SHIPPING ALERT! Courtesy of FACTS
Misconceptions Regarding Excess Declared Value When Shipping Via Common Carrier
One common carrier has had a reputation for safe handling and insuring shipments to high values–important for art and keepsakes. We investigated and this turned out to be untrue.
FACTS volunteers took a quick survey of three carriers. A courteous UPS representative pointed out the obvious–these companies are regulated by the ICC and PUC as Common Carriers–that is, they are licensed to handle common carriage items–the emphasis here is on the word common. Art works are considered extraordinary items. Here’s the catch. The amount of “declared value” you put on the way bill for any given shipment is not necessarily insurance, nor does it mean your shipment is protected. You have simply given the carrier permission to charge you their stated rate for the excess valuation.
The UPS representative stated that their general policy was to honor the declared value, if substantiated, and take care of the claim.
The FedEx representative stated that their drivers, when picking up a shipment, will tell you that there is a $500 maximum declared value on extraordinary items and that all art is extraordinary. He also said that if you want real insurance, they will refer you to an affiliated company, Transglobal Insurance Company. We did not speak to anyone at Airborne Express.
The following information is copied directly from the service guides cited. Before you ship your next package, read the fine print!
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Airborne Express 1994/1995 Service Guide, Volume 1. United States Rules and Regulations
15 Application of Rates and Charges
E 1. Shipper may declare on the airbill a value for any shipment at the time of issuance, for an additional charge. A $2.50 minimum will be charged for all shipments exceeding $100 in value. For shipments exceeding $500 in value, $.50 for each $100 (or fraction thereof) of value in excess of $500 will be charged, in addition to the minimum charge.
E 2. In the absence of a Declaration of Value by the sender, Airborne Express’ standard Limit of Liability Rule 70 will apply. If additional coverage is needed above Airborne’s normal limit of $100.00 per package, the shipper must legibly note the request in the Declared Value box on the airbill.
E 3. All-risk cargo insurance, subject to the terms and conditions of the policy, is available at an additional charge. A $3.25 minimum will be charged for all shipments having an insured value up to $500. For shipments exceeding $500, $.65 for each $100 (or fraction thereof) of value in excess of $500 will be charged, in addition to the minimum charge. When the shipment valuation designated by the shipper is $25,000 or more, insurance is mandatory for the entire shipment value. All-risk cargo insurance does not cover consequential or special damages. The charge for insurance is in lieu of a declared value charge.
E 6. The maximum shipment valuation for declared value is $25,000 and for insurance is $500,000.
20 Acceptability of Shipments for Transportation
B 6. Art work (i.e., paintings, prints, photographs, etchings) will not be accepted unless glass is removed from the frame and separately packed to prevent damage to art work in case of glass breakage.
D Shipments not Acceptable
The following articles will not be accepted for transportation by Airborne Express:
D 2. The following articles when shipped as personal effects or otherwise: Antiques where the declared or insured value exceeds $100 per package. Art works, including but not limited to: paintings, prints, photographs, etchings, and sculptures when the declared value or insured value exceeds $100 per package.
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Federal Express Service Guide, July 1993
Declared Value and Limits of Liability
A. The declared value of any shipment represents our maximum liability for any loss, damage, delay, misdelivery, nondelivery, misinformation or any failure to provide information. Exposure to and risk of any loss in excess of the declared value is either assumed by you or transferred to you to an insurance carrier through the purchase of an insurance policy. You should contact an insurance agent or broker if you desire insurance coverage. We Do Not Provide Insurance Coverage Of Any Kind.
B. Except as provided in paragraph (F) below, our liability with regard to any package is limited to the sum of $100 unless a higher value is declared on the airbill for the package at time of tender, and a greater charge paid as provided in paragraph (C) below.
C. A $2.50 minimum charge will be assessed for all shipments exceeding $100 in declared value. For shipments exceeding $500 in declared value, an additional $.50 will be charged for each $100 (or fraction thereof) of declared value. Declared value must be entered in whole dollar amounts.
D. Except as provided in paragraphs (F), (G) and (H) below, the maximum declared value per package in any FedEx Priority Overnight®, FedEx Standard Overnight®, FedEx Economy Two-DaySM Service, FedEx® Overnight Freight Service or FedEx® Two-Day Freight Service shipment is $25,000. If no value is declared, the declared value and our liability will be limited to the actual value or $100, whichever is less.
F. Packages containing following items of extraordinary value are limited to a maximum declared value of $500:
1. Artwork, including any work created or developed by the application of skill, taste or creative talent for sale, display or collection. This includes, but is not limited to, items (and their parts) such as paintings, drawings, vases, tapestries, limited edition prints, fine are, statuary, sculpture, collectors’ items, photographic negatives, photographic chromes, photographic slides, and any other commodity that by its inherent nature is particularly susceptible to damage, or the market value of which is particularly variable or difficult to ascertain.
2. Antiques, any commodity which exhibits the style or fashion of a past era and whose history, age or rarity contributes to its value. These items include, but are not limited to, furniture, tableware, glassware, collectors’ items such as sports cards, souvenirs and memorabilia.
Any Effort To Declare A Value In Excess Of The Maximums Allowed In This Service Guide Is Null And Void And The Acceptance For Carriage Of Any Shipment Bearing A Declared Value In Excess Of The Allowed Maximums Does Not Constitute A Waiver Of Any Provision Of This Service Guide As To Such Shipment. Even If A Higher Value Is Declared, Our Liability For Loss, Damage Or Delay Will Not Exceed A Shipment's Repair Cost, Its Depreciated Value, Or Its Replacement Cost, Whichever Is Less.
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UPS Air Service Guide Update February 1994
Commodities Handled and Restrictions Upon Service
(b) No service shall be rendered in the transportation of articles of unusual value. The maximum value or declared value per package is $50,000 and the maximum liability per package is $50,000. The maximum value and liability for a Prepaid Letter is $100.
Responsibility for Loss or Damage
Unless a greater value is declared in writing in the space provided on the UPS Pickup Record or the UPS Air Shipping Document, the shipper declares the released value of each package to be not greater than $100. For each $100 or fraction thereof of declared value per package in excess of $100, an additional charge, as stated on the current rate chart, will be assessed. Except if otherwise directed by the shipper, the carrier will remit excess valuation charges to an insurance company or companies as a premium for shipper’s interest cargo insurance for the shipper’s account and on its behalf. When the carrier does so, claims for loss of or damage to the shipper’s property will be filed and settled by the carrier on behalf of the applicable insurance company. Shippers’ Interest Cargo Policies are available for inspection at the office of the carrier. Claims not made within nine (9) months after delivery of the package or, in the case of non-delivery, within nine (9) months after a reasonable time for delivery has elapsed, shall be deemed waived. The carrier shall not be liable for any special, incidental, or consequential damages.
