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Declared Value (DV) - The Waggon Freight Dictionary

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» Declared Value (DV) - The Waggon Freight Dictionary

Last Updated: November 21st, 2024

Key takeaways:

Declared value is what you say your shipment is worth, which affects how much money you can get if it gets lost or damaged.
Declared value coverage and shipping insurance differ; declared value limits carrier liability, while insurance offers more comprehensive protection against risks.
Packing your items well, choosing reliable shipping companies, and using tracking services help ensure the safe and timely delivery of packages.

Understanding Declared Value In Freight Shipping: A Guide By Waggon

Shipping goods can take a lot of hard work.

One key fact is that the declared value of a shipment impacts its safety.

Waggon protects your shipments by effectively utilizing declared value coverage for your business.

The declared value is a safety net for your shipped goods, setting the reimbursement amount if lost or damaged.

It differs from insurance by focusing on the shipper’s stated item value rather than potential risk coverage.

Contact Waggon for a no-obligation quote to fulfill your shipping and logistics needs.

Our team is here to streamline your shipping process and ensure your goods are transported efficiently and securely.

Defining Declared Value - The Freight Dictionary

Declared Value Definition

Declared value is what a shipper claims their shipment is worth to the freight carrier.

It sets the amount for which your goods are insured during transport.

It tells the carrier, “This is my item’s value.”

Declared value plays a crucial role in shipping and logistics — boosting the standard liability limits carriers usually have.

If your package gets lost or damaged, the declared value determines how much you can claim from the carrier.

Declared Value ensures your goods have protection tailored to their worth.

Difference Between Declared Value and Insurance

Declared value and insurance coverage seem similar but serve different purposes when shipping goods.

Declared value reflects the cost to the shipper, setting a carrier’s maximum liability if a package is lost or damaged.

This means declaring a higher value can lead to higher shipping rates, yet it does not guarantee total compensation for losses beyond this declared amount.

On the other hand, insurance coverage offers broader protection against loss or damage during transit, functioning as an additional safety net that goes beyond declaring value.

For important shipments, relying solely on declared value may not suffice due to standard limits and limitations.

Insurance provides an extra layer of financial safeguarding against unforeseen events like natural disasters or accidents during handling.

Partner with Waggon for the best logistics solutions customized to meet your needs.

Let us streamline your shipping process and help you transport goods quickly, securely, and efficiently.

Frequently Asked Questions

What Should I Put for Declared Value?

Choose the declared value based on your shipment’s actual worth.

This means setting a price that mirrors what you believe the contents are worth.

Consider how much it would cost to replace your items should they get lost or damaged.

If buying new isn’t straightforward, look at receipts, purchase agreements, or market value.

Remember, this number guides carriers on liability, influencing potential recovery amounts during claims.
What Is the Difference Between Customs Value and Declared Value?

Customs value and declared value differ in crucial ways.

The customs value is the worth set by customs officers it’s what they think your shipment is valued at for duties.

This includes the total price of all goods being imported.

On the other hand, declared value comes from you, the shipper.

It’s what you claim your package is worth when sending it through carriers.

How to Determine and Enter Declared Value in Shipping

Figuring out and entering the declared value in shipping is simple.

First, calculate your item’s worth — how much you paid or how much it would cost to replace it.

Then, when you’re filling out a shipping label online, look for a field named “Declared Value” and put in that number.

This step ensures your goods have a set value in case anything happens during transit.

Calculating the Cost of Declared Value

To determine the declared value’s cost, decide your shipment’s worth.

You can use either the cost price or the retail price.

Your choice depends on what you’re shipping and how much risk you will take.

Once you’ve set a value, calculate fees and your carrier’s rates based on this amount.

Next, consider whether you need additional insurance beyond the carrier’s maximum value limit.

Many companies offer more coverage if your shipment exceeds most carriers’ maximum declared values for valuable goods.

This step is crucial for shipping expensive items safely — ensuring peace of mind and financial protection during transit.

Experience the efficiency of Waggon’s supply chain and logistics services.

We deliver your freight on time, every time — Contact us today to ensure your shipping needs are met with precision and reliability.

Maximizing Protection with Declared Value in Freight Shipping

Understanding and utilizing declared value in freight shipping is crucial for safeguarding your shipments.

By accurately declaring the value of your goods, you set the foundation for compensation in case of loss or damage during transit.

Declared value is not just a number — it’s a strategic decision that impacts the protection level of your freight and influences potential recovery amounts.

With Waggon’s expertise in navigating these complexities, businesses can ensure that their logistics needs are met efficiently and their goods are protected adequately.

Choose Waggon to safely and efficiently manage your shipments.

Take the first step towards resolving your logistics challenges by requesting a quote today — our experienced team is ready to assist you.

Frequently Asked Questions

What Does Declared Value Mean in Freight Shipping?

Declared value for freight shipping is the dollar amount a shipper states their goods are worth, noted on the bill of lading.

If loss or damage occurs, this figure matters — it’s what you’re claiming your shipment’s worth.
Why Is Declaring the Correct Value Important?

Correctly declaring your shipment’s value ensures you can claim its replacement cost if lost or damaged.

Be wary — a false declaration can lead to insurance and customs duty issues.
How Do Third-Party Insurance Providers Fit Into This?

Third-party insurance providers offer extra coverage beyond the declared value.

They step in when carriers’ maximum coverage isn’t enough for your shipment’s worth.
Can I Declare Any Amount I Want?

Not exactly.

The terms and conditions often set limits on what you can declare.

Plus, paying more in insurance for higher declarations means weighing costs against potential risks.
What Happens If There Is a Discrepancy Between My Declared Value and Actual Loss?

If there’s a gap between your declared value and the loss that occurred, expect some back-and-forth over compensation amounts — another reason accurate declarations matter!

Written By:

Robert Rajfer

Robert has worked in the supply chain / logistics industry for the past five years. Robert spent the first three years of his career at C.H. Robinson (NASDAQ: CHRW) and the following years at Flock Freight (backed by SoftBank, Google Ventures, and Signal Fire).

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Our team of logistics experts has the knowledge and experience needed to serve businesses of all sizes.

Waggon proactively offers custom solutions that align with shippers’ specific needs — not the other way around.

By transcending conventional norms, we deliver on client expectations like no other.

Ready to ship with Waggon?

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Declared Value (DV) - The Waggon Freight Dictionary

Key takeaways:

Understanding Declared Value In Freight Shipping: A Guide By Waggon

Table of Contents

Defining Declared Value - The Freight Dictionary

Difference Between Declared Value and Insurance

Frequently Asked Questions

What Should I Put for Declared Value?

What Is the Difference Between Customs Value and Declared Value?

How to Determine and Enter Declared Value in Shipping

Calculating the Cost of Declared Value

Maximizing Protection with Declared Value in Freight Shipping

Frequently Asked Questions

What Does Declared Value Mean in Freight Shipping?

Why Is Declaring the Correct Value Important?

How Do Third-Party Insurance Providers Fit Into This?

Can I Declare Any Amount I Want?

What Happens If There Is a Discrepancy Between My Declared Value and Actual Loss?

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