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OCEAN CARGO

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					OCEAN CARGO




    Presented by:
 Maryann Sokolowski
  February 25, 2009
                What is Ocean Cargo?


• Simply put – Covers goods being shipped, while
  in transit overseas and domestically.
• LIMITS:
  – Any One Vessel
  – Any One Vessel On Deck
           (Subject to an on-deck BOL)
  – Any One Aircraft
  – Any One Domestic Transit
  – Any One Barge
  – By Parcel Post
                Ocean Cargo: The Parties


SHIPPER                        CONSIGNEE
• Party who ships the          • Party who receives or
  goods
• Control over packing &         purchases the goods
  arranging goods for          • Limited control over
  shipment                       packing
• Usually the product seller   • May need documents to
  or manufacturer
                                 release cargo at delivery
                         Common Terms of Sale

• Ocean Cargo uses Agreed
  Value
   – ACV seldom used because
     most cargo is brand new, ACV
     doesn’t reflect costs to
     destination, and value is
     always higher at destination
• FOB: Free on Board
   – Title changes when cargo
     passes over ship’s rail
• FAS: Free Along Side
   – Title changes when ship
     receives cargo


Buyer assumes the interest and risk of loss at the
             FOB or FAS point.
                   Common Terms of Sale, cont.


C&F - Cost & Freight             CIF - Cost, Insurance &
    – Seller arranges for the      Freight
      freight cost, but does       – Seller arranges for
      not provide insurance          freight and purchases
      on Buyer’s behalf.             insurance for both the
                                     Seller and Buyer.
  Standard Valuation Formula       – Certificate/Special
                                     Policy of Insurance
            [Invoice value]
        + [pre-paid freight]
                                     issued and endorsed
          + an “advance”             over to the Buyer.
                Total              – Certificate allows
                                     Buyer to present a
• Used in CIF Terms of Sale
• Advance ranges from 0% - 25%
                                     claim at destination.
                 Commodities & Packing


• What is being shipped?

• Description of Packing
  (i.e. cardboard boxes,
  shrink-wrapped and
  palletized).

• Are the goods
  containerized? Door-to-
  door containers? Sealed
  containers?
                         Imports/Exports


Policy covers both Imports and Exports
  –   Need to know annual values shipped
  –   % Import or Export
  –   Countries the goods are shipped to/from
  –   Type of shipment (vessel, air, barge, etc.)
  –   Maximum/average value of shipment
  –   Shipping terms
       • Warehouse to warehouse
       • Warehouse to port
       • Port to warehouse
                     Warehouse to Warehouse

Coverage continues in the ordinary
    course of transit until:
    1) Cargo is delivered at the final      What is “Ordinary Course of
    warehouse/destination                              Transit?”
OR 2)15 days after completion of         • Transit with all of the usual
    unloading of the overseas            minor delays
    vessel if the final destination is   • Covers incidental warehouse
    in the port city
                                         storage during normal transit
                                         situations
Provisions exist for extension of
    coverage due to delays beyond        • DOES NOT refer to
    the insured’s control                circumstances where the insured
        • Notification & payment of      intentionally halts the shipment
           additional premium are        for their convenience
           required
         Coverage Endorsement Options


•Domestic Transportation
    Coverage
•Warehouse Coverage
•Exhibition & Processing
•Sales Representative
    Samples
•Strikes, Riots, & Civil
    Commotions
•War Risk
•Flexible Pricing
•Flexible Reporting
                      More Information

Potential Customers        Key Questions to Ask
   – Wholesalers             – Do you import or
   – Retailers                 export any goods or
   – Manufacturers             raw materials? If so,
                               who is responsible for
   – Contractors               goods in transit?
                             – Are any of your
                               products
                               manufactured
                               overseas? If so, who
                               is responsible for
                               goods in transit?
                             – Do you sell any of your
                               product overseas?
                    Final Thoughts


• Ocean Cargo coverage can round out accounts
  for your customer.
• Offering this coverage makes you more valuable
  to the customer by meeting all of their needs.
• Keeps other agents out of the picture who are
  not familiar with the coverage and when it is
  necessary.


                QUESTIONS?

				
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posted:8/30/2012
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