Shipping by rail is often the best option to deliver your goods or products in a quick and safe manner anywhere across the country. It is a popular option for shipment of any kind, ranging from small to large quantities. There are rail shipment options that operate on a transcontinental basis as well to transport your goods over long distances, across continents. That is not all, you will find that shipping goods by rail have several additional benefits as well, such as being one of the most economical shipping options. Shipping by rail also weighs less on the environment in so many ways.
However, even though there are so many benefits to shipping by rail, it is also a very tricky thing because damage to goods while shipping by rail is a much common occurrence than one might be able to comprehend. Good and merchandise are prone to damage due to the long journeys that they undertake during the rail-time. Also, often, goods end up being lost and not actually reaching their destination. The loss that you might have to bear could well run into thousands of dollars.
Hence, the best option to protect your goods and interest during the entire shipping journey is to get Shipping by Rail Insurance; however, it is important to understand that such insurance is very different in nature to an insurance you take while shipping through trucks or ships. The shipping by rail insurance is different and tricky, thus, understanding the basics of it is essential.
It is also important to note here that it is not at all mandated by law that the railroads need to have insured cargo only in their rail cars, hence, you can without any issues opt for shipping by rail without insurance as well. However, the risk factor is extremely high and you can get shipping by rail insurance at a nominal cost which makes it the best option to go ahead with to protect your goods.
#3 Major Mistakes People Make While Opting for Shipping by Rail Insurance
The major mistake that people unintentionally making while selecting a shipping by rail insurance is to assume that they are similar, or at the very least, function in a manner similar to the coverage offered by a ship or trucking company. The liability coverage that most railroads offer is very low as compared to the other methods of transportation. In most cases, the insured amount is only up to $25,000 if any goods are damaged in a single rail car. This is unsuitable in cases where the total value of your goods that are on the rail car exceeds this amount.
Another mistake that many people make while shipping by rail is to assume that their overall umbrella policy will extend and cover the amount that is over and above the shipping by rail insurance amount. In most cases, this does not happen as both are viewed as separate cases. Hence, you will still be covered only for the amount of your shipping by rail insurance, regardless of the amount of your umbrella policy.
Lastly, people forget that different laws are present in different states for insurance purposes as well. Hence, if your shipment is traveling through several states then it is a good idea to do a bit of research on what are the laws in each of the states concerning shipping by rail insurance, claims, and benefits etc. This can prove to be very helpful.
What to do if you want additional coverage?
If the total value of your shipment is higher than the shipping by rail insurance then no need to panic. All insurance companies offer a service, often, referred to as an Excess Coverage Policy or Additional Coverage in which you can minimize your cost of risk by paying an additional cost. This will increase your coverage and you would be able to ship goods by rail without worries.
Even though you have to pay an additional amount for excess coverage, you will find that it is still economical and the cost for the same if far less than the cost of the cargo and the allowed deductibles under your umbrella insurance coverage. Moreover, the benefits of the same are numerous and at least your goods and interests will be protected in every leg of the journey.
A very important and often overlooked piece of the transportation puzzle is cargo insurance. While its definition is fairly straightforward and its function is relatively simple, its importance and enough different kinds exist that a closer look is warranted. Making sure your cargo is correctly protected is a crucial step in protecting your customer, yourself and your company.
Cargo Insurance
The term “cargo insurance” can be defined as an insurance policy that covers loss or physical damage to goods being transported. Much like homeowners or automobile insurance, it is a form of risk management put into place to hedge against unexpected theft, damage or total loss. While cargo insurance is not required in order to ship a commodity, the vast majority of carriers provide a certain amount of insurance coverage with their shipping rate and overall transportation service.
Primary Insurance
In the trucking world, the primary insurance is the actual layer of protection enacted when a loss event occurs. Typically the primary insurance holder is the trucking company that was contracted to perform the move, and the reimbursement would generally come directly from that carrier’s insurance company. Food that spoils in transit, freight damaged during transport and theft are examples of situations where primary insurance would cover the financial value of the damaged goods if the claim is deemed valid.
Contingency Insurance
Contingency insurance is a type of coverage that exists whenever a freight broker is involved. A freight broker works for a third party logistics company (3PL) that does not own their own assets such as trucks and trailers. When a broker at a 3PL selects a trucking company to transport your commodity, the insurance provided by that 3PL is contingency insurance because since they do not have their own assets they are unable to provide primary insurance. In this example, your cargo would be covered by both the trucking company’s primary insurance as well as the 3PL’s contingency insurance.
While contingency insurance provides an additional layer of coverage for the cargo being shipped by a 3PL, an inherent danger is that the contingency insurance may fail to provide the very protection it promises. Contingency insurance covers a very limited window of time and events, and as a result, it is possible for that coverage to prove worthless in certain specific situations.
Suppose that during transportation the carrier’s primary insurance coverage lapses. Whether it’s because the insurance company goes bankrupt or because the carrier forgot to pay its premiums, the cargo in this example is now uninsured. If a loss event occurs at this point the contingency insurance would kick in, as the primary insurance no longer exists in order to cover the loss. In examples such as this, the contingency insurance coverage will pay a valid claim when the primary insurance is unable.
However, if a loss event occurs during transportation and the primary insurance determines that it’s not a valid claim, the chances are great that the contingency insurance will make a similar claim decision. Contingency policies typically mirror the primary policy, and if the primary insurer finds evidence that a claim is not valid, the contingency insurer will, more often than not, side with the primary insurer.
Supplemental Insurance
Simply put, supplemental insurance is an additional layer of protective insurance that can be purchased by the owner of the cargo being shipped. Whether the value of the cargo exceeds the transporter’s insurance limits, or the cost of optional insurance offered by the transporter is not reasonable, supplemental insurance can serve to bridge the gap between available or existing insurance coverage and the commodity’s declared value.
While many different types of insurance exists, be sure to select a carrier with sufficient cargo insurance from a solid primary insurer. When you work with ReliancePartners.com your freight will have primary cargo insurance of up to $1,000,000. If the value of your goods exceeds $1 million, we will work with you to make available whatever amount of cargo insurance you need. Reliance Partners routinely transports exceedingly valuable commodities, and without a doubt has the appropriate levels of experience – and insurance – to safely and securely complete your move.
Flying a plane has made a lot of bucket lists. There is just something about being able to separate yourself from the ground and become one with the skies. It has become a lot easier to become a pilot as it is easier to find someone who offers flying lessons. The problem, however, is to find a plane nearby for an affordable price nearby. Some would-be pilots have headed to auction sites to find such a plane and a lot of pilots have found their plane. This has created its very own problems, especially when it comes to shipping the plane to the preferred airfield of the new owner’s choice. However, this may not be as big a problem as it could be with a little planning.
How to transport a plane on a tractor trailer is a relative simple situation, especially if the person has some mechanical skill. There are a number of ways of handling the situation, depending on the planning skills of the person. The simplest possible way is to just tie the plane down on the trailer, place chock blocks on the wheels, and then make sure that there are no low overpasses between the location where it was picked up and has to be delivered. While this requires the least mechanical talent, it requires mapping out a path that is as straight as possible, has almost no overpasses, and has as little traffic as possible. There are fortunately other options.
Another option requires a little more mechanical skill on both ends. The idea is to reduce the plane to a certain number of component parts and then ship those parts. The usual pattern is to remove the wings and possibly the wheel assemblies. This is safer for the plane on a number of levels, especially as the plane itself is easier to secure. Rather than relying on chock blocks to keep the plane from moving, it can be actually tied down. As the height overall has been cut down, this also helps plan routes for it to be delivered as there are fewer risks to watch out for. The only problem is making sure that is properly reassembled when it is finally delivered.
Obviously there are some potential problems. In some situations the wings and wheel assemblies have not just been bolted on but have been actually welded to the structure. For the wheel assemblies this not necessarily an issue as it can be easily kept in place. On the other hand, having the wings sticking out makes it a “wide load” and the route must be thoroughly planned. While you may be entertaining ideas that you can place the plane at an angle, the size of the plane rarely facilitates that plan of action, so it is best to plan for the worst case scenario.
When you do plan ship to a plane, pay attention to the reputation of the person shipping it in order to make sure that the plane arrives in one piece, unless of course you have made other arrangements. Given the price of a plane, a little paranoia is not a bad thing, and anything that ensures that it arrives as ordered is well worth it. You want to be able to fly it, after all, and making sure that it is taken care of is the best way to guarantee that you will in the skies as quickly as possible.
If you have a vehicle for personal or business, you are required to have insurance. This is typically paid when you register your vehicle to be on the road and is required by law. But beyond that, you do not need to get extra insurance and if you are in an accident, it can be quite costly. For this reason, many people choose to buy supplementary insurance or in the case of a business, trucking liability insurance.
Typically the extra insurance people buy is a type of liability insurance. You get a minimum amount required by law when you insure your vehicle but if you buy extra, it will cover you for any costs above that. For instance, if you are found to be at fault for the accident but the damages are more than what the minimum covers, the extra will cover those fees.
Collision coverage will cover the cost of your vehicle in the case of an accident. If your vehicle is older or not worth very much, it likely is not worth purchasing extra coverage as you will not get your money’s worth You will have to pay a deductible and that may be more than the value of your car.
Another type of insurance you can purchase is comprehension insurance. Depending on where you live or how much driving you do, it may make sense to buy it. This covers situations that were not an accident such as damage due to weather or someone stealing your car. You can buy a variety of market tools that are deterrents for theft but as with the insurance, depending on the value of your car, it may not be worth it. This type of insurance can be costly and the fee for it may be dependent on what your vehicle is worth.
Another type of insurance you may choose to purchase is personal injury protection. When you are in an accident, the costs associated with it can add up quickly. This insurance will cover any medical bills that you incur as well as anyone else who was in your vehicle. This type of insurance may be expensive and is optional but may not be available where you live.
While all these types of insurance apply for a personal vehicle, there are other insurance considerations if you are running a business. If the business vehicles are just to run around town, you should be fine with regular insurance. But if you have a shipping business, or other type of business with a fleet of vehicles, you are going to want to look into trucking liability insurance and other types of insurances that will be beneficial.
For a transportation company, trucking liability insurance will cover damage that was unintentional either to their property or others property. If a truck is pulling into a dock but accidentally hits something, the insurance will cover it. Damage covered includes other property, vehicles and pedestrians if something were to happen.
Beyond trucking liability insurance, cargo insurance is a good idea for a company that is hauling goods. If something happens to the cargo in transit, a claim can be put in and the client will be reimbursed for damage. This keeps the trucking company from having to pay for it out of their own pocket.
Another beneficial type of insurance is environmental liability insurance. If your vehicle is hauling cargo that could be toxic to the environment or contributes to pollution, you will need a special policy that will cover the cost of a cleanup if there is an accident. As with any other insurance, there are conditions to this that should be discussed with your insurance broker.
Whether you are an operator of box trucks, flatbed trucks, dump trucks or front loaders, they are typically the lifeline of a business. As such, bobtail insurance must be provided to cover the vehicle when it is not making sanctioned runs. Ensuring operators have bobtail trucking insurance in place will give motor carriers one less thing to worry about.
Bobtail is also referred as non-trucking liability insurance. It provides coverage for the owner or operator of the truck when the vehicle is not running under dispatch. When the truck is under dispatch, the motor carrier coverage is in effect. Basically, bobtail insurance covers property damage and bodily injuries caused by the vehicle’s operator when the truck is being operated outside the capacity of the lease agreement with the motor carrier.
Trips that involve taking the vehicle to a garage for servicing could also be exempt from coverage. However, the court has made the decision that in this type scenario, motor carriers could be held liable if the operator was in the process of fulfilling the maintenance terms and conditions of the independent contractor business agreement.
It is important to know the following facts about non-trucking liability insurance:
• While there is typically a $1 million maximum-value coverage, higher limits could be available
• Bobtail insurance is only in effect when the truck is being driven by the owner-operator on his or her personal time.
• It cannot be used to replace primary liability
• As a means of protecting their company, motor carriers require every leased operator to buy bobtail insurance.
Not all movement of a truck is authorized by a trucking company. As such, there will be times when commercial truck operators drive without being commissioned. Without the authorization, the truck will not be covered under the primary liability insurance of the contracting trucking. Given that millions of truck owners and operators are independently contracted, bobtail insurance is an essential part of commercial insurance policies.
An accident can happen and cause damage while the vehicle is being operated for recreational purposes. The same is true for when the truck is off the job site, at a truck stop or service station and in a number of other situations. If coverage is not being provided by the insurance policy of the trucking company during any of those times, the slack will be picked up by bobtail insurance.
Another corresponding type of commercial truck insurance is typically required for the vehicle to be fully covered. Cargo insurance and comprehensive insurance will provide coverage for other damages that occur in any rollover or accident.
Commercial Motor Vehicle Liability Coverage
Within the insurance marketplace, the terms ‘bobtail insurance’ and ‘non-trucking liability insurance’ are often interchangeably used but they do not have the same meaning. They both provide commercial motor vehicles with liability coverage and motor carriers usually require owners/operators to have either of these covers. The insurance requirements in the lease agreement with the motor carrier must be verified to determine the course of action that will be taken. Below are some examples of situations in which bobtail insurance would be chosen over non-trucking liability insurance and vice versa:
Bobtail Insurance
When the truck is used without its attached trailer, this is commonly called ‘bobtailing’ or ‘deadheading.’ If insurance coverage is required when the truck is being operated in this manner, bobtail liability coverage is the one you should purchase. This will provide coverage whenever the truck is being operated without its trailer; irrespective of whether it is under dispatch. If any damage is caused to the truck during this type of operation, it would be covered under bobtail insurance.
For instance, the coverage would apply when the tractor is driven without the trailer to the terminal and back. In addition, it would apply to travels that take place in between loads when the trailer is detached. Again, this type of liability coverage is applicable whether or not the operator was under dispatch for these hauls. Essentially, bobtail liability insurance provides wider coverage when compared to non-trucking liability insurance. It is typically more costly as well.
Non-trucking Liability Insurance
The majority of motor carriers require non-trucking liability but they are some that require bobtail insurance. Non-trucking liability insurance is less costly when compared to bobtail because it provides policy holders with a narrower coverage. In the most general terms, coverage is provided by non-trucking liability insurance when a commercial motor vehicle is being operated for non-business, personal use. Typically, non-trucking liability insurance coverage is in effect when owners/operators are not under dispatch.
Prior to purchasing either of these insurance covers, you should make sure that the motor carrier is clear on what is required of you. In addition, it is important that you consult with a professional insurance agent, who has wide-ranging knowledge of the trucking industry.
The word “fleet” comes from centuries ago when a country’s navy would be comprised of many ships or a private owner would launch several vessels to search the world for spices, cloth, and precious gems. A fleet implies several ships for commercial or military purposes rather than just a few. In later years, the term was used to refer to both naval ships and land-based vehicles operated in groups, led by a commander, such as tanks. Modern fleets also include trucks and cars like the ones run by long-haul transport companies, cleaning agencies, school districts (buses and maintenance), vehicle rental businesses, taxi firms, and large companies with many sales vehicles.
What is a Fleet in the Trucking World?
An individual or corporation buys a number of used or new vehicles for transporting goods across the province, state, or country. They take whole freight containers from shipping ports or fill their own cargo containers with goods at the airport, train station, from a warehouse, etc. The front part or cab might be fitted with a sleeping berth at the top where the driver will rest between runs unless two drivers take turns sleeping.
The firm which owns this truck and insures it has the side of each cab and/or container painted a certain color with the addition of a company name and logo to signify that it is not privately owned and belongs to a business. Trucking fleet owners are bound by certain rules as per how many hours a driver can log per run, how fast he can go, and what sorts of cargo he can carry. Computers enable them to enforce these rules.
Safety of the Fleet
It is the driver’s responsibility to maintain safe practices for the good of his boss’s reputation and to prevent him from incurring fines, but also in order to keep his job. These include obeying speed limits pertaining directly to the type of truck he is driving, not overloading the truck, and driving sober/drug-free. Bosses are supposed to subject drivers to random drug and alcohol testing, and if drivers fail they can be dismissed on the spot. The pressure is on to stay awake for many hours of sitting and staring at the road, but drivers find creative ways to manage this without taking drugs such as the use of energy drinks, sipping coffee, eating, traveling with a talkative partner, listening to music or comedy, and changing the position of their seat regularly. Getting out to move around whenever possible helps keep circulation going and improves concentration. A number of stops along any cross-country road will be designated “truck stops” because they provide adequate parking for such vehicles and are open all night.
Civic Courtesy
Fleet drivers represent their company. Most firms are obliged to post their phone number and a “How’s My Driving” sticker on the back encouraging other road users to report bad driving which is doing a firm’s reputation no good. An example would be driving too fast through a town or the use of air brakes which make a lot of noise in a small town. Multiple calls about one driver are a red flag to the employer.
Buying a Fleet Vehicle
Often the arrangement is like this: the fleet owner leases a vehicle to his employee. This person will eventually be able to purchase the truck and start his own business by running one truck or developing a fleet of his own. This arrangement is not considered financially positive in that the price agreed upon is not at or below market value but relatively high compared to a regular purchase. Drivers sometimes prefer this deal anyway because they know the truck so well. They recognize its glitches, know how to fix little issues, and they feel comfortable in their vehicle.
Shipping is one of the oldest methods used to transport goods from one location to another. For centuries, port cities have been some of the most vibrant cities in the world. This is because they are centers of trade and because they are gateways to other cities, countries and markets. The shipping industry, however, has grown in leaps and bounds throughout the last century and a half. New forms of power such as steam, coal, electricity and petroleum have made the ships themselves more efficient than ever. Trains, trucks and airplanes have made it far easier to disperse goods once they have arrived at a port. Shipping containers have changed with the industry, adapting to new demands. Shipping container dimensions have been forced to adapt as well.
The dimensions of a shipping container depend on a number of factors. It must be built to fit its contents and it must be built to fit its mode of transportation. While the term “shipping container” once implied transportation by boat, it has come to refer to any container being transported over a long distance. The smallest shipping containers are simple padded envelopes, not much bigger than a sheet of paper. These are used by individuals who want to send small packages through the mail. In general, shipping containers bought for personal use tend to be on the small side. Envelopes and boxes can be shipped cross country and delivered to private addresses in a matter of days.
Shipping container dimensions become more standardized when used for larger, professional shipments. The economies of the world have become increasingly intertwined and the transportation industry is, in many ways, the backbone of the global economy. It takes a complex network of ships, trucks and airplanes to send merchandise around the world. Most industrial shipping containers must stack easily inside a ship and must also fit on a train car or a truck bed. In order to ensure that the containers can easily move from one mode of transportation to another, the containers come in a number of standardized sizes and styles.
Standard shipping containers come in either a twenty foot or a forty foot length. The inside length of the twenty foot model is 19’4″, the inside width is 7’8″ and the inside height is 7’10” for a total capacity of 1172 cubic feet and a maximum cargo weight of 47,900 lbs. The inside width of the forty foot model is 39’5″, the inside width is 7’8″ and the inside height is 7’10” for a total capacity of 2390 cubic feet and a maximum cargo weight of 59,040 lbs.
Opentop shipping containers also come in twenty and forty foot lengths, but their tops can be easily removed and their dimensions are slightly different. The twenty food model has an inside length of 19’4″, an inside width of of 7’7″ and an inside height of 7’8″ for a total capacity of 1136 cubic feet and a maximum cargo weight of 47,620 lbs. The forty food model has an inside length of 39’5″, an inside width of 7’8″ and an inside height of 7’8″, for a total capacity of 2350 cubic feet and a maximum cargo weight of 58,710 lbs. No matter what is being shipped, it should fit within the confines of these shipping container dimensions.
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