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Perishable Cargo Insurance

Specialist cover for refrigerated cargo — fresh fruit, seafood, wine and temperature-sensitive goods.

About Perishable Cargo Insurance

South Africa is a major exporter of perishable agricultural products — citrus, stone fruit, grapes, deciduous fruit and seafood are shipped worldwide from Cape Town, Port Elizabeth and Durban. Perishable cargo insurance is highly specialised, covering not only standard marine transit risks but also reefer (refrigeration unit) breakdown, temperature deviation and consequential loss of cargo quality. The Perishable Products Export Control Board (PPECB) certifies SA fruit exports, and maintaining the cold chain throughout transit is essential. Insurance must cover the cargo for the entire journey, including pre-cooling, land transport to port, port cold storage, sea transit and delivery to the buyer's facility.

Commodity Examples

Citrus (oranges, lemons, grapefruit)

Stone fruit (peaches, plums, apricots)

Grapes (table and wine)

Deciduous fruit (apples, pears)

Seafood (hake, abalone, squid)

Dairy products

Cut flowers (Namaqualand/Cape)

Main Risks

•Reefer breakdown at sea
•Temperature excursion in port storage
•Delay in transit extending shelf life
•Vessel diversion
•Condensation damage
•Strike-related port delays

Recommended Cover

Institute Frozen Food Clauses (A) or (C)
Temperature deviation endorsement
Breakdown of refrigerating machinery cover
Inherent vice exclusion awareness essential
Rejection by foreign customs (some policies)

Incoterms Note

Most SA perishable exports are sold CIF or CFR — the exporter arranges insurance. Temperature monitoring records (Sensitech/DataLoggers) are important for claims.

Frequently Asked Questions

What is Institute Frozen Food Clauses and do I need them?

The Institute Frozen Food Clauses are standard marine insurance clauses specifically designed for refrigerated cargo. Clause (A) provides all-risks cover including reefer breakdown; Clause (C) provides named-perils only cover. SA perishable exporters should use Clause (A) to ensure full protection.

If my cargo is rejected at the destination port, am I covered?

Standard marine cargo policies do not cover rejection by foreign authorities unless the rejection is a direct result of an insured transit risk (such as reefer breakdown causing spoilage). Some specialist policies include rejection cover. Confirm with your broker.

How do claims work for temperature-damaged perishables?

Claims require documentation of the temperature deviation (DataLogger printouts), a surveyor's inspection at the discharge port, evidence of the damage (inspection reports), and the original cargo value. Report any suspected temperature issues immediately on arrival.

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