Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Gain clear understanding of a basic shipment life cycle
• Compare/contrast Ocean vs Air transportation services
• Determine Shipper/Buyer cost obligations in an international
transaction (Incoterms 2010)
• Become familiar with standard export and import
documentation
Class Objectives:
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Address Exporter’s compliance obligations and responsibilities
• Understand risk, carrier liability, and the role of insurance
• Provide an open forum for questions and concerns
Class Objectives:
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Units
Unit 1: Shipment Life Cycle Unit 2: Freight - Speedy or Cheap? Unit 3: So what’s it going to cost me? Unit 4: Incoterms Unit 5: Export Documentation Unit 6: Export Compliance Unit 7: Cargo Security Unit 8: Liability and Insurance
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Objectives
By the end of this unit, learners will:
– Be able to list general parties involved
– Define role of each party
– Understand general cargo flow
Unit 1: From 30,000 Feet
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Supply Chain Partners
Buyer / Seller
Consolidator
Forwarder
Export Customs Broker
Local Trucking Company
Origin Stevedores / Air Cargo Handling Agents
Steamship lines / Airlines
Destination Stevedores / Air Cargo Handling Agents
Import Customs Broker
Customs
Destination Local Trucking Company
Warehouse / Distribution Providers
Bank / Financier
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Shipment Life Cycle
• Negotiate price of product
• Pro forma invoice sent stipulating terms of sale
• Buyer places order
• Product made ready for export
• Booking made with forwarder or carrier (airline / steamship line)
• Trucker dispatched
• Shipping documents processed
• Customs notified of export
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Shipment Life Cycle (continued)
Empty positioned or freight delivered to consolidator
Cargo might be inspected
Cargo exports
Cargo in transit / trans-shipment hubs
Shipment arrives at destination
Cargo entered and cleared through Customs
Freight released by carrier
Trucker dispatched
Cargo delivers to buyer
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Supply Chain
9
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Objectives
By the end of this unit, learners will:
– Be able to compare and contrast air vs. ocean transportation
– Understand cost and timing differences
– Be able to decipher rate quotations
– Recognize critical success factors
Unit 2: Freight – Speedy or Cheap?
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Ocean Freight Like cookin’ good barbecue
• Ocean - LCL & FCL, Contracts, Transit Times, Forwarders
• Why Ship Ocean? Cost Savings, Space, Commodity Value, Extra Lead Times
• What To Look For - Experience, Competitive Pricing, Schedules, Volumes, Carrier Links, EDI
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Air Structure - Pay by weight or volume, Transit times, Hazardous Materials
• Why ship air- Time Sensitive Cargo, More Reliable (less delays/frequent flights), Cost of Products, Lower Minimums
• What To Look For- Customer Service, Competitive Pricing, Carrier Relationships, Technology/Tracking Ability
Air Freight Caffeinated and with $ to burn
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Unit 3: So what’s it going to cost me?
Sample Rate/Quote Sheets
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Review Ocean Rate Quotations
Ocean rate – generally by measure (CBM)
LCL and FCL
Based on commodity
Accessorial Charges
‘Special Notes’
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Review of Ocean Freight Surcharges
GRI – General Rate Increase
BAF – Bunker Assessment Factor
CSF – Carrier Security Fee
ACS – Alameda Corridor Surcharge
PCS – Panama Canal Surcharge
IFS – Inland Fuel Surcharge
Others -- Equipment Imbalance, War Risk, Port
Congestion, Pier Pass, Clean Truck Fee, Chassis
Surcharge, etc.
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Review Air Rate Quotations
• Air rate – generally by weight (kg)
• Service requested (A/A, D/A, A/D, D/D)
• Weight breaks, incl. pivot rate
• Foreign currency
• Not based on commodity
• Volumetric rule
• FOB Charges
• ‘Special Notes’
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Review Airfreight Surcharges
• Pick up
• Airport Transfer
• Handling Charge
• Export Clearance
• Fuel Surcharge
• International Security Surcharge
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Unit 4: Incoterms – Do I have to pay for all of this?
• Objectives -
By the end of this unit, learners will:
– Define the word Incoterm and its application
– Understand correct use of term FOB and name it’s Air equivalent
– Know the top 7 Incoterms
– Be able to read an Incoterms chart and define seller and buyer responsibility
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Incoterms – What are they?
• Incoterms = INternational COmmercial TERMS
• First developed by the International Chamber of Commerce in 1936, and revised in 1953, 1967, 1976, 1980, 1990, 2000, 2010
• The purpose of the Incoterms rules is to provide a set of international rules for the interpretation of the most commonly used terms in foreign trade.
• Written to assist, not dictate.
• Help divide cost, risks, and obligation/responsibilities between buyer and seller
• Incoterms rules are available in their entirety through
the ICC’s publication, “INCOTERMS 2010”
• Represented by 3 letters (i.e. FOB) and a place
(Shanghai, China)
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Incoterms – What are they not?
• They are not law. They must be specified in the contract in order to apply.
• They are not all inclusive.
• They do not address passage of title.
• They do not address recognition of revenue
• They do not address remedies for breach of contract
• They do not address more than one contract (i.e. if goods are sold in transit)
• They do not address container loading
• They do not define vessel loading
• They do not address cargo security
• They do not address payment terms for the contract goods.
• They do not resolve all possible problems in international trade.
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
International Terms Of Sale: Incoterms 2010
Group Goods available from Incoterm Meaning
E Departure EXW Ex Works
F Main carriage unpaid FCA Free Carrier
FAS Free Alongside Ship
FOB Free On Board
C Main carriage paid CFR Cost and Freight
CIF Cost, Insurance and Freight
CPT Carriage Paid To
CIP Carriage and Insurance Paid To
D Arrival DAT Delivered At Terminal
DAP Delivered At Place
DDP Delivered Duty Paid
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
7 Most common terms
• EXW (Ex Works)
• The seller makes the goods available at their facility to the carrier nominated by the buyer.
• FCA • Free Carrier
• The seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. Similar to FOB but may be used for all modes of transportation.
• FOB • Free On Board
• The seller delivers when the goods pass the ship’s rail at origin port.
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
7 Most common terms (continued)
• CFR
• Cost and Freight
• The seller delivers when the goods pass the ship’s rail at destination port.
• CIF
• Cost, Insurance, and Freight
• Same as CFR but the seller also provides insurance coverage
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
7 Most common terms (continued)
• CIP
• Carriage and Insurance Paid to
• Similar to CIF but may be used for all modes of transportation
• DDP (Delivered Duty Paid)
• Shipper pays all costs, including duty, up to the named delivery point (often the customer’s door).
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Incoterms 2010 – What changed?
• Effective January 1, 2011, but Incoterms 2000 are still acceptable
• Several revisions:
• Replaced DAF, DES, DDU with DAP
• Replaced DEQ with DAT
• Guidance for selecting the appropriate rule relative to mode of transit (ocean or multi-modal)
• Advice for using electronic procedures
• Discussion of security related clearances
• Terminal handling charges clarified
• Using Incoterms for domestic transactions
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Why do INCOTERMS change?
• As trade practices change, so must our terms
• September 11, 2001
• Container Security Initiative
• “Known Shipper” requirements for Air cargo
• Sarbanes Oxley
• 2004 revision of the UCC (Uniform Commercial Code)
• FTSR (now FTR) revised relative to Routed Export Transactions
• New EEI filing requirements
• Importer Security Filing
• National Export Initiative
• 100% inspection of cargo on passenger flights
• Etc…
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Incoterms ® 2010
Information gathered from International Chamber
of Commerce and available in full form in the
Incoterms Chamber of Commerce Incoterms 2010
iccbooksusa.com
www.iccwbo.org/incoterms
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Disclaimer
Please consult the Incoterms ® 2010 rules. Incoterm ® 2010 rules
are a registered trademark of the International Chamber of
Commerce.
This presentation provided a brief overview of the basic concepts
and 2010 changes, and should not be employed, by itself, in
business planning or in international transactions nor should it be
construed as legal advice or opinion.
This material should not be distributed without the written
consent of Expeditors International of Washington.
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Objectives -
By the end of this unit, learners will:
– Understand why documents are required
– Understand what documents are required
– Become familiar with L/Cs and select key elements
Unit 5: The Exciting World of Documentation!
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Export Documentation Overview – Why?
Certain documents are required to meet US export regulations
Convey shipment instructions and terms of sale to all parties
Required by bank to fulfill obligations under letters of credit (L/C)
Used to assess import and sometimes export duties overseas
Used to gather statistical data
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Documentation Required for Export – What?
Shipper’s Letter of Instruction (SLI)
Instructs the freight forwarder on how and where to send the shipment
Electronic Export Information (EEI) and AES
Used by US Government Agencies to control exports
Source document for official US export statistics
Filed online with US Customs
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Documentation Required for Export – What?
• Commercial Invoice
• A bill for the goods from the seller to the buyer
• Used by foreign governments to determine the value of goods when assessing customs duties
• Packing List
• Itemizes the material in each package
• Used by foreign customs officials to verify cargo
• Certificate of Origin
• Required by certain foreign governments
• Signed statement as to the origin of the goods
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Documentation: The Infamous B/L
• Bill of lading
• Contract between the owner of the goods and the carrier (i.e. forwarder, airline, steamship line, trucking company)
• Two basic types:
• Original/Negotiable – controls ownership
• Waybill (Air or Sea/Express) – contract of carriage only
• What do you use them for?
• When do you need them? Importer / Exporter
• Why does the carrier need them back?
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Ocean Bill of Lading - Review
• Negotiable document (OBL)
• Express bills lading / Sea Waybill
• Letter of Indemnity
• Expeditors’ house waybill number
• Shipper / Consignee information
• Sailing information
• Container number
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Air Waybill - Review
• Not a negotiable document
• Expeditors’ house air waybill number
• Shipper / Consignee information
• Flight information
• Air rate and ‘other’ charges
• Prepaid or collect
• Total charges
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
US Export Compliance
Why does the US Government control Exports?
1. National Security Interests
2. Control for Domestic Short Supply
3. Enforce US Foreign Policy
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
US Export Compliance
What is an export? Any item sent from the US to a foreign destination.
Mode of transport does not matter.
BIS responsible for implementing and enforcing the Export Administration Regulations (EAR)
EAR regulates commercial and “dual-use” items – i.e. having both commercial and military use
EAR do not control all goods, services, or technology exports. Other US Gov’t agencies also regulate exports
38
Depts and Regulations Governing Exports
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Compliance - as simple as What, Where, Who
1. What are you exporting? Know your product - schedule b number/ECCN/CCL
• www.census.gov/foreign-trade/schedules/b/
• Licensable freight examples – night vision goggles and ball bearings
2. Where is your final destination?
• Embargoed Countries
• Cuba Sudan
• Iran Syria
3. Who is your customer?
1. Screen Denied Parties List
2. www.mkdenial.com
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Required to Notify US Customs of Export
EEI = Electronic Export Information
EEI is required for exports when
Any Schedule B commodity has a value of over $2,500
Commodity is under an export license, regardless of value
Destination is Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria
EEI must be filed prior to export, except if exporter has been granted post-departure filing privileges
Exports to Canada do not require an EEI, unless the shipment is under a license.
Exports to Guam do not require an EEI (but shipments to PR do!)
In-Bond shipments by air do not require an EEI.
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
US Export Compliance - EEI
Timely Filing Requirements:
Ocean: 24 hours prior to loading the cargo on the vessel at the US port of lading
Air: 2 hours prior to scheduled departure of the air carrier
Rail: 2 hours prior to the time the train arrives at the US border
Truck: 1 hour prior to arrival of the truck at the US border
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
US Export Compliance - EEI
Penalties:
$1,100 for each day of delinquency beyond the applicable period but not more than $10,000 per violation may be imposed for failure to file the electronic information
A penalty of not more than $10,000 may be imposed for filing false, misleading information or any other information that may further any illegal activity
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
US Export Compliance – General Penalties
EAR:
Civil - $500K
Criminal - $1M + 10 years imprisonment
FTR:
Fine up to $10,000 or imprisonment for not more than 5 years, or both, for each violation.
ITAR:
Civil – up to $500K for individuals + seizure/forfeiture of goods + debarment from licensing or govt contracting
Criminal – up to $1M and up to 10 years in prison
SJE
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Unit 8: Any other worries?
Hazardous cargo
Pests and Solid Wood Packing Materials
TSA Security
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Hazardous Cargo
Definition – A substance or material which has been determined to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce.
Examples:
Paint
Aerosols
Oxygen tanks
Batteries
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
SWPM: Don’t let the Cargo Bugs Bite!
• SWPM is:
• Wood packing materials used with cargo to prevent damage, including but not limited to dunnage, crating, pallets, packing blocks, drums, cases, spools, and skids.
• SWPM does not include:
• Synthetic or highly processed wood materials used as packing materials (plywood, corrugated paperboard, plastic).
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Solid Wood Packing Material
• Shippers must pay attention to the type of wood used in packaging their shipments • International Standards for Phytosanitary Measures No. 15 (ISPM
15) • Developed by International Plant Protection Convention (IPPC) • All SWPM / bracing / dunnage must be heat treated or fumigated
and properly stamped in order to prevent transport and spread of disease, insects, and certain pests
• Exempt are paper, plastic, and wood panel products like OSB, and plywood.
• Any wood not stamped or branded as heat treated or fumigated may be subject to fines and cargo seizure
• Majority of countries participate in ISPM 15
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Wood can either be heat treated or fumigated with Methyl Bromide.
The official phytosanitary certificate is no longer required.
Instead, the wood must bear the IPPC mark.
Example:
Solid Wood Packing Material
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Air Freight – New TSA Security Regulations
Significant changes in cargo security
February 2009: 50% of PAX cargo required to be screened
August 2010: 100% of PAX cargo now must be screened
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Air Freight – New TSA Security Regulations
Advantages of cargo being screened prior to tendering to airline:
• Reduces cost
• Reduces chance of loss or damage
• Reduces chance of freight being delayed (special receiving lane)
• Your freight is kept secure
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Objectives -
By the end of this unit, learners will:
• Recognize the difference between liability and insurance.
• Assess when a carrier is likely liable for loss or damage.
• Understand liability differences by mode.
• Determine what insurance covers
Unit 10: When Bad Things Happen to Good Cargo…
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Liability, and Insurance
MSC Flaminia: July 14, 2012
3 dead due to mis-declared DG
Oil Field Machinery $800,000 loss
Claims
Conclusion
Insurance
Liability
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Liability exists ONLY:
• When there is a contract of carriage in place when the loss or damage occurs, and
• All obligations under the contract of carriage have been met by the Shipper/Consignee.
Liability
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
If there is a contract of carriage in place at the time that the loss occurs, then the carrier may be financially responsible for whatever that contract says.
• Air Liability:
• Warsaw Convention $20/k or value of goods
• MP4: 19 SDRs per kilo (about $26 per kilo)
• Ocean Liability:
• $500 per Customary Shipping Unit or V.O.G.
• COGSA - 17 Defenses
• Truck Liability:
• Varies by country and by trucker. Usually $.50/lb. or $50 per lot.
• Warehouseman Liability:
• Varies by warehouse contract. Usually $.50/lb. or $50 per lot.
Liability
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Shipment Details:
• 2 Pieces
• 100 kilos
• Commercial Value: $20,000
― One Piece is lost.
― Is the carrier financially responsible for the lost piece? If yes, why?
― How much is the carrier responsible for?
Liability
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
You cannot answer the question without the rest of the information.
• Piece One
Weight: 99 kilos
Value: $100
• Piece Two
Weight: 1 kilo
Value: $19,900
• $26 per kilo or the value of the goods whichever is less.
• 1 k x $20/k = $20
• Value: $19,900
• Liability: $20
Liability
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
Act of God, Carrier not Liable
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
What is insurance?
• Risk Transfer tool – transfer loss from the importer to the insurance company
• Contract of indemnity – releases the importer of responsibility for loss.
Who can purchase insurance?
• Party who would suffer the financial loss
Insurance
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Property in transit (the Cargo)
• What losses would be covered?
All Risks against direct physical loss or damage.
Exclusions – yes but very few
• Geographical Scope – covers from to?
“Door to Door” (in most cases)
• Coverage Sections International, Domestic and Stock at locations while “in transit.” If you ask us to hold an import shipment in our warehouse it is now no
longer “in transit”. Additional coverage can be added at this time.
Insurance Covers:
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• Liability limits are minimal
• Carriers Limit their liability – Why?
To promote International Trade!
Ocean - $500 CSU governed by COGSA
Air – 19 SDR per kgs (approx $26.00), governed by Warsaw convention
• General Average
Penalties assessed to all interests, held on bond!
• Protect against uncertainty of large loss
Willing to pay known small loss (premium) to
transfer unknown large loss?
Why Purchase Insurance?
© 2016 Property of Expeditors International of Washington, Inc. and its subsidiaries. Business Confidential and Proprietary. Reproduction by written authorization only.
• What is the difference between liability and Insurance?
• Why would a shipper / importer buy insurance?
• What is Insurance designed to do?
Conclusion
Arnold Maersk
18 overboard 53 damaged
Seattle November 22, 2013
MOL Comfort: June 17, 2013
Additional Questions/Comments