Many companies now rely on a broadening supply chain the spans across the globe. With this expansion, potential risks and losses have sharply increased. In fact, the “Global Risks Report 2016,” compiled by the World Economic Forum has indicated that the vulnerability of cargo traveling internationally has drastically risen. These risks can influence the entirety of a corporations supply chain only exacerbating the problem. Understanding cargo liability programs and their coverage can help protect you.
Pirates have endangered ship cargo for centuries. However, there are a number of new dangers. As terrorist groups have grown, ships and the products that they carry have become a major target for violence. Additionally, growing migrant populations from particular regions are beginning to threaten the labor flow, which can have a detrimental effect on the security of your supply chain.
Global warming and its aftermath have been the greatest factors in the increasing threat to cargo lines. Major hurricanes, typhoons and other significant storms pose an unavoidable risk to cargo carriers transporting company goods. While ships have come a long way, Mother Nature can still easily destroy them.
Managing the Damage
The loss and destruction of materials can be devastating to a business and its overall profits. While there are some steps you can take to minimize the repercussions, disaster cannot always be avoided. The most essential step to mitigate the aftermath is cargo liability programs that can help you recover lost capital and potential profit. A comprehensive plan can help your company survive and continue to thrive.