With or without transport insurance?

29 July 2024

Received your goods damaged? The carrier is not automatically liable for the loss, or for payment of compensation. Did you know that losses could actually be recovered from you, such as if the ship on which your shipment is loaded sinks, or if a fire breaks out on board? What do you choose, transport with or without transport insurance?

What risk are you taking?

A carrier is only liable for damage to the goods it transports up to a certain amount. Sometimes a carrier is not liable at all. For example, if your supplier dropped the ball when packing the goods. Sometimes goods get lost or theft occurs during transportation.

In short: there is a risk of loss or damage in every transport. If you do not have transportation insurance, then in most cases, such costs are not covered. It does not matter who caused the loss or damage. This can quickly run up to major financial implications for your business. Are you willing to take this risk? Transport insurance covers the risk you run when you are having goods carried.

Accidents happen

The loss after cargo theft, fire or water damage, for example, can run up quickly. Let alone if a ship sinks or a plane crashes. The high cost could leave you in unexpected trouble. Remember the accident with Mv. Ever Given? Or very recently, the Baltimore bridge collision in the United States? This too will have (financial) consequences for all cargo stakeholders.

What does transportation insurance cover for you in such an event? The policy covers the risk in the event of loss or damage during transport. In addition, you are assured of proper settlement of a loss event. This ensures that your relationship with clients and customers will not be unnecessarily strained.

Do you detect damage? Then it is always important to note discrepancies and findings such as water damage or deficits on the bill of lading (CMR). Even if it only seems like a minor difference. This prevents you from having to look for evidence afterwards.

Who is responsible for what?

Transportation insurance can be arranged in several ways. For example, you can include relevant provisions with your supplier in the Incoterm you agree on together. Be sure to explicitly agree on who will provide the insurance. Although there is much talk of ‘insurance’ in the Incoterms, again, insurance of the goods is in fact not a default!

It is also possible to purchase your own transport insurance. You can do this for each individual shipment. However, if you ship goods regularly, continuous insurance is the best choice. This saves both time and cost.

Finally, you can always purchase transportation insurance through us as well. We are affiliated with FENEX, the Dutch organization for freight forwarding and logistics, as a freight forwarder. This means we can provide custom insurance for every Ritra Cargo transport for you.

Want to know more?

Of course, we can advise you on which transport insurance is best for you. We work with a specialist intermediary to arrange the details. For more information and advice, please contact us.