Something To Think About

C-TPAT: What is Customs-Trade Partnership Against Terrorism?

C-TPAT is a voluntary government-business initiative that builds cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT is widely recognized as one of the most effective means of providing the highest level of cargo security through close cooperation with international supply chain businesses such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. Through this initiative, U.S. Customs and Border Protection (CBP) is asking businesses to ensure the integrity of their security practices and communicate and verify the security guidelines of their business partners within the supply chain. Participation in C-TPAT takes a real commitment of time and resources from your company.

The following Companies are Eligible to Participate in C-TPAT:

  • U.S. Importers
  • U.S. Customs Brokers
  • Mexican Manufacturers
  • U.S., Canadian & Mexican Cross Border Highway Carriers
  • Third Party Logistics (3PL) Providers
  • Marine Port Authorities & Terminal Operators
  • Mexican Long Haul Highway Carriers
  • Air Carriers
  • Rail Carriers
  • Sea Carriers
  • Air Freight Consolidators
  • Ocean Transportation Intermediaries
  • Non-Vessel Operating Common Carriers (NVOCCs)

Above information from: www.c-tpat.com

Marine Cargo Insurance

Marine Cargo Insurance covers loss and / or damage of cargo while it is in transit between the points of origin and final destination. Goods may be transported by sea, land, or air.

Marine insurance is essential for businesses engaging in international trade, especially those shipping large quantities of goods by boat. Specific terms and benefits vary widely across the world, and many marine insurance policies are custom tailored for specific shipments, but a few general principles apply to the entire industry.

Protecting the value of your goods is the primary benefit of marine insurance. While you have the option of sending your freight without any insurance, if you do so you would bear the entire financial cost in the event of damage or loss of your shipment. You do have legal recourse against the carrier, but this can be a lengthy and complicated process, and international law strictly limits carrier liability.

Different types of marine insurance exist. Policies are available to protect the goods while in transit on the ship, but damage can occur while the ship is in port, while the goods are in transit to the warehouse or while at the warehouse itself. Marine insurance policies can be endorsed to cover all these instances, or a policy can be purchased individually to provide cumulative coverage for all locations of your goods.

Marine insurance exclusions: Most marine cargo insurance policies do not reimburse for losses caused by improper packing or when customs officials reject the delivered goods.

Other freight insurance policies exclude claims for:

  • Abandoned cargo
  • Other party failing to pay
  • Spoilage or other damages due to the product’s nature
  • Losses caused by shipping delays
  • Employee dishonesty
  • Damages at port cities more than 15 days after cargo was unloaded.

Covered Risks under a Marine Insurance Policy

All Risks marine insurance would cover the non-delivery of an entire shipping package, including where theft was involved.

Total loss of the entire shipment would also be covered if due to a collision, explosion or burning involving the ocean vessel.

Other eligible risks to cargo include:

  • Damages from bad weather
  • Seawater or freshwater flooding
  • Improper stowage by the shipping company
  • Mud and grease damage
  • Fumigation services