What is freight coverage?

Freight coverage is specifically designed to protect the vessel owner from a financial loss caused by unpaid freight charges. When goods are transported via shipping, freight is the fee paid to the carrier for transporting the cargo. In scenarios where the cargo is damaged, lost, or the consignee fails to pay for the freight, the shipping company may incur significant losses. This type of coverage ensures that the vessel owner is compensated for any freight charges that are not paid as a result of these unfortunate events, thus safeguarding their financial interests in the shipping process.

The other choices refer to different types of insurance or coverage that are not specifically focused on protecting against unpaid freight charges. For instance, protecting vessels from collisions pertains to liability and damage coverage that addresses physical impacts, while covering cargo loss due to natural disasters focuses on the goods being transported rather than the operational costs associated with freight. Additionally, insuring vessels against fire damage protects the property of the vessel itself rather than addressing the issue of unpaid freight. Thus, freight coverage distinctly addresses the concern of collecting the fees for services already rendered, making option B the correct answer.