Author Name: Emma Hau – Marketing Analyst at FreightAmigo｜7/3/2022

Connect digital logistics: Export credit insurance services To increase operation efficiency

FreightAmigo, Asia’s first one-stop supply chain finance platform, is pleased to announce the adoption of the Hong Kong Export Credit Insurance Corporation (HKECIC)‘s “Export Credit Insurance” (ECI) service to provide Hong Kong exporters with upgraded comprehensive export credit insurance protection. Different from cargo insurance, the subject of insured interest under “Export Credit Insurance” (ECI) is not referring to the goods but the accounts receivable. As global markets and trade are affected by events such as the US-Mainland China trade war, European debt crisis, and COVID-19 pandemic, purchasing ECI can help exporters alleviate the losses caused by the increased risk of bad debts.

Help to reduce the risk of bad debts as global trade markets crisis emerges

In response to the increasing demand for export credit insurance in recent years, FreightAmigo has partnered with HKECIC to add an ECI option into its platform, making it possible to arrange insurance with just one click and greatly simplifying the entire process. ECI does not require a minimum revenue. Any company with a valid Business Registration Certificate and export business in Hong Kong is eligible to apply.

Breakthroughs In The Traditional Logistics Industry With Technologies, Backing SMEs

Traditionally, international freight logistics arrangement requires a lot of manpower and time to process. Exporters are required to prepare a large number of shipping documents, such as commercial invoices and bills of lading, to arrange cargo insurance and trade finance. Generally, the average number of documents that exporters need to process is 480 per year.

Ivy Tse, Founder and Director of FreightAmigo, said, “On average, a company processes 480 shipping documents manually. Given that each document takes 30 minutes to process, it means it takes 30 working days to complete processing. The platform provides digitized documents and automizes complex processes, which saves time and costs for customers, and also effectively reduces losses caused by manual errors. Reducing errors on shipping documents will definitely allow merchants to process each trade more smoothly.”

Streamlining insurance procurement process with technology to provide one-stop insurance and logistics services 

Trade risk management is a hot issue among exporters recently. Ivy Tse, Founder and Director of FreightAmigo added, “International freight logistics is severely hindered by COVID-19, FreightAmigo’s technologies in logistics and finance are playing a role to make trade easier in such extraordinary times, making trade simpler and easier. We are honored to collaborate with HKECIC, offering protection up to 90% indemnity to our exporters, greatly reducing their supply chain management risks.”

Mr. Terence Chiu, Commissioner of HKECIC, said, “HKECIC has been keeping abreast of market development and is committed to upholding its mission of facilitating export trade and supporting local exporters. Notwithstanding the numerous challenges such as global financial crises, COVID-19 pandemic and the disruption of global supply chain, HKECIC stands by the Hong Kong’s export trade sector as its solid partner, assisting exporters to overcome the hurdles. This collaboration with FreightAmigo will, like always, help companies overcome different challenges and seize export market opportunities.” 

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Extend Reading:
How To Purchase Export Credit Insurance Online To Reduce Bad Debt Losses
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