Contingency Insurance :
An area at the end of a rail, ship, air or truck line which serves as a loading, unloading and trans¬fer point for cargo and containers. Container terminals of¬ten include loading equipment, storage facilities, repair facilities and management offices
An oceangoing vessel designed specifically to easily handle the loading, stowage and off-loading of ocean freight containers.
Containers may be stowed either below deck or on deck.
= Marshalling Yard
A facility at which FCL (full container load) and empty containers are received from or delivered to consignors and consignees by or on behalf of a carrier. Container yards are also used as a facility to receive mer¬chandise from consignors for packing into containers - container depot
The practice and technique of unitizing cargo in a boxlike device (container) in which a number of pack¬ages are stored and transported as a single unit. Container¬ization facilitates transit between trucks, trains, and ships, as well as for storage, from an original location to a final destination.
Advantages of containerization include: less handling of cargo, more protection against pilferage, less exposure to the elements and reduced cost of shipping.
- air freight
Container descriptions have been broadened to include a unitized load on a carrier-owned pallet (unit load device or ULD), loaded by shippers, and unloaded by receivers at places other than on airline premises, and restrained and contoured so as to permit proper position¬ing and tiedown aboard an aircraft.
– banking / finance / foreign exchange
The amount (gener¬ally a percentage) a buyer pays a seller to delay transfer of a stock, security or foreign exchange to the next or any fu¬ture day. The opposite of backwardation.
Also called difference in conditions insurance. Insurance which protects the interests of the insured in the event another party’s insurance fails or falls short. Com¬monly used in both import and export situations:
Example 1: Exporting
There are several countries whose laws require that marine insurance on shipments to those countries be placed with lo¬cal insurance companies. This has the effect of requiring the importer to furnish the insurance. The quality and extent of coverage of this insurance, however, may be in question. If the exporter feels that he has insurable interest he can still protect himself by the purchase of contingency or difference in conditions insurance which protects his own interests in the event the importer’s insurance fails or falls short. While the cost of this is naturally less than the cost of primary insur¬ance, it must be borne by the exporter.
Example 2: Importing
A domestic buyer on CIF (Cost, Insurance, Freight) terms must rely upon foreign underwriters, since the insurance will have been placed by the seller in the country of origin. Once again, the quality and extent of coverage of this in¬surance may be in question. If the importer feels that he has insurable interest he can still protect himself by the purchase of “contingency” or “difference in conditions” insurance which protects his own interests in the event the exporter’s insurance fails or falls short. Note: By purchas¬ing on FOB, C & F or similar terms, the domestic importer can control his own insurance. He will then be able to deal with his own underwriters in case of loss or in case of de¬mand for general average security - insurable interest
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