Lost orders, replacement costs, delayed orders, damaged reputation, and other overhead costs, are some of the challenges that both shippers and importers face in the international freight forwarders’ business. An analysis of the risks that exist beforehand, which is often challenging when using different transportation modes, is paramount in this case, for proper cargo risk management.
Through the help of an expert on transportation risk management, you can overcome these challenges. LOGISTIQ offers top-of-the-line risk management consulting services. We stay up-to-date on what’s going on in the transportation industry so we can help advise you on best practices. Here are some of the aspects to consider for international freight forwarders, that foster effectiveness in cargo risk management.
Selection Of Carriers: There are many options to choose from when sourcing a prospective carrier offering services for international freight forwarders. Any of these vendors will claim that they have the resources and experience to handle the task whenever you engage them, only to disappoint when you formally give them the responsibility.
Before committing to work with a particular carrier, you need to gather details about their reputation in the industry and verify their track record for safe handling of consignments among other things. With this information, you can confidently pursue a potential carrier to offer the cargo risk management and other international freight forwarder services you need.
Packing Methods: Moving goods from one destination to another using different modes of transport exposes the shipment to varying weather conditions as well. The packaging material is a factor worth considering in this case, and its significance ranges from the protection of goods in transit, protection against weather, pilferage, and poor handling, to the weight aspect that increases the shipping costs.
By taking each of these aspects into consideration, both shippers and importers can select appropriate packing methods. Effective cargo shipping risk management consists of mitigating the risk factor right from the source, through to the destination.
Health and Safety Policy: International freight forwarding involves the operation of heavy equipment and machines as part of the tools of the trade. These facilities pose various health and safety hazards to both employees and individuals on site when handling cargo.
Without the recommended health and safety policies in place, you risk fines or a lawsuit as a result of a violation of set rules and guidelines. Consequently, that will impact your operations negatively. All in all, effective cargo risk management along with comprehensive freight forwarder insurance will certainly help you as an international freight forwarder.