Question 1

What's the difference between marine cargo and motor truck cargo?

Accepted Answer

Marine cargo covers goods in transit by water (ocean, inland waterway, intracoastal). Motor truck cargo covers goods in transit by land via commercial truck. Many shipments involve both — international goods arriving by ocean then continuing by truck — and need coordinated coverage to avoid gaps at the transition point (typically the port). Inland marine cargo policies often bridge the water-and-land transition for goods moving through Florida ports.

Question 2

What's an open cargo policy vs. trip-specific?

Accepted Answer

Open cargo policies cover all shipments by an ongoing shipper or receiver under a single annual contract — best for businesses with regular, predictable cargo flows. Trip-specific policies (also called certificates) cover individual high-value or unusual shipments that don't fit under an open policy. Most importers and exporters with regular activity carry open policies for routine shipments and trip-specific certificates for special cargo. Open policies typically have lower per-shipment cost but higher annual minimums.

Question 3

What's general average?

Accepted Answer

General average is a maritime principle requiring all parties with property at sea to share losses incurred when cargo or vessel components are voluntarily sacrificed to save the rest of the voyage (e.g., cargo jettisoned during a storm to lighten a ship). Cargo owners share the loss proportionally based on the value of their cargo. Modern container shipping rarely involves general average claims, but they still occur — when they do, cargo owners face surprise contributions to losses that may dwarf the value of their own goods. Marine cargo policies typically include general average contribution as standard coverage.

Question 4

Are perishable goods covered?

Accepted Answer

Perishable cargo (fresh produce, pharmaceuticals, prepared foods) requires specialized refrigerated cargo coverage with refrigeration breakdown and temperature deviation provisions. Standard cargo policies often exclude or sublimit refrigeration-related losses. Florida's role as a Caribbean produce import hub makes refrigerated cargo coverage essential for importers in that supply chain. Documentation of pre-shipment cooling, in-transit temperature monitoring, and post-arrival inspection is critical for claim payment on perishable losses.

Question 5

What about hijacking and piracy?

Accepted Answer

Modern cargo policies typically include theft coverage including hijacking, but piracy in international waters has its own framework under marine war risks coverage. High-value cargo and cargo transiting high-risk regions (East Africa, Southeast Asia) may need war risks endorsements. The Caribbean and Florida-bound shipping lanes are relatively low-piracy-risk; standard theft coverage handles the typical exposure. Florida-based importers should still review piracy and war risk provisions for goods transiting from origins in higher-risk regions.

Question 6

Does cargo coverage extend to warehouses?

Accepted Answer

Most cargo policies include warehouse-to-warehouse coverage — protecting goods from origin warehouse through transit to destination warehouse. Coverage typically pauses when goods enter long-term storage at intermediate locations and resumes when transit continues. Warehouse coverage at fixed locations is usually a separate property policy or bailee's customer property coverage. Coordinating cargo and warehouse coverage prevents gaps when goods sit in distribution centers between shipments.

Question 7

How is marine cargo priced?

Accepted Answer

Premium drivers include cargo value, commodity type (general goods cheaper than electronics or pharmaceuticals), origin/destination pairs, transit mode and duration, prior claim history, and selected coverage breadth. Florida-routed marine cargo typically runs 0.05%–0.50% of cargo value depending on commodity and risk. Open policies amortize across many shipments and produce lower effective rates than trip-specific certificates. Documentation of packaging, container security, and supply-chain controls reduces premium meaningfully.

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