Value Protect “can act as a substitute or as supplement to regular cargo insurance.”
Maersk said it is introducing a product called Value Protect that it says “offers customers an alternative to cargo insurance, increasing their chance of receiving full compensation in case of cargo damage in transit.”
“Value Protect can act as a substitute or as supplement to regular cargo insurance. With no additional paperwork created, customers shipping with Maersk simply select a package that suits their needs best at a fixed price and will then be part of the customer’s standard shipping invoice,” the company said.
“Value protect is not an insurance but an extension of our liability. It therefore indeed changes our standard bill of lading terms and conditions,” explained Maersk spokeswoman Janina von Spalding. “Extended liability is a commonly known concept, used in different industries. There are other carriers and a number of players in the forwarding segment which offer similar products for their parcel or LCL (Less Container Load) shipments.”
Details about the program are available on the Maersk website here.
Maersk, the world’s largest container carrier, said the Value Protect coverage would be valid while the cargo is in its care and custody, and “covers cargo loss or damage in cases such as fire, accidents due to danger of the sea, theft, natural disasters, cyber incidents, cargo damages caused by delay and contributions in General Average, all of which would be excluded under the conventional terms for carriage.”
However, Maersk says “Value Protect does not cover loss, damage, and expense caused or occasioned by “a number of factors.” These include war, strikes and other sorts of labor unrest and “any other cause arising without the actual fault or privity of the Carrier, or without the fault or neglect of the agents or servants of the Carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the Carrier nor the fault or neglect of the agents or servants of the Carrier contributed to the loss or damage.”
Value Protect may be purchased for commodities shipped in dry
containers as well as for selected commodities shipped in reefer
containers. Shippers can buy protection in amounts of $15,000, $30,000, $60,000 or $120,000 for dry freight and $12,000 or $36,000 for reefer cargo. However, Maersk does not offer the product for many types of fruit and seafood.
Von Spalding said if a customer arranges “pre-carriage and on-carriage with Maersk, then Value Protect will also apply to that part of the transport.”
She added that “Maersk is transforming into an integrated global container logistics company. We want to offer our customers simpler end-to-end products and services as well as seamless customer engagement simplifying their supply chains. With the introduction of Value Protect Maersk is expanding its commercial offering, answering customers’ needs for simpler solutions.”
Klaus Rud Sejling, head of logistics and services at Maersk, said, “International conventions limit carriers’ liability and set potential pay-out limits. By purchasing Value Protect, our customers will have peace of mind so that even if an unpredictable event should happen, they can rest assured knowing their business is protected.”
Another major container carrier, CMA CGM, introduced a product called Cargo Value Serenity that it said would allow for “quick compensation for businesses whose goods have been damaged or lost during transport for any reason, including natural disasters. It provides for a refund up to 100 percent of the value of the goods in less than 30 days.”
Maersk said “roughly 30 percent of the cargo that moves on the ocean is uninsured. For some cargo owners, it can be quite complicated, time consuming and expensive to apply and contract for all shipments.”
Maia Parlagashvili, global insurance product manager at Maersk, said, “We want to offer our customers smart end-to-end solutions, simplifying their supply chains. When we asked them about their insurance experiences, many told us they would like to have more simple solutions to cover their logistics risk. Value Protect is our answer to this.”
Maersk said the Value Protect was developed over the last six months and tested in France, Singapore, China and Turkey. It said the product will be gradually rolled out worldwide. IT is ot yet available for customers in the U.S. but will be next year.
Maersk introduces cargo insurance alternative
