In international trade, there are a variety of shipping methods available to safely deliver your goods to their final destination.
When people think of shipping goods throughout the global market, the first visual that comes to mind is a typical shipping container loaded onto a large container ship making its way across the ocean. However, there are many alternative shipping methods used when importing that suit the needs of a variety of goods. These alternative methods are referred to as non-containerized since they do not use a container to protect the goods during transit.
Alternative Shipping Methods for International Trade
- On Deck Non-Containerized
On deck, non-containerized shipping refers to shipments that are stored directly on the deck. These items are subject to damage from the elements since they are completely exposed during transit. For Marine Insurance policies, a lower policy limit is typically applied to these types of shipments.
See Full Infographic - Roll on / Roll off – RORO
Roll-on/roll-off (RORO or ro-ro) ships are vessels designed to carry wheeled cargo; such as cars, trucks, semi-trailer trucks, trailers, and railroad cars. These vehicles are driven on and off the ship on their own wheels or using a platform vehicle; such as a self-propelled modular transporter. Typically, Marine Cargo Insurance coverage will not apply while the goods are under their own power.
See Full Infographic - Break Bulk
Break bulk cargo (also referred to as general cargo) are goods that must be loaded individually and not in shipping containers nor in bulk, as with oil or grain. Ships that carry this sort of cargo are often called general cargo ships. Marine Insurance coverage on these shipment types often excludes shortage from containers and limits theft coverage to cover theft of an entire shipment.
See Full Infographic - Bulk Shipping
Bulk shipping is primarily for commodities such as Grain and Crude Oil which are loaded into specially designed ships filled with only that commodity. Marginal losses from standard filling and emptying procedures are not covered under a Marine Insurance Policy.
See Full Infographic
What to Know When Using a Non-Containerized Shipping Method
Since the shipping methods outlined above do not use a shipping container to protect the imported goods during transit, there are a few questions that may need to be answered when securing a Marine Insurance policy.
- How is the item protected from damage / sea water?
- Is it stored on deck or below deck?
- How is the item tied down / secured?
- Is there any standard inspection completed after loading the item on the ship?
- If there is an inspection, what forms are used and who completes it ( i.e. the assured or a third party)?
Make sure your goods arrive safely to their end destination by selecting the most fitting shipping method for the job. No matter which method is chosen, the items should be protected in transit by a Marine Cargo Insurance policy to cover any potential loss or damages.
For more information on how Marine Cargo Insurance works, download our free presentation to learn the basics.
Visual Guide to Non-Container Shipping Methods
Click the image for a downloadable PDF
