Transportation risk comes in many forms and can be very hard, if not impossible, to predict. These include extreme weather, theft, hijacked trailers, global crises, cargo lost at sea, catastrophic truck or rail accidents, truck fires and a whole lot more.
In 2014, the University of Tennessee Global Supply Chain Institute published a white paper titled Managing Risk in the Global Supply Chain. The most surprising finding in the research was that even though 100% of supply chain executives acknowledged insurance as a highly effective risk mitigation tool, it was simply not on their radar screen, nor in their purview.
Yet, the National Cargo Security Council estimates that there is an annual global financial impact from cargo loss of $50 billion.