๐ข Cargo Insurance & Trade Terms (Incoterms) for Importers/Exporters ๐จ๐ฆ๐
International trade is the lifeblood of many Canadian businessesโbut it comes with significant risks. Whether shipping goods across the Pacific, trucking over the U.S. border, or moving freight by rail, understanding cargo insurance and Incoterms is essential to protecting your bottom line.
โก Cargo Insurance Basics
- Covers physical loss or damage to goods while in transitโby land, air, or sea.
- Protects against risks such as theft ๐จ, fire ๐ฅ, rough handling, or natural disasters ๐.
- Policies can be tailored: โAll Riskโ coverage offers broad protection, while narrower policies apply only to specific perils.
๐ Why Incoterms Matter
Incoterms (International Commercial Terms) define who is responsible for costs, insurance, and risk at each stage of shipping. Examples include:
- FOB (Free On Board): The buyer assumes responsibility once goods are loaded onto the vessel.
- CIF (Cost, Insurance & Freight): The seller arranges and pays for insurance and shipping until the goods arrive.
- DDP (Delivered Duty Paid): The seller bears nearly all costs and risks until delivery.
๐ Canadian Context
With Vancouver serving as the Pacific Gateway and cross-border trade with the U.S. ๐บ๐ธ at record highs, Canadian importers and exporters must carefully align insurance coverage with trade terms. A misunderstanding could leave shipments uninsured at a critical stage.
โ The Takeaway
Cargo insurance + the right Incoterms = peace of mind. Together, they ensure your goods are protected, responsibilities are clear, and business flows smoothly.
๐ Are your shipments properly covered from port to customer?
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