DANGEROUS GOODS
AND INSURANCE

Dangerous Goods

CFR Freight will not handle hunting trophies to or from South Africa. CFR Freight does not support the use of arms or ammunition and will not ship any products/parts used in the production or assembly of ammunition.

Hazardous class 1 and 7 are strictly not accepted by CFR Freight. Any shipments found to be mis-declared will incur penalties which will be for the shipper/consignee’s account.

Other hazardous classes are subject to prior acceptance.

Insurance

Marine Insurance

Marine Insurance is a contractual agreement between the insured and the underwriter (insurance company); whereby the underwriter offers to indemnify the insured against certain specified risks or events. It is the intention of the agreement that the insured will be placed in the position that they would have been in had the loss or damage not arisen. E.g. The insured may be financially compensated for lost goods, to the full value of the goods and any additional costs that may have incurred during the movement of the cargo.  Alternatively cargo damaged during transit may be repaired at the underwriter’s expense.

It is important to note that this is a contractual agreement and is subject to terms and conditions, e.g. adequate packaging of cargo is required, excess regulations may be applicable.

Marine insurance is not compulsory under most Incoterms (contractual terms of shipment).  Incoterms that include compulsory marine insurance (for the Seller)  are CIP (Carriage and Insurance Paid To ….) and CIF (Cost Insurance Freight).

The liability factor, in most cases, lies with the buyer of the cargo. It is only under Incoterms of DAT, DAP and DDP that the seller bears the risk to destination. This means that the transfer of risk is dependent on the Incoterm and not on the point to which freight is paid.

Liability Insurance

Liability Insurance is a limitation of a carrier’s liability and is limited to the maximum amount stipulated on the Terms and Conditions on the bill of lading; or subject to the Terms and Conditions of the bill of lading.  Carriers limit their liability in the event of a claim in terms of the carrier’s revenue and not the cargo value. It is due to this limitation that the need for a value-related form of indemnity is apparent, and this is the role of an insurance cover – see Marine Insurance.

International carriers will limit their liability in accordance with the terms of the contract of carriage and this is in line with the ruling conventions; i.e. Hague-Visby Rules. These are reflected on our bill of lading Terms and Conditions.

In terms of marine insurance, should a loss arise, the insurer will settle with the insured and obtain the cargo owner’s contractual rights against any third party (e.g. carrier). This means that the insurer will settle and acquire the right to counterclaim against the carrier, for the loss incurred. Although the insurer may pay out the full insurance value of the cargo, their counterclaim against the third party (e.g. carrier), if successful, will return an amount lower than the full value as paid out.