Marine insurance policies are not anything that, as a shipper, you should be having any doubts considering. What you only should be inquiring about here is whether the policy that you are getting is enough to cover your shipping concerns. Ideally, these concerns range from losses to damages. And, it does not matter whether you own the shipping facility or the cargoes, or you run the terminal. All these are candidates of obtaining marine insurance policies as insurance cover for the goods in transit.
Get the right policy
With the right policy, you get comprehensive insurance to curtail your exposure to any financial loss or damage. But, it is quite unfortunate that not every shipper values the importance of full-cover marine insurance. As a result, they suffer great losses from taking up such risks when they lose cargos, or global shipping policies change, and they have to reroute. Other charterers, as well as shipowners, keep facing unforeseen disputes in high magnitudes that could disrupt day-to-day shipping operations. In the worst case scenarios, these disputes have even rendered some shipping companies bankrupt. But, all these can benefit from freight demurrage and defence.
So, why an FDD?
To curb any risks to cargo theft
One of the most unexpected and costly losses any shipper can incur is from cargo theft. Moreover, the impact trickles down to affecting trust in manufacturer-distributor and distributor-supplier relationships. With the rise in fake identities and fictitious pickup processes, cargo thefts keep being on the increase. And, on that, every cargo is a potential target. So, buy an FDD insurance early enough before you encounter cargo theft.
To cover at-sea container losses
World Shipping Council records that shipping companies have recently been losing about 1390 containers each year at sea. Some of these cases are from catastrophic events, but a high number of the losses are from ship malfunctions. Unbalanced loading of containers has also been among the leading causes of these at-sea container losses. The council, however, notes that this is a lower figure to the number that they lost in the previous three years. But, while that is a great relief to shippers, do not wait until you suffer the financial strain of losing your cargoes at sea. With an FDD, you cover these losses to every extent.
To cover shipwrecks and pirate attacks
Shipwrecks and pirate attacks are nearly impossible to predict. The chances are even getting higher year by year with the increase in the number of pirate attacks. Climate change has also contributed a lot is the rise in sea storms and tsunamis, which have capsized cargo ships and destroyed cargo loading terminals. These have cost shipping companies unexpected multi-billion losses which most shippers have found it difficult to recover from.
Cover every possible damage
Cargo damages are a common cause of financial loss in shipping. Even with every safety measure in place, damages can happen as a result of inadequate ventilation, and faulty packaging. Add to that the aforementioned reasons to insure your cargo, containers and terminal, and you will learn that there is little that you can do to avoid these cases. And, these are to mention but a few. However, with freight, demurrage and defence insurance you get full-cover insurance for each of these instances.