Got Marine Cargo Insurance? [What The Freight?!? - Issue 002]

  

 Email Article  

Tweet  

  

  

  

Join Harry Ocean as he neurotically navigates the wavy waters of cargo importing and exporting in "What the Freight?!?"

In this issue, Harry Ocean speaks to Billy O'Lading about Marine Cargo Insurance for his most recent shipment...

The Moral of the Story is to always purchase Marine Cargo Insurance.  For most goods, 1.5% of the value can secure ALL RISK Coverage.  A few exceptions would be:

• Automobiles
• Ceramics, Chinaware, Glassware
• Marble, Granite
• ...

Goods such as these have different surcharges or deductibles attached to them.

If you are considering purchasing Marine Cargo Insurance feel free to review our guide:

OR More In Depth Information on Marine Cargo Insurance

FAQ: Why are the shipping rates so volatile?

  

 Email Article  

Tweet  

  

  

  

Q: Why are the shipping rates so volatile?

A: While there are several factors involved,

• The primary is market demand.  Traditionally from Dec through April for imports, especially from Asia to the U.S., it is called the "slow season." Because the retail market slows down after Christmas.  However from mid January through early February there is an upsurge of cargo moving to beat the Chinese New Year deadline whereby factories all over China shut down for weeks.  This usually keeps rates high as there is always space problems for cargo getting on vessels.  From May through November this would be the "peak season" where there is a big demand for cargo moving into the U.S., so the Carriers raise the rates during this period, with the GRI (general rate increase), and PSS (peak season surcharge).

• Another factor is fuel, or what is called the Bunker Fuel factor.  This is a floating surcharge that the Carrier's can change when oil prices rise or fall. It is called the BAF.

(Photo from www.wallcoo.com)

• Another factor is when the Carrier has increases in costs such as when Terminal costs rise, especially with Unions, congestion problems, etc. Or when the U.S Rail costs increase for similar reasons.  This is where the Carriers can add in new surcharges which have happened in the past and eventually get absorbed into the "all in " rate quoted.

• Most recently the primary reason for rate increases, was a knee jerk response to the tremendous downturn in traffic and volume as a result of the current U.S. recession since '08.  This downturn caused many carriers to lose about 50% of their previous volume and while their costs remained the same or higher, and their revenue all but disappeared, they found themselves the beginning of this year looking at an average of $500, 000,000 in losses per Carrier.  So from late '09 until May of '10, most Carriers put a large portion of their fleet out of commission off the coast of Singapore.  Thereby creating a vessel shortage, or a false space problem.  This gave them all excuse to raise their rates again, in order to salvage their businesses.  This type of thing is not normal.

See our Blog post about the dramatic rate increases during early 2010.

How an International Shipping Company Helps in Moving Internationally

  

 Email Article  

Tweet  

  

  

  

Guest Blog by John Gibbons

Intro:

An international shipping company is a multitasking firm that takes care of not only the safe transfer of your commercial and household goods overseas, but also packing, loading and customs duty clearance. There are ample amount of international shipping companies which offer different shipping quotes. Compare different quotes before choosing the best shipping quote for you.

-------------------------------------------------------------------------

There are a lot of benefits for hiring an international shipping company to transfer your commercial or household goods. It isn't a child's play to manage international shipping custom clearance. An international shipping company will do that for you.

Peace of mind
You can sit back at home relaxed when you hand over the responsibility of transporting your goods to an international shipping company. You can enjoy a sound sleep, while your valuables are getting shipped to all corners of the world by the shippers. They will take care of not only the most fragile but the most heavy items.

Security during the transit of goods
A shipping company ensures safety and security of the goods to be transferred. Insurance cover is provided for the goods, so that customers should be able to get the claim, if the goods either got lost or damaged in the transit.

New shipping solutions
Once you contact an international shipping company, they will provide you with new shipping solutions. Their services include things like packaging, trucking, air and ocean shipping, storage, customs clearance and many other responsibilities. They will suggest different shipping solutions based on your requirements.

Customized shipping facilities
One of the most important benefits of hiring an international shipping company is that they are able to offer you customized shipping facilities. The services can vary as per the requirements of the client. Though there are hidden charges for some additional services performed.

Compare shipping quotes
Before hiring a good international shipping company, make sure that you have compared the quotes  of other shipping companies, so as to get the best one. Some of them charge exorbitantly for providing shipping services. Do ask, whether there are any hidden charges  involved. Also ask for some references, to know that they are an authentic shipping company.

Knowledge of all custom policies
A popular international shipping company is always aware of all the facts and other international movement protocols, which liberates you of all the worries pertaining to the safe landing of your goods in a new country.

All these factors combined make International shipping companies popular these days. Make sure that the shipping company you choose must be well acquainted with the freight services to different international destinations. Good shipping companies do have ties with custom brokers, which help in avoiding any delay in transportation of your goods.

-------------------------------------------------------------------------

Best Regards,
John

Contact raymond@universalcargo.com to participate in our guest blogging series.