Definition:Warehouse to warehouse clause
🏭 Warehouse to warehouse clause is the provision in cargo insurance policies that extends coverage from the moment goods leave the seller's or shipper's warehouse at the place of origin until they reach the buyer's or consignee's final warehouse at the destination. Rather than limiting protection to the ocean transit alone — the historical norm in early marine insurance — the clause ensures that inland transport legs, intermediate handling, loading, transshipment, and discharge are all encompassed within a single, continuous period of cover. The concept is embedded in the transit clause (Clause 8) of the Institute Cargo Clauses and is recognized as standard practice across global cargo markets, from London to Asia-Pacific hubs.
🔄 In operation, the clause removes the need for a shipper or consignee to arrange separate inland transit policies to plug gaps between the warehouse and the port at each end of the journey. Coverage commences when the goods first move from the named origin warehouse for the purpose of the insured transit and continues through all ordinary stages — trucking to port, loading aboard the vessel, ocean carriage, discharge, customs clearance, and final delivery. Termination is governed by whichever event occurs first: delivery at the final destination warehouse, delivery to an alternative storage location chosen by the insured outside the ordinary course of transit, or expiry of a defined number of days (commonly 60) after discharge from the vessel at the final port. Any deviation, delay, or change in voyage beyond the insured's control triggers held-covered provisions rather than an immediate loss of cover.
📌 For businesses operating complex global supply chains, the warehouse to warehouse clause is indispensable. Without it, goods would be uninsured during vulnerable inland segments — precisely where theft, handling damage, and road accidents are frequent. Brokers advising importers and exporters routinely confirm that this clause is operative and that the defined origin and destination warehouses are accurately described, since claims can hinge on whether a loss occurred within the ordinary course of transit. In markets such as China and India, where goods may travel hundreds of kilometers overland before reaching a port, the breadth of the warehouse to warehouse principle is especially valuable. Underwriters, in turn, price the full transit exposure — not just the ocean leg — recognizing that the clause materially expands the risk window.
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