Jakarta, MINE – Indonesia is known as one of the largest maritime countries in the world. Shipping, shipping, logistics and cross-continental trade activities continue to grow, making the maritime and cargo sectors an important component supply chain national and international. However, this growth also brings challenges. The ever-evolving business environment, from geopolitics to climate change, creates an increasingly complex risk landscape for industry players.
In conditions like this, companies can no longer rely on this approach risk management which is reactive. Risks need to be understood comprehensively, including physical risks to ships and cargo, operational threats, and external pressures that can disrupt shipping routes. The maritime and cargo industry requires an adaptive and integrated strategy to maintain business continuity amidst global uncertainty.
Physical and Operational Risks in the Maritime Industry
One of the main risks in the maritime industry is physical damage to vessels or property for which the operator is responsible. Ships face various threats, from fires, explosions, storms, maritime dangers, to piracy. These factors can cause significant operational disruption and potentially result in large financial losses.
The risks don’t just stop with ships. When goods are sent by sea, a series of potential damages occur, such as cargo getting wet, broken, partially lost, or delayed. Damage during transit is one of the biggest challenges due to the nature of shipping which involves long distances, unpredictable weather, and movement at various logistics points. Apart from that, the industry must also anticipate the risk of legal liability related to ship operations, ranging from accidents to damage to third parties. All of this must be managed in a structured manner so that operations remain safe.
Geopolitical Dynamics and Pressure on Cargo Supply Chains
Risks in the cargo industry evolving with global uncertainty. One clear example is the escalating situation in the Red Sea in 2024, involving tensions between Israel, Palestine and Iran. These conditions encourage global insurance companies to issue notice of cancellation for deliveries in the region.
In fact, the Red Sea is an important route in international trade that connects Indonesia with Europe. Closure or disruption to this route can cause route changes, increased logistics costs, and delays in the supply of raw materials and finished goods. Companies that depend on international supply chains need to understand that geopolitical risk is now an operational factor that cannot be ignored.
On the other hand, all manufacturing companies basically need cargo protection because every production process involves movement raw materials and finished products. The risk remains, regardless incoterms used in transactions. For this reason, cargo insurance policies need to be tailored to the company’s specific needs, including mechanisms contingency plan to fill potential gaps in protection.
Cargo Protection and the Importance of Adapting to New Risks
Cargo insurance provides primary protection against physical damage to goods during shipping, whether by land, sea or air. Without this protection, companies risk incurring major losses that not only affect production costs, but also disrupt relationships with suppliers and customers.
In addition, ever-changing risk patterns mean companies need to review the policies they have. Many companies still use protection that is no longer relevant to modern operational risks, for example increasing cyber threats in logistics systems, route changes due to geopolitics, or the need for protection for high-risk commodities such as petrochemicals, CPO, paper, or pharmaceutical products.
By conducting regular evaluations, companies can ensure that the available coverage is truly appropriate to their risk exposure and that there is no shortage of risk gaps which has the potential to cause losses.
Risk Management Strategy in an Era of Uncertainty
Effective risk management is not only related to purchasing a policy, but also how the company designs an integrated protection strategy. Companies need to consider physical, operational, financial risks, as well as risks arising from geopolitical changes. This is where it comes into play risk advisor and brokers become important.
Risk advisor and insurance brokers helps companies comprehensively assess risk profiles, provide mitigation recommendations, evaluate the adequacy of existing protection, and adjust policies to align with the latest conditions. This approach is important for shipping companies, terminal operators, logistics companies and manufacturers who rely on a smooth global supply chain.
In Indonesia, Marsh has long experience in handling maritime and cargo risks, supported by technical expertise, global market access, large-scale premium placement capabilities, and a dedicated claims team that ensures the recovery process is effective. These components enable companies to obtain protection that is competitive and appropriate to their operational needs. In an increasingly uncertain global landscape, from physical risks to ships and cargo to geopolitical pressures, an integrated, adaptive and data-driven risk management strategy has become increasingly crucial. Appropriate protection is no longer a complement, but rather an important foundation for business resilience and continuity in the maritime and cargo sectors.
(LK4)Hyperlink to: https://www.marsh.com/id/en/industries/marine/insights/industri-marine-kargo-logistik.html?utm_source=externalsite&utm_medium=organic&utm_campaign=content-partnership&utm_term=majalah-tambang&utm_content=article-kargo&utm_country=indonesia
Source: www.tambang.co.id
