Avoiding Unplanned Cargo Expenses With the Right Insurance Coverage

Logistics service providers must be prepared for surprises as cargo moves through ports and distribution centers. Small delays at several points in the supply chain can create costs in overtime and late delivery expenses. Shipments with damaged or lost items also result in unexpected costs. Many logistics providers carry insurance to cover these types of expenses, but dont realize that unplanned re-inspection fees also can be avoided with cargo insurance inspection coverage.

How Re-Inspection Fees Fall to Logistics Providers

When products manufactured in foreign facilities do not pass an FDA inspection, a re-inspection occurs after improvements take place. This re-inspection is required for any goods that will be imported to the U.S., regardless of whether or not the foreign facility pays the re-inspection fees.

If the FDA cannot collect payment from the foreign facility, the logistics provider can be held responsible for the fees. However, some cargo insurance providers customize plans to address this loss.

Insurance Coverage for Re-Inspection Costs

Logistics providers that handle cargo from foreign facilities can avoid unplanned inspection fees with the right cargo insurance inspection coverage. Plans that already cover goods during shipment and storage can be tailored to include re-inspection for shippers that work with foreign facilities. The right coverage will save money over time and will help keep costs predictable.

Cargo expenses add up to losses that owners are not expecting. Logistics providers can keep losses to a minimum by customizing the right type of insurance coverage for cargo in all phases of the supply chain.