§ 1993 Cargo Partial Loss Calculation

• •Only works for cargo that is insured for partial loss.
• •The loss is based on how much the market price drops when the goods are damaged.
• •You calculate the price drop, turn it into a percentage, and apply that percentage to the total value of the shipment.

A farmer ships 100 crates of apples that are worth $10 each when fresh. When they reach the market, 20 crates are bruised and now only worth $4 each.

First you see the price drop: $10 (good apples) minus $4 (bruised apples) = $6 loss per crate. That $6 is 60% of the original $10 price. Then you apply that 60% to the total value of the whole shipment ($10 × 100 = $1,000). The insurance would pay 60% of $1,000, which is $600, to cover the damaged part.