GlossaryEN1 min readUpdated: Jun 24, 2026

Fair Value Reefer Cargo Insurance

When a reefer cargo claim is settled, the valuation basis determines how much compensation is actually paid.

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Last updated: 24 June 2026Published: 19 June 2025

Source: https://www.logistics-insurance-expert.com/fair-value-reefer-cargo-insurance

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Logistics Concept

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Definition & Explanation

When a reefer cargo claim is settled, the valuation basis determines how much compensation is actually paid. A fair value approach calculates the loss against the market value of goods at the time of damage, not the original invoice price—a critical distinction for perishables such as fish, cut flowers, or fresh produce, where a cold chain failure can eliminate most of a consignment's commercial value within hours. To avoid drawn-out disputes, insurers and cargo owners agree in advance on transparent benchmarks such as destination market prices or recorded auction results. This should not be confused with the IFRS accounting concept of fair value, which uses the same term in an entirely different context.

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Fair Value Reefer Cargo Insurance

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