Cargo ship on fire

Cargo Damage: Its forms and How You Can Protect yourself from the Financial Risk it Poses.

GLC provides a flat rate cargo insurance that can protect your cargo. Below, are detailed descriptions of different types of cargo damage.

Containers

Ocean freight mostly uses standardized containers this helps with cargo damage as the container protects the merchandise and allows for easy transport.

Containers come in several different varieties made with steel walls that can be stacked on top of each other. Shipping containers are all roughly the same height and width, the only difference being the length coming in both 20-foot and 40-foot and there is also a taller version called the high-cube which adds a foot of height to the containers. There are containers for all types of shipping. Learn more about container types along with sizes here.

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Boxes Tipping Over

Cargo damage can occur at any point in the shipment cycle due to the extended duration of the trip and is exposed to many environmental factors. The cargo is handled at multiple locations and by different people throughout the journey which can sustain damage at any point.

 

The classification of physical damage is where goods are damaged due to handling improperly which include drops, bumps, rolling, being hit by machinery, or knocked while on the water. Physical damage can be less likely if stowage is planned properly with correct lashing, dunnage, or chocking.

  • Water Damage
    • Wet, rainy conditions or sea water ingress into the container can cause water damage to cargo.
    • Ocean freight can experience all different types of weather, the condition of the container is the main factor on whether cargo will be damaged by water.
    • In addition to rain and sea water, temperate climates can cause the container to sweat, condensing water droplets on the inside of the container. Proper ventilation is needed to help prevent “container rain,” from happening.
    • Ocean cargo ships can also experience flooding in different areas
Cargo Ship Tipping over
Contaminated Boxes
  • Contamination damage
    • Improper storage can lead to contaminated goods.
    • Exposure to weather conditions can cause product pollution.
    • Lack of cleaning of container
    • Reefer or “refrigerated” container that fails
    • Infestation of insects or animals

Theft

As goods travel through global trade hubs, like Los Angeles and Yantian, they are susceptible to a variety of cargo crime risks, including

  • Theft
    • Insider participation,
    • Fictitious pickups
    • Pilferage
    • Counterfeiting
  • Natural Disasters/Weather
    • Bad weather can play a major role in damages to cargo. Crossing oceans can lead to challenges between waves and weather.
Man in dark clothes with a freight truck

It can be very frustrating if you have been waiting for an important shipment and when it arrives it’s damaged. Here’s a short list if things you can do to protect your ocean freight.

  1. Nothing is 100% for certain, which is why it’s important to have cargo insurance. GLC offers flat rate cargo insurance for all shipments plus our suite of supply chain services.
  2. Picking the correct container for your needs
  3. Careful planning for weight and size needs.
  4. Careful planning of stacked materials and there tipping points
  5. Ensure containers are cleaned and well maintained

GLC makes protecting your cargo in an easy and effective manner. We provide fixed rate All Risk Cargo Insurance which can be as low as $45.

Who Can Be Insured?

Any customer: Importers & Exporters, USA Domestic Shippers, Overseas Agents, Customer Product Stored in a Warehouse.

 

What are the Real Limits of Carrier Liability?

 

What are Carriers Responsible for?

Not much. For that reason, All-Risk Insurance Cargo covers any fortuitous event outside the carrier’s control. For example, extreme weather, rough seas, flooding, tsunamis, earthquakes, levee breaks, lightning strikes etc..

If you are interested in any of GLC’s supply chain services, we have you covered from start to finish. Please fill out the following form to get started

Animated figures displaying logistics