Emerging Risk in Transportation Goods via Water

The sea or ocean connects a ship to every continent of the world. It offers several opportunities for business entities to conduct business activities. At the same time, there are several risks associated with this business. The ocean offers to transport goods from one nation to another. However, the risk of transporting goods via water alarms several issues.

₹10 Lakh cover at only ₹591/transit⁺

Protect your goods with

single transit cover

We don't spam

Check premium now

By clicking on "Check premium now" you agree to our Privacy Policy and Terms Of Use

Get Updates on WhatsApp

Wallet-friendly plans
24/7 claim support
IRDAI-certified advisors

Risk in Transporting Goods via Water

Emerging risks in transporting goods via water or sea is a significant issue for shippers and various business entities. However, such issues can be evaded by taking appropriate measures.

Let us discuss the risk in transporting goods via water and its measures.

Weather

Weather hazard is the most prevalent risk associated with ships while transporting goods via water. Some common risks associated with the weather are cyclones, floods, hurricanes, typhoons, etc. The cargo vessel may altogether sink the vessels. Moreover, the winds of hurricanes may approach with a speed of 160 miles per hour. It may cause severe damage to the cargo. The business may incur a heavy loss.

A ‘Tall Ship Bounty’, while transiting via hurricane, sank off. In this incident, 16 people were seriously injured. At the same time, one crewmember lost his life. Additionally, no one could ever find the captain of the ship. The ship was designed at a value of $ 4 million. The owner of the ship incurred a heavy loss due to the sinking of ‘Tall Ship Bounty’. The incident took place on 29 October 2012 in North Carolina.
Geographical Risk

The geographic hazards are the risk associated with the water. Such hazards are known as icebergs, reefs, sandbars, etc. It makes the ship risky to navigate. There have been several incidents that occurred in the past. For example, the famous Titanic case compromised the life of several passengers. The ship sank after striking a big iceberg. The incident took place in 1912. Since then, several advancements have been made in order to avoid such incidents. Nevertheless, geographic hazard is still a prominent risk for the ships.
Technological Hazards

The technological hazards refer to the technical problems with the ship. For example, the machinery or equipment installed on the ship may not work properly. It may have a navigational issue which may take the ship to an unwanted route. As a result, it may cause severe loss to the owner of the ship. The World Shipping Council (WSC) has estimated a loss of 675 containers every year in the sea due to mechanical issues.

The ship owner must avoid such issues by conducting the proper inspections of the ship at regular intervals. The equipment must be up to date before sailing in the ocean.

Marine Insurance

A business may avoid the aforementioned problems by subscribing to marine hull insurance. The shipper may take several precautions. Still, the risk is pervasive. The incident may take place at any moment in the sea. Therefore, it is important to subscribe to marine hull insurance, which offers appropriate compensation for the damage or loss caused to the body of the ship. Further, the loss or damages caused to the goods shall also be covered under such insurance.

Marine Insurance Premium Calculator

Type of Cover

Single Transit

Annual Open

Where will your products be shipped to?

Inland

Import

Export

Conclusion

The owner of the ship must subscribe to the marine insurance policy in order to avoid risk in transporting goods via water. The marine policy offers appropriate coverage for the damage or loss caused to the ship and its owner.

View More

Learn more about Marine Insurance

Annual open Policy

Read More

Single Transit Policy

Read More

Sales turn over Policy

Read More

Transit Insurance

Read More

Marine Insurance

Read More

Cargo Insurance

Read More

Read More

Download Policy Wordings of TATA AIG

Why Buy From Policybazaar

Marine Insurance Companies

View more insurers

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Commercial Insurance Products

Group Health Insurance

Marine Insurance

Cargo Insurance

Workmen Compensation Insurance

Professional Indemnity

Fire Insurance

Shop Insurance

Comprehensive Liability Insurance

Construction All Risk

Erection All Risk

Cyber Insurance

Directors & Officers Insurance

Contractor's Plant & Machinery

Office Package Policy

Group Personal Accident Insurance

Group Life Term Insurance

Drone Insurance

We don't spam

View plans

By clicking on " Check Your Premium Now " you agree to our Privacy Policy and Terms Of Use

Marine Insurance Articles

Popular Articles
Recent Articles

Why Is Insuring Your Household Articles Important During Transit?

Why Is Insuring Your Household Articles Important During Transit?

When moving to a new home, safeguarding your household articles during transit is crucial. Transit insurance...Read more

27 Oct 2020 by Policybazaar 18827 Views

Top Import Export Business Ideas for Sellers in India

Top Import Export Business Ideas for Sellers in India

India's import-export sector has experienced rapid growth in recent times. This is due to globalisation...Read more

27 Aug 2025 by Policybazaar 5483 Views

Types of Marine Losses

Types of Marine Losses

In the shipping business, different types of losses can happen. Marine insurance helps manage these risks by...Read more

23 Nov 2022 by Policybazaar 14133 Views

Documents Required for Import-Export Customs Clearance

Documents Required for Import-Export Customs Clearance

Any shipment moving from one country to another requires customs clearance. Apart from international laws and...Read more

22 Nov 2022 by Policybazaar 14734 Views

Warranties in Marine Insurance

Warranties in Marine Insurance

Warranties in marine insurance are referred to as assurance of coverage provided by the insurer. It outlines the...Read more

20 Jul 2023 by Policybazaar 10024 Views

Insurance for Transporting Goods in India

Insurance for Transporting Goods in India

In the intricate web of India's transport industry, the movement of goods plays a vital role in driving the...Read more

03 Nov 2023 by Policybazaar 6706 Views

Voyage Charter Vs Time Charter

Voyage Charter Vs Time Charter

The shipping industry relies heavily on chartering, essentially the leasing of vessels between shipowners and...Read more

29 Mar 2024 by Policybazaar 6474 Views

Difference between Marine Open Cover & Marine Open Policy

Difference between Marine Open Cover & Marine Open Policy

Marine insurance and its advantages cannot be ignored if you are in a shipping business or your business needs...Read more

19 Aug 2022 by Policybazaar 12073 Views

6 Not to Forget Principles of Marine Insurance

6 Not to Forget Principles of Marine Insurance

The principles of marine insurance are essential for maintaining fairness and consistency in the delivery of...Read more

10 Feb 2020 by Policybazaar 17977 Views

What is Carrier Legal Liability Insurance?

What is Carrier Legal Liability Insurance?

Within the transportation industry, where goods traverse vast distances across different modes of transport,...Read more

29 Apr 2024 by Policybazaar 5721 Views

Shipping Insurance for High-Value Items

Shipping Insurance for High-Value Items

Shipping insurance for high-value items is crucial to mitigate the inherent risks during the shipping process...Read more

03 Apr 2024 by Policybazaar 5969 Views

International Cargo Clauses & Inland Transit Clauses in Marine...

International Cargo Clauses & Inland Transit Clauses in Marine...

Marine insurance coverage is divided into two types. One is International Cargo Clause (ICC) and the second is the...Read more

13 Aug 2022 by Policybazaar 14609 Views

Transit Insurance Step by Step Claim Process

Transit Insurance Step by Step Claim Process

Navigating the complex landscape of transit insurance claims demands a clear understanding of the procedural steps...Read more

24 Nov 2023 by Policybazaar 5058 Views

Transit Insurance for Delivery Business

Transit Insurance for Delivery Business

Whenever goods and commodities are on the move, they are at risk of damage. A logistics company's reputation can...Read more

28 Feb 2024 by Policybazaar 5302 Views

What is Export?

What is Export?

Export is the sale of goods and services manufactured in a country to other countries. It is a part of...Read more

30 Apr 2025 by Policybazaar 3058 Views

What is the Customs Tariff Act 1975?

What is the Customs Tariff Act 1975?

India's international trade relies on rules that define how...Read more

05 Jan 2026 by Policybazaar 1239 Views

What are E-commerce Exports?

What are E-commerce Exports?

E-commerce exports refer to selling and delivering products or...Read more

26 Sep 2025 by Policybazaar 1004 Views

What is Anti-Dumping Duty?

What is Anti-Dumping Duty?

Anti-Dumping Duty (ADD) is a tariff imposed by governments to...Read more

25 Sep 2025 by Policybazaar 1543 Views

What is MEIS?

What is MEIS?

The Merchandise Exports from India Scheme (MEIS) was introduced...Read more

11 Sep 2025 by Policybazaar 1254 Views

Top Import Export Business Ideas for Sellers in India

Top Import Export Business Ideas for Sellers in India

India's import-export sector has experienced rapid growth in...Read more

27 Aug 2025 by Policybazaar 5483 Views

12 Documents Required for Exporting Goods from India

12 Documents Required for Exporting Goods from India

In foreign trade, the significance of proper documentation...Read more

09 Jun 2025 by Policybazaar 3251 Views

What is Export?

What is Export?

Export is the sale of goods and services manufactured in a...Read more

30 Apr 2025 by Policybazaar 3058 Views

Types of Shipping Containers with Size & Dimensions

Types of Shipping Containers with Size & Dimensions

Shipping containers have evolved over the years. Now, businesses...Read more

25 Apr 2025 by Policybazaar 1612 Views

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

How to Choose the Right Shipping Line in 2025: Top 5 Key Factors

Selecting the right shipping line is crucial for Indian...Read more

07 Apr 2025 by Policybazaar 1977 Views

How to Create a Freight Forwarding RFP for Shipping?

How to Create a Freight Forwarding RFP for Shipping?

RFP, or Request for Proposal in freight forwarding, is a formal...Read more

03 Apr 2025 by Policybazaar 1696 Views

What is Pallet Shipping?

What is Pallet Shipping?

Pallet shipping is a mode of transporting goods using pallets to...Read more

02 Apr 2025 by Policybazaar 1827 Views

What are High Cube Containers in Shipping?

What are High Cube Containers in Shipping?

‘High Cube containers’ is a category of shipping containers...Read more

02 Apr 2025 by Policybazaar 3406 Views

International Shipping - How to Start Shipping Internationally From...

International Shipping - How to Start Shipping Internationally From...

Expanding your business to international markets can be a...Read more

01 Apr 2025 by Policybazaar 1881 Views

Products to Export from India

Products to Export from India

India has largely been an agricultural economy but has turned...Read more

18 Mar 2025 by Policybazaar 4592 Views

Modes of Transportation Covered Under Marine Insurance

Modes of Transportation Covered Under Marine Insurance

Marine insurance is essential for protecting goods during...Read more

23 Oct 2024 by Policybazaar 3154 Views

Disclaimers⁺
*Savings of 42% are based on the comparison between the highest and lowest premiums for a Rs 50 lakh sum insured under Inland Transit Clause B or Institute Cargo Clause B for single transit cover of auto spare parts with shipment type of Inland(Domestic) and road as mode of transport. Premium varies on the basis of Occupancy, Business Activity & Coverage Type
By clicking on "View Plans" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.

Claude

Insure your shipment & protect your goods from

overturning