Key Changes in the ICC2009 Rules
Interlink編集部Main Changes in the ICC2009 Clauses
The main changes in the ICC2009 Clauses address parts of the ICC1982 provisions that were often interpreted differently in practice. These include clearer wording regarding the start and end of the insurance period, the Insufficient Packing Exclusion, the Shipping Line Insolvency Exclusion, the Unseaworthiness and Unsuitability Exclusions, and the treatment of a change of destination.
The ICC2009 Clauses do not completely restructure the basic coverage framework of ICC(A), ICC(B), and ICC(C). The key revisions clarify criteria in areas prone to disputes in modern transport practice—such as international multimodal transport, containerized transport, third-party packing, shipping line insolvency, and changes of destination during transit—while maintaining the traditional coverage structure.
Understanding the revisions requires more than simply determining whether the insured gained or lost an advantage. ICC2009 places greater emphasis on explicit factors such as who performed an operation, when it was performed, what the insured knew, when the insurance attached and terminated, and when notice was given to the insurer.
This article serves as a quick reference and index for the ICC2009 Clauses series, cross-referencing the main changes from ICC1982 to ICC2009. For the detailed scope of coverage, requirements for exclusions, claims procedures, and effects under the governing law, refer to the corresponding detailed articles.
Scope Covered in This Article
| Item | Contents Covered in This Article | Contents Covered in More Detail in Other Articles |
|---|---|---|
| Basic Relationship Between ICC1982 and ICC2009 | The revision clarified criteria while maintaining the basic structure | The individual scope of coverage under ICC(A), ICC(B), and ICC(C) is covered in “Basic Structure of ICC2009 Coverage Clauses” |
| Clarification of the Insurance Period | Initial movement, immediate loading, completion of unloading, and termination when transport equipment is used for storage | The ordinary course of transit, the 60-day period, and termination of the contract of carriage are covered in “Basic Structure of the ICC2009 Insurance Period Clause” |
| Insufficient Packing Exclusion | Who performed the packing or preparation, when it was performed, container stowage, and the distinction between employees and independent contractors | Causation and the distinction from inherent vice are covered in “Basic Structure of ICC2009 Exclusion Clauses” |
| Shipping Line Insolvency Exclusion | The insured’s knowledge, matters that should have been known in the ordinary course of business, effects on the normal prosecution of the voyage, and the bona fide assignee exception | Forwarding charges, termination of the contract of carriage, and claims procedures are covered in “Basic Structure of ICC2009 Claims Clauses” |
| Unseaworthiness Exclusion | Unseaworthiness or unfitness of a vessel or craft and the insured’s knowledge at the time of loading | Seaworthiness, carrier liability, and B/L exclusions are covered in the related carrier-liability articles |
| Unsuitability of Containers and Conveyances | The time and person of loading, attachment of the insurance, and the insured’s knowledge of unfitness | Reefer settings and selection of conveyances for dangerous goods, heavy cargo, and temperature-controlled cargo are covered in individual operational articles |
| Change of Destination | A change made by the insured, agreement on rates and terms, loss before agreement, and sailing to another destination without the insured’s knowledge | Notification obligations and English law and practice are covered in “ICC2009 Delay Avoidance, Governing Law, and Notification Obligations” |
| Held Covered Structure | The ICC1982 wording and the ICC2009 provisions on rates, terms, and market availability of cover | The interpretation of individual contracts incorporating older Clauses must be confirmed from the policy and endorsements |
| Insurable Interest and Assignees | The protection of bona fide assignees under the Shipping Line Insolvency Exclusion and the Unseaworthiness Exclusion | Insurable interest, assignment of the insurance contract, and subrogation are covered in “ICC2009 Insurable Interest Clause” |
| Relationship with B/L and NVOCC Liability | The separation of cargo-insurance exclusions from claims against carriers, freight forwarders, warehouse operators, and other parties | Notification deadlines, limitations of liability, and time-bar periods are covered in the B/L and NVOCC liability articles |
| Practical Order of Review | How to proceed to the detailed articles in cases involving cargo incidents, packing failures, shipping line credit concerns, and transport changes | The final determination of claim payment and legal liability in an individual case |
Purpose and Background
Compared with the period in which ICC1982 was introduced, containerized transport, multimodal through transport, warehouse cargo handling, carriage by NVOCCs, and packing or stowage by third parties had become commonplace by 2009.
Because of these changes, the expression “when the cargo leaves the warehouse” was no longer sufficiently precise to determine whether insurance attached when cargo was moved by forklift inside the warehouse, when loading onto a truck began, or when cargo was merely rearranged on a shelf.
It also became necessary to distinguish insufficient packing or an unsuitable conveyance selected by the insured from work performed after attachment of the insurance by an independent packing contractor, warehouse operator, freight forwarder, or another third party.
Further issues arose where risks changed after conclusion of the insurance contract, including shipping line insolvency, interruption of the voyage, resale during transit, and a change of destination.
ICC2009 therefore clarifies the attachment and termination of the insurance, the person and time of an operation, the insured’s knowledge, notification requirements, and agreement on rates and terms. This structure makes it easier to verify the relevant facts chronologically after a cargo incident.
Overview of Major Changes
| Area of Change | Basic Structure in ICC1982 | Main Revision in ICC2009 | Key Criteria | Practical Records Required |
|---|---|---|---|---|
| Insurance Period | From the time the cargo left the warehouse or place of storage until delivery to the final warehouse or place of storage | From the first movement for immediate loading until completion of unloading from the carrying vehicle or other conveyance | Purpose of movement, continuity with loading, and completion of unloading | Work-start times, gate-out records, and loading and unloading records |
| Insufficient Packing Exclusion | The exclusion applied broadly to insufficient packing, including certain container stowage performed before attachment or by the insured or their employees | The standard of withstanding the ordinary incidents of the insured transit and the relevant person and time of packing are stated expressly | Who performed the work, when it was performed, and which specifications applied | Packing specifications, photographs, instructions, and worker records |
| Shipping Line Insolvency Exclusion | Loss, damage, or expense caused by insolvency or financial default of vessel interests was broadly excluded | The exclusion depends on the insured’s actual or constructive knowledge at the time of loading | Time and content of knowledge and the possible effect on the normal prosecution of the voyage | Credit information, operational information, internal communications, and explanations to the shipper |
| Unseaworthiness and Unsuitability Exclusions | Vessels, craft, containers, and conveyances were dealt with in a more integrated structure | Vessels and craft are separated from containers and other conveyances | Time of loading, person performing the loading, and the insured’s knowledge | Container inspections, equipment settings, and loading records |
| Change of Destination | Held covered subject to prompt notice, additional premium, and terms to be agreed | Agreement on rates and terms, the market-availability test for pre-agreement loss, and sailing to another destination without the insured’s knowledge are stated expressly | Person directing the change, time of knowledge, notification, and time of loss | Change instructions, proposed route, notification records, and the insurer’s response |
Standard Terms Used in This Index Article
| Standard Term in This Article | Corresponding Article or Concept | Detailed Article | Matters Not to Be Confused |
|---|---|---|---|
| Insurance Period | Article 8 Transit Clause | Basic Structure of the ICC2009 Insurance Period Clause | It does not necessarily coincide with the carrier’s period of liability under the contract of carriage |
| Insufficient Packing Exclusion | Article 4.3 | Basic Structure of ICC2009 Exclusion Clauses | It must be distinguished from inherent vice, ordinary wear and tear, and a separate cargo-handling incident |
| Shipping Line Insolvency Exclusion | Article 4.6 Insolvency or Financial Default Exclusion | Basic Structure of ICC2009 Exclusion Clauses | It is not limited to formal insolvency proceedings of the shipping line |
| Unseaworthiness Exclusion | Article 5.1.1 Unseaworthiness or Unfitness of a Vessel or Craft | Basic Structure of ICC2009 Exclusion Clauses | The requirements differ from those applying to an unsuitable container or land conveyance |
| Unsuitability Exclusion | Article 5.1.2 Unfitness of a Container or Conveyance | Basic Structure of ICC2009 Exclusion Clauses | It does not share all of the same requirements as vessel seaworthiness |
| Change of Destination | Article 10.1 | Basic Structure of the ICC2009 Insurance Period Clause and ICC2009 Delay Avoidance, Governing Law, and Notification Obligations | It must be distinguished from deviation or transshipment occurring under the carrier’s contractual discretion |
| Sailing to Another Destination without the Insured’s Knowledge | Article 10.2 | ICC2009 Delay Avoidance, Governing Law, and Notification Obligations | It is not a change of destination directed by the insured |
| Constructive Total Loss and Abandonment | Article 13 and abandonment under English law | Basic Structure of ICC2009 Claims Clauses | Abandonment is distinct from assignment of the insurance contract or assignment of a claim |
Comparison Between ICC1982 and ICC2009
| Comparison Item | ICC1982 | ICC2009 | Meaning of the Change | Practical Point |
|---|---|---|---|---|
| Attachment of the Insurance | When the cargo left the warehouse or place of storage for commencement of transit | When the cargo was first moved within the warehouse or place of storage for immediate loading onto the carrying vehicle or other conveyance | The focus moved from the warehouse exit to the first movement directly connected with commencement of transit | Distinguish immediate loading from shelf rearrangement, inspection, processing, or another internal movement |
| Termination of the Insurance | Delivery to the consignee or another final warehouse or place of storage | Completion of unloading from the carrying vehicle or other conveyance at the final warehouse or place of storage | The abstract concept of delivery was replaced by a more specific operational point | The insurance does not necessarily terminate on truck arrival, door opening, or commencement of unloading |
| Use of a Conveyance for Storage | Not stated as a separate termination event in the same express manner | The insured’s election to use a vehicle, conveyance, or container for storage outside the ordinary course of transit is an express termination event | The treatment of container detention and storage on a vehicle became clearer | Distinguish temporary waiting in transit from storage chosen by the insured |
| Packing and Preparation | Insufficient packing was excluded, with provisions addressing container stowage before attachment or by the insured or their employees | The ordinary-incidents standard, the person performing the work, and the time of packing or preparation are stated expressly | Packing quality, the person performing the work, and timing are organized into one assessment structure | Independent contractors are not treated as employees |
| Shipping Line Insolvency | Loss, damage, or expense caused by insolvency or financial default was broadly excluded | The exclusion applies where the insured knew, or should have known in the ordinary course of business, of the relevant circumstances at the time of loading | The exclusion is limited by reference to the insured’s actual or constructive knowledge | The occurrence of insolvency alone does not establish the exclusion |
| Bona Fide Assignee | No express exception in Article 4.6 | An express exception protects a bona fide assignee who bought or agreed to buy the cargo under a binding contract of sale | Protection was added for an assignee in a genuine sale transaction | Confirm the assignee’s bona fide status, the binding contract of sale, and assignment of the insurance contract |
| Unseaworthiness and Unsuitability | Vessels, craft, containers, and conveyances were addressed in a more integrated clause structure | Vessels and craft are separated from containers and other conveyances | The applicable requirements can be identified more precisely by transport equipment | Do not confuse Article 5.1.1 with Article 5.1.2 |
| Change of Destination | Held covered subject to prompt notice, additional premium, and terms to be agreed | Agreement on rates and terms and the market-availability test for loss occurring before agreement are stated expressly | The matters previously compressed into “held covered” are divided into express requirements | Distinguish notification from confirmation of coverage |
| Sailing to Another Destination without the Insured’s Knowledge | No separate express provision in Article 10 | Article 10.2 deems the insurance to have attached at commencement of the contemplated transit | A voyage change occurring without the insured’s involvement is expressly addressed | Record when the insured and their employees became aware of the voyage change |
Change 1: Clarification of the Start and End of the Insurance Period
Under ICC1982, the insurance attached when the cargo left the warehouse or place of storage for commencement of transit and terminated upon delivery at the final warehouse or equivalent place of storage.
Under ICC2009, the insurance attaches when the cargo is first moved within the warehouse or place of storage for the purpose of immediate loading into or onto the carrying vehicle or other conveyance for commencement of transit.
The attachment point is therefore not limited to the moment the cargo leaves the building. A movement inside the warehouse may constitute attachment where it is the first movement directly and continuously connected with immediate loading onto a truck, trailer, or another conveyance.
By contrast, shelf rearrangement, inventory sorting, inspection, processing, packing preparation, and other movements not directly connected with immediate loading do not cause the insurance to attach merely because the cargo was moved.
The termination point was clarified as completion of unloading from the carrying vehicle or other conveyance at the final warehouse or place of storage. Truck arrival, entry through the warehouse gate, opening of the doors, or commencement of unloading does not by itself establish termination.
| Operational Situation | Fact to Confirm | Relationship with Attachment or Termination | Required Record | Detailed Article |
|---|---|---|---|---|
| Cargo is moved from a shelf inside the warehouse | Whether the movement was for immediate loading or merely internal rearrangement | The insurance may or may not have attached depending on the purpose and continuity of the movement | Shipping instructions, work instructions, and movement time | Basic Structure of the ICC2009 Insurance Period Clause |
| Cargo is moved to the truck-loading area | Whether loading occurred immediately after the movement | The movement may constitute the first movement for commencement of transit | Loading-start time and warehouse work records | Basic Structure of the ICC2009 Insurance Period Clause |
| The truck arrives at the final warehouse | Whether unloading has been completed | Arrival alone does not terminate the insurance | Arrival time and unloading start and completion times | Basic Structure of the ICC2009 Insurance Period Clause |
| A container is used for storage at the cargo owner’s election | Whether the container remains within the ordinary course of transit or has been converted to storage use | Article 8.1.3 may terminate the insurance | Storage instructions and the reason for container retention | Basic Structure of the ICC2009 Insurance Period Clause |
Change 2: Decision Structure of the Insufficient Packing Exclusion
Article 4.3 of ICC2009 excludes loss, damage, or expense caused by insufficiency or unsuitability of packing or preparation where the cargo cannot withstand the ordinary incidents of the insured transit.
For this purpose, packing includes stowage in a container. However, not every container-stowage operation is automatically treated as packing performed by the insured.
ICC2009 focuses on packing or preparation carried out by the insured or their employees, or carried out before attachment of the insurance. It also states expressly that employees do not include independent contractors.
Where an independent packing contractor, warehouse operator, freight forwarder, or another third party performs the work after attachment of the insurance, the specific requirements of Article 4.3 must therefore be examined.
This does not mean that damage is automatically covered whenever an independent contractor performs the work after attachment. Inherent vice, ordinary wear and tear, delay, the insurance period, causation under the applicable coverage clause, and the liability of the contractor must be assessed separately.
| Decision Factor | What ICC2009 Requires | Circumstance Supporting the Exclusion | Circumstance Requiring Further Analysis | Required Evidence |
|---|---|---|---|---|
| Packing Quality | Whether the packing or preparation could withstand the ordinary incidents of the insured transit | The packing was clearly unsuitable for the weight, vibration, moisture, or handling expected during transit | An abnormal external impact or separate cargo-handling incident may have caused the damage | Packing specifications, product specifications, and the survey report |
| Person Performing the Work | Whether the work was performed by the insured, an employee, or an independent contractor | The work was performed by the insured or their employee | The work was performed after attachment by an independent contractor | Purchase order, worker identity, and contractual relationship |
| Timing | Whether the packing or preparation occurred before or after attachment of the insurance | The packing or preparation was completed before attachment | A third party performed the work after attachment | Work timestamps, attachment point, and gate-out records |
| Container Stowage | Whether stowage, securing, and load distribution were adequate | Insufficient securing or uneven weight distribution caused the loss | Container damage or an abnormal external force may have intervened | Stowage photographs, loading plan, and lashing records |
| Causation | Whether the insufficient packing or preparation caused the loss, damage, or expense | The damage pattern is consistent with inadequate packing or securing | The cause remains unidentified or multiple causes may have operated | Damage photographs, expert opinion, and transport records |
Change 3: Limitation of the Shipping Line Insolvency Exclusion
Article 4.6 of ICC1982 broadly excluded loss, damage, or expense caused by the insolvency or financial default of the owners, managers, charterers, or operators of the vessel.
Under ICC2009, the exclusion applies where, at the time the cargo is loaded on board the vessel, the insured is aware, or in the ordinary course of business should be aware, that the insolvency or financial default could prevent the normal prosecution of the voyage.
The fact that the shipping line later becomes insolvent is therefore not sufficient by itself. It is necessary to determine what information existed at the time of loading, including credit concerns, operational suspensions, unpaid port charges, vessel arrests, or interruptions of fuel supply, and whether the insured knew or should have known of those circumstances.
An exception also applies where the claimant is a bona fide assignee of the insurance contract and has bought or agreed to buy the cargo under a binding contract of sale.
This exception does not arise merely because the claimant is the consignee. Assignment of the insurance contract, the assignee’s bona fide status, the binding contract of sale, and the purchase or agreement to purchase the cargo must be verified.
| Verification Item | ICC1982 | ICC2009 | Practical Focus | Verification Material |
|---|---|---|---|---|
| Insolvency or Financial Default | The exclusion applied broadly where the insolvency or financial default caused the loss, damage, or expense | The insured’s actual or constructive knowledge at the time of loading is required | What information was available at the time of loading | Credit reports, shipping line notices, and operational information |
| Matters That Should Have Been Known | No equivalent express knowledge standard | Matters that should have been known in the ordinary course of business are included | Whether material industry information or counterparty information was ignored | Internal emails, market reports, and inquiry records |
| Effect on the Voyage | Whether the insolvency or financial default caused the loss | Whether it could prevent the normal prosecution of the voyage | Distinguish financial concern from an actual threat to continued operations | Service suspensions, unpaid port charges, and fuel-supply information |
| Bona Fide Assignee | No express exception in Article 4.6 | A bona fide assignee under a binding contract of sale is protected | Confirm assignment of the insurance contract and the assignee’s bona fide status | Contract of sale, insurance policy, and assignment records |
Change 4: Separation of the Unseaworthiness and Unsuitability Exclusions
Article 5 of ICC1982 dealt with the unseaworthiness or unfitness of vessels and craft and the unfitness of containers and other conveyances within a more integrated clause structure.
ICC2009 separates the unseaworthiness or unfitness of a vessel or craft under Article 5.1.1 from the unfitness of a container or conveyance under Article 5.1.2.
For a vessel or craft, the central issue is whether the insured was privy to the unseaworthiness or unfitness at the time the cargo was loaded.
For a container or conveyance, the exclusion applies where loading occurs before attachment of the insurance, or where loading is carried out by the insured or their employees and they are privy to the unfitness at the time of loading.
Article 5.2 provides a bona fide assignee exception in relation to Article 5.1.1. The same exception is not stated for Article 5.1.2 and should not automatically be extended to the unfitness of a container or conveyance.
| Comparison Item | Unseaworthiness or Unfitness of a Vessel or Craft | Unfitness of a Container or Conveyance | Main Practical Material | Party to Contact |
|---|---|---|---|---|
| Article | Article 5.1.1 | Article 5.1.2 | ICC2009 wording and the insurance policy | Insurer |
| Subject | Unseaworthiness or unfitness of a vessel or craft for safe carriage | Unfitness of a container or another conveyance for safe carriage | Vessel information and equipment or container specifications | Shipping line and Actual Carrier |
| Knowledge | The insured’s knowledge at the time of loading | Knowledge where loading is performed by the insured or their employees | Abnormality reports, inspection records, and internal communications | Shipper, warehouse operator, and loading contractor |
| Loading before Attachment | The insured’s knowledge is the central express requirement | Loading before attachment of the insurance is itself one of the stated circumstances | Loading time and attachment point | Insurer and packing or loading contractor |
| Bona Fide Assignee | The Article 5.2 exception applies | The same exception is not stated expressly | Contract of sale and assignment of the insurance contract | Cargo owner and insurer |
Change 5: Change of Destination and Sailing to Another Destination without the Insured’s Knowledge
Article 10 of ICC1982 used a held covered structure where a destination change made by the insured after attachment remained covered subject to prompt notice, an additional premium, and terms to be agreed.
Article 10.1 of ICC2009 no longer uses the expression “held covered.” It instead requires the insured to notify the insurer promptly of the change of destination and to agree the applicable rates and terms.
Where loss occurs before agreement has been obtained, cover may be available only if it would have been available at a reasonable commercial market rate and on reasonable market terms.
Notification of the change does not therefore guarantee continued coverage under the original terms. The rates and terms applicable to the changed risk must be agreed with the insurer, and the insurer’s written response should be obtained.
Article 10.2 provides that where the contemplated transit has commenced but, without the knowledge of the insured or their employees, the vessel sails for another destination, the insurance is nevertheless deemed to have attached at commencement of the contemplated transit.
A change of destination directed by the insured, deviation or transshipment under the shipping line’s contractual discretion, and sailing to another destination without the insured’s knowledge must be distinguished because different provisions and notification requirements may apply.
| Situation | Main Article | Required Action | Coverage Focus | Key Times to Record |
|---|---|---|---|---|
| The insured changes the destination | Article 10.1 | Notify the insurer promptly and agree rates and terms | The terms on which the changed risk will be accepted | Decision, notification, implementation, and occurrence of loss |
| Loss occurs before agreement | Article 10.1 | Confirm the reasonable commercial market rate and reasonable market terms at the time of loss | Whether cover would have been available in the market | Notification, negotiations, and occurrence of loss |
| The vessel sails for another destination without the insured’s knowledge | Article 10.2 | Report the circumstances to the insurer promptly after discovery | Attachment at commencement of the contemplated transit | Sailing, discovery by the insured, and notification |
| The shipping line reroutes under contractual discretion | Article 8.3 and related provisions | Review the B/L terms and determine whether notice to the insurer is required | The ordinary course of transit and the carrier’s contractual discretion | Rerouting decision, notice, and cargo location |
| The contract of carriage terminates during transit | Article 9 | Request continuation of coverage promptly | Coverage after termination, additional premium, and the 60-day period | Knowledge of termination, notice, and onward carriage |
Recommended Reading Order by Purpose
| Purpose or Situation | First Article to Read | Next Article to Read | Reason for This Order |
|---|---|---|---|
| A cargo incident has occurred | Basic Structure of the ICC2009 Insurance Period Clause | Coverage Clauses → Exclusion Clauses → Delay Avoidance and Notification Obligations | First determine whether the incident occurred during the insurance period, then examine the covered risk and exclusions |
| Damage of unknown cause has been discovered | Basic Structure of ICC2009 Coverage Clauses | Insurance Period Clause → Exclusion Clauses | The proof required for the cause of damage differs among ICC(A), ICC(B), and ICC(C) |
| Packing or stowage is alleged to be the cause | Basic Structure of ICC2009 Exclusion Clauses | Insurance Period Clause → B/L and Freight Forwarder Liability Articles | Determine who performed the work and when, then separate the insurance exclusion from the operator’s liability |
| The shipping line becomes insolvent or suspends operations | Basic Structure of ICC2009 Exclusion Clauses | Insurance Period Clause → Claims Clauses → Notification Obligations | Review the knowledge requirement, termination of carriage, forwarding charges, and continuation of coverage in sequence |
| The destination is to be changed | ICC2009 Delay Avoidance, Governing Law, and Notification Obligations | Basic Structure of the ICC2009 Insurance Period Clause | Notification and agreement on rates and terms should occur before implementation, followed by confirmation of the changed insurance period |
| Constructive total loss or abandonment is being considered | Basic Structure of ICC2009 Claims Clauses | ICC2009 Duty to Mitigate Loss and Preservation of Rights | Separate the requirements for constructive total loss and Notice of Abandonment from the measures required to preserve the cargo |
| The insurer relies on an exclusion | Basic Structure of ICC2009 Exclusion Clauses | Coverage Clauses → Insurance Period Clause → Related Article 19 Articles | Review the underlying loss, the insurance period, and the governing law in addition to the exclusion itself |
| Recovery against a third party is pursued after payment | ICC2009 Insurable Interest Clause | ICC2009 Duty to Mitigate Loss and Preservation of Rights | Connect the parties and scope of subrogation with preservation of rights immediately after the incident |
Common Practical Issues
| Case | Relevant Change | Documents to Check | Practical Point |
|---|---|---|---|
| Cargo topples while being moved to the truck-loading area inside the warehouse | Whether this was the first movement causing the insurance to attach under ICC2009 | Shipping instructions, work sequence, loading schedule, and work times | Do not conclude that the incident preceded attachment merely because the cargo remained inside the warehouse |
| Cargo is dropped during unloading at the final warehouse | Whether the incident occurred before completion of unloading | Delivery records, unloading start and completion times, and photographs | Do not determine termination solely from truck arrival or a receipt stamp |
| Cargo is damaged after repacking by an independent contractor following attachment | The person and timing requirements under Article 4.3 | Repacking instructions, contractor details, work times, and photographs | Review other exclusions and the contractor’s liability separately |
| The insured performs container stowage and cargo shifts during transit | The Insufficient Packing Exclusion and container stowage | Stowage plan, lashing records, weight distribution, and photographs | Distinguish inadequate stowage from an abnormal external event |
| Loading continues after adverse credit information concerning the shipping line becomes available | The actual and constructive knowledge requirements under Article 4.6 | Credit reports, internal emails, shipping line explanations, and loading time | Review information available at loading rather than only the later insolvency date |
| A cargo buyer who did not know of the insolvency makes a claim | The bona fide assignee exception | Contract of sale, assignment of the insurance contract, and time of knowledge | Distinguish a consignee from an assignee of the insurance contract |
| A reefer container lacks the specifications required for the cargo | Unfitness of a container or conveyance under Article 5.1.2 | Container specifications, setting instructions, PTI records, and temperature data | Separate equipment unfitness, incorrect settings, delay, and inherent characteristics of the cargo |
| Loss occurs after the insured changes the destination but before agreement on rates and terms | The market-availability test under Article 10.1 | Change instructions, notification, insurer response, and time of loss | Do not assume automatic continuation of the original terms |
| The vessel sails for another destination without the insured’s knowledge | Attachment under Article 10.2 | Voyage information, the insured’s time of knowledge, and the B/L | Do not confuse the situation with a destination change directed by the insured |
| Cargo remains at an intermediate port after termination of the contract of carriage | Continuation of coverage under Article 9 and the insurance period under Article 8 | Termination notice, insurer notifications, storage records, and onward-carriage records | Review continuation of coverage in addition to the Shipping Line Insolvency Exclusion |
Comparison Table of Freight Forwarders’ Scope of Involvement
| Category | Support That May Be Provided | Matters That Should Not Be Determined Definitively | Practical Response |
|---|---|---|---|
| Contracting Carrier | Providing the House B/L and information on routes, transshipment, termination of carriage, destination changes, and subcontracted carriers | Whether cargo insurance applies, whether the Contracting Carrier has no transport liability, or whether an exclusion has been established | Record assistance with insurance notification separately from the response concerning transport liability |
| Actual Carrier | Providing factual records on vessel operation, cargo handling, container condition, transshipment, and discharge at another port | The final insurance interpretation of Articles 4.6, 5, and 10 | Separate observed facts from legal conclusions concerning liability or insurance |
| Simple Intermediary | Assisting with communication with insurers and carriers, document transmission, and survey arrangements | Whether formal notice to the insurer has been completed or coverage has been approved | Clarify the scope of the mandate, recipients, confirmation of receipt, and agency authority |
| Agent / Coordinator for Specific Operations | Coordinating packing, stowage, repacking, storage, onward carriage, and destination-change procedures | Whether the Insufficient Packing Exclusion, Unsuitability Exclusion, or Shipping Line Insolvency Exclusion applies | Record the instructing party, person performing the work, time of work, and approver |
| Provider of Ancillary Services (Packing, Storage, Inspection, etc.) | Recording packing specifications, container condition, storage environment, inspection results, and work times | Final conclusions on attachment or termination, cause of the incident, or whether the insurance claim is payable | Separate observed facts, work performed, and expert opinion in the report |
Decision Checklist
| Situation for Confirmation | Party to Confirm With | Points to Confirm | Action if an Issue Is Found |
|---|---|---|---|
| Confirming the applicable Clauses | Insurance company and insurance agent | Whether ICC1982 or ICC2009 applies and whether the policy incorporates ICC(A), ICC(B), or ICC(C) | Obtain the precise version and all endorsements incorporated into the policy |
| An incident occurs inside a warehouse | Shipper and warehouse operator | Purpose of movement, continuity with immediate loading, and work-start time | Prepare a chronology to determine whether the movement caused the insurance to attach |
| An incident occurs during final delivery | Delivery provider and consignee | Arrival, commencement of unloading, completion of unloading, and receipt times | Establish whether the loss occurred before or after completion of unloading |
| Insufficient packing is alleged | Shipper, packing contractor, and insurer | Packing specifications, person performing the work, time of work, and ability to withstand the ordinary incidents of the insured transit | Determine whether the work occurred before or after attachment and whether the person was an employee or independent contractor |
| Container stowage is disputed | Loading contractor, warehouse operator, and freight forwarder | Stowage plan, securing, weight distribution, person performing the work, and photographs | Obtain records sufficient to reconstruct the stowage and secure appropriate expert opinion |
| Concerns arise regarding the shipping line’s financial position | Shipping line, NVOCC, and insurer | Continued operations, insolvency information, planned loading, and cargo location | Consult the insurer before loading and consider alternative carriage |
| A claim follows shipping line insolvency | Insurer and cargo owner | Knowledge at loading, possible effect on the voyage, and the claimant’s status as an assignee | Fix the time and content of relevant knowledge through contemporaneous evidence |
| Unseaworthiness of a vessel is suspected | Actual Carrier, insurer, and surveyor | Condition of the vessel and the insured’s knowledge at loading | Examine the insurance exclusion separately from carrier liability |
| Unfitness of a container is suspected | Shipping line, warehouse operator, and freight forwarder | Container specifications, inspection records, loading time, person performing the loading, and knowledge | Organize the evidence according to each requirement of Article 5.1.2 |
| A change of destination is being considered | Shipper, insurer, and freight forwarder | New destination, route, time of decision, and planned implementation | Agree rates and terms before issuing the changed transport instruction |
| Loss occurs before agreement on rates and terms | Insurer and insurance broker | Commercial market rates, market terms, and availability of cover at the time of loss | Confirm whether cover would have been available in the market at that time |
| The vessel proceeds to another destination | Shipping line, Contracting Carrier, and insurer | Person directing the change, the insured’s knowledge, and the carrier’s discretion under the B/L | Distinguish Article 8.3, Article 10.1, and Article 10.2 |
| An insurance claim is initiated | Insurer, carrier, and warehouse operator | Insurance period, covered risk, exclusions, notification deadlines, and time-bar periods | Review the detailed articles in the appropriate decision sequence |
| Liability against a third party is pursued | Contracting Carrier, Actual Carrier, and appropriate specialists | B/L, Claim Letter, limitations of liability, and subrogation | Preserve rights separately from the cargo-insurance determination |
Common Misunderstandings
| Common Misunderstanding | Actual Understanding | Practical Point |
|---|---|---|
| ICC2009 completely expanded the scope of coverage | The principal changes clarify previously uncertain requirements while maintaining the basic coverage structure | Distinguish an actual expansion of protection from clarification of an exclusion or procedural requirement |
| The 2009 revision is irrelevant under ICC(A) | The insurance period, Insufficient Packing Exclusion, Shipping Line Insolvency Exclusion, Unseaworthiness and Unsuitability Exclusions, and destination changes remain relevant under ICC(A) | Do not confuse broad peril coverage with the insurance period and exclusions |
| ICC1982 and ICC2009 are practically identical | There are material differences concerning attachment, termination, knowledge, third-party operations, and loss occurring before agreement on revised terms | Confirm the incorporated edition from the issued policy |
| The insurance cannot attach while the cargo remains inside the warehouse | The insurance may attach inside the warehouse when the cargo is first moved for immediate loading | Confirm the purpose and continuity of movement rather than relying only on the cargo’s location |
| The insurance always terminates when the cargo arrives at the final warehouse | ICC2009 focuses on completion of unloading from the carrying vehicle or other conveyance | Record arrival, receipt, and unloading completion separately |
| Any packing defect establishes the exclusion regardless of who performed the work | The identity of the person performing the packing, preparation, or container stowage and the time of the work are material | Distinguish an employee from an independent contractor |
| Damage is always covered where a third party packs the cargo after attachment | Other exclusions, the insurance period, the applicable coverage clause, causation, and third-party liability must still be examined | Do not determine payment from Article 4.3 alone |
| Shipping line insolvency always establishes the Article 4.6 exclusion | ICC2009 requires actual or constructive knowledge at the time of loading | Review the information available at loading rather than only the later insolvency date |
| A consignee automatically qualifies for the bona fide assignee exception | The assignee’s bona fide status, a binding contract of sale, and assignment of the insurance contract must be verified | Distinguish the consignee, cargo owner, and assignee of the insurance contract |
| Unseaworthiness of a vessel and unfitness of a container are assessed under the same requirements | ICC2009 separates them into Articles 5.1.1 and 5.1.2 | Organize the subject, loading time, person performing the loading, and knowledge by Article |
| Held covered means unconditional retrospective coverage | Even under ICC1982, prompt notice, additional premium, and terms to be agreed were required | Distinguish notification from confirmation of coverage |
| Removal of the expression held covered from ICC2009 means that the protection disappeared | Article 10.1 expressly sets out agreement on rates and terms and the market-availability test for pre-agreement loss | Do not determine the scope of protection solely from a change in terminology |
| Whenever a vessel proceeds to another port, the insured has changed the destination | A change directed by the insured, Article 10.2, and deviation or transshipment under the carrier’s discretion must be distinguished | Identify who made the decision and when the insured became aware |
| This article alone is sufficient to determine whether the claim is payable | This is a hub article for identifying the relevant changes; the individual Clause articles must still be reviewed | Review the insurance period, covered risk, exclusions, notification, and claims provisions in sequence |
Practical Scenario 1: Cargo Topples During the Initial Movement inside the Warehouse
A large machine designated for shipment is moved by forklift from its storage position to the truck-loading area and topples during that movement.
Under the ICC1982 wording referring to the cargo leaving the warehouse, an incident occurring inside the warehouse could create uncertainty as to whether the insurance had attached.
Under ICC2009, the question is whether the movement was the first movement for commencement of transit and was made for the purpose of immediate loading onto a carrying vehicle or other conveyance.
Where shipping instructions, truck arrival, the work sequence, the loading schedule, and the incident form one continuous operation, the insurance may already have attached even though the cargo remained inside the warehouse. A movement for inspection, processing, or shelf rearrangement would not necessarily produce the same result.
Practical Scenario 2: Repacking by an Independent Contractor after Attachment
After commencement of transit, damage to the outer packing is discovered at an intermediate warehouse. An independent packing contractor repacks the cargo, which is later damaged after shifting during transport.
Article 4.3 requires consideration of whether packing or preparation was performed by the insured or their employees or before attachment of the insurance.
An independent contractor who performs repacking after attachment is not treated as an employee of the insured. That fact alone, however, does not establish that the resulting loss is payable.
The necessity and specifications of the repacking, the cause of the shifting, the ordinary incidents of the insured transit, the insurance period, the applicable coverage clause, other exclusions, and the contractor’s liability must each be examined.
Practical Scenario 3: Loading despite Known Shipping Line Credit Concerns
Information concerning unpaid port charges, possible suspension of services, or interruption of fuel supplies relating to a shipping line circulates in the market. The insured nevertheless loads the cargo, after which the shipping line becomes insolvent and the cargo is detained at an intermediate port.
Article 4.6 requires an examination of whether the insured knew, or should have known in the ordinary course of business, of circumstances that could prevent the normal prosecution of the voyage at the time of loading.
The fact that the shipping line later entered formal insolvency proceedings is not the only relevant fact. The information available before loading and the state of knowledge within the insured’s organization must also be established.
In addition to reviewing the Shipping Line Insolvency Exclusion, it is necessary to confirm termination of the contract of carriage under Article 9, notice to the insurer, continuation of coverage, forwarding charges, and carrier liability under the B/L.
Practical Scenario 4: A Reefer Container Is Unfit for the Cargo
A reefer container without the necessary cooling capacity is arranged for cargo that must remain below a specified temperature, and the cargo temperature rises during transport.
The issue is not limited to mechanical failure. It must also be determined whether the container or conveyance was fit for the safe carriage of the cargo.
For Article 5.1.2, the relevant questions include who performed the loading, whether loading occurred before or after attachment, and whether the insured or their employees were privy to the unfitness at the time of loading.
Container specifications, PTI records, temperature-setting instructions, loading records, data-logger data, and alarm histories should be secured. Equipment unfitness, incorrect settings, mechanical failure, delay, and inherent characteristics of the cargo must be analyzed separately.
Practical Scenario 5: Loss after a Destination Change but before Agreement on Rates and Terms
Cargo is resold during transit and its destination is changed to a port in another country. Notice is given to the insurer, but cargo damage occurs before the revised rates and terms are agreed.
ICC1982 addressed this situation through the held covered structure. Article 10.1 of ICC2009 instead states expressly the requirement to agree rates and terms and the market-availability test for loss occurring before agreement.
Sending notice alone does not establish that coverage continues under the original terms. It must be determined whether cover would have been available at a reasonable commercial market rate and on reasonable market terms at the time of loss.
A chronology should record the destination-change decision, notice to the insurer, commencement of the changed transit, the insurer’s response, and occurrence of the loss.
Documents to Confirm in Practice
| Document Category | Main Documents | Issue That Can Be Verified | Main Source | Practical Point |
|---|---|---|---|---|
| Insurance Documents | Insurance policy, Certificate, incorporated ICC wording, and endorsements | Applicable edition, coverage conditions, and amendments to the Clauses | Insurer and insurance agent | Review the final issued policy rather than only the quotation |
| Warehouse and Loading Records | Shipping instructions, work records, forklift logs, and loading photographs | Attachment of the insurance and the person performing packing or loading | Shipper, warehouse operator, and loading contractor | Record both the purpose and time of each movement |
| Unloading and Delivery Records | Delivery notes, receipts, unloading records, and delivery photographs | Termination of the insurance | Delivery provider and consignee | Distinguish arrival from completion of unloading |
| Packing Records | Packing specifications, work instructions, worker records, stowage plans, and lashing records | The person and timing requirements under Article 4.3 | Packing contractor, warehouse operator, and freight forwarder | Distinguish independent contractors from employees |
| Shipping Line Credit Records | Credit reports, operational reports, shipping line notices, and internal emails | Actual or constructive knowledge under Article 4.6 | Shipping line, NVOCC, and internal personnel | Preserve the information available at the time of loading |
| Vessel and Container Records | Vessel information, EIR, PTI records, container specifications, and temperature data | Articles 5.1.1 and 5.1.2 | Actual Carrier, depot, and warehouse operator | Separate the requirements for a vessel or craft from those for a container or conveyance |
| Destination-Change Records | Change instructions, resale contract, revised route, and insurer notifications and responses | Articles 10.1 and 10.2 | Shipper, insurer, and freight forwarder | Distinguish notice from agreement on rates and terms |
| Incident and Rights-Preservation Records | Photographs, survey reports, Claim Letters, and deadline schedules | Insurance claims and subrogation recovery | Insurer, carrier, and warehouse operator | Proceed with insurer notification and third-party notices in parallel |
Summary
The main changes in the ICC2009 Clauses do not completely overhaul the fundamental coverage structure of ICC1982. They principally clarify criteria that frequently caused disputes in international transport practice.
For the insurance period, the wording moved from the cargo leaving the warehouse and being delivered to the final warehouse to more specific operational points: the first movement for immediate loading and completion of unloading from the carrying vehicle or other conveyance.
For the Insufficient Packing Exclusion, the analysis now expressly includes whether the packing or preparation could withstand the ordinary incidents of the insured transit, who performed the work, when it was performed, and whether the person was an independent contractor.
For the Shipping Line Insolvency Exclusion, it is not sufficient that insolvency or financial default occurred. The insured must have known, or in the ordinary course of business should have known, at the time of loading that the circumstances could prevent the normal prosecution of the voyage. An exception also protects a bona fide assignee of the insurance contract who bought or agreed to buy the cargo under a binding contract of sale.
For the Unseaworthiness and Unsuitability Exclusions, Article 5.1.1 concerning a vessel or craft is separated from Article 5.1.2 concerning a container or conveyance. This permits a more precise review of the time and person of loading and the insured’s knowledge.
For a change of destination, Article 10.1 expressly states the requirement to agree rates and terms and the market-availability test for loss occurring before agreement. Article 10.2 separately confirms attachment where, without the knowledge of the insured or their employees, the vessel sails for another destination.
The common structure of these revisions is evidence-based. The relevant questions are who performed the operation, when it occurred, what the insured knew, when the insurance attached and terminated, and when notice was given to the insurer.
This article serves as the hub for the ICC2009 Clauses series. In an actual incident, the insurance period should generally be reviewed first, followed by the applicable coverage clause, exclusions, claims provisions, notification obligations, and preservation of rights against third parties.
Marine cargo insurance for ocean shipments varies more by terms and conditions than by premium. Confirm the applicable coverage conditions and interpretation of the Clauses with the insurance company, insurance agent, or other responsible party before making a final decision.
ICC2009約款の変遷と改定概要