Cargo insurance feels like a backup plan—until something goes wrong. This week, that “what if” became real when several shipping containers tumbled off a vessel at the Port of Long Beach, scattering into the water and halting operations. Fortunately, no injuries were reported, but for the cargo owners? That cargo may be lost, damaged, or delayed indefinitely.
This incident is a potent reminder: marine transportation comes with real risk—even in port.
What Happened at Long Beach?
- A vessel preparing to dock experienced a stack collapse, sending containers overboard.
- The U.S. Coast Guard and Port Authority had to pause operations to investigate and recover debris.
- The cause is still under review, but weather, loading imbalance, or lashing failure could be factors.
Here’s the Problem: The Carrier Isn’t Always Liable
Many shippers assume that the shipping line will cover the loss if a container falls into the ocean. In most cases, they won’t.
- Carriers operate under limited liability rules.
- International conventions cap their financial responsibility, often well below the value of the goods.
- If General Average is declared (a legal principle where all parties share the cost of saving a voyage), you may owe money—even if your cargo was undamaged.
Why Cargo Insurance is Worth the Investment
Cargo insurance bridges the gap between carrier liability and your financial exposure.
It covers:
- Physical loss or damage during transit
- Theft, pilferage, or partial loss
- Weather-related incidents, fire, or sinking
- Delays that result in spoilage (for perishable goods)
- General Average contributions
And more importantly, it gives you peace of mind.
Coppersmith’s Advice: Insure Every Shipment.
No one can predict these events. But you can plan for them. At Coppersmith Global Logistics, we help clients:
- Secure tailored insurance coverage
- Understand exclusions and responsibilities
- Act quickly in claims situations
- Avoid costly oversights before cargo moves
Don’t wait for a dramatic headline to take action. Let’s protect your cargo before it leaves the dock. Talk to your Coppersmith rep about adding cargo insurance to your next shipment.
