29/05/2026
Quick test. Your container — USD 80,000 of cargo — falls off a ship mid-Pacific.
**How much does the carrier owe you?**
Answer: about **USD 1,000.**
Yes, really. Under the Hague-Visby Rules (which most ocean carriers operate under), the carrier's liability is capped at **666.67 SDRs per package, or 2 SDRs per kilo, whichever is higher**. SDR is roughly USD 1.35 right now. For most cargo, that math comes out to around USD 900–1,200 per package — regardless of what's inside.
That's the gap marine insurance fills. And almost no SME shipper realises how big it is.
**A few other things most shippers get wrong about cargo cover:**
→ "The carrier will cover it." They won't. See above.
→ "Insurance is built into the freight rate." Almost never. Only CIF and CIP include marine cover by default — and even then, the coverage is usually the bare minimum (Institute Cargo Clauses C).
→ "It's expensive." Not really. Typical premium runs **around 0.5% of cargo value.** On a USD 80K shipment: USD 400. Less than your freight rate.
**When marine insurance is on YOU to arrange:**
✓ EXW — buying or selling
✓ FCA — buyer arranges
✓ FOB — buyer arranges
✓ CFR — buyer arranges (cost is seller's, risk is yours from loading)
**When it's already included** (sort of):
→ CIF / CIP — but the seller usually buys minimum cover (Clauses C). For high-value cargo, top up with your own Clauses A policy.
For context: roughly **1,300+ shipping containers** are lost at sea every year (industry estimates). It's not a question of *if* something will happen across enough shipments — it's *which* shipment.
If you're shipping under any of the Incoterms above and don't have your own marine cover, send us a recent shipment invoice. We'll calculate your **real exposure** — what the carrier would actually owe you vs what your cargo is worth — for free. Most clients are surprised by the gap.
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