How’s your international transit insurance ?
I’ll bet you’re thinking “BORING – I don’t need to read about insurance” but before you click away, consider what it would have cost you when on 25 May this year the cargo ship APL England on route from China to Melbourne (let’s pretend it was going the other direction) lost 40 containers overboard and damaged another 74.
The vessel APL England was travelling in adverse weather when engine trouble caused the vessel to roll in heavy seas losing a number of containers along the NSW coast.
While the above highlights what sometimes happens onboard container vessels, smaller exporters running parcel post or courier services need to consider what happens when your consignment of A$2500 goes missing, is smashed or is simply lost.
You might be savvy and have been paid in full, but your client is now out of pocket, rather unhappy and while they may acknowledge that it’s not your fault, they haven’t had the best experience dealing with you.
Now what if you could say – “No worries. These things happen and we have you covered. That’s why people buy from us !”
So today’s key take-away: get onto your insurance broker, speak to them about your new ventures internationally and seek some information on what it’s worth for you to have a yearly marine/ transit insurance policy. You will be pleasantly surprised just how much cover you are awarded for the premiums paid.
With many policies, coverage is from your supplier, manufacturing facility, etc. here in AUS all the way to your buyer’s warehouse/door no matter what incoterms you are using.
Remember best practice exporting is about mitigating risk. Identify it and work out how you can pass it to someone else. Now that’s a great take away.
WHO IS CVEN ?
CVEN is an export advisory with a difference. Our team are hands on and engage internationally with buyers, compliance agencies and logistic specialist on a daily basis. This means the information we provide and the pathways we use are the result of the international business we undertake, everyday.
CVEN is different – we export.
Read our services pack to find out how we can help you achieve your export goals.