What is the difference between Cargo insurance and Freight insurance?
Answers
Freight vs Cargo
Goods are often imported or exported. Goods are transported to places in huge volumes through
containers. These containers can be transported through trucks, trains, planes, and ships. “Cargo” and
“freight” are the terms that are usually associated with transporting goods. Many times these terms are
interchanged because people tend to get confused in determining which is which between these two
terms. It is best to define and differentiate these two terms to eliminate the confusion. The main
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difference between these terms is the vehicle used in transporting the
goods.
The term “freight” is used when the volume of goods are loaded on a
semi-trailer on a truck or on a semi-trailer on a train. This is the main
reason why there is a freight truck and a freight train. The “freight” is also
the term used for the payment when the certain goods are transported.
However, freight can also mean a cargo being transported via truck, train,
plane, and ship. But mail can’t be considered as freight. Freight can refer
to many things. It may mean the product, merchandise, amount payable, or money charged. Most cargo
being transported can be referred to as freight.
“Cargo,” on the other hand, is usually used when the goods
are transported via plane or ship. This is the main reason
why there are cargo ships and cargo planes. Mail may also
be called cargo. The term “cargo” is used specifically on
goods only; it does not mean the payment or the money
being charged for the transport. This means any product that
is being transported is always called a cargo. Containers are
usually used in transporting the goods called cargo.
Cargo and freight have a lot in common. They are terms
used for transporting goods. However, they also have
significant differences. The differences between them are on the locomotive used for the transport. Also,
freight can be used as a term for the payment of the transport.
SUMMARY:
1.Even though both have the same purpose of transporting, “freight” refers to goods being transferred on
trucks and trains while “cargo” refers to planes and ships.
2.Freight is also referred to as the charge or payment of the merchandise being transported while
“cargo” refers to the goods or the products and nothing else. Cargo does not mean the money being
charged for the transport.
3.Only the mail that is being transported on trucks, trains, planes, and ships is the only thing that can be
called freight. This means mail are referred to as cargoes.
4.Because cargoes are usually transported via plane and ships, there are such things as cargo planes
and cargo ships. On the other hand, freight is being transported on trucks and trains, hence the term
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freight trucks and freight trains.
5.The locomotive used for the transport is the major difference between the freight and the cargo;
however, the freight is also known as the cargo being transported via the plane, the ship, the truck, or
the train.
Cargo insurance and Freight insurance are one and the same.
Both relate to insurance of cargo or freight, against risks that it may face during shipment from one point to another, from natural or man-made causes. It covers transport by land, air or sea. Insurance covers risks of physical loss or damage to cargo during shipment.