Importance of cargo insurances

Why to take cargo insurances?

It’s always a good option to take preventive measures over your shipment because there are factors that goes beyond our control like bad weather conditions. So if something happens during shipment, a good insurance scheme can lift you up from the loss.

Common types of cargo insurance.

It’s almost like health and life insurances. There are many cargo insurance policies you can choose from. Each has its own coverage and limitations.

1.Land cargo Insurance

It covers your shipment when its being transported via land. It’s a domestic one and coverage is only with in the country. All the land transportation modes are included like Trucks, other utility vehicles

Coverage aspects: theft, collision damage and related risks

2.Marine cargo insurance

This type covers transportation through sea or air. It is mainy used for international shipment. Marine cargo insurance policies are either renewable or permanent. If you’re not a frequent shipper, it’s better to choose the renewable policy as it applies to one-time, single voyages. These tend to be relatively cheap. As for frequent shippers, a permanent policy will cover you for a determined period of time regardless of the number of shipments you’re sending.

Coverage aspects: damage while loading/unloading, bad weather, piracy and related risks

Benefits of cargo insurance:-

All risk coverage

The all-risk coverage offers wide range of protection against external factors. In general, it covers most types of physical losses and damages as a result of the external causes. This is usually for what’s deemed as “approved” or “general” goods. That means goods that are new and not easily susceptible to losses and damages.

What are excluded?

·       Damage due to negligence

·       Custom rejection

·       Cargo abandonment

·       Loss of market

·       Non payment issues

General average coverage

This coverage is useful for marine cargo transits. It takes only partial loss occurred to the shipment. Under general average, all losses from damages caused during a problem at sea, should be divided among owners of the surviving merchandise. That means as the owner of a cargo that has not suffered damages, will be liable for financial compensation to the owner whose cargo has been damaged or lost.

Artificial Intelligence in Overseas shipping- Freight Solutions

Artificial Intelligence and Automation making revolutions in overseas shipping

Many of the processes in the shipping industry have been in use for years, but new technologies could dramatically change the industry operations and the ways in which it moves goods around the globe.

Do you know which are the busiest months for Ocean Freights? It’s from September to December. In such crowded seasons, the demand for shipping space in containers and the speed at which ship arrives at the port can hit the companies in issues like shipment delays, more expenditures etc.

In a retail world where Amazon and other large retailers offer quick shipping, for free, manufacturers and retailers are at risk of losing money and customers, if deliveries are delayed.

For an industry like cargo shipping that has used some of the same systems for years, artificial intelligence and automation offer an opportunity for revolution. Did you hear that Japanese shipping companies are in the stage of making self-navigating cargo ships.

 How AI works?

We need to know about Machine learning in order to describe this. Machine learning includes four factors

·       Reactive Computers

Reactive computers cannot form memory by their own or learn from past experiences, they merely react to the world based on a pre-programmed set of algorithms. Reactive machines will never get bored, and they will not take an interest. They will just do whatever they’ve been programmed to do, based on set of rules. We can say they are narrow form of AI

·       Short Memory

Limited memory allows the machines to make better decisions by looking to the past in more effective way. For example an auto driven ship will measure the data regarding the speed and headings of other vessels not in single moment, but can log measurements it has taken over time to make assessment in order to establish the closest point of approach.

·       Theory Regarding The Human Mind

 Theory of mind requires machines to be able to create representations of the world which is taken into account for the knowledge, beliefs, emotions, and intentions of others.

If machines will ever behave human-like artificial intelligence, they need to understand the fact that each of us has different thoughts and feelings and may not have the same level of knowledge that they do.

·       Self-Awareness

Self-aware machines are aware of their own existence. To get to self-awareness, we first need a deeper understanding of human memory, learning, and intelligence. Our understanding of human consciousness limits our ability to replicate it with machines.

See what Macciola [chief innovation officer ABBYY] says.

“IoT technologies allow carriers to transmit vital stats, such as temperature, location, and power supply via satellite,” he said. “By having this information sent to the cloud and analyzed at a central office, carriers have real-time information as issues develop that also leads to increased safety for port staff.” This allows processes to be automated, helping to ensure that trucks and freight aren’t damaged en route.

Freight solutions is a well-established international logistics solutions provider based in the Kingdom of Saudi Arabia. With multiple modes of transport via Air, sea and land, the company is equipped to handle all types of consignments irrespective of size and quantity. With a decade of experience in the field and list of a very satisfied clientele, we assure you cost effective and punctual services.

For en-queries visit : www.freights-solutions.com