The Importance of Insurance in Maritime Trade of Chilled or Frozen Cargoes

Purpose: The purpose of this article is to present insurance options for chilled and frozen cargo carried by sea and to discuss insurance clauses commonly used and specific to this type of cargo. Design/Methodology/Approach: To achieve the goal several research methods were applied: desk study research, exploration method, critical and comparative analysis. Findings: Global reefer freight volumes reached 297 million tonnes in 2021, of which seaborne reefer trade accounting for 46% of all global trade in perishable goods. With a high risk associated with the maritime transport of refrigerated cargo, and given its high value, it is reasonable to conclude an insurance contract. The insurance clauses most commonly used in the transport of chilled and frozen cargoes have been developed separately for frozen/chilled food and for frozen/chilled meat. There are now both old, well-known sets of clauses dating back to 1986 (for frozen cargo only) and the most recent from 2017 (for chilled and frozen cargo). Although they differ in the scope of insured risks and exclusions, they primarily provide protection against the most relevant risks for this group, i.e., temperature fluctuations or failure of refrigeration equipment. The most comprehensive protection is provided by the Institute Frozen/Meat Extension Clauses (A) 01/03/2017 and the Institute Frozen/Meat Extension Clauses 01/03/2017. The newer version of the clauses does not provide protection against a greater number of risks, but the changes made have adapted the wording of the clauses to be in line with the 2009 universal Institute Cargo Clauses and, having regard to court case law, modified some provisions to avoid discrepancies in interpretation. Practical Implications: The results of the research can be used by exporters and importers of chilled/frozen food and meat transported by sea, as understanding the key insurance clauses can help them structure their insurance cover to fully meet their needs. Originality/Value: Given the scarcity of information on the insurance specifically designed for chilled and frozen cargo, each study in this field can be considered valuable.