The shipping industry keeps global trade alive, but it isn’t without risks for those who keep the containers moving. One of the oldest industries in existence, technology has helped create more efficiency in planning, shipping, receiving and even security. Even still, there are several key risks that accompany shipping and freight operations.
Customer expectations and stiff competition lead to innovations and adopting new procedures, but without careful planning and implementation, it could lead to more exposure and loss. A shipping risk management plan identifies the area of potential risk, insures against them and strategically plans how to minimize exposure. The following areas lead the industry in risks.
- Freight tracking: keeping track of the time it takes a shipment to arrive at the destination once it has left the warehouse
- Communication: interactions between shipping vehicles, customer, custom agents or any other stakeholder
- Capacity monitoring: ensuring that the vehicle executing the shipment is the right size for the load
- Documentation: reviewing all documentation for regulatory compliance, invoicing, insurance and shipping deadlines
- Cybersecurity threats: the safeguarding of all data and information gathered between consumer, carriers, vendors, financiers and otherwise
- Hazards: interferences that cause delay or damage with cargo shipments; ranging from weather to defective machinery
Addressing these risks takes a well-planned and executed strategy. Conducting a risk assessment shows the detailed nature of the liabilities and the best options for securing against them.