Articles
Risks and Rewards: Risk Management Strategies
A Behind-the-Screens Look at Air Cargo
Q: I am an air consolidator and arrange to ship cargo to domestic and international destinations. I understand that the Transportation Security Administration is developing a system to subject 100 percent of domestic and international cargo to security screening. Are you familiar with this initiative, and how will it affect my operations? A: Last year, […]
Read MoreA Matter of Life and Death
Q: I am a freight forwarder providing a service in which I deliver ISO tanks to my customer, who fills them with hazardous liquids and gas. Once the tanks are filled, I arrange to have them transported from my customer’s facility to their destination, usually in a foreign country. I recently read about a case […]
Read MoreTaking on One-Offs
Q: I operate a marine terminal, and I have an insurance policy with a $1-million limit to cover loading and discharge operations. A customer wanted me to discharge a heavy piece of machinery valued at $75 million. When I asked my insurance company to increase its limit just for this one operation, it refused to […]
Read MoreThe Perils of Trucking: It Takes a Thief
Q: I am expanding into Central and South America and need trucking insurance to cover my cargo. Can you help me? A: This is a common question from shippers who cannot obtain cargo insurance, from forwarders who are unable to get liability insurance, and even from truckers who are required to secure cover before any […]
Read More2008: 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 […]
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