Challenge: The operations vice president of an oil and pipeline construction company, admits that there was a time when he wondered if his company’s cargo insurance policy was worth it.
This company sources goods from around, the world moves cargo by multiple modes and runs a supply chain through some of the world’s most high-risk countries. Thanks to meticulous packing and some good luck, which lead to very few supply chain incidents over 11 years, until a fine summer, a few years back. That summer (June), a truckload of welding equipment heading to Moscow caught fire. The $809,000 shipment was a total loss. A month later, a cargo ship carrying two of the company’s containers, worth $150,000, also caught fire. Those containers were a total loss of assets.
Solution: Cargo insurance through UPS Capital Insurance Agency, Inc.
Results: The comprehensive policy covered both incidents, saving the company from a catastrophic million-dollar loss.
Disclaimer: The above image is for representation of the below incident and need not be considered as an actual case image.
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Source: Supply Chain Brain
