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Freight Insurance in Spain (and worldwide), Coverage and Liability

This topic we will explain is about how works the freight insurance in Spain and worldwide.

 

Introduction

A freight forwarder provides an important function as a company that organizes shipments of freights for their customers, helping them to transport their goods either from the producer or manufacturer to the market or any other desired distribution point.

Freight forwarders are responsible to their shipping clients with respect to the services and advice they provide to them. If a physical loss or damage to their cargo is encountered, the freight Forwarder has to defend their liability based on the terms of the agreement. This could also mean a reimbursement to the cargo owner for the experienced loss or damage to their cargo.

Freight Forwarders and other shipping agents are more vulnerable today than ever before. If errors and mistakes are involved, they could amount to costly financial settlement for the cargo owner.

 

About Freight Insurance in Spain (and worldwide) and Coverage

Freight Insurance is a policy which protects Freight forwarders offering services such as carrying, storage, or facilitating the transportation of third party cargos. If Freight Forwarders are deemed liable under the specific terms and contractual obligations they entered into with their client, they may reimburse the shipper for the loss or damage to their shipped cargo. The freight insurance pays for covered damages or loss for which the Freight forwarder is found liable for, including claims and other cost made against the Freight agent.

 

What is the Legal Liability of Freight Forwarder Insurance?

The freight forwarder has some legal liabilities for loss or damage of shipper’s cargo subject to the terms of the freight insurance policy. The shipped merchandise will be automatically covered through the legal liability limits provided under the governing Freight shipping laws.

When a freight forwarder enters into a contract with a shipper, the forwarder is liable if they fail to use diligence in handling the shipping and delivery of the customer’s goods. Under such terms, if the freight forwarder fails to exercise such required due diligence they are required to compensate the shipper for any loss, or damage of their goods subject to the limitations of the policy liability often referred to as SDR. The Freight Forwarder should also pay back the shipper for any direct financial loss resulting from the Freight Forwarder’s breach of their duties and responsibilities.

 

Non Liability Freight Insurance conditions

According to the rules of  FIATA Model, no freight insurance will be effective unless instructions are provided in writing by the customer or the Shipper. The Freight insurance policy shall be effected subject to the conditions and limitations of the insurance policy.  Unless these conditions are agreed upon in writing, the Freight Forwarder shall under no condition be bound by an obligation to effect new insurance for each assignment. They may declare this condition on an existing and open policy which is held by the freight forwarding Company. The freight forwarder has no liabilities in cases involving acts or omissions resulting from third party transactions including:

  • Carriers
  • Warehousemen
  • Stevedores
  • Port authorities

 

Nevertheless Freight Forwarders may be held liable involving the above listed cases if they fail to also use due diligence in the handling of such third Party deals. The freight forwarder has legal liability when they take the role of a Principal, when they are performing the carrier’s responsibility through the use of their own transportation means. Such situation mandates Freight Forwarder liabilities particularly when they issue their own transportation document meaning they have in effect assumed carrier’s responsibilities. In situations where the shipper has received or has been issued a transport document from other agents other than the Freight forwarder, then Freight Forwarder may not be held liable under this situation.

Freight forwarder shall be held liable when:

  • They perform principal’s services by themselves, using facilities which they own or performing work through their employees
  • When the Freight Forwarder undertakes liability as the principal

 

 

Financial Limitations of Freight Forwarders Insurance

What is SDR? Freight insurance

IMF

Under normal circumstance the freight shipper may get reimbursed for all their freight damages or loss of their cargo on transit.

Generally these items are covered through the Freight insurance policy provisions.

At times, the Carrier freight insurance may reject some settlement claims due to certain conditions not addressed or not covered as part of the policy.

The shipper will hold the shipping broker or shipping agent as some call them still responsible for the loss or damage of their goods and merchandise which may be lost or damaged during the course of the transportation process.

Realizing their exposure to risk, the freight brokers and agents may also realize their risk exposure under this scenario and the needs to guard and protect themselves against such risk and possible claims when certain situations result in the carrier refusing to settle the claim. Contingent insurance comes to play when the freight insurance carrier refuses to pay for all the loss.

 

Freight Forwarders may not be held liable for a loss or damage of goods if the total amount exceeds 2 SDR per each kilogram of the total gross weight of the lost or damaged goods, unless the greater amount is recovered from the primary shipper.

All goods not delivered within 90 days of the expected delivery date, the owner of the goods may consider the goods as lost.  There are limitations for liability for delay, which is limited to an amount not exceeding the total value of the service which necessitated such delay.

The Freight Forwarders liability for any other type of loss shall not exceed 10.000 SDR for any occurrence of such incident but if a larger amount is received from the person to whom the Freight Forwarder is primarily responsible, total payment may exceed 10.000 SDR.

 

Freight Forwarders Liability exclusions

Freight Forwarder will not be held liable for the following:

  • Undeclared Valuables
  • Undeclared Dangerous goods by the Forwarder up to the contract conclusion time
  • No compensation from loss associated from delay unless such loss is agreed in writing
  • Indirect loss from consequential circumstances

 

Conclusion

It’s important have all freight insurance information prior ship any cargo in order to decide if contract a all risk insurance for the cargo.

 

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Spain and EU guidelines on wooden packaging materials. ISPM15.

ISPM15 rule was born due, plant health is likely one of the duties of the European Fee’s Directorate- Common for helth and Client Safety, as a part of its total function to make sure the protection of foods and safety of customers within the EU.

Stopping organisms dangerous to vegetation or plant merchandise from being launched into and spreading inside the EU, and regulating imports from third nations according to worldwide plant well being requirements, are among the many precept targets of EU plant well health laws.

Why ISPM15 Mark

In step with these targets, new EU necessities for wooden packaging materials, designed to cease doubtlessly dangerous plant pests from getting into the EU in wooden packaging, entered into pressure in March 2005.

The EU necessities for wooden packaging materials and dunnage are based mostly on the 2002 FAO Worldwide Normal for Phytosanitary Measures (ISPM) n° 15. Directive 2004/102/EC, which entered into power on 1 March 2005, requires the next measures to be taken for wooden packaging materials and dunnage coming into the EU from all third countries:

  1. The wooden should be both warmth handled or fumigated with methyl bromide, in step with ISPM15 procedures;
  2. The wooden have to be formally marked with the ISPM15 stamp;
  3. From March 2006, all wooden packaging materials imported into the EU should be debarked.

 

These necessities don’t apply to:

  • Wooden of 6mm thickness or much less;
  • Wooden packaging materials made totally from processed wooden produced utilizing glue, warmth and strain, resembling plywood, oriented strand board and veneer;
  • Wooden packaging materials utilized in intra-Neighborhood commerce.

 

Dunnage should meet the identical standards as wooden packaging materials. Nevertheless, it’s exempted till the tip of 2007 whether it is made from wooden free from bark, pests and indicators of stay pests.

ISPM15 Mark – Import

Wooden packaging materials getting into the EU ought to carry the ISPM15 mark, which has the universally recognisable, non-language particular IPPC emblem and three codes (nation, producer and remedy measure utilized).

For debarked wooden, the letters “DB” must also be on the mark. The mark permits for straightforward verification that the wooden meets the mandatory necessities throughout inspection on the level of export or import. Markings must be legible, seen, everlasting and non-transferable.

The usage of the mark additionally permits the import necessities for wooden packaging materials to stay a paperless system. For packaging materials which already existed earlier than 1 March 2005, a mark consisting solely of the three codes and with out the IPPC emblem will probably be accepted till the tip of 2007.
Approval for the usage of the ISPM15 mark have to be obtained from the Nationwide Plant Safety Organisation or an organisation formally mandated by the NPPO.

ISPM15

ISPM15 Mark – Export

Other countries worldwide have the same requeriments at entry to their countries, then if you are going to export your cargo in pallets or with wood material, please consider also send the cargo with the ISPM15 Mark.

 

COUNTRIES

Here the list of the countries and date they stablished the ISPM15 rule:

  • Argentina: June 2006
  • Australia: Sept 2004; Complete Adoption: July 2010
  • Bolivia: July 2005
  • Brazil: June 2005
  • Bulgaria: Jan 2006
  • Canada: Sept 2005 (US-Canada exemption)
  • Chile: June 2005
  • China: Jan 2006
  • Colombia: Sept 2005
  • Costa Rica: Mar 2006
  • Cuba: Oct 2008
  • Dominican Republic: July 2006
  • Ecuador: Sept 2005
  • Egypt: Oct 2005
  • European Union: Mar 2005
    • Austria
    • Belgium
    • Bulgaria
    • Croatia
    • Cyprus
    • Czech Republic
    • Denmark
    • Estonia
    • Finland
    • France
    • Germany
    • Greece
    • Hungary
    • Ireland
    • Italy
    • Latvia
    • Lithuania
    • Luxembourg
    • Malta
    • Netherlands
    • Poland
    • Portugal
    • Romania
    • Slovakia
    • Slovenia
    • Spain
    • Sweden
    • United Kingdom.
  • Guatemala: Sept 2005
  • Honduras: Feb 2006
  • India: Nov 2004
  • Indonesia: Sept 2009
  • Israel: June 2009
  • Jamaica: January 2011
  • Japan: Apr 2007
  • Jordan: Nov 2005
  • Kenya: Jan 2006
  • Lebanon: Mar 2006
  • Malaysia: Jan 2010
  • Mexico: Sept 2005
  • New Zealand: April 2003
  • Nicaragua: Feb 2006
  • Nigeria: Sept 2004
  • Norway: July 2008
  • Oman: Dec 2006
  • Paraguay: June 2005
  • Peru: Mar 2005
  • Philippines: June 2005
  • Seychelles: Mar 2006
  • South Africa: Jan 2005
  • South Korea: June 2005
  • Sri Lanka: Mar 2004
  • Switzerland: Mar 2005
  • Syria: April 2006
  • Thailand: February 2010
  • Taiwan: Jan 2009
  • Ethiopia 2006
  • Trinidad & Tobago: July 2010
  • Turkey: Jan 2006
  • United States
  • Ukraine: Oct 2005
  • Venezuela: June 2005
  • Vietnam: June 2005

 

List update till date of the post.

For any additional information please don’t doubt contac us, via our SUPPORT plattform.

 

 

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Checklist for Choosing a Spain Freight Forwarder Agent

You’ve done your homework. You’ve narrowed your choices to just a few, using the 9 Tips for Choosing a Freight Forwarder and you are ready select a spain freight forwarder agent. There are a lot of things that you have to think about, many features that you need and you can’t afford to miss even one.

This checklist contains many of the features that you need to look for in your Spain freight forwarder agent.

Print this list and use it to ensure that the company you choose is the one that best suits your needs.

NFS Spain Freight Forwarder Agent Checklist

spain freight forwarder agent

 

Personal
__ Quote fits within your budget
__ Additional insurance (if shipping your personal effects, vehicle or other types of freight your insurance company may require you to purchase additional insurance for shipping)

Company Structure
__ Agent network in the country you are importing from or exporting to
__ Business partners in the country you are importing from or exporting to (these often give you access to additional services so talk to your agent)

Background & References
__ Experience handling your type of freight situation
__ Positive references (check references that had the same or similar freight situation that you do)
__ Positive reviews (check online review sites such as Yelp, Angie’s List, etc.)

Services
__ Air cargo
__ Ocean freight
__ Door to door service
__ Picking services
__ Packing services
__ DDU/DDP services
__ Express or urgent shipping services (including pick up)
__ Special cargo services
__ Oversize cargo services
__ Dangerous cargo services
__ Food cargo services
__ Cargo insurance
__ Warehousing/storage service
__ Inventory management at off shore hubs
__ Bonded warehouse
__ Customs clearance
__ Tracking capabilities for shipments
__ Access to real time statistics and information
__ Overseas warehousing (this may be a value added service from the company’s overseas business partners)
__ Overseas distribution services (typically a service that the company’s overseas business partners provides)
__ Freight planning support
__ Freight consolidation (origin, hub, destination)
__ Purchase order management
__ Vendor management

Customer Service
__ Customer service contact information is clearly visible on website (phone number, email, contact form, etc.)
__ Customer service returns calls quickly (a good timeframe is 24 hours)
__ Customer service representative is knowledgeable of the shipping process
__ Customer service representative is knowledgeable of services

When choosing a Spain freight forwarder agent there is a lot to think about when it comes to services and features. This checklist for choosing a freight forwarding agent can help keep the selection process organized and thorough

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How a Freight Forwarder Works

A freight forwarder is an agent that takes on the responsibilities of exporters, importers and other companies in handling and transportation of goods. This party has to see to it that the goods are in safe condition right from the time they take charge until when they are transported to their destination. This requires constant communication when the goods are on transit.

The freight forwarder has a mandate to look and arrange for the suitable means of transporting the freight to its destination. When doing this, the agent has to take into consideration the goods in question as well as the delivery specifications placed by the customer. The means could either be road, sea, or air transport, depending on the type of goods and the needs of the owner. There are freight forwarding companies that have their own delivery system. This makes the work much easier and simplified, therefore saving a lot of time and resources.

The freight forwarder companies are unique in their own way. There are those that deal in a given line of goods, others operate at a multinational level and others will operate within a given geographical area.

The packaging of the items is also in the hands of the forwarder. This is done according to the weight, warehousing, climate, cost and the general nature of the goods. Also, the agent will oversee the negotiation of the handling and transportation costs.

After the goods are ready, the agent has to prepare the necessary documentation that meets the custom requirements of the particular country. The representative has to coordinate with the customer so that the goods are insured before transportation. Other key functions are paying for the freight, tracking of the goods, charter arrangement for large volume of goods, and putting mechanisms to transport urgent and highly perishable goods.

The role of a freight forwarder is crucial in making sure that goods are exported and imported successfully. Their knowledge in custom matters saves the customers the trouble of having to go through the entire process by themselves.

NF Spain freight forwarder

NFS incoterms 2010

 

NF Spain is a spain freight forwarder can help you in the success of your shipments.

 

 

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INCOTERMS Determines Who Pays the Cost of Transportation

First published in 1936, INCOTERMS are used for the sale of goods in international contracts.

INCOTERMS are 3-letter trade terms providing international accepted definitions and rules of interpretation for most of the common commercial terms. INCOTERMS define the relevant obligations, costs and risks contained in the delivery of goods from seller to buyer. They are also an essensial part of freight shipping terms.

INCOTERMS usage has significantly reduced misunderstandings among traders and subsequently curtailed disputes and litigation.

INCOTERMS are not a contract; nor do they replace the laws governing a contract. Price that is to be paid, currency and credit terms are not addressed in the INCOTERMS. Title transfers are not defined.

There are 2 categories of INCOTERMS – transport mode and maritime

Incoterms 2010

Incoterms

 

The incoterms for any transport mode include the following:

EXW – EX WORKS says that the seller’s sole responsibility is making the goods available at his premises. The full cost and risk of goods movement from seller premises to destination is the borne by the buyer.

FCA – FREE CARRIER means the seller is delivering the goods that are cleared for export to the buyer’s carrier. If the carrier picks up at the seller’s premises, the seller loads the goods. The buyer then bears the costs and risks of moving goods to the destination

CPT – CARRIAGE PAID TO means that the seller pays for transporting goods to the destination. The buyer takes on the risks of damage or loss from the point the goods are transferred to the first carrier.

CIP – CARRIAGE AND INSURANCE PAID denotes that the seller pays for transporting goods to the destination and purchases the cargo insurance. After the goods are transferred to the first carrier, the buyer assumes the risk of damage or loss.

DAT – DELIVERED AT TERMINAL says that the seller delivers and unloads goods from the transport vehicle and then places the goods at the buyer’s disposal at named destination.

DAP – DELIVERED AT PLACE means that the seller delivers when the goods, ready for unloading at the designated destination, are placed at the buyer’s disposal. The seller accepts all risks in bringing the goods to the destination.

DDP – DELIVERED DUTY PAID denotes that the seller delivers the goods, ready for unloading. The seller also clears the goods for import at the destination. The seller assumes all risks and costs including custom duties and taxes.

You can check HERE one table wich is so easy to understand the incoterms.

The Maritime incoterms only terms include the following:

FAS – FREE ALONGSIDE SHIP denotes that the seller delivers the goods to the port that is the starting point. From there, the buyer assumes all costs and risks of damage or loss.

FOB – FREE ON BOARD says that the seller delivers the goods onto the ship and clears them for export. Then the buyer bears the costs and risks of damage or loss.

CFR – COST AND FREIGHT means that the seller is clearing the goods for export and paying for the transportation to the destination. The buyer assumes the risks of damage or loss from the point of origin.

CIF – COST INSURANCE AND FREIGHT says the seller is clearing the goods for export, paying for transportation to the port of destination and purchasing the cargo insurance. The buyer assumes the risk of loss or damage from the point of origin.

Contact us for door to door service for any Spain cargo freight transportation you will need.

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9 Tips For Choosing A Spain Freight Forwarder

 Whether you’re a new importer/exporter or an old hand at the global marketplace, you want to be sure that your freight is being handled properly, both materially and in documentation. Here are nine things to consider when choosing a Spain freight forwarder or an international one in your origin country:

 

spain freight forwarder

  1. Are they professional enough to handle your business? If you’re shipping freight that needs to be on the first ship or plane out that morning, be they have enough carrier contracts to meet this demand.
  2. Can they handle your particular product? Some products require certain conditions when being shipped. You might require refrigeration or a certain level of shock absorption. Find out ahead of time if the Spain freight forwarder can meet those conditions.
  3. How good is their network of agents at origin and destination ports? Once your freight gets to where it’s going, a good Spain freight forwarder will provide you with up-to-date information regarding the disposition of your shipment.
  4. Are they financially strong? A company that can’t afford to pay the carrier may result in your shipment being held until some kind of payment is made. Be sure your freight forwarder is on good financial footing.
  5. How is the communication level? When you call, does a person answer, or are you sent to a recording and then put on hold until an operator gets around to answering? When there’s a problem, are you left hanging there with no one to be found?

    NF Spain is a Spain freight forwarder offer you one support plattaform only to answer all your questions. Whether you are or not our customer, we will try to help you and we will give you an answer within 1 hour throught our ticket support.

  6. What is their document turnaround time? You need your information to be as timely as possible, and you need your documents  just as quickly.
  7. Can they give good references? A good freight forwarder will happily provide you with a list of satisfied customers who you can contact.
  8. Do they have cargo insurance? Bad things can happen even to the best of us. A good freight forwarder will be able to insure your shipment. A forwarder that can’t or won’t insure your shipment should be avoided at all costs.
  9. Did they negotiate the best pricing with their carriers? A freight forwarder who hasn’t negotiated the best price possible with their carriers doesn’t have your best interests in mind. Those costs will be passed along to you. Make sure your freight forwarder is thinking about your budget as well as their own.

 

NF Spain we match the 9 tips and we are prepared to meet all your needs as a reliable Spain freight forwarder with air and sea freight capabilities, full logistics, and customs clearance services.

Contact us to see what we can do for you!

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How To Pack a Freight Shipment

Learning how to pack a freight shipment is critical.

Ensure your items arrive in pristine condition by understanding what your freight can experience during transport.

When you pack freight shipments that are going anywhere, you need to be sure you are packing in such a way that items are not shifting within the crates.

If your freight is going by air or by sea, it is likely being placed inside of a shipping container. Depending on what you are shipping, your items may not be the only things inside the container.

Various options exist for you in terms of packing. You can use a wooden cargo box, a pallet, or other items. Regardless of what you choose, it has to be stable enough that it can withstand being pushed and pulled around. If there is a chance that someone else’s freight can pierce through your shipment, you will want to repack it.

Pallets and wooden cargo box are the most used and recommended.

How To Pack a Freight Shipment

 

PALLET

If you use a pallet, you are likely placing cardboard boxes on a wooden pallet. From there, you will use plastic wrap in order to keep all of the boxes self-contained. This is sufficient as long as there is enough plastic wrap. You may want to add a few extra layers than you would if it were going on the back of the truck just to add additional protection.

 

WOODEN BOX

If you use a wooden crate, be sure you have enough packing materials loaded inside the crate that items aren’t going to be able to move around. As soon as a crate is picked up with a forklift, everything may slide to one side. The goal of packing efficiently is to prevent shift.

A logistics manager can help you with packing freight shipments to avoid damage during transport. If something were to break on the other end, you would be responsible — unless someone else does the packing for you.

Handing the responsibility to someone else can be advantageous, especially if you are not familiar with the export process. 

NFS support team can assist you in how to pack a freight shipment. Dont doubt contact us.

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Transport Strike in Barcelona, Tarragona and Girona

We inform you after last week strike, and as consecuence of don’t close any agreement between Labour Court of Catalonia and workers Unions the strike will continue the days 23rd & 24th may.

Not only Barcelona transport will be affected this time, also GIRONA and TARRAGONA province.

For this reason, obviously our service will be affected.

Any change will be informed.

Don’t doubt contact us for any additional information you will need.

 

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What is SDR?

The SDR or Special Drawing Right, is a currency used by the International Monetary Fund (IMF)  for internal accounting purposes.

The SDR is also used by some countries as a peg for their own currency, and is used as an international reserve asset.

In forwarding business is used to calculate, when one cargo is missed or damage, as amount to pay as result of their legal responsability.

What is SDR?

IMF

 

 

How Calculate?

Calculate it is not a easy job.

To calculate the value of the SDR in national currency (say, ABC),multiply the four exchange rates of the home country vis-à-vis the basket-currency countries (i.e., ABC/USD, ABC/EUR, ABC/JPY, and ABC/GBP) with the basket values indicated in the above table. Add these four numbers together to obtain the ABC/SDR exchange rate.

The easy way to know the current value of the SDR is clicking HERE.

 

Need more help?

You can contact us throught our FORMULAR or throught our SUPPORT plataform.

NF Spain is a freight forwarder with head office in Barcelona.  We offer air and sea freight, and customs clearance services.

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Strike of transport in Barcelona

 

We inform you from 10th May evening in forward will start a transport strike in the port of Barcelona.

More than 25000 workers of more than 1500 companies are called to follow.

Even one plan of contingency to guarantee the access to the port is allready done, is obvious will affect to the normal procedure: Deliveries, or Pick ups of containers will not be produced during these days as well as huge delays once will be finished.

For more information please CONTACT US.

 

Owner of the photo: ACN / LLuis Vilaro.

Font: lavanguardia.com

 

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