Businesses in the shipping industry can be lucrative. However, there are risks associated with shipping that you may not find as often in other industries. Here are some of the most common risks that occur when shipping cargo.
Natural disasters can happen anywhere. When on the sea or at port, hurricanes and major storms become a real risk to your cargo. In recent years, storms have become increasingly more dangerous and so you need to be completely prepared and protected in case of a natural disaster.
Most shipping theft occurs due to piracy. In fact, it is still a very active threat for cargo ships. Shipping companies should always have a plan for how to handle thieves. A mitigation plan can help reduce the losses caused by pirates out at sea.
All industries need to take precautions against cyber threats. Nowadays the global supply chain is interconnected and at its most accessible. Even if computer systems on a ship are self-contained, they are not safe from human error or disgruntled employees. You also can’t completely rule out any outside hackers.
Have adequate insurance coverage can help you prevent a devastating loss to your company. In addition with risk mitigation strategies, you are less likely to lose enough to break your company.