CARM: What all importers need to know about CARM

Universal Logistics - Take The Right Route Logo with 70 Years Badge

Route Article

Cargo Insurance – Proper Packaging

Cost - Insurance - Freight

Cargo insurance is vital for the protection of products shipped both domestically and internationally. Aside from offering protection from financial losses associated with lost or damaged cargo, cargo insurance protects shippers from a variety of other shipping risks, such as the law of General Average.

While cargo insurance can help protect the shipper’s interests, there are common insurance exclusions that should be kept in mind. One of the most important exclusions is loss or damage due to improper packaging.

When a shipper fails to properly secure cargo with proper packaging techniques, products can easily be damaged while in transit. For example, reusing corrugate boxes or crates that are loosely built or shipping in packaging that clearly cannot withstand a given voyage, can result in losses that would not be covered by cargo insurance.

In these instances most shippers are surprised to learn they are not covered by cargo insurance, even though they have requested specific cargo insurance coverage. The causes of this exclusion can be easily avoided with proper planning and practices by the shipper.

For more information, contact David Lychek, Manager – Ocean & Air Services.

Quick Tip #5
Clarifying the limitations of Incoterms

Don’t make the mistake of assuming Incoterms define anything other than the terms of delivery. For example, Incoterms do not cover:

Switch to a Logistics
Partner Who Cares

Click the button below to find out why we’ve been Canada’s most trusted freight forwarder and customs broker for over 75 years.

Professional business people team meeting and working in corporate office concept

Register now to learn more about our

101 Logistics Quick Tips

Available exclusively from Universal Logistics