The thing that surprised me the most about it is that FedEx didn't just pay them the 400k for lost shipment. They had all the proof that it was lost, all that Fedex had was a signature of someone who doesn't even work at their fulfilment centre. Even after their "higher ups" got involved all that FedEx could do was "huh, sucks to be you I guess?" Does freight shipment not have insurance? What's going on here?
It is nicer for the shipper to decide the value and pay the corresponding price for that. Because you need to know the replacement value of that lost item. This is dependent on all kinds of factors.