HKECIC Trade with Confidence Series: EP3 Export Credit Insurance in Logistics Industry

As an important international logistics hub in the region, Hong Kong is home to many logistics and distribution centres that take advantage of the well-developed intermodal cargo transport modes by air, sea and land. Often, Hong Kong freight forwarding companies carrying on business with customers outside Hong Kong on credit terms may face non-payment risks. Export credit insurance facilities covering both commercial and country risks can help mitigate these non-payment risks. 

In the credit insurance market, the Freight Forwarding Services Policy (FFSP) is designed for Hong Kong freight forwarding companies in the logistics industry. The FFSP covers freight forwarding and related services to overseas clients, local exporters who are carrying on business with customers outside Hong Kong, and local freight forwarders who are performing services for Hong Kong exporters. Freight forwarding and related services rendered, which require payment by the client within a period of not exceeding 180 days after the completion of services rendered are covered. The facility covers not only exports shipped and re-exported from Hong Kong, but also those transported directly from suppliers' countries to their destination without passing through Hong Kong. The indemnity provided can be up to 90% of the loss incurred.[1]

Major Benefits of Export Credit Insurance in Logistics Industry

•    Percentage of Indemnity as high as 90%

•    Credit Risk Assessment

•    Collateral for Financing

•    Sharing up to 90% of Your Expenses for Pursuing Debts

Free credit assessment service
To assist enterprises in coping with risks while expanding their business around the globe, HKECIC provides 10 free credit assessment service that covers over 200 countries/markets to Hong Kong exporters. For the application form of this offer, please visit the link here.

This article is provided by the HKECIC. For more details about export credit insurance solutions, please contact the HKECIC at marketingunit@hkecic.com. 

Reference:
[1]. Hong Kong Export Credit Insurance Corporation - Policies & Services
https://www.hkecic.com/en/freight_forwarding_services_policy 

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