In an article in Logistics Management, Rosemary Coates wrote:

That is why insuring your merchandise is important. However, if they were your cargo it could be catastrophic. Ten thousand, out of 130 million, do not sound like that many. Out of that total, 10,000 containers fell into the sea due to high seas, severe weather conditions, incorrect stowage, and various types of accidents. According to the World Shipping Council, those containers held more than $12 trillions’ worth of cargo. In 2017, 130 million freight containers were transported by sea. RisksĬontainers sometimes fall overboard or are released by sea vessels during severe storms. It may also be necessary to work with a lawyer and insurance agent to fully understand your policy and make sure you are protected.”Ī voyage policy is a type of insurance policy that provides coverage due to unforseen risks to marine cargo. “Overall, it’s crucial for shippers to document their cargo’s value in case of disputes, losses, or damages. In the US, for example, insurance for freight being shiped by truck does not provide protection against every type of loss.Ĭ says the following regrading cargo insurance: When insuring freight, it is important to read the small print, because most policies have limitations. There is typically insurance coverage for the goods while they are in transit or being stored, until the buyer has them. Most shippers, especially if their cargo is large, should take out cargo insurance to protect goods from damage, theft, or loss while in transit. However, carrier liability protects the carrier more than the cargo. People in the industry refer to it as carrier liability. In most jurisdictions, carriers must carry a minimum amount of cargo insurance. The Spanish word came from the Latin Word “ Carricare,” which meant “to load a wagon or cart.” The Latin word “ Carrus“ meant “wagon.” Carrier insurance and cargo insurance Where does the word ‘cargo’ come from?Īccording to, the word first appeared in the English language in the 1650 with the meaning “freight loaded on a ship.” It came from the Spanish word “ Cargo,” meaning “burden,” which came from the Spanish word “ Cargar,” meaning “to load, impose taxes.”

However, when emergency supplies are being carried to, for example, a disaster zone and the carrier is not making a profit, we might still refer to it as cargo. In most cases, transporters or shipping companies carry cargo for commercial gain. However, today we use it for any type of freight, including loads carried by airplane, motor vehicles, train, and ships or boats. Initially cargo referred to freight on shipsĬargo originally only referred to a load on a ship. The term ‘shipping’ refers to the transportation of cargo. “All articles, goods, materials, merchandise, or wares carried onboard an aircraft, ship, train, or truck, and for which an air waybill, or bill of lading, or other receipt is issued by the carrier. When we transport humans, however, we refer to them as passengers or crew.ī has the following definition of the term: We can also refer to livestock during transport, such as cattle, pigs, or chicken as cargo. For example, if the cargo is dairy produce, it could be cheese, yogurt, milk, cream, or butter. In this context, ‘ produce‘ means things that have been made or grown, especially things connected with agriculture. We can transport cargo by land, sea, or air. Cargo refers to goods or produce carried in a truck, van, airplane, train, or ship.

Cargo vessel meaning