In this volatile, ambiguous, complex and audacious trade logistics world we’re living in, container shipping Insurance is a strategic move that must be implemented. With this, minimizing trading risks and reducing loss friction is possible. If the idea of loss, vandalism, or theft of shipping containers makes you scared and nervous, then having a shipping container policy is recommended for you.
This blog is to enlighten you on the where, how and why getting an shipping container insurance is important for your business. This would help you focus on what really matters which we believe is satisfying your customers, and saving cost measured in a long-term profitability.
What is Shipping Container Insurance?
Shipping container insurance is a property policy cover that a shipper can purchase to get reimbursed for shipments that are lost, stolen, or damaged in transit with a courier. However, with the basic knowledge of container shipping insurance will help you responds to damages and loss of carrying equipment, and carrying equipment share of general average/salvage contribution.
Most international express couriers cover domestic and international shipments with a value up to $80USD against damage or loss by default. What we do is recommend the best for you through our research on shipping insurance for users for all domestic and international couriers.
If you are looking for advice or guidance on how to proceed or register for container international insurance please feel free to contact us, we’d love to hear from you and make your movement as frictionless and economical as possible.
Main Benefits of Shipping Container Insurance.
The Four Key Benefits of a Shipping Insurance includes;
|Minimize the burden of risk and cost
|Relaxation that come with peace of mind
|Gain competitive advantage that comes with protecting your investment
|Recover goods for loss by easily getting insured
In general, it’s flexible to include insurance in all your investments and shipping containers from one country to another. You can add it right at the time you are paying for shipping or making an investment. Also having a mindset that your day-to-day operations are safe and without stress of guaranteeing the safety of your shipping equipment can reduce the burden of thinking too much.
Also, if something happens to your shipping container when it’s uninsured, the stress and loss will be too much on you but when insured the guarantee of monetary/complementary goods compensation is articulated. The seller buys shipping insurance since they are responsible for the product up to the point of delivery. They risk the monetary losses so have more incentive for a layer of security shipping insurance provides. However, there are times when a buyer will purchase shipping insurance as well; for example, if they are in a location where delivered packages are less secure.
What Are the Risks of Shipping Without a Shipping Insurance?
The main risk of going without shipping insurance is going to be the cost of sending a replacement product to the customer. While this not might harm the bottom line on lower-value goods, it can add up if you ship in high volumes or your products are of high value. You will have to calculate shipping errors into your loss prevention strategy.
Should I Get Shipping Insurance?
Each global trade logistics business is different, so there’s no one size fits all answer. In essence, it’s important for freight forwarders, Nvocc and international traders that buy shipping insurance tend to ship in high volumes or have high-value products. In these cases, the cost of replacing missing or damaged products can add up and eat into profits. Purchasing shipping insurance provides peace of mind and allows for more predictable loss prevention costs.
Main Types of Container Insurance Coverage on Shipments
According to NY Shipping, there are the four (4) brief descriptions of different types of shipping container insurance.
- Inclusive Risk Shipping Insurance
With this type of coverage, the insurance company must repair or replace any goods that have been damaged due to just about any types of hazards—fire, theft, breakage, water damage, loss, etc. The only exceptions when insuring a container through this method are those excluded specifically in the terms of the policy.
- Inclusive Risk Shipping Insurance – Full Replacement Value Coverage at Destination
This comprehensive coverage is usually only available if your household goods are professionally packed by your overseas movers. This offers the full value of repair or replacement based on your destination—depreciation is not taken into account. Keep in mind, you may want to investigate values of your high-value items at your destination prior to choosing this option as you may find there’s a significant difference.
- Inclusive Risk Shipping Insurance – Full Replacement Value, Lump Sum
With this type of coverage you would declare a lump sum that represents the coverage you wish to have for your shipment. Only the goods valued at a minimum price must be listed and provided to your insurance company. These items will be covered under the lump sum you declared and not considered additional value so long as the total declared value is not higher than the total replacement value.
- Total Loss Shipping Insurance
This coverage only covers your loss if your entire shipment is destroyed or lost under circumstances such as a fire, an Act of God, missing vessel, etc. Individual items will not be covered.
The difference between a cargo and container insurance
Container insurance vs. cargo insurance
Container insurance and cargo insurance are not competing, however, having both two can be to our advantage which is most rewarding. Some insurance brokers offer both as a package deal, however, it can be separated if you’re thinking of getting just one.
|Protects the freight forwarder or carrier
|Protects the sender or manufacturer
We advise you to buy, sell and lease your container with us and get container insurance as a bundle of packages. This helps lower the risk of liability when investing in your container.
Staying Within Your Budget
Moving overseas can be costly and you’ll want to make sure you’re able to budget for shipping insurance that will cover all of your valuable household goods. One way to make your shipment more budget-friendly is to reduce the items you intend to ship. Take into consideration the costs of shipping and insuring a container as well as whether or not you’ll have the space for everything in your goods. Reducing your total shipment should help you stay within budget and free you up to choose the best services available.
The price of insurance depends on the amount of risk it covers. Choose one or another option is based on the selected type of carriage. Insurance options that are usually offered:
By booking a shipment at NeuMarke you will receive an explanation of all insurance points that will help you make the right choice of an insurance policy.
At Neu Marke Consulting Agency, customers benefit from 2 types of container insurance:
|Total Loss Insurance
|$2.50 USD up to 4.10 USD per container
|Container Damage Insurance
|$12 USD up to 140 USD per container
These prices are dependent on container type and are subject to a 60-day period. Get more insights with our business partner, If you want to buy, sell and rent container online with additional package of container insuranceur business partner Container Xchange can
Our container insurance provides thorough coverage for (actual) total loss, constructive total loss, general average, and strange disappearance. Our goal is to lower risk and liability while performing one-ways on us. You can add container insurance to any deal.
The Basic Insurance covers the equipment from a total loss such as lost at sea, mysterious disappearance, or extensive damage that can’t be fixed. The insurance is valid for one-way moves up to 60 days from the day of pick-up. The insurance renews automatically after the 60 days unless you report that the box has been returned empty.
The Premium Insurance covers all kinds of physical damage a container can go through. That includes a total loss. That’s why the premium insurance has a slightly higher price point. Physical damage can happen because the vessel sways, the crane lifters mishandle the container, heat damages the container, a train that derails, and so on. The premium insurance covers any costs that go above the DPP. The insurance is valid for one-way moves up to 60 days from the day of pick-up. The insurance renews on a day-to-day basis unless you report that the containers have been returned empty.
Apart from the insurance, there is also the Damage Protection Plan (DPP). The DPP helps to compensate for the regular maintenance and repair after the container is used. The container supplier pays for the DPP. The insurance covers any costs that are higher than the DPP. DPP is useful when you don’t want to make damage assessments every time you lease out a container. It takes care of all the repair costs if it falls under the negotiated DPP amount. The Basic Insurance for a 20DC costs $2.5. The Premium Insurance costs $12. The price varies according to the size and type of container.