Cargo Risk Management in International Transport and Logistics

Abstract

Cargo risk management is the identification, analysis and control of risk associated with cargo within transportation service, Logistics or supply chain network. The impact of a cargo loss in today’s competitive business environment extends far beyond the amount that may be recoverable through an insurance claim.  Effective and proactive cargo risk management therefore contributes significantly to a business’s efficiency, reputation and results.

Knowledge and understanding of the multiple exposures experienced by cargo throughout the transit chain is converted into effective practical measures to reduce exposure to risk and to positively mitigate the occurrence of negative impact on International Transport and Logistics.

The risk management process is as much about analysis, co-ordination and culture as it is about practical surveys and fact finding. An effective risk management programme is both pro-active and interactive and depends upon successful development of teamwork, shared goals and accountability and a modern approach to the sharing of experience and knowledge.

Cargo risk management is a dynamic process that evolves with the changing needs and circumstances of the business, and continuously improves both risk exposure and risk awareness.

Traditional cargo risk exposures typically relate to