Additional Costs Due to Delay — Distinguishing Marine Cargo Insurance Coverage
Interlink編集部Delay and Marine Cargo Insurance
Delay and marine cargo insurance concerns the practical review required when vessel delay, port congestion, severe weather, transshipment delay, blank sailing, port omission or another event delays the arrival of cargo.
Marine cargo insurance principally responds to insured physical loss of or damage to cargo during transit, subject to the applicable policy terms, exclusions and endorsements.
A delay in arrival, delivery or commercial use does not by itself establish a recoverable marine cargo insurance loss. A loss of sales opportunity, contractual penalty, production stoppage or reduction in market value caused solely by delay must be distinguished from physical cargo damage.
Conversely, the involvement of delay does not automatically exclude every loss occurring during the delayed transit. Cargo may suffer a separate accidental event, such as impact damage, seawater ingress, handling damage, reefer power interruption or theft, while it is delayed.
The central task is therefore to identify whether the claimed loss was caused by delay itself or by a separate insured event occurring during the period of delay.
Scope of This Article
| Item | Covered in This Article | Covered in Other Articles |
|---|---|---|
| Delay exclusion | Basic distinction between delay-caused loss and separate physical cargo damage | Detailed clause-by-clause ICC analysis is covered in the relevant ICC articles |
| Physical cargo damage | Whether actual breakage, wet damage, contamination, deterioration or shortage exists | Individual damage types are covered in the relevant cargo-damage articles |
| Cause of loss | Delay, accidental event, inherent vice, packing defect and temperature incident | Detailed carrier liability is covered in the transport-liability articles |
| Weather-related delay | Distinction between delay caused by weather and direct weather damage to cargo | Weather monitoring is covered in “Weather Information and Maritime Transport Risk” |
| Transshipment delay | Insurance review for cargo remaining at a transshipment port | Connection status and final ETA are covered in “Transshipment Delay” |
| Temperature-controlled cargo | Delay, temperature deviation, equipment failure and quality deterioration | Cargo-specific temperature conditions are covered in the relevant reefer articles |
| Insurance duration | Ordinary transit, termination, storage and the 60-day provision | Detailed duration analysis is covered in the ICC duration article |
| Additional expenses | Difference between loss-mitigation expense and ordinary delay expense | General cost allocation is covered in “Additional Costs Due to Delay” |
| Evidence | Initial documents required to establish damage, timing and cause | Final claim requirements depend on the insurer and policy |
| Insurance decision | Practical preparation before referral to the insurer | The insurer makes the final coverage and payment decision |
This article does not determine coverage merely from the existence of a delay. Delay, physical damage, cause, insurance duration, exclusions and evidence must be reviewed in sequence.
Delay Loss and Physical Cargo Damage
| Item | Delay Loss | Physical Cargo Damage During Delay | Practical Review |
|---|---|---|---|
| Typical situation | The cargo arrives late but remains physically sound | The cargo is broken, wet, contaminated, deteriorated or short | Confirm the actual cargo condition first |
| Main loss | Lost sales, penalty, production interruption or market-value reduction | Loss of, or physical damage to, the insured cargo | Separate commercial loss from cargo damage |
| Main cause | Passage of time or late arrival | Impact, water ingress, equipment failure, handling or another event | Identify the proximate cause |
| Insurance issue | Delay exclusion and indirect loss | Whether the event is insured and whether an exclusion applies | Review policy terms and endorsements |
| Evidence | Schedule, sales contract and delivery deadline | Photographs, survey, temperature record and incident report | Do not rely solely on the revised ETA |
Delay Exclusion under the Institute Cargo Clauses
The Institute Cargo Clauses generally exclude loss, damage or expense proximately caused by delay, even where the delay is caused by an insured risk.
ICC(B) provides, under Clause 4.5 of the Institute Cargo Clauses (B), that loss, damage or expense proximately caused by delay is generally excluded, even though the delay may have been caused by a risk insured against.
The same delay-exclusion structure must also be checked under the applicable versions of ICC(A) and ICC(C). The policy wording, edition, endorsements and any specially agreed cover must be reviewed rather than assuming that every policy uses identical terms.
| Claimed Loss | Why the Delay Exclusion May Apply | Separate Matter to Review | Practical Treatment |
|---|---|---|---|
| Loss of sales opportunity | The loss arises from late market arrival rather than physical damage | Special profit or business-interruption insurance | Separate from the marine cargo claim |
| Production-line stoppage | The cargo arrived late and interrupted production | Sale contract, supply agreement and other insurance | Do not treat it as ordinary cargo damage |
| Late-delivery penalty | The loss arises from a contractual deadline | Sale contract and transport liability | Review separately from physical loss |
| Seasonal reduction in value | The selling season passed during the delay | Whether physical deterioration also occurred | Separate market loss from cargo damage |
| Shortened shelf life | The usable commercial period was reduced by time | Temperature deviation, deterioration and inspection results | Confirm whether the cargo itself was damaged |
| Delivery rescheduling cost | The expense arose from changing the logistics plan | Whether it was a reasonable loss-mitigation expense | Review its purpose and necessity |
Comparison of ICC(A), ICC(B) and ICC(C)
| Condition | General Cover Structure | Delay-Related Caution | Practical Review |
|---|---|---|---|
| ICC(A) | Broad all-risks structure, subject to exclusions | Broad cover does not remove the delay exclusion | Identify the accidental cause and applicable exclusion |
| ICC(B) | Named-risks cover broader than ICC(C) | The physical loss must relate to an insured risk, and Clause 4.5 must be considered | Match the damage with a listed insured risk |
| ICC(C) | More limited named-risks cover | Physical damage during delay is not enough unless caused by a listed risk | Confirm that the immediate cause falls within the covered risks |
| Special endorsement | Additional terms may modify ordinary cover | Do not assume the standard wording is the complete policy | Review all endorsements and warranties |
ICC(A), ICC(B) and ICC(C) do not provide identical protection. Nevertheless, the mere fact that the policy uses ICC(A) does not mean that every loss associated with a delay is insured.
Basic Decision Flow
| Step | Question | Decision Point | Required Action |
|---|---|---|---|
| 1 | Is there only a delay, or is there cargo damage? | If no physical abnormality exists, delay loss is the principal issue | Separate commercial loss from cargo damage |
| 2 | What damage is alleged? | Breakage, wet damage, contamination, deterioration or shortage | Record the condition immediately |
| 3 | When was the damage discovered? | At the terminal, before delivery, at delivery or after unpacking | Preserve the first-discovery evidence |
| 4 | Where could the damage have occurred? | Loading port, voyage, transshipment port, discharge port or inland delivery | Identify the responsible operational stage |
| 5 | What was the immediate event? | Delay, impact, water ingress, power loss, theft or handling accident | Identify the proximate cause |
| 6 | Could inherent vice or insufficient packing be involved? | The cargo may have deteriorated without an external accident | Review cargo characteristics and packing |
| 7 | Was the cargo within the insurance period? | Ordinary transit, storage or policy termination | Review the policy and Transit Clause |
| 8 | Which ICC condition and endorsements apply? | ICC(A), ICC(B), ICC(C) or special conditions | Review the exact policy wording |
| 9 | Does an exclusion apply? | Delay, inherent vice, insufficient packing or another exclusion | Refer the facts to the insurer |
| 10 | Is a survey or urgent mitigation required? | High value, unknown cause, temperature cargo or possible total loss | Notify the insurer without waiting for final causation |
| 11 | Have rights against carriers and handlers been preserved? | Notice and time-limit requirements may apply | Issue written notices and preserve recourse rights |
Common Damage Patterns during Delay
| Damage Pattern | Typical Situation | Main Insurance Issue | Evidence |
|---|---|---|---|
| No physical damage | The cargo arrives late but sound | Delay and indirect loss | Inspection and receiving records |
| Impact damage | The cargo is damaged during handling at a transshipment port | Accidental handling event and insured risk | Photographs, survey and handling report |
| Seawater wetting | Water enters a damaged container during severe weather | Direct water damage rather than delay | Salt test, container condition and weather data |
| Condensation | Long transit is followed by internal moisture damage | Delay, inherent moisture, packing and ventilation | Packing specification and moisture evidence |
| Temperature deviation | Reefer temperature rises during prolonged transshipment | Power loss, machinery breakdown or delay | Temperature log, alarm and plug-in record |
| Natural deterioration | Perishable cargo deteriorates during an extended transit | Delay and inherent vice | Cargo life, inspection and transport conditions |
| Shortage | Packages are missing when the delayed cargo is unpacked | Theft, misdelivery, tally error or packing discrepancy | Seal, tally and receiving records |
| Corrosion | Machinery is found rusted after long storage | Water ingress, humidity, packing or post-transit storage | Survey, warehouse records and packaging condition |
Cause-Identification Checklist
| Possible Cause | Typical Indication | Evidence Required | Insurance Relevance |
|---|---|---|---|
| Delay itself | Loss arises solely because the cargo arrived late | Schedule, deadline and commercial documents | Delay exclusion is likely to be central |
| Separate accidental event | Impact, drop, collision or external damage occurred | Incident report, photographs and survey | Review whether the event is insured |
| Severe-weather damage | Direct wetting or container damage occurred | Weather data, container inspection and salt test | Separate direct damage from weather-related delay |
| Reefer equipment failure | Alarm or machinery malfunction appears in the record | PTI, alarm and repair records | Review the insured peril and endorsements |
| Power interruption | The reefer was unplugged or power was unavailable | Plug-in history and terminal report | Review causation and custody |
| Inherent vice | The cargo naturally deteriorated over time | Product characteristics and expert evidence | An inherent-vice exclusion may apply |
| Insufficient packing | Damage developed because the packing was unsuitable | Packing design and pre-shipment photographs | Review the packing exclusion and packing party |
| Post-transit storage | Damage may have occurred after ordinary transit ended | Warehouse records and insurance termination date | Review whether the insurance had already terminated |
Evidence and Burden of Proof
The insured normally needs to establish that insured cargo suffered loss or damage during the insured transit. The available evidence must also support a connection between the damage and an insured event.
| Fact to Establish | Typical Evidence | Why It Matters | Caution |
|---|---|---|---|
| Sound condition before transit | Pre-shipment inspection, packing photographs and clean receipt | Supports that the damage occurred later | A clean transport document may not prove internal condition |
| Damage at destination | Receiving remarks, photographs and unpacking report | Establishes the physical loss | Record the condition before repair or disposal |
| Damage during transit | Survey report, Bad Order Report, EIR and incident report | Connects the damage with the insured period | Late discovery makes causation harder |
| Accidental cause | Handling report, container damage and weather evidence | Distinguishes an accident from delay or inherent vice | Do not assume causation from timing alone |
| Temperature incident | Temperature log, PTI, alarm and power record | Identifies deviation and possible cause | Confirm the time zone and data continuity |
| Extent of loss | Inspection, repair estimate, salvage and disposal documents | Supports the claimed amount | Separate damaged and sound cargo |
| Mitigation | Emergency storage, sorting and salvage records | Shows reasonable steps to reduce loss | Obtain insurer instructions where practicable |
Temperature-Controlled Cargo
| Situation | Main Issue | Evidence | Practical Caution |
|---|---|---|---|
| Transit time is extended without temperature deviation | Delay, shelf life and inherent deterioration | Temperature log and product life | Do not assume physical damage solely from late arrival |
| Temperature exceeds the setting | Deviation and resulting quality damage | Continuous log and quality inspection | Review duration, range and cargo tolerance |
| Reefer machinery fails | Equipment failure and policy terms | Alarm, repair and PTI records | Match the failure time with quality change |
| Power is interrupted at a transshipment port | Terminal custody and power-management failure | Plug-in and terminal records | Separate it from the connection delay itself |
| Cargo is rejected after inspection | Whether actual physical deterioration exists | Laboratory and expert reports | Preserve samples before disposal |
Insurance Duration and the 60-Day Provision
Under commonly used ICC(A) 2009 terms, insurance continues during the ordinary course of transit and terminates upon the earliest applicable termination event.
| Termination Event | Meaning | Delay-Related Caution | Evidence |
|---|---|---|---|
| Completion of unloading at the final warehouse | The cargo is unloaded at the final warehouse or storage place at destination | Later discovery does not by itself extend insurance | Delivery and unloading records |
| Completion of unloading at another warehouse | The warehouse is used for storage outside ordinary transit or for allocation or distribution | Insurance may terminate before final customer delivery | Warehouse purpose and instructions |
| Use of a container for storage outside ordinary transit | The insured elects to use the container for storage | Free Time does not automatically preserve insurance | Cargo-owner instructions and storage purpose |
| Sixty days after completion of discharge | Sixty days have passed after completion of unloading from the oversea vessel at the final port of discharge | The date is not automatically the ETA or vessel-arrival date | Discharge Event |
The 60-day period under ICC(A) 2009 Clause 8.1.4 is generally linked to completion of discharge from the oversea vessel at the final port of discharge. It should not be calculated automatically from the ETA or vessel-arrival date.
The 60-day provision is not a guaranteed minimum insurance period. Insurance may terminate earlier if the cargo is unloaded at the final warehouse or placed into storage outside the ordinary course of transit.
Free Time and Insurance Duration Are Different
| Item | Free Time | Marine Cargo Insurance Duration | Evidence |
|---|---|---|---|
| Purpose | Free use of a container or facility before charges begin | Period during which insured events may be covered | Tariff and policy |
| Determined by | Shipping line, NVOCC or terminal | Insurance contract and applicable clauses | Individual terms |
| Commencement and termination | Discharge, availability, gate-out or another operational event | Transit Clause and policy terms | Operational and insurance records |
| Extension | Commercial negotiation with the charging party | Insurer approval and possible additional premium | Written confirmation |
Relationship with Other Delay Articles
| Related Article | Main Subject of That Article | Subject of This Article |
|---|---|---|
| Weather Information and Maritime Transport Risk | Weather information, vessel operation, port work and cargo risk | Insurance analysis after delay or cargo damage occurs |
| Transshipment Delay | Connection failure, next vessel and revised ETA | Whether damage during transshipment is insured |
| Vessel Arrival Delay | ETA delay and post-arrival processing delay | Insurance effect of delay and discovered damage |
| Additional Costs Due to Delay | Operational costs and allocation | Whether any cost may qualify under marine cargo insurance |
| Delay, Demurrage and Detention | Free Time and container-related charges | Distinction between those charges and insured cargo loss |
Information to Share with Each Party
| Party | Information to Share | Purpose | Caution |
|---|---|---|---|
| Cargo owner or shipper | Delay, cargo condition, evidence required and next action | Preserve the cargo and prepare the claim | Do not promise insurance recovery |
| Insurer or insurance agent | Policy, delay, damage, discovery and current cargo location | Obtain claim and survey instructions | Notify before disposal or major repair |
| Shipping line or NVOCC | Damage notice, reservation of rights and request for records | Preserve recourse rights | Observe notice and time limits |
| Warehouse or terminal | Damage condition, custody period and request for incident records | Identify the accident stage | Obtain objective records promptly |
| Surveyor | Cargo, packaging, timeline and suspected cause | Conduct an independent damage assessment | Preserve representative samples |
| Customs broker or delivery provider | Condition at pickup, delivery and first discovery | Establish the transfer of custody | Record exceptions on delivery documents |
Operational Cases
| Case | Main Issue | Evidence | Decision Point | Initial Response |
|---|---|---|---|---|
| Vessel delay without cargo damage | Delay and commercial loss | Schedule and cargo inspection | Whether physical loss exists | Separate the commercial claim |
| Seasonal goods miss the selling period | Loss of market opportunity | Sales plan and contract | Whether the cargo itself deteriorated | Review other contractual remedies |
| Cargo is damaged while waiting at a transshipment port | Delay or separate handling accident | Incident report and survey | Immediate physical cause | Notify the insurer and carrier |
| Reefer cargo shows a temperature deviation | Power interruption, machinery failure or delay | Temperature, alarm and plug-in records | Cause and quality impact | Arrange urgent inspection |
| Food has a shortened shelf life but passes inspection | Delay loss without physical damage | Inspection and shelf-life documents | Whether deterioration exists | Do not assume cargo damage |
| Wet damage is found during Free Time | Accident timing and insurance duration | Discharge, storage and photographs | Ordinary transit and cause | Preserve the cargo and notify |
| Corrosion is found after long warehouse storage | Insurance termination and cause | Warehouse purpose and survey | Whether damage occurred before termination | Prepare a detailed chronology |
| The cargo owner disposes of all cargo before survey | Loss and cause cannot be verified | Disposal and inspection records | Whether disposal was reasonable | Contact the insurer before disposal |
| No notice is issued to the carrier | Recourse rights may be prejudiced | Delivery record and correspondence | Applicable notice period | Issue notice immediately |
| Emergency cold storage cost is incurred | Mitigation expense or ordinary delay cost | Instruction, rate and necessity | Whether the expense reasonably reduced insured loss | Obtain insurer instructions |
Freight Forwarder Involvement
The five classifications used in this article are not established by law or industry-wide consensus. They serve as an analytical framework within this series to clarify the scope of freight forwarder involvement.
| Classification | Main Involvement | Typical Responsibility Review | Key Evidence | Caution |
|---|---|---|---|---|
| Simple Intermediary | Communicates delay, damage and insurance-contact information | Whether received information was accurately and promptly transmitted | Delay notice, damage notice and transmission record | It does not determine insurance coverage |
| Cargo Transportation Service Provider | Arranges individual pickup, storage, customs or delivery operations | Cargo care and incident reporting within the entrusted work | Work instruction, receipt and photographs | Separate the original delay from an accident during its work |
| NVOCC / House B/L Issuer | Manages transport, incident notice and claim documents as the House carrier | Transport, notice and evidence preservation as the Contracting Carrier | House B/L, Master B/L, terms and tracking | Separate Actual Carrier events from House B/L responsibility |
| Door-to-Door Single Contractor | Integrates pickup, ocean transport, storage, customs and delivery | Overall abnormality detection, first response and coordination | Integrated contract, timeline and incident documents | Contractual responsibility may remain despite subcontracting |
| Agent / Coordinator for Specific Operations | Performs specified insurance placement, notification, survey or document collection | Proper performance within the entrusted task | Instruction, insurance application and notification | Limited involvement does not determine claim payment |
Contractual status, the actual scope of entrusted work, physical operations, business attributes, names appearing on transport documents, insurance status, applicable terms and mandatory law must be examined separately from the Standard Five Classifications. These matters do not constitute a sixth classification or any additional classification.
It is necessary to identify the Contracting Carrier and Actual Carrier, who arranged the marine cargo insurance, who first knew of the delay and cargo damage, and who notified the insurer, cargo owner, carrier, warehouse or delivery provider.
Responsibility cannot be determined solely from a party's description as a shipping line, NVOCC, prime freight forwarder, overseas agent or customs broker. The contract, transport documents, applicable terms, scope of entrustment, timing of notice and response after the issue became known must be reviewed.
Common Misunderstandings
| Misunderstanding | Actual Approach | Practical Caution |
|---|---|---|
| Marine cargo insurance pays whenever the vessel is late | Loss caused by delay may be excluded | Confirm whether physical cargo damage exists |
| Every loss involving delay is excluded | A separate accidental event during delay must be reviewed individually | Identify the cause |
| Damaged cargo is always insured | Delay, inherent vice, packing and temperature causes must be separated | Evidence of cause is required |
| Every loss during the insurance period is covered | An exclusion may still apply during the insured period | Review duration and cause separately |
| Insurance automatically continues indefinitely during delay | Specific termination events apply, and extension may require notice and approval | Review before termination |
| The 60 days start from vessel arrival | The commonly used ICC wording refers to completion of discharge | Confirm the Discharge Event |
| The cargo is always insured for the full 60 days | Final-warehouse delivery or non-transit storage may terminate insurance earlier | Review the storage purpose |
| Free Time guarantees continued insurance | Free Time and marine cargo insurance duration are separate | Review the policy |
| Penalties and lost profits are ordinary cargo losses | Commercial and indirect losses must be separated | Review other contracts and insurance |
| The freight forwarder can confirm that the claim will be paid | The insurer makes the final coverage and payment decision | Do not guarantee recovery |
Example 1: Seasonal Goods Arrive Too Late
Christmas goods are imported from China with an original ETA of November 20. Because of a blank sailing and transshipment delay, the cargo arrives on December 18.
The cargo has no breakage, wet damage, contamination or shortage. However, the cargo owner claims approximately JPY 8 million for the lost selling opportunity.
The principal loss arises from late arrival rather than physical damage to the cargo.
The delay exclusion and indirect-loss issues therefore require review. The fact that an operational shipping event caused the delay does not by itself make the commercial loss recoverable under marine cargo insurance.
The sale contract, carrier terms, timing of notices, possible alternative transport and mitigation efforts should be reviewed separately.
Example 2: Reefer Power Interruption at a Transshipment Port
Frozen food is transported from the Netherlands to Japan. A connecting sailing is cancelled in Singapore, and the reefer container remains at the transshipment port for ten days.
The temperature record shows that the temperature rose from the setting of minus 20 degrees Celsius to minus 5 degrees Celsius for approximately 14 hours.
Quality testing determines that part of the cargo is outside specification, and the cargo owner claims approximately JPY 12 million.
The shipping line argues that the loss resulted from the extended transit and is excluded as delay. The cargo owner argues that a specific power interruption at the transshipment port caused the deterioration.
The temperature log, plug-in history, reefer alarms, PTI, terminal power records, quality inspection and cargo-temperature tolerance must be reviewed.
The central issue is whether the proximate cause was the delay itself or a separate power or machinery incident.
Example 3: Corrosion Found after Long Storage
Machinery parts imported from the United States are discharged at Yokohama. Because construction work at the receiving factory is delayed, the cargo owner instructs that the cargo be placed in a bonded warehouse for approximately 45 days as inventory storage.
Corrosion damage of approximately JPY 5 million is found when the cargo is later unpacked.
The cargo owner argues that the claim falls within the insurance period because the damage was discovered within 60 days of discharge.
The insurer points out that insurance may have terminated when the cargo was unloaded into the bonded warehouse if that warehouse was used for storage outside the ordinary course of transit.
The warehouse instruction, purpose of storage, original delivery schedule, condition at warehouse receipt and cause of corrosion must be reviewed.
Evidence is also required to determine whether the damage occurred before or after the applicable insurance termination.
When to Consult a Maritime Lawyer
- The proximate cause is disputed between delay and a separate accidental event
- A substantial temperature-controlled cargo claim involves delay, machinery failure and inherent vice
- The termination of insurance or ordinary course of transit is disputed
- The 60-day provision, termination of carriage or change of destination is disputed
- The insurer rejects all or part of the claim
- Recovery against a shipping line, NVOCC, prime freight forwarder, warehouse or delivery provider is contemplated
- Substantial penalties, lost profits or production losses are claimed
- The cargo may be disposed of, repaired, sold or repurposed before rights are clarified
- A carrier-notice deadline or time bar is approaching
- An admission, release, settlement or waiver is requested
Decision Checklist
| Review Stage | Party or Source | Information to Confirm | Action if a Problem Exists |
|---|---|---|---|
| Delay identified | Shipping line or NVOCC | Cause, location and revised ETA | Review cargo characteristics and insurance duration |
| Policy review | Policy and insurance agent | ICC version, endorsements, exclusions and duration | Confirm the applicable conditions in writing |
| Long delay expected | Insurer and cargo owner | Storage location, termination and extension | Request continuation before termination |
| Cargo abnormality found | Cargo owner, warehouse and delivery provider | Damage, discovery time and place | Preserve the condition and photographs |
| Temperature abnormality | Shipping line, terminal and insurer | Temperature, power, alarm and PTI | Preserve data and arrange a survey |
| At delivery | Receiver and driver | Packaging, quantity, seal and temperature | Record exceptions on the receipt |
| At unpacking | Cargo owner and inspection company | Internal condition, damage extent and lot | Preserve video, photographs and inspection records |
| Insurance notice | Insurer or insurance agent | Initial facts and need for survey | Notify before the cause is finally determined |
| Carrier notice | Shipping line, NVOCC, warehouse or other custodian | Damage, reservation of rights and notice deadline | Issue written notice promptly |
| Mitigation | Insurer and cargo owner | Sorting, repacking, storage and sale | Preserve costs and approvals |
| Disposal | Insurer and inspection body | Reason, residual value and evidence | Confirm before disposal |
| Claim submission | Insurer | Cause, duration, amount and required documents | Complete missing evidence |
| Coverage dispute | Insurer and maritime lawyer | Proximate cause, contract, clauses and notices | Preserve records and avoid premature admissions |
Summary
The first question in a delay and marine cargo insurance case is whether there is only a delay or whether the cargo has suffered actual physical loss or damage.
Under commonly used Institute Cargo Clauses, loss, damage or expense proximately caused by delay may be excluded even where the delay was caused by an insured risk.
However, a separate handling accident, water-ingress event, impact, power interruption or machinery failure occurring during the delayed transit must be reviewed as a separate possible cause of cargo damage.
Continuation of insurance during delay and insurance of loss caused by delay are different issues.
Even where physical damage exists, the proximate cause may be delay, inherent vice, insufficient packing, temperature incident or another accidental event.
For temperature-controlled cargo, the setting, continuous temperature record, power history, equipment alarm, duration of deviation and quality inspection are essential.
Under ICC(A) 2009 Clause 8.1.4, sixty days after completion of discharge from the oversea vessel at the final port of discharge is one possible termination event. Insurance may nevertheless terminate earlier upon final-warehouse delivery or storage outside the ordinary course of transit.
Free Time provided by a shipping line or terminal is separate from the duration of marine cargo insurance.
Where carriage terminates at an intermediate port, the destination changes or long-term storage becomes necessary, the insurer should be notified promptly to confirm continued cover, conditions and any additional premium.
When cargo damage is discovered, notice should be given without waiting for final causation. Photographs, receiving remarks, temperature data, container condition, survey evidence and notices to carriers should be preserved.
A freight forwarder should not guarantee insurance payment. Its role is to organise the facts, damage, cause, insurance duration and evidence so that the cargo owner or shipper can accurately refer the matter to the insurer.
Delay and marine cargo insurance is not a simple choice between “covered because the cargo was delayed” and “excluded because delay was involved.” It requires a structured review of delay, physical damage, proximate cause, insurance duration, exclusions and evidence.
