Clauses & Glossary

CLAUSES

General Exclusions
Our policy insures approved general merchandise against risks of physical loss or damage from external causes. However, this policy does not cover all losses possible in the course of an international shipment.

Some perils typically not covered in All-Risk Policies:

Improper or inadequate packaging
Abandonment of cargo
Rejection of goods by customs
Failure to pay or collect account
Inherent vice, (infestation or loss due to nature of the product itself)
Employee conversion or dishonesty
Losses due to delay or market loss
Goods subject to an on-deck bill of lading
Losses caused by temperature or pressure
Used goods


Free of Particular Average (FPA) coverage:

Sometimes, due to nature of products or shipping condition, only limited coverage can be obtained. Although FPA coverage is not as complete as “All-Risk Coverage”, it is better than having no insurance at all.

  Institute Cargo Clauses (A)   Institute Cargo Clauses (B)
  Institute Cargo Clauses (C)   Institute Fishing Vessel Clauses
  Institute Frozen Food Clauses (A)   Institute Strikes Clauses
  Institute War Clauses   Insurance Clauses
  Household Goods   Warranties for High Risk Items
GLOSSARY OF COMMON TRANSPORT AND INSURANCE TERMS

Abnormal/Out of Gauge Acquittal
Advance Loss of Profit Cabotage
Carrier Haulage CIF (Cost Insurance and Freight)
CIP (Carriage and Insurance Paid To) Consignee
Consignor Consolidation
Container Demurrage Deadfreight
Demurrage Disbursement
Dunnage Futile Trip
Incoterms Intermodal
Landbridge Marine Insurance
Multimodal Transport Transshipment
Non-Vessel Operating Common Carrier (NVOCC) Stock Throghput Marine Goods in Transit


Abnormal/Out of Gauge
Cargo which cannot conform with an International Standards Organisation(I.S.O.) container and so protrudes over the sides or top of a container.

Acquittal
For Container Operators – Reconciliation of documents presented to Customs with those presented to container operators to prove legitimacy of imports/exports.

Advance Loss of Profit
In the event of a machine being lost or damaged in transit this form of insurance would cover the forecasted loss of profit that would be generated over a fixed period of time.

Cabotage
The loan of a container to a second party for the domestic movement of cargo, thus saving the operator the cost of repositioning the container.

Carrier Haulage
Transport for the delivery or collection of containers, arranged by the container operator or its agent.

CIF (Cost Insurance and Freight)
Term used for Seafreight and Waterborne transport only and means that the seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyers risk of loss or damage to the goods during carriage. Consequently, the seller contracts for insurance and pays the insurance premium.

CIP (Carriage and Insurance Paid To)
The multimodal equivalent to Cost Insurance and Freight. The named place where the seller’s costs end can be any identifiable point in the destination country and the naming of that point is incorporated into the way the INCOTERM Carriage and Insurance Paid to is written. CIP may be used for Roadfreight, Airfreight, Railfreight as well as for the majority of modern Seafreight modes where the ships rail serves no purpose. CIP means that the seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of the carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during carriage. Consequently, the seller contracts for insurance and pays the insurance premium.

Consignee
The person to whom the goods are consigned.

Consignor
The person who consigns or forwards the goods.

Consolidation
Process of combining LCL parcels to make efficient use of containers.

Container Demurrage
The amount payable by the importer/exporter to carrier for retaining the container beyond the free time stipulated in the applicable tariff. It is a penalty designed to discourage our merchants from keeping containers as free storage, and to speed up packing/unpacking time.

Deadfreight
Payment for space booked but not used.

Demurrage
Charge raised for detaining FCL container/trailer at a CFS for longer period than provided in Tariff. Compensation payable to a container operator, haulier or shipowner for the detention of his equipment beyond the stipulated time in the tariff/contract/Charter Party.

Disbursement
Payments made by the ship’s agents for port charges, customs fees, stores, bunkers, water etc. on behalf of owners.

Dunnage
Material (wood, matting, etc.) used in stowing cargo, either for separation or for prevention of damage, by sweating, skidding etc.

Futile Trip
This is incurred when a full or empty container cannot be delivered or is not available for collection upon arrival of the cartage vehicle at a depot or consignee/shipper’s premises.

Incoterms
This is a contraction of the phrase ‘International Commercial Terms’. INCOTERMS 2000 is the current version of the International Chamber of Commerce’s definition of trade terms. Whilst not law, the INCOTERM definitions are used worldwide and bring certainty to the detail of the sales contract.

Intermodal
The ability to move between two or more different modes of transport with the smallest interruption to the speed of transit. Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems.

Landbridge
Movement of cargo by water from one country through the port of another country, thence, using rail or truck, to an inland point in that country or to a third country. As example, a through movement of Asian cargo to Europe across North America.

Marine Insurance
In the context of international insurance, the word marine refers to all forms of transport and not just sea or waterborne transport.  So cargo moving by air or road may be covered under a marine insurance contract.

Multimodal Transport
The UNCTAD preferred term for what we call Combined Transport.

Non-Vessel Operating Common Carrier (NVOCC)
A cargo consolidator in ocean trades who will buy space from a carrier and sub sell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.

Transshipment
When the total amount of cargo on board a vessel is too low to justify a call at the port of destination, (goods are taken off that vessel and loaded on another i.e. transshipped) for transport to the port of destination.

Stock Throughput Marine Goods in Transit
Stock insured from origin to destination including transport from the destination port to a storage facility, including transport to a buyers premises i.e. shop or warehouse.