Important factors to be considered in Cargo Rating
The following are the factors to be considered for cargo rating.
The insurers insist that they insure persons rather than property. Rates differ with individuals. It may so happen that two separate owners of the same kind of cargo on the same place will be charged different rates. Proper packing, profitable accounts and previous history of insurance proposal may determine the rates.
2. Nature of the cargo
The difference in hazard between various kinds of goods, different forms of the same goods, different shipments, different types of packing and durability of the goods may influence the premium rates.
3. Natural Conditions and Topography
The natural conditions and topography of land is considered also in case of cargo. The effect of different seasons has an important bearing upon commodities. Some commodities are seriously affected by cold and heat. The season or climate at the port of destination may influence the risk. In certain season, the port will be busy with a particular cargo. Varying trade customs associated with different commercial routes will influence rates materially.
4. Quality and suitability of Ships
The insurer takes into consideration the fitness of the ship to carry a particular cargo. The premiums are high in the case of ships of slower speed due to longer exposure of the cargo.
In case of highly perishable goods moving in large quantities, special types of ships have been designed to carry such goods.
5. Duration of voyage and Terms of the policy
While determining the rates of premium, insurers consider the length of time. Sometimes conditions and time taken in loading of the cargoes abroad the vessels and protection of the goods while on the docks are considered for computation of premium.
6. Other Factors
The operating efficiency or proven experience of ship may effect the risk on cargo. The methods of handling and storing the cargo, the regularity of the service etc., influence the premium rate.