Financial services
Insurance
The companies that perform transportation and forwarding activity are responsible for the loss, shortage, damage (corruption) of the goods possessed by the client. However, the forwarder also bears responsibility before the client in complying with the same rules which the appropriate carrier is responsible to. For example, a carrier’s responsibility in international transportation is restricted by the following international conventions:
- In respect to aviation transportation, this sum equals approx. 20 Euro per kilo of freight;
- In respect to motor transportation – approx. 10 Euro per kilo of freight;
- In respect to sea transportation – approx. 3 USD per kilo of freight
To provide transportation operators with financial stability, it is necessary to insure the liability of the carriers and forwarders. Such insurance is often obligatory. But the forwarder’s client should clearly realize that such insurance protects first of all the carrier and is not created to help the freight’s owner. Moreover, the carriers are released from the responsibility, if the loss, shortage, or damage of freight has been caused by circumstances that they could neither foresee nor prevent, and which were beyond their control.
Moreover, it often takes several months to obtain compensation from the carrier. That is why Major Logistic independently insures the freight of its clients in the amount of their complete cost in addition to the insurance for its own liability and for the requirement to insure the partner carriers’ liability. “Capital” Insurance Group is the partner of Major Logistics in insurance, which holds first place by volume for all the insured freight in the RF.
A long-term partnership with “Capital” JSC op., allows us to decrease the term for the processing of claims for insurance events. The term of application processing takes usually no longer than 3 weeks. As soon as a positive reply has been received from the insurance company, Major Logistics compensates the client for 100% of the insurance amount at its own expense in order to avoid waiting for insurance compensation. As a result, the term of waiting for insurance compensation to the client rarely exceeds 1 month.
Credit
Major Logistics offers credit services to its regular customers. Credit is granted for a term of 1-6 months, and is used by the clients for the purchase of goods from foreign suppliers. The interest rate on the credit is discussed for each specific case, but it amounts on average to 14-18 per cent per year. The essential condition for the provision of this service to the client is the usage of Major Logistics as the carrier of the goods in question, for purchase of which the credit has been granted.
