Maersk offers alternative cargo cover in “Value Protect”

Denmark-based shipper Maersk has begun offering its customers an extended liability solution, called Value Protect. Maersk said that it was offering an alternative to cargo insurance, and increasing the customers’ chance of receiving full compensation in the event of damage in transit.

The policy is valid while the cargo is in the care and custody of Maersk. It covers cargo loss or damage in case of fire, accidents due to danger of the sea, theft, natural disasters, cyber incidents, cargo damages caused by delay and contributions in General Average, all of which Maersk said would be excluded under the conventional terms for carriage.

Klaus Rud Sejling, Head of Logistics and Services at Maersk, said that “We take care of every container we transport. Yet, some events might be outside of our control, such as extreme weather or perils of the sea that may result in cargo loss or damage,” adding that international conventions limited carriers’ liability and set potential pay-out limits.

Marine cargo insurance protects cargo owners from the known risk of transports; but some 30% of the cargo moved in blue water is uninsured, said Maersk.

Value Protect is being offered either as a substitute for or a supplement to regular cargo insurance. In the terms it states “Value Protect is not an insurance of the Goods nor is Value Protect creating any such insurable interest in the Goods”.

Maersk said that Value Protect could be purchased for commodities shipped in dry containers as well as for selected commodities shipped in reefer containers. The solution, currently available in some countries will be phased in worldwide over the coming six months.

In March, five crew members died following a fire on the Maersk Honam. That was the largest general average in history. Maersk said that this incident was not the cause of the issuance of a new range of policies.

The policies available are listed as follows:

dry-1Dry StarterUp to $15,000$29
dry-2Dry BaseUp to $30,000$59
dry-3Dry PlusUp to $60,000$118
dry-4Dry ExtendedUp to $120,000$235
dry-5Cool StandardUp to $12,000$39
dry-6Cool AdvancedUp to $36,000$117

Value Protect covers cargo loss or damage in cases such as:

  • Any case of fire
  • Fault or neglect in navigation or management of the ship
  • Accidents due to dangers of the sea
  • Theft
  • Saving or attempting to save life or property at sea

Value Protect extends the Carrier’s contractual liability provided for in the Terms for Carriage. A signed up client will see Clause 7.2 of the Terms for Carriage derogated from the terms and the Carrier will offer, subject to Value Protect Terms and to the extent available under Value Protect tier purchased by the Customer, compensation for claims arising from a Covered Event up to the commercial value of the Goods covered by Value Protect, as evidenced by the commercial invoice for the Goods.

The Carrier’s extended liability include:

  • Loss and damage to Value Protect Goods, arising from a cause which would otherwise have entitled the Carrier to exclude liability under the Hague Rules under Article IV Rules 2(a),(b),(c),(d),(h),(l) and (o).
  • General average contributions on part of the Value Protect Goods.
  • Salvage contributions on part of the Value Protect Goods.

Outside of Value Protect coverage is:

  • Commercial damages and financial losses incurred as a result of delays
  • Wrongful handling related to the shipper and inherent defects to the goods
  • Transport leg outside Maersk Bill of Lading
  • Commodities: fish, kiwis, mangos, avocados, carambolas, berries, peaches, plums, apricots, grapes, melons and bananas.
  • Geopolitical events

Value Protect does not apply for any shipments to or from Cuba, North Korea, Crimea, Syria, Iran and Sudan.

Neither does Value Protect cover any loss, damage or expense caused or occasioned by:

(a)  acts of war

(b)  acts of public enemies

(c)   arrest or restraint of princes, rulers or people, seizure under legal process

(d)  act or omission of the shipper or owner of the goods, his agent or representative

(e)  strikes or lockouts or stoppage or restraint of labour from whatever cause, whether partial or general

(f)    riots and civil commotions

(g)  wastage in bulk of weight or any other loss or damage arising from inherent defect, quality or vice of the Goods

(h)  insufficiency of packing

(i)    latent defects not discoverable by due diligence

(j)    cyber-attack

(k)   any other cause arising without the actual fault or privity of the Carrier, or without the fault or neglect of the agents or servants of the Carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the Carrier nor the fault or neglect of the agents or servants of the Carrier contributed to the loss or damage.

If the Customer has purchased Value Protect Plus, Value Protect Extended or Value Protect Cool Advanced tiers, the Customer will have no obligation to instruct a third-party surveyor to assess the extent of damage to Value Protect Goods, provided that the Customer notifies the Carrier’s local representative within three days of delivery of the Value Protect Cargo.

The Carrier will have the option of appointing a surveyor and the Customer will be entitled to a copy of the survey.

Where any claim exceeds the amount of the Value Protect tier purchased for the Value Protect Goods claimed for, the Customer’s eligibility for compensation above the tier will be assessed solely according to the Carrier’s Terms for Carriage. The Carrier will not be liable to compensate the Customer for any amount above the Value Protect tier if the Carrier’s liability for the entire claim under the Terms for Carriage is less than the tier purchased.

If a credit agreement exists between the Carrier and Customer, there will be no overdue debt on that agreement. There shall be no right of set off.

All prices and rates are exclusive of VAT and any other indirect taxes.

Clause 26 of the Terms for Carriage regarding Law and Jurisdiction applies to the Value Protect Terms.

https://www.maersk.com/solutions/shipping/cargo-and-financial-services/value-protect

https://terms.maersk.com/valueprotect