If you work as an importer or exporter in Paraguay, you will know that when you hire the mobilization of your merchandise by land, air or sea you are leaving valuable resources in the hands of third parties.
The transport of goods in Paraguay and the rest of the world is an activity that mobilizes millions of dollars in goods and therefore it is important that the importer or exporter be covered against possible loss, delay or damage.
Among the forms of freight transport, the land is the most active, both in Paraguay and in almost every country in the world.
This transport technique has several characteristics that differentiate air and sea transport.
These include greater availability of means to mobilize cargo, such as trucks and vans of different capacity and in large numbers.
It also has a lower cost and offers the possibility of delivering the information directly to the importer’s door, rather than in an intermediate storage, as in the case of air and sea.
In addition, less requirements are required for the national or international transport of certain goods, such as extra heavy loads or dangerous products.
However, the advantage that most attracts carriers and contractors of land transport is its lower operating cost.
This is very important when your company has a narrow profit margin.
Why should I insure the cargo I move by land?
Ground transportation has its risks for the carrier and for the responsibility. The most frequent is the possibility of a traffic accident.
These accidents can occur due to a human error, the fatigue of the drivers or the imprudence of these.
The poor state of the roads, poor signaling or mechanical failures of cargo vehicles can also cause accidents and loss of life and losses.
Secondly, the action of organized crime that is dedicated to the theft of cargo trucks stands out.
This is a problem that affects land transport companies in many countries, both in Latin America and in the United States and Asia.
Losses from all these causes add up to hundreds of miles of dollars in losses per year in Paraguay and millions worldwide.
Given this, it is best to hire land transport insurance that covers any loss of damage due to damage or theft, whether you operate in Paraguay or outside the country.
When insuring a load, the insurance company agrees to pay compensation for damages or losses to it, provided that certain conditions of safety and handling of the merchandise have been met.
In return, you can pay a premium for this insurance, which may vary depending on the value of the insured cargo or the type and variety of possible damages covered by the contract.
What type of insurance can I hire for my land cargo in Paraguay?
There are three basic types of policy available in the insurance market of Paraguay.
The first, cheaper and faster is a short-term policy that covers the cargo against losses, damage or theft only during the time it takes to go from its origin to the final destination.
Second, the annual or 12-month security policy is available.
In this case, not every sending of notifications is assured individually, but the premiums are paid on the volume of cargo that the contractor estimates is mobilized for a whole year.
The third type of insurance available in Paraguay is the so-called floating policy.
This resembles the previous rate in terms of what a 12-month coverage is paid, starting with an anticipated premium on the estimated annual movement of goods.
Subsequently they are carried out periodically, weekly or monthly of the cargo movement.
Based on these movements, a subsequent adjustment of the amount of the premium is made, which the insured must pay at the end of the term of the insurance.
What does land transport insurance cover?
Depending on the type of policy contracted, coverage may include the following losses or damages:
- Material damage from pollution other than those caused by natural decomposition (in case of food or fruit), corrosion or manufacturing defects.
- Partial or total theft of the amount.
- Damages caused by bad mandrels of loading and unloading in port, in the transfer from warehouse to warehouse.
- Damage caused by fire or explosion not related to product defects or incorrect by the shipment by the person responsible for its shipment.
- Damage caused by inadequate protection against rain, snow and natural elements during transport, loading or unloading at dock or storage.
It should be taken into account that many insurers tend to reject coverage of spill losses or loss of volume or weight of liquid products or losses during land transport.
What to do if an accident occurs with the insured cargo?
When an incident occurs that affects the load, the contractor must inform the insurance company within the period established in the policy.
You must indicate how, when and where the event occurred, as well as any information that allows the insurer to assess whether the conditions for payment of compensation are met.
It is important that the insured take immediate action to avoid further damage to the merchandise or reduce its degree.
In addition, you must maintain possession or surveillance of the product concerned, that is, you cannot leave damaged goods or alter their condition.
This is important so that the insurance company can conduct its own investigation of the event before proceeding to make the contracted policy effective.
Seek the best advice before acquiring your land transport insurance
In conclusion, if you are an importer or exporter and you want to protect your assets when moving cargo through land transport, do not hesitate to take out insurance.
This insurance is an element that balances the risks and protects the consignee from the load and who assumes the work of porter.
If you need guidance on this topic, at Alfa Trading S.A. We have more than 28 years of experience related to national and international logistics services in Paraguay.
In Alfa Trading S.A. We can help you with everything related to the issue of insurance for your cargo, both land and air or sea.
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