Risk & Business Magazine CMW Insurance Fall 2015 | Page 8

Relying On Overseas Shipments
The Risks You Face Importing and Exporting Goods
BY:MICHAEL BENNETT, CLIENT EXECUTIVE, V-P TRANSPORTATION, CMW

I

n the increasingly globalized economy, it is more common
than ever for companies to rely on overseas shipments for
materials and finished products. Vancouver is the busiest port
by volume on the west coast of North America, and despite
the recent slowdown in the Canadian and Chinese economies,
cargo volumes at Canada’s largest port continue to grow. Prince
Rupert is seeing tremendous growth in its port operations and is
planning on expanding significantly in the coming years.
Container shipment growth through our ports is expected to
continue into the 2030’s. Automobiles, wheat, sulphur, potash,
coal, lumber and countless other materials and products pass
through the ports in Vancouver and Prince Rupert every day.
If your business includes importing or exporting materials
or products overseas, you face a number of risks each time
merchandise is being transported between buyer and seller. The
further the merchandise travels, the more complex the risks can
be. Insuring those materials and goods can be a complicated
process, and there are many factors to consider in making certain
your interests are properly protected. If you are the owner of
the goods being shipped, you need Cargo Insurance coverage
to protect your assets as they make their way to their final
destination.  If you are a carrier of those goods, you have assumed
responsibility for their safe arrival under contract and Bill of
Lading, and you need Cargo Liability Insurance. 
Knowing when you are responsible for any damage to, or loss
of, property is vital. You may need to protect your imported
property from the time it leaves the manufacturer’s or supplier’s
site overseas – including transporting it to the port, storing at
the port awaiting shipment, while on board the ship, at the dock
in Vancouver, while on a truck or rail car being transported to
your local warehouse, while being stored at that location, and
ultimately until you take delivery at your facility.
While at sea, goods are vulnerable to piracy, theft, fire, weather
damage and marine disasters. Ships in danger of capsizing will
jettison cargo in order to maintain buoyancy. Poorly loaded
containers can cause their cargo to be crushed under the weight.
There are countless ways in which your precious cargo is exposed
to potential loss or damage.
If you’re an exporter who has not been paid for the goods at
the time of shipment, or an importer who has paid for all or
part of the goods prior to receiving them, you run the risk of
suffering a financial loss if the goods are lost or damaged during
transit. Additionally, you may be required to post a bond and/
or cash deposit in order to obtain release o