The international shipping industry is responsible for carrying the majority of global traded goods and every day cargo valued in the billions of dollars move in and out of ports around the world. With this busy international traffic anything unexpected can happen and cause damages or loss on the cargos. In order to reduce possible financial losses, importers and exporters may purchase cargo insurance to protect against natural disasters, inclement weather, shipping accidents, thefts and other damages.
Carriers do in fact have liability as per their bill of ladings; however, you can not rely on the carrier to reimburse you for your loss or damages. First of all, steamship lines are accepting some coverage for the damages or losses under their responsibility while the goods are in their custody. This means that carrier liability does not cover door to door. Carriers are also exempt from certain causes of loss or damage (up to 17 under certain international conventions). From a monetary point of view, a carrier’s liability is often very limited. [Read more...]