Transshipment Port Risks and Cargo Insurance Practices

Transshipment Port Risks and the Practical Handling of Cargo Insurance

Transshipment port risks refer to the complex transport risks occurring during the process in which cargo is transferred at an intermediate port onto another main vessel, feeder vessel, or transport equipment. These risks include cargo accidents, misloading, connection delays, port congestion, prolonged storage, theft, reefer power management, temperature settings, port strikes, security issues, and changes in transport contracts.

In modern container shipping, transshipment via hub ports is commonly conducted.

Therefore, transshipment itself is not considered an abnormal transport method and may be part of the scheduled transport contract and the ordinary course of transit.

On the other hand, at transshipment ports, the number of cargo handling operations increases, cargo may be temporarily stored in container yards or similar locations, and multiple operators are involved in vessel connections, reefer power supply, seal management, and container condition.

As a result, not only simple delays to the final destination but also issues such as cargo drops during transshipment handling, misloading, misrouting to a different port, reefer power disconnection, temperature setting errors, theft, rainwater intrusion, dangerous goods incidents, or termination of the transport contract may become problematic.

In marine cargo insurance, the mere fact that cargo is at a transshipment port does not solely determine whether coverage continues or terminates.

It is necessary to distinguish whether the transshipment was planned, whether the delay was beyond the insured's control, whether the cargo was discharged, forcibly unloaded, reloaded, or transshipped, whether the transport contract ended at an unplanned location, or whether the cargo was moved to storage outside the ordinary course of transit.

This article primarily organizes the insurance period, delay exclusions, physical damage, additional charges, preservation of evidence, and parties’ liabilities at transshipment ports with reference to ICC 2009 Clause 8.1, Clause 8.3, and Clause 9.

Scope Covered in This Article

Item	Contents Covered in This Article	Contents Covered in Related or Separate Articles
Scheduled Transshipment	Organization of the ordinary course of transit for cases where cargo is transshipped as scheduled at hub ports or similar facilities.	Details on specific routes, shipping line schedules, and current local port situations should be confirmed with the shipping line or local agents.
ICC 2009 Clause 8.1	Outline of insurance commencement, ordinary course of transit, and basic scenarios where insurance coverage terminates.	General Warehouse to Warehouse coverage and insurance termination at final destinations are covered in dedicated articles on insurance periods.
ICC 2009 Clause 8.3	Examination of delays beyond the insured's control, deviation, forced unloading, reloading, transshipment, and transportation changes at the carrier’s discretion.	Legal carrier liability for deviations and detailed B/L terms are handled in articles on carriage contracts.
ICC 2009 Clause 9	Notification, additional premiums, the 60-day period, and re-transportation when the transport contract ends at an unscheduled port or location.	Extensions, additional premium approval, and specific conditions vary by insurer and should be verified in actual insurance policies.
Delay Damage	Continuation of insurance during delays and distinctions between damages or costs arising from such delays.	Details on Delay Clauses, delivery delays, penalties, and consequential loss are covered in articles on delay damages.
Reefer Cargo	Power interruptions, temperature setting errors, prolonged detention, and evidence preservation at transshipment ports.	Special clauses for refrigerated cargo, temperature deviation times, and quality assessment are addressed in reefer incident articles.
Free Time	Differences between shipping line free time for charges and the ordinary course of transit under marine cargo insurance.	Demurrage, detention, and port charge calculations are covered in articles on port-related costs.
Incidents at Transshipment Ports	Handling of cargo handling accidents, misloading, theft, water damage, dangerous goods incidents, and container damage.	Final compensation acceptability and liability depend on insurance policy terms, contracts, and evidence and are assessed case by case.
Freight Forwarder Involvement	Standard Five Classifications-based organization of port selection, condition communication, incident notification, local surveys, and claims handling.	Final liability for compensation is determined individually based on the scope of mandate, negligence, causation, and liability limits.

Transhipment

Transhipment refers to transferring cargo to another main vessel, feeder vessel, barge, rail, truck, or other means of transport at an intermediate port or location during transit.

In English, it is written as Transhipment or Transshipment.

In container transport, cargo is carried by a large main vessel to a major port and then transported to the final destination by a feeder vessel, or multiple main routes are connected at a hub port.

When the transhipment is planned and the cargo remains under the carrier's control while continuing to the next leg of transportation, it may be considered part of the ordinary course of transit.

On the other hand, if there is an unplanned forced unloading, inability to connect, termination of the transport contract, waiting for cargo owner’s instructions or sale, or a shift to storage outside the ordinary course of transit, separate confirmation is required.

Classifying Transshipment into Four Conditions

Condition	Typical Situation	Main Insurance Issues	Key Reference Documents
Scheduled Transshipment	Connecting to the next vessel at the hub port according to the initial booking or the route shown on the B/L.	Ordinary course of transit, Clause 8.1 and Clause 8.3	Booking, B/L, vessel schedule, trace records
Transshipment Delay beyond Insured's Control	Waiting for the next vessel due to port congestion, severe weather, lack of vessel space, missed connections, etc.	Distinguishing insurance continuation under Clause 8.3 and delay exclusion under Clause 4.5	Delay notice, next vessel schedule, port records, storage conditions
Forced Discharge / Unscheduled Transshipment	Unloading or reloading at an unscheduled port due to vessel accident, port closure, or operational circumstances.	Clause 8.3, Forced Discharge, Deviation, and re-transport plan	Shipping line notification, vessel report, unloading records, reloading plan
Termination of Transport Contract / Interruption of Transit	Transport contract ends at an unscheduled port, and the carrier does not continue the transit.	Insurance termination under Clause 9, notifications, continuation approval, additional premium, and 60-day period	Transport contract termination notice, insurer notification, storage records, re-transport plan

Accidents Commonly Occurring at Transshipment Ports

Type of Accident	Occurrence Situation	Insurance Points to Confirm	Main Documents	Main Liability Parties
Container Drop, Collision	Containers drop, collide, or deform during transshipment cargo handling.	Confirm accidental damage during the insurance period, applicable ICC, and incidents during cargo handling.	Terminal accident reports, cargo handling records, photos, survey reports	Shipping line, terminal, cargo handling operator, carrier
Mistaken Loading, Misdelivery to Another Port	Cargo is not loaded onto the scheduled vessel but transported on a different vessel or to a different port.	Separate physical damage, delay damage, additional charges, and transport contract liabilities.	Booking, loading records, trace records, shipping line notifications	Shipping line, NVOCC, terminal, freight forwarder
Missed Connection, Transshipment Delay	Unable to connect to the designated onward vessel, resulting in waiting at the transshipment port.	Distinguish continuation of insurance under Clause 8.3 and delay exclusion under Clause 4.5.	Main vessel schedule, delay notifications, next vessel plan	Carrier, NVOCC, freight forwarder
Reefer Power Disconnection	Power connection is interrupted or stopped while container is in yard storage.	Confirm physical damage due to temperature deviation, special clauses, and proximate cause.	Reefer logs, power records, data logger	Terminal, shipping line, reefer management operator
Incorrect Temperature Setting	Incorrect temperature setting is entered in booking or on-site operations.	Verify instruction contents, setting history, physical damage, and communication liability.	Booking, temperature instructions, setting history, emails	Cargo Owner, freight forwarder, shipping line, terminal
Theft, Cargo Pilferage	Seal breakage, cargo removal, or container theft occurs during yard storage.	Confirm theft coverage, insurance period, seal control, and storage conditions.	Seal numbers, gate records, police reports, CCTV	Terminal, carrier, security company
Rainwater, Seawater Ingress	Water enters through container damage during cargo handling or yard storage.	Confirm external accident, container suitability, storage accident, and timing of damage.	Container photos, salt reaction tests, rainfall records, survey	Shipping line, terminal, container provider
Hazardous Goods and Adjacent Cargo Accident	Leakage, fire, explosion, odor, or contamination of hazardous goods affects adjacent cargo.	Verify physical damage, hazardous goods declaration, stowage, and causality with adjacent cargo.	Hazardous goods declaration, stowage records, component analysis, accident report	Cargo Owner, hazardous goods declarant, shipping line, terminal
Long-Term Detention	Extended delay due to port congestion, strikes, or issues under the transport contract.	Confirm ordinary course of transit, Clauses 8.3 and 9, transition to storage, and notifications.	Reason for detention, duration, storage location, next vessel schedule	Insurance period, delay damage, storage charges, liabilities of involved parties

Port and Operational Risks at Transshipment Ports

The risks at transshipment ports are not limited to the physical handling of cargo.

Port congestion, cargo handling capacity, strikes, port closures, security, local public holidays, terminal operating hours, container yard storage capacity, reefer plug availability, and accident reporting systems all affect transportation.

Even within the same port, conditions vary depending on terminal, shipping line, season, cargo volume, and feeder service used.

Therefore, evaluation of transshipment ports should not be based solely on country or port names. Instead, it is important to confirm the specific route, terminals used, connection times, cargo characteristics, and capabilities of local agents.

Particular Points to Confirm for Reefer Cargo

For temperature-controlled cargo such as frozen foods, refrigerated foods, pharmaceuticals, chemicals, fresh products, and others, the duration of stay and power management at the transshipment port can directly affect quality.

Item to Confirm	Main Risks	Documents to Check	Response in Case of Incident
Set Temperature	Input errors in booking or local setting	Booking, temperature instructions, setting history	Verify the instructed values against the actual settings.
Power Connection	Delay in connection after unloading or before the next loading	Plug-in and plug-out records	Identify periods without power supply.
Reefer Log	Abnormalities in power supply, alarms, intake or discharge temperature	Reefer logs from vessel and terminal	Obtain original data as early as possible.
Data Logger	Difference between internal cargo temperature and device display temperature	Original data from data logger	Preserve data before any alteration.
Inspection System	Overlooked alarms, insufficient inspection intervals	Terminal inspection records, alarm response records	Confirm alarm occurrence time and response time.
Duration of Stay	Quality changes due to prolonged stay exceeding schedule	In-out records, next vessel schedule, delay notifications	Separate effects of delay and temperature anomalies.

The mere fact that transshipment was delayed does not prove physical damage to the cargo.

Confirm the time and range of temperature deviations, internal cargo temperature, cargo tolerance limits, quality inspections, and marketability.

Basic Structure of ICC 2009 Clause 8.1

ICC 2009 Clause 8.1 defines the main points at which marine cargo insurance begins, continues during the ordinary course of transit, and terminates.

The insurance starts at the moment the cargo is first moved at the location specified in the insurance contract for the purpose of immediate loading onto the means of transport.

The coverage continues through the ordinary course of transit but ends at the earliest occurrence among the events listed in Clause 8.1.1 through Clause 8.1.4.

Clause	Main Cause of Termination of Insurance	Check at Transshipment Port	Points to Note
Clause 8.1.1	When unloading from the means of transport is completed at the final warehouse or storage location in the final destination	The transshipment port is usually not the final warehouse at the final destination.	Confirm the actual destination under the insurance contract.
Clause 8.1.2	When unloading is completed at another warehouse or location chosen by the insured or their employees for storage, sorting, or delivery outside the ordinary course of transit	Determine whether it is awaiting transshipment or storage outside ordinary transit chosen by the cargo owner.	Clause 8.1.2 is not a transshipment continuation clause.
Clause 8.1.3	When the insured or their employees choose to use transport vehicles, means of transport, or containers for storage outside the ordinary course of transit	Differentiates container detention awaiting the next vessel from container use for storage purposes.	Determination is not based solely on whether within Free Time.
Clause 8.1.4	When 60 days have elapsed after completion of unloading from the overseas vessel at the final unloading port	Distinguish between transshipment ports en route and the final unloading port.	The 60-day rule does not apply uniformly to congestion or storage at transshipment ports.

ICC 2009 Clause 8.3 and Transshipment, Delays, and Deviation

ICC 2009 Clause 8.3, based on the insurance termination reasons in Clause 8.1 and Clause 9, provides that insurance coverage continues during certain transportation changes.

The main applicable situations include the following.

• Delays beyond the control of the insured
• Deviation
• Forced Discharge
• Reshipment
• Transshipment
• Changes in transportation details allowed at the carrier’s discretion under the transportation contract

Therefore, planned transshipment or connection delays beyond the insured's control should be checked in relation to Clause 8.3 to confirm the continuation of insurance coverage.

However, Clause 8.3 does not provide for indefinite continuation of coverage simply by remaining at the transshipment port.

In cases where insurance termination reasons under Clause 8.1 apply, or if the transportation contract itself ends unexpectedly at a location raising issues under Clause 9, separate confirmation is required.

Deviation Confirmation

Deviation refers to departure from the planned route or the normally expected transit path.

Even if there is a change of transshipment port, alteration of calling order, arrival at an unexpected port, or a route alteration, marine cargo insurance does not necessarily terminate immediately.

Under ICC 2009 Clause 8.3, certain deviations are treated as continuing coverage.

However, the following points should be confirmed:

• Whether the route change was instructed by the insured
• Whether it was based on the carrier’s decision or discretionary power under the B/L terms
• Whether the cargo remains in the ordinary course of transit after the change
• Whether the contract of carriage remains in effect
• Whether the destination itself was changed by the insured
• Whether notification to the insurer or additional premium is required

A deviation at the carrier’s discretion differs from a Change of Voyage where the insured changes the destination; these are separate issues.

Delay in Voyage and Clause 4.5

Delay in Voyage is a practical term that describes a situation where delays occur during the voyage or transportation.

At transshipment ports, delays may arise due to port congestion, missed connections, strikes, adverse weather, lack of vessel space, or vessel breakdowns.

ICC 2009 Clause 8.3 provides for continuation of the insurance period during delays beyond the insured's control.

On the other hand, ICC 2009 Clause 4.5 stipulates an exclusion of liability for loss or expense resulting from delay.

Therefore, "the insurance contract continuing during the delay" and "coverage for damage caused by the delay" are not the same.

Event	Main Relevant Clauses	Practical Interpretation	Typical Examples
Accidental loss occurs during the delay	Clause 8.3, applicable ICC, relevant exclusions	Recognized as a separate physical loss during continuing insurance.	Theft, fire, container drop while waiting for transshipment
Value declined due to the delay itself	Clause 4.5	Possible exclusion for loss caused by delay is confirmed.	Market price drop, loss of sales opportunity
Temperature control failure occurs during delay	Clause 8.3, Clause 4.5, refrigerated conditions	Distinguishes between mere passage of time and an external accident such as power failure.	Temperature rise due to reefer power disconnection
Natural deterioration due to delay	Clause 4.4, Clause 4.5	Examines cargo-specific nature and impact of the delay.	Fresh produce freshness loss, maturation progress
Additional charges arise during the delay	Insurance policy, expense provisions, Clause 4.5	Storage fees, power fees, and re-shipment costs are not necessarily covered.	Yard storage fees, re-handling costs

ICC 2009 Clause 9 and Termination of the Transport Contract

When the transport contract cannot continue as scheduled at the transshipment port and ends at an unexpected port or location, ICC 2009 Clause 9 should be reviewed.

Clause 9 becomes relevant if, due to circumstances beyond the control of the insured, one of the following occurs:

• The transport contract terminates at a port or location different from the contractual destination
• The transport ends for any reason other than the completion of unloading as stipulated in Clause 8

In such cases, marine cargo insurance generally also terminates.

However, if the insurer is notified reasonably and promptly and the insured requests coverage continuation, insurance may be extended subject to payment of any additional premium required by the insurer.

Differences between Clause 9.1 and Clause 9.2

Clause	Cargo Condition	Termination of Insurance Cover	Main Items to Confirm
Clause 9.1	When cargo is sold or delivered at an unscheduled port or location, or remains at that location	Whichever is earlier between the time of sale/delivery at that location or 60 days after the cargo arrival, unless there is a special agreement	Notification date, arrival date, sale/delivery date, additional premium, and special agreements
Clause 9.2	When under the insurance contract, cargo is retransferred within 60 days or any extended period approved by the insurer to the original or another destination	Upon completion of retransshipment, the insurance terminates in accordance with Clause 8	Retransport start date, changed destination, insurer approval, additional premium

The 60-day period in Clause 9 does not automatically apply to all cases where cargo is held at a transshipment port.

It is important to confirm that the transport contract ended at an unscheduled port or location, that the insurer was notified, and that a continuation request was made, among other factors.

Distinction Between Clause 8.3 and Clause 9

Item	Clause 8.3	Clause 9	Key Determination
Transport Contract	Generally continues.	Ends at an unexpected location or the transport itself has ended.	Whether the carrier still has a continuing transport obligation
Cargo Condition	Delay, diversion, forced unloading, reloading, or transshipment in progress.	Condition requiring separate arrangements for subsequent transportation, etc.	Whether the ordinary course of transit is continuing
Insurance Continuation	Continues based on the termination in Clause 8.1 and Clause 9.	Generally terminates, but continuation may be possible with notice, insurer approval, and additional premiums.	Notice, insurer approval, and additional premium
Period	No fixed days are set solely because the cargo is in a transshipment port.	After continuation approval, either 60 days under Clause 9.1 or re-transport under Clause 9.2 are relevant.	Arrival date, re-transport date, and special agreement
Typical Cases	Waiting for connection to the next vessel, unexpected transshipment, routing change due to shipping line convenience.	Carrier refuses to continue transport, contract ends locally.	Shipping line notice and status of transport contract

Cases of Easier Insurance Continuation and Cases Where the Insurance Period Becomes an Issue

Category	Cargo Condition	Main Clauses	Insurance Confirmation	Notes
Ordinary transshipment	Waiting for the connecting vessel at the scheduled hub port.	Clause 8.1, Clause 8.3	Confirm whether the ordinary course of transit continues.	Separate physical damage from delay damage.
Delay beyond the insured's control	Connection is delayed due to port congestion, bad weather, or lack of vessel space.	Clause 8.3, Clause 4.5	Confirm separately the continuation of the insurance period and delay exclusion.	Consider early notification if extended.
Forced unloading and reloading	Cargo is unloaded at an unplanned port due to vessel accident, then reloaded onto the next vessel.	Clause 8.3	Confirm whether the transportation contract continues.	If transportation contract ends, verify Clause 9.
Long-term storage	Cargo remains in yard or warehouse for an extended period with no scheduled next vessel.	Clause 8.1, Clause 8.3, Clause 9	Confirm the reason for storage, purpose of storage, and status of transportation contract.	Do not judge solely by length of storage period.
Termination of transportation contract	The carrier ends transportation at an unscheduled port.	Clause 9	Confirm prompt notification, continuation request, and additional premium.	Insurance may terminate if notification is not made.
Storage outside ordinary transit	Cargo is held for sale waiting, instruction waiting, or sorting/distribution purposes by cargo owner’s choice.	Clause 8.1.2, Clause 8.1.3	Confirm whether the cargo has deviated from the ordinary course of transit.	Insurance termination issues may arise even within Free Time.

Difference Between Free Time and Marine Cargo Insurance

Free Time is a period concept used by the shipping line or terminal concerning container or terminal usage charges.

On the other hand, the ordinary course of transit under marine cargo insurance refers to the insurance period concept of whether the cargo is continuously moving toward its destination according to the intended transport purpose.

Therefore, these two do not necessarily coincide.

Situation	Free Time	Insurance Status	Matters to Confirm
Waiting for the scheduled next vessel	Within Free Time	It may be considered within the ordinary course of transit.	Next vessel schedule, transport contract, and storage purpose
Waiting for sale under cargo owner’s instruction	Within Free Time	It may be treated as storage outside the ordinary course of transit.	Cargo Owner’s instruction, storage purpose, Clause 8.1.2 or 8.1.3
Waiting due to port congestion	Exceeding Free Time	May be regarded as delay under Clause 8.3.	Reason for delay, transport contract, and next vessel arrangement
Storage after termination of transport contract	Within or exceeding Free Time	Insurance termination or continuation procedures under Clause 9 become relevant.	Notification, continuation request, arrival date, and re-transport

Distinction Between Physical Damage, Delay Damage, and Additional Charges

Damage Type	Typical Examples	Insurance Confirmation	Main Documents
Physical Damage	Cargo damage caused by dropping, collision, water exposure, theft, temperature-related incidents	Confirm applicable ICC, cause of incident, insurance period, and deductible.	Photographs, survey report, incident report, temperature records
Quality Deterioration Due to Delay	Freshness loss or natural deterioration from prolonged stay	Check Clause 4.4, Clause 4.5, and whether external incidents are involved.	Quality inspection, temperature records, cargo characteristics
Losses from Delivery Delay	Penalty payments, contract cancellation, loss of sales opportunities	Should be assessed separately from ordinary physical cargo damage.	Sales contract, penalty calculations, customer notifications
Storage and Power Supply Charges	Yard storage fees, reefer power supply charges, monitoring costs	Verify relevant cost clauses, necessity, insurer approval, and delay exclusions.	Invoices, quotations, approval records
Re-transportation Costs	Arrangement of alternative vessel, transport via different port, returns, reloading	Confirm Clause 9, cost provisions, and carrier liability.	Re-transportation quotations, shipping line notices, insurer responses

Standard Five Classifications for Freight Forwarder Involvement

The five classifications used in this article are not established by laws or industry-wide consensus. They serve as an analytical framework in this series to clarify the scope of freight forwarder involvement.

Standard Five Classifications	Main Involvement in Transshipment Port Operations	Central Responsibility Considerations	Main Documents
Simple Intermediary	Acts as an intermediary connecting the cargo owner with the shipping line, NVOCC, insurance company, or local agents.	Whether the role went beyond simple intermediary by deciding or guaranteeing the route, transshipment port, or insurance continuation	Referral records, quotations, emails
Cargo Transportation Service Provider	Undertakes cargo transportation services including transshipment.	Contracted transport segments, route selection, connection arrangements, communication of conditions, and contractual transport obligations	Transportation contracts, bookings, shipping line terms
NVOCC / House B/L Issuer	Acts as the House B/L issuer undertaking international transport including transshipment.	House B/L terms, transshipment authority, delays, limitation of liability, and notice deadlines	House B/L, Master B/L, transport terms
Door-to-Door Single Contractor	Assumes comprehensive responsibility for pickup, export, transshipment, storage, import, and delivery.	Scope of comprehensive contract, subcontractor management, local response, and communication between transport stages	Comprehensive quotations, specifications, subcontract records
Agent/Coordinator for Specific Operations	Coordinates local inspections, surveys, reefer log acquisition, or re-shipment at the transshipment port.	Mandated inspection items, scope of coordination, and final decision-maker	Mandate records, inspection requests, local reports

Contracting Carrier and Actual Carrier are legal or contractual statuses and do not replace the Standard Five Classifications used in this article.

Operational tasks such as cargo handling, storage, reefer monitoring, gate operations, transshipment work, and surveys do not by themselves constitute a sixth classification.

Concrete Example 1: Delay in Connection at Scheduled Transshipment Port

Suppose ordinary dry container cargo is planned to be transported via a Hub Port as originally booked.

Due to port congestion, connection to the scheduled vessel was not possible, and the cargo waited for the next vessel in the container yard for 10 days.

During this time, the carriage contract continued, and the shipping line arranged the subsequent vessel.

In this case, the delay and transshipment caused by factors beyond the insured’s control require confirmation of the continuation of the insurance period in relation to Clause 8.3.

However, penalties for delay in delivery, loss of sales opportunities, or market price decline should be checked separately from physical damage, including under Clause 4.5.

Continuation of insurance during transshipment delay does not mean that delay-related losses are covered.

Example 2: Reefer Power Cut During Transshipment Wait

Assume that frozen food cargo is waiting at a transshipment port for the next vessel, and during this time the reefer power at the terminal is cut off for an extended period.

Data from the data logger and reefer log confirm that after the power was cut, the cargo temperature rose beyond the permissible range.

In this case, the key point is verifying the causal relationship between the external incident of power disconnection and the physical damage to the cargo, rather than the delay itself at the transshipment.

The insurance period under Clause 8.3, the applicable ICC, the Special Clauses for Frozen and Refrigerated Cargo, the conditions related to temperature deviation, and Clause 4.5 should be examined separately.

Regarding the shipping line, terminal, and freight forwarder, it is necessary to confirm the responsibilities for communicating the set temperature, power connection, alarm monitoring, and incident notification.

In reefer-related incidents, the focus is on the duration of power outage, temperature changes, and cause of physical damage, rather than the length of the delay.

Example 3: When the Carriage Contract Ends at an Unscheduled Port

Suppose the vessel breaks down, and the cargo is forcibly discharged at an unscheduled port. The shipping line then terminates the carriage contract beyond that port.

The cargo owner must arrange onward transportation to the final destination using another shipping line.

In this case, it is necessary to confirm whether this situation constitutes merely forced discharge or transshipment under Clause 8.3, or whether the carriage contract has ended and Clause 9 applies.

If the carriage contract has ended, the insurer should be promptly notified to request continuation of insurance, and any required additional premium and conditions for onward transportation should be confirmed.

If the onward transport starts within the period specified in Clause 9 or within an approved extension period, the relationship with Clause 9.2 should be verified.

When cargo is held at an unscheduled port, a key point to distinguish between Clause 8.3 and Clause 9 is whether the shipping line continues to bear the obligation of carriage.

Common Practical Issue Cases

Case	Key Issues	Main Reference Documents	Initial Actions
Missed connection to the scheduled vessel	Clause 8.3, Clause 4.5, arranging the next vessel	Delay notices, schedules, trace records	Confirm cargo location and next vessel schedule.
Erroneous transport to a different port	Deviation, misdelivery, additional charges, physical damage	B/L, loading records, shipping line notices	Confirm continuation of transport contract and reforwarding plan.
Container dropped during transshipment handling	Accidental damage, cargo handling responsibility, insurance period	Accident report, photos, survey report	Arrange a local joint survey.
Reefer power supply was cut off	Temperature deviation, external accident, special clauses	Power records, reefer logs, data logger	Preserve original data and cargo samples.
Theft occurred during long-term storage	Clause 8, storage conditions, theft coverage	Seal records, gate records, police report	Identify accident location and responsible management party.
Cargo stored awaiting cargo owner’s sales instructions	Clause 8.1.2 or 8.1.3, storage outside ordinary course of transit	Cargo Owner instructions, storage contract, emails	Confirm termination of insurance and need for separate coverage.
Transport contract terminated at an unexpected port	Clause 9, notification, additional premium, 60 days	Contract termination notice, insurer’s reply, arrival records	Request immediate continuation of insurance.
Re-transport after transshipment port change	Deviation, Clause 8.3, Clause 9.2	Change notice, re-transport booking, insurer approval	Confirm transport contract and insurance conditions simultaneously.

Judgment Checklist for Freight Forwarder Practice

Confirmation Stage	Party to Confirm With	Items to Confirm	Action in Case of Issues
At Quotation / Booking	Cargo Owner, Shipping Line, NVOCC	Direct sailing or transshipment, transshipment port, planned connections, expected dwelling days	Explain transshipment conditions and schedule.
When Selecting Transshipment Port	Shipping Line, Local Agent	Congestion, strikes, security, cargo handling, evidence collection system	Consider alternative route if high risk.
When Arranging Reefer	Cargo Owner, Shipping Line, Terminal	Set temperature, ventilation, humidity, power supply, monitoring and recording	Record accurately in booking and operation instructions.
When Confirming Insurance	Cargo Owner, Insurance Company, Insurance Agent	Clause 8, Clause 9, delay, temperature conditions and notification	Confirm contact standards in case of extended delays.
When Transshipment Delay Occurs	Shipping Line, NVOCC, Local Agent	Cause of delay, next vessel, cargo location, storage condition	Document circumstances and explain to cargo owner.
When Modifying Transportation Contract	Shipping Line, Cargo Owner, Insurance Company	Contract continuation, forced discharge, reloading, contract termination	Check Clause 8.3 or Clause 9.
When Accident Occurs	Local Agent, Terminal, Shipping Line, Insurance Company	Time of accident, responsible party, cargo and container condition	Secure local photos and accident report.
When Temperature Abnormality Occurs	Shipping Line, Terminal, Surveyor	Temperature, power-off duration, alarms, quality impact	Preserve data and samples.
When Considering Subrogation	Insurance Company, Shipping Line, Maritime Lawyer	Responsible party, liability limits, notification deadlines, and evidence	Manage insurance claim and subrogation separately.

Documents Important as Evidence

Document Type	Main Documents	Purpose of Verification	Points to Note
Insurance-related Documents	Insurance Policy, Insurance Details, ICC, Special Clauses, Extension Approvals	Verify insurance period, exclusions, notification obligations, and additional conditions.	Check not only the Clause names but also the official wording.
Transport Contract Documents	B/L, Waybill, Booking, Transport Terms	Confirm transshipment, deviation, carrier’s discretion, and contract termination.	Check both front-side information and back-side terms and conditions.
Schedule Documents	Main Vessel Schedule, Connection Schedule, Next Vessel Booking, Delay Notices	Confirm planned transshipment and delay circumstances.	Preserve both original and revised schedules.
Location and Management Documents	Trace Records, Gate Records, Yard Records	Verify cargo location, duration of retention, and management authority.	Confirm times and time zones.
Reefer Documents	Set Temperature, Reefer Logs, Data Logger, Power Supply Records	Check temperature deviations, power-off periods, and alarm responses.	Secure raw data before any editing.
Cargo and Container Documents	Cargo Photos, Container Photos, Seal Numbers, EIR	Confirm damage status, seals, and container abnormalities.	Take photos before door opening, moving, or repairs.
Accident Documents	Terminal Accident Reports, Shipping Line Reports, Police Reports	Verify accident date and time, causes, and involved parties.	Secure written documents in addition to verbal explanations.
Survey Documents	On-site Survey Reports, Joint Survey Records, Quality Inspections	Confirm damage status, causes, timing, and responsible segments.	Record notification of attendance to relevant parties.
Storage Documents	Storage Contracts, Storage Locations, Free Time, Cost Details	Determine whether cargo is in ordinary course of transit or transitioned to storage.	Do not confuse charge periods with insurance periods.
Notification and Subrogation Documents	Insurer Notifications, Shipping Line Notifications, Subrogation Letters, Deadline Management Tables	Preserve insurance continuity, subrogation rights, and deadlines.	Separate accident notifications from formal claims.

Points to Confirm with Insurance Companies and Insurance Agents

• Applicable ICC (A), ICC (B), or ICC (C)
• Insurance commencement and termination conditions under ICC 2009 Clause 8.1
• Handling of delay, deviation, compulsory unloading, reloading, and transshipment under Clause 8.3
• Timing of notification, continuation requests, and additional premiums under Clause 9
• Treatment of sale/delivery and the 60-day period under Clause 9.1
• Handling of re-transportation and changed destinations under Clause 9.2
• Exemption of delay liability under Clause 4.5
• Free Time and determination of ordinary course of transit
• Notifications or extension procedures required for extended storage periods
• Temperature deviation conditions and special clauses for reefer cargo
• Handling of storage charges, reloading costs, and re-transportation costs
• Approval prior to on-site surveys, disposal, or quality inspections
• Accident notification, formal claims, statutes of limitation, and deadlines for filing suits

Items to Organize in Advance Confirmation with the Cargo Owner

• Whether the shipment uses a direct sailing or a transshipment service
• Planned transshipment port and transshipment vessel
• Connection time and expected storage duration
• Port congestion, strikes, and security risks
• Settings for reefer cargo temperature, power supply, and recording method
• Notification method in case of transshipment delays or route changes
• Party responsible for insurer notification in case of long-term storage or termination of the transport contract
• Handling of delay damages, liquidated damages, and lost profits
• Authority to arrange and bear the cost of local surveys
• Decision authority on cargo disposal, re-shipment, or return
• Cooperation for claims against shipping lines, terminals, and local agents
• Scope of coverage guaranteed by the freight forwarder and exclusions

Basic Flow of Incident Handling

1. Confirm the current location of the cargo, transshipment port, terminal, and the managing party.
2. Verify whether the operation was a scheduled transshipment or an unscheduled unloading or route change.
3. Check if the transport contract is still in effect or if it ended at an unscheduled port.
4. Determine whether Clause 8.3 or Clause 9 will be the primary point of focus.
5. Review the vessel schedule, the next vessel planned, reasons for delay, and duration of detention.
6. Secure photographs of the cargo, container, seal numbers, and terminal records.
7. For reefer cargo, secure the reefer log, power supply records, and data logger information.
8. Notify the insurance company, insurance agent, shipping line, NVOCC, and local agents.
9. If Clause 9 is relevant, promptly request continuation of insurance coverage.
10. Arrange for local joint surveys and quality inspections as necessary.
11. Separate physical damage, delay damages, storage costs, and re-transportation costs.
12. Confirm whether the cargo remains in the ordinary course of transit or has moved into out-of-ordinary transportation storage.
13. Check the potential for claiming compensation from the shipping line, terminal, local agents, and work contractors.
14. Manage notification deadlines, formal claim submission deadlines, statutes of limitation, and litigation deadlines.
15. If the damage amount or liability issues are substantial, consult a maritime lawyer.

Situations When a Maritime Lawyer Should Be Engaged

• When there is a dispute over whether Clause 8.3 or Clause 9 applies
• When there is a dispute over whether the transport contract ended at an unscheduled port
• When the timing of notice under Clause 9 or continuation of insurance is contested
• When the relationship between Free Time and the ordinary course of transit is disputed
• When the proximate cause between transshipment delay and physical damage is disputed
• When responsibility for reefer power management or temperature settings is contested
• When carrier liability regarding deviated routes or unscheduled transshipment is disputed
• When making high-value claims against shipping lines, terminals, or local agents
• When the cargo owner makes high-value compensation claims against freight forwarders or NVOCCs
• When multiple countries’ laws, jurisdiction, or B/L clauses are involved
• When notice deadlines, statutes of limitations, or filing deadlines are approaching

Common Misunderstandings

Misunderstanding	Actual Consideration	What Should Be Confirmed
Insurance always continues indefinitely during transshipment	Check the termination of insurance in Clause 8.1 and also Clause 9.	Confirm the transport contract, storage purpose, and insurer notification.
Continuation of transshipment is provided in Clause 8.1.2	Delays, deviation, forced discharge, reloading, and transshipment are covered in Clause 8.3.	Verify the Clause number and official wording.
If within Free Time, the transit is always in the ordinary course	Free Time is a tariff-related concept and does not correspond with the insurance period.	Check the storage purpose, cargo owner’s instructions, and next vessel schedule.
Exceeding Free Time immediately terminates insurance	If the delay is beyond the insured’s control, Clause 8.3 may apply.	Confirm the reason for delay and continuity of transport contract.
If insurance continues during delay under Clause 8.3, delay damages are also covered	Continuation of the insurance period and delay exclusion under Clause 4.5 are separate issues.	Differentiate between physical damage causes and losses caused by delay.
Insurance always continues for 60 days at the transshipment port	The 60 days in Clause 8.1.4 and Clause 9.1 apply in different situations.	Confirm whether it is the final discharge port or the termination point of the transport contract.
Once the transport contract ends, only Clause 8.3 needs to be checked during transshipment	If the transport contract ends at an unscheduled port, Clause 9 mainly applies.	Check the shipping line’s contract termination notice.
If quality deteriorates due to transshipment delay, it automatically qualifies as physical damage	Separate delay, natural deterioration, and external accidents.	Confirm temperature, cargo characteristics, power failures, and quality inspections.
If reefer temperature display is normal, the cargo has no issues	There may be inconsistencies between equipment display temperature and cargo internal temperature.	Check data logger, cargo inspection, and reefer log.
Since the transshipment port is just a passing point, accident records can be collected at the final port	If local records are lost, it becomes difficult to confirm the accident location and liability segment.	Early securing of local photos, terminal records, and survey reports is needed.
All accidents at transshipment ports are the responsibility of the shipping line	Involvement of the cargo owner, NVOCC, terminal, local agent, or freight forwarder should also be checked.	Confirm the transport contract and actual scope of engagement.
Submitting accident notice suspends the official claim deadline	Accident notification, formal claim filings, statutes of limitation, and litigation deadlines are managed separately.	Check deadlines on insurance certificates and B/L terms.

Practical Points

• Scheduled transshipment may be considered part of the ordinary course of transit.
• Delays, deviations, forced unloading, reloading, and transshipment should be reviewed in relation to ICC 2009 Clause 8.3.
• Clause 8.1.2 does not establish a continuous transshipment clause but defines the termination of insurance due to storage or other events outside ordinary transit.
• If the carriage contract terminates at an unscheduled port, Clause 9 should be consulted.
• Clause 9 emphasizes prompt notification, continuation requests, additional premiums, and terms of retransshipment.
• The 60-day periods in Clause 9.1 and Clause 8.1.4 apply in different contexts and should not be confused.
• Do not confuse insurance continuation under Clause 8.3 with delay exclusions under Clause 4.5.
• Free Time is a tariff-related concept and does not correspond to the ordinary course of transit under marine cargo insurance.
• For reefer cargo, temperature settings, power supply records, reefer logs, and data logger documentation should be secured.
• If an accident occurs at the transshipment port, photographs, accident reports, and survey records should be obtained locally.
• Separate physical damage, delay damages, storage costs, and retransshipment expenses.
• Claims under marine cargo insurance should be distinguished from liability claims against carriers, terminals, and freight forwarders.

Summary

Transshipment port risk involves a combination of transport risks related to transshipment cargo handling, connections, yard storage, reefer management, theft, port congestion, extended stays, deviation from the route, and changes in the transport contract.

Transshipment transport is common in modern container shipping, and a planned transshipment itself does not immediately signify abnormal transit or termination of insurance cover.

ICC 2009 Clause 8.1 defines the commencement of insurance, the ordinary course of transit, and the main termination events of insurance.

Clause 8.1.2 specifies the termination of insurance when the insured selects a different warehouse or facility for storage or sorting and delivery outside the ordinary course of transit; it does not provide for continuous transshipment.

Delays, deviation, forced unloading, reloading, and transshipment beyond the insured’s control should be reviewed in connection with Clause 8.3.

However, even if Clause 8.3 allows insurance cover to continue during delay, the delay exclusion under Clause 4.5 relates to any loss or expense caused by the delay.

Therefore, continuing the insurance contract should not be confused with coverage of loss due to delay.

If the transport contract terminates unexpectedly at an unscheduled port or location for reasons beyond the insured’s control, Clause 9 should be checked.

Clause 9 emphasizes prompt notification to the insurer, requests for continuation of cover, any required additional premium, sale or delivery at the unscheduled port, and the timing of 60 days after cargo arrival and the start of re-shipment.

Free Time is a fee-related concept used by shipping lines or terminals and does not correspond to the ordinary course of transit or the insurance period under marine cargo insurance.

For reefer cargo, physical damage may arise not only from transshipment delays but also from power interruptions, temperature setting errors, alarm responses, and missing temperature records.

After an incident, early securing of photos of the cargo and container, transshipment records, gate records, terminal incident reports, reefer logs, data loggers, and local survey materials is essential.

Freight forwarders or NVOCCs must not treat the transshipment port merely as a point of passage but should manage route selection, connection time, temperature control, insurer notification, local response to incidents, and evidence preservation according to their actual scope of engagement.

The final insurance application and liability for compensation are determined individually based on the insurance policy, ICC, B/L terms, transport contract, cause of the incident, status of the transport contract, notification content, and supporting evidence.