Cargo Operations and Risk Management

Cargo consists of goods transferred by marine, air, or land methods of transportation. Both historically and currently, the movement of goods by cargo ships is one of the most common ways commodities travel. Despite its commonality, the cargo shipping industry brings a set of threats that require the attention of risk management

Risk Management and Cargo Shipping

The risks associated with transporting goods across oceans run rampant. Cargo shipments are subject to threats posed by both people and nature that may delay shipments, ruin products, or instigate pollution. Generally, the most common risks associated with cargo shipping include: 

  • Collisions or weather that results in the loss of product
  • Theft and counterfeiting of goods
  • Labor and other legal disputes
  • Technical issues that impact shipments

The impact of cargo shipping threats is common. As such, responsible business owners should practice risk management techniques regularly and consider purchasing an insurance policy that covers cargo shipping liabilities.  

Considering Liability Coverage 

Many insurance policies are available to cover cargo shipping liabilities. Before you commit to a coverage plan, ensure that you purchase the appropriate amount of coverage required to safely transport cargo shipments. 

Overall, Adequately handling the risks associated with cargo shipping will preserve your business’s finances in the event of an emergency.