Insurance for Ocean Freight: When It’s Worth It
Shipping goods overseas can expose your cargo to a range of risks. From rough seas and port mishaps to theft and accidents during transloading, many events are simply out of your control.
Ocean freight insurance (or marine cargo insurance) protects your investment by covering financial losses if something happens to your shipment.
What Does Ocean Freight Insurance Cover?
While specific policies vary, most standard cargo insurance covers:
✅ Loss or damage from rough handling or accidents at sea
✅ Fire, collision, or vessel sinking
✅ Theft and pilferage (especially in certain high-risk ports)
✅ General Average events (shared loss if the ship’s cargo must be sacrificed to save the voyage)
When Is Insurance Absolutely Worth It?
You might wonder, “Do I really need insurance? Isn’t my freight already covered?”
Here’s the truth:
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Carriers have limited liability. By international law, ocean carriers are only liable for a small amount — often just $500 per container or ~$2/kg — regardless of your actual cargo value.
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Your cargo might not be covered by default. Many shippers mistakenly believe freight forwarders automatically insure shipments. They don’t — unless you explicitly purchase insurance.
You definitely want insurance if:
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You’re shipping high-value goods (vehicles, electronics, machinery)
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You have tight delivery timelines — replacing damaged cargo takes time
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You’re shipping to or from ports with known theft or infrastructure issues
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You have payment terms that require insurance (like under a Letter of Credit)
Ocean shipping is cost-effective, but it comes with exposure to real-world risks. Ocean freight insurance gives you peace of mind that your investment is protected, no matter what happens along the journey.
At All Cargo Export, we help clients arrange comprehensive insurance for cars, heavy machinery, and full container loads — so you’re covered from port to port.
Want a custom quote with insurance included?
Contact us — we’ll handle the details.