Cargo Insurance: Safety Considerations Beyond Economic Compensation

1. About cost and price

Myth 1: Low-cost freight service means high cost-effectiveness

Fiction: People often think that choosing the lowest-priced freight company can save costs, but low prices may be accompanied by a decline in service quality, such as the use of old vehicles leading to longer transportation time, increased risk of cargo damage, or frequent additional charges during transportation.

Fact: Only by considering the service quality, transportation efficiency, cargo safety and other factors of the freight company can we find a truly cost-effective freight service. Freight services with too low prices often cannot provide comprehensive protection.

Myth 2: Fuel cost is the only determinant of freight prices

Fiction: Fuel price fluctuations do have an impact on freight costs, but it is not the only factor that determines freight prices. Other factors such as vehicle acquisition and maintenance costs, driver wages, insurance costs, tolls, and corporate management costs all account for an important proportion of freight prices.

Fact: Freight prices are the result of the combined effect of multiple cost factors. Even if fuel prices are stable, changes in other costs may lead to adjustments in freight prices.

2. About transportation efficiency

Myth 3: The more vehicles, the higher the transportation efficiency

Fiction: Simply increasing the number of vehicles does not necessarily improve transportation efficiency. If there is a lack of a scientific and reasonable dispatching and management system, vehicles may have problems such as unreasonable route planning, long loading and unloading time, and high empty driving rate, which will reduce the overall transportation efficiency.

Fact: Efficient transportation depends on the synergy of multiple factors such as optimized dispatching system, reasonable route planning, efficient loading and unloading process, and professional quality of drivers, rather than just the number of vehicles.

Myth 4: Direct transportation is always faster than transshipment

Fiction: Although direct transportation theoretically reduces the transit link of goods, in actual situations, direct transportation vehicles may need to wait for the goods to be fully loaded before departure, or they may not be able to choose the optimal route due to route restrictions. If the transshipment mode has an efficient transshipment center and coordination mechanism, it can achieve rapid diversion and connection of goods and may reach the destination faster.

Fact: The transportation speed cannot be simply judged by direct transportation or transshipment, but it must comprehensively consider multiple factors such as specific transportation routes, quantity of goods, and operating efficiency of transshipment points.

3. About cargo safety

Myth 5: Purchasing adequate insurance can fully guarantee cargo safety

Fiction: Purchasing adequate insurance only allows you to obtain financial compensation when cargo is lost, but it does not guarantee that cargo will not be damaged or lost during transportation. Insurance claims may also have complex procedures and clause restrictions, such as losses caused by certain specific reasons may not be covered by insurance.

Fact: Insurance is only part of cargo safety protection. Freight companies also need to take a series of safety measures, such as strengthening vehicle safety inspections, providing safety training for drivers, installing cargo fixing and monitoring equipment, etc., to reduce the risk of cargo damage from the source.

Myth 6: Valuable goods cannot be transported by freight

Fiction: Some people believe that valuable goods are unsafe to transport by freight and are prone to theft or damage. In fact, regular freight companies have complete security measures and insurance mechanisms to transport valuable goods.

Fact: Many freight companies have the ability to transport valuable goods. By taking special packaging, transportation and security measures, and purchasing adequate cargo transportation insurance, they can ensure the safe transportation of valuable goods.