Comprehensive dictionary of cargo insurance terms, marine shipping terminology, and international trade definitions. Master the language of global logistics and cargo protection with our expertly curated glossary.
The broadest form of cargo insurance coverage that protects against all physical loss or damage from any external cause, except those specifically excluded in the policy.
Example: All risks coverage would protect electronics shipment from water damage during a storm, theft during transit, or accidental damage during loading.
A proportional loss in marine insurance. Can be either Particular Average (affecting only specific cargo) or General Average (shared proportionally among all cargo owners).
Example: If a container ship jettisons cargo to save the vessel, all cargo owners share the loss proportionally through General Average.
Official notification from carrier to consignee that cargo has arrived at destination port and is available for pickup.
Example: Shipping line sends arrival notice to importer 24 hours before vessel arrives at Singapore port.
When cargo is so badly damaged that the cost of repair or recovery would exceed its insured value, making it economically a total loss.
Example: Water-damaged electronics where cleaning and refurbishment costs exceed the cargo's insured value.
The amount that the insured must pay out-of-pocket before insurance coverage begins. Higher deductibles typically result in lower premium costs.
Example: With a $1,000 deductible, you pay the first $1,000 of any claim and insurance covers the rest.
When a vessel departs from its usual or agreed route. May affect insurance coverage depending on the reason and notification requirements.
Example: Ship deviates to avoid storm or piracy areas, requiring notification to maintain insurance coverage.
Coverage for import duties and taxes that may be lost if cargo is damaged, destroyed, or rejected by customs authorities.
Example: If imported goods are damaged in transit, insurance covers both cargo value and prepaid import duties.
An Incoterm where seller delivers goods on board the vessel at the named port of shipment. Buyer arranges and pays for insurance and freight.
Example: Thai exporter sells rice FOB Bangkok port. Buyer arranges shipping and insurance from Thailand to destination.
Unforeseeable circumstances that prevent a party from fulfilling a contract, such as natural disasters, war, or government actions.
Example: COVID-19 lockdowns preventing cargo pickup, or typhoon closing ports for extended periods.
A company that organizes shipments for individuals or corporations to get goods from origin to destination, acting as an intermediary between shipper and carrier.
Example: Singapore freight forwarder consolidates multiple LCL shipments from various exporters into one container.
A principle of maritime law where all cargo owners share proportionally in losses that result from voluntary sacrifice of cargo to save the ship and remaining cargo.
Example: Captain jettisons containers to lighten ship during storm. All cargo owners contribute to reimburse the jettisoned cargo owners.
The total weight of cargo including packaging, pallets, and container. Used for calculating freight rates and insurance premiums.
Example: 20-foot container with gross weight of 22,000 kg including cargo, packaging, and container weight.
Standard terms used in marine cargo insurance policies. ICC (A) provides all-risks coverage, ICC (B) covers named perils plus some additional risks, ICC (C) covers basic named perils only.
Example: ICC (A) would cover mysterious disappearance of cargo, while ICC (C) would only cover if specific cause like fire or collision can be proven.
Damage arising from the natural characteristics or defects of the cargo itself, such as rust, decay, or deterioration. Generally excluded from insurance coverage.
Example: Fresh fruit naturally ripening and spoiling during normal transit time, or metal naturally rusting in humid conditions.
Insurance covering loss or damage to ships, cargo, terminals, and any transport where goods are transferred or held between origin and destination.
Example: Comprehensive marine policy covering electronics shipment from factory in China to distributor in Malaysia.
Transportation involving more than one mode of transport (sea, air, rail, road) under a single contract and through bill of lading.
Example: Cargo travels by truck to port, then sea freight to destination port, then rail to final delivery point.
A partial loss that affects only the specific cargo of one owner, as opposed to General Average which is shared among all cargo owners.
Example: One container is damaged by forklift during loading while other containers remain unaffected.
The amount paid to an insurance company for coverage. Usually calculated as a percentage of the insured value based on risk factors.
Example: Premium of 0.25% on $100,000 cargo value equals $250 insurance cost.
The rescue of cargo from loss at sea or other peril. Salvage charges are the costs incurred in saving cargo, which may be covered by insurance.
Example: Tugboats rescue cargo from grounded vessel. Salvage costs are shared among cargo owners or covered by insurance.
Insurance provision requiring the insured to take reasonable steps to minimize loss and allowing recovery of reasonable expenses incurred in doing so.
Example: Hiring refrigerated storage to prevent perishable cargo from spoiling after container breakdown.
Complete destruction or loss of cargo where nothing remains of commercial value. Can be actual (physically destroyed) or constructive (economically unviable to recover).
Example: Container lost overboard during storm (actual total loss) or cargo so damaged that repair costs exceed value (constructive total loss).
The period during which cargo is being transported from origin to destination, including temporary storage and transshipment.
Example: Transit begins when cargo leaves seller's warehouse and ends when delivered to buyer's premises.
Perils arising from war, civil war, revolution, terrorism, piracy, and similar hostile acts. Usually excluded from standard policies and covered separately.
Example: Cargo seized by hostile forces or damaged by terrorist attack requires separate war risk coverage.
Insurance coverage that extends from the seller's warehouse to the buyer's warehouse, providing comprehensive protection during the entire logistics chain.
Example: Coverage begins when cargo leaves manufacturer's warehouse in Vietnam and ends when delivered to retailer's warehouse in Australia.
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