There are many risks associated with
a logistics business in the worldwide marketplace! Cargo theft is,
approximately, a $ 30 billion a year business! Even if, the number of
thefts has reduced, thieves have been targeting high-value goods, causing a
rise in the average theft values. However, theft is not the only threat for
companies, cargo faces a lot of other issues that can result in damaged goods
while in a storehouse or in transportation. Logistic insurances cover the
merchandise carried out via air, water, rail, road, and registered courier
& post parcel. The global logistics insurance market is said to reach USD
61.5 billion by 2025, according to a report by Grand View Research Inc.
Why is Logistic Insurance Important?
Logistic insurance is necessary for a
business that is engaged in international trade. Such insurance provides
protection to merchandise from all physical losses and/or damages from any
external source while shipping them, whether by land, sea, or air. Specific
terms and advantages differ across the world and several Cargo Insurance
Policies are personalized for particular shipments, however, some common principles
apply to the entire logistic insurance industry. There are various types of
insurances available. Insurances are available to protect the commodities while
in transport to the storehouse or even while at the storehouse itself.
Benefits of Logistics Insurance:
·
All
Risk Coverage:
It offers extensive protection
against damages or losses due to any external factor such as cargo abandonment,
customs rejection, damages due to infestation, poor packaging, etc.
·
Free
From Particular Average Coverage:
This insurance coverage type belongs
to a particular category and covers only specific risks such as theft,
earthquake, heavy weather, sinking, collision, derailment, fire, etc.
·
General
Average Coverage:
It covers only partial losses
occurred to the shipment.
·
Warehouse
to Warehouse Coverage:
It is applicable when the shipment is
unloaded and is getting transported to the consumer’s storehouse.
Market Overview:
The growing globalization, rising
foreign direct investments, and development of free trade zones are the factors
responsible for the rapid growth of the global logistics insurance market in
various developing nations. The logistics centers & trade routes are
progressively shifting toward the developing markets. Privatization of the
logistic industry has also boosted the market growth in various countries such
as China, India, and Turkey. Some major players in the logistic insurance
market are Allianz SE; American International Group, Inc.; Dawson Companies;
and DB Schenker.
In-Depth research report on logistics insurance market:
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