What is the difference between cargo insurance and freight forwarder's legal liability?

Answer 1

Cargo and Freight are two terms related to transporting of goods. The purpose is same, but what is the difference between cargo and freight. Freight is a load on semi trailer. On the other hand cargo is the container that is loaded on to a ship or a plane.

It is important to note the use of the word 'freight'. The term 'freight' is used especially when you transport goods by a train or by a truck. The goods become cargo when they are transported by a ship or by a plane.

You get to hear the words such as cargo plane and cargo ship. In the same way you get to hear the words such as freight train and freight truck.

Hence it is understood that the major difference between cargo and freight lies in the nature of the locomotive by which the goods are transported. Hence it can be said that freight refers to goods or cargo carried on a train, airplane, truck or ship.

All air cargo excluding mail may be called freight. This shows that mail should be called cargo. One of the main differences between freight and cargo lies in their meanings. The money charged by the carrier or the locomotive for transporting goods is often called freight (charge). Cargo does not refer to money charged. It only refers to the goods.

Sometimes the word 'freight' may be used to describe the goods themselves. On the other hand the term 'cargo' definitely is used to describe the goods. Any product being transported is sometimes called freight. Any product being transported is always called cargo.

This shows that the word 'cargo' is used only to indicate goods and nothing else. On the other hand the word 'freight' is used occasionally to refer to product, money charged, amount payable or merchandise. Cargo is usually goods carried by a larger vehicle whereas freight is usually goods carried by a smaller vehicle like the truck.

Answer 2

Cargo insurance covers the value of goods being transported against damage or loss, whereas freight forwarder's legal liability covers the forwarder's legal responsibility for the cargo during transport. Cargo insurance is typically purchased by the shipper to protect their goods, while freight forwarder's legal liability is a legal obligation of the freight forwarder for the cargo in their care.