The importance of insuring your shipping container

Sea freight is the most popular way of shipping goods. There are more than 50,000 merchant ships currently sailing around the world. And modern mega-ships can carry more than 15,000 containers onboard. Even though this is the safest way to transport your goods, accidents can happen. Logistics companies in Saudi Arabia say that more than 1,500 containers are lost at sea every year. 65% of them due to catastrophic events. Maybe this looks like a small number comparing to the overall number of containers. And it really is. However, the number of lost containers will look small until you are the one who suffers a loss. Luckily, there is a way to minimize the damage. That is by insuring your shipping container.

Marine cargo insurance is the best way to protect your valuable cargo at sea

The most common way of protecting your cargo from theft, physical damage or general average at sea is marine cargo insurance. Unfortunately, that is something that is not always automatically included for your shipped goods. This depends on the region and your carrier. So if you want to make sure that your cargo is safe and insured you will have to purchase an insurance policy from third parties like insurance agencies, large brokers, local agents, insurance websites, logistics companies in Bahrain, or your sea freight forwarder.

a cargo ship
Purchase an insurance policy for your precious cargo

You are insuring your car every year, why don’t you do the same with your highly valuable cargo?

If you are still not sure whether you should give up the part of the value of your goods, think again. Even though you are driving your car for years without any damage or accidents, you are still paying for insurance every year. It is the same with sea cargo. By giving up the small fraction of your profit, you will make sure that when the accident happens your goods are covered.

Find a reliable insurance provider that will protect the value of your goods

As there are many places where you can get marine cargo insurance it is important to make sure that you find a reliable insurance provider. And sometimes you could have trouble even with the best insurance companies. So, explore the internet, read reviews on relevant websites and try to find the insurance provider that has a good reputation.

How to recognize a good insurance provider

The best insurance provider will offer you a variety of different flexible policies that are formed according to your requirements. Also, a good insurance company will provide you with all-risk coverage. That means that your standard goods will be protected against all common types of damages and losses. Of course, they will have a quality team of experts that will guide you through the process. They will provide you with advice on how to comprehend the complicated rules and regulations.  And of course, how to quickly resolve your claims.

Insuring your shipping container is not mandatory

Marine cargo insurance is not required. You can send your goods by sea without any coverage. However, if you calculate the possible losses with insurance costs you will certainly realize what is the right thing to do.

Even though you can try to prove your carrier’s responsibility for your loss they all have limited liability. And that is $500.00 per package, customary unit or value of your goods. Whichever is less. Naturally, most shipped goods have much higher values. And you will certainly not be satisfied with this. Therefore, insure your shipping container if you do not want to lose your precious cargo.

Calculator for insuring your shipping container
Calculate the risks and you will realize that this is the right thing to do

Insuring your shipping container will relieve you from troubles of proving liability

As mentioned above, you can try to prove your carrier’s responsibility for the damage. But most common types of damage are not in the range of their responsibility. This includes:

  • Fire is something that is not in the range of your carrier reliability and insuring your shipping container is the only way to retrieve your loss.
  • Water damage
  • Impacts on your container
  • Natural disasters
  • Sea accidents
  • Temperature changes
  • Condensation inside a container
  • Inadequate packaging
  • Improper loading

Who is responsible for the damage?

Also, most of the time, there will many different cargo companies that will be handling your cargo while in storage Saudi Arabia and during transit. And it can be really difficult to prove who is responsible for the damage that occurred. On the other hand, if you have proper marine cargo insurance you do not have to deal with proving liability. Your cargo is covered.

Hire a reliable freight forwarding agency to avoid possible damage to your cargo

Another good way to avoid losses and damage to your cargo is to hire experienced and reliable freight forwarding company. Freight forwarding companies in Saudi Arabia know how this business works. They will provide you with the best advice. And organize your transportation using their connections with the best logistic companies warehouses, and carriers around the world. They will also deal with complicated customs procedures and paperwork. And all you have to do is to prepare your shipment properly.

Man writing on a paper
A freight forwarder will even help you with your paperwork

Insuring your shipping container is important but pay attention to how you prepare your cargo for shipping

To prepare your shipment properly you will have to prepare quality packaging. And you will have to know how to place it in the shipping container. The most common way of sea cargo damage is cargo shifting due to the rough sea. Consider using straps on your goods. And if your container is not full, use ratcheting cargo bars to prevent your cargo from shifting.

Everything is easier with professional help

If you are just entering the shipping business, make sure that you start the right way by choosing expert freight forwarders.  This is a complex and stressful business. But it can be much easier if you have professional help by your side.

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