Cargo Insurance Post Assessment

A General Average guarantee is a financial security that must be provided in order to release the freight. It ensures that all parties involved in a maritime voyage will share the costs of any losses or damages incurred during the journey. By posting this guarantee, the freight can be released, indicating that the responsible party is willing to cover their share of potential costs. Therefore, the statement is true.

The law of General Average is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. This means that if a ship or cargo needs to be sacrificed in order to prevent further damage or loss, the costs of that sacrifice are shared among all parties involved in the venture. This principle promotes cooperation and fairness among the parties, as it distributes the burden of loss equally.

The premise of the Hague-Visby rules is that the carrier has a far greater bargaining power than the shipper. These rules were established to protect the interests of shippers by setting out certain rights and obligations for carriers in international maritime trade. By recognizing the carrier's stronger bargaining position, the rules aim to ensure that shippers are not unfairly disadvantaged in their negotiations and transactions with carriers.

Late Arrival is not a listed coverage under FPA. The other options, Fire or Explosion, Jettison, and Sinking or Stranding, are all listed as coverages under FPA. Late Arrival does not fall under any of these categories and therefore is not included as a coverage.

The recovery limit per package designated by the Carriage of Goods by Sea Act (COGSA) when a carrier/NVOCC is negligent is $500. This means that if the carrier or NVOCC is found to be negligent in handling the goods and causing damage, the maximum amount that can be recovered per package is $500.

The correct answer is WA, which stands for Washington. The abbreviation "WA" is a term that adds "perils of heavy weather" to the FPA (Free of Particular Average) coverage. This means that the coverage includes protection against damages caused by severe weather conditions.

The single largest cause of cargo loss is theft on land. This is because theft on land can occur during various stages of transportation, such as when cargo is being loaded or unloaded, or when it is being stored in warehouses or distribution centers. Additionally, theft on land can be carried out by organized crime groups or individuals with insider knowledge, making it a significant risk for cargo loss.

The Hague-Visby Rules is a set of international rules that govern the international transportation of goods by sea. These rules were established to provide a standardized framework for the rights and responsibilities of both shippers and carriers involved in maritime trade. The Hague-Visby Rules outline various provisions related to the liability of carriers, the obligations of shippers, and the rights of cargo owners. They aim to ensure fair and consistent practices in the carriage of goods by sea and promote the protection of the interests of all parties involved.

The Hague-Visby Defenses are a set of exceptions or defenses that can be used by carriers in maritime law to limit their liability. These defenses include Act of God (unavoidable natural events), insufficiency of packing (poor packaging by the shipper), and quarantine restrictions (imposed by authorities). However, attack by pirates or other vessels is not considered one of the Hague-Visby Defenses as it is not related to the carrier's liability or actions.

Lack of funds is not an example of a typical exclusion to all-risk coverage because it does not fall under the category of potential risks or causes that are typically excluded from coverage. All-risk coverage typically covers a wide range of risks, including accidental damage, theft, fire, and natural disasters. Lack of funds is a financial issue and not a risk or cause that would typically be excluded from coverage.