You hear about it every day. A cargo ship en route to their port of destination runs into a weather situation that causes several containers to tumble into the sea. Or a truck on the highway has an accident. Or simply, your package got damaged while on a flight to your customer. Either way, you as a shipper could end up with a damage/loss claim, and this is where it gets a little tricky.

If you neglect to purchase freight insurance for your move, you will find that the standard limits of liability for most carriers is not sufficient to cover your loss. For ocean containers, carrier responsibility can be limited to up to $500 per package (the foggy part is the definition of “package” as the law is very fuzzy… The package can be defined anything from a box, crate, pallet, and even the entire container!). For truck and air freight, limitations vary by carrier, but can normally be anywhere from $0.25 to 1.00 per pound. And then there is the courier services that normally have limits of $100 per carton.

Please reach out to your HNM Global Logistics Customer Service Representative for more information

Unless your package is lost by the carrier, damage claims are typically denied due to the carrier stating the goods were “insufficiently packaged”. Regrettably, unless they run over it with their forklift or have water damage due to a leak in a container, it is extremely rare for a carrier to honor
damage claims.

Freight insurance will cover your potential loss. The insurance will cover you for loss that is in excess of the standard limits of liability. Your “invoice value” is the normal recovered amount. There are some limits (licensing fees that may be recoverable from the license holder, etc.), but this coverage gives you the added peace of mind while your goods are in transit.