Get to know the vital terms of Logistics and Supply Chain Management.
The declared value for carriage is another important concept in logistics and it defines the value of the cargo as declared by the shipper. This declared value defines the amount for which the carrier is responsible in case of loss or damage of cargo while in transit. Different carriers charge a fee that depends on this value, which can be charged at the point of departure/destination. In this regard, by declaring the value, shippers inform the carriers of the risk concerning the shipment of the goods so that adequate compensation is in place in case of loss or damage.
The declared value fee is determined through the entire value of the consignment as per the shipper’s declarations. The higher the declared value, the more the shipper will be charged for shipping the consignment. This fee offers protection beyond the liability of the carrier and makes a guarantee to the shippers to be paid by the declared value if the goods are either lost or damaged. However, the declared value does not act as an insurance policy but provides extra liability coverage to the shipper.
To prevent issues from arising and to ensure that everything runs smoothly, it is important that the right value of goods being transported is stated. This may make the fees go up or down depending on the actual quantity you will declare which in turn may put you at a compromise if you under-declare your shipment and something happens to it. Make sure that the price fully corresponds to the value of the goods, and remember that it will be better to buy additional insurance if the things bought are valuable or can easily be broken.
The declared value for carriage assists in making sure that shippers receive money for loss or damage under the value of their shipment. It is necessary to declare the right value to ensure that there will be enough coverage and protection when the items are shipped. It is also important to confirm that the declared value corresponds to the value of your shipment to achieve the best result in case of shipment damage.
