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Pro Tips

When Was The Last Time You Reviewed Your Cargo Insurance Plan?

When was the last time you reviewed your cargo insurance plan?

Many companies don’t realize that they may be over-paying for insurance and not getting the coverage that they expect.  In other words, they are assuming more risk.

If you are shipping at least $300,000 worth of goods, with at least one shipment being overseas, you should consider an All-Risk annual marine insurance policy.

Why?  All-Risk insurance is more cost effective than Shipment-by-Shipment.  If you are using Shipment-by-Shipment insurance, the cost can range from $0.30 – 0.60 per hundred dollars of coverage.  While the cost all-risk annual policy can be $0.20 per hundred dollars of coverage.

From a coverage standpoint, Shipment-by-Shipment insurance most likely does not cover:

  • Acts of God, i.e. heavy weather, tsunami, earthquake, fire, etc.
  • Acts of war, i.e. strikes, riots, piracy
  • Latent defects in the hull or machinery
  • Criminal acts or negligence by the crew
  • Theft
  • General Average

Benefits of All-Risk insurance are:

  • Easy to manage and administer – written once a year
  • Covers any physical loss/damage from any external cause, including the items not covered by Shipment-by-Shipment insurance (Acts of God, theft and General Average)
  • Continuous coverage – overseas, domestic transit and while in the warehouse
  • Local representation – an American insurance company – not a foreign based company in China for instance

If you don’t know how to get started to assess your cargo liability situation – please contact your logistics solutions provider for assistance.

Follow this tip and you’ll manage your risk better when shipping your products or equipment.

Categories
Pro Tips

Looking for an Easy Way to Reduce Unexpected LTL Fees and Charges?

Include your product NMFC code in the product description on your Bill of Lading (BOL).



LTL Carriers are more likely to re-classify the product being shipped if the NMFC code is not listed on the BOL – resulting in higher freight charges and fees.

If you don’t know the NMFC codes for your product(s), you can locate them in the National Motor Freight Classification Book.  You can either purchase a book from NMFTA.org for a nominal fee or contact your logistics solutions provider for assistance.

Follow this tip and you’ll prevent re-classification fees and unexpected increases in freight rates.

Categories
Pro Tips

Why You Need to Regularly Review Your Carrier Safety Ratings

Review of carrier safety ratings on a regular basis is one criteria when considering the addition of a new carrier.

You can go to the Motor Carrier Safety Rating System, www.ai.fmcsa.gov and look up any carrier’s safety rating on line.

Good rule of thumb to use, any carrier that has BASICS (Behavior Analysis and Safety Improvement Categories) ratings over 70.0 is a risk, especially the Vehicle Maintenance rating.

If you don’t know how to get started to assess carrier safety ratings – please contact your logistics solutions provider for assistance.

Follow this tip and you’ll manage your risk better when shipping your products or equipment.