Your cargo is valuable and its partial or total loss could seriously impact the financial health of your business. International conventions regulate the carrier’s maximal liability compensation for each transportation mode.
The Warsaw Convention for Airfreight, the Brussels Convention for Ocean Freight and the CMR (International Carriage of Goods by Road Contract Convention) for freight travelling by road in Europe and in the Russian Federation.
Liability limitation table for each transport mode:
Air Freight: 16.5837 SDR / kg
Road Freight: 8.33 SDR / kg
Ocean Freight: 2.00 SDR / kg or 666.66 SDR / piece (*)
(*) Whatever pays the most
Obviously in most cases the value of your cargo will exceed the above limitations, as a result, in case of partial or total loss of your cargo, you may be exposed to severe financial losses. We highly recommend comparing your cargo’s value with the above limitations, and if its value exceeds those limitations, we highly recommend considering marine cargo insurance.
Additionally, when your cargo is transported by ocean freight, you also need to protect yourself against liability in the eventuality of General Damage.
Definition of General Damage;
General Damage is the legal status the ship and the shippers consider when some goods are thrown overboard or extra expenditure are made in the interest of the ship, the crew and the goods during the voyage.
E.g. Facing a hurricane, the captain may decide to enter the closest sea port in order to shelter the vessel.
The resulting extra expenditure (port charge, pilot, berth fees...) will be sustained proportionally by the owners of the ship and the cargo. The extra expenditures resulting from this stop are called common damage, and each party will then be liable for payment of the part corresponding to the value of the goods saved.
A rough calculation would be:
Common Damage amount / (vessel value + total cargo value) x (your cargo declared value) = your liability
In this eventuality, you would receive your cargo, but still be liable for payment to the shipping line.
Marine insurance will also protect you against the consequences of common damage.
We can obtain marine insurance for you on short notice, as long as you send us the details of your transportation, the goods do not necessarily have to be transported by COSMO FREIGHT ®.