Cargo Insurance: why is it important? | DB Group

Cargo Insurance: why is it important?

03 September 2021

Although remaining the most common mode of transport, and sometimes a forced choice, sea freight is by nature exposed to multiple risks arising both by exogenous causes as well as by human mistake. Some examples?

Between November 2020 and February 2021, maritime insurers estimate that about 3.000 containers were lost in the Atlantic and Pacific oceans, counting also a substantial increase of vessels involved on accidents. On March 23, 2021 more than 300 vessels were stuck for one week to pass the Suez Canal due to the accident involving a containership. Those are just two examples of unexpected events involving sea freight operations in the last year.

But, who’s responsible to repay clients for the missed opportunities and the losses generated by the delays and the damage or loss goods?

As easily predictable, most of times the cause of the accident is identified as a force majeure event. This implies that the carrier is not responsible, and only in some defined circumstances, the refund value repays only part of the goods, totally excluding financial losses due to delays in delivery. Assuming the case of a general average in which the goods don’t look damaged or lost, the owner of not insured cargo is responsible to pay in advance all the expenses for the moving of the container on another vessel to proceed with the shipment.  

The increasing number of accidents has put cargo insurance opportunities for ocean freight in the spotlight. Obtaining a refund for damages arose during transport is not easy at all. Furthermore, this procedure is subject to investigations that can last for months or even years.   

To get a reimbursement from the carrier it is necessary to demonstrate its responsibility.

How to prevent these unpleasant situations?

D.B. Group is at complete disposal of its customers to evaluate the best coverage options on the basis of your needs and to assist you on the management of insurance practices.

If you want to know more get in touch with our team here.


D.B. Group

Cargo Insurance: why is it important?

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