Disaster Recovery Journal Winter 2025

A port in a storm may be a frequently used expression, but it isn’t always a given. Today, we have better communication, better technology, and clearer advantages. “

n Technology and Data Risks : Global shipping runs on multi-modal logistics, and systems fail all the time. A cyberattack or system outage can leave containers “invisible” for days. It’s rare, but when visibility tools go dark, so does your ability to react.

Smart Risk Management That Pays Off

1. Get Incoterms Right This might not look like risk management, but it is. If you need control over booking, transit time, and docs, lean on FOB or FCA so you (or your forwarder) can pick carriers and manage schedules. If you prefer simplicity and your supplier is savvy, CIF/CIP can work, but verify what coverage actually exists and who files the claim. 2. Buy Credible Cargo Insurance Carrier liability is limited and often includes common problems. Take out all-risk cargo insurance with named exclusions, you understand. Here are things to confirm: n Valuation basics (invoice + freight + a markup, typically 10%) n Temperature deviation coverage if you ship perishables n Deductibles and claim documentation requirements n War/strikes/riot coverage for sensitive lanes 3. Vet Your Carrier and Routes Ask your forwarder for lane-level on-time performance and historical rollover rates. Avoid chronically congested transshipment hubs for time-sensitive goods, even if the base rate looks cheaper. A slightly higher rate often beats a week stuck in port. 4. Tighten Packaging and Labeling Most damage claims trace back to packaging. Specify “ISTA-compliant” packaging where relevant, use moisture barriers on long ocean legs, add shock and tilt indicators for high-value electronics, and keep labels readable after a month at sea. Insurers love documentation and will pay faster.

doesn’t cover common causes of loss like rough seas or improper handling. A proper all-risk policy gives you full value protection and faster claim resolution. It’s one of those things you don’t appreciate until you’ve had to file a claim and realize how narrow carrier coverage actually is. What’s the easiest way to reduce damage during long ocean shipments? Start by packaging your goods properly. This means sealing them well enough, using pallets that can handle humidity. Use moisture barriers and proper cushioning to achieve this while keeping fragile products safe. Label everything clearly so handlers and customs can identify shipments without cutting into them. Conclusion At its core, risk management in global shipping is about preparing and being ready for uncertainty. Since mankind has taken to the seas, uncertainty has been the only given. A port in a storm may be a frequently used expression, but it isn’t always a given. Today, we have better communication, better technology, and clearer advantages. For more information on how these real-world challenges play out across today’s shipping landscape, stay informed. Your business, your staff, and your customers depend on it. v

5. Documentation Prepare commercial invoices, packing lists, and any required certificates (origin, fumigation, MSDS, phytosanitary) as soon as possible. Make sure you double-check HS codes with your freight forwarder’s compliance team to avoid delays and fines. Also, keep a digital copy ready for customs pre-clearance, where available. 6. Build Slack into Lead Times Treat quoted transit time as best case, no guarantee. Add buffer days for port congestion seasons and holidays in both countries. For promotions or must-hit launches, split shipments across sailing to avoid single-point failure. 7. Track, Alert, and Escalate Use tracking that pushes alerts for gate-in, vessel departure/arrival, transshipment, and customs release. Set escalation rules like who calls the terminal if a container misses a cutoff or who requests a roll-on priority. Frequently Asked Questions Is it practical to add extra time to every shipment? Yes, it is. And it saves money in the long run. Transit times listed on schedules are optimistic. Do I really need extra cargo insurance if the carrier already has liability coverage? In almost all cases, yes. Carrier liability is limited by weight and often

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William Powell is a writer and educator with a passion for marketing. He enjoys learning about the latest business trends and analyzing how global events impact domestic and international economies.

32 DISASTER RECOVERY JOURNAL | WINTER 2025