Global trade involves significant risks. From cargo theft in ports to damage during transatlantic shipments, international logistics is rife with uncertainties. Transportation insurance is essential for protecting businesses engaged in cross-border commerce.

The Global Logistics Landscape
International shipments pass through multiple hands, borders, and jurisdictions. Each stage adds a layer of complexity and potential risk. Factors like political unrest, weather events, and customs inspections can delay or damage goods.

Transportation insurance offers a financial safety net for these variables.

Types of International Coverage
In international trade, there are three common types of transportation insurance:

Free on Board (FOB) Insurance: The buyer assumes responsibility once the goods are on the ship.

Cost, Insurance, and Freight (CIF): The seller covers the cost, insurance, and freight until the goods reach the buyer.

All-Risk Insurance: This comprehensive policy covers almost all possible hazards, barring specific exclusions.

Role in Supply Chain Continuity
Transportation insurance helps keep the global supply chain functional:

Maintains Cash Flow: Businesses don’t have to absorb huge losses from damaged or lost cargo.

Improves Credit Terms: Insured goods can improve a company’s creditworthiness with suppliers and financiers.

Supports Business Contracts: Many buyers and suppliers require proof of insurance as a standard clause.

Claims Process and Best Practices
Efficient documentation and quick reporting are vital for smooth claims. Businesses should:

Keep all transport and shipping documents.

Report damage or loss immediately.

Work with brokers or legal advisors familiar with international transport laws.

Conclusion
Transportation insurance is a key component of international trade. It protects against volatile variables and ensures that businesses can maintain operations and profitability across borders.