06/16/2021
A Risky Cargo Tale
If you are an international commercial shipper, do you always need cargo insurance for your ocean cargo? The short answer is ‘yes’. Everyone who sells cargo insurance knows that. For those who do not provide cargo insurance, there are some ‘no’ answers too. Why ‘no’ for some? Because some people say ‘no’ to everything. It’s what they do.
Would you like to upsize that for sixty-five cents? “No.”
Would you like the lifetime extended warranty for a buck? “No.”
Would you like to round up to the nearest dollar to donate to an unquestionably worthy cause? “No.”
Would you like to chip in for Old Joe’s retirement gift? “No.”
Would you like cargo insurance for your shipment? “No.”
For some people the word ‘no’ is not an answer to a question, it is an involuntary reaction. Much like the quick flinch reaction when a bug flies near our eye, we cannot, not, flinch. It is similar for those stuck on the involuntary reaction of ‘no’.
Why are some people stuck on no? It is simple, ‘no’ is the safe answer most of the time. From an early age we learn saying ‘yes’ sometimes creates a risk for us. ‘Yes’ is often open ended whereas ‘no’ is closed ended. Once someone says ‘no’ it’s over. When you say ‘yes’ sometimes it is only the beginning.
Community Theater Organizer: “Jimmy, would you like to join the Community Theater?”
Jimmy: “Yes, sure.”
Community Theater Organizer: “Terrific, strip down to your birthday suit. You are starring in our production of Oh! Calcutta!”
You bet, the word ‘yes’ just led to Jimmy being thrust into taking his clothes off on stage. That is where ‘yes’ can take you. One minute you are warm, safe, and comfortable, the next minute the word ‘yes’ catapults you into new territory taking away your comfort as well as your clothes. It’s why Jimmy throughout his career never again said ‘yes’. He became a ‘no’ person. He shuddered at the thought of being made uncomfortable again, ever. He also never again wanted to explain the effect chilly stage temperatures had on him. All these years later, not even knowing the cost and benefits, the thought of adding cargo insurance made Jimmy feel uncomfortable, so he never bought it.
The fear of being uncomfortable is often worse than the feeling of being uncomfortable. This fear, towering to some, holds ‘no’ people back, both personally and professionally. In a world devoid of ‘yeses’, there is no discomfort, but there is also no growth. For fear of failure, humiliation, or other discomfort, a person can ‘no’ themselves to not living their life, or enjoy a career, they may genuinely want. Some ‘no’ people can even rob themselves of the opportunity of purchasing cargo insurance.
Come on, are you really surprised I went there? You really thought my next book was going to be a self-help book for ‘no people’? If that were the case, I would have certainly inserted the words and music in the last paragraph from that haunting Sarah McLachlan song titled ‘Angel’ played during the ASPCA commercial that made everyone cry. How can anyone look at photos of abused animals combined with Sarah McLachlan’s singing and not cry? You didn’t cry? Are you sure you didn’t cry? You must be channel changer avoiding your own emotions. The rest of us cried. You should see someone.
So yeah, Jimmy being a ‘no’ person, he never has bought cargo insurance. He is also a channel changer. Poor Jimmy, he is in denial. What Jimmy did not, and will not, realize, is cargo insurance for most containerized cargo is inexpensive. I said inexpensive because every training session I have ever attended screamed never call your product ‘cheap’. It’s not cheap, it is ‘inexpensive’. And your product does not have a price, it is an ‘investment’. In cargo insurance’s case, the investment is indeed inexpensive. If the price was cheap, it would hold little value. But since the investment is inexpensive, this stuff is like gold.
So how cheap is inexpensive when it comes to insuring most normal containerized cargo? How about a fraction (much less than 1%) of the total value? Better yet, how about a fraction of the 1% of the total value? Yep, that is cheap. When you get your cargo insurance, you will realize the cargo insurance was the least cost, and least cost by a lot, of all the moving parts of the transportation itself.
Will cargo insurance protect your cargo? Heck no, it isn’t some sort of force field like on Star Trek. Geez, grow up, it is insurance. It protects you from the financial loss related to your freight losing its value due to a covered peril, but your cargo will still be screwed, it is just you won’t be. If your container full of cargo has a value of $75,000USD, which you have spent on it, if you can insure it for less money than you spent on dinner out to close the deal with your customer, why wouldn’t you? Don’t be a Jimmy.
There is more to cargo insurance and cargo risk than this flippant article. I used humor to get you to a place and time you may wonder about the value of cargo insurance, (did I mention it’s like gold?) and how it can be applied to your ocean container shipments. If you want more information about cargo insurance, I will be happy to review your situation and advise on, or quote, your needs. Of course, this is done free with no obligation. I will let you in on a secret, everyone in insurance quotes free with no obligation. Otherwise, it wouldn’t be called a quote. It would be called a sale. Just wanted to share that insider secret with you. Go to www.tjocargo.com for more information on cargo insurance or email me directly at [email protected] for assistance.
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