A Challenge to Shippers Who Would Never Dream of Controlling the Insurance
Shippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind.
Buying CIF: Who’s really responsible if your product is lost or damaged in transit? According to internationally accepted trade terms, referred to as Incoterms, suppliers selling “CIF” (Cost, Insurance, Freight) are responsible for arranging cargo insurance. But just because your supplier has the obligation to arrange insurance under CIF terms, it doesn’t mean that they are ultimately responsible if your product is lost or damaged during transit. The ultimate burden of loss falls upon you, the buyer. This is why many experts recommend importers change their buying terms to EXW, FOB, FCA, CFR or similar terms in order to control the selection, and thereby the quality, of insurance coverage.
How much is that insurance really costing you? Foreign suppliers and their forwarding agents often tack on placement fees to the insurance costs. Those added fees often inflate the cost of insurance well beyond market pricing for the same coverage purchased in the United States. Find out how much you’re really paying and then compare quotes received from BOC International.
Is the coverage your supplier purchased for you adequate? Importers relying on their suppliers to arrange insurance run the risk of having inadequate insurance coverage. Cargo insurance policies can vary widely in levels of coverage, deductibles and special restrictions. Ask your supplier for a complete copy of the insurance policy or for a certificate of insurance detailing all the policy terms and conditions
What’s the financial health of your supplier’s insurance company? Recent financial and catastrophic events have exposed the vulnerability of insurance companies to sudden economic devastation. Importers are encouraged to make certain their suppliers use insurers with a favorable financial rating supplied by a respected financial rating service. A.M. Best, Standard & Poor’s and Moody’s are among some of the world’s most respected. BOC’s insurance company, underwriters at Lloyd’s of London, has an A.M. Best financial rating of A (Excellent).
How will your claim be handled? If insurance is arranged overseas, will you be forced to  deal with an inexperienced, sub-contracted independent adjuster unfamiliar with the assessment of transportation related losses? Ask your supplier for a list of insurance claims adjusters contracted by the insurance company. Adjuster and surveyor networks approved by Lloyd’s of London and AIMA are among the most credible. BOC has a vested interest in your insurance needs and will directly handle cargo claim documentation requirements to ensure prompt processing and timely settlement.
Every Shipper Needs Cargo Insurance
Global trading involves risk; however, broad insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years. If you are depending on the carrier to cover losses, their responsibility is limited by law as follows:
Ocean Carriers  $500 per shipping unit
A shipping unit may be defined as one ocean container.
Air Carriers  $9.07 per pound
Truckers  $.50 per pound
The insurance we offer is competitively priced and insures approved merchandise against physical loss or damage from external causes. By purchasing cargo insurance, you can avoid inconvenience and frustration. Contact your BOC Representative at 617-345-0050 for your free quote.

What Every Shipper Needs to Know About Declared Value vs. Cargo Insurance
In the transportation industry, the words declaring and insuring are often interchanged resulting in great misunderstanding and confusion among shippers. Here’s an explanation of what to expect when declaring value with your forwarder/carrier versus purchasing cargo insurance.
Declared Value Coverage
Declared value coverage is not insurance for shippers. One of the most significant distinctions of being paid on a claim under declared value is that the shipper must prove that the carrier’s negligence directly resulted in the loss or damage to cargo.
Declaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier’s or forwarder’s freight bill, tariff or other contract of carriage. For example, many domestic forwarders and carriers limit their liability to 50 cents per pound. Declaring value takes that amount up to the amount declared.
The majority of these transportation providers have transferred that risk to an insurance company who issues an insurance policy that gives shippers the option of upping the carrier’s liability by declaring value and paying premium.
Although subject to the transportation provider’s policy conditions, shippers rarely see the insurance policy containing important facts such as deductibles, exclusions, warranties and policy limits.
In the transportation industry, the words declaring and insuring are often interchanged resulting in great misunderstanding and confusion among shippers. Here’s an explanation of what to expect when declaring value with your forwarder/carrier versus purchasing cargo insurance.
Declared Value Coverage
Declared value coverage is not insurance for shippers. One of the most significant distinctions of being paid on a claim under declared value is that the shipper must prove that the carrier’s negligence directly resulted in the loss or damage to cargo.
Declaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier’s or forwarder’s freight bill, tariff or other contract of carriage. For example, many domestic forwarders and carriers limit their liability to 50 cents per pound. Declaring value takes that amount up to the amount declared.
The majority of these transportation providers have transferred that risk to an insurance company who issues an insurance policy that gives shippers the option of upping the carrier’s liability by declaring value and paying premium.
Although subject to the transportation provider’s policy conditions, shippers rarely see the insurance policy containing important facts such as deductibles, exclusions, warranties and policy limits.

1. What are some of the things not covered when we declare value?
2. Three significant areas not addressed by declaring value are: (1) that the shipment is not covered “door-to-door.” Declared value is valid as long as cargo is in the care, custody, and control of the transportation provider; (2) other losses commonly not provided for include “Acts of God” and any other incidences outside the control of the carrier; and (3) reimbursement of freight charges, packing expenses, forwarding fees and similar costs are also not covered when buying declared value vs. cargo insurance.
3. We’ve been shipping for years without a serious loss. Isn’t it throwing away money to start buying coverage now?
4. No. Experienced risk managers will tell you that insurance shouldn’t be purchased only when a company can afford to sustain a significant loss. Think of the maximum value of a shipment. Imagine that entire load being destroyed in an airplane crash or truck overturn. Picture your company being without that money forever. If the shareholders can sustain that kind of loss along with all the other little nuisance losses that occur throughout the year, and can do it without a sleepless night, then your company may be a good candidate for self-insuring.

Dense Fog Continues to Cause Delays – China

Heavy Fog Continues in Shanghai Port / Yangtze River Area
Only weeks after the last fog in late March and early April, Shanghai port has not yet fully restored
Its normal production order. In recent days, Shanghai port and the Yangtze River estuary deep-water
Channel are  again shrouded in fog. This has caused Yangtze River’s North trough & South trough to close, and further delay ships.
The Yangtze  River channel has been closed for days. Meanwhile, Ningbo coastal area has also been affected, with many vessels delayed for a week. This may result in reloading fees, causing origin local fees to be higher than usual.

Labor Disruption Averted
CP Rail Customer Bulletin
https://www8.cpr.ca/cpcustomerstation/bulletin/view?id=11590  April 20, 2018
 
Customer Advisory: Labour Disruption Averted
This evening, we reached an agreement with both the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW), which averts the potential work stoppage of 12:01 am Eastern time tomorrow, April 21, 2018.
As such, CP’s embargoes for shipments routing to and from CP Canadian locations has been cancelled effective immediately. CP will immediately begin to execute a safe and structured start-up of its train operations in Canada.

Customer Advisory: Intermodal Terminal Gates Open During Work Stoppage
Dear Valued Customer,
 
During the embargo which begins Saturday April 21 at 00:01, intermodal terminal gates will remain open, in so far as practicable and so long as capacity permits, in order to reduce the impact of the work stoppage by CP’s unionized employees represented by the TCRC and IBEW.
 
If at origin, customers will be able to request pick up or ingate containers until terminals have reached their capacity. Private perishable protective service equipment and international reefers are excluded and will not be allowed in the terminals at this time as they require fueling/monitoring.
 
If a container has arrived at its destination terminal, customers will be able to request delivery or pick up containers from the terminal.
 
CP will not be providing over-the-road train service during the work stoppage.
 
CP will communicate to customers when terminals are nearing capacity to avoid loads being turned away at the gate.

Update-CP Canadian Network shutdown due to TCRC & IBEW strike
Canadian Pacific (CP) has received notice from the Teamsters Canada Rail Conference – Train & Engine (TCRC), and by the International Brotherhood of Electrical Workers (IBEW) that members of the respective unions will be withdrawing their services to operate freight and passenger trains and to maintain CP’s signaling systems in Canada, effective 0001, Saturday, April 21, 2018.
CP has commenced and will continue to execute a safe and structured shutdown of its train operations in Canada.
An embargo application for shipments routing to and from CP Canadian locations is now in place to be effective 0001, Saturday, April 21, 2018. This embargo applies to:

• All shipments originating in Canada which are billed to any Canadian or US destinations
• All shipments originating in the United States which are billed to any Canadian destinations
• The embargo can be rescinded at any time.

CP will continue to bargain in good faith with the TCRC and the IBEW and remains committed to achieving a win-win solution for the company and the two unions. CP urges both unions to work closely with the company and federal mediators to achieve a positive outcome as soon as possible.
For up-to-date information on specific impacts to your shipments or other problem resolution inquiries please contact Customer Service at 1-888-333-8111. You can also reach Customer Service through the Log an Issue tool on Customer Station or via email at customer_service@cpr.ca.
Thank you in advance for your continued patience and support.
James Clements
Vice-President, Strategic Planning and Transportation Services
Canadian Pacific

Teamsters and IBEW unions give strike notice to CP Rail
Job action now possible within 72 hours
The Canadian Press · Posted: Apr 18, 2018 9:16 AM ET | Last Updated: an hour ago
Two unions representing about 3,400 workers at Canadian Pacific Railway Ltd. have formally served the company with 72-hour notice of their intent to strike.
The notice comes at a difficult time for the railway, which is under pressure from shippers to move backed-up grain shipments and supply more locomotives to the pipeline-constrained oil industry in Western Canada.
Both the Teamsters Canada Rail Conference, representing about 3,000 CP Rail engineers and conductors, and the International Brotherhood of Electrical Workers, with about 365 signal and communications workers, cite a lack of progress at the bargaining table.
Absent a negotiated settlement, the unions say their workers will walk out at 12:01 a.m. on Saturday.
The company confirms it has received the strike notices but says it is committed to achieving a “win-win solution.” It says it presented the Teamsters with new three- and five-year agreement options on Monday and plans to present the IBEW with three- and five-year options today.
Both unions reached a tentative deal with Canadian National Railway Co. last month for new contracts for about 1,700 CN Teamsters workers and over 700 IBEW members.
Teamsters workers voted 94.2 per cent and IBEW workers voted 98 per cent in favour of strike action against CP Rail earlier this month.
“Serving a strike notice is part of the bargaining process that unions must follow if they want to be able to strike,” said Canadian Pacific CEO Keith Creel in a statement.
“We remain committed to achieving a win-win solution and urge the two unions to work closely with us and the federal mediators to achieve a positive outcome as soon as possible in the hours leading up to the deadline.“
Canadian Pacific workers voted 94.2 per cent on April 6 in favour of strike action to support their contract demands. (CBC)

Major Congestion in North China, Korea and Japan Due to Severe Fog
The heavy fog is still delaying many containers.
For example, the triangles below are ships in Shanghai at anchor waiting because the fog is too heavy and there is no place to dock in Shanghai.
Congestion exists throughout China, Korea and Japan.

HEAVY FOG IN YANGTZE RIVER AREA AND SHANGHAI PORT
Heavy fog hit Yangtze river area and Shanghai port from 27-March, reducing visibility and stranding ships.
Expected that the recent sea fog will continue to 2-Apr.
Shanghai maritime safety administration has implemented traffic control over the Yangtze River waterway and Shanghai port for several days (beginning in March 27th), and is expected to have a serious impact on the Yangtze river barge and the ship at Shanghai port. More than 1550 ships in the Yangtze River channel have been trapped at the ports along.
As of April 2, Shanghai port is still closed, continuing to control the ship entering into. According to the prediction of the observatory, the heavy fog may continue to 2-Apr. It will take time for normal port operation to recover after heavy fog. Therefore, it is expected That there will have a continuous impact, some sailing will be delay or canceled accordingly. It will also affect the ETD for the port of Loading which on same sailing and behind of Shanghai port, all POD’s ETA,  etc…