Frequently client of a carriage makes sure that a counteragent has an insurance policy and thus considers himself to be safe from financial losses. But it's not always like that. In matters of working with risks, there are various details and hidden dangers being unaware of which can lead to deplorable consequences. That fact is confirmed by a case from our experience.A client had to deliver valuable cargo from Belarus to Beirut, aircraft transport was chosen for the carriage. The specific character of the goods was in its high value and in very small size. The goods itself wasn't insured, the client decided to be limited to the carrier's liability insurance. On arrival to the airport of destination country the goods got lost. According to the carrier's official line, it went amiss during unloading but, naturally, not through his fault. Right off a question about value compensation and of insurance payment arose. There was a suddenness awaiting the client: the carrier's liability is limited by a definite amount per good's weight kilo. And the parcel weight was quite moderate! As a consequence, the insurance company paid out the carrier's liability to the extent of several dozens of dollars though the goods' cost was thousands of times as much.Along with this, there were a number of ways for the client to be reimbursed to the fullest extent: to insure the cargo directly, to refer to a forwarder preferably having his liability insured, as the forwarder, unlike carrier, in that case would be fully liable for loss of goods, except as otherwise provided in the agreement, or to indicate the goods' declared value.
Harm of excessive economy
Economy and optimization of expenses is what business cannot do without. But it is of importance to differentiate between where the rational economy stops and the beginning of the irrational economy which raises harm to financial interests exposing goods, shipment and transaction to danger.
One case of the kind was a shipment of fruits with a truck accomplished by a Belarusian client. The fruits came from a long way off, the Caucasus. It took place in November. In order to economize the carriage expenses, the client decided to replace a refrigerator âEUR" traditional for that purpose âEUR" and to use canvas top which made the carriage a little cheaper. This way, it was impossible to keep up the temperature control in the vehicle.
The first consignment of goods arrived in normal condition, without any troubles. That is why the client thought that a canvas truck could be alright for such shipments further on. But it happened so that the next vehicle stopped at the border and reached Belarus after the scheduled date. The result of the stoppage turned into an unpleasant surprise to the client: the fruits got spoiled. And that, in all appearance, happened because of temperature fall. The consignee tried to press charges from the carrier and, as a natural result, was refused. After all, it was the consignee âEUR" not the carrier âEUR" who had chosen an âEURoeeconomicâEUR