Loss Prevention in Transportation to Ensure Product Quality. Insights from the Cargo Insurance Sector

Abstract

Transport and logistics operations are vulnerable to many types of risks due to an increasing dynamic and structural complexity of today's supply chain networks. Globally distributed sourcing and production lead to more transported goods in general but also to more high-value cargoes being shipped around the world. However, detailed information about the transport condition and integrity are not available in the end-to-end chain as logistics operations lack full transparency. Therefore, this paper identifies causes and risks of cargo-related losses by an analysis of cargo insurance claims. Based on these results, appropriate preventive measures to monitor and improve the product quality during logistics operations are derived.