Globe wide supply and demand fuels the import and export trade traffic around the world where raw materials or goods manufactured in one part of the world are sent out for destinations elsewhere around the world by air, sea or land transportation modes.

While the cargo insurance must be in place in case of physical damage, CMR Convention Laws have been established to set common standards and responsibilities for shipping, carrying and receiving cargo for land transport so the party (ies) responsible for causing the damage can be identified.

ACTUAL CLAIM SAMPLES

  • Insured is a refrigerator manufacturer and orders a pallet size of own brand refrigerant motors from the manufacturing site in New Zealand. Motors were shipped airway and when the cargo arrived, the pallet was dropped by the airline’s cargo handlers resulting in €10,000 in cargo damage. The insured insists that their brand carrying damaged motors cannot be salvaged as 2nd hand goods & must be scrapped.

 

  • Insured is a pharmaceutical company and orders a shipment of heart medication from Denmark. Special instructions were noted on the CMR that the cargo was to remain at 22 Celsius temperature; however, when arrived the cargo was frozen as the truck cooler was set at -22 Celsius resulting in total loss amount of € 500,000.