Question
For those of you with cargo insurance, are you being asked by the shippers and brokers to provide higher cargo limits? For example, $250,000.
Answer
Connie,
We sure are seeing a lot of that around our office. Lots of 'Named Shipper Endorsements' are being requested too. I think a lot of it is due to these clearing houses that are tracking insurance information for third parties. They took the job away from the brokers and shippers, promising to save them money and hassels, but I think they are a waste of money! And I also think they are a hassle. Brokers and shippers should make them go away.
Have you had requests for certificates in these Clearing House names? If you give it to them they will just share it with every Tom in the book! No control I tell you, no control!
Plus, I don't know what they think they are doing that is so special, we send all our certs out with '0' day cancellation notice dates anyway. Ha!
What are you doing with these, if you have seen them?
Mel
Answer
Mel,
Have had some dealings with the clearing houses. Not really too eventful.
I'm seeing more contractual requirements for increased limits in cargo. This bothers me. I know that all too often shippers will deceive the motor carrier with regards to the value to get the freight rates down. But, then why the increased cargo limit? Simple, because the product is worth more than their telling.
I have a couple of clients hauling high dollar commodities that actually need the higher limits. But the majority seem to fall within the $100,000.
As for the certificates, we issue all 15 day WILL ENDEAVOR. We fax only and do not mail originals unless specifically requested. Shippers would rather ask me to fax it again, than to look for it in a file anyway, so why should I incur the cost of postage.
In fact, after one shipper made 5 requests in 3 weeks, we advised the client that we would not send any further certificates. If this shipper was not smart enough to properly file the certificate, we had serious concerns that the shipper would probably not be able to issue a check to pay the client.