One More Reason Marine Insurance is an Absolute Must!

A couple of months back I posted an entry regarding the importance of marine insurance.  An additional and very important reason I failed to mention is that the proper Marine Insurance policy covers the freight against theft or damages during the intermodal portions of the shipment as well.  In other words, the word “Marine” in Marine Insurance may lead some to believe it is only for the ocean portion of the shipment.

A case in point would be if you are importing an LCL (Less than Container Load) shipment to Atlanta from Shenzhen, China.  Let’s say that the routing will be Shenzhen to Atlanta via Los Angeles.  In this scenario, the freight will be stuffed into a container in Shenzhen along with other customers’ freight.  Once it arrives in Los Angeles, the container will be drayed to a CFS , where it will be unloaded.  Then it will be stuffed either into another container, or trucking van that can be loaded onto a rail flat car. The freight is then moved via rail to Atlanta.  Once in Atlanta, it will be delivered to another CFS, again unloaded and finally (once Customs Cleared) made available for pick up by the delivering trucker or the consignee.

As you can see, the freight makes several stops along the way and is handled several times.  This increases the chance for damage or theft to occur.  We tend to not think about theft as a possibility, but there is evidence that freight robberies are on the increase.  Freight Watch International has published their report titled 2013 Global Cargo Theft Threat Assessment.  One of the first things that jumps out in the report is that the U.S. Russia, Mexico, Brazil and South Africa are most at risk for cargo theft.

An incredibly unfortunate and ironic thing is that your freight may not be what the thief is attempting to steal!  You have to keep in mind that if your freight is in a container with someone else’s high value electronics, the entire container could be taken and your freight just dumped somewhere.  So unless it is just very easy for the freight to be written off as a loss and/or get a replacement shipment I would strongly recommend purchasing the insurance.  

Please feel free to post comments!


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About jaymcgheelogistics

I am a Logistics Professional with over 25 years’ experience in the combined fields of procurement, purchasing, customer service, sales, trucking, air freight, freight forwarding , supply chain and international trade industries. Please feel free to contact me at

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