Bulk Liquid Shipping Insurance: What Shippers Must Know Before Booking

Introduction

Transportation of bulk liquids in the current globalised supply chain has turned into a mission critical issue to shippers in India and the USA. Be it edible oil, chemicals, or industrial liquids, the transportation of goods between the source and the destination may require specialised transportation such as the ISO tank container (also known as an iso container tank) and a web of service providers. We realize the intricacies of the sea freight forwarding service, ocean freight forwarding service and the extra aspect of risk at FAK Cargo. That is why bulk liquid shipping insurance is one of the least considered, but the most necessary fragments of the puzzle. In this blog we shall take you through what a shipper needs to find out before he/she books a shipment of bulk liquids, in India and USA markets.

Central Thesis 1: Learn about the Special Hazards of ISO tank use.

In transporting bulk liquids in ISO tank containers, you have to do with liquefied or pumped cargo that can be hazardous, food grade or industrial. These are distinct risk profiles: leakage, contamination, failure to control temperatures, damage during handling and even environmental responsibility. According to industry commentary, the issue of bulk liquids is unique in that it involves unique risks.

These risks are further amplified by multimodal hand-offs (sea to road to rail) and changing regulatory regimes in the environment of India, where terminals like those at Nhava Sheva, Mundra or Hazira take large amounts of tank containers in and out. The ISO tank (frame, valves, lining), cargo, and third-party environmental liability should be specifically insured in an insurance policy. India — An example is protection during transit and temporary storage of ISO tanks, which is offered by specialist insurers in India.

To those shippers using sea freight services or ocean freight forwarding services (or even air cargo forwarding solutions in which a portion is flown) ensure that your provider has the coverage to the insurance fits your cargo and container type (ISO tank). In this case, skimping may lead to huge financial losses.

Key Point 2: Delimit the Scope of the coverage and responsibility in the India-USA Corridor.

The insurance discourse when you are making a shipment between India and the USA, and it could be sea freight, or combination of the two, requires that you discuss: who will cover the perils (shipper, freight forwarder, carrier), what perils are covered (fire, explosion, leakage, contamination, general average), and at which point the risk changes hands. An excellent policy will indicate the liability when loading, ocean transit, unloading, and inland carriage.

As an illustration of the above, when you are using an ISO tank in Mumbai (or to be more precise, in Nhava Sheva) i.e.: iso tank in Mumbai, iso container in Nhava Sheva then, as you head to a US port you would want to make sure that your logistics agent in India (also among the best logistics agents in India) has made an arrangement with their counterpart in the US. Any trans-shipment intermediaries, inland leg in India and sea-leg to the USA must be indicated in the terms of your policy. Any lapse in coverage may nullify coverage.

In addition to this, it is important to work with the ISO tank operators in India and ensure that the services of ISO tank depot services or tank container depots in India used in the storage or pre-loading facilities, are in compliance. Should the damage happen when the tank is in a depot on the eve of going to sea, you will be out of pocket in case the policy considers that as a warehouse risk rather than a transit risk.

Summary: Use Your Logistics Network and Insurance as a Strategy.

Insurance is not only an expense, but it is a strategic asset. In the time that you are organizing a large shipment of liquid, the logistics company (in this case FAK Cargo that provides port agency services and bunkering services in India) must include insurance planning into the chain supply of the ISO tanks. In the case of shippers that have used 20 ft ISO tank container in Mumbai or isotank trailer in India as road pickup, the ground leg should be considered.

You can enjoy the benefits of peace of mind, enhanced mitigation of risks as well as leverage terms of the insurance to negotiate more aggressive contracts given that supply chain management for ISO tanks is integrated with insurance planning. Insured shipment will be more appealing among customers and partners, especially in the cross-border trade between India and the USA.

Moreover, the importance of selecting a forwarder providing sea freight services (and air freight services or air freight logistics backup) should not be underrated, either. When one of the sea legs is blocked or congested, the presence of more flexible logistics options might prove to be a critical factor, including insurance that covers a modal switch.

Conclusion

Overall, it can be stated that the shipment of large quantities of liquid cargo in the form of ISO tank containers presents one of the most efficient and standardised methods of the transportation. It also, though, introduces specialised risk, particularly in cross-border routes such as India – USA. The next time you book your shipment, keep in mind: do not underestimate the risks involved (especially when it comes to the container and the cargo), make sure that you understand the coverage over the entire route (including hand-offs and depots), and make insurance a part of your logistics strategy, not an after-thought.

We are at FAK Cargo and we are here to help you at any level, like ISO tank, at Nhava Sheva, to sea freight forwarding services, to the ultimate USA delivery, etc. To stay informed about the latest in the field of logistics, gain insight into the industry, and get smarter in the shipping business, follow us on Instagram, LinkedIn, Facebook.

With the correct insurance lens that you prepare in advance, you have insured your cargo, your business and your reputation. Truck with prospects — and insure with specifics.