Rough weather, port strikes, improper packing, and other common hazards can pose significant financial risks to both your company and the consignee. It’s crucial for both the shipper and consignee to clearly understand who is responsible for the cargo at each stage of the shipping process and when the risk of loss or damage is transferred. For a better understanding of these responsibilities, please refer to the “Incoterms.”
Neither the shipper nor the consignee should assume that adequate insurance coverage is automatically in place. Without proper insurance, damage to the cargo can result in substantial financial losses, depending on the timing and nature of the incident.
The responsibility to insure cargo rests with the owner of the goods, not the Carrier, whether it be a steamship line, an NVOCC, or a freight forwarder. Carrier liability is often limited by international agreements and differs significantly from standard insurance policies.
At EZ Freight Inc., we provide cargo insurance coverage through our policy with Lloyd’s of London. We generally recommend that our customers insure their cargo for 110% of the CIF (Cost, Insurance, and Freight) or CIP (Carriage and Insurance Paid to) value to ensure adequate protection.
The type of coverage and rates may vary based on the commodity and the destination, so please Contact Us for additional information.