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.

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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.

  1. 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.

  2. 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.

  3. 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.

Learn more about Marine Insurance

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.

Written By: PolicyBazaar - Updated: 19 April 2023

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Policybazaar for Business - Marine Insurance - Customer Reviews
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4.3/5
Based on 114 reviews
4.3
out of 5
Based on 114 reviews
14 users
87 users
13 users
0 users
0 users
3.8 April 20, 2023
Anas
Great Experience
I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.
Mizoram
4.3 April 03, 2023
Vaishnav
Provides Comprehensive Protection
When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.
Assam
4.3 March 17, 2023
Umang
Excellent Services
I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.
Chennai
4.3 February 28, 2023
Vishal
User Friendly Interface
The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks
Gurugram
4.3 February 11, 2023
Parth
Prompt Services
I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.
Noida
3.8 February 10, 2023
Rishabh
Exceeds Expectations
I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.
Jamshedpur
3.8 January 31, 2023
Arvind
Easy Navigation
The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.
Ajmer
3.8 January 21, 2023
Vishal
Excellent Support
The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.
Mumbai
4.3 January 11, 2023
Sanjeev Rathor
Efficient Process
When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.
Pune
3.8 January 01, 2023
Kunal
Comprehensive Coverage
I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.
Indore