Regardless of what kind of shipping method businesses rely on, keeping track of every parcel and ensuring it is safe is crucial. This is important whether your business is sending a letter across town or a cargo ship across the ocean, although longer trips can expose shipments to greater risks, heightening the need for comprehensive insurance coverage. Thankfully, there are tools at businesses' disposal.
A recent article from Gateley examined the use of marine cargo insurance and discussed why it is something that anyone involved in the shipping industry should be aware of. The piece points out that contracts between shippers, receivers, forwarders, road haulers, sea captains and warehouse keepers — to name just a few stakeholders — can become convoluted, as each party is looking out for their personal interest.
"There are also a number of international transport Conventions which govern international carriage of goods, by particular modes of transport," the article reads. "These Conventions may apply compulsorily, whether or not the parties want their contract to be subject to them. In other cases, the Conventions, or parts of them, may be incorporated by contract. All of the international transport Conventions contain exclusions, limitations and notice provisions."
The piece goes on to say that all of this language can cause the actual cargo to be overlooked. This is why marine cargo insurance should be used by shippers to protect themselves against loss or damage of goods in transit. With the right coverage, if something was to happen to cargo while it is on a company's boat, the organization will have recourse to mitigate the financial pitfall that can be created by such an incident.