Tools - Calculating Insurance

You are looking at over $100 million dollars of cargo claims from the APL China, which lost over 300 containers during a 1998 typhoon. Seven Seas Insurance is a welcome value added service that Kestrel Liner Agencies operating as Tropical Global Logistics can provide to its customers to protect against serious financial loss such as this.

Until now, the process and placement of insurance premiums has been a hit or miss proposition for the buyer. Kestrel Liner Agencies LLC automatically insures your international LCL shipment when the terms are freight collect (FOB or Ex-works).

We apply a valuation formula when the supplier or forwarder has not provided our agent(s) which provides full door to door , all-risk, zero deductible coverage.

Insurance Rates

The standard rate is US$ 1.00 per US$100 value on a cost, freight, plus percentage add on basis. (1% of declared C&F+10% valuation)

Valuation when invoice value is provided

The method to determine insured value is:
Invoice Value + Freight Charges + 10% add on=Insured Value
Insured Value x 1.0% = Insurance Premium
Cargo is insured for C&F+10%

How to calculate insurance premium when value is not available

Kestrel uses a common FOB value for general cargo of US$1200 per cubic meter. 35.314 cubic feet = 1CBM

Facts to Know

The ocean carrier has limited liability governed by International laws. In most cases the liability is limited to US$500 per package for which palletized cargo and Container loads are considered as one package