.

Recently, we insured a high-value shipment of Computer graphic cards and Memory cards from Hong Kong to St George UT, with a commercial value of $6.000.000 USD in 18 pallets. We insured it successfully and without claims.

Fragile

We have handled very fragile commodities to insure. One of our current customers is shipping Custom Glass Fixtures with a commercial value of $5.000.000 USD from NY to CO, packed in wooden crates. We’ve insured this commodity several times, we have a lot of experience.

Other difficult transloading jobs…

Transloading of a plane fuselage at Houston

Transloading with a crane at Savannah

As you can see by these examples, CARGO CARE SERVICES has extensive experience handling special projects and we could be that reliable ally that you needed so much.

Contact us to work with you!

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What does cargo insurance not cover?

As you may know, Cargo insurance is a type of insurance that compensates a buyer or seller of goods against cargo damage or loss of cargo as the carrier’s liability is usually not enough to cover the value of the freight. That’s why it’s important to consider cargo insurance for your cargo, it not only allows you to save time and money but sleep well and have peace of mind when a loss or damage occurs.

Through this article, you will learn more about cargo insurance and what it doesn’t cover.

What are the benefits of Cargo Insurance?

The main advantage of cargo insurance is that you minimize your financial loss even if your shipment is damaged or lost. The small investment (the premium) you pay provides peace of mind when your freight is in transit. Also, your cash flow is protected from unforeseen issues.

What does cargo insurance not cover?

Cargo insurance doesn’t cover risks and issues that the shipper has control over it. It is important to keep this in mind so you decrease the chances of your freight being damaged or lost, for instance an insufficient packaging, shipping delays, an incomplete or incorrect shipping product, among others.

And generally, policies exclude:

  • Damage due to inadequate packaging. If any damage to your freight is traced back to improper packaging of your freight, the policy won’t cover you.
  • Damage due to flawed products. If the carrier can demostrate that the damage was because of faulty items inside your freight, the policy won’t pay you back.
  • Certain types of freight. Some commodities as hazardous materials, certain electronic products, and other highly-valuable or fragile products, may be excluded or depending on your insurer can have other conditions.
  • Some modes of transportation. Some policies may only cover your cargo when it is onboard a ship, a plane, or a truck.

The insurance industry does not have standard cargo insurance guidelines, so exclusions and inclusions vary widely.

What does cargo insurance not cover?

How to make a claim

Carriers are assumed to be not liable for the damage or loss until proven otherwise. They also would do everything to reduce their responsibility or avoid it beforehand and you can see their limitations in the fine print of the Bill  of Lading.

Therefore, it is up to you to prove that the damage or loss happened under their custody or they were careless in handling your shipment. And when you do it successfully, your claim is approved and the insurance company pays you.

There are also details about your shipment that you need to recapture when you make a claim, which are:

  • Inventory number. The amount as stated in the inventory list given by your insurance provider. 
  • Item’s room. It means the location of your item before it was packed.
  • Item description. Indicate all the details about the item, like its dimensions, weight, visual indicators and  accessories. 
  • Damage. Describe what and where the damage occurred in your products.
  • Item age & date of purchase. If you don’t have any production records, estimate how old the item is inside and the date you bought it. 
  • Original and replacement cost. Write the original cost accurately and find out about the price of an item comparable to yours to determine the replacement cost.
  • Claim amount. If your claim is for damage, only indicate the cost to fix it. In case your claim is for loss, indicate the cost of your product or the amount established in the inventory. You may also be required to provide a proof of ownership or value by the underwriter of your policy.

Work with a specialized company with cargo insurance experience

As with any insurance policy, it helps to work with insurers and brokers who have experience they will have better insight into your risks. In CARGO CARE SERVICES we have 14 years of experience in the cargo insurance sector, placed your risk with the most liable brokers and insurance companies in the industry. We are able to assist you from the issuance of the certificate to the claim process with the insurer if it arises.


CONTACT US! 

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Expectation vs Reality about Cargo Insurance

 

There are things people have misconceptions about Cargo Insurance. In this new post, we would like to raise some awareness regarding this subject, so the next time you will know what to do!

 

Expectation

Reality

Cargo insurance insures everything with your shipment.

Cargo insurance does not cover any form of liability other than the merchandise itself.

 

For instance, let’s imagine a heavy machine on a flatrack. The flatrack, stowed below deck, could come in contact with other merchandise causing some damage like the breakage of several hydraulic fluid lines. The damage is very cheap to fix. However, the hydraulic fluid that leaks everywhere in the hold can contaminate everything it touches. You may believe the shipper has to file a claim against the cargo insurance to deal with having the contamination cleaned up, but it couldn’t as this is a commercial liability.

 

Expectation

Reality

In the event of a covered loss, the beneficiary of the loss will get the total face value insured on the cargo insurance certificate less the deductible.

Cargo insurance only pays approved claims for covered perils on what can be a proven loss.

 

If you have not lost it, you can not claim it. For example, a shipper who ships a heavy machine insures the shipment CIF + 10%. This means the value insured covered the cost of the machine, the insurance, the freight costs to transport the machine, and an additional 10% which can cover unforeseen costs related to a loss.

 

Let’s suppose the shipper’s machine incurs damage along the way and it was not a total loss as the machine was repairable. The good news is the damage caused by a covered peril which would be covered and is repairable at the destination. You may think the claim should be for the complete cost to repair (sounds reasonable), but if you include the cost to transport plus an additional percentage since the cargo did not require to be re-transported; the shipper never incurred that cost.

 

While the shipper could have filed a claim with the insurer, the claim would have been rejected for the cost of transportation and any additional percentage since those things were never lost. However, cargo insurance will only refund for lost amounts caused by covered perils and actual losses, which may be less than the total insured value.

 

 

Expectation vs Reality about Cargo Insurance
Computer photo created by lookstudio – www.freepik.com

 

Expectation

Reality

My carrier has my back.

The majority of methods of transportation do not take full liability for the cargo they carry.

 

Some methods of transport take a bit of liability which matches with a small fraction of the actual value. In the case of air carriers who typically operate on a tariff to control the rules of engagement, there is little cover given. Some air carriers will allow you to ‘declare value’ to extend carrier liability, but it will cost you, and there will be restrictions. You can expect to pay about $0.85 per hundred dollars of declared value. Ocean carriers limit their liability to $500 per package. As a general rule, ocean carriers consider one shipping container as one package.

 

Ground 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).

 

Expectation

Reality

Cargo insurance is too expensive to win the deal.

Cargo insurance rates depend on the situation. Costs vary depending on the risk, commodity, and value of the merchandise.

 

Shipping a container to Malaysia will need a higher insurance rate than shipping the same container to Mexico from the United States. Shipping a container of auto parts will be less insurance cost than shipping a container of cellphones.

But most of the cases checking calculations is less than 1% of the total deal for shipping to mitigate the risk of up to a $65,000 loss for example which looks pretty affordable.

 

Expectation

Reality

My team doesn’t have time to arrange cargo insurance for each shipment.

There are specialized companies to do this job for you and is extremely fast.

 

Companies like CARGO CARE SERVICES can do this for you, we only need the general details on each shipment and we can issue the COI for you in minutes, so you can avoid E&O and focus on your job. You will receive a certificate for each shipment on time with the support of an excellent team.

 

On the other hand, if you have a Transportation Management Systems (TMS), it helps to manage everything to do with the mountain of shipments you book daily. Today, cargo insurance can be integrated into the TMS, allowing forwarders, 3PL’s, TMS portal users, and major shippers, to request cargo insurance in few steps when booking a shipment. GET MORE INFO NOW!

 

In both cases, you can contact us for a rate, for advice, or whatever you need related to cargo insurance, we have a team with 12 years of experience in this topic and it will be a pleasure to assist you.

 

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Global Cargo Insurance policy vs Cargo Insurance per shipment

 

Whether you are an importer, exporter, or freight forwarder you may wonder if you should use a global cargo insurance policy or per-shipment policy for your cargo insurance. The volume could play a large role but it is not the only deciding factor, in this post we are going to show up some other points to consider which is better for your business.

If you prefer a trackable direct expense for each shipment

For some shippers, it is important to quantify everything that goes into a deal and apply those costs to individual shipments. For Freight Forwarders that have a global policy, except they know exactly how many shipments overall they will insure that year, there is no way to calculate the real cost of insurance for a given shipment with any veracity. When this occurs, this expense becomes a soft cost that may not be duly represented in the sales price. Per shipment allows the real direct expense to adjust with the individual transaction.

If your volume of shipments per year is variable

Surely, if you are insuring one hundred shipments a month consistently year in and year out with predictable values, a global policy is likely the preferred way to go. On the other hand if your volume isn’t quite so predictable, with a per shipment cargo insurance you can pay for only for what you use. For higher volume, shippers can use a monthly report to eliminate the labor of insuring per shipment. The rates, terms, and conditions are all pre-negotiated.

 

cargo insurance per shipmentWater photo created by jcomp – www.freepik.com

Some benefits to consider Cargo Insurance per shipment

  • There are no contracts, so you have flexibility
  • Capacity to extend the shipper’s reach for high-value shipments.
  • There are no minimums, many policies include minimum requirements for volume to maintain a policy.
  • Expense tracking, it’s what makes tracking the direct expense the easiest for you.
  • Each certificate issued is reviewed by a person. You take comfort in knowing the data the shipper provided is reviewed by a person looking out for the shipper’s best interests and it is easier to deal with the claim process should arise.

 

In the case of very large volume shippers, global policy is almost always the answer. In many cases, if a large volume shipper is dealing with an insurance provider, they can source their cargo insurance wrapped in with other products from the same provider. Then you must decide which benefits of either suit your needs most.

 

In Cargo Care Services we specialize in Cargo Insurance per shipment, we issue your certificate in a few minutes, we assist you in all the claim processes when a claim should arise and we have an experienced team in Cargo insurance matters to solve any issues or doubts, 12 years of experience prove it.

 

CONTACT US TODAY to get your Cargo Insurance rate!

 

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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.

 

 

MAJOR PERILS DURING FREIGHT TRANSPORTATION

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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