Download - OCEAN CARGO
OCEAN CARGO
Presented by:
Maryann Sokolowski
February 25, 2009
What is Ocean Cargo?What is Ocean Cargo?
• Simply put – Covers goods being shipped, while in transit overseas and domestically.
• LIMITS:– Any One Vessel– Any One Vessel On Deck
(Subject to an on-deck BOL)– Any One Aircraft– Any One Domestic Transit– Any One Barge– By Parcel Post
Ocean Cargo: The PartiesOcean Cargo: The Parties
SHIPPER • Party who ships the
goods• Control over packing &
arranging goods for shipment
• Usually the product seller or manufacturer
CONSIGNEE• Party who receives or
purchases the goods• Limited control over
packing• May need documents to
release cargo at delivery
Common Terms of SaleCommon Terms of Sale
• Ocean Cargo uses Agreed Value– ACV seldom used because
most cargo is brand new, ACV doesn’t reflect costs to destination, and value is always higher at destination
• FOB: Free on Board– Title changes when cargo
passes over ship’s rail
• FAS: Free Along Side– Title changes when ship
receives cargo
Buyer assumes the interest and risk of loss at the FOB or FAS point.
Common Terms of Sale, cont.Common Terms of Sale, cont.
C&F - Cost & Freight– Seller arranges for the
freight cost, but does not provide insurance on Buyer’s behalf.
CIF - Cost, Insurance & Freight– Seller arranges for
freight and purchases insurance for both the Seller and Buyer.
– Certificate/Special Policy of Insurance issued and endorsed over to the Buyer.
– Certificate allows Buyer to present a claim at destination.
Standard Valuation Formula
[Invoice value] + [pre-paid freight]
+ an “advance” Total
• Used in CIF Terms of Sale• Advance ranges from 0% - 25%
Commodities & PackingCommodities & Packing
• What is being shipped?
• Description of Packing (i.e. cardboard boxes, shrink-wrapped and palletized).
• Are the goods containerized? Door-to-door containers? Sealed containers?
Imports/ExportsImports/Exports
Policy covers both Imports and Exports– Need to know annual values shipped– % Import or Export– Countries the goods are shipped to/from– Type of shipment (vessel, air, barge, etc.)– Maximum/average value of shipment– Shipping terms
• Warehouse to warehouse• Warehouse to port• Port to warehouse
Warehouse to WarehouseWarehouse to Warehouse
Coverage continues in the ordinary course of transit until: 1) Cargo is delivered at the final warehouse/destination
OR 2)15 days after completion of unloading of the overseas vessel if the final destination is in the port city
Provisions exist for extension of coverage due to delays beyond the insured’s control
• Notification & payment of additional premium are required
What is “Ordinary Course of Transit?”
• Transit with all of the usual minor delays• Covers incidental warehouse storage during normal transit situations• DOES NOT refer to circumstances where the insured intentionally halts the shipment for their convenience
Coverage Endorsement OptionsCoverage Endorsement Options
•Domestic Transportation Coverage
•Warehouse Coverage•Exhibition & Processing•Sales Representative
Samples•Strikes, Riots, & Civil
Commotions•War Risk•Flexible Pricing•Flexible Reporting
More InformationMore Information
Potential Customers– Wholesalers– Retailers– Manufacturers– Contractors
Key Questions to Ask– Do you import or
export any goods or raw materials? If so, who is responsible for goods in transit?
– Are any of your products manufactured overseas? If so, who is responsible for goods in transit?
– Do you sell any of your product overseas?
Final ThoughtsFinal Thoughts
• Ocean Cargo coverage can round out accounts for your customer.
• Offering this coverage makes you more valuable to the customer by meeting all of their needs.
• Keeps other agents out of the picture who are not familiar with the coverage and when it is necessary.
QUESTIONS?