- Global supply chains face growing risk across transport, storage, and inland logistics
- Operational failures, fire incidents, and weather disruptions remain persistent challenges
- Logistics insurance is increasingly critical for stabilising cargo flows and managing liability
- Integrated insurance frameworks support resilience across complex, multimodal supply chains
Global supply chains are operating in an increasingly complex risk environment, according to a December 19, 2025, contribution from Samsung C&T’s Global PR function, as rising cargo volumes, larger vessels, and interconnected transport networks heighten exposure across logistics operations.
Increasing Complexity Across Global Logistics
As global logistics networks expand, higher cargo density and more intensive use of transport corridors are introducing new layers of operational complexity. Cargo typically passes through multiple handling points, including ports, terminals, warehouses, and inland transport nodes, each increasing the likelihood of incidents.
Recent operational data indicates that disruptions remain widespread across global transport systems. Machinery failures continue to represent one of the most common categories of incidents, while fire-related events affect a broad range of logistics facilities and equipment. Weather-related disruptions are also becoming more frequent, impacting ocean routes as well as port access, inland terminals, and overland transport schedules.
High-volume distribution hubs are under increasing strain as container yards, truck gates, and rail interchanges handle rising cargo density. Routine processes such as loading, unloading, equipment transfers, and short-term storage now require tighter coordination across multiple operators, increasing overall exposure throughout the supply chain.
The Role of Logistics Insurance
In this operating environment, logistics insurance plays a central role in protecting cargo movement and maintaining continuity. Insurance coverage provides financial protection against unexpected incidents during transportation, handling, or storage, including collision, impact damage, equipment malfunction, fire, theft, and natural disasters.
Clear policy boundaries help define responsibilities across the supply chain. While insurance covers external and uncontrollable events, exclusions typically apply to war-related losses, shipment delays, and market-driven price changes. This structure allows companies to manage risk proactively and coordinate effectively with carriers, terminals, and logistics partners.
Comprehensive coverage also supports transparency for customers and partners by reducing cost disputes, improving incident handling, and aligning cargo movement with international compliance requirements, particularly as shipments pass through multiple jurisdictions and high-volume trade corridors.
Protecting the Full Supply Chain
Modern supply chains rely on a coordinated insurance approach rather than a single product. Protection typically spans goods in transit, inventory in storage, and liabilities arising from third-party claims, forming a comprehensive framework that supports predictable logistics operations.
Cargo Insurance:
Cargo insurance protects goods against physical loss or damage during sea, air, rail, or road transport. Coverage applies during vessel loading, container transfers, port handling, and inland movement. Standard practice insures cargo at invoice value plus 10%, with all-risk clauses offering broad protection across diverse transit environments.
Package Insurance:
Warehouse storage introduces risks such as fire, flooding, equipment malfunction, and facility damage. Package insurance protects stored inventory and may also cover damage caused by goods to third-party property. Maintaining accurate inventory valuations and up-to-date warehouse data is essential for effective coverage.
Liability Insurance:
Liability insurance addresses third-party claims arising from cargo handling, chartering, or inland transport, including environmental damage, property loss, or personal injury. This coverage supports continuity by absorbing legal and financial exposure across maritime, port, and domestic logistics operations.
Strengthening Supply Chain Stability
As logistics networks become more interconnected, managing risk across every stage of cargo movement is increasingly important. For global trading groups handling diverse commodities and project-linked cargo across multimodal routes, structured insurance frameworks help protect shipments at sea, in ports, and in storage locations.
By applying cargo, package, and liability insurance across these risk points, companies can mitigate the impact of operational incidents, weather disruptions, and facility-related challenges. In this context, logistics insurance functions as a foundational tool that supports resilient supply chains, reliable delivery performance, and stable global trade operations.
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Source: SamsungCT
