Cargo transportation (freight forwarding) is carried out as per an agreement, national transport regulations and international transport conventions.
Responsibility, taken over by the freight forwarder and logistics company, is well-defined and limited.
This professional responsibility, but not the cargo, is insured by the freight forwarder and logistic company. The carrier, getting a part of the shipper’s profit, cannot be held liable for risks within the scope of total cargo turn-over of the owner.
The carrier (the forwarding agent) is held liable for loss or damages to the cargo incurred in the following cases:
- Act of God;
- Hazards of accidents at sea;
- Salvage operation, search and rescue operation;
- Fire on board not caused by the carrier’s fault;
- Default in navigation;
- Other circumstances, not caused by the carrier’s fault, the fault of his workers or agency.
Moreover, when shipping, the general rules are applied:
- Carrier responsibility is limited in the majority of cases of 2SDRs (2.5 US dollars) per 1 kg of gross/net weight or 500 SDRs per each cargo piece;
- When the general average is declared by the carrier, the shipper should lodge his part of expenses to save a ship. Otherwise the cargo won’t be handed over.
- In case of collision due to the fault of both parties, the carrier may require the shipper to lodge part of expenses, which is accounted for by this carrier.
International truck services:
- The carrier is released of liability if certain inevitable circumstances and consequences take place (armed robbery, car accident caused by the fault of the external party, fire etc. are considered to be the Act of God).
Moreover, during truck services the following general rules are applied:
- Carrier’s liability cannot exceed the value of goods at the moment of cargo dispatch (invoice cost) or 8.33 SDR (12 US dollars) per 1 kg of gross/net weight.
- If there are any hitches in the execution of a treaty not caused by the fault of the carrier, the later has a right to unload the cargo at the warehouse for the shipper’s expenses.
Other laws and warranties (air services, warehousing) involve not less severe liability limitations. During combined transportation it is even harder to determine the liability.
Based on the mentioned above, cargo insurance becomes a rational and wise solution for all kinds of transportation.
Insuring your cargo, you may expect receiving the value of transported goods being insured by the insurer, in case of Act of God, specified in the insurance policy.
You will be paid damages for the cargo insured caused by the events described in the contract agreement. Moreover, losses, expenses and general average contribution (when shipping) and all expenses incurred in case of cargo salvage, recoup and expenses incurred while determining the extent of damages, if compensation of such losses is stipulated in the insurance policy, will be paid to you.