Operating a business that uses transport and logistics creates unique risks and issues to manage. Shutdowns and supply chain disruptions, such as we saw during the pandemic, highlight the crucial role the transport and logistics sector plays in keeping Australia moving.

Importance of transit insurance for business owners

Whether you’re undertaking marine, land or air transit, there are several risk factors that can affect your operations. These can be economic, due to fuel and freight pricing; political or regulatory, such as international sanctions and tariffs; environmental; financial; or technological, such as cyber security risks.

You can minimise those issues by doing your due diligence to understand the external factors listed above as well as any cultural issues, select the appropriate shipping method, choose a reputable shipping service, and track your shipping electronically in real time,

Marine cargo risk

Marine cargo risk covers businesses that send and receive items by sea and transit through ports and terminals. Nine out of ten items traded across the globe travel by ocean.

A marine cargo policy protects your export or import items in transit should the vessel experience trouble during its journey, resulting in your goods being lost, stolen or damaged.

Land transport risk

Road or rail transport is often the most popular and convenient way to move items as it is flexible and safe whether your freight is going short or long distances.

However, there are downsides, including increased risks due to theft, traffic delays, derailment, and damage during loading, transit or unloading. So, ensure your contract with the transit provider specifies clear responsibilities for the cargo for each part of the journey.

Air transport risk

Meanwhile, air transport can also be a fast, safe and effective way to send or receive your goods. Risks can include turbulence, cargo theft, delays due to incorrect documentation or pilot error.

Freight/transit insurance

There are pros and cons to transporting your items whether you use land, sea, or air. Reduce your risks using the tips above and by choosing the best-fit freight insurance policy for your job.

If you would like to know more about protecting your freight when on the move, please CLICK HERE, or contact us for more information.