Note: It is not our recommendation to engage in the transportation of fresh produce without the necessary marine insurance in place.
The advantages are many, but we will let the marine insurance providers blow their own horns.
The world is in deed a global village and international trade is no longer only the preserve of big companies with strong capital. Increasingly, smaller traders are venturing into international trade and some of them are quite successful. Sadly, a good number of them never get to see another day.
I met with some exporters from Ghana, Kenya, Ivory Coast and Mauritius in Berlin, Germany during one of the FruitLogistica conferences and their stories were harrowing. I learned of some who invested their entire savings into a container of mangoes destined for Europe but lost everything because of extensive delays caused by the liner. Others spoke of buyers in Europe who took possession of their containers of citrus and pineapples but omitted sending payment to them. A frail gentleman from Mauritius told me in his faint voice with a french accent that this might be his last venture as he cannot afford to insure his cargo to foreign markets.
The common denominator here was that they all did not have insurance but wanted to trade regardless.
Must things be dire if you do not insure your produce? What option do you have? Recoveries!
Perishable recoveries is not a new concept albeit an unpopular one. Whether insured (subrogation) or uninsured losses, effective recoveries can ensure business continuity.
For those who find themselves in the situation of my friends above, ensure that you pursue recoveries. If you transport sound cargo and it arrives damaged, almost always, you are entitled to at least some compensation.
Read our recent blog post 4 important points to note when exporting fresh produce.