Importers that have been required to shut down their businesses with products in transit from overseas, have been unable to accept delivery of their goods, which has led to congestion. In all likelihood, large rent, storage and demurrage costs are being incurred by hundreds of thousands of companies worldwide.

Following a recent report by the ‘The Loadstar’, and very much dependent on each individual company’s policy, it appears that if the insured fails to take delivery because of the lack of warehouse space, most marine cargo insurance policies will not pay for any form of detention charges.

Also, if the insured, because of loss of market abandons the goods, they are unlikely to recover the insured value of the goods from the insurance policy. This is because any claim for loss of market is usually excluded under policies and these claims do not usually meet the requisite definition of “physical loss” to the cargo.

A much more practical method of avoiding excessive carrier storage and demurrage charges is to speak to Westbound about moving products into one of many storage facilities we have access to around the UK and worldwide. Provided goods are clear of customs, and subject to availability, moving them out of ‘carrier controlled’ facilities will often reduce storage and detention costs.

We suggest that importers and exporters check their individual marine insurance policies, in the meantime do not hesitate to contact us regarding any shipments en-route that are likely to remain undelivered during the lockdown period.


– Westbound Logistics pride ourselves on offering personalised and tailored logistics services, to find out more please call email