10 Strategies For Managing Shipping Risks

In international trade, it is important to get your goods from origin to destination safely and on schedule. More often than not, your goods travel halfway around the globe to reach your customers and this is when they are most exposed to risks, while crossing borders and changing hands.

Any loss, damage or delay to your shipment will adversely affect your customers that put their trust in your business, and ultimately your business’ reputation and bottom line. On the other hand, proactive management of shipping risks in logistics will set your business for success and bring you more opportunities.

What Are The Typical Risks In International Shipping?

Navigating the complexities of international shipping is a critical task for any business with a global reach. While it opens up vast opportunities, the journey of goods across borders is fraught with various shipping risks that can impact your bottom line and reputation. Understanding these potential pitfalls is the first step toward mitigating them effectively:

• Loss or damage to the goods

• Shipment delays

• Unexpected costs arising from storage or additional handling

• Rate volatility

• Compliance issues e.g. violation of customs regulations

• Pilferage or theft of part or whole of the goods

• Accidents, injury, death

• Acts of God such as Covid-19 lockdowns

The international shipping landscape is dynamic and unpredictable, but by being aware of the typical shipping risks from physical damage and delays to regulatory hurdles and unforeseen problems you can better prepare your supply chain. Implementing robust risk management strategies and working with reliable partners are key to ensuring your goods arrive safely and on time, no matter the challenges that arise.

Liability Limitations in Freight Forwarding

In international logistics, a freight forwarder’s liability for cargo loss, damage or delay is restricted by international conventions, contracts and local laws. Key frameworks include the Warsaw Convention and Hague Protocol for air transport, the CMR Convention for road, the UN Convention on the Carriage of Goods by Sea, and COTIF for rail shipments. These liability regimes set strict caps on compensation and exclude scenarios such as force majeure, poor packaging or inaccurate shipping information. Because such limits rarely cover the full cargo value, shippers should strengthen risk management by understanding liability rules, purchasing cargo insurance and working with an experienced freight forwarder to ensure compliance and secure full protection.

Strategies for Managing Shipping Risks

When it comes to international shipping, every stage of the journey, from packing and documentation to customs clearance and final delivery, exposes your cargo to potential challenges. Delays, damages, compliance issues or unexpected costs can disrupt your supply chain and impact your business reputation. To safeguard your shipments and maintain smooth operations, it is essential to implement proactive cargo risk management strategies. In this blog post, we highlight practical approaches you can use to protect your goods and minimize exposure when shipping globally.

1. Take on cargo insurance

Considering the liability limitations of carriers for loss and damage, it may be a good idea to purchase an ‘All Risks’ cargo insurance policy for your shipment. This is the most common risk management strategy for high value shipments and a better alternative to declaring a higher value for carriage, which could be complex and expensive, depending on the carrier.

2. Track your shipment

Cargo can be offloaded, misrouted or otherwise mishandled during transit. It could be down to capacity issues, wrong instructions or miscommunication between carrier and handling agent. Most reputable carriers provide in-transit visibility through their website so be sure to track your shipment from time to time.

3. Pack and label your cargo appropriately

Export packing must be of sufficient quality to ensure the safety of your goods during transit, protect your cargo from all types of weather, shocks and vibrations during handling, loading/unloading at transit points, etc. Attaching appropriate labels to your cargo will also increase the chances of your cargo being handled properly as it travels.

4. Palletize your cargo

Shipping loose cargo is risky, especially on long international routes with multiple transit stops. Cargo unitization through pallets or ULDs (Unit Load Devices) reduces handling, lowers the chance of loss or damage, and speeds up warehouse operations. Though it adds some cost, palletization or ULD use ensures greater cargo protection, compliance with handling standards, and more reliable supply chain performance.

5. Make clear communication a top priority

In international shipping and freight forwarding, clear communication is critical for smooth cargo handling. Providing complete details and accurate shipping instructions to your freight forwarder minimizes the risk of misrouted, delayed or mishandled shipments. Always share full cargo information and document your requirements in writing instead of leaving your logistics provider to make assumptions.

6. Get your paperwork right

The quality of your shipping documentation is essential for ensuring that your cargo crosses international borders smoothly. Accurate and properly prepared paperwork helps prevent delays, minimize unnecessary storage costs at the destination and keeps your supply chain moving efficiently. One of the best practices is to send a Pre-Alert to your destination freight forwarder before dispatching your goods. This allows time to correct any errors, reducing the risk of shipment delays, rejections or additional handling fees. Strong cargo documentation also supports full customs compliance, helping your business avoid costly penalties while ensuring a seamless international shipping process.

7. Exercise due diligence when shipping dangerous goods

Failure to properly pack, label or declare dangerous goods can have serious consequences, not only for your shipment but also for other cargo sharing the same vessel or aircraft, as well as for the personnel handling it. Fires caused by hazardous materials, such as lithium-ion batteries, during transit or storage are not uncommon and can result in severe liabilities for your business. To avoid these shipping risks, it is essential to work with licensed DG specialists who ensure compliance with international regulations. At Delta Global Solutions, we have certified DGR specialists ready to handle dangerous goods safely and protect your supply chain.

8. Leverage Technology

Shipments can be misrouted or mishandled along the way, resulting in cargo loss, damage or delay. It can be quite frustrating to locate the missing pieces or prove negligence when things come down to that, especially when third parties such as ground handling agents or warehouse staff are involved. Consider using cargo security devices such as track/trace GPS devices, shock/tilt watches, locks or tamper proof seals as an added layer of security for high value shipments. This is especially useful when your goods travel long distances through multiple transfer points.

9. Train your staff

Strengthen your supply chain by training employees in logistics management and shipping risk prevention. When your team understands common freight forwarding challenges and learns how to handle cargo safely, they become more effective at managing disruptions. Well-trained staff not only improve cargo protection but also reduce your company’s exposure to supply chain delays, damage or financial loss.

10. Trust your cargo to supply chain experts

Partnering with a reputable, experienced freight forwarder can help minimize the risks in your supply chain. Pay attention to the following when selecting a freight forwarding partner:

• Insurance coverage: does your freight forwarder have adequate liability insurance coverage?

• Quality management: does your logistics provider use appropriate handling procedures in place? The best players in the field adhere to quality standards such as ISO 9001:2015.

• Professional qualifications: is your forwarder qualified enough to handle specific types of shipments, e.g. live animals or dangerous goods? Don't be shy to ask for proof of qualification such as certificates or licenses.

• Relationship to carriers: make sure you are dealing with cargo agents with direct relationships to carriers, the more agents you have to go through, the less efficient your supply chain becomes in terms of time and costs.

How Delta Global Solutions Can Help You Manage Supply Chain Risks

No matter what or where you ship, the risks inherent in the shipping industry need to be managed well. Recently evolving risks such as Covid-19 lockdowns, Russia-Ukraine military conflict, Gaza conflict between Israel and Palestine, Suez Canal blockage mean supply chain risk management requires a hands-on approach, and should never become a box ticking exercise.

At Delta Global Solutions, we integrate proactive risk management into every aspect of our business processes. As your trusted freight forwarding and logistics partner, we leverage our extensive global network and deep local expertise in Uzbekistan and Central Asia to secure your cargo, minimize disruption, and ensure safe, efficient delivery from pick-up to the final destination.

Contact Delta Global Solutions today to transform uncertainty into confidence, streamline your supply chain with our international transport and customs brokerage capabilities, and connect your business with global markets swiftly and reliably.

FAQ:

1. What is the typical cost of an 'All Risks' cargo insurance policy?

The premium for an 'All Risks' cargo insurance policy usually falls within a range of 0.25% to 0.75% of the total shipment value (CIF). This rate varies based on the commodity, the trade lane, and the claim history of the shipper. For high-value cargo or risky routes, this premium is a vital component of proactive supply chain risk management.

2. What is the first step to file a claim after cargo damage?

The most critical immediate step is to issue a formal Notice of Claim (or 'Notice of Loss') in writing to the carrier or freight forwarder. This must be done promptly, typically within 3 to 7 days of delivery, as failing to meet these strict international deadlines can legally jeopardize your entire claim.

3. What are the criteria we should use to evaluate a freight forwarder?

For more detailed information on how to select the right freight forwarder please review our full blog post