International transportation of goods and materials can be incredibly costly. It can also be frustratingly slow. Still, sourcing goods and raw materials abroad can be the best option for a domestic company.
For many businesses, the most cost-effective option when importing foreign goods or materials involves maritime shipping arrangements. Waiting for cargo to arrive can be a challenge. In some cases, it may arrive damaged. Other times, it may not arrive at all.
Storms could result in the loss of some cargo or entire ships. Piracy and other forms of theft may result in cargo not reaching its destination. Weather conditions may also result in damage caused by physical motion or moisture.
Who usually covers the cost of lost or damaged cargo?
Transportation companies
Carriers are often liable for lost and damaged cargo. In many cases, the contracts that they sign with clients limit their liability to a certain amount. Clients may need to disclose the estimated value of their cargo. In cases where carriers do not have the resources to provide compensation or where losses exceed what they are liable to cover, outside support may be necessary.
Specialized insurance
Cargo insurance is available to not just carriers but also to companies that rely on international transportation of goods or materials. Carrying cargo insurance can help ensure that companies do not experience major financial setbacks should an entire shipment end up lost or damaged.
Businesses looking for compensation for lost or damaged cargo or exploring ways to protect themselves may need help, and that’s okay. Learning more about cargo-related liability can be beneficial for those engaged in or dependent upon international shipping.