How can you assess container shipping risks?

Assess container shipping risks by identifying potential risks, conducting inspections, evaluating routes and carriers, staying updated on regulations, optimising insurance coverage, implementing security measures, developing an incident response plan, monitoring weather and natural disasters, enhancing supply chain visibility, defining contractual protections, and regularly reviewing and updating risk assessments.

If speed is the key, ( and cost is secondary consideration) then always look for route with least number of stops. Sometimes longer transit time on paper but with less transhipment ports is faster than route with more transhipment ports but shorter transit time. My experience is that there is 75% chance of container missing one of the transhipment ports due to congestion or weather mosr of the time.

It is important to be clear on what your needs are - an how are they prioritized. Is speed of the most importance? Is reliability? Is carbon footprint? Do you have specific terminals you want to customs clear in? When you are clear about this it becomes a lot easier to pick routings and shipping products available in the markets. The most reliable product will often be a direct service (this is however getting less and less true), while the fastest often will be a multi-mode offering including transshipments. The greenest might be difficult to identify but will often be slower and depend on the type of vessels used.

1. Risk identification - Involves identifying and listing possible sources and scenarios of risks that may affect the container shipping process 2. Risk analysis - Involves estimating and likelihood and impact of each risk, prioritizing them according to severity and urgency 3. Risk Mitigation - Involves developing and implementing strategies and action plans to reduce, transfer, and avoid risks, by improving safety standards, enhancing security measures, diversifying supply routes, and purchasing insurance 4. Risk Monitoring - Involves tracking and reviewing performance and outcome of the risk mitigation strategies and actions, adjusting them as per need

To assess container shipping risks, identify the risks, evaluate their likelihood and impact, develop mitigation strategies, and monitor and review the risks on a regular basis.

In my view most carriers are pretty stable at the moment - meaning, I would not spend a lot of time analyzing their financial stability. I would rather look at the value proposition of each carrier and consider my own needs. On routing (as per above), but also on your preferred buying behavior. Do I prefer a personalized service? or a digital engagement? Do I want a carrier who can handle most of the administration for me? or am I happy to take that on myself? The carriers have very different offerings in the market today, that are worth considering.

The top 10 carriers all have different approaches to cargo claims resolution. Many are a bit aware of this nor do they pay attention to it. But a carriers approach to claims resolution can make or break your company especially for smaller sized traders.

You can do all of this on your own, or you can find a carrier or logistics partner that will support you to cover all of this. For high value cargo you can chose to have a cargo insurance, or even choose a company that offers tracking on the containers, so you can collect data on the movement, temperature, location etc of the container of all times.

External factors have massive impact on the shipping industry - however rather than trying to follow all factors that might impact my shipment, I would chose a carrier or logistics partner that will do so for me, and that I know I can trust to support me when something happens. That to me is the best protection in our industry.

Take out insurance to cover these risks. Many of these risks would still exist despite your best efforts. While you should be cautious, being cautious sometimes is not enough.