The Importance of Cargo Insurance in Cross-Border Logistics
In the realm of cross-border logistics, the safety of your goods is paramount. According to a report by the World Shipping Council, an average of 1,382 containers were lost at sea between 2018 and 2019. For small and medium-sized businesses relying on secure and efficient cross-border logistics, the loss of even a single container can result in significant financial setbacks and disrupt the entire supply chain.

Factors Leading to Cargo Loss at Sea
While most incidents of damage or theft occur during the handling of goods at ports and warehouses, the journey across the ocean is not without its risks. Major causes of cargo loss include severe weather conditions like typhoons and hurricanes, as well as human errors such as improper packing or loading.
The Necessity of Cargo Insurance
Cargo insurance is particularly crucial for small and medium-sized enterprises (SMEs) involved in cross-border logistics. These businesses may not have the financial cushion to absorb the loss of goods, and cargo insurance provides a safety net against such unforeseen circumstances.
Tailoring Your Cargo Insurance Policy
When it comes to cargo insurance, one size doesn't fit all. Businesses should carefully assess their specific needs in the context of cross-border logistics. There are mainly two types of cargo insurance: "all-risk" and "named-peril" coverage. The former offers comprehensive protection, while the latter covers only specific risks listed in the policy.
Conclusion
In the complex world of cross-border logistics, cargo insurance isn't just a financial safety net—it's a risk management tool. Whether you're shipping high-value items or navigating a complicated supply chain, a robust cargo insurance policy is indispensable.
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