Declared Value: There are certainly some situations where a shipper might use “declared value” or insurance provided by your small package carrier. If you are experiencing damage with your shipments and you ship infrequently, the carrier’s insurance is a convenient service to better protect your shipment. However if you are a consistent shipper sending multiple packages a day, use of declared value is a pretty expensive proposition at 85 cents per hundred dollars of value. So, here are a few steps you can take to minimize your transportation insurance costs.
Step 1 : Review your packaging: There are lots of options to review the strength and sturdiness of your packaging that may result in less damage to your product in shipping. Both of the major small package carriers offer package engineering assistance. There are also a number of firms on the internet such as www.wiley.com or www.chainanalystics.com
offering package engineering assistance.
Step 2: Data: Obtain data on your losses over the past year and the value of your shipments in the last twelve months. You need information to talk about.
Step 3: Review your corporate insurance options: Many companies have corporate insurance programs for other parts of their business that allow addition of a rider for transportation insurance. In my experience this price is very cost competitive.
Step 4: Obtain an alternate quote: U-Pic shipping insurance www.u-pic.com is a service provider that can give you a competitive quote on your cargo insurance. You can also check out www.pipinsure.com for a price comparison.
Step 5: Self insurance option: Some companies have very limited losses and find that a self insurance program is the most cost effective method for their business.
Step 6: Corporate policy and audit: Once you identify a new procedure for insurance coverage you must publish this procedure and then audit to make sure the new option is being followed.
Best wishes for cost effective shipping!
An interesting side note: We are currently working with a company that spent $80k+ on declared value coverage on their shipments US and internationally even thought though they had corporate insurance to cover transportation and of course we have run into this before. Another company was paying separately for insurance on small package and air freight but they had a corporate self insurance program.
Thomas M. Stanton MA LCB, AFMS, International Analyst, can be reached atTom.stanton@afms.com, 503-246-3521.
Step 1 : Review your packaging: There are lots of options to review the strength and sturdiness of your packaging that may result in less damage to your product in shipping. Both of the major small package carriers offer package engineering assistance. There are also a number of firms on the internet such as www.wiley.com or www.chainanalystics.com
offering package engineering assistance.
Step 2: Data: Obtain data on your losses over the past year and the value of your shipments in the last twelve months. You need information to talk about.
Step 3: Review your corporate insurance options: Many companies have corporate insurance programs for other parts of their business that allow addition of a rider for transportation insurance. In my experience this price is very cost competitive.
Step 4: Obtain an alternate quote: U-Pic shipping insurance www.u-pic.com is a service provider that can give you a competitive quote on your cargo insurance. You can also check out www.pipinsure.com for a price comparison.
Step 5: Self insurance option: Some companies have very limited losses and find that a self insurance program is the most cost effective method for their business.
Step 6: Corporate policy and audit: Once you identify a new procedure for insurance coverage you must publish this procedure and then audit to make sure the new option is being followed.
Best wishes for cost effective shipping!
An interesting side note: We are currently working with a company that spent $80k+ on declared value coverage on their shipments US and internationally even thought though they had corporate insurance to cover transportation and of course we have run into this before. Another company was paying separately for insurance on small package and air freight but they had a corporate self insurance program.
Thomas M. Stanton MA LCB, AFMS, International Analyst, can be reached atTom.stanton@afms.com, 503-246-3521.
