As the seller, you are still responsible for the inland transit to the port. During tropical storms, it's not uncommon for flash floods to occur, and roads and highways become overtaken by rising waters. Carriers are not liable for acts of God so cargo owners may not be able to recover a loss in this scenario. Speak to your insurance provider about coverage for FCA or FAS shipments as many cargo policies can or are able to offer this coverage. 

In addition to having to cover the goods up to the port as in the above scenario, FOB and CFR requires you to cover the cargo until it is loaded onto the vessel. This includes while the cargo is sitting on the dock waiting to be loaded which is when the cargo is probably most vulnerable to tropical storm or hurricane strikes. Recent storms caused significant damage to cargo awaiting loading through storm surges, flooding of the docks, damage from wind, etc. Some cargo owners were insured, but many were caught off guard and were not covered for their losses. Speak to your insurance provider about FOB and CFR coverage.

After Katrina, many were surprised to find the damage to their houses and businesses were not covered by their insurance because flood damage was excluded. It is important to speak with your insurance provider to determine if flood coverage is available in your area. Coverage for your cargo can be provided through Bailee and/or Warehouse Storage coverage and your building and company owned property through your Commercial Package Policy. If coverage for flood is available at your location, it is prudent to entertain a quote and weigh the cost-benefits of securing such coverage. While the premium may seem like an unnecessary cost at the time, having the coverage will seem well worth it after the devastation of a flood.  

Risk management extends beyond simply insuring your facility and the cargo stored inside. Creating a plan to prepare for an impending hurricane removes much of the chaos and uncertainty of such an event, and provides you and your employees with a set list of tasks to best protect your interests from a storm. Plans will need to be tailored to your specific needs and exposures, and can include moving as much cargo as possible inside, tarping cargo that cannot be stored inside, ensuring cargo is stored at least four inches (4") off the ground, boarding windows and ensuring/protecting access to generators for temperature sensitive goods, etc. Ultimately, the top priority in any storm or natural disaster is the safety of yourself and your employees. Having a game plan can speed up your preparation and allow everyone the time to get to a safe place to wait out the storm. 

Protect your financial interests and purchase "All Risk" cargo insurance whenever possible for goods in transit and at your facility(ies). Avoid unnecessary loss and worry by being prepared and protected...both physically and financially.