Okay, let’s say you’ve called an international freight forwarder to pick up your 400 cases of consumer goods being manufactured in China. It will travel intermodal — ocean to Vancouver, rail to Toronto, road to your dealer network, and 10 cases by air to Montreal for your three dealers there. You’ve got $75,000 worth of your product tied up in this shipment and you assume your freight forwarder has got you covered if something goes awry.
Wrong!
Unless you purchase insurance for your shipment, you won’t get much if it’s damaged in transit. ALL freight forwarders and carriers limit their liability and the carriers will only give you a few dollars per pound or kilo regardless of its true value to you.
The amounts vary by carrier type and, in the case of ocean transport, it also varies by the port of entry (CDN/US). Unfortunately, without insurance, you could be at a loss for the rest of the value of your shipment if some or all of it is damaged or stolen somewhere along the line.
What’s more, as the shipper, you have to determine which carrier was responsible for the damage, where it occurred and prove they were negligent! No one is going to do that for you.
But nothing will go wrong, will it?
Why tempt fate? In the $75,000, 100 kilo example above, if it was damaged by the air carrier, you would receive only $20 per kilo or $2,000 – if the air carrier is found to be liable.
For an additional $262.50 in insurance for that shipment, if an insured peril caused the damage, you would receive the full value of the damaged product, including any and all costs involved in surveying, repacking, etc. By insuring with DB Schenker you get all risk coverage for both your cargo and transportation cost, not to mention peace of mind.
Leslie Wells, RIBO Licensed Insurance Broker, The CG&B Group Inc., is
Exclusive Servicing Brokerage for Schenker of Canada Limited, Reach Leslie at LeslieW@cgbgroup.com, or call 905-405-5367.
Canadian Clients – For more information or to obtain a cargo insurance quote email insurance.canada@dbschenker.com
U.S.A. Clients – For more information or to obtain a cargo insurance quote cal 1 800 225 5229 or email usainsurance@dbschenker.com
