Disaster Recovery Journal Winter 2025

A Practical Guide to Risk Management in Global Shipping By WILLIAM POWELL I f you move products across borders, you already know the seas aren’t always calm. The weather can change at any warning, port labor actions stall cargo, documentation hiccups trigger customs holds, and fragile packaging turns into claims. The good news is that most of these are predictable, and there are risk management strategies that exist when you’re dealing with global shipping. We will discuss those here. The Risk Landscape Most of the risks you’ll deal with in global shipping fall into a few predictable buckets, and these are: n Transit Risks : These are the physical ones, like damaged cartons. They’re the most visible kind of risk and usually the first to get blamed when something goes wrong. n Operational Risks : Here’s where human timing comes in. Missed cutoffs, overbooked sailings, congested terminals, and the infamous “blank sailing” (when a vessel just skips a port)

can all turn your delivery schedule upside down. Sometimes it’s poor coordination, other times it’s just bad timing, but it’s always expensive. n Financial and Contractual Risks : One wrong clause in a contract or misjudged handoff of responsibility can cost you thousands. This can also be demurrage charges that pile up while cargo sits at the port or unexpected detention risks. n Regulatory Risks : Even experienced shippers get caught here. An incorrect HS code or a missing certificate of origin can stall your shipment. And with sanctions and trade rules changing faster than ever, compliance helps you to keep your cargo moving legally. n Environmental and Geopolitical Risks : Many areas around the world are constantly having to deal with storms, port strikes, political unrest, and conflict zones that shut down important routes.

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