Traditional marine cargo insurance offers protection for cargo owners against the known risks of transports – but the process of applying it for all shipments can be complicated, time consuming, and expensive. And as a result, 30% of cargo moved by ocean freight is uninsured.
For a small business, those three words are red flags, because your time is valuable, and you might not have the budget to contract insurance for multiple shipments and containers. A single container represents not just a portion (sometimes a big portion) of your inventory; but it is also a key link in a supply chain that begins with you and ends with your customers. And it needs to get to its destination safely and timely.
That’s why Twill, supercharged by Maersk, has introduced Value Protect to the logistics services within our platform. But you may be wondering, what is Value Protect? And why should I use it? Well, let’s take a look in more detail!
What is Value Protect?
In simple terms, Value Protect is an alternative form of extended liability that can replace, or be used in addition to, traditional marine cargo insurance.
When you place a booking to ship a container, you enter a contract for carriage – which defines the rights, duties and liabilities of each party to the contract. This contract, alongside the Bill of Lading (the proof of the shipment of your cargo), play a big part in governing international transport. So international laws, as well as the terms and conditions defined in the Bill of Lading, govern the transport of goods across the world, and here a good part of the risk of cargo losses or damages sits with the company shipping the goods. Having an alternative to insurance can help you protect your cargo against accidental damage during the journey. This is Value Protect - an alternative to cargo insurance increasing your chance of receiving full compensation in case your cargo is damaged in transit.
Why use Value Protect for ocean freight shipping?
We understand that your supply chain must run like clockwork, without any hiccups and interruptions. That’s why we mitigate all your logistics-related risks end-to-end. Value Protect is our solution that protects your cargo. With more peace of mind, easy online application, simple claim process, and higher recovery limits. All in just a few clicks.
Take General Average for example. This is a legal principle in maritime law that can be declared by a vessel owner in the event of a major loss or sacrifice of cargo and it requires all parties involved in a particular voyage to proportionally share the losses. In past cases, uninsured shippers have been required to pay 60% of the cost and freight (CFR) value of their cargo to have it released. This can amount to tens of thousands of dollars – and if your cargo has been damaged then the losses can mount even further.
Value Protect covers general average contributions within its scope – and with a simple, efficient process, it removes the obstacles to getting effective protection for your cargo.
“Value Protect provide an easy, transparent, and simple cargo damage protection for customers as they can purchase it together with Ocean Freight. Given the current situation in shipping and unpredictable situation, Value Protect extends the liability for terms of carriage to cover aspects that are not usually included in traditional insurances.”
What does Value Protect compensate?
Value Protect compensates for a number of the most prominent risks present in ocean freight shipping – but there are some exceptions. Here’s a simple checklist of what it compensates and what it doesn't:
Get to know more about Value Protect
Protecting cargo and ensuring the resilience of your business and supply chain shouldn’t be out of reach for small businesses. Value Protect levels the playing field, to give you greater protection and more control over the entire process. Find out more about it on our dedicated service page and read how you can add Value Protect to your booking, or sign up to Twill today and see it in action for yourself!