Reefer breakdown

Reefer breakdown is a failure of a refrigerated trailer's temperature-control system causing cargo loss or contamination; cargo insurance often excludes breakdown losses without a specific endorsement.

Common failure modes include compressor failure, fuel exhaustion, electrical faults, and door-seal failures. Reefer trailers carry their own fuel for the refrigeration unit; running out is a frequent cause.

Standard cargo insurance often excludes losses from reefer breakdown unless a specific reefer-breakdown endorsement is in place. Reading the carrier's certificate of insurance for the endorsement is part of reefer-load vetting.

Why this matters for freight brokers

Reefer brokers see materially higher cargo claim frequency than dry-van brokers. The breakdown endorsement is the line item that determines whether a temperature-failure loss is covered.

Related terms

• Contingent cargo insurance — Contingent cargo is insurance that responds when a motor carrier's cargo coverage fails to make a shipper whole for cargo loss or damage on a load arranged by the broker.