First Class Protection with Air Cargo Insurance Coverage
Interconnected economies continue to feed the rapid pace of global e-commerce, where savvy consumers surf the web requesting products “they want yesterday”. This constant growth is keeping businesses on their toes, and the ability to produce and deliver goods quickly is imperative for mastering a competitive advantage in today’s growing economy. As a result, businesses are racking up their sky miles with air cargo.
Revealed in a study conducted by Boeing, world air cargo traffic is expected to increase by 4.2% each year until 2037. This means world air cargo traffic will more than double in the next 20 years. As global expansion is maximizing connections between retailers and consumers, businesses are taking advantage of air transportation. Here’s why:
Factors such as severe weather, mishandling by intermediaries, or plane fires can interfere with your goods in transit. In fact, many frequently transported goods, such as phones and laptops, contain highly flammable objects increasing concern in aviation.
In March 2018, a fire in the cargo hold of a Delta airlines flight ignited due to an overheating lithium-ion (li-ion) battery. Luckily the fire was detected before take-off and the crisis was averted, however experts claim the incident highlighted a “hard-to-combat risk” threatening airlines “with surprising frequency”. The Federal Aviation Administration (FAA) reported 31 incidents related to li-ion batteries in 2016 and 46 incidents in 2017. Although cargo holds are built with systems designed for fire suppression, li-ion batteries’ internal chemical reactions give off extreme amounts of heat, causing harm to nearby cargo and devices.
A study conducted by Harris Poll for UPS Capital, emphasizes “When incidents occur, they can have a significant impact on relationships, reputation and revenue”. Despite the benefits of fast, secure and reliable transportation, risk still poses many challenges for shippers transporting goods by air. Although these increasing risks may be out of your control, you’re still held liable for the loss or damage of your goods. Fortunately, there is a solution for that, providing you with real protection when tragedy strikes.
Air Cargo Insurance Calling for Blue Skies Ahead
A full-risk cargo insurance policy, like one from UPS Capital, provides you with worldwide coverage regardless of the transportation carrier or shipping mode. In the event something happens, you are reimbursed up to the invoice value of your goods, plus freight costs. Even better, there is no need to prove fault or liability on the part of the carrier. Coverage is provided from the time your goods take off, to the time they reach their destination.
Whether you’re shipping heavy equipment or fresh goods, air cargo insurance coverage will provide you with real protection. Many shipping policies have fixed insurance rates, but air cargo insurance rates may be calculated based on the value of your goods and unique coverage needs. Your cargo insurance policy is essentially built for you, optimizing your coverage in our increasingly complex global supply chain.
The need for air cargo will continue to grow, as the need for fast and reliable movement of goods continues to consume our global markets. While its global reach and timely transportation is ideal for almost any business, risk can make any good thing, go bad. Air cargo insurance coverage provides protection when and where you need it and gives you peace of mind in the event something happens. If you’re interested in learning more about the costs of insurance or would like to get a quote, visit the UPS Capital website and connect with one of our licensed professionals.
Author: Jim Poole
Jim Poole is head of International Marketing at UPS Capital® with extensive background in Global Freight Forwarding Revenue Management. Having managed major international projects and teams, Jim demonstrates expertise in global sales strategies, product innovation, and ensuring profitable growth for UPS international air freight products.
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