Do I need insurance to move a shipping container?

While the vast majority of payloads arrive safely and securely, smart shippers always carry insurance on their cargo, whether it’s transported in a shipping container by truck, train, ship, or a combination of the three

Unfortunately, many people have termed it “grudge insurance” as they reluctantly buy the protection. Without insurance, you will be left with a huge loss and no compensation if a disaster or accident occurs.

Potential problems

Cargo containers are transported by truck, rail and ocean liner. One of the reasons for using a shipping container is to protect the payload from damage due to weather considerations that include rain, hail, ice and snow, to salt spray on ships. There are also natural disasters and phenomena over which there is no control, such as dense fog, tornadoes, hurricanes, wildfires, earthquakes, floods and volcanic activity, along with sinkholes, landslides and avalanches.

Artificial interruptions

This doesn’t even delve into the infrastructure decline that can result from a dam collapse, along with a collapsed bridge or overpass. When transported by rail, train cars can be derailed due to faulty equipment. On the high seas, containers can be swept overboard. Losses can occur through theft and shipping containers are lost, even with advances in tracking technology.

While all of these situations are rare, they represent very real situations that shippers must be prepared against by properly securing their cargo.

External influences

The load is subject to a variety of natural forces ranging from friction and gravity to vibrational influences and centrifugal force due to sudden starting, stopping and turning. When at sea, a ship can move in 6 different directions, which significantly affects cargo containers. All it takes is one faulty tie to cause a container disaster during any mode of transport. Insurance is essential protection for anything that is transported in a cargo container.

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