To Insure or Not to Insure Fresh Produce Cargo?
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In recent industry reports, a staggering figure of only 30 to 50% of fresh produce cargo transported by sea are insured. Do you think a standard cargo insurance policy shields your fruit exports? Think again!
There are reasons why fresh produce exporters are shifting to not insuring their cargo anymore. Standard policies often have limited coverage for the unique risks of shipping perishable goods and there’s a much more effective way of recovering your losses.
Here’s why you need to be extra cautious:
Temperature Deviation
Even slight temperature swings can wreak havoc on your fresh produce cargo. Standard insurance might not cover spoilage due to these fluctuations, leaving you with nothing.
Delivery Delays
Tight shipping schedules are crucial for fresh produce. Standard policies may not cover losses from delays that spoil your fruit, turning your profits into mush. An example for that is the current Red Sea Crisis, where vessels are routing the longer way through Cape of Good Hope. Transit period might be well within your cargo’s shelf life, but you can never say when delays happen or reefer container malfunctions.
Protect Your Produce, Protect Your Profits
- Specialized Insurance: Consider specialized policies designed for perishables. These offer broader coverage for spoilage, temperature mishaps, and delays, ensuring your fruit arrives fresh and your business stays afloat.
- Cargo Claims Recovery: Don’t solely rely on insurance. If damage occurs, pursue cargo claims recovery directly from responsible parties like carriers. Services like Recoupex can help you with this process.
Remember, standard insurance might not be enough for your delicate cargo. Explore specialized options or a much effective cargo claims recovery to address the unique risks of fresh fruit exports and ensure your business stays fruitful!
Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.
