MARINE CARGO INSURANCE IN INTERNATIONAL SHIPPING OF OCEAN FREIGHT FROM THE USA 

The majority of international sea freight shipments shipped with international shipping companies (Freight Forwarders, NVOCCs) arrive to destinations free of damage and loss. However, international shippers should know that direct international ocean freight carriers (VOCC or steamship lines), in even of damage and loss in international shipments, typically would be liable to up to $500 per customary shipping freight unit.

It is very important to understand that in international shipping of ocean freight, a customary shipping freight unit, depending on how it states in ocean freight bill of lading, would be either a shipping box or pallet or whole multimodal sea freight container. Also direct international ocean carrier's (VOCC or steamship line) liability may be limited to up to $1500 per entire international ocean freight shipment.

In order to get an extra protection for your valuable international ocean freight shipment, you MAY REQUEST us to obtain an Insurance Certificate issued by a Marine Cargo Insurance provider(s) to consignee's (recipient's) name on your behalf. Otherwise you may insure your international ocean freight shipment with any Marine Cargo Insurance provider of your choice.

Note: By default we request marine insurance from Marine Cargo Insurance providers to names of consignees (cargo recipients) as stated in shippers booking requests and ocean freight bill of ladings thereafter. If you need to insure your international shipment to other name listed in your bill of lading (shipper's or notify party name for example), then it MUST be requested in a separately email and re-confirmed by us.

1. Important to understand: All risk cargo marine insurance coverage certificate for international seafreight shipments can be obtained for professional packed goods (goods in original manufacturers cartons, crates etc or goods packed by professional packing companies that provide proofs on packing). Self-packed goods can be covered only on total loss basis. Certain conditions may apply.

What is the difference between All Risk and Total Loss coverage in the international seafreight shipping industry?

All Risk marine insurance in international seafreight shippings covers any possible loss or damage occurred to your cargo during the ocean transit: fire, water damage, theft, partial loss, breakage, etc. It is the most encompassing coverage available in the international seafreight shipping industry. This type of insurance is recommended for most international ocean freight shipments: household goods, automobiles, electronics, retail products, etc.

Total Loss coverage for international seafreight shipments only applies to cases of complete loss, meaning that your whole international seafreight shipment must be lost or destroyed for this coverage to apply. It will not cover any partial loss or damage.

2. AMID Logistics, LLC is an U.S. Freight Forwarder, but a marine insurance provider. In event of insurance claim AMID Logistics, LLC is NOT responsible for any damages, missing cargo etc.

We hold several accounts with marine insurance providers and, upon customers requests, we may obtain insurance certificates on our customers behalf. Then in event of insurance claim:   

  • If an insurance certificate on an international sea freight shipment have been obtained via our account with a marine insurance provider, then the claim will be processed by the marine insurance company's claim settling agent located in the country of destination. Complete contact info of claim settling agents should be available in insurance certificates issued to our customers.
     
  • If an international sea freight shipment supported by us have been insured by a third party marine insurance provider (not via our accounts), then in case of insurance claim, please direct your insurance claim to the insurance provider.
     
  • If an international sea freight shipment have not been insured, then all claims are to be directed to the ocean freight carrier's destination agent indicated in your bill of lading OR to a steamship line (direct carrier, VOCC) used in your international shipping from the USA. See the limit of liabilities of direct carriers above. 

If your request AMID Logistics, LLC to obtain a marine cargo insurance certificate on your behalf then, for international shipping of ocean freight with us, typically, insurance rates vary by type of commodity and service provided:

I. Economy LCL sea freight service:

  • Commercial international ocean freight shipments proof packed: $2 per $100 (2%) @ insured value declared
  • Commercial international ocean freight shipments self packed: $3 per $100 (3%) @ insured value declared
  • Boxed or crated personal effects shipped using international ocean freight service: $3 per $100 (3%) @ insured value declared

II. FCL sea freight service:

  • Commercial freight with insured value up to $25,000 -- 1.5% @ value declared
  • Commercial freight with insured value up to $50,000 -- 1.3% @ value declared
  • Commercial freight with insured value up to $100,000 -- 1.1% @ value declared
  • Commercial freight with insured value above $100,000 -- please request an insurance quote in a separate email in advance.
  • Household goods and personal effects, regardless of total value declared -- 3% @ insured value declared

III. Shipping cars and other types of vehicles in containers or RO-RO:

  • Vehicles with insured value up to $25,000 -- 1.5% @ insured value declared
  • Vehicles with insured value up to $50,000 -- 1.3% @ insured value declared
  • Vehicles with insured value up to $100,000 -- 1.1% @ insured value declared
  • Vehicles with insured value above $100,000 -- please request an insurance quote in a separate email in advance.

$75 is minimum per insurance certificate. Deductibles vary from $300 to $1500 or even higher. Check your insurance certificate regarding the deductible. Remember that you can insure your international ocean freight shipment with any Marine Cargo Insurance provider of your choice.

IMPORTANT: In order for us to obtain an insurance certificate on your international ocean freight shipment, a Commercial Invoice for commercial sea freight shipments or detailed Valued Packing list for international personal ocean freight shipments MUST be submitted in advance. (THIS DOES NOT APPLY IF SHIPPING CARS OR OTHER TYPES OF MOTOR VEHICLES).

You may email or fax your international shipping document to us OR fill it out online and submit it via this link. This link will be also sent to you in email with our international shipping instructions on your ocean freight shipment upon your booking request in our website.

If you request to obtain a marine insurance certificate to your international ocean freight shipment at a time of booking, then an insurance premium will be added to our final invoice and the marine cargo insurance provider's insurance certificate be attached in PDF file to our final invoice.

TYPICAL CONDITIONS THAT APPLY ON INTERNATIONAL SHIPPING MARINE CARGO INSURANCE COVERAGE (For reference only):

All risks of physical loss or damage in the international shipping industry is subject to: Institute Cargo Clauses (A) CL252, and/or Institute War Clauses (Cargo) CL255, and/or Institute Strikes Clauses (Cargo) CL256, and/or Institute Radioactive Exclusion Clause CL370 Institute Cyber Attack Exclusion Clause CL 380. Institute Classification Clause 1.1.82. Institute Replacement Clause CL372. Excluding Electrical and mechanical derangement unless caused by a peril insured against. Automobile shipments are insured all risk excluding loss or damage to any and all preexisting damages as well as existing scratches marring denting and chipping are excluded from coverage. Preloading condition reports required on all auto shipments. Deductible USD 500 Radios are excluded. Coverage for autos is port to port. Household Goods shipments which are professionally packed are insured all-risk excluding any and all losses for pre-existing damages such as all scratches marring denting and chipping which are excluded. Itemized inventory prior to shipments are required. Owner packed goods are insured total loss only. (fpa only)

The following commodities are excluded under insurance providers program and cannot be insured: antiques, collectibles, bank notes, cellular telephones, computer chips and memory modules, dangerous goods ( red label), hazardous materials, fine art, heirlooms, flammables and explosives, fruits and vegetables, jewelry, laptops and other portable computers, lcd plas tvs and monitors, live animals, nuclear fuel, precious metals, precious stones, securities, stocks and bonds, tobacco products, valuable papers, manuscripts, glass, products shipped by barge.

All pre-existing damages and conditions are absolutely excluded. It must be absolutely clear from the condition reports that the alleged transit related damage occurred during transit. If repair of Automobiles, boats, and/or yachts is done prior to a survey report being taken by a licensed surveyor, coverage is invalidated. Household goods shipments which are professionally packed are insured all-risk excluding any and all losses for preexisting damages such as all scratches marring denting and chipping which are excluded. Household goods are covered on a ACV Basis and proof of valuation, such as invoices, bill of sales, are required to substantiate a claim absolutely. There is no coverage for storage of household goods shipments and coverage is strictly on a door to door basis. Exceptions must be noted on the destination truckers' delivery receipt at the time of delivery. Itemized inventory prior to shipments are required. Owner packed goods are insured total loss only. (fpa only) Insurance ceases once delivery occurs at either warehouse, or residence.

In addition, in the international seafreight shipping industry, the following are excluded from coverages:

The repainting of cars. Jewelry, currency, valuable/negotiable papers and items of intrinsic value of any kind are NOT covered for any reason. Please do not pack these items or leave them on the premises during your move. Damage to items in cartons packed by owner (PBO) or to prepackaged items preventing a visual inspection of condition. Items received and/or transported directly in packaging from manufacturer or retailer. Damage by mold, moth, vermin, or mildew. Pairs and sets: you will only be able to claim reimbursement for the item damaged, not the entire set. Damage to electrical equipment, unless there are external signs of mishandling. Damage due to riots, war, terrorism, acts of god or governments. Musical Instruments are excluded. Loss in market or appraised value. Damage to electrical equipment, unless there are external signs of mishandling Excluding any types of breakables and or computers/electronics /cell phones, glass shipments without prior agreement of underwriters Fine arts, antiques, heirlooms are not covered unless an appraisal is submitted prior to the issuance of insurance. Household Goods shipments are insured on an actual cost value basis less depreciation. Household Goods are not covered on a total replacement basis

 

 
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