Promotional goodie packs are another good example of the well-travelled promotional product. For a holiday promotion, the buyer might buy the sunglasses from the Seychelles, the hats from Hong Kong, beachmats from Brazil and the T-shirts from Turkey. All these will be imported to a fulfilment house, placed inside a bag from Bognor … and off they all go again to their final destination, which could be … anywhere!

As a specialist supplier of fulfilment and distribution services to the promotional industry, Pace Network is often involved in these convoluted and complex campaigns. “We thrive on them,” says Malcolm Harding, director, Pace Network. “And, we are often called upon to deal with the Customs clearance and Import and export documentation (ATA Carnet plus Legalisation, Letter of Credit and licence applications) that is very much a part of international freight - bring on the complex forms and complicated calculations!”

But one thing that promoters often overlook is insurance, says Harding. If goods are being shipped, they assume the shipper is insuring them, or that their company insurance will cover them, and it's only when the unthinkable happens, they realise that's not so. And, it's not just about insuring for loss or damage, he adds: “Goods ordered for a short-term event, such as a launch or open day, are often worthless the next day, so insurance for delay is also a consideration.”

Harding has put together the following watch points that could save you angst and anguish:

1. If you buy product on either an ex-works or FOB basis (FOB = Freight on Board, i.e. you pay for everything after it has been put on the ship or plane at the port of departure), then the risk transfers to you at that point of the journey.
2. Even if you buy on a CIF basis (CIF = Cost, Insurance and Freight, i.e. the price includes the freight to the arrival port and insurance), it would be wise to obtain written evidence of the cover provided from your suppliers' insurers. Cheap insurance rates may suggest exclusion clauses in the policy that leave you exposed in the event of a claim.
3. Always try and insure your goods on a doorto- door basis so that your product is adequately covered through each leg of the journey, as this may involve not just air or ocean, but road haulage at either end of the journey as well.
4. Breaks in the journey (i.e. temporary storage in a warehouse prior to final delivery) may also mean the final leg of the journey is not covered, nor whilst the goods are stored. Additional cover may have to be arranged, therefore clarification should always be obtained if you envisage this type of occurrence en route.
5. It is essential that any product is adequately packed to withstand both the method of transport and the rigors of the journey as claims for damage caused by inadequate packing could result in the loss adjuster rejecting the claim and leaving you severely out of pocket.
6. Your insurance premium will be based on the purchase value of the goods plus the freight costs to destination (CIF), this total is then uplifted by 10% to arrive at a value for insurance purposes.
7. If you choose not to insure your goods, be aware that forwarders, airlines, hauliers and shipping lines all have limited liability and their terms of trading will outline the limit of their liability in the event of loss or damage. It is likely that in the event of a claim under such circumstances, you may be left out of pocket unless you specifically insure your goods under an all risks marine policy.
8. It is important when you receive goods that you make a check for damage or potential loss prior to signing for their safe receipt, as failure to clause a delivery note may affect your claim in the event of loss or damage being discovered at a later date.
9. In the event of loss or damage it is vitally important to advise, in writing, as soon as possible, all interested parties of your intention to claim. Time limits for claims can sometimes apply and failure to 'get the ball rolling' could in certain circumstances lead to a claim being 'time barred' and therefore rejected. Consequential loss will not be covered under a standard policy but may be obtainable for an additional premium depending on the circumstances, so always obtain advice from your broker beforehand.
10. The vessel Napoli, which was damaged off the coast of Devon, is a good example of the risk involved. Should 'general average' be declared on this major incident, the owners of goods salvaged may have to contribute to those who have suffered losses.

If you insured your undamaged cargo then your insurers are likely to pay your potential contribution to the disaster, however those who haven't may need to pay a cash deposit before they can obtain release of their container(s). In any event it may take many months before any settlement claims are finalised.