Forwarding charges
Marine cargo insurance forwarding charges are the additional costs incurred by the cargo owner to forward their cargo to its destination following an insured loss or damage. These charges are typically covered by the marine cargo insurance policy, but there may be limits or exclusions.
Some common examples of marine cargo insurance forwarding charges include:
- Unloading and storage charges: These charges may be incurred if the cargo needs to be unloaded from the vessel and stored before it can be forwarded to its destination.
- Onward transportation charges: These charges cover the cost of transporting the cargo from the port of discharge to its final destination.
- Customs clearance charges: These charges may be incurred if the cargo needs to be cleared through customs before it can be forwarded to its destination.
- Survey fees and reconditioning costs: These charges may be incurred if the cargo needs to be surveyed or reconditioned before it can be forwarded to its destination.
- Sue and labor expenses: These are expenses incurred to avert or minimize a loss from an insured peril.
To be covered by marine cargo insurance, forwarding charges must be properly and reasonably incurred. The cargo owner must also be able to provide evidence of the charges incurred.
Here are some tips for cargo owners to minimize marine cargo insurance forwarding charges:
- Have a good relationship with your freight forwarder: A good freight forwarder can help you to minimize forwarding charges by negotiating with carriers and other service providers.
- Be prepared to provide documentation: When filing a claim with your marine cargo insurance company, you will need to provide documentation of the forwarding charges incurred. This may include invoices, receipts, and bills of lading.
- Know the terms of your insurance policy: It is important to understand the terms of your marine cargo insurance policy, including the coverage for forwarding charges. This will help you to avoid any surprises when filing a claim.