Pirates are Targeting American-flag Ships

April 27th, 2009

Please, read a story posted on MSNBC about the new surge of pirate attacks on cargo ships. It’s crucially important as never before to make sure your cargo is fully insured for the overseas transit anywhere in the world. Get more details at www.shipping-insurance.com

Quoted from MSNBC:

Targeting Americans
A pirate whose gang attacked the Liberty Sun claimed his group was targeting American ships and sailors.

“We will seek out the Americans, and if we capture them, we will slaughter them,” said a 25-year-old pirate based in the Somali port of Harardhere who gave only his first name, Ismail.

“We will target their ships because we know their flags. Last night, an American-flagged ship escaped us by a whisker. We have showered them with rocket-propelled grenades,” said Ismail, who did not take part in the Liberty Sun attack.

read the full story…

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Marine Insurance Rates Go Up in Light of New Pirate Attacks

April 27th, 2009

A fresh wave of assaults on vessels in the Indian Ocean, crested by the capture last week of the U.S. flag Maersk Alabama, is resonating across the maritime industry, pushing up insurance rates and raising new headaches that the trade and passage lane is yielding to anarchy.

Pirates about 310 miles off the coast of Somalia taken over the 1,100-TEU Maersk Line Ltd. ship and its 20 American crewman as it was on the way to Mombasa, Kenya. The crew recovered control of the ship, owned by the U.S. subsidiary A.P. Moller Maersk, a few hours afterwards. It was the sixth watercraft hijacked within a week, including a smaller German-owned container carrier. The piracy assaults are “producing a new moneyed category in Mogadishu,” said John Woods, of the New York law firm Clyde & co. “It is pushing insurance costs up, and additional premiums are being billed for transit in those areas.”

Insurers in London are composing most of the policies and leveling war-risk rates, he said. Vessel proprietors are being pressured to accept out kidnap and ransom money insurance on ships sailing off the Somali coast, which addresses both the ransoms and engaging negotiators to haggle with the pirates. Ransom requirements can start as high as $20 million and be managed down to less than $1 million in many instances.

Pirates last week also aggressed a container vessel controlled by Zim Integrated Shipping Services, the Africa Star, but where kept from embarkation by barbed wire threaded along side the vessel. The United States and other countries deployed war ships close to Somalia recently last year, but pirates are embarking farther out to ocean to avoid the patrols.

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Untold Facts about Cargo Insurance

April 27th, 2009

We learn from the front page news of major oil spillages on unspoiled coastlines, and the stolen articles of shipping containers washed ashores from subsiding vessels.

Nevertheless, we seldom take heed about the 3,000 marine casualties accounted for every year, the truth that air cargo planes comprise 24% of air accidents ( but merely 4% of air operations), the regular incidences of pirate assaults, the count of freight broken on the road or in warehouses.

Shipment catastrophes are a day-to-day fact of international tarde and consequences in millions of dollars worth of damage. They occur in harsh seas and quiet waters, in the air or on the ground. They may be induced by human mistake or the powers of nature, equipment failure or illegal activity.

Shipment owners could also be financially affected if a shipowner announces General Average. This materializes if the travel of the vessel is being endangered by a major jeopardy. All companies  invovled in the voyage (including the shipment possessors), must make up their part of the cost of rescuing the vessel and its cargo, even if the particular freight is not damaged or lost.

Isurers wll extend this security requirement, but those without shipping insurance will be required to pay on average of twenty percent of the value of their cargo to get it discharged or risk having it contained indefinitely.

Cargo must always be sheltered by competent insurance to address loss, damage and General Average. The demand for insurance is increased as the economic downturn remains, and we can await cases of thievery, arson and buyer rejection to increase.

If you want to learn about how to protect your cargo while in transit – please, visit our main site www.shipping-insurance.com

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How To Buy Moving Insurance

March 24th, 2009

In this article I’ll show you what to look for when purchasing moving insurance from your mover or independent moving insurance broker. I won’t go into explanations as to WHY you should be getting it any time you relocate or have your belongings shipped. There are tons of articles on this blog explaining why it’s important.

1. Compare rates from different insurance providers including the one used by your moving company. The moving insurance rates are usually presented as percentage of the value of the cargo. So if you were quoted 2.5% to insure your household goods move it means that it’ll cost you $2.50 for each $100 of the value of your shipment. Be sure to check what type of moving insurance is offered. Most moving companies offer “in-house” coverage but it works on weight basis and 99% of the time will not be sufficient.

2. I’ve also noticed that a lot of moving insurance websites quote TOTAL LOSS coverage only. It is cheaper than full replacement value coverage and they’re hoping to get you in with a low rate. Total loss moving insurance coverage only works if your whole shipment is gone: stolen, destroyed by fire, accident, etc. You need ALL RISK insurance that covers your possessions for the full replacement value. For this reason I like checking with Shipping-Insurance.com website as I can see the rates right there for both options.

3. Determine the deductible for your policy. As with any insurance product moving insurance policy is subject to a deductible. Normally it is in the range of $300-$500. Sometimes it’s quoted as percentage of the total amount of the moving insurance policy. You can expect your moving insurance premium to go up if you want a smaller deductible amount.

4. Request to see the terms of the moving insurance policy. I know… it is a very boring document to read but it can save you a lot of headache in the future. Especially look for any exclusions from the insuring conditions as they will be used by the underwrites to avoid paying your claim. I’ve seen provisions in the moving insurance policies excluding damages due to improper packing. Technically, any damage of household goods during the move can be related to “improper packing”. Try to prove it to your moving company that they don’t know how to pack! Shipping-Insurance.com has the terms and conditions listed with the brief explanations of major terms. There’s even a sample certificate of moving insurance shown.

Getting moving insurance is an important thing to do to preserve your assets and avoid any financial losses. Doing it right and getting the proper coverage is easy if you follow the above steps.

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Why do I need insurance for overseas moving?

March 24th, 2009

Moving to another country requires a lot of research, work and preparation. One thing that should be included on your “TO DO” list is overseas moving insurance.

Many people ask themselves this question as to why they need the insurance for their overseas move. It’s a valid question. After all, it’s an extra expense to your quite high relocation bill.

However, neglecting it can potentially result in very unpleasant financial losses and in that event the question would be: “Why didn’t I get overseas moving insurance?”

Here are 3 observations to ponder on regarding this matter:

1. Protect Your Property From The Hazards Associated With Overseas Shipping
Majority of people have no problem with the concept of insuring their automobiles or the place of residence. Moving insurance serves the same purpose – it protects your property against damages, loss or theft of your personal property while in transit by land, sea or air. Accidents do happen. People do make mistakes. Your personal belongings just may happen to be in the wrong place at the wrong time.

2. Verify The Financial Responsibility Of Your Overseas Moving Company
If you hire a professional overseas mover then it’s their full responsibility to deliver your household goods in good order, right? Not exactly… It’s their duty to take good care of your belongings but for any overseas mover it’s impossible to control everything that happens along the trip: trucking companies, ports, warehouses, Customs, weather conditions, acts of God can all bring the hazards to your cargo. Besides, it’s not uncommon for the moving companies to limit their liability covering only pennies on a dollar value of your possessions.

3. Cost of Overseas Moving Insurance
This is a good part. Insurance premiums for overseas moving are relatively cheap. For example, Shipping-Insurance.com offers ALL RISK coverage for most destinations at 2.25% of the declared value of your possessions. This means if you evaluate your household items, personal belongings, art, musical instruments, etc. at $20,000 then your insurance premium is only $450. The moving insurance company will take the risk of repaying you $20,000 out of their pocket and it’s only costing you $450 to make them take on this risk.

These are only some reasons why a lot of people opt to purchase overseas moving insurance from companies or brokers specializing in this field.

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