Global supply chains are always in motion—but that movement isn’t without risk. Every time your freight crosses a border, there’s a chance for delay, damage, theft, or loss. Managing these risks isn’t optional. It’s essential for protecting your cargo, your customers, and your bottom line.

Here’s how to strengthen your international logistics strategy with smart risk management and the right cargo insurance.

1. Spot the Major Risk Factors

Every leg of an international shipment carries its own threat:

• Customs delays or missing documents
• Port bottlenecks and capacity constraints
• Theft, tampering, or spoilage
• Political unrest, strikes, extreme weather
• Compliance breaches with laws

Recent Red Sea shipping disruptions added 9–14 days to routes around the Cape of Good Hope. That triggered port backups across Europe and Asia, raising freight costs and shipping times.

Map out your routes. Note each point where delays or loss could strike.

2. Create a Risk Management Plan

Your logistics strategy needs preparation, not panic.

• Screen your carriers and agents. Prioritize those with stable operations and strong compliance histories.
• Assess route-specific risks. Understand political, weather, and piracy threats on each lane.
• Monitor shipments. Use GPS tracking and timely alerts.
• Build contingency options. Have alternate carriers, ports, and transit routes ready.

Example:

A global electronics company rerouted a key PC shipment from Asia around the Cape of Good Hope rather than risk Red Sea hostilities. The detour added 10 days to transit time—yet still saved them more than $120,000 in demurrage and war-risk surcharges compared to waiting for the Red Sea corridor to reopen.

3. Choose the Right International Cargo Insurance

Carrier liability will rarely cover total losses.

You need dedicated cargo insurance. It protects your goods warehouse to warehouse—even if damage occurs mid-transit.

Two main types:

• All-risk insurance: Broad protection that covers damage, theft, and loss (with exclusions).
• Named-perils insurance: Covers only what’s listed in the policy.

Cargo theft costs are rising. In 2023, thefts of food and beverages jumped from 16 % to 21 % of accidents (TT Club).  Electronics and other high-value goods make up over 40% of thefts (TT Club).

Ask your insurer for warehouse-to-warehouse coverage and make sure your policy aligns with your shipping patterns and cargo types.

Final Takeaways

You can’t stop every shipping risk—but you can reduce the impact.

• Know where shipments might fail.
• Plan around those risks.
• Insure your cargo properly.

Start by auditing your current logistics and insurance setup. Then build in visibility, alternate routes, and the right insurance.

Want data-driven strategies to help your business scale safely and efficiently? Visit Thomas Witt’s blog for more insights.

About Thomas Witt

Thomas Witt is a transportation executive with over 40 years of experience in logistics, freight strategy, and operations management. As an Executive Leader at JLE Industries, one of the fastest-growing freight companies in the U.S., he helps businesses navigate complex supply chains, reduce costs, and manage risk in international freight movement.

Witt’s hands-on approach and deep industry knowledge make him a trusted advisor for companies seeking smarter, more resilient transportation solutions.