Car carrier ship - RoRo Shipping

Why You Need Cargo Insurance for RoRo Shipping

If you are a seasoned shipper, you are probably aware of the importance of cargo insurance. First-time shippers, however, may have limited to no knowledge of why they should account for cargo shipping costs when planning the budget for the overseas RoRo shipping service.

Not having transit cargo insurance can cause serious problems for the shippers. For example, in 2012, there was a collision between a car carrier and a shipping vessel which resulted in a massive loss for the car owners/shippers and even more tragically, the deaths of 11 crew members. It took three years to recover the wreck from the bottom of the ocean. There are also more recent examples.

So if you’re asking yourself ‘’Do I need cargo insurance when shipping my car via RoRo?’’, here are the reasons why you absolutely do.

Overview of cargo insurance

Cargo insurance is an umbrella term for insuring shipment such as personal items, household good (such as furniture), and cars intended for personal use, as well as commercial vehicles. In the case of loss or damage of the shipment, the insurance will cover the costs of damaged or lost items. The rates are based on several factors including the products, the destinations, and the commercial value of the shipment.

Freight Bill of Lading is where the freight proposal is outlined; however, it doesn’t include the insurance coverage by default. It gives a detailed overview of the responsibilities of the freight forwarder and shipper but doesn’t specify who would be liable in the case of shipment damage or loss.

Nevertheless, a reliable shipping company will make you aware of the importance of accounting for the insurance costs. As a Federal Maritime Commission licensed NVOCC (license # 019334), Ship Overseas can issue its own Bill of Lading, and we make sure our clients know their insurance options.

Transit cargo insurance – Marine Insurance

When shipping their cars via RoRo shipping, shippers should consider purchasing transit cargo insurance – marine insurance. This type of insurance covers all losses incurred in transit. Ship Overseas recommends assuring all shipped vehicles with marine insurance on a first dollar basis.

NOTE: Since RoRo shipping doesn’t allow for the shipment of personal items and other goods alongside the car, the insurance covers only the car.

Ship Overseas offers FULL COVER Marine Insurance against shipment loss or damage. The coverage applies from the date and time your car is loaded onto the RoRo ship and ceases after the delivery of the car to the destination. The vehicle is not insured for the time it spends at the shipping line terminal waiting to be loaded onto a RoRo ship. Your current insurance should cover any loss or damage that might happen in that time period.

Nevertheless, for uninsured vehicles that have been purchased only recently, Ship Overseas can obtain an insurance extension that will apply from the moment your car arrives at the shipping line terminal.

What happens if I don’t insure my car?

If your car gets damaged or lost in transit and you neglected to insure it, it’s highly likely you won’t be able to obtain repayment for the shipping costs. If a shipper can prove that the damage loss happened as a result of the carriers’ negligence or mishandling, they can file an insurance claim against the carrier. Still, the coverage they can obtain is typically insufficient to cover for the loss or damage.

Without the liability for loss or damage being explicitly stated, it would be extremely difficult to establish the liable party. In cases like these, seeking restitution for lost or damaged vehicles is typically futile.

Purchase FULL COVER Marine Insurance at Ship Overseas

Ship Overseas offers full cover marine insurance at a rate of 1.5% of the value you wish to insure your vehicle for. Our maximum liability per shipment is $500.00, pursuant to COGSA (Carriage of Goods at Sea Act).

Ship Overseas will inform you of your insurance options for your maximum protection against damage or loss. Contact us today and request a free quote and further information on marine insurance!

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