Should you insure your Cargo?
Freight forwarders generally do not insure your shipment automatically, although depending on the nature of your goods and value they can usually arrange full marine insurance on your behalf.
- Comprehensive Coverage: Protects goods in transit beyond the limited liability of carriers.
- Arranged on Your Behalf: We facilitate insurance through specialist insurers, acting as an intermediary.
- Risk Management: Avoid financial exposure beyond carrier liability.
Need Marine Transit Insurance? Contact Us
The Purpose of Marine/Transit Insurance
Marine/transit insurance provides comprehensive coverage for goods during transportation, addressing risks beyond the limited liability of carriers or agents.
- Arrangement of Insurance: Barrington can facilitate freight cargo insurance upon receiving written instructions from the freight-paying party. It’s essential to note that Barrington acts as an intermediary; the actual insurance contract is between the client and the insurer.
- Coverage for Fragile Items: Specifying the need for coverage on fragile goods, such as glassware, is crucial, as premiums for these items are typically higher.
- Claims Process: With marine freight insurance in place, insurers generally process valid claims promptly and subsequently seek recovery from the carrier or agent under subrogation.
- Absence of Insurance: Without marine/transit insurance, clients rely solely on the carrier’s or agent’s limited liability, which may not cover the full value of potential losses.
- Valuation and Premiums: Premiums are calculated per £100 of the insured value, typically encompassing the delivered value plus an additional 10% to account for potential freight costs of a replacement consignment.
- No Claims Bonuses: Marine/transit insurance policies do not offer “no claims bonuses.”
- Consequential Losses: These policies do not cover consequential losses. Barrington, along with carriers and agents, does not accept liability for such losses, as outlined in our terms.
- Claims Settlement: Claims should be addressed separately from standard trading accounts and cannot be deducted from Barrington’s sales ledger.
If you have a shipment with us and require an insurance quotation, please contact our operations team today: give us a call 01268 525 444 or email us info@barringtonfreight.co.uk.
Cargo Owners and General Average Following the Ever Given Incident in the Suez Canal
In March 2021, the Ever Given, a container vessel operated by Evergreen Marine, became lodged in the Suez Canal, blocking one of the world’s most critical trade routes for nearly a week. The incident disrupted global supply chains, leading to significant delays and financial repercussions for cargo owners.
General Average Declaration and its Impact on Cargo Owners
Following the incident, the vessel owners declared General Average (GA)—a maritime principle requiring that all stakeholders in a voyage (including cargo owners) proportionally share losses incurred to save the vessel and cargo. This declaration meant that cargo owners had to contribute to the costs of refloating the ship and associated expenses before their goods could be released.
Financial Burden on Uninsured Cargo Owners
Cargo owners who did not have marine insurance (such as cargo insurance covering GA events) faced significant unexpected costs. Without insurance:
- They had to pay GA contributions out-of-pocket before retrieving their cargo.
- Contributions were based on the value of their goods, meaning higher-value shipments faced larger financial exposure.
- Goods remained stuck in legal limbo until payment was made, leading to further supply chain delays and financial losses.
The Ever Given incident highlighted the risks of shipping cargo without adequate marine insurance. Cargo insurance typically covers General Average contributions, ensuring that the insurer pays the necessary charges, preventing financial strain on businesses. The event underscored the importance of proper risk management in international trade, particularly for cargo owners relying on global shipping routes.
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Comprehensive Marine and Transit Insurance for Secure Shipments
How Does Marine and Transit Insurance From Barrington Freight Protect Your Shipments?
While freight carriers may offer limited liability, this may not fully cover the value of your goods in the event of loss or damage. Marine and transit insurance provides additional protection by ensuring shipments are covered for their full value rather than relying solely on a carrier’s restricted compensation limits.
At Barrington Freight, we arrange freight cargo insurance on behalf of our clients through specialist insurers. This means we do not provide the insurance ourselves but facilitate comprehensive cover, ensuring goods in transit are protected against unforeseen circumstances. Our team advises on the right level of protection, whether for road, sea or air freight, giving businesses peace of mind when moving valuable cargo.
If you require additional coverage for your shipment, contact our team today for expert advice and a no-obligation quote.
Choose the Right Marine Freight Insurance for Your Commercial Priorities
Selecting the right marine freight insurance depends on the type of goods being transported, the shipping route and the level of risk involved. Businesses moving high-value cargo, such as machinery or electronics, should opt for all-risk insurance, covering damage, theft and loss. Lower-value or bulk shipments may be suited to total-loss coverage, which provides protection only if the entire consignment is lost.
At Barrington Freight, we assist clients in navigating the complexities of insurance for cargo, helping them choose policies that align with their specific shipping needs. Whether you require one-off cover or regular protection for frequent shipments, we ensure a seamless process with no hidden costs.
Protect your shipments with confidence. Contact Barrington Freight today for expert shipping services and a competitive cargo freight insurance quotation.
Key Information on Marine/Transit Insurance with Barrington Freight
The purpose of marine/transit insurance is to cover the goods during transit for “All risks/total value” of the consignment and not to rely on the limited liability of agents or carriers.
- This can be undertaken by Barrington on behalf of the client upon receipt of written instructions. (Barrington cannot arrange such insurance other than with the freight paying party.)
- If Barrington is requested to arrange transit/marine insurance, it is arranged ON BEHALF OF THE CLIENT and it is not Barrington actually insuring the goods. It is the same as if the client arranged the insurance himself through an insurance company or broker. Barrington will charge a client for this service.
- A customer can probably obtain cheaper premiums through their own brokers.
- It is important to clarify whether breakage insurance for fragile goods is required or not, such as glassware. Premiums will be higher for breakable items.
- If transit/marine insurance is implemented, and if there is a claim, normally insurers would settle any bona fide claim expeditiously and then claim from the carrier/agent under subrogation. The carrier/agent would then normally settle with the marine/transit insurers within the terms of their liability, be it CMR or other relevant terms.
- If a client does not take out a marine/transit insurance cover, then they rely on the relevant terms of the carrier/agent should there be a claim, and depending on circumstances, the total value of such a claim may not be fully covered and this is at the client’s risk, not that of the carrier or agent.
- Marine/transit insurance is value-based at a premium per GBP 100.00 insured. Normally the insured value is the delivered value plus 10%. The 10% effectively covers the cost of freight for a duplicate consignment should the first one be lost. If a claim is made against such a cover, it does not mean that premiums would normally be increased unless there is a succession of attrition claims. Also, there is not normally an excess applicable unless there is an inherent risk of damage being sustained during transit, e.g. bags/sacks which can easily be snagged.
- “No claims bonuses” do not apply to marine/transit insurance.
- Consequential loss claims are not covered by marine/transit insurance and are not accepted by Barrington or any carrier/agent for whatever reason – as is indicated in our terms.
- Claims cannot lawfully be deducted from the Barrington sales ledger account. They are to be dealt with separately from the normal trading account as indicated in our terms. If you have a shipment with us and wish to obtain an insurance costing, please contact our operations staff today. Please contact us immediately for a quotation.
**Insurance regulations mean that we cannot arrange insurance on personal effects shipments or on non-commercial movements**
Arrange Marine Transit Insurance for Your Shipments – Contact Us!
Safeguard your cargo with marine transit insurance arranged through our trusted network of specialist insurers. We help businesses secure the right level of cover to protect their goods against loss or damage while in transit. Whether you’re shipping high-value items or bulk consignments, we’ll guide you through the process to ensure peace of mind. Get in touch today for expert advice and a competitive quote!
