Articles
Risks and Rewards: Risk Management Strategies
2008: Applying What We Learned
In this last column of 2007, I thought I’d look back at some practical issues addressed last year, and speculate on future trends in supply chain risk and liability. Insurers will broaden their scope. In October, we heard from a logistics operator whose business grew, through an acquisition, from handling and transporting air cargo to […]
Read MoreYour Services Are Expanding…Are You Covered?
Q: I am the risk manager for a global logistics company that provides complete door-to-door service. A large part of our operation involves shipping goods by air. While we do have partners, our own employees perform most of our services, including airport consolidation and warehousing. We are insured through a global program that covers most […]
Read MoreSeeing the Value in ‘Seaworthy’ Packaging
Q: My company is a logistics service provider. We recently shipped a container of machine parts to Brazil under an arrangement that included the packing and stuffing of six crates. We received instructions from the customer that the packaging needed to be “seaworthy,” and we hired a subcontractor to perform the packaging and stuffing. When […]
Read MoreBuying Insurance: Domestic or Foreign?
Q: I am a logistics operator who handles inbound and outbound shipments for partners around the world. I am currently reviewing insurance options to ensure that my cargo and company are protected against accidents or damages that may occur during transit. My broker recently sent a proposal that fits my needs, but I feel uncomfortable […]
Read MoreFiling Claims: Time Is Not on Your Side
Q: My company imports ceramic products from around the world. One shipment arrived at our warehouse filled with crushed boxes – inside, the contents were completely shattered. It appeared that the container was mishandled and possibly dropped during transit. We took inventory of the damaged items and submitted a claim to the ocean carrier. We […]
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Shifted Contents, Shared Responsibility
Q: My warehouse often receives containers holding cargo that has shifted or collapsed against itself. Apart from any risk we face for cargo damage while unloading the containers, I feel this also presents a hazard to my workers. What can I do to protect my company and my employees? A: Unfortunately, containers often house improperly […]
Read More2006: A Year of Supply Chain Changes
The logistics industry continued to undergo fundamental changes in 2006, as shippers demanded increased services from their providers. To meet that need, numerous logistics providers contemplated expanding their core services. One European forwarder, for example, weighed the benefits of providing domestic trucking to a company wanting an integrated service for shipping goods to the United […]
Read MoreCargo Security: Collaborate, Prevent, React
Q: With all the cargo security initiatives that have been implemented recently, what can transportation companies expect for the future? A: After the Sept. 11 terrorist attacks, both government and industry launched unprecedented efforts to ensure cargo safety throughout the transportation chain. Despite these collaborative efforts, maintaining a safe and secure transportation system remains a […]
Read MoreBuild Your Case With Bills of Lading
Q: I work for a company that imports and exports cargo from countries all over the world. One of our import containers was recently stolen from a delivering carrier’s lot in Jacksonville, Fla., and was never recovered. Who is responsible for the loss—the Non-Vessel-Operating Common Carrier (NVOCC) that arranged the shipment, the ocean carrier, or […]
Read MoreChoosing an Intermediary? Buyer Beware
Q: Can importers be held responsible for unauthorized fraudulent acts committed by a customs broker working on their behalf? A: The U.S. Court of International Trade faced this question during a recent case where a textiles manufacturer hired a freight forwarder to act as its importer of record and to file entries on its behalf. […]
Read MoreKnock on Wood Packaging Materials
Q: We are importing several containers of roof tiles from Spain. The pallets used for the shipment contain paper documents certifying that they were treated to ward off insects and other vermin. The shipment arrived at the destination port, but Customs informed us that the paper documents are not an acceptable proof of treatment. They […]
Read MoreKeep Your Business Out of Harm’s Way
Q: I am a logistics provider. In addition to a policy that protects me from cargo damage claims, I have a general liability policy that covers bodily injury and property damage claims. I know I could face a claim if someone trips and falls while visiting my office, but I rarely have visitors, and my […]
Read MoreLiability Lessons Learned in 2005
This year began with expectations that insurance rates would finally decline as markets recovered from the effects of Sept. 11. Over the past several years, insurers imposed strict underwriting disciplines to restore profitability to the market, which, in turn, attracted new capital. This brought about greater competition and with it, the prospect of softening premiums. […]
Read MoreBuying Business Insurance? Dig Deeper
Q: It has been four years since the events of Sept. 11 caused the world’s insurance market to restrict coverage and raise prices. Now, many are wondering if Hurricane Katrina will have the same effect on insurance. What do forecasters predict? A: Insurers are still assessing Hurricane Katrina’s financial impact, gathering details on the magnitude […]
Read MoreProtecting High-Value Cargo
Q: My company moves sensitive, high-value instruments throughout North America for hospitals, universities, and government facilities. Because these instruments are difficult to handle, we use special riggers to install them. Given these instruments’ specialized nature, when damage occurs during transit and the instruments must be repaired or replaced, it means significant costs and delays. We […]
Read MoreTriple Threat: Fighting Multiple Cargo Claims
Q: I am an NVOCC. Recently, I imported a shipment of assorted metal products to the United States. During shipment, some of the goods were damaged, and the receiver filed a claim against me. I paid the claim based on the limited liability in my bill of lading.The goods were insured under a cargo policy […]
Read MorePlugging Cargo Liability Leaks
Q: I own a fleet of tank containers. A customer recently used one of my tanks for a shipment of concentrated juice. During transit, the tank developed a leak and a significant amount of concentrate was lost. The customer filed a claim against me, but my insurance company—which covers my cargo liability—says I may not […]
Read MoreFencing in Cargo Theft Concerns
Q: I operate a warehouse with a fenced yard. As a favor, I recently allowed a truck driver to park his rig with a trailerload of cargo in my yard over a weekend. I did not issue him a standard warehouse receipt because it was a temporary arrangement, and the goods were not unloaded from […]
Read MoreCompliance the Top Concern of 2004
Q: Looking back at 2004, regulatory compliance issues posed a big concern for my business. Am I facing this challenge alone? What were the biggest issues logistics professionals faced this year, from a liability standpoint? A: Security issues dominated the news in the supply chain industry throughout 2004, as various government agencies took steps to […]
Read MoreSteering Clear of Roadside Risk
Q: I recently made arrangements with a trucker to transport a co-loaded trailer from the Midwest to the East Coast. The trailer jackknifed on the highway and overturned, causing an accident with another car. I’m worried because I received a letter holding me responsible for any injury and property claims that may result from this […]
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